The future for Tokoroa

The chief executive of the forests division, Jeremy Fleming, revealed that 36,000ha of land, mainly in the Kinleith estate, had been identified as suitable for alternative uses.

But it’s a long-term game. Land becomes available as trees are harvested and Fleming’s presentation indicated the programme could run until 2023.

He said about 80 per cent – or 28,800ha – was suitable for conversion to dairy farming.

The company says sales for dairy conversions over the past five years averaged a price of $7500 a hectare – and conversions now could be worth $8000 to $10,000 a hectare.

That suggests 28,800ha could be worth $216 million to $288 million.

The company said land suitable for lifestyle conversions could be worth more: $10,000 to $25,000 a hectare.

That sent analysts back to their calculators, to crunch more numbers, although one asked aloud: “What’s the lifestyle around Kinleith and Tokoroa?”