NZ Logger February 2021

Page 6

forest talk

Forestry exports on road to recovery FORESTRY MINISTER, STUART NASH, SAYS forestry exports are showing good signs of recovery. “Strong demand for logs from China and for sawn timber from the United States is driving recovery in our forestry exports,” he says. “Exports are expected to increase by eight percent to almost $6 billion for the year ending June 2021. This reflects the resilience and hard work of our forestry sector, which should be commended,” he adds. This is on the back of the latest Situation and Outlook for Primary Industries (SOPI) report which overall reflects bright economic prospects for the primary sector despite the significant challenges from COVID-19, according to Agriculture, Trade and Export Growth Minister, Damien O’Connor. “The latest SOPI report forecasts food and fibre export revenue of more than $47.5 billion for the year ending June 2021, and a record $49.2 billion the following year,” says Mr O’Connor. “This strong performance is testament to the sector’s ability to adapt to keep businesses operating and workers in jobs. Producers are working to keep staff and communities safe from COVID, and provide the food and fibre products needed at home and abroad. Our primary sector can be proud of the way it has responded as part of our broader community. A good performer this year included forestry’s cousin, the horticulture sector. “Its export revenue is forecast to hit nearly $7.1 billion, an increase of 8.9 percent from the previous year. It’s driven by successful harvests in early 2020 and continued strong demand for our fresh fruit and wine.

“Further increases in export revenue of 5.3 percent are expected for the arable sector for the year ending June 2021, on the back of a bumper 23 percent increase the previous year.” Mr O’Connor says export revenue for some sectors is forecast to drop for the year to June 2021 but is expected to bounce back stronger the following year. “Dairy export revenue is forecasted to decrease 4.6 percent to $19.2 billion for the year to June 2021, driven by weaker global dairy prices, as markets continue to deal with the impacts from COVID-19,” he says. “However, this should be offset by high demand for our dairy products, particularly from China, to support strong sector profitability over the medium-term, with export revenue expected to reach $20.1 billion in the year ending June 2022. “Meat and wool export revenue is expected to decrease 8 percent to $9.8 billion for the year ending June 2021, mostly due to food service closures from COVID-19, and competition from poultry and other lower priced proteins. It’s expected to rebound to almost $10.1 billion the following year.” Oceans and Fisheries Minister, David Parker, says COVID-19 continues to affect seafood exports, but this is expected to be short-term. “The seafood sector continues to bear significant impacts from the international downturn in hospitality, tourism and dining out due to lockdowns caused by COVID-19,” he says. Mr O’Connor says while the impacts from COVID-19 will be seen for some time, New Zealand is well placed to recover. “Our Fit for

Forestry Minister, Stuart Nash. a Better World – Accelerating our Economic Recovery roadmap launched earlier this year will guide our recovery,” he says. “It aims to add $44 billion in export earnings over the next decade through diversified, higher-value product offerings, with strong environmental credentials, which will also create jobs. “In November New Zealand signed the Regional Comprehensive Economic Partnership (RCEP) Free Trade Agreement (FTA), the largest free trade agreement in the world. It will reduce non-tariff barriers, make trade simpler and reduce compliance costs for our exporters. This should help to further boost our food and fibre exports and our bottom line. “New Zealand’s success in combatting COVID-19 – along with our solid elimination strategy – provides a good base from which to build back better than before,” he adds. NZL

First increase in seven years FOR THE FIRST TIME SINCE THE LEVY WAS INTRODUCED BY A forest grower referendum in 2013, Directors of the Forest Growers Levy Trust (FGLT) have raised the rate on Harvested Wood Materials. The Chair of the Levy Trust, Geoff Thompson, says clear support for the value of the investment led to the decision to raise the levy from 27 cents a tonne to 33 cents. “We had overwhelming support in our levy referendum at the beginning of last year, from small- and large-scale foresters, even more than when the levy was first voted on,” he says. The FGLT was set up under the Commodity Levies Act, where producers of a commodity can vote to impose a levy on production for commongood projects. It has raised about $10 million per year in recent years. Geoff says levy income took a severe hit with the spread of Covid-19

4 NZ LOGGER | February 2021

and the lockdown in New Zealand, requiring a fresh look at how spending commitments could be met, and the prudence of replenishing reserves. “Our main priority is research, to fund projects which increase forest productivity, whether in large forests or in farm woodlots. We fund major investments in harvesting technology, forest management and mechanisation. “Another priority is the Forest Industry Safety Council (FISC) and its projects to make forestry a safer place to work after the horror stories early in the decade. We still unfortunately aren’t at zero fatalities and serious injuries, which is the aim, but this year we’ve had the lowest fatality rate in six years,” he adds. “Biosecurity is no less vital for us than for any other part of the primary sector. A biosecurity officer is now part of the FGLT Secretariat’s


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