Private vs. Government
Since 1985, records have shown fluctuations in privately owned plantation of trees, and a total cease of all government funded planting after 1990. The government handed over all responsibility of the forestry industry in New Zealand to private companies, and stopped all export incentives [Rhodes, 2002]. After that period, the majority of hectares of tree plantations increased over a period of 5 years, between 1993 and 1998 [figure 1]. Following the assumed average of 30 years before radiata pine (the main export of New Zealand) is harvested, bulk exportation will occur between 2023 and 2028 [MAF, 2010]. This will provide the industry with an increase in returns on the investments, but could also affect exportation after this time, as there will be less regions in prime harvesting condition [MAF, 2010][figure 2].
Figure 2: Harvesting of Wood at age 30 [MAF, 2010]
Economy
Author: Melanie Husband
Predictions and Contributing Factors
In the forestry industry, many factors have been attributed to causing fluctuations within global timber markets, and the future is somewhat unpredictable and also unstable [Campbell Global, 2015]. However, studies conducted specifically on the United States timber industry, have predicted linear increases in production of solid-sawn and veneer products [Ince, 2010]. While these results are not directly linked to the New Zealand timber industry, it is likely that they would follow a path parallel to the United States, and other world industry leaders [NZ Treasury, 2012]. A major crash in the global timber markets could have devastating effects on New Zealand exports, as countries such as China and the United States hold most of the power in timber markets [NZ Treasury, 2012].
Politics
In 2013, 10 ‘blocks’ (more than 14,000 hectares) of forestry across the country were sold to the People’s Republic of China. Prime Minister John Key was supportive of selling land in these regions, in hope that China would help with an increase in returns from the investment [Sabin, 2013]. The regions sold were previously owned by the New Zealand Superannuation Fund, an investment to help pay for New Zealander’s retirement [Sabin, 2013].
Figure 1: Government and Private new planting (hectares) [Rhodes, 2002]
Future Success
The future of success in the forestry industry depends on several factors, including age of trees, predicted harvesting age of trees, the availability and use of timber in the future, and owners of sectors around New Zealand. If timber stays the most viable option for construction worldwide, plantations need to be protected, more skilled labourers becoming available, research and scientific developments occurring into the future, and improvements on safety and work practices [Rhodes, 2002].