Forestry production and trade for the December 2008 quarter1
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Statistical Release 02/09, December 2008
Published April 2009
ISSN: 0114-5371
Overview
Production of all forest products, except for paper products, declined for the December 2008 quarter compared to the same quarter last year. Sawn timber and fibreboard production were severely affected, both falling over 20 percent.
In contrast to production, forestry export volume results were mixed compared with the same quarter for the previous year. Sawn timber, logs and plywood export volumes rose while wood pulp, fibreboard and particleboard export volumes fell compared to the December 2007 quarter.
Export earnings from the majority of forest products increased compared with the same quarter last year. The major driver behind this increase was the steady decline in the value of the New Zealand dollar. Total export earnings for the year ending December 2008 increased by 3.6 percent to NZ$3444 million. New Zealand imports of forest products increased by 2.2 percent to NZ$1500 million for the 2008 calendar year.
Harvesting activity
An estimated 4.7 million cubic metres of roundwood were harvested from New Zealand forests over the December 2008 quarter. This was a 9.8 percent reduction in harvesting levels compared with the September 2008 quarter, and a 6.7 percent decrease compared with the December 2007 quarter.
Export logs and poles
Export log earnings for the December 2008 quarter were NZ$239 million, up 28.8 percent on the September 2008 quarter. This is the largest quarter-to-quarter increase in export earnings since the September 1993 quarter and was driven by a 30.7 percent increase in average export log prices between the September and December 2008 quarters (MAF, 2008). The major driver behind this increase was the depreciating New Zealand dollar.
Over the December 2008 quarter, earnings from log exports to China topped those from Korea for the first time, resulting in China becoming New Zealand’s largest export log market.
The value of total log exports increased 101.4 percent for the December 2008 quarter when compared with the December 2007 quarter. This increase is mostly attributed to higher export log prices mainly due to the lower New Zealand dollar. The volume of logs exported also increased on the December 2007 quarter, up 28.6 percent to 1.8 million cubic metres.
Sawn timber
Sawn timber production for the December 2008 quarter was 817 000 cubic metres, down 16.6 percent on the September 2008 quarter and down 26.7 percent on the production recorded for the December 2007 quarter. Production levels are the lowest recorded since the March 1999 quarter, with 11 of the 151 mill sawmills surveyed closed over the past three quarters. In addition, only 18 percent of sawmills surveyed in the latest quarter reported an increase in production from the September 2008 quarter, compared with 39 percent of mills reporting an increase from the September to December quarters in 2007. Agrifax (2008) reported that the problem for sawmillers is not the supply of domestic logs, but uncertain demand for the processed product. This is supported by Statistics New Zealand building consent figures for December 2008 which show that consents issued for new dwellings, including apartments, were at the lowest monthly total since January 1987 (Statistics New Zealand, 2009).
Export earnings for sawn timber products were NZ$206 million for the December 2008 quarter, up 8.2 percent on the September 2008 quarter and 7.3 percent higher than the December 2007 quarter. A steady depreciation of the New Zealand dollar over the past three quarters was the main driver behind increased sawn timber export earnings (Reserve Bank of New Zealand, 2009).
Panel products
Total panel production for the December 2008 quarter was 401 000 cubic metres, down 17.4 percent on the September 2008 quarter with every panel mill surveyed reporting reduced production between the September 2008 and December 2008 quarters. Some mills cut shifts to reduce production and one plywood mill reported 100 job losses in October (Radio New Zealand, 2008). Lower sawmill production reduced chip supply to panel mills, impacting on MDF production (Agrifax, 2008).
For the December 2008 quarter, total panel export earnings were NZ$122 million, up 7.8 percent on the September 2008 quarter and 13.7 percent on the December 2007 quarter. As with exports of other forest products, the depreciation in the New Zealand dollar over the past three quarters have lead to the rise in panel export earnings.
Pulp and paper
Pulp production for the December 2008 quarter was 357 000 tonnes, down 6.1 percent on the September 2008 quarter and 9.0 percent on the December 2007 quarter. Reportedly reduced sawn timber production lowered wood fibre availability impacting on pulp production levels (Agrifax, 2008).
The ANZ commodity price index (2009), reported that international pulp prices have reached a three year low. Total pulp exports earnings for the December 2008 quarter were NZ$145.1 million, down 7.2 percent on the September 2008 quarter and 8.8 percent on the December 2007 quarter. Even the depreciating New Zealand dollar could not counter the falling international pulp price.
Pulp export volumes to Japan followed a typical December quarter cycle, increasing 97.6 percent on the September 2008 quarter. Mechanical pulp is the major pulp export to Japan which is predominantly used in newspaper and tissue production.
Paper production for the December 2008 quarter was 217 000 tonnes, down 1.6 percent on the September 2008 quarter, but slightly up 0.3 percent on the December 2007 quarter.
Annual production and trade for the year ended December 2008
Total forestry export earnings for the year ended December 2008 were NZ$3444 million, up 3.6 percent on the 2007 calendar year. Logs were the largest contributor, increasing 18.5 percent to NZ$722 million.
For the year ended December 2008, the total value of forestry imports increased 2.2 percent to NZ$1500 million compared with the December 2007 year due to the weaker New Zealand dollar pushing up import prices.
Table 1: Quarterly production volumes
| December 2008 quarter (000) |
Change from September 2008 quarter (%) |
Change from December 2007 quarter (%) |
December 2008 year (000) |
Change from December2007 year (%) | |
|---|---|---|---|---|---|
| Roundwood (m3) | 4662 | -9.8 | -6.7 | 19 385 | -4.6 |
| Sawn timber (m3) | 817 | -16.6 | -26.7 | 3722 | -15.7 |
| Wood pulp (t) | 357 | -6.1 | -9.0 | 1454 | -6.2 |
| Paper and paperboard (t) | 217 | -1.6 | 0.3 | 872 | 1.4 |
| Fibreboard (m3) | 154 | -14.7 | -20.5 | 669 | -12.5 |
| Veneer (m3) | 105 | -21.7 | -14.0 | 471 | -16.2 |
| Plywood (m3) | 85 | -21.6 | -12.2 | 386 | -9.8 |
| Particleboard (m3) | 57 | -8.5 | -0.4 | 237 | -7.7 |
Table 2: Quarterly export volumes2
| December 2008 quarter (000) |
Change from September 2008 quarter (%) |
Change from December 2007 quarter (%) | |
|---|---|---|---|
| Logs and poles (m3) | 1780 | -1.1 | 28.6 |
| Sawn timber (m3) | 486 | 0.7 | 3.9 |
| Wood pulp (t) | 212 | 8.2 | -9.8 |
| Fibreboard (m3) | 133 | -6.5 | -11.6 |
| Plywood (m3) | 26 | -7.7 | 34.8 |
| Particleboard (m3) | 30 | -25.6 | -8.3 |
Table 3: Quarterly export values3
| December 2008 quarter (NZ$ 000) |
Change from September 2008 quarter (%) |
Change from December 2007 quarter (%) | |
|---|---|---|---|
| Logs and poles | 238 706 | 28.8 | 101.4 |
| Sawn timber | 206 251 | 8.2 | 7.3 |
| Pulp | 145 112 | -7.2 | -8.8 |
| Fibreboard | 75 856 | 23.5 | 23.2 |
| Plywood | 31 003 | -4.0 | 1.7 |
| Particleboard | 15 406 | -21.8 | -0.5 |
Table 4: Annual export volumes and values2, 3
| Export volume | Export value | |||
|---|---|---|---|---|
| December 2008 year (000) |
Change from December 2007 year (%) |
December 2008 year (NZ$ 000) |
Change from December 2007 year (%) | |
| Logs and poles (m3) | 6 686 | 11.8 | 722 429 | 18.5 |
| Sawn timber (m3) | 1 795 | 0.8 | 721 631 | -2.3 |
| Wood pulp (t) | 791 | -8.7 | 579 892 | -5.8 |
| Other paper and paperboard (t)4 | 385 | 2.5 | 384 158 | 10.5 |
| Panel products (m3) | 882 | -2.6 | 450 795 | 2.3 |
| Other forestry products | - | - | 585 042 | 1.9 |
| Total exports2 | - | - | 3 443 951 | 3.6 |
Table 5: Annual import volumes and values5
| Import volume | Import value | |||
|---|---|---|---|---|
| December 2008 year (000) |
Change from December 2007 year (%) |
December 2008 year (NZ$ 000) |
Change from December 2007 year (%) | |
| Logs and poles (m3) | 4 | 5.5 | 4 100 | 12.3 |
| Sawn timber (m3) | 46 | -18.6 | 66 113 | -1.6 |
| Wood pulp (t) | 24 | -1.4 | 23 535 | 3.2 |
| Paper and paperboard (t) | 481 | -4.6 | 707 318 | 2.6 |
| Panel products (m3) | 57 | -9.0 | 44 144 | -2.7 |
| Furniture and furniture parts | - | - | 223 681 | -6.0 |
| Other forestry products | - | - | 431 455 | 7.3 |
| Total imports | - | - | 1 500 345 | 2.2 |
Notes
- All production figures in this release are provisional; all December 2008 trade figures are provisional.
- Free on board - the value of goods at New Zealand ports before export.
- Export values are NZ$ free on board (fob) (the value of goods at New Zealand ports before export, includes cost of transport to port).
- Excludes newsprint exports. These are suppressed to comply with Statistics New Zealand confidentiality rules.
- Import values are the NZ$ cost of goods including insurance and freight to New Zealand (cif).
References
Agrifax (2008) "New Zealand Log Prices" - December 2008. Friday Offcuts, http://www.fridayoffcuts.com/dsp_newsletter.cfm?id=354 . Accessed 16 January 2009.
ANZ Commodity Price Index New Zealand (2009) "Pulp Friction". http://www.anz.co.nz/about/media/newslibrary.asp?Commodity_Price_Index. Accessed 3 March 2009.
Ministry of Agriculture and Forestry (2008) "Indicative New Zealand Radiata Pine Log Prices". http://www.maf.govt.nz/forestry/statistics/logprices/index.html. Accessed 2 March 2009.
Radio New Zealand (2008) "300 jobs for chop in planned sawmill closures". http://www.radio.nz/news/stories/2008/10/14/124379671395 . Date accessed 15/10/2008
Reserve Bank of New Zealand (2009) "B1 Exchange Rates". http://www.rbnz.govt.nz/statistics/exandint/b1/HB1.XLS . Accessed 2 March 2009.
Statistics New Zealand (2009) "Building Consents Issued - December 2008". http://www.stats.govt.nz/store/2009/01/building-consents-issued-dec08-hotp.htm?page=para001Master . Accessed 3 March 2009.
© Crown copyright 2009 - 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
Table 1: Quarterly sawn timber production
Table 2: Annual sawn timber production
Table 3: Production of pulp
Table 4: Production of paper and paperboard
Table 5: Production of panel products
Table 6: Estimated roundwood removals from New Zealand forests
Table 7: Log exports by country of destination by quantity and value
Table 8: Hardwood chip exports by country of destination by quantity and value
Table 9: Softwood chip exports by country of destination by quantity and value
Table 10: Sawn timber exports by country of destination by quantity and value
Table 11: Mechanical wood pulp exports by country of destination by quantity and value
Table 12: Chemical wood pulp exports by country of destination by quantity and value
Table 13: Fibreboard exports by country of destination by quantity and value
Table 14: Plywood exports by country of destination by quantity and value
Table 15: Particleboard exports by country of destination by quantity and value
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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