According to reports, at the recent Annual Conference on Wood Processing and Manufacturing, New Zealand Forestry Minister Peeni Henare announced the establishment of a $57 million fund as an investment in products such as sawn structural timber and engineered timber in partnership with wood processors to promote Development of domestic wood processing. Starting in July, the Wood Processing Growth Fund will also provide approximately $3 million per year for research, business cases, pilot studies and market development for local wood processing projects in New Zealand.
Forestry is an important industry in New Zealand, generating US$6.8 billion in revenue and 35,000 jobs annually. But for a long time, most of the wood products exported by New Zealand are low-priced logs. As of 2022, only about 40% of the wood will be processed and exported.
In January 2023, the New Zealand Ministry of Forestry announced the implementation of New Zealand's new forestry and wood processing industry transformation plan (ITP), in order to increase the country's wood processing and develop low-carbon and high value-added industries. Now it seems that The Forestry and Timber Processing Industry Transformation Program (ITP) is already underway.
According to data from China Customs, from January to April this year, New Zealand imported 4,864,252 cubic meters of logs, which shows that New Zealand is still China's largest log supplier. However, as the demand in the Chinese market slows down, the disadvantages of New Zealand's log export trade have gradually emerged.
According to timber merchants, the export price of New Zealand logs needs to be kept above 120 New Zealand dollars to be profitable. However, from March to April this year, the price of New Zealand A-grade logs dropped to 112 New Zealand dollars to 115 New Zealand dollars.
And since China announced on May 18 to resume the import of Australian timber, New Zealand's share in the Chinese timber market may be regained by Australia, and it is predicted that the import price of radiata pine logs may be lowered. It would be a good thing if New Zealand starts with wood processing products to increase the export volume of the wood industry.
Regarding the development of New Zealand's wood processing industry, New Zealand Forestry Minister Peeni Henare has always been optimistic, "Over the past two decades, New Zealand's overall wood processing capacity has remained relatively stable, and the amount of logs available for processing has also doubled. "
Unlike African countries, the New Zealand government encourages the development of the wood processing industry, not only to increase economic income, but also hopes that the residues generated by wood processing can be converted into a series of biofuels to support decarbonization, so as to realize the early realization of climate change Target.
Although there are reports that New Zealand's log production is expected to decline by 15% by 2035. If the development of the wood processing industry develops as expected, many sawmills will face log supply problems. With 2035 still decades away, there may be other new developments in New Zealand's timber industry.