The Government says primary industries will lift New Zealand out of recession before other parts of the world.
Forest product exports have fallen steeply since October last year as the global recession reduces overseas demand for paper and cardboard.
New Zealand exports the majority of its radiata pine sawn logs to mills in Asia.
Forestry Minister David Carter says demand from China has turned around within the past three - four weeks and the price should now stabilise.
Mr Carter says he believes New Zealand's general reliance on primary industries will help bring the country out of the economic downturn before other countries such as the United States.
He says overseas demand for agricultural products may have already passed its lowest point.