Forestry production and trade for the December 2007 quarter1
Statistical Release 01/2008, December 2007
Published March 2008
ISSN: 0114-5371
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Overview
Total forestry export earnings for the December 2007 quarter were NZ$582 million, a decrease of NZ$77 million on the December 2006 quarter. This was largely due to a decline of NZ$32 per JAS cubic metre in export log prices over this period. Production of most forestry products were also down on the December 2006 quarter.
Harvesting activity (measured as roundwood removals) over the December 2007 year was up 859 000 cubic metres on the December 2006 year. This increase may have been in response to the Government signalling its intention for the deforestation (conversion of forest land to non-forest land) of pre-1990 forests to be subject to obligations under the Emissions Trading Scheme from 1 January 2008. The increased harvesting meant mills reported steady access to suitable logs over the December 2007 quarter and levels of stocks of pulp logs increased at some pulp mills.
The major factors influencing trade were similar to those experienced in previous quarters: high bulk shipping rates, the high New Zealand dollar and lower log prices.
Export Logs and Poles
The average export log price decreased NZ$32 per JAS cubic metre compared to the December 2006 quarter. This meant export returns from logs and poles dropped NZ$54 600 over this period. Log export volumes also declined (down 264 000 cubic metres) on the December 2006 quarter. High bulk shipping rates and the high New Zealand dollar continued to be the major contributors to decreasing log exports.
Sawn Timber
Sawn timber production fell 85 000 cubic metres from the September 2007 quarter, due to sawmill closures during the Christmas break. Sawn timber export volumes were up 18 000 cubic metres on the September 2007 quarter. This was reflected in increased exports to Australia and Japan (up 7000 and 16 000 cubic metres respectively).
Compared to the December 2006 quarter, sawn timber production was up by 52 000 cubic metres. However, sawn timber exports were down 52 000 cubic metres over the same period. Timber stocks were high, but did not increase from the September 2007 quarter. These factors reflect the strong domestic market over the December 2007 year. The increase in production could have been influenced by increased log availability as a result of felling ahead of the Emissions Trading Scheme which came into effect on 1 January 2008. Many sawmillers reported a constant supply of suitable logs over the December quarter.
Panel Products
Total panel production declined 65 000 cubic metres on the September 2007 quarter. The most significant change was in veneer production (down 30 000 cubic metres). This was most likely caused by resource unavailability as logging crews stopped for the Christmas break. There was little change in panel production between the December 2006 and December 2007 quarters (down 7800 cubic metres). The most significant change over this period was an increase in fibreboard production (up 8600 cubic metres). Panel export volumes in the December 2007 quarter were down 1500 cubic metres on the December 2006 quarter. However, panel export earnings were up NZ$8 500 over the same period. This could have occurred from exporters shifting from the US to the Japanese market.
Paper and Pulp
There was little change in total paper production on the September 2007 quarter (up 1600 tonnes). However, large changes were seen within the different paper types over this period. Newsprint production dropped 9200 tonnes on the September 2007 quarter. An international surplus in newsprint production is the likely driver of this reduction. Other paper and paperboard was up on the September 2007 quarter by 10 888 tonnes because of stronger international demand.
There was little change in pulp production on both the September 2007 and the December 2006 quarters (up 4000 and down 3000 cubic metres respectively). Wood pulp exports to Japan were up 16 000 cubic metres on the September 2007 quarter.
Table 1: Production Volumes
| December 2007 quarter (000) |
Change from September 2007 quarter (%) |
Change from December 2006 quarter (%) |
December 2007 year (000) |
Change from December 2006 year (%) | |
|---|---|---|---|---|---|
| Roundwood (m3) | 4 956 | -7.3 | -4.3 | 20 305 | 4.4 |
| Sawn timber (m3) | 1 137 | -7.0 | 4.8 | 4 506 | 4.7 |
| Wood pulp (t) | 387 | 1.0 | -0.7 | 1 536 | 2.0 |
| Paper and paperboard (t) | 217 | 0.8 | -2.0 | 863 | -3.9 |
| Fibreboard (m3) | 194 | -2.4 | 4.6 | 766 | -13.1 |
| Veneer (m3) | 166 | -15.4 | -1.0 | 710 | 3.2 |
| Plywood (m3) | 97 | -18.1 | -6.0 | 428 | 3.0 |
| Particleboard (m3) | 57 | -13.5 | -13.2 | 254 | 5.0 |
Table 2: Quarterly Export Volumes2
| December 2007 quarter (000) |
Change from September 2007 quarter (%) |
Change from December 2006 quarter (%) | |
|---|---|---|---|
| Logs and poles (m3) | 1 428 | -6.7 | -15.6 |
| Sawn timber (m3) | 468 | 4.0 | -10.2 |
| Wood pulp (t) | 235 | -2.5 | -3.7 |
| Fibreboard (m3) | 151 | -3.8 | 0.7 |
| Plywood (m3) | 19 | -9.5 | -24.0 |
| Particleboard (m3) | 32 | 6.7 | 10.3 |
Table 3: Quarterly Export Values
| December 2007 quarter (NZ$ 000) |
Change from September 2007 quarter (%) |
Change from December 2006 quarter (%) | |
|---|---|---|---|
| Logs and poles | 123 153 | -11.9 | -30.7 |
| Sawn timber | 192 622 | -3.4 | -6.5 |
| Pulp | 159 171 | -7.0 | -9.7 |
| Fibreboard | 61 553 | -0.2 | 10.2 |
| Plywood | 30 459 | -5.0 | 2.5 |
| Particleboard | 15 479 | 18.5 | 15.4 |
Annual Production and Trade for year ended December 2007
Harvesting activity increased from the December 2006 year to December 2007 year (up 859 000 cubic metres). It was reported that clearfelling in the central North Island created a massive backlog at pulp mills, as forest and farm owners tried to avoid potential carbon charges associated with land use changes. The forecast high return for milk solids will have reinforced the decision of forest owners who chose to convert to dairy production.
Wood pulp imports for the December 2007 year were up 19 500 cubic metres (375.5 percent) on the December 2006 year. This occurred because SCA Hygiene Australasia (tissue pulp mill) closed in the December 2007 year, and pulp was imported to fill the demand. The decline in tissue pulp production is not seen in the figures as tissue pulp is reported with other types of pulp. Total pulp production for the December 2007 year increased 30 200 cubic metres compared to the December 2006 year.
Table 4: Annual Exports
| Export volume | Export value | |||
|---|---|---|---|---|
| December 2007 year (000) |
Change from December 2006 year (%) |
December 2007 year (NZ$ 000) |
Change from December 2006 year (%) | |
| Logs and poles (m3) | 6 022 | 8.0 | 614 266 | 9.0 |
| Sawn timber (m3) | 1 782 | -9.1 | 738 798 | -8.6 |
| Wood pulp (t) | 867 | 3.5 | 615 419 | 5.2 |
| Paper and paperboard (t)3 | .. | .. | .. | .. |
| Panel products (m3) | 906 | -13.5 | 440 423 | -6.4 |
| Other forestry products | - | - | 579 064 | 5.5 |
| Total exports4 | - | - | 2 987 970 | 0.4 |
Table 5: Annual Imports5
| Import volume | Import value | |||
|---|---|---|---|---|
| December 2007 year (000) |
Change from December 2006 year (%) |
December 2007 year (NZ$ 000) |
Change from December 2006 year (%) | |
| Logs and poles (m3) | 4 | -25.2 | 3 650 | -28.8 |
| Sawn timber (m3) | 56 | 4.5 | 67 141 | 9.7 |
| Wood pulp (t) | 25 | 375.5 | 22 799 | 269.1 |
| Paper and paperboard (t) | 505 | 4.5 | 689 352 | -2.0 |
| Panel products (m3) | 62 | 39.9 | 45 386 | 17.3 |
| Furniture and furniture parts | - | - | 237 892 | 0.9 |
| Other forestry products | - | - | 402 178 | 4.5 |
| Total imports | - | - | 1 468 398 | 2.3 |
Notes
1. All production figures in this release are provisional; all December 2007 trade figures are provisional.
2. Export values are NZ$ free on board (fob) (the value of goods at New Zealand ports before export, includes cost of transport to port).
3. Paper and Paperboard exports are suppressed to comply with Statistics New Zealand confidentiality rules.
4. Total exports do not include Paper and Paperboard.
5. Import values are the NZ$ cost of goods including insurance and freight to New Zealand (cif).
© Crown copyright 2007 – Ministry of Agriculture and Forestry. This document may be copied providing its source is acknowledged.
Disclaimer
While every effort has been made to ensure the information in this publication is accurate, the Ministry of Agriculture and Forestry does not accept any responsibility or liability for error of fact, omission, interpretation or opinion that may be present, nor for the consequences of any decisions based on this information.
Download accompanying tables as CSV files
- Quarterly sawn timber production [5KB CSV]
- Annual sawn timber production [5KB CSV]
- Production of Pulp [5KB CSV]
- Production of paper and paperboard [5KB CSV]
- Production of panel products [30KB CSV]
- Estimated roundwood removals form NZ forests [30KB CSV]
- Log exports by country of destination by quantity and value [10KB CSV]
- Hardwood chip exports by country of destination by quantity and value [5KB CSV]
- Softwood chip exports by country of destination by quantity and value [5KB CSV]
- Sawn timber exports by country of destination by quantity and value [10KB CSV]
- Mechanical wood pulp exports by country of destination [10KB CSV]
- Chemical wood pulp exports by country of destination [5KB CSV]
- Fibreboard exports by country of destination [10KB CSV]
- Plywood exports by country of destination by quantity and value [5KB CSV]
- Particleboard exports by country of destination by quantity and value [5KB CSV]
Contact for Enquiries
Monitoring and Evaluation
Innovation and Research Policy Directorate
Ministry of Agriculture and Forestry
Email: stats_info@maf.govt.nz
Phone: 64 4 894 0100
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