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A strategic review of New Zealand log exports
Authors: Andres KatzPublication: New Zealand Journal of Forestry, Volume N.Z.J.For. 2013, Issue N.Z.J.For. 58(3) 2013, pp 14-20, Nov 2013
Publisher: New Zealand Institute of Forestry
Abstract: New Zealand wood availability is projected to increase to 35 million cubic metres by the early 2020s (MAF 2010, Woodco 2012). This will require marketing an additional seven million cubic metres of logs without compromising the returns and expectations of investors and stakeholders. It is well known that an increase in supply without a commensurate increase in market demand leads to weaker prices. Owners and stakeholders are therefore interested in knowing how New Zealand’s industry is positioned in relation to future market trends. Given that recent growth has mainly been in log exports, it means that first we need to assess the potential of log exports as a destination for future harvests and New Zealand’s ability to compete in the face of supply from other regions. It also means identifying areas of risks and whether there are problems which need to be looked at to ensure future success.