New Zealand’s forestry sector is under increasing strain as rising fuel prices and freight costs compress margins, disrupt harvesting activity and add pressure on domestic processing. Diesel prices have climbed sharply, reaching around NZ$2.34 per litre nationally, up significantly in recent weeks. The increase, linked to geopolitical tensions in the Middle East, has pushed fuel costs to the centre of the sector’s economics. Forestry is highly exposed: producing one tonne of logs requires around 12 litres of diesel, with further consumption tied to transport from forest to port. The impact is most acute in ...