Log prices chopped

The forestry and logging industry is facing lower prices for their products, while sheep and beef farmers are getting higher prices for their stock, Stats NZ said today.

Prices received for raw materials produced by the forestry and logging industry dropped in the September 2019 quarter by 9.1 percent due to low global demand for logs. In contrast, the prices received by sheep and beef farmers rose 7.6 percent due to higher prices paid by meat product manufacturers.

Quarter “Sheep Forestry and logging
Dec-10 beef cattle 1000
Mar-11 and grain farming” 1038
Jun-11 1000 1078
Sep-11 1068 998
Dec-11 1122 977
Mar-12 1122 964
Jun-12 1174 977
Sep-12 1142 997
Dec-12 1105 1000
Mar-13 1119 1011
Jun-13 1097 1051
Sep-13 1011 1062
Dec-13 1020 1083
Mar-14 1102 1115
Jun-14 1118 1109
Sep-14 1141 994
Dec-14 1187 1047
Mar-15 1230 1068
Jun-15 1307 989
Sep-15 1166 1012
Dec-15 1165 1042
Mar-16 1284 1112
Jun-16 1254 1133
Sep-16 1145 1120
Dec-16 1182 1151
Mar-17 1215 1190
Jun-17 1217 1209
Sep-17 1199 1214
Dec-17 1304 1244
Mar-18 1379 1271
Jun-18 1410 1279
Sep-18 1404 1295
Dec-18 1439 1293
Mar-19 1537 1331
Jun-19 1477 1321
Sep-19 1393 1201

“The prices of logs for export dropped 21 percent in the September quarter, while prices in the domestic market were down 5.1 percent,” business prices manager Bryan Downes said.

“Domestic and export log prices don’t always move in line because of factors such as exchange rates, differing log grades and types, and market demand – for example, manufacturing activity can influence demand for timber pallets used for shipping goods.”

Trade data shows China is the largest consumer of New Zealand’s export logs with $3.0 billion sent in 2019.

“The fall in log prices coincides with the US-China trade dispute and reports of growing log stockpiles in China,” Mr Downes said.

“At the same time, international demand for red meat has been rising, largely due to the African swine fever outbreak in China with reduced supplies of pork being substituted with alternative products.”

New Zealand consumers are also seeing meat prices increasing domestically as seen in Food price index: October 2019, with bacon and ham prices rising by more than 20 percent for the year to October 2019. The news story Avocados at lowest price in almost three years has more information on recent changes in food prices.

/Stats NZ Public Release. View in full here.