INDEPENDENT NEWS

Timber industry upbeat despite challenges

Published: Wed 12 Oct 2016 04:51 PM
“Challenges facing the NZ timber industry are real and significant but the industry is generally in a good demand cycle and sentiment is positive” says New Zealand Timber Industry Federation (NZTIF) president, John McVicar.
“Domestic demand for timber is very strong at the moment” he said.
“However the upside was tempered with a number of very real challenges facing the industry.”
“Log supply shortages are chronic in some regions, such as Canterbury and Northland, and there doesn’t appear to be any change to this in the immediate future. The log shortages due to export demand in China, dairy conversions, and wind storms has reduced the forest resource available to local mills and pushed log prices up significantly. These cost increases are yet to be fully passed on and recovered in the market.”
“Timber exporters are struggling with the strong NZ dollar and exports to most markets are hard to make work. It is only the strong local market, driven by record high immigration that is providing some stability, at a time when many export markets for sawn timber are marginal” John McVicar says.
Despite these challenges and others, there is still new investment going into the industry, more so in areas where log supply was not constrained, and the overall annual sawn timber production for the country had actually increased.

Next in Business, Science, and Tech

It’s All In The Genomes: New Study Reveals Scale Of Havelock North Campylobacteriosis Outbreak
By: ESR
Rio Tinto announces plans to close Tiwai Point smelter
By: RNZ
New Report on Auckland Port Relocation
By: New Zealand Government
Black-Market Tobacco Sidesteps $287 Million In Excise Tax
By: Imperial Brands
Meridian spilled water to hike electricity prices - Authority ruling
By: RNZ
XE Data Update - RBNZ Official Cash Rate Decision
By: XE Money Transfer
Kiwis Ignore Promise Of Cheaper Power
By: Canstar Blue
ASB Regional Economic Scoreboard Q1 2020
By: ASB
Economic activity and business confidence bouncing back
By: RNZ
The Climate Record That Keeps Getting Broken
By: NIWA
Extended Loan Scheme Keeps Business Afloat
By: New Zealand Government
2019 Prime Minister’s Science Prizes Announced
By: Prime Minister Science Prizes
Young Kiwi Astro-photographer Shoots For The Stars
By: Stardome Observatory
Time For EU To Commit To A Level Playing Field For Trade
By: DCANZ - Dairy Companies Association New Zealand
Supporting Kiwi businesses to resolve rent disputes
By: New Zealand Government
View as: DESKTOP | MOBILE © Scoop Media