Forestry boosting lower South Island local economy
Although the present economic climate is creating a challenging environment for the New Zealand forestry sector, particularly with high exchange rates, freight costs and a depressed housing market in the USA, the trees coming on stream indicate the sector will endure long into the future. From the current harvest of about 1.5 million cubic metres, the industry has the potential to sustainably increase production to 2.6 to 2.8 million cubic metres a year in the early 2020's. Most of this increase will come from small to medium size forests established in the 1990's by individuals, farmers, partnerships and smaller corporates. What is particularly good news for the region in the long-term, is the growing supply of Douglas-fir; a timber with a strong domestic and international reputation. Extensive planting over the past 15 years means that the harvest will increase from the current level of around 100,000 cubic metres a year, to more than 400,000 cubic metres a year by 2025. The combined Otago/Southland region currently has 215,700 hectares of forest, according to a new report from MAF and the Southern Wood Council "Otago/Southland Forest Industry and Wood Availability Forecasts." The plantation estate in Otago and Southland has doubled in size over the past 25 years and the region is the most diversified in commercial forest species. The region has almost half of all Douglas-fir and 43 percent of all eucalypt plantings nationally. The new forecasts provide councils and roading authorities with credible information for future planning. Co-ordinating this growth in timber supply will be a major focus for the industry and for infrastructure agencies in coming years. MAF and the Southern Wood Council have two weeks of meetings planned with local Councils, planning staff and media to outline key findings of the new report along with implications to the industry and local economy. The full report can now be downloaded off the SWC website, www.southernwoodcouncil.co.nz | ||
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