Collaboration and adding-value for forestry exports

Collaboration and adding value to forestry exports are essential for the long-term growth of the industry.

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"Most New Zealand companies in the forestry sector cannot achieve large scale production independently, so the government encourages collaborative models so New Zealand companies can work together to achieve the scale needed to pack a punch in global markets," Trevor Mallard said.

"This is important as the Labour-led government works with business and industry to transform New Zealand into an export-led high wage innovative economy. A good example of collaboration is the New Zealand Wood Innovation Centre in China where New Zealand Trade and Enterprise has partnered with the forestry industry for an initiative directly targeting end users in the burgeoning Chinese market.

"This centre in Shanghai offers buyers, engineers, architects, designers and students an interactive experience showcasing New Zealand pine used in furniture and interior fitout solutions, heavy timber design and other building uses such as landscaping. It's about making end users experience the versatility of our products and helping shape their buying decisions."

The industry needed to be market driven and understand end users needs so it could sell wood solutions rather than individual commodity products, Trevor Mallard said.

"At the heart of this is a push for companies to move beyond the supply of commodity products into high value products. This requires innovation and the application of technology, branding and intellectual property to sustain a competitive advantage. Companies can capture greater value from their existing products by integrating more fully with their foreign supply chains and, where appropriate, by partnering directly with distributors or manufacturers in their key export markets.

"The Forest Industry Development Agenda has been another important tool for government to support this sector by investigating new markets, promoting the use of wood, and enhancing industry awareness in design and market intelligence.

"We want to work with the industry to help them capture higher-value opportunities around the world. The initiatives already underway are already gaining results and our challenge is to make sure we continue down the path - competing on price alone is no longer an option," Trevor Mallard said.

ENDS

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