The peak body for New Zealand’s wood processing and manufacturing value chain is pressing the Wellington government to formally recognise that wood processing is an industry of national importance, as fuel costs tied to the Middle East conflict threaten to destabilise the supply chain. That is according to WPMA Chief Executive Mark Ross, who said in a WPMA news email that predictable access to both raw materials and fuel — backed by explicit government acknowledgement — has become the sector’s most pressing policy ask.
“Continued collaboration across the supply chain will be essential to ensure the wider wood products and forestry sector remains resilient and competitive, particularly in light of rising fuel costs associated with the conflict in the Middle East,” Ross said in a statement to members. And on the supply, Ross was measured, noting that current stability cannot be taken for granted.
“Feedback from members indicates that log supply levels are, in most cases, stable at present — nevertheless, maintaining a consistent flow of logs, together with steady pricing, remains fundamental to safeguarding the long‑term viability of the wood processing and manufacturing industry,” he said.
As it stands, forestry export revenue reached NZ $6 billion in the year to March 2025 — 8.7 per cent of New Zealand’s total merchandise exports and 1.6 per cent of GDP, according to the Ministry of Foreign Affairs and Trade. “As a key value‑adding sector, wood processing makes a significant contribution to national economic performance and export earnings — processors require predictable and reliable access to quality raw material and fuel, plus acknowledgement by the Government that the industry is critical,” Ross added.
It comes after WPMA pressed its case to Cabinet on power prices — with Ross meeting Energy Minister Simon Watts to push for an affordable and secure energy supply ahead of winter and to advocate for an all-party long-term energy strategy. New Zealand Treasury’s medium-term forestry outlook identified high energy prices as the primary driver of the 2024 mill exits, with several remaining operations having flagged the possibility of halting production in 2025.
- To learn how diesel trading at NZD $2.34 per litre — up 80 per cent in a month — and shipping rates into China jumping 36 per cent in four weeks are pushing New Zealand’s logging companies to the brink, click here for Wood Central’s special feature: NZ Forestry Faces Double Hit — Diesel Up 80%, Shipping Up 36%.
