Forestry production and trade for the September 2008 quarter1
Statistical Release 01/2009, September 2008
Published January 2009
ISSN: 0114-5371
Overview
The September 2008 quarter was varied as log export volumes increased due to favourable exporting conditions, while sawn timber production decreased. Pulp production returned to previous levels of approximately 380 000 tonnes, after declining in the June 2008 quarter. Panel production and export volumes significantly increased over the same period.
For the year ended September 2008, production of all forest products (except paper) declined compared to the year ended September 2007. Exports volumes of all forest products (except logs) also fell during the same period.
Harvesting activity
A total of 5.1 million cubic metres of roundwood were harvested for the September 2008 quarter, up 6.9 percent on the June 2008 quarter. The majority of growth came from an increase in logs harvested for export during the September 2008 quarter.
Export logs and poles
Export log volumes for the September 2008 quarter were 1.8 million cubic metres. This is the highest volume of logs exported from New Zealand since the September 2003 quarter. The drivers behind this increase were improved log prices, lower shipping rates and the lower value of the New Zealand dollar.
Compared with the June 2008 quarter, September 2008 log export volumes increased 18.6 percent which was mostly driven by increased demand from China.
China sourced 594 000 cubic metres of logs from New Zealand for the September 2008 quarter, an increase of 27.5 percent compared with the previous quarter. The Russian government increased tax on their log exports, pushing up the prices for Russian logs and causing China to substitute some Russian logs with New Zealand logs (Friday Offcuts, 2008).
Revenue from New Zealand log exports increased 28.9 percent to NZ$188.5 million compared with the June 2008 quarter. Export earnings improved due to three main drivers:
- increased log prices, up 12.3 percent to NZ$100.6 fob2, 3 (Ministry of Agriculture and Forestry, 2008);
- a decrease in the value of the New Zealand dollar;
- decreased shipping rates on the previous quarter.
When compared with the same quarter in 2007, the September 2008 quarter log export volumes increased 18.0 percent to 1.8 million cubic metres and export earnings increased 34.7 percent to NZ$188.5 million. This was also due to the depreciating New Zealand dollar, falling shipping rates and higher export log prices compared with the September 2007 quarter.
Sawn timber
Sawn timber production fell 3.9 percent to 967 000 cubic metres compared with the June 2008 quarter. The value of residential building work for the September 2008 quarter also followed this trend, decreasing 2.6 percent compared with the June 2008 quarter (Statistics New Zealand, 2008). This was the first time that production has fallen between a June and September quarter since 1997.
Compared with the June 2008 quarter, September 2008 sawn timber export volumes increased 6.8 percent to 483 000 cubic metres. This was typical for a September quarter. Over this same period, sawn timber export volumes to China and Japan increased 29.4 percent to 77 000 cubic metres and 40.6 percent to 42 000 cubic metres respectively. The United States housing market remained weak over the quarter, resulting in a 4.6 percent decrease in sawn timber exports to the US on the previous quarter.
Compared to the September 2007 quarter, September 2008 quarter sawn timber production fell 19.2 percent to 967 000 cubic metres. The September 2008 quarter was the lowest September quarter since 1998. The value of residential building work carried out over the September 2008 quarter was also down 18.6 percent compared with the same quarter last year (Statistics New Zealand, 2008). Total sawn timber export volumes increased 7.3 percent to 483 000 cubic metres compared with the September 2007 quarter. This was due to sawn timber exports increasing to all major export destinations except the United States.
Panel products
Total panel production increased 7.6 percent to 485 000 cubic metres on the June 2008 quarter mostly due to increased production of fibreboard and veneer. Particleboard was the only panel product to decrease in production over the same period.
Total panel export volumes and earnings both increased on the June 2008 quarter, 41 000 cubic metres (24.2 percent) and NZ$26.6 million (30.6 percent) respectively. The increase in fibreboard export volumes and earnings were the main contributors, up 25 000 cubic metres (21.1 percent) and NZ$13.2 million (27.5 percent) respectively over the June 2008 quarter.
Total panel production fell 42 000 cubic metres (8.0 percent) on the September 2007 quarter. Total export volumes and earnings of panel products both increased on the previous September quarter. The most significant changes were a 31.2 percent increase in particleboard export volumes (11 000 cubic metres) and a 50.6 percent increase in particleboard export earnings (NZ$6.6 million) for the September 2008 quarter compared with the same quarter in the previous year.
Pulp and paper
Wood pulp production for the September 2008 quarter was 380 000 tonnes, an increase of 40 000 tonnes on the June 2008 quarter. Total wood pulp export volumes and earnings increased 6000 cubic metres (3.1 percent) and NZ$15.8 million (11.2 percent) respectively compared with the June 2008 quarter. Pulp export volumes and earnings to Australia and Indonesia were the largest contributors to this increase.
Wood pulp production declined by 8000 tonnes (2.0 percent) for the September 2008 quarter compared with the September 2007 quarter. Total wood pulp export volumes and earnings declined 45 000 tonnes (18.7 percent) and NZ$14.8 million (8.6 percent) respectively over the same period. The decrease in total pulp export volumes was a result of fewer chemical pulp exports to China and fewer mechanical pulp exports to Japan.
Total paper production was 220 000 tonnes in the September 2008 quarter, up 0.5 percent on the June 2008 quarter. Compared with the September 2007 quarter, total paper production increased 6000 tonnes (2.7 percent).
Annual production and trade for the year ended September 2008
Export volumes of all forestry products (except logs) declined for the year ended September 2008 compared to 2007. Production of all forestry products (except paper) also fell over the same period.
Sawn timber production for the year ended September 2008 decreased 8.1 percent to 4.0 million cubic metres compared with the September 2007 year due to the continued decline in domestic and international demand. The value of domestic building work put in place decreased 7.7 percent over the same period (Statistics New Zealand, 2008).
Sawn timber export volumes fell 3.1 percent between the years ended September 2007 and 2008. Continued low demand for new houses in the US contributed to this reduction in export volumes.
Table 1: Quarterly production volumes
| September 2008 quarter (000) |
Change
from June 2008 quarter (%) |
Change
from September 2007 quarter (%) |
September 2008 year (000) |
Change
from September 2007 year (%) |
|
|---|---|---|---|---|---|
| Roundwood (m3) | 5108 | 6.9 | –4.4 | 19 660 | –4.0 |
| Sawn timber (m3) | 967 | –3.9 | –19.2 | 4 019 | –8.1 |
| Wood pulp (t) | 380 | 11.6 | –2.0 | 1 489 | –3.8 |
| Paper (t) | 220 | 0.5 | 2.7 | 871 | 0.7 |
| Fibreboard (m3) | 180 | 14.8 | –9.1 | 708 | –6.3 |
| Veneer (m3) | 134 | 7.3 | –7.1 | 488 | –19.8 |
| Plywood (m3) | 108 | 2.5 | –8.4 | 397 | –8.4 |
| Particleboard (m3) | 63 | –1.1 | –5.8 | 237 | –10.4 |
Table 2: Quarterly export volumes4
|
September 2008 quarter (000) |
Change from June 2008 quarter (%) |
Change
from September 2007 quarter (%) |
|
|---|---|---|---|
| Logs and poles (m3) | 1 807 | 18.6 | 18.0 |
| Sawn timber (m3) | 483 | 6.8 | 7.3 |
| Pulp (t) | 196 | 3.1 | –18.7 |
| Fibreboard (m3) | 142 | 21.1 | –9.1 |
| Plywood (m3) | 28 | 66.3 | 30.1 |
| Particleboard (m3) | 40 | 14.9 | 31.2 |
Table 3: Quarterly export values4,5
|
September 2008
quarter (NZ$ 000) |
Change
from June 2008 quarter (%) |
Change
from September 2007 quarter (%) |
|
|---|---|---|---|
| Logs and poles | 188 453 | 28.9 | 34.7 |
| Sawn timber | 190 700 | 6.1 | –4.3 |
| Pulp | 156 340 | 11.2 | –8.6 |
| Fibreboard | 61 434 | 27.5 | –0.4 |
| Plywood | 32 377 | 28.8 | 1.0 |
| Particleboard | 19 666 | 44.8 | 50.6 |
Table 4: Annual export volumes and values4,5
| Export volume | Export value | |||
|---|---|---|---|---|
|
September 2008 year (000) |
Change
from September 2007 year (%) |
September 2008 year (NZ$ 000) |
Change
from September 2007 year (%) |
|
| Logs and poles (m3) | 6297 | 0.2 | 605 396 | –9.5 |
| Sawn timber (m3) | 1777 | –3.1 | 707 672 | –5.9 |
| Pulp (t) | 814 | –7.1 | 593 951 | –6.1 |
| Panel products (m3) | 889 | –2.8 | 432 910 | –0.2 |
| Other forestry products | - | - | 505 082 | –2.4 |
| Total exports | - | - | 2 927 714 | –4.3 |
Notes
-
All production figures in this release are provisional; all September 2008 trade figures are provisional. -
Free on board – the value of goods at New Zealand ports before export. -
Average of all log grades for the September quarter. -
Excludes paper and paperboard exports. These are suppressed to comply with Statistics New Zealand confidentiality rules. -
Export values are NZ$ free on board (fob) (the value of goods at New Zealand ports before export, includes cost of transport to port).
References
Friday Offcuts (2008). Major changes being felt with Russian log taxes. http://www.fridayoffcuts.com. Accessed 19 September 2008.
Ministry of Agriculture and Forestry (2008). Indicative New Zealand Radiata Pine Log Prices. http://www.maf.govt.nz/forestry/statistics/logprices/index.html. Accessed 15 January 2009.
Statistics New Zealand (2008). Value of building work put in place: September
2008 quarter.
http://www.stats.govt.nz/products-and-services/hot-off-the-press/value-of-building/value-of-building-work-put-in-place-sep08qtr-hotp.htm.
Accessed 15 January 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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