Forestry production and trade for the June 2007 quarter1
Statistical Release 03/2007, September 2007
ISSN: 0114-5371
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Overview
The forest industry reported an increase in production for all forestry products during the June 2007 quarter.
An increase in log prices earlier in the year led to increased harvesting activity and log exports in the June 2007 quarter. Roundwood removals increased 12.9 percent, after decreasing for the past two quarters. Most of the increase in log exports was due to the high volume of logs exported in April. Log prices to forest owners declined as the June quarter progressed because of a decrease in international log prices, escalating bulk shipping rates and a strengthening New Zealand dollar. As a result of this decline, the volume of logs exported in May and June were not as high as in April.
Production
Between the March 2007 and June 2007 quarters production of all forestry products increased. Major changes in production between the June 2006 and June 2007 quarters were increases in the production of veneer, plywood and particleboard, and a decrease in fibreboard production. The decrease in fibreboard production was mostly a result of the closure of a fibreboard mill in September 2006 following a fire.
Roundwood
June 2007 quarter roundwood removals were up 12.9 percent to 5.3 million cubic metres on the March 2007 quarter. Roundwood removals for the June 2007 quarter were also up on the June 2006 quarter by 8.4 percent. Much of the increase in roundwood removals came from increased log export volumes.
Paper and paperboard
The production of paper and paperboard in the June 2007 quarter was up 13.2 percent on the March 2007 quarter, reaching 226 000 tonnes. There was a decrease of 3.0 percent on the June 2006 quarter and a decrease of 10.1 percent on the June 2006 year.
Fibreboard
The volume of fibreboard produced in the June 2007 quarter was up 12.6 percent on the March 2007 quarter, but it was down 16.8 percent on the previous June quarter.
Veneer
The volume of veneer produced in the June 2007 quarter was up 19.0 percent on the March 2007 quarter and up 13.3 percent on the June 2006 quarter.
Table 1: Production volumes
| June 2007 quarter (000) |
Change from March 2007 quarter (%) |
Change from June 2006 quarter (%) |
June 2007 year (000) |
Change from June 2006 year (%) | |
|---|---|---|---|---|---|
| Roundwood (m3) | 5 263 | 12.9 | 8.4 | 20 192 | 7.7 |
| Sawn timber (m3) | 1 125 | 11.0 | 5.3 | 4 378 | 5.2 |
| Wood pulp (t) | 386 | 2.0 | 1.6 | 1 528 | – 1.3 |
| Paper and paperboard (t) | 226 | 13.2 | – 3.0 | 842 | – 10.1 |
| Fibreboard (m3) | 197 | 12.6 | – 16.8 | 790 | – 14.5 |
| Veneer (m3) | 189 | 19.0 | 13.3 | 715 | 10.5 |
| Plywood (m3) | 115 | 19.5 | 12.7 | 427 | 7.7 |
| Particleboard (m3) | 67 | 5.0 | 14.1 | 262 | 13.0 |
Exports2
The volume and value of all forestry products exported in the June 2007 quarter were up compared to exports during the March 2007 quarter. The most significant increases were recorded for exports in logs and poles and sawn timber.
In comparison to the same quarter last year, June 2007 quarter export volumes increased for most products except sawn timber (down 1 percent) and fibreboard (down 26.8 percent). Much of the reduction in fibreboard exports was due to reduced production after a fire closed a fibreboard mill in September 2006. This accounted for a 10 percent and 21.5 percent loss of export value of sawn timber and fibreboard respectively.
Logs and poles
The volume of logs and poles exported during the June 2007 quarter increased 26.2 percent to 1.7 million cubic metres. The value of logs and poles exported over the quarter was NZ$189 million, up 15.4 percent on the March 2007 quarter and 33.3 percent on the June 2006 quarter.
Export volumes of logs and poles for the year ended June 2007 rose 20.6 percent on the year ended June 2006 (6.3 million cubic metres) compared with the year ended June 2006 (5.2 million cubic metres). Over the same period, export values increased 43.1 percent. These results reflect improved New Zealand dollar log prices during the first quarter of 2007. Since this time New Zealand dollar log prices have eased and bulk shipping costs have increased.
The volume of logs and poles exported to New Zealand’s two main markets, Korea and China, increased in the June 2007 quarter, up 5.4 and 85.3 percent respectively on the June 2006 quarter. Over the period June 2006 to June 2007, log and pole exports to Korea increased 14.3 percent (up 423 000 cubic metres), while exports to China rose 61.2 percent (up 465 000 cubic metres).
Sawn timber
Sawn timber export volumes in the June 2007 quarter were 479 000 cubic metres, a rise of 24.9 percent on export volumes for the March 2007 quarter and a loss of 1 percent on volumes for the June 2006 quarter. Export values of sawn timber dropped 10 percent between the June 2006 and June 2007 quarters.
Wood pulp
Wood pulp export volumes and values in the June 2007 quarter (197 000 tonnes, valuing NZ$143 million) were up slightly on the March 2007 quarter, but increased by 20.5 percent in volume and 23.5 percent in value on the June 2006 quarter. The small change from the previous quarter can be attributed to the increase in volume and value of chemical wood pulp exports (up 5 and 2 percent respectively), offset by a decline in volume and value for mechanical wood pulp exports (down 11 and 13 percent respectively).
Over the year June 2006 to June 2007, wood pulp exports accounted for the second largest movement in export value (up 31.5 percent) at NZ$622 million, following logs and poles (43.1 percent) at NZ$682 million.
Table 2: Quarterly export volumes
| June 2007 quarter (000) |
Change from March 2007 quarter (%) |
Change from June 2006 quarter (%) | |
|---|---|---|---|
| Logs and poles (m3) | 1 718 | 26.2 | 20.6 |
| Sawn timber (m3) | 479 | 24.9 | – 1.0 |
| Wood pulp (t) | 197 | 1.3 | 20.5 |
| Fibreboard (m3) | 134 | 10.5 | – 26.8 |
| Plywood (m3) | 20 | 29.7 | 55.2 |
| Particleboard (m3) | 34 | 18.1 | 30.7 |
Table 3: Quarterly export values
| June 2007 quarter (NZ$ 000) |
Change from March 2007 quarter (%) |
Change from June 2006 quarter (%) |
|
|---|---|---|---|
| Logs and poles | 188 598 | 15.4 | 33.3 |
| Sawn timber | 190 516 | 21.8 | – 10.0 |
| Wood pulp | 142 747 | 0.3 | 23.5 |
| Fibreboard | 52 145 | 11.6 | – 21.5 |
| Plywood | 27 211 | 2.7 | 14.6 |
| Particleboard | 15 392 | 22.3 | 41.2 |
Table 4: Annual exports
| Export volume | Export value | ||||
|---|---|---|---|---|---|
| June 2007 year (000) |
Change from June 2006 year (%) |
|
June 2007 year (NZ$ 000) |
Change from June 2006 year (%) | |
| Logs and poles (m3) | 6 267 | 20.6 | 681 594 | 43.1 | |
| Sawn timber (m3) | 1 934 | 5.4 | 783 502 | 5.1 | |
| Wood pulp (t) | 844 | 6.2 | 621 785 | 31.5 | |
| Paper and paperboard (t) | 537 | – 18.7 | 497 991 | – 6.2 | |
| Panel products (m3) | 958 | – 9.2 | 444 004 | – 7.9 | |
| Other forestry products | – | – | 563 551 | 16.1 | |
| Total exports | – | – | 3 592 423 | 12.5 | |
Imports3
In the June 2007 year, import volumes increased for sawn timber (up 0.9 percent), wood pulp (up 20.1 percent) and panel products (up 64.0 percent) from the June 2006 year, while logs and poles (down 24.6 percent) and paper and paperboard (down 0.8 percent) decreased.
The value of all forestry products imported in the June 2007 year rose 3.4 percent from the June 2006 year to NZ$1.4 billion. The value of New Zealand’s largest imported forestry product, paper and paperboard, increased slightly (1.7 percent) on the June 2006 year at NZ$691 million.
| Import volume | Import value | ||||
|---|---|---|---|---|---|
| June 2007 year (000) |
Change from June 2006 year (%) |
|
June 2007 year (NZ$ 000) |
Change from June 2006 year (%) | |
| Logs and poles (m3) | 5 | – 24.6 | 4 331 | – 24.1 | |
| Sawn timber (m3) | 54 | 0.9 | 64 139 | 12.1 | |
| Wood pulp (t) | 7 | 20.1 | 7 820 | 15.0 | |
| Paper and paperboard (t) | 483 | – 0.8 | 691 492 | 1.7 | |
| Panel products (m3) | 59 | 64.0 | 45 069 | 31.3 | |
| Furniture and furniture parts | – | – | 231 927 | 2.1 | |
| Other forestry products | – | – | 396 700 | 3.7 | |
| Total imports | – | – | 1 441 478 | 3.4 | |
Notes
- All production figures in this release are provisional; all June 2007 trade figures are provisional.
- Export values are NZ$ free on board (the value of goods at New Zealand ports before export, includes cost of transport to port).
- Import values are the NZ$ cost of goods including insurance and freight to New Zealand (cif).
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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