Though logging of Crown native forest has come to an end in New Zealand, harvesting of private forests is permitted under strict management regulations. Gowan Hill Ltd, a Forest Stewardship Council (FSC) certified forestry and milling operation in Southland, is a good example of the potential of native silver beech.
Silver beech, or tawhai as the Maori call it, is a native New Zealand medium density hardwood that encompasses a major component of the country’s original forest cover. The colour of the wood is pinkish white to red. There are three main commercial silver beech regions – one in the North Island and two in the South Island on the West Coast and in Southland. These forests are of mixed age class up to 600 years old. The commercial harvesting age begins around 150 years.
Iain Macdonald, owner and manager of Gowan Hill, is very proud of his management regime. He adheres to a strict government management plan as well as to FSC criteria and the regime replicates the natural patterns of forest development. Trees over 300 years old are common in the forest. Harvest trees, whose selection is based upon biological criteria, are marked and their positions identified using global positioning systems. Helicopters are used to extract the logs and the tops are left on the forest floor to decompose and provide the essential nutrients for healthy natural regeneration of the species, key to the forest’s long-term survival. The harvesting methods have minimal site impact.
Plentiful supply
Over 70% of New Zealand’s silver beech production comes from Southland and in this area, in addition to Mr Macdonald’s forest, there are around 21,000ha of private beech forests, much of them under Maori ownership. Although the Southland Maori forests are exempt from government native forest policy, many Maori recognise the importance of sustainable forest management and would like to collaborate with others in achieving it and in timber marketing. Some regional forest owners are following Mr Macdonald’s example of FSC certification in anticipation of developing markets, including exports, and other owners are awaiting current market developments.
Based upon recent results, Mr Macdonald is enthusiastic and optimistic about the markets for his certified silver beech. His FSC-branded product has been exported to Asia for re-export to the UK and most recently to the US. Silver beech has the appearance and the strength-to-density ratio to replace northern hardwoods and applications include barbecue accessories, garden tool handles and rolling pins for major DIY stores. Tests in Britain indicate that, with the proper design, silver beech is suitable for most tool handle applications. Mr Macdonald anticipates other markets in the UK in fine furniture and high-end interior joinery.
Northern hardwood substitute
On a recent marketing trip to the US, he found American solid hardwood users to be impressed by his wood, likening it to some of the North American quality hardwoods. They liked the appearance and its properties are suitable for high quality woodworking and finishing applications, substituting for northern hardwoods. Since Mr Macdonald’s forests have a significant proportion of large diameter trees, he has the capability of producing wide boards. The plan is to find applications for his beech that will show off its appearance and excellent properties.
In the past, silver beech was heavily used for school furniture by South Island manufacturers. Following the recent logging ban on native Crown forest, furniture businesses in short supply of another New Zealand native, rimu, turned to silver beech and found it was a good replacement. Those familiar with rimu products were surprised to find that the species added a new quality dimension, as it has all the properties of a fine furniture hardwood.
To accommodate silver beech and cater to changing preferences in local and international markets, manufacturers came up with their new furniture styles and these are reportedly now making quite an impact at the high-end of the business.
The changes have added manufacturing costs but producers have improved distribution to reduce overall expenses. In this way, market share is maintained and prices are kept within reach of the customer.
A new image
While trend-setting New Zealand furniture makers trying out new designs found silver beech to be an excellent alternative, some makers felt that the name “New Zealand silver beech” did not provide the right image. One manufacturer re-branded the wood with the Maori name tawhai and found this went down well in international markets.
In addition to building a following in the furniture industry, silver beech is also making its way back into the New Zealand construction sector. There are several New Zealand architects, particularly in the Otago region of the South Island, specifying it for a range of interior finishing applications such as flooring, panelling, mouldings and exposed beams. These are often for buildings in high-end tourist resorts and new high quality homes. For this sort of application builders are billing silver beech as “conveying a fashionable colonial look with a rustic and natural appearance”.
Price comparisons
The value of Southland silver beech is based on presumed substitution for high value northern-type hardwoods and, in this light, it is considered competitive given its applications and market potential. Producers are ranking it at the top of the heap alongside maple and cherry and they say it is generally better quality than South American lenga, which substitutes for alder in North American and European markets.
Until 1998, the domestic market price for sawn silver beech in real terms had changed little over the previous 20 years but, with increased demand for quality hardwoods in the past three years, plus government restrictions on logging other native species on a non-renewable basis, it has jumped by 35%. And it is expected to continue to track price trends for superior quality hardwoods in response to rising international demand.
Current trade prices for sawn timber in New Zealand are still below imported US substitutes such as hard maple (uncertified). But as silver beech’s characteristics are comparable to maple or cherry, it is assumed that this will be reflected in the asking price. The cost of the timber overseas is clearly on an upward trend. For example, in Australia during the past year silver beech prices for product delivered have been 35% above New Zealand prices.
The Gowan Hill example demonstrates silver beech’s potential to replace other highly sought-after species, now in short supply. With the green image achieved by meeting strict government regulations and FSC standards, markets will expand further.
The intrinsic characteristics of silver beech make it a prime candidate for hardwood manufacturers wanting a high quality wood with an internationally accepted identification by social, environmental and economic standards. In turn, this will give a valuable economic boost to Southland communities.
