Logs ‘rule’ in Forestry Exports – An Industry of Two Halves

As the NZ wood products sector faces sawmill closures and job losses the forest harvesting sector is enjoying a booming 22 million cubic metre (m3) annual log harvest.

Forest Industry Contractors Association (FICA) Chief Executive John Stulen says, “We are absolutely booming with forest harvest production right now with high volumes of export logs going to ports like there is no tomorrow.”

Mr Stulen adds, “This is a great outcome for the forestry half of the forest products industry – but it is now an industry of two halves.”

Over the past two years there have been many sawmill closures leaving something like half of that sector viable compared with pre-recession levels.

Mr Stulen warns of the boom – bust habit which the forestry sector is in. “The market is fast becoming fragile, too focused on one product – export logs.”

There is a risk of a continued reputation in forestry and wood products employers for boom/bust business activity. Past export booms and the corresponding busts have seen forestry frowned upon as a career choice by young people looking for certain futures.

Mr Stulen says, “For many new entrants into forest contracting and for the less experienced employees working in the bush right now – there is no tomorrow – there is only today … while the boom is happening.”

With Chinese New Year celebrations beginning this week forestry contractors should expect a lag effect as our single largest export market takes a breather.

ENDS

© Scoop Media