9 January 2012The four months to June 2011 show a 15% drop in sales. That contraction is very sudden and historically, very large.
NZ Exports of Sawn Timber
Annualised it means that the cashflow from exports has dropped by $138 million. At the same time, we calculate, the total cost of purchasing logs to be cut for export, would have actually increased (due to price increases) despite less production. Given that other factors of production would have been inflating at an average of 5%, the shrinkage in cash flow would have...