THE TIMBER INDUSTRY.

New Zealand Herald, Volume LXIV, Issue 19738, 10 September 1927, Page 6

THE TIMBER INDUSTRY.

REACTIONS OF DEPRESSION. / ' ~~ BETTER METHODS ADOPTED. REDUCTION OF HOUSE BUILDING REVIEW BY FOREST SERVICE. Following on a record cut and a slump in sales of New Zealand timber—due partly to foreign competition —the New Zealand yards and mills are carrying heavy stocks. "The decline in demand," says the annual report of the Forest Service, "has to some extent been of indirect benefit to both the industry and to the consumer. Hitherto a large amount of timber has been sold green off the saw to.go immediately into use. To-day mills are carrying stocks previously unthought of, and, with ample supplies of seasoned timber to draw upon, users are accepting sap grades which would otherwise be unacceptable. Recognising this new outlet for their sap grades, operators are endeavouring to establish a permanent trade in seasoned timber." While the Government Statistician reports for 1525-26 the record cut (since 1908) of 353,225.000 ft. from all mills, the figures from mills cutting State forest timber tell a different tale in 1926-27, as the cut fell from 79,009,000 ft. (in the preceding year), to 64,639,000 ft. The Forest Bervi ce's receipts from timber licences fell from £130,132 to £103,524; and the receipts from sale of timber decreased by £28,440, from £80,565 to £52,125. The total receipts of the Forest Service were £161,469 in 1924-25, £152,550 in 1925-26, and £128,560 in 1926-27, a decrease of £23,984, corresponding with the abovegtated fall in timber sales. Diminution of Totara. Considering timber production for the period 1886 to 1926, the Auckland Province leads. "Auckland and Rotorua regions combined, together with Gisborne (i.e., Auckland Province), not only maintained the premier position, but also (says the Forest Service) increased their cut over that for the previous reporting period (i.e., .the year ended March 31, 1925). Westland, as in the previous year, holds second place, and is assured of this position for some' time to come, now that rail connection is available between the east and west coasts of the South Island. The Wellington district again showed an appreciable^decrease, as in previous years, indicating the depletion of the easily accessible Main Trunk line forests. "With the -exceptions of kauri, t°tara and insignis pine, the production of all species during the vear ended March 31, 1926, was greater than for the preceding period. The decreased production of totara is especially noticeable, the output amounting to only 14 million feet b.m., compared With- 18i million feet cut in the year ended March 31. 1925, equivalent to s reduction of 24 per co.nt. The principal increases included 9,000,000 ft. of white pine and 4,000,000 ft. of matai. Hardwoods still supply less than 3 per cent, of the ivnnual cui." The most promising hardwood appears to be beech, which is considerably cut in Otago and Southland. Severe Decline in Exports. Turning agaiu to the Goverment Statistician's figure for 1925-26, the shadow of coming' events is clearly shown in the export sectipn. It was the poorest export of .timber for 26 years. The decrease was about ten million feet and the decrease in white pine (kahikatea) alone almost amounted to that figure. pine "received the severest set-back" in its history. In the Australian market North American and Baltic timbers are competing with white pine and also with rimu. The export value of rimu was 18s per 100 ft. b.m., but to compete with these timbers on a price basis "the f.o-b. price of rimu in New Zealand would require to be from 14s 6d to 15s 6d per 100 ft." The abnormal export of kauri in 1925 was due to "the shipment of a quantity of sapgrade timber, which was moving very slowly on the domestic market." As to beech, "a re%'ision of the New Zealand grading system and a detailed study of the export market requirements would assist materially in securing a more balanced utilisation of the products of the log and in widening the avenues of utilisation for this valuable hardwood." Beech is the only New Zealand timber that increased its export in 1926. Competitive Imports. . "Following the usual business cycle, the boom years of 1919-25 are being succeeded *by a depression in the timber trade," say's the report. "Surface indications point to increased importations as the responsible factor. They have, it is true, ' aggravated the position, but to arrive at a satisfactory explanation it is necessary to make an analysis of the underlying trend. / "Since building operations absorb from 50 to 45 per cent, of all softwoods consumed, the building ratio (i.e., the number of persons per dwelling) is one of the best barometers of business for the timber trades. ' An examination of Government statistics bearing upon this question indicates that, except for a few exceptional localities such as Wellington, the housing ratio is lower than it has ever been previously in the history of the country. In other words, the houseshortage has, generally speaking, been overcome—a fact which is confirmed by the increasing number of houses to let, etc. The keen demand for timber experienced in the early post-war period has, therefore, receded and a period of readjustment has been forced upon the industry. Eliminating the Inefficient. "Attracted by the prices, good demand and quick sales of the post-war period, many new operators entered into the business and the trade of old-established millers rapidly extended. Withal, this expansion was naturally accompanied by co-operative marketing and price-fixing agreements. The question of immediate importance is: How can the industry be best established ? The solution of the problem is already apparent. Pricecutting is in vogue on the timber markets and this ultimately will serve to eliminate the more inefficient operators and enable the industry fco reorient itself to meet the changing demands of the market, especially in competing with imported softwoods. "It is to be noted that the enormous increase in the number of ferro-concrete buildings that are being erected, especially in the larger centres, cannot, as is popularly supposed, be regarded as a detriment to the timber trade as it applies to the use of New Zealand timbers. As a matter of fact, there is more 0.8. and inferior timber used in the construction of a ferro-concrete building than could possibly he used in a wooden building of the same dimensions, because in the latter, under the existing by-laws, a very large, proportion would be heartwood. It is therefore submitted that the modern practice of concrete building is an advantage to the utilisation of our forests;"