Fore

stry Flow Account1996 to 2002

Environmental Accounts

Acknowledgement This report was prepared by the Environmental Statistics team and published by the Product Development and Publishing business unit of Statistics New Zealand Information in this report could not have been estimated without forestry data and advice provided by the Ministry of Agriculture and Forestry

Further information For further information on the statistics in this report or on other reports or products contact our Information Centre

Visit our website wwwstatsgovtnz or email us at infostatsgovtnz or phone toll free 0508 525 525 Auckland Wellington Christchurch Private Bag 92003 PO Box 2922 Private Bag 4741 Phone 09 920 9100 Phone 04 931 4600 Phone 03 964 8700 Fax 09 920 9198 Fax 04 931 4610 Fax 03 964 8964

Information Centre Your gateway to Statistics New Zealand Each year we collect over 60 million pieces of information New Zealanders tell us how and where they live about their work spending and recreation We also collect a complete picture of business in New Zealand This valuable resource is yours to use But with all the sophisticated options available finding exactly what you need can sometimes be a problem

Giving you the answers Our customer services staff provide the answer They are the people who know what information is available and how it can be used to your best advantage Think of them as your guides to Statistics New Zealand They operate a free enquiry service where answers can be quickly provided from published material More extensive answers and customised solutions will incur costs but we always give you a free no-obligation quote before going ahead

Liability statement Statistics New Zealand gives no warranty that the information or data supplied contains no errors However all care and diligence has been used in processing analysing and extracting the information Statistics New Zealand shall not be liable for any loss or damage suffered by the customer consequent upon the use directly or indirectly of the information supplied in this product

Reproduction of material Any table or other material published in this report may be reproduced and published without further licence provided that it does not purport to be published under government authority and that acknowledgement is made of this source

For working tables please see

httpwwwstatsgovtnzanalytical-reportsnatural-resource-accountsforestry-natural-resource-accountshtm

For methodological notes please see

httpwwwstatsgovtnzNRrdonlyres0AC772B3-29CB-47C4-BFE0-48E95EDEC7210ForestryMonetaryFlowAccpdf

ii

Acknowledgement This report was prepared by the Environmental Statistics team and published by the Product Development and Publishing business unit of Statistics New Zealand Information in this report could not have been estimated without forestry data and advice provided by the Ministry of Agriculture and Forestry

Further information For further information on the statistics in this report or on other reports or products contact our Information Centre

Visit our website wwwstatsgovtnz or email us at infostatsgovtnz or phone toll free 0508 525 525 Auckland Wellington Christchurch Private Bag 92003 PO Box 2922 Private Bag 4741 Phone 09 920 9100 Phone 04 931 4600 Phone 03 964 8700 Fax 09 920 9198 Fax 04 931 4610 Fax 03 964 8964

Information Centre Your gateway to Statistics New Zealand Each year we collect over 60 million pieces of information New Zealanders tell us how and where they live about their work spending and recreation We also collect a complete picture of business in New Zealand This valuable resource is yours to use But with all the sophisticated options available finding exactly what you need can sometimes be a problem

Giving you the answers Our customer services staff provide the answer They are the people who know what information is available and how it can be used to your best advantage Think of them as your guides to Statistics New Zealand They operate a free enquiry service where answers can be quickly provided from published material More extensive answers and customised solutions will incur costs but we always give you a free no-obligation quote before going ahead

Liability statement Statistics New Zealand gives no warranty that the information or data supplied contains no errors However all care and diligence has been used in processing analysing and extracting the information Statistics New Zealand shall not be liable for any loss or damage suffered by the customer consequent upon the use directly or indirectly of the information supplied in this product

Reproduction of material Any table or other material published in this report may be reproduced and published without further licence provided that it does not purport to be published under government authority and that acknowledgement is made of this source

For working tables please see

httpwwwstatsgovtnzanalytical-reportsnatural-resource-accountsforestry-natural-resource-accountshtm

For methodological notes please see

httpwwwstatsgovtnzNRrdonlyres0AC772B3-29CB-47C4-BFE0-48E95EDEC7210ForestryMonetaryFlowAccpdf

ii

Forestry Flow Account

Contents Preface iv 1 Summary 1 2 Introduction 2 3 Interpreting the results 2 4 New Zealand wood use 3

41 Summary of domestic wood use 3 42 Wood imports and exports 5

5 Total wood use by selected industries 6 51 Pulp and Paper Manufacturing 6 52 Forestry Logging Sawmilling and Timber 6 53 Residential Construction 7 54 Buildersrsquo Supplies 7 55 Furniture Manufacturing 8 56 Dairy Farming 8 57 Sheep and Beef Farming 9 58 Paper Containers 9

6 Glossary 10 7 References 10

List of Figures

Figure 1 Flow of Wood as it is Converted into New Commodities 4 Figure 2 Total Wood Products Exported years ending March 1996ndash2002 5 Figure 3 Total Wood Products Imported years ending March 1996ndash2002 5 Figure 4 Pulp and Paper Manufacturing Industry Wood Use 6 Figure 5 Forestry Logging Sawmilling and Timber Industry Wood Use 6 Figure 6 Residential Construction Wood Use 7 Figure 7 Buildersrsquo Supplies Wood Use 7 Figure 8 Furniture Manufacturing Industry Wood Use 8 Figure 9 Dairy Farming Industry Wood Use 8 Figure 10 Sheep and Beef Farming Industry Wood Use 9 Figure 11 Paper Container Industry Wood Use 9

List of Tables

Table 1 Total Domestic Wood Use by Commodity 3

iii

Forestry Flow Account

Preface Statistics New Zealand is working with a number of government and other agencies to produce a range of environment statistics about the natural environment and the impact of economic and social activities on the environment As a part of this work Statistics New Zealand has developed environmental accounts for several natural resources forestry energy fisheries minerals and freshwater Environmental accounts consist of physical and monetary stock and flow accounts The physical stock and flow accounts are referred to as natural resource accounts They measure the physical stocks and flows of natural resources in units such as tonnes and joules These quantities are valued resulting in monetary figures that form environmental accounts and can be linked to economic statistics such as the gross domestic product (GDP)

Statistics New Zealandrsquos Environment Statistics Framework

Environmental accounts Natural

resource stock

accounts

Natural resource

flow accounts

Ecosystem input

accounts

Product flow

accounts

Residual (waste)

accounts

Environmental protection

expenditure

Fisheries forestry minerals and energy freshwater wastes

Environmental indicators energy transport socio-economic indicators waste

Headline indicators

Decoupling Indicators

The release of natural resource and environmental accounts reflects an international trend towards compiling information beyond the traditional measures of economic activity The accounts reflect the view that the environment has a finite capacity to supply materials and absorb waste For more information on the environmental statistics framework and uses of natural resource and environmental accounts refer to the environment homepage of Statistics New Zealandrsquos website (httpwwwstatsgovtnzenvironmentdefaulthtm)

iv

Forestry Flow Account

Preface Statistics New Zealand is working with a number of government and other agencies to produce a range of environment statistics about the natural environment and the impact of economic and social activities on the environment As a part of this work Statistics New Zealand has developed environmental accounts for several natural resources forestry energy fisheries minerals and freshwater Environmental accounts consist of physical and monetary stock and flow accounts The physical stock and flow accounts are referred to as natural resource accounts They measure the physical stocks and flows of natural resources in units such as tonnes and joules These quantities are valued resulting in monetary figures that form environmental accounts and can be linked to economic statistics such as the gross domestic product (GDP)

Statistics New Zealandrsquos Environment Statistics Framework

Environmental accounts Natural

resource stock

accounts

Natural resource

flow accounts

Ecosystem input

accounts

Product flow

accounts

Residual (waste)

accounts

Environmental protection

expenditure

Fisheries forestry minerals and energy freshwater wastes

Environmental indicators energy transport socio-economic indicators waste

Headline indicators

Decoupling Indicators

The release of natural resource and environmental accounts reflects an international trend towards compiling information beyond the traditional measures of economic activity The accounts reflect the view that the environment has a finite capacity to supply materials and absorb waste For more information on the environmental statistics framework and uses of natural resource and environmental accounts refer to the environment homepage of Statistics New Zealandrsquos website (httpwwwstatsgovtnzenvironmentdefaulthtm)

iv

Forestry Flow Account

1 Summary The forestry flow account presents a summary of New Zealandrsquos domestic wood use and wood exports and imports for the period 1996 to 2002 Wood use is presented in the form of 11 commodities including Logs and Poles Wood Chips Veneer Fibreboard and Chemical Pulp Detailed wood use information is supplied for eight significant industry groups

For the period 1996 to 2002 there was an increase in use of all of the wood commodities except fibreboard chemical pulp and other paper and paperboard within New Zealand This increase was driven by significant increases in the amount of wood commodities used in the agriculture pulp and paper manufacturing and construction industries

The amount of wood used in New Zealand is linked to economic activity with an overall increase in use of most of the wood commodities matching increases in the GDP New Zealandrsquos commercially harvested indigenous forests are managed using sustainable harvest methods but accounts for a small proportion of commercial wood supply in New Zealand

Highlights For the period 1996 to 2002

bull New Zealandrsquos total wood imports decreased by five percent

bull New Zealandrsquos total wood exports increased by 39 percent

bull Wood use in the Forestry Logging Sawmilling and Timber industry increased by 49 percent

bull Wood use in the Furniture Manufacturing industry increased by 50 percent

bull Wood use in the Builderrsquos Supplies industry increased by 50 percent

bull Wood use in the Paper Containers industry decreased 20 percent

1

Forestry Flow Account

2 Introduction Over 29 percent (81 million hectares) of New Zealandrsquos landmass is covered by forests in the form of National and Forest parks production plantations private plantations shelter belts and scrub Indigenous forests make up the majority (63 million hectares) with planted production forest predominately accounting for the rest (18 million hectares)

Over the years New Zealand has developed a thriving wood export economy For 2004 the top five destinations for New Zealand exported wood products1 were Australia (28 percent) Japan (20 percent) the Republic of Korea (14 percent) USA (11 percent) and the Peoplersquos Republic of China (11 percent)

The lsquoAsian financial crisisrsquo from late 1997 to late 1998 clearly demonstrated the dependence New Zealand places on the Asian market particularly for logs and panel products The New Zealand Institute of Economic Research conducted a research into New Zealandrsquos forestry exports which suggested that between July 1997 and June 1999 the events in Asia resulted in a loss of $197 million in the forestry industryrsquos contribution to GDP and $94 million to forestry exports

In 2004 85384 people were engaged in the forestry labour force ndash 4 percent of the total people in the labour force in New Zealand In 2004 the forestry sector contributed 34 percent to New Zealandrsquos total GDP

This report presents information on industry wood use imports of wood products into New Zealand and exports of wood products from New Zealand for the period from 1996 to 2002 More specific wood use information is supplied for nine selected industries These industries are pulp and paper manufacturing forestry logging sawmilling and timber residential construction buildersrsquo supplies furniture manufacturing dairy farming sheep and beef farming and paper containers

3 Interpreting the results When analysing the flow account it should be noted that the supply and use tables may count the same volume several times as it is converted into different forestry products For instance a cubic metre of logs may be counted in the supply table twice ndash once as logs and poles and once as sawn timber Similarly the same logs could be recorded as used by the lsquolog sawmilling and timber dressingrsquo industry while the sawn timber derived from the logs could be used by the lsquofurniture manufacturingrsquo industry

Such lsquodouble countingrsquo of volumes only occurs when a forestry product is converted into another forestry product2 The individual industry totals therefore only show the magnitude of processing or consumption by the industry not the actual amount of wood removed from the forest3 that is either supplied to the economy or consumed by the individual industry The grand totals for supply and use are included for accounting purposes only to show that total supply equals total use This treatment is conceptually similar to the treatment of commodities in National Accounts input-output tables

1 These figures were calculated from httpwwwmafgovtnzstatisticsprimaryindustriesforestrytradejune-export-highlightsjune-2005-exportsexport-of-forestry-products-june-2005htm accessed 201005 2 The tables only include wholesale (and retail) transactions of forestry products where the product has been transformed by the wholesaler (or retailer) into a different forestry product For example sawn timber output of wholesalers in the supply table represents the conversion of logs into sawn timber by the wholesaler This output does not include sawn timber purchased by the wholesaler and sold without further processing 3 Although the tables do show the total timber removed from the forest entering the economy This is where the physical flow account links to the total harvesting in the physical stock account The structure of the tables (which are based on standard national accounting models) and some data availability issues do not allow for the direct tracking of all timber moving through the economy Some flows such as the exports of logs and poles are easily identifiable

2

Forestry Flow Account

2 Introduction Over 29 percent (81 million hectares) of New Zealandrsquos landmass is covered by forests in the form of National and Forest parks production plantations private plantations shelter belts and scrub Indigenous forests make up the majority (63 million hectares) with planted production forest predominately accounting for the rest (18 million hectares)

Over the years New Zealand has developed a thriving wood export economy For 2004 the top five destinations for New Zealand exported wood products1 were Australia (28 percent) Japan (20 percent) the Republic of Korea (14 percent) USA (11 percent) and the Peoplersquos Republic of China (11 percent)

The lsquoAsian financial crisisrsquo from late 1997 to late 1998 clearly demonstrated the dependence New Zealand places on the Asian market particularly for logs and panel products The New Zealand Institute of Economic Research conducted a research into New Zealandrsquos forestry exports which suggested that between July 1997 and June 1999 the events in Asia resulted in a loss of $197 million in the forestry industryrsquos contribution to GDP and $94 million to forestry exports

In 2004 85384 people were engaged in the forestry labour force ndash 4 percent of the total people in the labour force in New Zealand In 2004 the forestry sector contributed 34 percent to New Zealandrsquos total GDP

This report presents information on industry wood use imports of wood products into New Zealand and exports of wood products from New Zealand for the period from 1996 to 2002 More specific wood use information is supplied for nine selected industries These industries are pulp and paper manufacturing forestry logging sawmilling and timber residential construction buildersrsquo supplies furniture manufacturing dairy farming sheep and beef farming and paper containers

3 Interpreting the results When analysing the flow account it should be noted that the supply and use tables may count the same volume several times as it is converted into different forestry products For instance a cubic metre of logs may be counted in the supply table twice ndash once as logs and poles and once as sawn timber Similarly the same logs could be recorded as used by the lsquolog sawmilling and timber dressingrsquo industry while the sawn timber derived from the logs could be used by the lsquofurniture manufacturingrsquo industry

Such lsquodouble countingrsquo of volumes only occurs when a forestry product is converted into another forestry product2 The individual industry totals therefore only show the magnitude of processing or consumption by the industry not the actual amount of wood removed from the forest3 that is either supplied to the economy or consumed by the individual industry The grand totals for supply and use are included for accounting purposes only to show that total supply equals total use This treatment is conceptually similar to the treatment of commodities in National Accounts input-output tables

1 These figures were calculated from httpwwwmafgovtnzstatisticsprimaryindustriesforestrytradejune-export-highlightsjune-2005-exportsexport-of-forestry-products-june-2005htm accessed 201005 2 The tables only include wholesale (and retail) transactions of forestry products where the product has been transformed by the wholesaler (or retailer) into a different forestry product For example sawn timber output of wholesalers in the supply table represents the conversion of logs into sawn timber by the wholesaler This output does not include sawn timber purchased by the wholesaler and sold without further processing 3 Although the tables do show the total timber removed from the forest entering the economy This is where the physical flow account links to the total harvesting in the physical stock account The structure of the tables (which are based on standard national accounting models) and some data availability issues do not allow for the direct tracking of all timber moving through the economy Some flows such as the exports of logs and poles are easily identifiable

2

Forestry Flow Account

4 New Zealand wood use 41 Summary of domestic wood use

New Zealand use of plywood increased 368 percent between 1996 and 2002

Domestic use of plywood showed the largest increase (367 percent) of all the industries between 1996 and 2002 from 78 (000)msup3RE in 1996 to 364 (000)msup3RE in 2002 (all years are ended March unless otherwise stated) (Table 1) However domestic use of plywood in 1996 was small compared with the other wood commodities Domestic use of particleboard also increased (134 percent) between 1996 and 2003 (73 (000)msup3RE and 171 (000)msup3RE respectively) again the domestic wood use in 1996 was comparatively small

The domestic use of fibreboard chemical pulp and other paper and paperboard decreased between 1996 and 2002 Domestic use of chemical pulp decreased the most (36 percent) over the seven-year time period

Figure 1 illustrates the domestic use of wood by commodity in 2002 and shows the flow of wood as it is converted to different commodities It also better demonstrates the lsquodouble countingrsquo mentioned in section 3

Table 1

Total Domestic Wood Use by Commodity

Years ending March 1996ndash2002

1996 1997 1998 1999 2000 2001 2002

Commodities (000)msup3RE (000)msup3RE (000)msup3RE (000)msup3RE (000)msup3RE (000)msup3RE (000)msup3RE

Logs and Poles 11021 10490 11142 11015 12388 12633 13563

Wood Chips 2856 3691 4456 3846 4089 4197 4576

Sawn Timber 3632 3792 3772 3724 4501 4413 4370

Veneer 390 466 453 452 575 564 679

Plywood 78 189 190 218 310 295 364

Particleboard 73 183 163 151 169 155 171

Fibreboard 405 279 344 295 303 305 294

Chemical Pulp 1829 1311 1413 1037 1141 1324 1162

Mechanical Pulp 774 717 817 883 812 1015 884

Newsprint 451 339 329 345 402 532 641

Other Paper and Paperboard 2370 2384 2421 2085 2349 2040 1733

3

Forestry Flow Account

Figure 1 Flow of Wood as it is Converted into New Commodities

Year ending March 2002

Logs and Poles 14 (mill)m3RE

Veneer Sawn Timber 08 (mill)m3RE 4 (mill)m3RE

Plywood Wood Chips 04 (mill)m3RE 45 (mill)m3RE

Particleboard Fibreboard Chemical Pulp Mechanical Pulp 02 (mill)m3RE 03 (mill)m3RE 1 (mill)m3RE

09 (mill)m3RE

Newsprint Other Paper

and Paperboard 06 (mill)m3RE

2 (mill)m3RE

Primary Wood Product ndash raw wood products

Secondary Wood Product ndash wood products produced from other wood products

4

Forestry Flow Account

42 Wood imports and exports Exports of wood commodities continued to climb while imports declined

New Zealand wood exports increased by 39 percent for the period 1996 to 2002 (Figure 2) Exports dipped slightly in 1999 coinciding with the Asian financial crisis By 2000 the exports to Korea started to recover and the prices of wood products also improved In Korea the three largest end-uses of wood products are residential construction furniture and musical instruments4 In 2001 export log prices continued to increase with demand for logs also increasing

For the period 1996 to 2002 the volume of wood imported into New Zealand decreased by 5 percent (Figure 3) The decline is specifically due to a sizeable drop in imports of other paper and paperboard This coincided with increased domestic production of other paper and paperboard This suggests that New Zealand wais producing sufficient quantities of wood commodities to meet its needs as well as supplying an international market

Figure 2

Total Wood Products Exported

Years ending March 1996ndash2002

02000400060008000

1000012000140001600018000

1996 1997 1998 1999 2000 2001 2002Year

(000)msup3RE

Figure 3

Total Wood Products Imported

Years ending March 1996ndash20025

02000400060008000

1000012000140001600018000

1996 1997 1998 1999 2000 2001 2002Year

(000)msup3RE

4 Information taken from website accessed 201005 httpwwwcintrafororgRESEARCH_TABlinksFsFS15htm 5 Figures 2 and 3 were amended on 20 June 2006 and now display the correct data

5

Forestry Flow Account

5 Total wood use by selected industries 51 Pulp and Paper Manufacturing

Wood use increased by 7 percent from 1996 to 2002

In 2002 the Pulp and Paper Manufacturing industry used the largest proportion of New Zealandrsquos total wood use (34 percent) The volume of wood products used by this industry increased from 9 million msup3RE in 1996 to 95 million msup3RE in 2002 (Figure 4) However this increase was not uniform ndash from 1996 to 1999 the amount of wood used by this industry fluctuated but decreased overall The dip in 1999 coincides with the Asian financial crisis The Pulp and Paper Manufacturing industry used primarily logs and poles (40 percent) this was followed by woodchips (36 percent) In 2002 the pulp and paper manufacturing industry spent $562 million on wood products which was 71 percent of their total current expenditure

Figure 4

Pulp and Paper Manufacturing Industry Wood Use

0

2000

4000

6000

8000

10000

12000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

52 Forestry Logging Sawmilling and Timber Wood use increased by 47 percent from 1996 to 2002

In 2002 the forestry logging sawmilling and timber industry represented 27 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 5 million msup3RE in 1996 to 75 million msup3RE in 2002 (Figure 5) Logs and poles made up the highest percent of wood products used (985 percent) The overall increase in wood use was due to one of main wood product using companies expanding into logging in 2000 which increased the amount of logs and poles used by this industry In 2002 the forestry logging sawmilling and timber industry spent $1289 million on wood products which was 18 percent of their total current expenditure

Figure 5

Forestry Logging Sawmilling and Timber Industry Wood Use

0

2000

4000

6000

8000

10000

12000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

6

Forestry Flow Account

53 Residential Construction Wood use increased 26 percent from 1996 to 2002

In 2002 the residential construction industry used 5 percent of the total amount of wood used in New Zealand The volume of wood products used by this industry increased from 1 million msup3RE in 1996 to 15 million msup3RE in 2002 (Figure 6) The increase in wood use is consistent with an increase in the constructions of new dwellings The residential construction industry primarily used plywood which made up 66 percent of this industryrsquos total wood use In 2002 the residential construction industry spent $659 million on wood products which was 25 percent of their total current expenditure

Figure 6

Residential Construction Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

54 Buildersrsquo Supplies Wood use increased by 50 percent from 1996 to 2002

In 2002 the buildersrsquo supplies industry represented 3 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 05 million msup3RE in 1996 to 08 million msup3RE in 2002 (Figure 7) During the seven year period wood used by this industry continued to steadily increase which corresponds to an overall increase in new building consents issued and increased building activity The buildersrsquo supplies industry primarily used logs and poles (92 percent) In 2002 the buildersrsquo supplies industry spent $119 million on wood products which was 3 percent of its total current expenditure

Figure 7

Buildersrsquo Supplies Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

7

Forestry Flow Account

55 Furniture Manufacturing Wood use increased by 50 percent from 1996 to 2002

In 2002 the furniture manufacturing industry represented 3 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 05 million msup3RE in 1996 to 08 million msup3RE in 2002 (Figure 8) Veneer is the wood product that is primarily used by this industry and made up 61 percent of the total wood use in 2002 From 1997 to 1999 there was a large increase in the amount of veneer used by the furniture and manufacturing industry The second most commonly used wood product by this industry was sawn timber (32 percent) Use of sawn timber in this industry experienced a significant increase between 1999 and 2000 This increase coincided with a national furniture retailer expanding its operation In 2002 the furniture manufacturing industry spent $207 million on wood products which was 30 percent of their total current expenditure

Figure 8

Furniture Manufacturing Industry Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

56 Dairy Farming Wood use increased by 16 percent from 1996 to 2002

In 2002 the dairy farming industry used 02 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased by 16 percent from 55000 msup3RE in 1996 to 64000 msup3RE in 2002 (Figure 9) The increase in wood use corresponds to increased production in the dairy farming industry This industry predominantly used logs and poles (95 percent) In 2002 the dairy farming industry spent $21 million on wood products which was 1 percent of their total current expenditure

Figure 9

Dairy Farming Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

8

Forestry Flow Account

57 Sheep and Beef Farming Wood use has increased by 20 percent from 1996 to 2002

In 2002 the sheep and beef industry used 02 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 43000 msup3RE in 1996 to 51000 msup3RE in 2002 (Figure 10) peaking in 1998 at 57000 msup3RE The 1998 peak corresponded to increased production in the industry Wood used in this industry is predominantly in the form of logs and poles (975 percent of the total) In 2002 the sheep and beef farming industry spent $15 million on wood products which was 05 percent of their total current expenditure

Figure 10

Sheep and Beef Farming Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

58 Paper Containers Wood use decreased by 20 percent from 1996 and 2002

In 2002 the paper containers industry used a very small amount of New Zealandrsquos total wood use (01 percent) The volume of wood products used by this industry decreased from 53000 msup3RE in 1996 to 42000 msup3RE in 2002 (Figure 11) This industry primarily used other paper and paperboard (70 percent) This product experienced a decrease in use by all industries in 1999 This is illustrated by the dip in the wood use by this industry in 1999 which coincides with the Asian financial crisis In 2002 the paper containers industry spent $793 million on wood products which was two percent of their total current expenditure

Figure 11

Paper Container Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

9

Forestry Flow Account

10

6 Glossary

Exports Goods and services sold (or donated) to residents of other countries

Gross domestic product (GDP) This is a measure of economic activity It is gross in that depreciation is not deducted and domestic in that it covers only national territory There are no deductions for natural resource depletion and environmental degradation The output-based version is the sum of the gross value-added of all resident producers at basic prices plus all taxes (less subsidies) on imports

Imports Goods and services purchased (or donated) from residents of other countries

msup3RE Cubic metres of roundwood equivalent (a unit of measure that allows for different types of forestry products to be compared)

7 References Ministry of Agriculture and Foerstry ldquoExports of Forestry Products for the year ended 30 June 2005 (Provisional)rdquo httpwwwmafgovtnzstatisticsprimaryindustriesforestrytradejune-export-highlightsjune-2005-exportsexport-of-forestry-products-june-2005htm [20 October 2005

New Zealand Institute of Economic Research (2000) Devolving Forest Ownership Through Privatisation

Organisation of Economic Cooperation and Development ldquoThe OECD Environmental Programme indicators to measure decoupling of environmental pressure from economic growthrdquo httpwwwoecdorgdataoecd0521933638pdf [25 August 2005]

ldquoSouth Korean Markets for US Wood Products Shifting Towards Processed Productsrdquo httpwwwcintrafororgRESEARCH_TABlinksFsFS15htm [20 October 2005]

Star amp Lochhead (2002) ldquoChildren of the Burnt Bushrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 121

Wynn (2002) ldquoDestruction Under the Guise of Improvementrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 105ndash106

Forestry Flow Account

Figure 1 Flow of Wood as it is Converted into New Commodities

Year ending March 2002

Logs and Poles 14 (mill)m3RE

Veneer Sawn Timber 08 (mill)m3RE 4 (mill)m3RE

Plywood Wood Chips 04 (mill)m3RE 45 (mill)m3RE

Particleboard Fibreboard Chemical Pulp Mechanical Pulp 02 (mill)m3RE 03 (mill)m3RE 1 (mill)m3RE

09 (mill)m3RE

Newsprint Other Paper

and Paperboard 06 (mill)m3RE

2 (mill)m3RE

Primary Wood Product ndash raw wood products

Secondary Wood Product ndash wood products produced from other wood products

4

Forestry Flow Account

42 Wood imports and exports Exports of wood commodities continued to climb while imports declined

New Zealand wood exports increased by 39 percent for the period 1996 to 2002 (Figure 2) Exports dipped slightly in 1999 coinciding with the Asian financial crisis By 2000 the exports to Korea started to recover and the prices of wood products also improved In Korea the three largest end-uses of wood products are residential construction furniture and musical instruments4 In 2001 export log prices continued to increase with demand for logs also increasing

For the period 1996 to 2002 the volume of wood imported into New Zealand decreased by 5 percent (Figure 3) The decline is specifically due to a sizeable drop in imports of other paper and paperboard This coincided with increased domestic production of other paper and paperboard This suggests that New Zealand wais producing sufficient quantities of wood commodities to meet its needs as well as supplying an international market

Figure 2

Total Wood Products Exported

Years ending March 1996ndash2002

02000400060008000

1000012000140001600018000

1996 1997 1998 1999 2000 2001 2002Year

(000)msup3RE

Figure 3

Total Wood Products Imported

Years ending March 1996ndash20025

02000400060008000

1000012000140001600018000

1996 1997 1998 1999 2000 2001 2002Year

(000)msup3RE

4 Information taken from website accessed 201005 httpwwwcintrafororgRESEARCH_TABlinksFsFS15htm 5 Figures 2 and 3 were amended on 20 June 2006 and now display the correct data

5

Forestry Flow Account

5 Total wood use by selected industries 51 Pulp and Paper Manufacturing

Wood use increased by 7 percent from 1996 to 2002

In 2002 the Pulp and Paper Manufacturing industry used the largest proportion of New Zealandrsquos total wood use (34 percent) The volume of wood products used by this industry increased from 9 million msup3RE in 1996 to 95 million msup3RE in 2002 (Figure 4) However this increase was not uniform ndash from 1996 to 1999 the amount of wood used by this industry fluctuated but decreased overall The dip in 1999 coincides with the Asian financial crisis The Pulp and Paper Manufacturing industry used primarily logs and poles (40 percent) this was followed by woodchips (36 percent) In 2002 the pulp and paper manufacturing industry spent $562 million on wood products which was 71 percent of their total current expenditure

Figure 4

Pulp and Paper Manufacturing Industry Wood Use

0

2000

4000

6000

8000

10000

12000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

52 Forestry Logging Sawmilling and Timber Wood use increased by 47 percent from 1996 to 2002

In 2002 the forestry logging sawmilling and timber industry represented 27 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 5 million msup3RE in 1996 to 75 million msup3RE in 2002 (Figure 5) Logs and poles made up the highest percent of wood products used (985 percent) The overall increase in wood use was due to one of main wood product using companies expanding into logging in 2000 which increased the amount of logs and poles used by this industry In 2002 the forestry logging sawmilling and timber industry spent $1289 million on wood products which was 18 percent of their total current expenditure

Figure 5

Forestry Logging Sawmilling and Timber Industry Wood Use

0

2000

4000

6000

8000

10000

12000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

6

Forestry Flow Account

53 Residential Construction Wood use increased 26 percent from 1996 to 2002

In 2002 the residential construction industry used 5 percent of the total amount of wood used in New Zealand The volume of wood products used by this industry increased from 1 million msup3RE in 1996 to 15 million msup3RE in 2002 (Figure 6) The increase in wood use is consistent with an increase in the constructions of new dwellings The residential construction industry primarily used plywood which made up 66 percent of this industryrsquos total wood use In 2002 the residential construction industry spent $659 million on wood products which was 25 percent of their total current expenditure

Figure 6

Residential Construction Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

54 Buildersrsquo Supplies Wood use increased by 50 percent from 1996 to 2002

In 2002 the buildersrsquo supplies industry represented 3 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 05 million msup3RE in 1996 to 08 million msup3RE in 2002 (Figure 7) During the seven year period wood used by this industry continued to steadily increase which corresponds to an overall increase in new building consents issued and increased building activity The buildersrsquo supplies industry primarily used logs and poles (92 percent) In 2002 the buildersrsquo supplies industry spent $119 million on wood products which was 3 percent of its total current expenditure

Figure 7

Buildersrsquo Supplies Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

7

Forestry Flow Account

55 Furniture Manufacturing Wood use increased by 50 percent from 1996 to 2002

In 2002 the furniture manufacturing industry represented 3 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 05 million msup3RE in 1996 to 08 million msup3RE in 2002 (Figure 8) Veneer is the wood product that is primarily used by this industry and made up 61 percent of the total wood use in 2002 From 1997 to 1999 there was a large increase in the amount of veneer used by the furniture and manufacturing industry The second most commonly used wood product by this industry was sawn timber (32 percent) Use of sawn timber in this industry experienced a significant increase between 1999 and 2000 This increase coincided with a national furniture retailer expanding its operation In 2002 the furniture manufacturing industry spent $207 million on wood products which was 30 percent of their total current expenditure

Figure 8

Furniture Manufacturing Industry Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

56 Dairy Farming Wood use increased by 16 percent from 1996 to 2002

In 2002 the dairy farming industry used 02 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased by 16 percent from 55000 msup3RE in 1996 to 64000 msup3RE in 2002 (Figure 9) The increase in wood use corresponds to increased production in the dairy farming industry This industry predominantly used logs and poles (95 percent) In 2002 the dairy farming industry spent $21 million on wood products which was 1 percent of their total current expenditure

Figure 9

Dairy Farming Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

8

Forestry Flow Account

57 Sheep and Beef Farming Wood use has increased by 20 percent from 1996 to 2002

In 2002 the sheep and beef industry used 02 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 43000 msup3RE in 1996 to 51000 msup3RE in 2002 (Figure 10) peaking in 1998 at 57000 msup3RE The 1998 peak corresponded to increased production in the industry Wood used in this industry is predominantly in the form of logs and poles (975 percent of the total) In 2002 the sheep and beef farming industry spent $15 million on wood products which was 05 percent of their total current expenditure

Figure 10

Sheep and Beef Farming Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

58 Paper Containers Wood use decreased by 20 percent from 1996 and 2002

In 2002 the paper containers industry used a very small amount of New Zealandrsquos total wood use (01 percent) The volume of wood products used by this industry decreased from 53000 msup3RE in 1996 to 42000 msup3RE in 2002 (Figure 11) This industry primarily used other paper and paperboard (70 percent) This product experienced a decrease in use by all industries in 1999 This is illustrated by the dip in the wood use by this industry in 1999 which coincides with the Asian financial crisis In 2002 the paper containers industry spent $793 million on wood products which was two percent of their total current expenditure

Figure 11

Paper Container Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

9

Forestry Flow Account

10

6 Glossary

Exports Goods and services sold (or donated) to residents of other countries

Gross domestic product (GDP) This is a measure of economic activity It is gross in that depreciation is not deducted and domestic in that it covers only national territory There are no deductions for natural resource depletion and environmental degradation The output-based version is the sum of the gross value-added of all resident producers at basic prices plus all taxes (less subsidies) on imports

Imports Goods and services purchased (or donated) from residents of other countries

msup3RE Cubic metres of roundwood equivalent (a unit of measure that allows for different types of forestry products to be compared)

7 References Ministry of Agriculture and Foerstry ldquoExports of Forestry Products for the year ended 30 June 2005 (Provisional)rdquo httpwwwmafgovtnzstatisticsprimaryindustriesforestrytradejune-export-highlightsjune-2005-exportsexport-of-forestry-products-june-2005htm [20 October 2005

New Zealand Institute of Economic Research (2000) Devolving Forest Ownership Through Privatisation

Organisation of Economic Cooperation and Development ldquoThe OECD Environmental Programme indicators to measure decoupling of environmental pressure from economic growthrdquo httpwwwoecdorgdataoecd0521933638pdf [25 August 2005]

ldquoSouth Korean Markets for US Wood Products Shifting Towards Processed Productsrdquo httpwwwcintrafororgRESEARCH_TABlinksFsFS15htm [20 October 2005]

Star amp Lochhead (2002) ldquoChildren of the Burnt Bushrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 121

Wynn (2002) ldquoDestruction Under the Guise of Improvementrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 105ndash106

Forestry Flow Account

42 Wood imports and exports Exports of wood commodities continued to climb while imports declined

New Zealand wood exports increased by 39 percent for the period 1996 to 2002 (Figure 2) Exports dipped slightly in 1999 coinciding with the Asian financial crisis By 2000 the exports to Korea started to recover and the prices of wood products also improved In Korea the three largest end-uses of wood products are residential construction furniture and musical instruments4 In 2001 export log prices continued to increase with demand for logs also increasing

For the period 1996 to 2002 the volume of wood imported into New Zealand decreased by 5 percent (Figure 3) The decline is specifically due to a sizeable drop in imports of other paper and paperboard This coincided with increased domestic production of other paper and paperboard This suggests that New Zealand wais producing sufficient quantities of wood commodities to meet its needs as well as supplying an international market

Figure 2

Total Wood Products Exported

Years ending March 1996ndash2002

02000400060008000

1000012000140001600018000

1996 1997 1998 1999 2000 2001 2002Year

(000)msup3RE

Figure 3

Total Wood Products Imported

Years ending March 1996ndash20025

02000400060008000

1000012000140001600018000

1996 1997 1998 1999 2000 2001 2002Year

(000)msup3RE

4 Information taken from website accessed 201005 httpwwwcintrafororgRESEARCH_TABlinksFsFS15htm 5 Figures 2 and 3 were amended on 20 June 2006 and now display the correct data

5

Forestry Flow Account

5 Total wood use by selected industries 51 Pulp and Paper Manufacturing

Wood use increased by 7 percent from 1996 to 2002

In 2002 the Pulp and Paper Manufacturing industry used the largest proportion of New Zealandrsquos total wood use (34 percent) The volume of wood products used by this industry increased from 9 million msup3RE in 1996 to 95 million msup3RE in 2002 (Figure 4) However this increase was not uniform ndash from 1996 to 1999 the amount of wood used by this industry fluctuated but decreased overall The dip in 1999 coincides with the Asian financial crisis The Pulp and Paper Manufacturing industry used primarily logs and poles (40 percent) this was followed by woodchips (36 percent) In 2002 the pulp and paper manufacturing industry spent $562 million on wood products which was 71 percent of their total current expenditure

Figure 4

Pulp and Paper Manufacturing Industry Wood Use

0

2000

4000

6000

8000

10000

12000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

52 Forestry Logging Sawmilling and Timber Wood use increased by 47 percent from 1996 to 2002

In 2002 the forestry logging sawmilling and timber industry represented 27 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 5 million msup3RE in 1996 to 75 million msup3RE in 2002 (Figure 5) Logs and poles made up the highest percent of wood products used (985 percent) The overall increase in wood use was due to one of main wood product using companies expanding into logging in 2000 which increased the amount of logs and poles used by this industry In 2002 the forestry logging sawmilling and timber industry spent $1289 million on wood products which was 18 percent of their total current expenditure

Figure 5

Forestry Logging Sawmilling and Timber Industry Wood Use

0

2000

4000

6000

8000

10000

12000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

6

Forestry Flow Account

53 Residential Construction Wood use increased 26 percent from 1996 to 2002

In 2002 the residential construction industry used 5 percent of the total amount of wood used in New Zealand The volume of wood products used by this industry increased from 1 million msup3RE in 1996 to 15 million msup3RE in 2002 (Figure 6) The increase in wood use is consistent with an increase in the constructions of new dwellings The residential construction industry primarily used plywood which made up 66 percent of this industryrsquos total wood use In 2002 the residential construction industry spent $659 million on wood products which was 25 percent of their total current expenditure

Figure 6

Residential Construction Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

54 Buildersrsquo Supplies Wood use increased by 50 percent from 1996 to 2002

In 2002 the buildersrsquo supplies industry represented 3 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 05 million msup3RE in 1996 to 08 million msup3RE in 2002 (Figure 7) During the seven year period wood used by this industry continued to steadily increase which corresponds to an overall increase in new building consents issued and increased building activity The buildersrsquo supplies industry primarily used logs and poles (92 percent) In 2002 the buildersrsquo supplies industry spent $119 million on wood products which was 3 percent of its total current expenditure

Figure 7

Buildersrsquo Supplies Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

7

Forestry Flow Account

55 Furniture Manufacturing Wood use increased by 50 percent from 1996 to 2002

In 2002 the furniture manufacturing industry represented 3 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 05 million msup3RE in 1996 to 08 million msup3RE in 2002 (Figure 8) Veneer is the wood product that is primarily used by this industry and made up 61 percent of the total wood use in 2002 From 1997 to 1999 there was a large increase in the amount of veneer used by the furniture and manufacturing industry The second most commonly used wood product by this industry was sawn timber (32 percent) Use of sawn timber in this industry experienced a significant increase between 1999 and 2000 This increase coincided with a national furniture retailer expanding its operation In 2002 the furniture manufacturing industry spent $207 million on wood products which was 30 percent of their total current expenditure

Figure 8

Furniture Manufacturing Industry Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

56 Dairy Farming Wood use increased by 16 percent from 1996 to 2002

In 2002 the dairy farming industry used 02 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased by 16 percent from 55000 msup3RE in 1996 to 64000 msup3RE in 2002 (Figure 9) The increase in wood use corresponds to increased production in the dairy farming industry This industry predominantly used logs and poles (95 percent) In 2002 the dairy farming industry spent $21 million on wood products which was 1 percent of their total current expenditure

Figure 9

Dairy Farming Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

8

Forestry Flow Account

57 Sheep and Beef Farming Wood use has increased by 20 percent from 1996 to 2002

In 2002 the sheep and beef industry used 02 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 43000 msup3RE in 1996 to 51000 msup3RE in 2002 (Figure 10) peaking in 1998 at 57000 msup3RE The 1998 peak corresponded to increased production in the industry Wood used in this industry is predominantly in the form of logs and poles (975 percent of the total) In 2002 the sheep and beef farming industry spent $15 million on wood products which was 05 percent of their total current expenditure

Figure 10

Sheep and Beef Farming Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

58 Paper Containers Wood use decreased by 20 percent from 1996 and 2002

In 2002 the paper containers industry used a very small amount of New Zealandrsquos total wood use (01 percent) The volume of wood products used by this industry decreased from 53000 msup3RE in 1996 to 42000 msup3RE in 2002 (Figure 11) This industry primarily used other paper and paperboard (70 percent) This product experienced a decrease in use by all industries in 1999 This is illustrated by the dip in the wood use by this industry in 1999 which coincides with the Asian financial crisis In 2002 the paper containers industry spent $793 million on wood products which was two percent of their total current expenditure

Figure 11

Paper Container Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

9

Forestry Flow Account

10

6 Glossary

Exports Goods and services sold (or donated) to residents of other countries

Gross domestic product (GDP) This is a measure of economic activity It is gross in that depreciation is not deducted and domestic in that it covers only national territory There are no deductions for natural resource depletion and environmental degradation The output-based version is the sum of the gross value-added of all resident producers at basic prices plus all taxes (less subsidies) on imports

Imports Goods and services purchased (or donated) from residents of other countries

msup3RE Cubic metres of roundwood equivalent (a unit of measure that allows for different types of forestry products to be compared)

7 References Ministry of Agriculture and Foerstry ldquoExports of Forestry Products for the year ended 30 June 2005 (Provisional)rdquo httpwwwmafgovtnzstatisticsprimaryindustriesforestrytradejune-export-highlightsjune-2005-exportsexport-of-forestry-products-june-2005htm [20 October 2005

New Zealand Institute of Economic Research (2000) Devolving Forest Ownership Through Privatisation

Organisation of Economic Cooperation and Development ldquoThe OECD Environmental Programme indicators to measure decoupling of environmental pressure from economic growthrdquo httpwwwoecdorgdataoecd0521933638pdf [25 August 2005]

ldquoSouth Korean Markets for US Wood Products Shifting Towards Processed Productsrdquo httpwwwcintrafororgRESEARCH_TABlinksFsFS15htm [20 October 2005]

Star amp Lochhead (2002) ldquoChildren of the Burnt Bushrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 121

Wynn (2002) ldquoDestruction Under the Guise of Improvementrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 105ndash106

Forestry Flow Account

5 Total wood use by selected industries 51 Pulp and Paper Manufacturing

Wood use increased by 7 percent from 1996 to 2002

In 2002 the Pulp and Paper Manufacturing industry used the largest proportion of New Zealandrsquos total wood use (34 percent) The volume of wood products used by this industry increased from 9 million msup3RE in 1996 to 95 million msup3RE in 2002 (Figure 4) However this increase was not uniform ndash from 1996 to 1999 the amount of wood used by this industry fluctuated but decreased overall The dip in 1999 coincides with the Asian financial crisis The Pulp and Paper Manufacturing industry used primarily logs and poles (40 percent) this was followed by woodchips (36 percent) In 2002 the pulp and paper manufacturing industry spent $562 million on wood products which was 71 percent of their total current expenditure

Figure 4

Pulp and Paper Manufacturing Industry Wood Use

0

2000

4000

6000

8000

10000

12000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

52 Forestry Logging Sawmilling and Timber Wood use increased by 47 percent from 1996 to 2002

In 2002 the forestry logging sawmilling and timber industry represented 27 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 5 million msup3RE in 1996 to 75 million msup3RE in 2002 (Figure 5) Logs and poles made up the highest percent of wood products used (985 percent) The overall increase in wood use was due to one of main wood product using companies expanding into logging in 2000 which increased the amount of logs and poles used by this industry In 2002 the forestry logging sawmilling and timber industry spent $1289 million on wood products which was 18 percent of their total current expenditure

Figure 5

Forestry Logging Sawmilling and Timber Industry Wood Use

0

2000

4000

6000

8000

10000

12000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

6

Forestry Flow Account

53 Residential Construction Wood use increased 26 percent from 1996 to 2002

In 2002 the residential construction industry used 5 percent of the total amount of wood used in New Zealand The volume of wood products used by this industry increased from 1 million msup3RE in 1996 to 15 million msup3RE in 2002 (Figure 6) The increase in wood use is consistent with an increase in the constructions of new dwellings The residential construction industry primarily used plywood which made up 66 percent of this industryrsquos total wood use In 2002 the residential construction industry spent $659 million on wood products which was 25 percent of their total current expenditure

Figure 6

Residential Construction Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

54 Buildersrsquo Supplies Wood use increased by 50 percent from 1996 to 2002

In 2002 the buildersrsquo supplies industry represented 3 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 05 million msup3RE in 1996 to 08 million msup3RE in 2002 (Figure 7) During the seven year period wood used by this industry continued to steadily increase which corresponds to an overall increase in new building consents issued and increased building activity The buildersrsquo supplies industry primarily used logs and poles (92 percent) In 2002 the buildersrsquo supplies industry spent $119 million on wood products which was 3 percent of its total current expenditure

Figure 7

Buildersrsquo Supplies Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

7

Forestry Flow Account

55 Furniture Manufacturing Wood use increased by 50 percent from 1996 to 2002

In 2002 the furniture manufacturing industry represented 3 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 05 million msup3RE in 1996 to 08 million msup3RE in 2002 (Figure 8) Veneer is the wood product that is primarily used by this industry and made up 61 percent of the total wood use in 2002 From 1997 to 1999 there was a large increase in the amount of veneer used by the furniture and manufacturing industry The second most commonly used wood product by this industry was sawn timber (32 percent) Use of sawn timber in this industry experienced a significant increase between 1999 and 2000 This increase coincided with a national furniture retailer expanding its operation In 2002 the furniture manufacturing industry spent $207 million on wood products which was 30 percent of their total current expenditure

Figure 8

Furniture Manufacturing Industry Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

56 Dairy Farming Wood use increased by 16 percent from 1996 to 2002

In 2002 the dairy farming industry used 02 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased by 16 percent from 55000 msup3RE in 1996 to 64000 msup3RE in 2002 (Figure 9) The increase in wood use corresponds to increased production in the dairy farming industry This industry predominantly used logs and poles (95 percent) In 2002 the dairy farming industry spent $21 million on wood products which was 1 percent of their total current expenditure

Figure 9

Dairy Farming Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

8

Forestry Flow Account

57 Sheep and Beef Farming Wood use has increased by 20 percent from 1996 to 2002

In 2002 the sheep and beef industry used 02 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 43000 msup3RE in 1996 to 51000 msup3RE in 2002 (Figure 10) peaking in 1998 at 57000 msup3RE The 1998 peak corresponded to increased production in the industry Wood used in this industry is predominantly in the form of logs and poles (975 percent of the total) In 2002 the sheep and beef farming industry spent $15 million on wood products which was 05 percent of their total current expenditure

Figure 10

Sheep and Beef Farming Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

58 Paper Containers Wood use decreased by 20 percent from 1996 and 2002

In 2002 the paper containers industry used a very small amount of New Zealandrsquos total wood use (01 percent) The volume of wood products used by this industry decreased from 53000 msup3RE in 1996 to 42000 msup3RE in 2002 (Figure 11) This industry primarily used other paper and paperboard (70 percent) This product experienced a decrease in use by all industries in 1999 This is illustrated by the dip in the wood use by this industry in 1999 which coincides with the Asian financial crisis In 2002 the paper containers industry spent $793 million on wood products which was two percent of their total current expenditure

Figure 11

Paper Container Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

9

Forestry Flow Account

10

6 Glossary

Exports Goods and services sold (or donated) to residents of other countries

Gross domestic product (GDP) This is a measure of economic activity It is gross in that depreciation is not deducted and domestic in that it covers only national territory There are no deductions for natural resource depletion and environmental degradation The output-based version is the sum of the gross value-added of all resident producers at basic prices plus all taxes (less subsidies) on imports

Imports Goods and services purchased (or donated) from residents of other countries

msup3RE Cubic metres of roundwood equivalent (a unit of measure that allows for different types of forestry products to be compared)

7 References Ministry of Agriculture and Foerstry ldquoExports of Forestry Products for the year ended 30 June 2005 (Provisional)rdquo httpwwwmafgovtnzstatisticsprimaryindustriesforestrytradejune-export-highlightsjune-2005-exportsexport-of-forestry-products-june-2005htm [20 October 2005

New Zealand Institute of Economic Research (2000) Devolving Forest Ownership Through Privatisation

Organisation of Economic Cooperation and Development ldquoThe OECD Environmental Programme indicators to measure decoupling of environmental pressure from economic growthrdquo httpwwwoecdorgdataoecd0521933638pdf [25 August 2005]

ldquoSouth Korean Markets for US Wood Products Shifting Towards Processed Productsrdquo httpwwwcintrafororgRESEARCH_TABlinksFsFS15htm [20 October 2005]

Star amp Lochhead (2002) ldquoChildren of the Burnt Bushrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 121

Wynn (2002) ldquoDestruction Under the Guise of Improvementrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 105ndash106

Forestry Flow Account

53 Residential Construction Wood use increased 26 percent from 1996 to 2002

In 2002 the residential construction industry used 5 percent of the total amount of wood used in New Zealand The volume of wood products used by this industry increased from 1 million msup3RE in 1996 to 15 million msup3RE in 2002 (Figure 6) The increase in wood use is consistent with an increase in the constructions of new dwellings The residential construction industry primarily used plywood which made up 66 percent of this industryrsquos total wood use In 2002 the residential construction industry spent $659 million on wood products which was 25 percent of their total current expenditure

Figure 6

Residential Construction Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

54 Buildersrsquo Supplies Wood use increased by 50 percent from 1996 to 2002

In 2002 the buildersrsquo supplies industry represented 3 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 05 million msup3RE in 1996 to 08 million msup3RE in 2002 (Figure 7) During the seven year period wood used by this industry continued to steadily increase which corresponds to an overall increase in new building consents issued and increased building activity The buildersrsquo supplies industry primarily used logs and poles (92 percent) In 2002 the buildersrsquo supplies industry spent $119 million on wood products which was 3 percent of its total current expenditure

Figure 7

Buildersrsquo Supplies Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

7

Forestry Flow Account

55 Furniture Manufacturing Wood use increased by 50 percent from 1996 to 2002

In 2002 the furniture manufacturing industry represented 3 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 05 million msup3RE in 1996 to 08 million msup3RE in 2002 (Figure 8) Veneer is the wood product that is primarily used by this industry and made up 61 percent of the total wood use in 2002 From 1997 to 1999 there was a large increase in the amount of veneer used by the furniture and manufacturing industry The second most commonly used wood product by this industry was sawn timber (32 percent) Use of sawn timber in this industry experienced a significant increase between 1999 and 2000 This increase coincided with a national furniture retailer expanding its operation In 2002 the furniture manufacturing industry spent $207 million on wood products which was 30 percent of their total current expenditure

Figure 8

Furniture Manufacturing Industry Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

56 Dairy Farming Wood use increased by 16 percent from 1996 to 2002

In 2002 the dairy farming industry used 02 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased by 16 percent from 55000 msup3RE in 1996 to 64000 msup3RE in 2002 (Figure 9) The increase in wood use corresponds to increased production in the dairy farming industry This industry predominantly used logs and poles (95 percent) In 2002 the dairy farming industry spent $21 million on wood products which was 1 percent of their total current expenditure

Figure 9

Dairy Farming Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

8

Forestry Flow Account

57 Sheep and Beef Farming Wood use has increased by 20 percent from 1996 to 2002

In 2002 the sheep and beef industry used 02 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 43000 msup3RE in 1996 to 51000 msup3RE in 2002 (Figure 10) peaking in 1998 at 57000 msup3RE The 1998 peak corresponded to increased production in the industry Wood used in this industry is predominantly in the form of logs and poles (975 percent of the total) In 2002 the sheep and beef farming industry spent $15 million on wood products which was 05 percent of their total current expenditure

Figure 10

Sheep and Beef Farming Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

58 Paper Containers Wood use decreased by 20 percent from 1996 and 2002

In 2002 the paper containers industry used a very small amount of New Zealandrsquos total wood use (01 percent) The volume of wood products used by this industry decreased from 53000 msup3RE in 1996 to 42000 msup3RE in 2002 (Figure 11) This industry primarily used other paper and paperboard (70 percent) This product experienced a decrease in use by all industries in 1999 This is illustrated by the dip in the wood use by this industry in 1999 which coincides with the Asian financial crisis In 2002 the paper containers industry spent $793 million on wood products which was two percent of their total current expenditure

Figure 11

Paper Container Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

9

Forestry Flow Account

10

6 Glossary

Exports Goods and services sold (or donated) to residents of other countries

Gross domestic product (GDP) This is a measure of economic activity It is gross in that depreciation is not deducted and domestic in that it covers only national territory There are no deductions for natural resource depletion and environmental degradation The output-based version is the sum of the gross value-added of all resident producers at basic prices plus all taxes (less subsidies) on imports

Imports Goods and services purchased (or donated) from residents of other countries

msup3RE Cubic metres of roundwood equivalent (a unit of measure that allows for different types of forestry products to be compared)

7 References Ministry of Agriculture and Foerstry ldquoExports of Forestry Products for the year ended 30 June 2005 (Provisional)rdquo httpwwwmafgovtnzstatisticsprimaryindustriesforestrytradejune-export-highlightsjune-2005-exportsexport-of-forestry-products-june-2005htm [20 October 2005

New Zealand Institute of Economic Research (2000) Devolving Forest Ownership Through Privatisation

Organisation of Economic Cooperation and Development ldquoThe OECD Environmental Programme indicators to measure decoupling of environmental pressure from economic growthrdquo httpwwwoecdorgdataoecd0521933638pdf [25 August 2005]

ldquoSouth Korean Markets for US Wood Products Shifting Towards Processed Productsrdquo httpwwwcintrafororgRESEARCH_TABlinksFsFS15htm [20 October 2005]

Star amp Lochhead (2002) ldquoChildren of the Burnt Bushrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 121

Wynn (2002) ldquoDestruction Under the Guise of Improvementrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 105ndash106

Forestry Flow Account

55 Furniture Manufacturing Wood use increased by 50 percent from 1996 to 2002

In 2002 the furniture manufacturing industry represented 3 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 05 million msup3RE in 1996 to 08 million msup3RE in 2002 (Figure 8) Veneer is the wood product that is primarily used by this industry and made up 61 percent of the total wood use in 2002 From 1997 to 1999 there was a large increase in the amount of veneer used by the furniture and manufacturing industry The second most commonly used wood product by this industry was sawn timber (32 percent) Use of sawn timber in this industry experienced a significant increase between 1999 and 2000 This increase coincided with a national furniture retailer expanding its operation In 2002 the furniture manufacturing industry spent $207 million on wood products which was 30 percent of their total current expenditure

Figure 8

Furniture Manufacturing Industry Wood Use

0

400

800

1200

1600

2000

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

56 Dairy Farming Wood use increased by 16 percent from 1996 to 2002

In 2002 the dairy farming industry used 02 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased by 16 percent from 55000 msup3RE in 1996 to 64000 msup3RE in 2002 (Figure 9) The increase in wood use corresponds to increased production in the dairy farming industry This industry predominantly used logs and poles (95 percent) In 2002 the dairy farming industry spent $21 million on wood products which was 1 percent of their total current expenditure

Figure 9

Dairy Farming Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

8

Forestry Flow Account

57 Sheep and Beef Farming Wood use has increased by 20 percent from 1996 to 2002

In 2002 the sheep and beef industry used 02 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 43000 msup3RE in 1996 to 51000 msup3RE in 2002 (Figure 10) peaking in 1998 at 57000 msup3RE The 1998 peak corresponded to increased production in the industry Wood used in this industry is predominantly in the form of logs and poles (975 percent of the total) In 2002 the sheep and beef farming industry spent $15 million on wood products which was 05 percent of their total current expenditure

Figure 10

Sheep and Beef Farming Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

58 Paper Containers Wood use decreased by 20 percent from 1996 and 2002

In 2002 the paper containers industry used a very small amount of New Zealandrsquos total wood use (01 percent) The volume of wood products used by this industry decreased from 53000 msup3RE in 1996 to 42000 msup3RE in 2002 (Figure 11) This industry primarily used other paper and paperboard (70 percent) This product experienced a decrease in use by all industries in 1999 This is illustrated by the dip in the wood use by this industry in 1999 which coincides with the Asian financial crisis In 2002 the paper containers industry spent $793 million on wood products which was two percent of their total current expenditure

Figure 11

Paper Container Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

9

Forestry Flow Account

10

6 Glossary

Exports Goods and services sold (or donated) to residents of other countries

Gross domestic product (GDP) This is a measure of economic activity It is gross in that depreciation is not deducted and domestic in that it covers only national territory There are no deductions for natural resource depletion and environmental degradation The output-based version is the sum of the gross value-added of all resident producers at basic prices plus all taxes (less subsidies) on imports

Imports Goods and services purchased (or donated) from residents of other countries

msup3RE Cubic metres of roundwood equivalent (a unit of measure that allows for different types of forestry products to be compared)

7 References Ministry of Agriculture and Foerstry ldquoExports of Forestry Products for the year ended 30 June 2005 (Provisional)rdquo httpwwwmafgovtnzstatisticsprimaryindustriesforestrytradejune-export-highlightsjune-2005-exportsexport-of-forestry-products-june-2005htm [20 October 2005

New Zealand Institute of Economic Research (2000) Devolving Forest Ownership Through Privatisation

Organisation of Economic Cooperation and Development ldquoThe OECD Environmental Programme indicators to measure decoupling of environmental pressure from economic growthrdquo httpwwwoecdorgdataoecd0521933638pdf [25 August 2005]

ldquoSouth Korean Markets for US Wood Products Shifting Towards Processed Productsrdquo httpwwwcintrafororgRESEARCH_TABlinksFsFS15htm [20 October 2005]

Star amp Lochhead (2002) ldquoChildren of the Burnt Bushrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 121

Wynn (2002) ldquoDestruction Under the Guise of Improvementrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 105ndash106

Forestry Flow Account

57 Sheep and Beef Farming Wood use has increased by 20 percent from 1996 to 2002

In 2002 the sheep and beef industry used 02 percent of New Zealandrsquos total wood use The volume of wood products used by this industry increased from 43000 msup3RE in 1996 to 51000 msup3RE in 2002 (Figure 10) peaking in 1998 at 57000 msup3RE The 1998 peak corresponded to increased production in the industry Wood used in this industry is predominantly in the form of logs and poles (975 percent of the total) In 2002 the sheep and beef farming industry spent $15 million on wood products which was 05 percent of their total current expenditure

Figure 10

Sheep and Beef Farming Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

58 Paper Containers Wood use decreased by 20 percent from 1996 and 2002

In 2002 the paper containers industry used a very small amount of New Zealandrsquos total wood use (01 percent) The volume of wood products used by this industry decreased from 53000 msup3RE in 1996 to 42000 msup3RE in 2002 (Figure 11) This industry primarily used other paper and paperboard (70 percent) This product experienced a decrease in use by all industries in 1999 This is illustrated by the dip in the wood use by this industry in 1999 which coincides with the Asian financial crisis In 2002 the paper containers industry spent $793 million on wood products which was two percent of their total current expenditure

Figure 11

Paper Container Industry Wood Use

0

40

80

120

160

200

1996 1997 1998 1999 2000 2001 2002Year

(000)m3RE

9

Forestry Flow Account

10

6 Glossary

Exports Goods and services sold (or donated) to residents of other countries

Gross domestic product (GDP) This is a measure of economic activity It is gross in that depreciation is not deducted and domestic in that it covers only national territory There are no deductions for natural resource depletion and environmental degradation The output-based version is the sum of the gross value-added of all resident producers at basic prices plus all taxes (less subsidies) on imports

Imports Goods and services purchased (or donated) from residents of other countries

msup3RE Cubic metres of roundwood equivalent (a unit of measure that allows for different types of forestry products to be compared)

7 References Ministry of Agriculture and Foerstry ldquoExports of Forestry Products for the year ended 30 June 2005 (Provisional)rdquo httpwwwmafgovtnzstatisticsprimaryindustriesforestrytradejune-export-highlightsjune-2005-exportsexport-of-forestry-products-june-2005htm [20 October 2005

New Zealand Institute of Economic Research (2000) Devolving Forest Ownership Through Privatisation

Organisation of Economic Cooperation and Development ldquoThe OECD Environmental Programme indicators to measure decoupling of environmental pressure from economic growthrdquo httpwwwoecdorgdataoecd0521933638pdf [25 August 2005]

ldquoSouth Korean Markets for US Wood Products Shifting Towards Processed Productsrdquo httpwwwcintrafororgRESEARCH_TABlinksFsFS15htm [20 October 2005]

Star amp Lochhead (2002) ldquoChildren of the Burnt Bushrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 121

Wynn (2002) ldquoDestruction Under the Guise of Improvementrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 105ndash106

Forestry Flow Account

10

6 Glossary

Exports Goods and services sold (or donated) to residents of other countries

Gross domestic product (GDP) This is a measure of economic activity It is gross in that depreciation is not deducted and domestic in that it covers only national territory There are no deductions for natural resource depletion and environmental degradation The output-based version is the sum of the gross value-added of all resident producers at basic prices plus all taxes (less subsidies) on imports

Imports Goods and services purchased (or donated) from residents of other countries

msup3RE Cubic metres of roundwood equivalent (a unit of measure that allows for different types of forestry products to be compared)

7 References Ministry of Agriculture and Foerstry ldquoExports of Forestry Products for the year ended 30 June 2005 (Provisional)rdquo httpwwwmafgovtnzstatisticsprimaryindustriesforestrytradejune-export-highlightsjune-2005-exportsexport-of-forestry-products-june-2005htm [20 October 2005

New Zealand Institute of Economic Research (2000) Devolving Forest Ownership Through Privatisation

Organisation of Economic Cooperation and Development ldquoThe OECD Environmental Programme indicators to measure decoupling of environmental pressure from economic growthrdquo httpwwwoecdorgdataoecd0521933638pdf [25 August 2005]

ldquoSouth Korean Markets for US Wood Products Shifting Towards Processed Productsrdquo httpwwwcintrafororgRESEARCH_TABlinksFsFS15htm [20 October 2005]

Star amp Lochhead (2002) ldquoChildren of the Burnt Bushrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 121

Wynn (2002) ldquoDestruction Under the Guise of Improvementrdquo in Environmental Histories of New Zealand eds E Pawson and T Brooking Oxford University Press Victoria Australia 105ndash106