Sawn Timber Exports Struggle

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 4mths4mths% Jun-10Jun-11Change Australia68.457.6-15.79 United States62.546.1-26.24 Japan 14.910.5-29.53 China/Hong Kong53.341.8-21.58 Taiwan 10.014.1+41 Thailand9.610.7+11.46 Indonesia10.610.4-1.89 Philippines4.35.2+20.93 South Korea9.113.1+43.96 Vietnam 23.518.7-20.43 Malaysia2.73.8+40.74 New Caledonia2.83+7.14 Samoa 3.13.6+16.13 South Africa2.63.742.31 Spain 3.42.2-35.29 India 0.74+471.43 Maldives01.2-1 Total 281.5249.7-11.3 All countries310.5264.3-14.88 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...

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