Exporting primary products from New Zealand has long been celebrated and is the underpinning of our economy and way of life.
We all hail increased dairy and meat exports, are more than happy that the best fruit and crayfish go offshore but throw our toys out of the cot about log exports. Most elections will see some ill-informed politician standing in front of a wharf full of logs pontificating about supporting our local industry and keeping the logs in NZ.
Builders and home handypersons are pointing the finger squarely at forest owners for increased lumber prices and supply issues, assuming these are caused by the exporting of logs rather than supplying local mills.
For perspective, think of trees as sheep and cows. They're all cut into different products for different markets. Your favourite restaurant in Parnell isn't likely to serve you a medium rare lamb bladder and the pet food factory probably doesn't have much demand for a lamb rack. Logs are no different except, unlike the fruit and fishing industries, we keep most of our good product here for our domestic sawmills and export bladder and brains grades of logs.
One tree may have as many as 10 different log grades within one stem and generally quality and hence value diminishes the further up the tree you go. NZ sawmills cannot make money out of sawing lower grade logs, whereas export markets such as China have much lower production costs and therefore can afford to spend more time reconstituting the lower grade logs into usable products.