Forestry production and trade for the March 2008 quarter1
Statistical Release 03/2008, March 2008
Published June 2008
ISSN: 0114-5371
Overview
In the March 2008 quarter harvesting slowed and began to return to a typical level. The surplus logs harvested in the December 2007 quarter were exported, causing a 15 percent increase in log exports on last quarter. The rise in interest rates impacted on domestic construction, sawn timber production declined and stocks increased as a result.
Despite higher export volumes, an increase in shipping rates resulted in lower export earnings for the March 2008 quarter. Total export earnings for the March 2008 quarter were NZ$747 million.
Harvesting activity
Harvesting activity for the March 2008 quarter fell to 4.171 million cubic metres (down 784 000 cubic metres on the December 2007 quarter.) This was a result of poor markets, high stocks, mill holidays, and reflected a reduction in harvesting activity as a result of the proposed emissions trading scheme. New Zealand also experienced a drought during the March 2008 quarter, which may have impacted on roundwood removal volumes as forests in the driest regions were closed to harvesting crews to prevent forest fires occurring.
Export logs and poles
The volume of logs exported during the March 2008 quarter was 1.6 million cubic metres, up 216 000 cubic metres on the December 2007 quarter. Log export earnings were up NZ$42 million over the same period. Shipping availability increased in early February because of the Chinese New Year. Shipping spot rates dropped approximately US$20 per metre at this time and many exporters took advantage of this. Increased harvesting in the December 2007 quarter lead to a greater number of logs stored on the wharf which were not exported until the New Year. The greater volume of logs to be exported, in addition to lower bulk shipping rates, contributed to increased log exports on the December 2007 quarter.
Log export volumes increased 239 000 cubic metres on the March 2007 quarter. However, export earnings declined NZ$2.8 million over the same period. Bulk shipping rates were the most likely cause of this decline. While bulk shipping rates were low in early February 2008, they were still well ahead of where they were in February and March 2007.
Sawn timber
Sawn timber production was 952 000 cubic metres for the March 2008 quarter. This was substantially less than the December 2007 quarter (down 182 000 cubic metres or 16.1 percent). Sawn timber stocks increased 37 000 cubic metres on the December quarter to 636 000 cubic metres. The change in production and stock was caused by faltering domestic and international demand for sawn timber. A rise in New Zealand interest rates has slowed the domestic house building sector, causing the demand for sawn timber to fall.
International demand for sawn timber also declined during the March 2008 quarter. Sawn timber export volumes fell 92 000 cubic metres on the December quarter to 375 000 cubic metres (a decline of NZ$47 million in export earnings).
Falling demand for new housing in the US contributed to the reduction in export demand. New Zealand sawn timber exports to the USA were down 21 000 cubic metres (export earnings down NZ$16 million) on the December 2007 quarter. The number of new houses built in Japan also weakened in the March 2008 quarter, resulting in a fall of 13 000 cubic metres exported on the December 2007 quarter (a decline of NZ$2 million in export earnings).
Production in the March 2008 quarter was down 46 000 cubic metres on the March 2007 quarter. This was because Carter Holt Harvey mills took the bulk of their holidays in January this year, and Easter atypically fell in March. There were also some permanent mill closures and shift reductions resulting in production loss.
Panel products
Both production and exports of panel products declined compared to the December 2007 quarter. Total panel production fell 49 000 cubic metres, panel export volumes fell 25 000 cubic metres and panel export earnings fell $NZ24 million. The recent decline in both domestic and international housing, coupled with an international increase in resin costs is the likely major cause of these declines.
However, panel exports increased 11 000 cubic metres on the March 2007 quarter, while export earnings declined $NZ2.2 million over the same period. Shipping rates have increased dramatically since the March 2007 quarter, reducing the return seen on panel exports.
Pulp and paper
Wood pulp production in the March 2008 quarter was 372 400 tonnes (down 14 900 tonnes on the December 2007 quarter). A decline was also seen in the amount of wood pulp exported from New Zealand (down 40 400 tonnes to 194 146 tonnes) and pulp export earnings (down NZ$21.8 million to NZ$137.9 million).
Japan is one of New Zealand’s major wood pulp markets. Currently Japanese demand for wood pulp has fallen. This is the most likely reason for the reduction in wood pulp exports seen in the March 2008 quarter.
Total paper production fell slightly on the December 2007 quarter to 217 000 tonnes.
Table 1: Production volumes
| March 2008 quarter (000) |
Change from December 2007 quarter (%) |
Change from March 2007 quarter (%) |
March 2008 year (000) |
Change from March 2007 year (%) | |
|---|---|---|---|---|---|
| Roundwood (m3) | 4 171 | -15.8 | -10.8 | 19 754 | -0.4 |
| Sawn timber (m3) | 952 | -16.1 | -4.6 | 4 433 | 4.0 |
| Wood pulp (t) | 372 | -3.9 | -1.9 | 1 529 | 0.0 |
| Paper (t) | 217 | -0.1 | 5.9 | 875 | 0.3 |
| Fibreboard (m3) | 177 | -8.7 | 0.7 | 767 | -8.3 |
| Veneer (m3) | 148 | -11.0 | -6.0 | 701 | 1.8 |
| Plywood (m3) | 87 | -10.1 | -11.2 | 418 | -1.0 |
| Particleboard (m3) | 53 | -6.9 | -18.0 | 242 | -5.4 |
Table 2: Quarterly export volumes2
| March 2008 quarter (000) |
Change from December 2007 quarter (%) |
Change from March 2007 quarter (%) | |
|---|---|---|---|
| Logs and poles (m3) | 1 600 | 15.6 | 17.6 |
| Sawn timber (m3) | 375 | -19.7 | -2.2 |
| Wood pulp (t) | 194 | -17.2 | -0.1 |
| Fibreboard (m3) | 137 | -8.9 | 13.0 |
| Plywood (m3) | 18 | -7.3 | 11.2 |
| Particleboard (m3) | 22 | -32.4 | -24.0 |
Table 3: Quarterly export values
| March 2008 quarter (NZ$ 000) |
Change from December 2007 quarter (%) |
Change from March 2007 quarter (%) | |
|---|---|---|---|
| Logs and poles | 160 666 | 35.6 | -1.7 |
| Sawn timber | 145 126 | -24.5 | -7.2 |
| Wood pulp | 137 863 | -13.4 | -3.2 |
| Fibreboard | 52 872 | -14.1 | 13.1 |
| Plywood | 22 097 | -27.5 | -16.6 |
| Particleboard | 8 632 | -44.3 | -31.4 |
Annual production and trade for year ended March 2008
Roundwood removals for the March 2008 year were 19.8 million cubic metres, down 89 000 cubic metres on the March 2007 year. This possibly reflects a focus on immature forest clearing in the latter part of 2007.
While there has been a recent downturn in the domestic housing market, there was high sawn timber production over most of the March 2008 year. Sawn timber production for the March 2008 year was 4.4 million cubic metres, 173 000 cubic metres more than what was produced in the March 2007 year.
Annual wood pulp imports increased 773.8 percent on the March 2007 year (from 4000 tonnes in the March 2007 year to 32 000 tonnes in the March 2008 year). A pulp mill closed in the latter part of 2007, and paper mills fulfilled their requirements by sourcing wood pulp internationally.
Table 4: Annual exports 3, 4
| Export volume | Export value | |||
|---|---|---|---|---|
| March 2008 year (000) |
Change from March 2007 year (%) |
March 2008 year (NZ$ 000) |
Change from March 2007 year (%) | |
| Logs and poles (m3) | 6 217 | 4.1 | 606 820 | -4.4 |
| Sawn timber (m3) | 1 787 | -7.8 | 727 174 | -9.6 |
| Wood pulp (t) | 866 | 6.9 | 610 896 | 2.7 |
| Paper and paperboard (t) | .. | .. | .. | .. |
| Panel products (m3) | 920 | -7.5 | 435 625 | -3.5 |
| Other forestry products | - | - | 569 903 | 1.6 |
| Total exports | - | - | 2 950 417 | -3.1 |
Table 5: Annual imports5
| Import volume | Import value | |||
|---|---|---|---|---|
| March 2008 year (000) |
Change from March 2007 year (%) |
March 2008 year (NZ$ 000) |
Change from March 2007 year (%) | |
| Logs and poles (m3) | 5 | 0.0 | 3 860 | -20.5 |
| Sawn timber (m3) | 56 | 9.8 | 65 318 | 4.8 |
| Wood pulp (t) | 32 | 773.8 | 28 912 | 519.9 |
| Paper and paperboard (t) | 506 | 4.0 | 684 550 | -3.6 |
| Panel products (m3) | 68 | 34.9 | 42 295 | 0.7 |
| Furniture and furniture parts | - | - | 239 743 | -0.9 |
| Other forestry products | - | - | 395 801 | -0.2 |
| Total imports | - | - | 1 460 480 | -0.1 |
Notes
1. All production figures in this release are provisional; all March 2008 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 2008 – 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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