Rising log prices bring relief to contractors

THE MOOD OF LOGGERS IS IMPROVING AS THE PRICE OF export logs continues to lift after taking a massive hit at the start of winter, according to FICA (Forest Industry Contractors Association).

At Wharf Gate prices improved by US$2 per JAS m3 for A grade during September and by the same amount in October and are now around $8 higher than the lows reached in July, when prices plunged around 20%.

FICA is currently in the midst of surveying its members to update how they are faring as the industry continues to traverse a period of uncertainty.

“We do see the tides are changing and prices seem to have improved and we hear a positive vibe out there which suggests that we are coming out of the rut,” says Prue Younger, CEO of FICA, adding that the latest survey will monitor the changes, good and bad, in the most recent weeks.

“This time we will ascertain how many of our members work for corporate forests rather than woodlot owners.”

FICA is also working on a publication called ‘Contracts - Best Practice Guideline’ for members, to ensure contractors are well informed of what their contracts should be covering. NZL