China log demand drives forestry export growth

A logging truck is lost amongst a sea of logs awaiting export at the Port of Gisborne. Photo / Alan Gibson.

Log exports to China are driving an increase in the value of New Zealand's forestry products - which has more than doubled in the past 20 years, according to figures from Statistics New Zealand.

In 2012 the country exported $4.5 billion of forestry products, compared with $1.9 billion in 1992.

"New Zealand is now the third-largest exporter of logs in the world, after Russia and the United States. In 2012 we supplied 8 percent of the total value of the world's export logs," Statistics New Zealand prices manager Chris Pike said.

Forestry products continue to be our third-largest goods export, after dairy and meat.

More than 65 per cent of China's dairy imports, 10 per cent of its forestry imports and 6 per cent of its meat imports now come directly from New Zealand.

"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 percent by 2012," said Pike.

The value of log exports more than tripled between 1992 and 2012 - from $443 million to $1.6 billion.

According to Statistics New Zealand figures, 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.

Sawn timber is our second-largest forestry product export, followed by manufactured wood products, paper and paper products, and wood pulp.

"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," said Pike.