The forestry and logging industry is facing lower prices for their products, while sheep and beef farmers are getting higher prices for their stock, according to Stats NZ. Prices received for raw materials produced by the forestry and logging industry dropped in the September 2019 quarter by 9.1% due to low global demand for logs. Source: Timberbiz
By contrast, the prices received by sheep and beef farmers rose 7.6% due to higher prices paid by meat product manufacturers.
“The prices of logs for export dropped 21% in the September quarter, while prices in the domestic market were down 5.1%,” business prices manager Bryan Downes said.
“Domestic and export log prices don’t always move in line because of factors such as exchange rates, differing log grades and types, and market demand – for example, manufacturing activity can influence demand for timber pallets used for shipping goods.”
Trade data shows China is the largest consumer of New Zealand’s export logs with NZ$3.0 billion sent in 2019.
“The fall in log prices coincides with the US–China trade dispute and reports of growing log stockpiles in China,” Mr Downes said.
“At the same time, international demand for red meat has been rising, largely due to the African swine fever outbreak in China with reduced supplies of pork being substituted with alternative products.”
