Report costs for logs and beef have pushed up general exports to a document $6 billion within the yr to June.
Beef exports reached a brand new excessive of $411m in June 2021, whereas exports for logs and wooden additionally reached a brand new excessive of $561m in June 2021.
That is a 17 p.c or $871 million enhance on the earlier yr.
New figures from Stats NZ present beef exports rose $31m to succeed in a brand new excessive of $411m in June 2021, in contrast with June 2020.
This enhance was amount pushed, with volumes up 8.5 p.c. The earlier excessive for beef export values was within the month of March 2020 ($405m).
Exports for logs and wooden reached a brand new excessive up $105m or 23 p.c from June 2020 to $561m in June 2021.
Stats NZ worldwide commerce supervisor Alasdair Allen stated the common worth of untreated log exports has been steadily rising from the low in July 2020 to succeed in $199 per cu/m in June 2021.
Forest House owners Affiliation president Phil Taylor stated demand is robust domestically but in addition internationally with elevated orders from China.
“Provide is considerably constrained and so consequently we have seen very sturdy pricing over the past 9 months.
“Publish Covid the availability chain has been considerably disrupted in order that’s created not solely delays however clearly very important prices.”
Taylor stated massive fires within the Pacific Northwest and down the West Coast of america and in Chile had affected shares, in addition to the spruce illness affecting forests in Europe.
“New Zealand has all the time been an excellent and efficient provide chain, so given the worldwide constraints China is New Zealand. So, with the sturdy demand it creates a traditional provide and demand imbalance pushing up the costs.”
Rising demand within the home market was preserving forest house owners and mills busy, he stated.
“We’re seeing an enormous demand from our home processors and our choice is to provide them first with our top quality logs.”
Earlier this yr there have been reviews of a large timber scarcity within the constructing sector, however Taylor stated there was loads of inventory.
“There’s a whole lot of misinformation in that area. Forty p.c of our 35 million cu/m goes into the home market.”
However the elevated costs and better export volumes weren’t essentially bringing in higher returns for some forest house owners.
“At a time once we’ve seen very excessive log costs, sadly, we have additionally seen very excessive freight costs … whereas we’re nonetheless having sturdy, sturdy costs, and it is a good time for us due to the excessive freight charges, that is taking a few of the margins away,” Taylor stated.