Forestry production and trade for the September 2007 quarter1

Statistical Release 05/2007, September 2007 (Updated: January 2008)
ISSN: 0114-5371

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Overview

Over the September 2007 quarter, the forestry industry reported an increase in production of most forest products. However, total export volumes were down this quarter. This is due to the decrease in international log prices during the September quarter, coupled with a continued rise in bulk shipping costs and the strengthening New Zealand dollar.

Log prices have dropped 12.9 percent since the June 2007 quarter, impacting on the production of forestry products. The change in log prices is reflected by the volume of roundwood removals, which have not increased as much as in earlier quarters. Roundwood removals are an indicator of export and domestic processing levels.

For the year ended September 2007, total export earnings were NZ$3.6 million, up 5.8 percent on the previous year. For the same period, export earnings and volumes for value-added products declined.

Panel products reported a decline of 169 000 cubic metres (15.6 percent) in export volumes over the September 2007 year. Export earnings from panel products dropped by NZ$47 million (9.7 percent) over this period. The fall in panel export earnings was not as large as the fall in export volumes, reflecting higher log prices earlier in the year.

Table 1: Production volumes

  September 2007
quarter
(000)
Change from
June 2007
quarter
(%)
Change from
September 2006
quarter
(%)

September 2007
year
(000)
Change from
September 2006
year
(%)
Roundwood (m3) 5307 0.3 1.6 20 494 7.8
Sawn timber (m3) 1191 7.3 2.0 4 411 4.9
Wood pulp (t) 383 –0.6 1.5 1 539 0.6
Paper and paperboard (t) 215 –4.5 4.1 867 –5.7
Fibreboard (m3) 199 1.3 –15.8 757 –18.2
Veneer (m3) 197 3.3 -0.6 712 7.1
Plywood (m3) 118 3.0 1.6 435 7.6
Particleboard (m3) 66 –2.1 –2.2 263 11.6

Production

Between the June and September quarters, wood pulp, paper and particleboard production declined by 3000, 11 000 and 1000 cubic metres respectively. The production of all other forest products increased over this period. Between the September 2006 and September 2007 years, the most significant movements were seen in roundwood removals from 19.0 to 20.5 million cubic metres (7.8 percent) and sawn timber from 4.2 to 4.4 million cubic metres (4.9 percent).

Roundwood

There was little change in roundwood removals in the September quarter, up 18 000 cubic metres (0.3 percent) on the June quarter. This reflects the decline in log prices over the same period.

Paper and paperboard

The production of paper and paperboard was down from 226 000 to 215 000 tonnes (4.5 percent) from the June 2007 quarter. This could be attributed to weak prices in New Zealand’s major paper and paperboard markets (Asia and Australia).

Fibreboard

Fibreboard production increased from 197 000 to 199 000 cubic metres (1.3 percent) from the June 2007 quarter, but was down 38 000 cubic metres (15.8 percent) compared with the September 2006 quarter. This was mostly due to the closure of a fibreboard mill in September 2006 following a fire, which has influenced production levels in the September 2007 year.

Veneer

The volume of veneer produced for the year ended September 2007 increased from 665 000 to 712 000 cubic metres (7.1 percent) compared with the previous year.

Exports2

The export volumes and values for pulp, fibreboard and plywood in the September 2007 quarter were up compared to exports during the June 2007 quarter. The most significant increase for this quarter was export earnings for wood pulp. Wood pulp increased from NZ$143 million to NZ$171 million (19.9 percent). Export volumes for sawn timber were down from 479 000 to 455 000 cubic metres (5.0 percent) this quarter. Sawn timber export values increased by NZ$11 million (5.7 percent).

In comparison to the same quarter last year, September 2007 quarter export volumes increased for most products except sawn timber and fibreboard. This accounted for a combined loss of nearly 30 percent in export value for these two products.

Logs and poles

The volume of logs and poles exported during the September 2007 quarter decreased from 1.7 to 1.5 million cubic metres (9.0 percent). The value of logs and poles exported over the quarter was NZ$141 million, a decrease of NZ$46.3 million (24.7 percent) on the June 2007 quarter and NZ$10.3 million (6.8 percent) compared to the September 2006 quarter result.

Export volumes of logs and poles for the year ended September 2007 increased 981 000 cubic metres (18.4 percent) on the year ended September 2006. Over the same period, export values increased from NZ$509 million to NZ$670 million (31.8 percent). These results reflect the improved New Zealand log prices earlier in 2007.

Log and pole export volumes to Korea and China decreased in the September 2007 quarter by 75 000 cubic metres (8 percent) and 54 795 cubic metres (14 percent) respectively. However, export volumes to each country for the year ended September 2007 increased.

Sawn timber

In the September 2007 quarter sawn timber export volumes were 455 000 cubic metres. This was a decrease of 24 000 cubic metres (5.0 percent) on the June 2007 quarter and 95 000 cubic metres (17.2 percent) on the September 2006 quarter. Export values of sawn timber decreased from NZ$231 million to NZ$201 million (12.7 percent) between the September 2006 and September 2007 quarters.

Wood pulp

Wood pulp export volumes in the September 2007 quarter were up from 197 000 to 241 000 tonnes (22.1 percent) on the June 2007 quarter. Over the same period, wood export values increased by NZ$28 million (19.9 percent). The change from the June 2007 quarter can be attributed to the increase in mechanical pulp exports to Japan, which was up 59.4 percent in volume to 66 000 tonnes and 68.2 percent in value to NZ$27 000.

In comparison to the September 2006 quarter, wood pulp export volumes have increased from 209 000 to 241 000 tonnes (15.3 percent) and earnings increased by 6.7 percent, from NZ$160 million to NZ$171 million.

Over the year September 2006 to September 2007, wood pulp exports accounted for the second largest increase in export values, up by NZ$107 million (20.4 percent) to NZ$633 million.

Table 2: Quarterly export volumes

  September 2007
quarter
(000)
Change from
June 2007
quarter
(%)
Change from
September 2006
quarter
(%)
Logs and poles (m3) 1549 –9.0 3.6
Sawn timber (m3) 455 –5.0 –17.2
Pulp (t) 241 22.1 15.3
Fibreboard (m3) 157 16.6 –22.5
Plywood (m3) 21 4.8 9.7
Particleboard (m3) 29 –14.1 9.9

Table 3: Quarterly export values

 
September 2007
quarter
(NZ$ 000)
Change from
June 2007
quarter
(%)
Change from
September 2006
quarter
(%)
Logs and poles 141 431 –24.7 –6.8
Sawn timber 201 258 5.7 –12.7
Pulp 171 115 19.9 6.7
Fibreboard 61 697 18.2 –16.2
Plywood 32 050 18.0 8.2
Particleboard 13 057 –15.2 –5.7

Table 4: Annual exports

   Export volume Export value

September 2007
year
(000)
Change from
September 2006
year
(%)

September 2007
year
(NZ$ 000)
Change from
September 2006
year
(%)
Logs and poles (m3) 6304 18.4 670 467 31.8
Sawn timber (m3) 1 838 –3.5 754 100 –3.8
Pulp (t) 876 9.1 632 554 20.4
Paper and paperboard (t) 514 –19.7 490 043 –9.0
Panel products (m3) 914 –15.6 433 879 –9.7
Other forestry products - - 571 040 10.1
Total exports - - 3 552 083 5.8

Notes

  1. Production figures from September 2007 are provisional.
  2. Export values are NZ$ free on board (the value of goods at New Zealand ports before export, includes cost of transport to port).

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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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