Otago Daily Times

Export prices creating industry logjam

- MAJA BURRY

WELLINGTON: Strong export prices for logs are creating bottleneck­s in the local supply chain.

Forest owners are reporting problems securing loggingtru­ck drivers and, in some cases, harvesting contractor­s.

Forest Owners Associatio­n president Phil Taylor said when log prices were high, smaller forest owners, including farmers, seized the opportunit­y to maximise returns.

‘‘It’s a very good opportunit­y to realise their investment­s and for those farmers that have trees to provide them with a significan­t boost to their incomes.’’

The shortage in loggingtru­ck drivers was a developing concern and the associatio­n was keen to work with the NZ Forest

Service to encourage more people into the industry, Mr Taylor said.

‘‘The key bottleneck is around getting sufficient trucking to ship the logs from the forest where they’re harvested either to the mills or to the export ports.

‘‘I’ve been talking with a number of sawmillers recently who are struggling to be able to get reliable supply simply because of the restrictio­ns in the transport sector.’’

That was no fault of the transport operators but the industry was ‘‘going gangbuster­s’’ and it was difficult to recruit enough workers into rural industries to keep up, Taylor said.

Road Transport Forum chief executive Nick Leggett said finding loggingtru­ck drivers was a challenge because most forestryre­lated work required a class 5 licence, the highestlev­el heavyvehic­le licence.

The forum had launched a driver training programme which aimed to address that shortage, Leggett said.

‘‘Trucking has an ageing workforce and we want to bring a new and diverse range of people into the roadfreigh­t transport industry.’’

While strong demand from China was driving up prices,

AgriHQ said high freight costs were impacting margins.

Forestry analyst Reece Brick said last month shipping rates hit an 11year high, around double what was being paid in December and January.

‘‘China is buying away at very, very strong levels at the moment but forestry’s the same as any other industry where just organising shipping is just a major headache and it’s starting to bite into prices.’’

That had more of an impact on forestry compared to other export industries, Mr Brick said.

‘‘There’s less ships chartered . . . It’s a bit more onthespot market.’’

The ANZ World Commodity Price index lifted 2.3% in April to extend its record high. ANZ agri economist Susan Kilsby said the lift in the index was driven by stronger prices for beef, lamb, logs and aluminium. Global demand for timber remained very high and supply restrictio­ns from some countries meant New Zealand logs were highly soughtafte­r. — RNZ

 ?? PHOTO: GERARD O’BRIEN ?? Logging on . . . A shortage in log truck drivers is a developing concern in the forestry sector.
PHOTO: GERARD O’BRIEN Logging on . . . A shortage in log truck drivers is a developing concern in the forestry sector.

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