The world needs more trees – as the raw material for a wide range of valuable and sustainable products and to reduce carbon dioxide levels.
One leading analyst suggests[1] there will be a nearly three-fold increase in global demand for timber by 2050 from 2.2 billion cubic metres to 5.8 billion cubic metres.
Timber prices are also expected to increase.
Meeting this demand from sustainably produced plantation timber will require a large increase in the area planted. New Zealand has proven its capabilities for highly productive plantation forestry, particularly with radiata pine, but also with a range of other species. It has also developed sophisticated and large-scale wood processing capabilities, yet 60% of the timber produced in New Zealand continues to be exported as raw logs. Although a successful and growing industry, it currently produces around 35 million cubic metres per year or just 1.6% of global timber production.
There is plenty of untapped potential to grow more trees and process more wood products in New Zealand. This includes demand for further timber grown in Taranaki from existing wood processors plus continuing international demand for timber and wood products.
There is also market potential for biorefining and bioenergy products that will contribute to the transition of the Taranaki energy and manufacturing economy.
There is plenty of land in Taranaki (particularly in eastern Taranaki) where forestry may be the optimal land use while also contributing environmental benefits such as erosion control and reduced runoff.
Sector turnover and growth targets
The demand for local and exported wood products is increasing. It is expected that there will be a three-fold increase in global demand for timber by 2050, from 2.2 billion cubic meters to 5.8 billion cubic meters.
Increased future demand is also likely to result in increased prices for timber.
The Emissions Trading Scheme has created the opportunity to earn carbon units from new forest.
NOTE: All figures correct as of 2022
National exports of forestry and wood
$5.56b As of December 2020Value of log exports through Port Taranaki
$147m As of March 2020NZ as percentage of global timber production
1.6% Equivalent to 35 million cubic meters per yearPercentage of timber processed in NZ
40% There is a room for further local processingWondering if your land or business could diversify?
We can help you understand the opportunities that may be available for your land and your particular operation/circumstance. Whether it's initial advice, or pointing you in the right direction, we're happy to help.
Our blueprint for trees, their value chain, and the opportunity for Taranaki
This blueprint provides an overview for commercial production and processing of trees and their value chain in Taranaki, and an indication of potential returns.
Please note: This blueprint was produced in 2022.
Trees and their Value Chain Branching Out Event
Venture Taranaki's Branching Out project held an event in 2021 in which experts presented advice, essential information and the industry connections to support the community as they consider the viability of tree and fibre products for themselves here in Taranaki.
Presenters at the event included Taranakipine, the New Plymouth processor of plantation-grown Radiata Pine; a Forestry Advisor from Transglobal Connections; and SCION, the Crown Research Institute that specialises in research, science and technology development for the forestry, wood product, and other biomaterial sectors.
The experts shared how trees are currently utilised in Taranaki, the economic opportunities, an overview of carbon farming and the Emission Trading Schemes, and projected future tree and fibre products. Topics also covered trees’ biodiversity contributions and the options for trees to be a complementary addition to existing land-uses and enterprises.
You can find the contact details for the organisations and their presentations below.
Don Shearman - Land Services Manager, Taranaki Regional Council
Mike Strang - Forestry Advisor, Transglobal Connections Ltd
Rob McBrearty - Business Development Manager, Scion
Ben Collier - Collier Farms
Tom Boon - CEO Taranakipine and Woodspan Ltd
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