It’s tough out there

There is no denying that things are tough in the forest industry just now. Prices for logs and processed wood products have been hit by the appreciating New Zealand dollar, increased supply from competitors, increased freight costs, and slow downs in key markets. For those involved in harvesting, processing and marketing forest products, business conditions are as difficult as they have been at any time in the past couple of decades.

Peter Clark, CEO of PF Olsen & Co, New Zealand’s largest forest consultancy, agrees the industry is certainly in a trough, brought about by the convergence of a number of factors.

Looking forward he believes there are several factors to be aware of for the future:
Need for general world economic recovery. For a sustained improvement in the industry’s fortunes, there needs to be a general world economic recovery to give our key Asian markets (Korea and Japan) confidence to invest in expanding infrastructure, and increase wood consumption.

Download To Read Full Newsletter