30 March 2012
Forestwood export earnings increased by NZ$257.5 million to NZ$4.5 billion in the 2011 calendar year, a new record. This was despite an oversupply of logs in China and continuing currency pressure in the last quarter. Ministry of Agriculture and Forestry forest production and trade figures reveal that 26.2 million cubic metres of logs were harvested in 2011. If these, 12.8 million cubic metres were exported as logs – 7.95 million cubic metres of them to China.Total earnings for the sector were up 6 per cent on 2010, despite a drop of 10.8 per cent in sawn timber earnings. The increase was mainly due to increases in log export volumes (17.6 per cent) and values (22.4 per cent). Panel product exports were also up 12.3 per cent by volume and 7.1 per cent by value.
Forestry accounted for 9.8 per cent of New Zealand’s total merchandise exports, compared with 10.2 per cent the previous year.
New Zealand forestry exports in the 2011 December quarter were NZ$1.1 billion, down $56.1 million compared with the same period in 2010.
Conditions were challenging for the sawn timber industry, with total export earnings and volumes decreasing to NZ$751.0 million and 1.9 million cubic metres. MAF reports this is due to continuing weak housing sectors in the high-value United States and Australian markets, exacerbated by high exchange rates for key trading currencies.
Source: MAF media release. To read the full report, click here.