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9.4 Sawmilling
Authors: J StulenPublication: NZIF Forestry Handbook, Volume Section 9 – Utilisation of forest products, pp 4, Dec 2023
Publisher: New Zealand Institute of Forestry
Abstract: The major drivers of sawmilling change in the last decade have been: -a growing wood supply allowing for expansion in sawn lumber export markets; -lower wood quality as radiata pine harvest age reduced; -big advances in real-time sawmilling production control software; -significant changes in currency values affecting key markets; and -globalisation resulting in intense competition and structural change in key export lumber markets. During this time major world crises (financial collapse in Asia and international terrorism) have caused fluctuations in supply and demand. Unfortunately the outcome from many of the factors coming to bear on world markets since 1995 is that sawmilling has never been tougher for the New Zealand industry. With almost all export receipts being denominated in US dollars, the fortunes of the sawmilling industry have risen and fallen in inverse proportion to the strength of the NZ dollar against the benchmark export trading currency – the US dollar.