Forest exports likely to exceed targets

Press, Volume CX, Issue 32459, 20 November 1970, Page 5

Forest exports likely to exceed targets

Export earnings from forestry will reach at least $79.1m a year by 1973, and §148.2m by 1979, says the annual report of the Forestry Development Council, which was presented recently to the National Development Council. Exports in 1969 were worth $60.9m, a record.

These estimates are well in excess of the targets set by the National Development Conference last year—s72.sm. by 1973, and $96.2m. by 1979. But the report expresses ' concern that the high level of log exports at present could ! have an adverse effect on the achievement of targets for the more valuable processed wood-products. Log exports will need to be reduced from the present level of 64m. cubic feet a year to 15m. cu. ft by 1979 if there is to be sufficient wood; available to meet all the demands of the processing industries, the report says. Targets set by the N.D.C. for log exports were 50m. cu. ft for 1973 and 25m. cu. ft for 1979, but expansion plans announced by the wood processing industries since then indicate much more raw material will be needed in New Zealand. The expansion plans include:

The production of 200,000 more tons of pulp, including 100,000 tons for paper production, by N.Z. Forest Products, Ltd. !The production of another 105,000 tons of kraft pulp 1 for sale, and the expansion of newsprint pro- ; _duction from 200,000 to 340,000 tons a year by Tasman Pulp and Paper. Large-scale investment in plywood plants. A new particle board factory to be built by Henderson

and Pollard, Ltd, at a cost in excess of s2m.

The taking up of unused capacity in < new particle board factory at Taupo by Fletcher Timber Company, Ltd, at a cost of slm. The development in Britain of a market for radiata! pine after a trial ship-! ment worth $500,000 in; April, 1970. An integrated sawmill and' pulp mill will be established near Napier because, of a; recent decision to sell 320 m. cu. ft. of wood from the Kaingaroa State Forest. It is expected to earn sl4m. a year when in full production which will increase the export earnings by 1979 even further.