Forestry has had a mixed reputation for its ability to provide growers a consistent return. This is because prices can fluctuate significantly which creates “an on again off again” rollercoaster ride for all involved.
Our industry has also had several examples of poor service delivery and some unprofessional operators.
At an international level NZ is generally a price taker (as opposed to a price maker) although in markets such as China we are a major softwood log supplier.
The NZ forest industry has had a questionable track record with how astute we have been in marketing of our wood products, which includes logs and lumber, which have consistently competed with each other in the same markets and we have struggled to manage wood flow. This has seen prices being driven up when demand is good and down when it is not.
Internationally, future wood demand and availability is consistently showing forests are being depleted at a far great rate than they are being planted. While the future for NZ forestry is extremely bright, we need to get smarter about how we are operating.