promotion of wood and forest products in new zealand shaun killerby

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Promotion of Wood and Forest Products in New Zealand Shaun Killerby

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Page 1: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

Promotion of Wood and Forest Products in New Zealand

Shaun Killerby

Page 2: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

Outline

New Zealand Market History

International Promotion

Domestic Promotion

Emergent Problems

New Initiatives

Page 3: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

New Zealand Market History

South Pacific islands with a total of 269,000 km2 of land

Page 4: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

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

Page 5: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

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

Page 6: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

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

Page 7: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

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

Page 8: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

New Forest Planted Since 1919

1920 1930 1940 1950 1960 1970 1980 1990 1998

Year to 31 March

Private State

Total

000ha

100

80

60

40

20

0

Source: NZ Forest Owners Association

Page 9: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

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

Page 10: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

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

Page 11: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

Projected Annual Harvest

1980

30

25

20

15

10

5

01990 2000 2010

Year

Domestic demand

Export potential

Source: Forest Research

(million m3)

Page 12: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

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

Page 13: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

International Promotion

Marketing strengths include: Product versatility

Product reliability

Softwood equivalence

Fast-growing and renewable

Environmental management

Conservation role

Page 14: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

International Promotion

Weaknesses include: Three primary markets

Lack international presence

Perception of Pinus radiata

Lack value-added products

Lack a market-to-production-to-product philosophy

Page 15: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

International Promotion

Market access a major issue:

In-market promotion

Trade liberalisation

Forest certification

Page 16: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

Domestic Promotion

Culture of wooden, design-built houses

Substitution and promotion have not been major issues

No significant demand for certified products

Page 17: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

Domestic Promotion

Emphasis on technical promotion and tactics

Use of User Guides and Manuals for builders

Lack sophistication regarding understanding and meeting consumer aspirations

Page 18: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

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

Page 19: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

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

Page 20: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

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

Page 21: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

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

Page 22: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

New Initiatives

Collaborative research between forestry, the building industry and innovative manufacturers

Development of a joint customer and futures focus

Integrated research into higher-value, differentiated products

Page 23: Promotion of Wood and Forest Products in New Zealand Shaun Killerby

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 consumer-focussed approach to production, design and delivery.