Promotion of Wood and Forest
Products in New Zealand
Shaun Killerby
Outline
 New Zealand Market History
 International Promotion
 Domestic Promotion
 Emergent Problems
 New Initiatives
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New Zealand Market History
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South Pacific islands with a
total of 269,000 km2 of land
New Zealand Market History
 About 50-60% of area covered
in indigenous forest in 1840
 Rapid land clearance by
colonists in late 19th century
 A domestic timber famine was
subsequently projected
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New Zealand Market History
 National plantation forest
estate established from 1919
 Fast-growing Pinus radiata the
primary species planted
 Designed to complement the
indigenous forest resource
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New Zealand Market History
Culture of wood use developed
due to:
- Availability and low cost
- Earthquake-prone country
- Education and promotion of
the use of locally grown pine
from the 1930s
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New Zealand Market History
 By the 1960s, plantation grown
timber met most of domestic
demand for sawn timber
 A subsequent planting boom
aimed at export diversification
 The national forest industry
was privatised from 1985
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New Forest Planted Since 1919
100
80
Private
State
Total
000ha
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60
40
20
0
1920
1930
1940
1950
1960
1970
1980
Year to 31 March
Source: NZ Forest Owners Association
1990 1998
New Zealand Market History
 Almost 25% of New Zealand is
still in indigenous forest
 Most of this area has been
reserved since the 1940s
 Forest Accord signed in 1991
 Less than 2% of annual timber
harvest is now indigenous
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New Zealand Market History
 Today there is 1.8 million ha of
commercial plantation forest
 Over 89% of this area is
planted in Pinus radiata
 Annual harvest 18.5 million m3
 Most (70%) of this is exported
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Projected Annual Harvest
(million m3)
30
25
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20
15
10
Export potential
5
Domestic demand
0
1980
1990
2000
Year
Source: Forest Research
2010
International Promotion
 Exports were only a minor
concern before the 1970s
 Shift to export focus
 Competitive environment since
1985, with international market
development a major concern
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International Promotion
Marketing strengths include:
- Product versatility
- Product reliability
- Softwood equivalence
- Fast-growing and renewable
- Environmental management
- Conservation role
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International Promotion
Weaknesses include:
- Three primary markets
- Lack international presence
- Perception of Pinus radiata
- Lack value-added products
- Lack a market-to-productionto-product philosophy
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International Promotion
Market access a major issue:
- In-market promotion
- Trade liberalisation
- Forest certification
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Domestic Promotion
 Culture of wooden, designbuilt houses
 Substitution and promotion
have not been major issues
 No significant demand for
certified products
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Domestic Promotion
 Emphasis on technical
promotion and tactics
 Use of User Guides and
Manuals for builders
 Lack sophistication regarding
understanding and meeting
consumer aspirations
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Emergent Problems
 New housing types and styles
 Proliferation of new products
and systems
 Concerns about variable wood
quality over the past decade
 Declining commitment to wood
 Weather-tightness issue
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Weather-tightness Issue
Convergence of:
- Changes to builder training
- New house types and styles
- New products and systems
- Changes to Building Code
- Inappropriate placement of
untreated kiln-dried timber
- Approval by inspectors
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Weather-tightness Issue
Result:
- Leaking buildings
- Rotting ceilings, walls, decks
- Public concern about the
trustworthiness of wood
- Public concern about the
trustworthiness of the timber
and building industries
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New Initiatives
The emergent domestic problems
highlight the danger of focussing
on just production and supply
Must deliver quality renewable and
environmentally friendly products
+
an integrated customer-focussed
approach to design and delivery
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New Initiatives
 Collaborative research between
forestry, the building industry
and innovative manufacturers
 Development of a joint customer
and futures focus
 Integrated research into highervalue, differentiated products
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Conclusion
New Zealand has successfully
established a national plantation
forest estate which is widely
perceived as versatile, renewable
and environmentally friendly.
But such perceptions can easily be
jeopardised without a consumerfocussed approach to production,
design and delivery.
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