NZ Forestry exports projected to recover in 2025Friday 20 Dec 2024
Log export revenue is forecast to rise by two percent, reaching NZ$3.3 billion in the year ending 30 June 2025. This will be welcome news after three years of declining log revenues. The sector’s key export market, China, was once again highlighted as a risk for forestry, with 91% of log exports heading to China in 2023/24. The report raises hope that the Chinese Government’s stimulus package will restore confidence in the building industry, driving increased demand. There is potential for increased market share in India, the third-largest market for New Zealand logs, following new fumigation rules to meet India’s phytosanitary requirements. Export volumes to India in June and September were the highest since December 2020. Rising operational costs, including log storage, handling and fumigation, were noted as factors affecting profitability. The incoming European Union Deforestation Regulation (EUDR) is noted as a possible risk for sawn timber exports. While implementation of the regulations has been delayed, manufacturers will still need to develop tracking systems to ensure compliance, which will be more challenging for those with complex supply chains. On the supply side, the closure of some wood processing plants is expected to reduce production capacity in the short term. Adding to the uncertainty are factors such as the instability of global economic recovery, potential trade barriers and continued high input costs. Forestry remains the fourth-largest export earner in the food and fibre sector, generating NZ$6 billion and sitting just behind horticulture at NZ$8 billion. Source: NZ Forest Owners Association | ||
Copyright 2004-2024 © Innovatek Ltd. All rights reserved. |
