10/12/2012 - 15:11

Growers seek to wind up RuralAus plantations

10/12/2012 - 15:11

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Growers seek to wind up RuralAus plantations

The dire state of the plantation forestry sector has been highlighted by a move by growers to wind up their Australian Growth managed investment schemes run by RuralAus Investments. 

East Perth-based RuralAus announced today that while there was no resolution to vote on at its annual meeting last month, growers were given the opportunity to question the ongoing viability of all five of its schemes.

On a straw poll, the growers that attended the meeting unanimously voted in favour of terminating the schemes.

According to a letter to growers penned by Primary Securities director Anthony Treadgold, the continued strength of the dollar is causing negative stumpage, meaning they would have to pay more to have their trees harvested and transported to port than they would receive in sale proceeds.

Also, excess capacity in woodchips, a depressed woodchip market, and a short term until growers’ leases expire were significant concerns.

Primary Securities is listed as the Responsible Entity of the RuralAus schemes.

RuralAus has offered to pay half of the lease and management fees for the 2012/13 financial year back to growers if the schemes are terminated.

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