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NZ Government urged to stimulate domestic wood demand

The Government needs to stimulate domestic demand for wood to stop New Zealand forestry from being dangerously reliant on the Chinese log trade. Sources: Fairfax NZ News, Scoop.co.nz

Forestry consultant Peter Clark told an industry conference in Wellington that the industry needed investment, and should cultivate the local market first.

New Zealand exports about 70% of its logs to China, which Clark said was not a good strategy if a biosecurity risk emerged or the Chinese market faltered.

Like many speakers, Clark stressed the promise of processed wood and new types of building materials such as cross-laminated timber and “glulam”.

Companies investing in plant or innovation needed “a leg up”.

“This is risky stuff and I think we need a good domestic market for these innovators to get established . . . to test the product, to build it up to a level of scale before they can think of getting a big Chinese investor in to develop scale to market.

“Just spreading the word by telling the engineers it’s a good idea ain’t going to do it. You’ve got to have a catalyst, and I think a public building procurement program is the way to go.”

Red Stag Timber owner Martin Verry, who is calling for a “wood-first policy” to build a $120 million supermill, said it would give sawmillers certainty of supply.