Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Demise Of Forest Industry “Somewhat Exaggerated”

NZ Farm Forestry Association

Despite recent suggestions to the contrary, forestry in New Zealand has great prospects, says Ken Stephens, president of the NZ Farm Forestry Association.

“Several recent events do not seem to bode well, but suggestions of forestry’s imminent demise are somewhat exaggerated,” he says.

“One was economist Gareth Morgan's address to Property For Industry shareholders where, in his normal ebullient style, he roundly criticised New Zealand's ‘over-investment’ in forestry.

“A second was another rather lacklustre result from Carter Holt Harvey, and a third, the ongoing problems with the Kaiangaroa forest sale.”

What hasn’t been explained is that forestry is a complex collection of different, though inter-related, industries. Some have been doing very well over recent years and some have been struggling, says Mr Stephens.

“There is a widespread and false public perception that radiata pine logs are a relatively uniform commodity – simply feedstock for some ill-defined value-adding industry,” he says.

“Logs are as variable in value, quality and end use as the raw materials flowing from any other primary industry. Top grade, high value, pruned logs have as much in common with low grade, pulp logs as super fine Merino wool has with crossbred dags.”

Mr Stephens says there are two basic forestry philosophies operating in New Zealand. One philosophy aims to add value inside the forest gate. The other aims to produce cheap wood fibre and increase value during processing.

“The first plays to New Zealand's competitive advantage, requires far less processing investment, produces a more valuable product and continues to reward forest growers handsomely,” he explains.

“The second option has been more problematic.

“Surprising as it may seem, knot-free, kiln-dried clearwood sawn from pruned logs – the output from the first philosophy – is one of our most valuable forestry exports, yet comes from processing facilities with the lowest capital costs.”

Mr Stephens acknowledges there are challenges facing the forestry industry, including investment needs, wood quality issues, infra-structure, biosecurity and so on.

“But there are also great prospects for radiata pine and other plantation species we are growing. Not least is the inherent appeal of wood as a low energy, renewable, natural material - the atmosphere's natural guardian.”

[ends]

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news