News and views

ForestX Comment

These are exciting times. With Fonterra's and Futurity's announcements we are being given a glimpse of what the future of the forestry industry might look like. We have had a series of local sawmill closures as a result of limited forward demand for timber products. There has been uncertainty over export log prices with waning interest in our major export markets. However, we are being shown alternative paths. Fonterra is using wood fibre for energy as the Government draws fossil fuel exploration in New Zealand to a close. Futurity is showing us new wood based packaging opportunities as plastics are reviewed under the Waste Minimisation Act. Existing businesses in the industry should take note of these new directions and plan for change to stay relevant.