Reassurance on logs

Press, 31 March 1981, Page 6

Reassurance on logs

PA Wellington There is no need for unnecessary pessimism about the future for New Zealand log and timber exports to Japan, said the Minister of Forests (Mr V. S. Young). He was commenting on reports from Tokyo that Japanese importers had cut the • prices and volumes of New Zealand logs and sawn timber. Mr Young said there had been a small decrease in the price of log exports equal to 2| pen cent or about $1.53 a cubic metre. The volume of log exports for the next three months would remain at the same level as for the last three months, although generally this level was about 60 per cent down on

the volume exported 12 months ago. The price of sawn timber exports for the next three months has been reduced by 10 per cent and the volume reduced by 50 per cent of the present level. Last year New Zealand exported about 336,000 cubic metres of sawn timber to Japan, compared with 305,000 cubic metres in 1979. Sawlog exports for the 12 months to December, 1980, were just over 803,000 cubic metres. • ."

“Naturally it is disappointing to see prices and volumes cut, but it is cet? tainly too soon < to start reading long-term implications for the future of our wood exports to Japan..

Clearly the surplus of lower priced North American timber on to the Japanese market has had a short term effect on New Zealand exports, but indications are that the market is starting to level out and we hope this will lead to a renewed demand for the New Zealand product.” Mr Young said New Zealand still remained a significant ■ timber exporter to Japan, and this was cause for confidence in the long term...viahility of the Japanese, market.

“Fortunately while this is only a short term setback? New Zealand has a resource which if necessary ‘it can leave standing in the forest for the future,” he said.