The Government and the forestry industry deny there is a long-term crisis in the forestry industry in New Zealand — even though log export prices are at a 14-month low and some workers here have been made redundant. Source: The Gisborne Herald
Several people saying firms have made lay-offs in the past week approached the Gisborne Herald. But the Ministry for Primary Industries is sticking by a report that indicates the forestry industry will more than double in value over the next 12 years.
The Future Capability Needs for the Primary Industries in New Zealand report, compiled by the Ministry of Primary Industries, said export values from forestry are forecast to rise from NZ$4.29 billion in 2012 to NZ$12 billion in 2025, and suggests the workforce will increase by more than 5000 workers in the same time frame.
The largest job growth in the forestry industry is expected for support and sales workers, technicians and trade workers, nonfarm managers, labourers, and transport and plant operators.
Associate Primary Industries Minister Jo Goodhew said the report was based on a long-term approach to an industry dealing with cyclical commodity prices.
“Forestry is a long-term game,” she said.
“Commercial forests take 28 years from seed to saw, and a lot can happen in that time. Commodity prices are usually cyclical in nature, and recently prices have been high.
“This Government’s long-term focus is to support the sector to transition towards high-value wood products, such as engineered timber.
“The Future Capability report takes a long-term view to 2025, and is based on the industry’s own strategy for growth. The report noted that more workers with formal post-school qualifications would be needed, with sector jobs projected to increase by 5300 over the next decade.”
China is Gisborne’s major log export market and Eastland Wood Council chief executive Trevor Helson said while there was a “slight recession” in China, which would continue for a while, the market would come back.
“In the past there have been cases where there has been slowdowns and the industry has laid people off because of that. But as soon as the market picks up, you take them all back again.
“The industry now works very hard to try to smooth that on the hardship side. You don’t just lay people off because this week you don’t have an order, so there is a concerted effort to smooth things over and make it easier.
“Things are slow but we work through these things.”
Lay-offs were generally a last resort, he said.
“If you have to, you have to. You don’t do it just because no trees have been cut this week.”
Log marshalling company C3 Ltd, who operate in Gisborne, declined to comment on staffing levels.
Forestry Industry Contractors Association spokesman John Stulen said while he had heard of “widespread” job losses in the woodlot sector, he had no knowledge of widespread lay-offs in the commercial sector.
“I know there are limits on production now but there’s no indication from China that there has been a structural change in China.
“The volumes have been higher than ever. “Given the amount of wood that has been going into China, it’s probably important that people diversify their markets a bit more.
“I have heard mention that Korea is still taking wood and people are now turning to India.”
A spokesman for FIRST Union said they had also heard “concerns” from forestry workers that lay-offs would be needed.
