Suppliers of trucks, trailers, plant and equipment to the forestry industry can look forward to healthy sales as an abundance of trees mature in the next decade.
New Zealand exports of logs and wood rose 22% last year to $3.86 billion. In comparison, meat exports rose just 2.2% to $5.28 billion and dairy exports increased 17% to $13.4 billion.
The Wood Council of New Zealand, which represents forestry and wood processors, aims to triple export earnings to $12 billion by 2022.
Forestry growers are set to benefit on record prices for logs as they start harvesting trees which were heavily planted from 1992 to 1998 as a result of investment activity.
Radiata pine, which makes up about 90% of the nation’s forestry plantations, are usually felled between 26 and 32 years, meaning this huge resource will start being harvested from about 2018, according to government figures.
Rising prices for forestry products, the nation’s third-largest commodity export, has seen ASB New Zealand forestry index and the forestry sub-group of the ANZ Commodity Price Index touching record highs in January.
Forestry exports to China rose more than 50 percent in 2013, putting New Zealand ahead of Russia as the biggest seller of logs into that market.
Increased demand in New Zealand from the rebuilding of earthquake damaged Christchurch and a surging Auckland housing market are also adding to wood demand and supporting prices.
