1. Processing and Marketing Timber Clears NZIF Conference 2016

2. Executive Summary Sawmillers are constantly improving their conversions > Cutting patterns and methods > CRI versus PLI KPIs track progress > Green Sawn Realisations models profitability by log source More efficient pruned log conversion equates to better pricing Markets are more stable than they have been dominated by: 1.USA Board Market 2.European Chemical Modification 3.Asian Manufacturing 4.Domestic Market Domestic Sawmilling of pruned logs looks competitive for the foreseeable future

3. Sawmillers’ view of Pruned Log Quality PLI is the traditional and “absolute measure of pruned log quality” CRI = %Outturn of [Clears, #2 Clears & Dressing] % of pruned logs consumed By log source By production shift Weekly and Monthly Over several months, even years

4. Green Sawn Realisations (GSR) Need to understand where money is made or lost especially when cutting from multiple sources Maintain log source identity Maintain timber grade identity for pricing

5. Conversion of Pruned Logs Optimisation Technology CRI and GSR performance is tracked when developing testing and deploying these cutting strategies and technologies

6. Market Doldrums Clear markets have been depressed for a period Rise of Chilean volume Use in long length mouldings diminished due to substitution by primed MDF, finger jointing, low European exchange rate Availability of cheap labour

7. US Board Market Retail Product Southern Yellow Pine, Eastern White Pine and Ponderosa.

8. Chemical Modification Kebony & Accoya currently dominate

9. Chemical Modification Modified Radiata can be used to substitute for some suspected illegal wood based products Comparison between estimates of the roundwood equivalent volume of illegal wood-based products directly imported from producing countries by China and specific other countries Note: this excludes those other countries' imports from China. Source info@globaltimber.org.uk 9

10. Domestic Market Varied applications Small order quantities but important

11. Asian Markets China alone is a big market Flexible sizes

12. Is there a future in pruning? More efficient pruned log conversion equates to better pricing Markets are more stable than they have been dominated by: 1.USA Board Market 2.European Chemical Modification 3.Asian Manufacturing 4.Domestic Market Domestic Sawmilling of pruned logs looks competitive for the foreseeable future