Timber exports diversify

Business, political and economic commentators have discussed the need for New Zealand exporters to diversify away from the Chinese market for many months now, especially with the weakening of economic activity there.  China has been and continues to be a very significant market for the forestry sector as it is for others such as dairy but in amongst all this, timber exporters have been busily reducing their reliance on that market in recent years.  A quick look at this development since 2020 can be seen in these charts.

In a period of just four years China’s share of our total timber exports by volume has fallen from 28% to 15%.  Factors affecting exports to China included heightened competition from European timber producers in the light of forest health issues over there and shipments from eastern Russia because of log export restrictions have influenced this.  At the same time our exports to “Other markets” i.e. outside of China, the USA, Australia and Vietnam have risen from 44% to 54% of the total volume.

In terms of value, China’s share of total timber exports fell from 16% to 7%.  The share to United States rose from 25% to 34%.  The share of exports held by Australia rose marginally to 15% while Vietnam, a market with similarities to China fell to just 3%.  The shares held by other markets remained the same.

Whether China’s importance as a market for our timber recovers to previous levels remains to be seen.