New Zealand Expects Increased Value of Wood Exports
Copyright © 2000, Xinhua News Agency
June 30, 2000
WELLINGTON (June 30) XINHUA - The value of exported wood products of New Zealand is expected to increase by more than 50 percent during the next four years as volumes continue to increase from more forests coming into production.
According to the latest forecast report issued by the New Zealand Agriculture and Forestry Ministry, the recovery of the Republic of Korea, which is a main importer of New Zealand wood products, has been stronger than anticipated, with increased activity from consumption rather than log-stock replenishment.
It also predicts an increasing potential to lift log sales to the United States.
The Chinese market for New Zealand logs, it said, could see a significant growth as well.
"High transport costs for Russian logs into South China will make New Zealand logs more competitive in that region, but the potential in China would remain a marketing challenge, " the ministry said in the report.
The forecast shows that prices for logs will plateau in the next and the following years and then hold steady because of increased supply.
New Zealand's forest products are important earners of overseas funds.
According to statistics for 1997, New Zealand exports of forest products were valued at about 2.4 billion NZ dollars (1.13 billion U.S. dollars). Japan, Australia and the Republic of Korea are the main buyers.