17 September 2008
Increased opportunities for Hawkes Bay forest industry
The Ministry of Agriculture and Forestry (MAF) today released its "Hawkes Bay Forest Industry and Wood Availability Forecasts Report" that indicates an increase in wood availability in the region after 2016 and increased opportunities for the sector.
"There is a well-established forest industry in the Hawkes Bay and this report aims to assist forestry industries, planning practitioners and infrastructure and service providers to plan resources, assess opportunities and identify issues," says John Vaney, Regional Team Leader for MAF Policy in Rotorua.
The forecasts show that an increase in wood availability is possible after 2016, with the potential for regional harvest to increase from the current level of about 1.7 million cubic metres to around 3 million cubic metres after 2021.
"The potential increase after 2016 will present new opportunities for further investment in primary and secondary wood processing industries. The increased availability of wood and expansion of processing will also pose substantial benefits to the Port of Napier as the logical port of export," says Bob Pocknall, Chairman of the Hawkes Bay Forestry Group.
"Currently, there is an ongoing need for basic and advanced forestry skills training, that will be more critical with this potential increase in wood availability and processing," he adds.
"Overall, the Hawkes Bay is an attractive area to grow production forests. It not only has the potential to expand the existing resource on marginal pastoral country, it also has good infrastructure, favourable council regulations and lifestyle attributes that stand out for this forestry region."
The report states the availability of radiata pine over the next decade is expected to remain relatively static, although short term fluctuations are likely as market conditions change.
"The report identifies that although the supply curve looks to remain flat up until around 2016, there are opportunities to improve utilisation of existing resources through identifying efficiencies and developing new product lines. For example, a number of mills are now processing or planning to process more of the logs currently being exported," Vaney said.
The report also states that as energy costs increase, opportunities exist for forest owners to supply harvest residues for energy generation. This has been discussed as a future option for the region.
The "Hawkes Bay Forest Industry and Wood Availability Forecasts Report" is one of a series of publications on regional forestry industries and wood availability forecasts being produced MAF. It provides new wood availability forecasts and associated commentary for the region, covering the period 2008 to 2040, and outlines opportunities and constraints facing the region's forest industries.
The forecasts are produced in association with the region's major forest growers.
A copy of the report can be found on the MAF website link: www.maf.govt.nz/mafnet/publications/wood-availability/hawkes-bay/
ENDS
Media contact:
Prasheeta Ram-Taki | MAF Communications
Phone: 04-894 5535 | Mobile: 029-894 5535 | Email: prasheeta.ram-taki@maf.govt.nz
Report highlights
- Radiata pine makes up 98 percent (130 000 hectares) and Douglas-fir less than 1 percent (600 hectares) of the forest area in the Hawkes Bay region. There are nearly 2000 hectares of other exotic hardwood and softwood species in the Hawkes Bay; these have not been modelled in this analysis.
- The majority of the forests (117 000 hectares out of 132 000 hectares) are established in the Wairoa and Hastings Districts, which means a significant volume of forests in the Hawkes Bay are located on a latitude north of Napier.
- A significant proportion of processed wood products are exported through the Port of Napier, while the volume of log exports has varied over recent years.
- Most of the potential increase in wood availability after 2016 is from the small-scale forest growers who established forests during the 1990s.
- The timing of harvest after 2016 will depend on the decisions of a large number of small-scale owners. Market conditions and logistical constraints will limit how quickly the additional wood availability from small-scale owners' forests can be harvested in that period.
- The total harvest is projected to decline post-2034. This is in line with the age structure of the resource. The timing and level of decrease will depend on the rate at which the regions' post-1990 forests are harvested, the extent to which they are replanted, and also the level of new land planting. The forecasts are based on no new land planting.
