Forest Sector Accord and Industry Transformation Plan

NZTIF supports a proposal for a pan-forest industry accord. 

In April 2020, NZTIF circulated this as an initiative to avoid pending government regulation that could impose restrictions on log export volumes and caps on log price.  

The proposal was intended to provide stable log supply and sustainable pricing to the domestic milling and processing industry while maintaining an unrestricted export market for forest owners.

The proposal addressed the two serious issues faced by the New Zealand wood processing sector: that of logs being in short supply and the escalation of domestic log prices – both driven by competition for logs from export markets, predominantly from China. 

A set of principles is now being agreed between the NZ Farm Foresters Association, NZ Forest Owners Association, NZ Timber Industry Federation and Wood Processors and Manufacturers Association.

This agreement will support the New Zealand forestry and wood processing supply chain to ensure the sector can emerge from the global pandemic in as robust a state as possible.  Ministry of Primary Industries is also considering its position as a party to these principles.

While the principles primarily address the challenges that have to be met in the post Covid-19 period, there is a longer-term strategy being developed known as the Industry Transformation Plan (ITP). 

The forestry ITP will exist alongside plans for other sectors including Food and Beverage and Digital.

Work on the ITP is in its early stages but the overall aspiration will be how the sector can increase domestic processing of logs and add value to volume.