5 Mar 2010

More demand expected for export logs

12:55 pm on 5 March 2010

Forest industry representatives have heard that the outlook for New Zealand's export log trade is very positive and demand is likely to increase.

New Zealand forestry exports grew by more than 6% last year.

Bob Flynn from RISI told a forestry finance conference in Auckland that growth will continue, driven largely by the instatiable demand from China.

He also thinks there's also strong potential for sending more sawn timber to China.

Mr Flynn also says India is set to emerge as a much more significant log market in the longer term.

New Zealand already has a more than 80% share of that trade. While the volume is still relatively small, it's growing compared with China.