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NZ Forestry Forestry has a very important place in the economy of New Zealand. Figures provided by MAF show that its importance should increase significantly in the near future. Most of the production forests in New Zealand consist of plantations of introduced, coniferous softwood species, which cover 6.4 percent of the land area of New Zealand - around 1.7 million hectares.
About 90 percent of these plantations consist of radiata pine which grows quickly in New Zealand - the average age at harvest is 28 years. At present, most of the plantations in New Zealand are relatively young - 60 percent are less than 16 years old. This means that harvestable volumes will increase substantially in the next decade.
These plantations are typically managed reasonably intensively. As an example, 62 percent of the planted forest has been pruned to produce a section of knot free timber.
Current Economic Effects A Cable Hauler logging in Mangatu Forest near Gisborne. Logging is predicted to increase significantly in the East Coast area and will add significantly to employment levels and generally provide a boost to the local economy.
The Forestry Industry is currently a very significant contributor to the New Zealand economy.
For instance :
- 18.4 million cubic metres of wood was harvested from New Zealand's forests in 2000 (up 16.2 percent on 1999). 11.0 million cubic metres was processed in New Zealand in 1999.
- The roundwood equivalent of 12.1 million cubic metres was exported in 2000 (up 12 percent from 1999).
- 3.9 percent of GDP was created by the industry in 1999.
- Forestry earned $2.8 billion in 2000 - up from NZ$2.5 billion in 1999 (an increase of 18.7 percent).
- Forestry accounted for 12.3 percent of the total exports from New Zealand in 2000.
- Forestry employed 21,360 people in 1999, 1.5 percent of the workforce.
The Future Wood being loaded on board ship in Picton for export. These logs are destined for India, a relatively new market for New Zealand radiata pine.
The future for the New Zealand Forest Industry is even brighter.
New Zealand is not currently significant in the world market. It produces around 1.0 percent of the total world supply of industrial wood and 1.2 percent of all forest products.
However, New Zealand forestry has huge potential. By the year 2010, the New Zealand Forest Industry could;
Extend over 2.1 million hectares (8 percent of the total land area of New Zealand). Harvest 30 million cubic metres of wood per year. - Produce 1.9 percent of the world supply of industrial wood.
Have invested another $3 billion in new wood processing plants.
Increase export earnings by $5 billion per year.
Provide jobs for an additional 35,000 people.
THE NZ TRANSPORT SCENE
 The following section describes the Log Transport business and how it compares with the General Freight business in New Zealand. Log Transport
The transport of logs is a very specialised business. This is evident from the fact that there has been virtually no penetration of this industry by the large General Freight sector of the Transport industry. The carriage of logs is characterised by:
- A small number of clients. Most of the wood in New Zealand is carted on behalf of a very small number of large forestry corporates.
- Harsh work environment.
- Specialised equipment required for a unique task. For instance, access constraints mean that trailers must be carried on the truck to provide traction on roads which are often muddy.
- High Capital Cost (for specialised equipment).
- General Freight
- Very large numbers of clients.
- Comparatively clean work environment.
- General purpose equipment carrying a wide variety of products.
- Low Entry Cost for general purpose equipment.
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NZ Forestry