Lucrative log trade with Japan suspended
PA Wellington New Zealand’s lucrative log trade with Japan has been suspended after a breakdown in negotiations between Japanese buyers and the New Zealand Forest Service. The $49 million trade had been halted after the Japanese negotiators sought a reduction in the price of New Zealand logs, during talks with exporters in Auckland this week, said the Deputy Director-General of the Forest Service (Mr A. Kirkland) yesterday. The Forest Service and New Zealand Forest Products refused to accept the lower price, preferring to suspend exports. The problem was an oversupply on the Japanese market, Mr Kirkland said./ Japan draws its softwood supplies from North America, Russia, Chile and New Zealand.
The Japanese market is a particularly important one not only for the major log exporters such as the Forest Service, Forest Products, Fletcher Timber, and Odlins, but also for small woodlot owners who get the best price for their product in Japan.
In the year to June 30, New Zealand exported 941,000 cu m of logs to Japan, worth $48.8 million. New Zealand’s total log export trade is worth $62 million annually, making the Japanese market particularly important. In addition, the price for logs sold to Japan is several times greater than local industry has been able to pay. The good return has enabled exporters to generate a cash flow back into forestry development. It is believed that negotiations on sawn timber exports are also running into problems, and again the reason for the Japanese reluctance to pay New Zealand’s prices stems from an over-supply of. softwood. In the year to June, sawn timber to Japan accounted for $29.5 million in export earnings, almost half the total of exported sawn timber.
The president of the New Zealand Sawmillers’ Federation (Mr L. M. Gillions) said he was unable to comment at this stage on the suspension of trade and its effect on the federation until he knew more about the negotiations. No logs are exported from Canterbury to Japan. -
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Press, 20 September 1980, Page 2
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334Lucrative log trade with Japan suspended Press, 20 September 1980, Page 2
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