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

 

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news