Is the world oversupplied with wood?
The market outlook for wood from New Zealand’s forests, especially the clear wood we produce from our pruned trees, is extremely positive. Globally supply is determined more by factors such as log price, proximity to transport infrastructure and governments’ environmental policies than it is by growth of trees. New Zealand is in an excellent position as it is a low cost producer, with forests grown in an environmentally sustainable manner close to shipping ports. It can therefore continue to supply logs profitably when other countries cannot afford to do so. New Zealand needs to continue to develop its markets and its processing industry so that it can get the maximum return from its forests.
