THE ADDED VALUE OPPORTUNITY
New Zealand’s wood harvest is going to almost double over 
the next couple of decades. The more logs that can be further
processed before export will, quite literally, ‘add value’
to that increased harvest.
The existing mix of processed - or 'value chain' forest
products from New Zealand includes:
• Sawn timber
• Wood chips and pulp
• ‘Squared’ logs and treated poles
• Newsprint and other paper products
• Fibreboard, plywood, veneers and
particleboard
• Wooden furniture and components
• Engineered products such as laminated
beams and LVL
• Finger-jointed mouldings, profiles and edge
glued panels.
To process the volume of wood coming on stream and to continue producing the current range of products, the Ministry of Agriculture and Forestry estimates that the industry will need to invest almost NZ$9 billion before 2025 in new processing facilities.
New facilities could include:
• 100 medium-sized sawmills
• 90 remanufacturing plants
• A mix of either 20 panelboard mills or six pulp
and paper plants
The industry will also need to:
• Devise new wood-based products and technologies
• Develop international markets for this broader range of
product by:
- being cost-competitive
- overcoming tariff and non-tariff barriers in new
markets
- implementing an effective, pan-industry strategic
marketing programme
This is the vision for the industry and it demonstrates the potential value to the national economy:
2004 2005
$5 billion outputs $20 billion outputs
4% GDP 14% GDP
23,000 employed 60,000 employed
(100,000 indirectly) (250,000 indirectly)
$3.3 billion exports $14 billion exports
3rd largest exporter Largest exporter
Top 20 global suppliers Top 5 global suppliers
1.8 million hectares 3.5 – 4 million hectares
21 million m3 harvest 40 million m3 harvest
$100 million supporting $1 billion supporting
technologies industry technologies industry
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