Wood’s tough times set to improve

Guy, responsible for forestry in the Government, told the industry's recent Forestwood Conference to "lead the thinking."

"Short-term it looks like we're in for a bumpy ride. Long-term economic conditions are set to improve. We have the Christchurch rebuild ahead of us and we expect construction to pick as the economy starts to recover.

"Longer term we also know there's going to be strong demand as the world's population grows and standards of living increase. By 2020 we expect the Asia Pacific region will have 4.2 billion people, about 50% of the world's population. This will create opportunities for New Zealand."

Behind the two giants India and China are other large, fast-growing economies such as Indonesia, Russia, Brazil, Turkey and Mexico. In the past five years the developed world's cumulative GDP grew 3%, but emerging economies 46%.

"Here in New Zealand we expect an increase in annual wood availability of 40% by the 2020s, and we need to make the most of this 'mountain of wood'."

But the forests supplying this extra wood are more geographically spread than forests now being harvested. Many are on steeper land distant from infrastructure and processing.

In the past year forestry exports earned $4.8 billion, third after dairy and meat. Guy welcomed the sector's 'ambitious goal' of increasing export earnings to $12 billion by 2022.

"The Strategic Action Plan produced by the New Zealand Forest and Wood Products Industry sets out the benefits this would bring. The challenge for your industry now is to turn that into action."