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

 


Log Shortages Will Strangle Local Sawmilling

Log Shortages Will Strangle Local Sawmilling

New Zealand sawmillers are being strangled by continuing log shortages.

High export demand for logs in China and other Asian markets is creating a widespread shortage of logs for processing here says the New Zealand Timber Industry Federation, and there’s every reason to believe these shortages will continue over the next few years.

Since 2008 New Zealand log exports have increased by 240% and international forestry commentators are saying that the level of demand for logs in China (which accounts for 70% of our log trade) will continue for the foreseeable future.

More than twice the number of New Zealand logs is exported than are processed domestically.

This shortage of logs is a major concern to members says the New Zealand Timber Industry Federation. Many of them frequently experience downtime and production losses because they are unable to buy logs or log supply is stopped.

New Zealand sawmills are often paying top international rates for logs, so price is not an issue. It simply appears that some forest owners value their international customers more highly than domestic processors.

Opposition political parties have already raised concerns about the 3000 job losses estimated in the New Zealand wood processing sector since 2008. If this unsatisfactory situation with log supply continues there could be more closures and further industry rationalisation.

This could lead to a shortage of product for the domestic market requiring timber to be imported into New Zealand.

We believe there has to be a serious discussion at government level about the on-going situation with log supply to the domestic wood processing industry said the New Zealand Timber Industry Federation.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news