The woodchips that will come onto the market in the next few years from Timbercorp and Great Southern woodlots will be at the behest of administrators and managers trying to wind up the MIS structures. This will help suppress Gunns’ woodchip price already under stress from the effects of the current global crisis which has seen all commodities suffer price falls. Most commodities are in excess supply now so the rapid rise in price in the future is unlikely.
Tuesday, 5 May 2009
In December 2008 Tasmanian Times reported on the Race to the Bottom for MIS companies. “(They) are continuing their inexorable journeys towards a catastrophe. Not all will survive intact……..Great Southern Plantations (GSL) seems to be at the head of the peloton at this stage…….Joining GSL in the race to the bottom has been Timbercorp”.
Gunns too are selling assets to pay off debt.
What’s the current situation?