New Zealand’s multi‑billion dollar wood processing industry has a message for the Luxon government: “Think big” and back us to develop higher‑value timber, engineered wood and bioproducts that can lift export earnings and regional jobs.
That is amongst the key takeaways of the Wood Processors and Manufacturers Association conference last week, where Hon Todd McClay, Minister of Forestry and Trade, cited a 27 per cent rise in processed wood exports to $1.1 billion in the past year with Sam Keenan, the Deputy Director‑General of Te Uru Rākau, urging the industry and government to work together to open new global opportunities.
Speakers warned that market access remains a major constraint. Deputy Secretary of Trade and Economics Vangelis Vitalis said tariff escalation overseas — notably on radiata pine into the United States — is squeezing exporters and described free trade agreements as the practical route to relief, with negotiations with India reportedly progressing toward phased tariff reductions to zero.
Technical and bioeconomy sessions set out a practical alternative to continued log exports: treat forests as feedstock for higher‑value, low‑emissions products. According to Wayne Mulligan, NZ Bio Forestry’s chief executive, forestry needs to change the way it sell adding that no waste should be spared with highly valuable woody biomass that can be turned into a range of high-value, low-emissions products: “Next time you look at a forest, understand it is a huge green biomass of molecular carbon technologies – carbon is valuable.”
Speakers from the Bioeconomy Science Institute and the New Zealand Forest Owners Association urged adoption of AI, improved tree genetics and advanced processing to lift conversion rates and per‑hectare returns. Panellists argued those productivity gains are essential if New Zealand is to manufacture competitively and capture premium markets rather than remaining a bulk log supplier.
Meanwhile, separate panels on legality and traceability made clear that documentation will determine market access. Susan Secker of Te Uru Rākau, James Treadwell of NZIF and Simon Dorries of Responsible Wood warned exporters that chain‑of‑custody is becoming a prerequisite for many buyers and that meeting those standards will be central to growing market share.
The commercial case for mass timber was presented as immediate and scalable. Dan McGuinness of LT McGuinness Ltd said: “Wood in construction creates safer, healthier and more sustainable environments for workers and families.” He pointed to the Parliament building and recent Tauranga projects as examples of how demonstrated capability drives uptake and creates downstream demand for engineered products.
However, building capacity requires investment in people as well as plant. Keith Mackie and Thomas Lim of the Wood Industry Development and Education Trust, along with ACC’s Sue McMaster, outlined available supports, including apprentice grants and recovery‑at‑work programmes, to keep employees skilled and reduce long‑term workforce disruption. BusinessNZ chief Katherine Rich pressed for targeted infrastructure investment and a reduction in regulatory barriers that can slow new processing capacity.
WPMA chair Don Hammond closed by emphasising the sector’s broader contribution: “This conference wasn’t just about policy and economics – it also celebrated the social and environmental impact of the wood sector.” He noted the industry directly employs more than 30,000 New Zealanders and said the sector supports regional economies while contributing to national low‑carbon objectives.
- To learn more about New Zealand’s opportunity to develop value-added timber-based products, click here for Wood Central’s special feature from last month.
