New Zealand Herald
Tuesday November 04, 2003
By PAM GRAHAM
A rise in prices in New Zealand's log export markets is starting to counter the impact of the high kiwi dollar and rising freight rates.
Margins for A-grade unpruned logs in New Zealand dollar terms plunged 61 per cent between July 2002 and July 2003, according to an analysis provided by Evergreen Forests chief executive Mark Bogle at the company's annual meeting this week.
The margin on pruned logs fell 36 per cent in the same period.
The squeeze was all down to rises in the New Zealand dollar and shipping costs.
The higher dollar cuts returns because logs are sold in US dollars and shipping costs have been rising because China's booming import and export trade has reduced the supply of ships.