Strong Chinese domestic demand has contributed to New Zealand exporting $4.4 billion worth of logs in the year to March 31 – up $800 million on the previous year. 

The latest Ministry of Agriculture and Forestry statistics show that China imported 1.7 million cubic metres of logs in the March quarter alone – up 44 percent on the same quarter in 2010.

Andrew Doube, Acting Manager, Sector Infrastructure for MAF, says that the stellar export figures were driven by China’s strong domestic growth, coupled with a reduction in availability of logs from its traditional supplier Russia. 

 “Well there has been a big increase in log exported over the past year. That has been driven by strong economic growth out of China and increasingly India as well.

“We saw China imported 1.7 million cubic metres of logs in the year ending March which is up 44 or 45 percent on last year which is quite good.

“Secondly we saw strong demand out of India as well which is emerging as quite an important for logs for the New Zealand export market. The growth there is quite phenomenal really 157 percent on last year.”  

Andrew Doube says India is also emerging as a significant destination for logs, and its demand sees it threatening to overtake Korea, as our second largest export market.

In the 2011 March quarter India imported 0.4 million cubic metres of logs – up 157 percent on the previous year.   

However, the strong demand has also pushed up the international price of logs, which is putting further pressure on New Zealand’s domestic wood processors.

As a result of the high prices, and limited domestic demand numerous saw mills, have down-scaled or closed completely since the 2010 December quarter.

Further, Andrew Doube says, other sawmills are openly questioning their future. 

Once reconstruction work begins in-full in Christchurch, the demand for processed wood products in the country is expected to increase.