Friday, January 15, 2010

Forestry production statistics encouraging for NZ

Forestry Minister David Carter says the latest quarterly forestry production statistics show exports of sawn timber and logs are up as the world economy recovers.

Statistics released by the Ministry of Agriculture and Forestry show the total log export volume for the three months to September 2009 was the largest for the September quarter since 2004.

Total harvest volume of trees in the quarter was 5.8 million cubic metres, the largest for the period for six years.

Mr Carter says one of the key successes for forestry in New Zealand is our growing relationship with the Chinese market.

“China was the source of most of the increased demand for logs from New Zealand because we can provide certainty of supply for the continuing construction boom there, which other markets such as Russia cannot.”

Mr Carter says the US market, though still weak, is showing tentative signs of recovery.

However he noted the report also highlights the effects of the economic slowdown on the forestry sector, with total panel production down to its lowest for the September quarter since 1996.

The fluctuation in the New Zealand dollar was cited as a reason for continued uncertainty in the milling industry, reflected in shorter mill operating hours.

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