Nimble New Zealand exporters finding opportunity amid shifting trade terms
Global trade wars and uncertain tariff regimes could play into the hands of many New Zealand exporters, according to Gareth Coleman ANZ’s Head of Trade & Supply Chain.
THE VALUE of New Zealand's forestry-product exports has more than doubled in the last 20 years, Statistics New Zealand says.
The export of logs to China is driving the increase. In 2012 we exported $4.5 billion of forestry products, compared with $1.9 billion in 1992. They continue to be our third-largest goods export, after dairy and meat.
The types of forestry products we export and who buys them have also changed over the 20 years.
"In 1992, logs accounted for less than a quarter of New Zealand's total forestry exports, but overseas demand, particularly from China, saw this jump to 35% by 2012," prices manager Chris Pike says.
The value of log exports more than tripled between 1992 and 2012 – from $443 million to $1.6 billion. Since 2008, the value has grown sharply – increasing 22% a year on average.
"This rise was due mainly to the volume of log exports tripling. Prices have increased by a smaller 16%," Pike says.
The increased export of logs to China has been a major contributor to the greater value of our log exports. In 1992 we sold only $59 million worth of logs to China. This was up to slightly more than $1 billion by 2012, making China our top market for logs – surpassing both Korea and Japan.
"New Zealand is now the third-largest exporter of logs in the world, after Russia and the United States. In 2012 we supplied 8% of the total value of the world's export logs," Pike says.
Sawn timber is our second-largest forestry product export, followed by manufactured wood products, paper and paper products, and wood pulp.
"Between 1992 and 2012 New Zealand has become more reliant on log exports. China is now a key market for our forestry products, taking 34 percent of the total value of our forestry-product exports in 2012, compared with 4 percent in 1992," Pike says.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
DairyNZ chair Tracy Brown has waded into the debate around soaring butter prices, pointing out that the demand for dairy overseas dictates the price to farmers and at the supermarket.
Farmers are welcoming new Government proposals to make farm health and safety rules more practical and grounded in real-world farming.
Missing fresh mozzarella cheese made at home in Bari, southern Italy, Massimo Lubisco and his wife Marina decided to bring a taste of home to New Zealand.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
Irish meat processor Dawn Meats is set to acquire a 70% stake in Alliance Group, according to a report in The Irish Times.
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