Forest Sale Options

With Ribbonwood NZ you choose the forest sale contract that suits you best. We can assist with your decision and help you understand which method may best serve your needs. 

Lump Sum Purchase
This is where RNZ purchases the entire forest log volume from the forest owner for a one off lump sum payment prior to the commencement of harvesting. This is best suited to forest owners with an accurate understanding of expected log volume and grade outturns.

Benefits	Risks
Simplicity Favorable cash flow to forest owner. Often Paid up front All market fluctuation and value recovery risk is passed onto the log buyer Volume shortfall Market downturn	Discounted stumpage rates to offset volume risk. Rising market Volume gain

Graded Sale
Where RNZ pays the forest owner a fixed price per tonne for each of the different individual timber grades cut from the forest timber.

Benefits	Risks
Better than expected grade outurn	Poor logmaking Incorrect grade inventory analysis predicting higher grade logs Cost of collating accurate inventory information Rising market conditions Change in customer requirements

Pay as Cut Composite Sale
Where RNZ pays the forest owner one fixed price per tonne which applies to every grade of timber cut from the forest timber.

Benefits	Risks
Paid for all standing volume Protected from market downturn Protected from incorrect grade analysis Arising sundry costs are covered	Rising market conditions Higher grade outturn in most valuable logs Slower return as forest depleted

Managed Sale
In a Managed Log Sale RNZ is paid a management rate per tonne to oversee and manage every aspect of forest harvesting and sale process, including all management. Here you can access our experience in managing harvesting, trucking, roading and marketing to minimize your costs and gain the highest return for your forest.

Benefits	Risks
Fully managed Full transparency	Exposure to market volatility Exposure to management competence Margin cost of management No risk to Manager

This is a brief description to give you a broad idea understanding of your options.  We are more than happy to provide further information on the benefits, risks and technical issues associated with the sale of your forest.