City Forests

What City Forests does

City Forests is a New Zealand forest products company headquartered in Dunedin, Otago, that owns and manages more than 20,013 hectares of production forest (out of 25,187 hectares of total land) within an 80km radius of Dunedin, growing over 8 million trees. Established as a Council Controlled Trading Organisation in 1990 when the Dunedin City Council transferred its forestry assets to Dunedin City Holdings Limited for $25.7 million, the company has a forest-growing history dating back to 1906. Its commercial operations consist of three integrated revenue streams: log sales (primarily Radiata Pine at 84% of the estate, plus Douglas Fir and Cypress) sold to local and international commercial customers; pulpwood and chips directed to paper and fibreboard production; and carbon credits traded under the New Zealand Emissions Trading Scheme since 2010, which have generated approximately $51 million in cumulative net sales. The company harvested over 360,000 cubic metres in the 2024-2025 financial year.

The company's core technology is integrated sustainable plantation forestry combined with environmental conservation, including approximately 2,400 hectares of permanent native forest and wetland reserves representing more than 10% of working forest area. City Forests was the first major forest owner in the South Island to achieve FSC Forest Management certification in 2000 and maintains it through annual rechecks with full audits in 2005, 2010, 2015, 2020, and July 2025. Supporting capabilities include an 18+ year water quality monitoring programme in collaboration with the Otago Regional Council, ecological reserve classification developed with Wildlands Consultants, and High Conservation Value Area management protocols for endangered species habitat (Eldon's galaxias, NZ Falcon). Partnerships include the Department of Conservation, University of Otago, Forest Growers Levy Trust, and conservation organisations including the Yellow-Eyed Penguin Trust and Orokonui Ecosanctuary.

The business model combines commercial timber harvesting with monetisation of ecosystem services (carbon credits) and provision of free recreational access to forest lands. City Forests operates a B2B sales-led motion for log and pulpwood sales, with all commercial enquiries routed through the Dunedin head office, and a self-serve digital permit system for recreational forest users (general access, hunting, fishing, events, hot works). The company does not sell logs to households. As a CCTO, profits flow as dividends to DCHL and ultimately to the Dunedin City Council, with community benefits distributed through DCC programmes. Cumulative financial performance shows a 978% total gain on the original $25.7 million investment since 1990, an 8.2% annual rate of return, and acceleration to 14.2% average annual return over the last three years.

Name

City Forests

Legal name

City Forests Limited

Website

https://cityforests.co.nz

Company type

Private

Founded year

1906

Operating status

Operating

Headcount range

11–50 employees

Short description

City Forests is a Dunedin-owned New Zealand forest products company managing 20,000+ hectares of FSC-certified plantation forest in Otago, harvesting 360,000+ cubic metres of timber annually and selling carbon credits under the NZ ETS. It is owned by the Dunedin City Council via DCHL.

Ownership category

akta.pro rank

Product category

Forest Products / Timber

NAICS

Timber Tract Operations (11311), Timber Tract Operations (1131), Timber Tract Operations (113110), Support Activities for Forestry (1153)

SIC

Forestry (800)

akta.pro primary industry

Timber Tract Operations & Forest Ownership (Timberland) (IMAMAAAA)

akta.pro secondary industries

Forest Carbon Projects & Ecosystem Services (Carbon Credits, Biodiversity) (IMAMAAAJ), Timberland Leasing & Contract Administration (Hunting, Grazing, Recreation) (AFAMAKAD), Logging & Timber Harvesting (IMAMAAAB)

Keywords

• Timber harvesting
• Forest products
• Carbon credits
• Sustainable forestry
• Plantation forestry

Headquarters

HQ city

Dunedin

HQ country

New Zealand

HQ region

Oceania

Offices1 record

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Operations, Personnel, Supply Chain, Infrastructure, Marketing or Sales, Others

Revenue model

1. Log Sales: The majority of harvested wood is sold as logs to a variety of local and international commercial customers. Commercial sales enquiries are handled directly by Kent Chalmers at the Dunedin office. City Forests does not sell logs to households due to safety concerns.
2. Pulpwood and Chips: The balance of harvested wood not sold as logs is processed into pulpwood and chips for paper and fibreboard production.
3. Carbon Trading: City Forests participates in the New Zealand Emissions Trading Scheme, selling carbon credits from registered post-1989 forests. The company started carbon trading in 2010 and has achieved net sales of nearly $51 million to date.

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels4 records

Core offering

City Forests owns and manages over 20,013 hectares of production forest in Otago, New Zealand, harvesting approximately 360,000 cubic metres of wood annually. The company sells harvested logs, pulpwood, chips, and specialty timber (Radiata Pine 84%, Douglas Fir, cypress, larch and redwood) to local and international commercial customers. It also generates revenue by selling carbon credits through the New Zealand Emissions Trading Scheme and provides free recreational forest access through a digital permit system.

Product overview

City Forests operates as a forest products company managing over 20,000 hectares of planted forests within an 80km radius of Dunedin, Otago, New Zealand. The core offerings consist of three integrated products: Log Sales (commercial timber harvested and sold as structural logs, pulpwood, and specialty timber including Radiata Pine at 84% and Douglas Fir), Forest Access Permits (recreational access for walking, mountain biking, fishing, and hunting), and Carbon Credits (carbon sequestration trading under the NZ Emissions Trading Scheme). Supporting these core operations are approximately 2,400 hectares of Native Forest Reserves and designated High Conservation Value Areas for environmental protection. The company harvested over 360,000 cubic metres in the 2024-2025 financial year.

Differentiator

Problem solved

Functional benefit

Products and services

• Log Sales Commercial sales of harvested timber including structural logs, pulpwood, chips, and firewood. Sold to local and international commercial customers. City Forests does not sell logs to households due to safety concerns.
• Carbon Credits Carbon sequestration credits traded under the New Zealand Emissions Trading Scheme (ETS), generated from City Forests' registered post-1989 forests. Net carbon credit sales have reached nearly $51 million since 2010, with 105,000 tCO2-e net sequestered in 2023.
• Radiata Pine Timber Versatile timber suitable for furniture, cut stock blanks, face veneer, structural uses, packaging, paper and fibreboard. The predominant tree species in City Forests' estate, representing 84% of trees.
• Douglas Fir Timber Structural and framing timber for homes with very good strength and stability properties. Known commercially as 'Oregon' timber.
• Forest Access Permits Free permits for recreational access to City Forests including general access, fishing, hunting, motorcycle, event, and hot works permits. Issued through an online application system.
• Native Forest Reserves Approximately 2,400 hectares of permanent reserve sites including native forest, wetlands, and water catchments representing more than 10% of managed forest land.
• High Conservation Value Areas Designated conservation areas including Wangaloa Creek Wetland and Shepherd Stream habitat for the nationally endangered Eldon's galaxias freshwater fish, managed with special protocols including trout removal from tributaries and fish barrier maintenance.

Quantifiable outcome

• 360,000+ cubic metres harvested annually
• +3 more outcomes

Named customers2 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Eight partnerships are on record, tiered core and minor.

• Forest Growers Levy Trust (FGLT)coreStrategic or Co-development Partner · 1 January 2016Co-funded ongoing research project on New Zealand Falcon (Karearea) population dynamics in City Forests' forests since 2016. FGLT granted funding through 2023 to continue examining conflict management options for forest operations and Falcon interactions.
• Wildlands ConsultantscoreImplementation/ SI/ Consulting PartnerEcological consultancy organisation that developed City Forests' reserve classification system to comply with FSC principles. Conducts fine-level ecological assessments covering all City Forests' individual forests and periodic assessments of major reserve areas.
• Department of Conservation (DOC)coreStrategic or Co-development PartnerCollaborating on wilding tree control in Silverpeaks Forest and extending the range of Eldons galaxias in the upper Silverstream area of Whare Flat. Working together on wilding risk management.
• University of OtagominorStrategic or Co-development PartnerCity Forests contributed to Bush Robin/kakaruai monitoring project run by the University's Zoology Department in Silverpeaks forest during 2015-2016.
• Yellow-Eyed Penguin TrustminorStrategic or Co-development PartnerCity Forests contributes funding to the Yellow-Eyed Penguin Trust as part of environmental initiatives.
• Orokonui EcosanctuaryminorStrategic or Co-development PartnerCity Forests contributes funding to the Orokonui Ecosanctuary as part of environmental initiatives.
• Predator Free Halo ProjectminorStrategic or Co-development PartnerCity Forests is a significant funder of the Dunedin-based Predator Free Halo project, which aims to control predators to protect native wildlife.
• New Zealand Emissions Trading SchemecoreOthersCity Forests participates in the NZ ETS, registering post-1989 forests for carbon credits. Started carbon trading in 2010 and has achieved nearly $51 million in net carbon credit sales.

Scale indicators10 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Timberlands Ltd: NZ-based forestry investment management company managing radiata pine and Douglas fir estates. Directly comparable as a forestry investment manager and timberland owner operating a similar log sales and carbon credit model.
• Kaingaroa Timberlands: New Zealand's largest privately-owned forestry estate, managing radiata pine forests in the central North Island. Comparable as a major NZ radiata timberland owner with similar carbon credit, FSC, and log sales business model.
• Ernslaw One: One of New Zealand's largest forestry companies managing radiata pine estates across multiple regions. Directly comparable as a large-scale NZ softwood forest owner-operator with FSC certification, log sales, and integrated harvesting operations.
• Pan Pac Forest Products: Integrated NZ forest products company owning radiata pine forests and operating sawmills, with downstream wood products. Comparable as a vertically integrated NZ radiata forestry business, though Pan Pac captures downstream margin City Forests does not.
• Matariki Forests: New Zealand forest owner with significant radiata pine estate across the North and South Islands. Comparable as a FSC-certified NZ timberland owner generating revenue from log sales and carbon credits.

Broad incumbents

• Sonae Arauco New Zealand: Global wood-based panels producer operating in NZ with manufacturing facilities. Comparable as a major downstream wood product manufacturer in NZ sourcing radiata pine logs, competing for the same raw material supply.
• Rayonier: US-listed timberland REIT managing ~2.7 million acres of softwood and hardwood forests. Comparable as a large-scale timberland owner with timber sales, carbon opportunities, and conservation reserve management on its estate.
• Weyerhaeuser: One of the world's largest publicly-traded timberland owners and wood product manufacturers. Comparable as a large-scale, FSC-certified timberland REIT with similar log, pulpwood, and carbon-related revenue streams, though at vastly greater scale and global diversification.
• Hancock Forest Management: Global timberland investment manager (now part of Manulife Investment Management) operating forestry portfolios. Comparable as a third-party forestry asset manager working with institutional and government owners of timberland estates.

Emerging players

• New Forests: Australia-headquartered sustainable forestry investment manager with NZ and Asia-Pacific operations. Comparable as a forestry investment manager focused on sustainable, FSC-certified plantation forestry and ecosystem services revenue including carbon.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about City Forests