Click photo to enlarge
Looking up: The future of Otago’s forestry industry is
looking bright, according to a recent report. Picture: ODT
files
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.
