The Ministry of Agriculture and Forestry (MAF)says the total value of forestry exports increased by $0.8 billion over the last year to $4.4 billion.
The forestry production and trade figures are from the March 2011 quarter.
The figures show 1.7 million cubic metres of logs were exported to China during the quarter, a rise of 44.5% on the same time last year.
MAF says the demand for logs in China is because of strong economic growth and a reduction in the availability of logs from the country's traditional supplier, Russia.
The figures also indicate demand for logs in India is approaching that of South Korea, which is New Zealand's second largest log export market.
Overall, 3.1 million cubic metres of logs were exported in the quarter which accounted for half the estimated harvest.