Many of the country's forest owners are anticipating a sharp increase in demand from their customers in China - this country's biggest log market - as stockpiles there dwindle.
Many of the country's forest owners are anticipating a sharp increase in demand from their customers in China - this country's biggest log market - as stockpiles there dwindle.
Forest owners and contractors are developing guidelines for safe work practices so logging and processing can begin where and when it is required.
Harvesting and saw-milling has been halted since the Covid-19 lockdown began on March 26 and stocks are being run down as essential manufacturers like packaging makers andpallet producers work through inventories.
Jon Tanner, chief executive of the Wood Processors and Manufacturers Association, said pallet makers in some parts of the country started the lockdown with seven to nine days' supply of timber.
Pulp makers – producing for packaging and newsprint – will probably be getting through their log supplies by the third week of April, he said.
"We are going to have to start up parts of the industry pretty soon," Tanner said.
Processors and contractors have been working on safe work practices so they are ready "for any kind of amber or green light" the Government provides, he said.
He said people need to understand the lead times involved in restocking the industry supply chain, especially given recent calls for a fast resumption of construction work as well. That would require a deeper ramp-up of activity.
"The longer we leave it, the more of a shortage there is going to be," he said.
The country's sawmills and most of its pulp mills were shut last week in order to minimise the number of people working during the lockdown.
Norske Skog Tasman, initially told to shut by Saturday night, has an extension to keep making paper until April 12. Oji Fibre Solutions is concentrating pulp production at its Kinleith plant in order to supply packaging for the country's food producers and exporters.
But as ports clear the last of the logs awaiting export, many of the country's forest owners are anticipating a sharp increase in demand from their customers in China – this country's biggest log market – as stockpiles there dwindle.
Forestry Minister Shane Jones told Newshub at the weekend that some form of local prioritisation may be needed to ensure local mills get access to wood.
Julie Collins, who leads Te Uru Rakau - the ministry's Forestry New Zealand arm, wouldn't be drawn on a potential timetable for resuming limited harvesting.
The Ministry for Primary Industries has been co-ordinating efforts to keep the country's key export businesses operating during the lockdown.
Julie Collins, who leads Te Uru Rakau – the ministry's Forestry New Zealand arm, wouldn't be drawn on a potential timetable for resuming limited harvesting.
She said the priority remained on producing shipping pallets, packing cases and other packaging for food, beverage and pharmaceutical supply.
"We are aware that some packaging companies have more than enough stock to cover their needs for months while others will need to be resupplied during the lockdown period," she said on Friday.
"We are working closely with the pulp mills that are still operating and receiving regular updates on their stockholdings of logs and woodchip for paper and cardboard packaging production. At this stage indications are they have sufficient to cover needs during the lockdown."
Tanner endorsed Jones' comments on the need to ensure log supplies are managed as the country comes out of lockdown.
Demand in China is "just going through the roof" and some sort of export quota on logs may be needed to ensure local demand is met first, Tanner said.
