Wood coming out of mature forests was not suitable for post wood and there were no thinnings available in the area, he said.
"We couldn't get wood so we couldn't sell posts," Reid said.
"Everyone is disappointed, including ourselves. It has been a great place for customers to come in and get what they want. We covered everything on the fencing side. There are other post supplies in town but they don't cover as much as we covered.
"We had good customers who have come back to us. We're sorry we can't keep doing that but it's become uneconomic.
"The market is really good at the moment and the cockies have money to spend. In the past we'd be processing five truckloads a week at this time of year and at the moment we can't get any. Or we might get one or two and then nothing for a month."
Pitzac employed four staff. The manager was staying on until the business closed and the other staff have found jobs elsewhere, Reid said.
Bullocks was considering options for the Taupo Quay yard.