An upturn in tree planting in New Zealand is being mainly attributed to the Emissions Trading Scheme.
An estimated 67.6 million seedlings were planted during the year to April 2011, a 27% increase from 53.2 million the previous year, Maf's National Exotic Forest Description (NEFD) shows.
That equated to an estimated 60,000ha of plantings, comprising 12,000ha of new plantings and replanting of about 48,000ha that had been harvested.
Industry feedback suggested much of the increased planting was motivated by the ETS and an encouraging outlook for wood demand, particularly from Asia.
According to the annual NEFD report, for which larger operators only (growing at least 1000ha) were surveyed, there was a similar area harvested (40,000ha) as the previous year.
However, other sources showed an increase in total harvest area for the year, which indicated that a higher proportion of harvesting and planting activity was done by smaller growers but not captured in the survey this year.
However, the per-ha yield was up 6% , which industry feedback suggested was due to higher log prices justifying better levels of recovery per tree and a small increase in the average age at harvest of the main exotic forest species radiata pine - at 28.6 years, up from 28.4.
Statistics reported in Maf's September-quarter production and trade update showed total forestry export earnings increased $32.7 million (3%) to $1.1 billion in the three months to September 30.
That took the annual earnings to the end of September to $4.6 billion, accounting for 10.1% of total merchandise exports.
Export log earnings continued to be strong, rising by $77.2 million (25.8%) due to strong demand and high log prices.
China continued to dominate New Zealand's log export market, with volumes rising 32.6% , to a record high of 2.2 million cu m.
However, at the same time sawn timber export earnings fell $31.4 million (13.6%). Sawn timber production dropped by 0.113 million cu m over the quarter, due to high log prices, weak domestic demand and a high exchange rate.
Wood processors have become more pessimistic about their prospects. However, demand from Japan for wood panel products remained strong following the natural disasters in March.
Chinese demand for New Zealand logs was easing.
