Forestry production and trade for the December 2006 quarter1
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Overview
Roundwood removals, an indicator of export and domestic processing levels, decreased in the December 2006 quarter after increasing for two consecutive quarters. This was in part due to the New Zealand dollar strengthening during the quarter, up 5.5 percent on the previous quarter the largest quarterly rise since the March 2003 quarter.1 Higher export log prices for all grades helped to maintain harvest levels but the volume of sawn timber and panel products processed domestically fell over the quarter.
1 Reserve Bank's Trade Weighted Index, RBNZ website
Production
The main changes between the September 2006 quarter and the December 2006 quarter were a decrease in roundwood removals and decreases in sawn timber and fibreboard production.
Roundwood
December 2006 quarter roundwood removals were down 0.8 percent to 5 113 000 cubic metres, on the September 2006 quarter. This follows the usual seasonal pattern with domestic production falling over the Christmas period.
Roundwood removals for the December 2006 year were up on the 2005 year but still 12.8 percent lower than the year ended December 2002.
Sawn timber
Production of sawn timber in the December 2006 quarter was down 8.1 percent on the September 2006 quarter, to 1 073 000 cubic metres. September quarter production is usually higher than the December quarter as processing stops for Christmas. Production in the December 2006 quarter was up 8.8 percent on the unusually low December 2005 quarter.
Production of sawn timber in the December 2006 year was up 0.5 percent on the December 2005 year.
Fibreboard
The volume of fibreboard produced in the December 2006 quarter was down 21.5 percent on production in the September 2006 quarter and down 19.8 percent on the December 2005 quarter. A fire at one of the mills in mid-September has suspended fibreboard production indefinitely at that mill.
Wood pulp, paper and paperboard
The production of both wood pulp and paper and paperboard in the December 2006 year were down on the December 2005 year. Wood pulp decreased by 6.2 percent, while paper and paperboard decreased by 7.5 percent. One paper machine was decommissioned at the end of July meaning less wood pulp is needed for the production of paper and less paper is being produced.
Table 1: Production volumes
| December 2006 quarter 000) |
Change from September 2006 quarter (%) |
Change from December 2005 quarter (%) |
December 2006 year 000) |
Change from December 2005 year (%) | |
|---|---|---|---|---|---|
| Roundwood (m3) | 5 113 | –0.8 | 7.7 | 19 253 | 1.3 |
| Sawn timber (m3) | 1 073 | –8.1 | 8.8 | 4 269 | 0.5 |
| Wood pulp (t) | 389 | 3.3 | –6.2 | 1 501 | –6.2 |
| Paper and paperboard (t) | 216 | 7.0 | –11.5 | 880 | –7.5 |
| Fibreboard (m3) | 184 | –21.5 | –19.8 | 876 | 1.8 |
| Veneer (m3) | 171 | –14.2 | 18.5 | 694 | 3.3 |
| Plywood (m3) | 103 | –9.7 | 13.2 | 412 | 1.7 |
| Particleboard (m3) | 65 | –2.5 | 10.2 | 241 | 1.2 |
Exports2
The most significant changes in exports between the December 2006 quarter and the September 2006 quarter were increases in export volumes and values of logs and poles and wood pulp, and decreases in volumes and values of sawn timber and fibreboard exports.
Compared to the December 2005 quarter, December 2006 quarter export volumes and values were up for most products, except for plywood and fibreboard. This is the second quarter where export volumes and values decreased for these two products.
Logs and poles
The volume of logs and poles exported during the December 2006 quarter increased 13.0 percent on the September 2006 quarter to 1.7 million cubic metres, restoring export volumes to levels last seen in the September 2003 quarter. The value of the logs and poles exported in the December 2006 quarter was NZ$177 million, up 16.9 percent on the September 2006 quarter, and up 43.8 percent on the December 2005 quarter.
In the December 2006 year the volume of logs exported to Korea, our largest log export destination, was the same as the December 2005 year. Exports to China in the December 2006 year increased by over 40 percent from the December 2005 year and China overtook Japan to be the second largest log export destination once again.
Export log prices have been increasing steadily with the four quarter average for the December 2006 quarter up NZ$12 per cubic metre on the December 2005 quarter, its highest level since June 2003 (MAF log price series). These log price increases are the result of several factors but export log taxes introduced by the Russian government are of particular importance. These are currently set at 6.5 percent but it has been announced that they will further increase to a maximum of 80 percent by January 2009. This will have the effect of raising international log prices.
Wood pulp
December 2006 quarter wood pulp export volumes were up 17.0 percent (to 244 000 tonnes) on September 2006 quarter volumes. Wood pulp export values also rose, up 10.0 percent to NZ$176 million. The rise in export volumes was driven by chemical wood pulp, up 34.4 percent over the last two quarters. Mechanical pulp export volumes were also up from the September 2006 quarter.
Wood pulp export volumes for the December 2006 quarter increased 16.7 percent compared with the December 2005 quarter, largely due to an increase in chemical pulp exports. Export values rose 50.9 percent over the same period. The increase in value is much larger than the increase in volume as chemical pulp is a higher value product.
Mechanical pulp export volumes to our major mechanical pulp market, Japan, also increased in the December 2006 quarter from the December 2005 quarter. It is worth noting that there have been no mechanical pulp exports to China, Indonesia or Taiwan, the next three largest mechanical pulp markets for New Zealand, since March 2006.
Sawn timber
Export volumes of sawn timber in the December 2006 quarter were down 5.1 percent from the September 2006 quarter to 5 222 000 cubic metres. As mentioned in the production section of this release, sawn timber production for the December quarter was also down on the September quarter, following the usual seasonal pattern.
Fibreboard
Export volumes of fibreboard for the December 2006 quarter were down 26.0 percent on the September 2006 quarter to 150 000 cubic metres. This change is similar to that between the December 2005 and December 2006 quarters and is also a result of lower production as outlined earlier in the release.
Table 2: Quarterly export volumes
| December 2006 quarter (000) |
Change from September 2006 quarter (%) |
Change from December 2005 quarter (%) | |
|---|---|---|---|
| Logs and poles (m3) | 1 689 | 13.0 | 17.4 |
| Sawn timber (m3) | 522 | –5.1 | 12.3 |
| Wood pulp (t) | 244 | 17.0 | 16.7 |
| Fibreboard (m3) | 150 | –26.0 | –21.7 |
| Plywood (m3) | 25 | 27.5 | –6.7 |
| Particleboard (m3) | 29 | 9.7 | 50.6 |
Table 3: Quarterly export values
| December 2006 quarter (NZ$000) |
Change from September 2006 quarter (%) |
Change from December 2005 quarter (%) | |
|---|---|---|---|
| Logs and poles | 177 337 | 16.9 | 43.8 |
| Sawn timber | 206 904 | –10.3 | 13.8 |
| Pulp | 176 306 | 10.0 | 50.9 |
| Fibreboard | 55 881 | –24.1 | –12.7 |
| Plywood | 29 884 | 0.9 | –1.7 |
| Particleboard | 13 411 | –3.2 | 34.7 |
Table 4: Annual exports
| Export volume | Export value | |||
|---|---|---|---|---|
| December 2006 year 000) |
Change from December 2005 year (%) |
December 2006 year (NZ$000) |
Change from December 2006 year 2(%) | |
| Logs and poles (m3) | 5 574 | 7.3 | 562 851 | 27.0 |
| Sawn timber (m3) | 1 961 | 8.8 | 809 094 | 12.0 |
| Wood pulp (t) | 838 | 0.0 | 584 930 | 28.3 |
| Paper and paperboard (t) | 594 | –11.9 | 524 368 | –2.4 |
| Panel products (m3) | 1 047 | 0.5 | 470 598 | –8.9 |
| Other forestry products | – | – | 547 767 | 22.3 |
| Total exports | – | – | 3 499 609 | 12.1 |
Imports3
The major change in import volumes for the year ended December 2006 was an increase in panel imports, up 50.7 percent. Most panel imports to New Zealand in the December 2006 year came from China (30.3 percent) and Australia (28.6 percent). The majority of the increase in panel imports between the December 2005 and December 2006 years also came from these two countries, with imports from China up 74.8 percent and those from Australia up 42.5 percent.
In the December 2006 year import values of paper and paperboard, and furniture and furniture parts also increased.
Import values of paper and paperboard were up 6.4 percent on the December 2005 year. The increase in imports over the 2006 year have come from Japan, Australia and China. Imports of paper and paperboard from Australia accounted for 42.6 percent of total paper and paperboard imports in the December 2006 year.
Furniture and furniture part import values in the December 2006 year were up 14.2 percent on the December 2005 year, mainly due to an increase in import values from China, up 25.6 percent. China also has the largest share of furniture and furniture part imports, 46.0 percent of the total value in the December 2006 year.
Table 5: Annual Imports
| Import volume | Import value | |||
|---|---|---|---|---|
| December 2006 year (000) |
Change from December 2005 year (%) |
December 2006 year (NZ$ 000) |
Change from December 2006 year (%) | |
| Logs and poles (m3) | 5 | –0.4 | 5 126 | 16.6 |
| Sawn timber (m3) | 54 | –7.4 | 61 252 | 6.1 |
| Wood pulp (t) | 6 | 50.7 | 6 177 | 47.3 |
| Paper and paperboard (t) | 483 | –2.4 | 703 805 | 6.4 |
| Panel products (m3) | 47 | 50.7 | 38 809 | 14.0 |
| Furniture and furniture parts | – | – | 236 128 | 14.2 |
| Other forestry products | – | – | 384 937 | 1.1 |
| Total imports | – | – | 1 436 233 | 6.4 |
Notes
1. All production figures in this release are provisional; all September 2006 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. Import values are the NZ$ cost of goods including insurance and freight to New Zealand (cif).
Published May 2007
A National exotic forest description as at 1 April 2006
The latest edition of MAF’s annual National Exotic Forest Desctiption will be released at the end of May 2007. To request a copy please email policy.publications @maf.govt.nz
Download accompanying tables as CVS Files
- Quarterly sawn timber production [5KB CSV]
- Annual sawn timber production [5KB CSV]
- Pulp production 5[KB CSV]
- Paper and paperboard production [5KB CSV]
- Panel production [30KB CSV]
- Roundwood removals [30KB CSV]
- Log exports [10KB CSV]
- Hardwood chip exports [5KB CSV]
- Softwood chip exports [5KB CSV]
- Sawn timber exports [10KB CSV]
- Mechanical pulp exports [10KB CSV]
- Chemical pulp exports [5KB CSV]
- Fibreboard exports [5KB CSV]
- Plywood exports [10KB CSV]
- Particleboard exports [5KB CSV]
- December year exports [5KB CSV]
- December year imports [15KB CSV]
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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