Forestry on the rise

The outlook is bright for the forestry industry in Otago with much of the predicted growth in radiata pine supply coming from smaller growers.

A recent Ministry of Agriculture and Forestry and Southern Wood Council (SWC) report made predictions on the volume of timber in Otago and Southland through to 2040.

The harvest is predicted to grow in the long term, SWC chairman Matt Hitchings said. The SWC, an independent group set up in 2001, is made up of forest owners, wood processing and manufacturing companies and port authorities within the region.

‘‘Forestry's economic contribution to regional GDP [Gross Domestic Product] will continue to grow, making the sector one of the top earners in the southern South Island,'' Mr Hitchings said.

‘‘Forestry, through its carbon-storing capacity, is recognised for the environmental wealth it provides, so the benefits are substantial.''

The combined Otago and Southland regional log harvest has the potential to increase from 1.5 million cu m to nearly 2.8 million cu m a year from around 2020.

‘‘For every 10 core industry jobs in forestry, it's estimated there are a further 11 to 12 jobs in service industries,'' he said.

The report covered radiata pine and Douglas fir tree species, which make up 90% (194,100ha) of the Otago and Southland plantations.

The forecasts provided infrastructure agencies with credible information for future planning, Mr Hitchings said.

The predicted growth in radiata pine supply would come mainly from smaller growers in Otago and Southland, including the farm forestry sector, small block holders and syndicates who invested in the 1990s and early 2000s.

Forestry was a key growth driver for the southern region which experienced high harvest volumes and processing activity during the 1990s and early 2000s.

The sector accounted for $180 million to $200 million in regional exports annually.