{"id":80887,"date":"2021-06-21T03:57:27","date_gmt":"2021-06-21T03:57:27","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/chinas-high-prices-leave-new-zealand-wood-industry-danger\/"},"modified":"2025-09-18T17:22:03","modified_gmt":"2025-09-18T17:22:03","slug":"chinas-high-prices-leave-new-zealand-wood-industry-danger","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/chinas-high-prices-leave-new-zealand-wood-industry-danger\/","title":{"rendered":"China\u2019s high prices leave New Zealand wood industry in danger"},"content":{"rendered":"

Thirty years ago the Government sold off much of its Crown forestry estate. Today it's looking to forestry, now largely in private hands, to achieve many aims. Help offset carbon, provide enough timber for our housing industry, earn export income, and supply biofuels and biocoal to fill our vehicles and boilers.<\/em><\/p>\n

But some in the industry believe those aims are in jeopardy because of the sheer amount exported overseas, in raw form to one market. Last year 80 per cent of our US$2 billion (NZ$2.8b) log trade was earned in China.<\/p>\n

Under geo-political pressure, Foreign Minister Nanaia Mahuta recently urged exporters diversify their markets more widely. But her warning falls as international log prices have reached historic levels. Good news for exporters but bad news for domestic mills which have to pay the international price for local logs.<\/p>\n

The Wood Processors and Manufacturers Association claims New Zealand\u2019s wood industry is not only too reliant on exporting but ignoring protectionism by our trading partners. Association chief executive Jon Tanner and chairman Brian Stanley claim China is subsidising the logs when Chinese importers sell them to processors at a cheaper price than they were bought for.<\/p>\n

Tanner says that is artificially raising log prices, against World Trade Organisation rules. But New Zealand won't speak out. \u201cIt's like world trade is a black and white board, and New Zealand is playing a game of checkers, and everyone else is playing chess,\u201d he says.<\/p>\n

In his view, other countries are acting protectively too, placing exporting bans to protect their own wood supplies. Canada has shut off its log exports so it can supply the United States housing market. Russia plans to stop exporting softwood and hardwood logs next year to encourage investment in its own lumber kilns, Tanner says.<\/p>\n

However, New Zealand forest owners enjoying the high prices find it irrational that you would not make hay while the sun shines.<\/p>\n

\u201cWe have responsibilities to our forest owners to optimise return on investment but also to manage and mitigate risk,\u201d Forest Owners Association president Phil Taylor says. He also rejects a long-held claim by processors that the owners won\u2019t offer long-term supply contracts to local mills, preferring the export markets.<\/p>\n

About 44 per cent of logs are of higher quality and are not exported . So the issue is not supply but price, he argues.<\/p>\n

In the short-term at least, New Zealand\u2019s log industry is probably safe, says Murat Ungor\u200b a trade expert at Otago University's department of economics.<\/p>\n

The Russian log ban will only increase China's demand for NZ wood, and New Zealand's free trade agreement with China, renewed in January, should make it easier and less expensive to do business in China.<\/p>\n

China is also reluctant to increase its pollution levels by cutting too many trees, Ungor\u200b says.<\/p>\n

\u201cThe Chinese government is very serious to achieve environmental-friendly growth.Therefore, I still think that there will be a steady demand for New Zealand-produced log and wood products.\u201d<\/p>\n

However, he agrees that diversifying export partners and goods would be smart.<\/p>\n

\u201cThis does not mean that New Zealand should reduce its economic transactions with China. On the contrary, what I am suggesting is to expand the size of current trade agreements with new partners, or by signing new bilateral or multilateral agreements.\u201d<\/p>\n

The Forest Owners Association is also broadly positive about the future. Taylor thinks it unlikely China will be self-sufficient in every area of the wood market, and other markets will arise.<\/p>\n

In the end, the decider might be New Zealand's own natural constraints.<\/p>\n

The \u201cwall of wood\u201d, planted in the 1990s, is close to, if not at, \u201cpeak wood,\u201d and future exports will depend on how much is replaced.<\/p>","protected":false},"excerpt":{"rendered":"

Thirty years ago the Government sold off much of its Crown forestry estate. Today it’s looking to forestry, now largely in private hands, to achieve many aims. Help offset carbon, provide enough timber for our housing industry, earn export income, … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":64313,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715,4714],"tags":[3722,3382,4071],"class_list":["post-80887","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-log-prices","tag-new-zealand","tag-timber-prices"],"acf":[],"yoast_head":"\nChina\u2019s high prices leave New Zealand wood industry in danger - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/chinas-high-prices-leave-new-zealand-wood-industry-danger\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"China\u2019s high prices leave New Zealand wood industry in danger - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Thirty years ago the Government sold off much of its Crown forestry estate. 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