New jobs with increase in wood processing

The Bay of Plenty forestry sector aims to increase wood processing in the area to create new jobs and add more to the local economy.

Currently 60 per cent of the forest products exported through the Port of Tauranga are logs, but a new regional strategy aims to turn that around in the next nine years, processing and adding value to 70 per cent of forestry harvests by 2020.

Lockwood's Bryce Heard launched the new strategy at the opening of the national Forestry Industries 2011 expo and conference in Rotorua yesterday, saying it was based on some "good, hard research" and had wide and positive support within the industry.

"The proposed actions are what makes it different from other reports that have been written then put back on the shelf and there is an action group that will continue to monitor this to make sure it will happen."

Most of those actions revolve around creating an investment-friendly environment and the infrastructure to ensure the Bay of Plenty can gain the greatest economic benefit from the 3.2 to 5.3 million cubic metre a year increase in log harvests expected in the next 10 years.

He said fragmentation of the industry had seen New Zealand fall behind Chile's forestry sector, where processed timber made up almost all wood exports, and it was time to catch up.

"We are looking forward to areas of significant growth in volume, but if we don't do anything with it, this will all go out in log exports. There is nothing wrong with log exports, but someone, somewhere, is going to add value, so why can't it be us?"

Rotorua Mayor Kevin Winters said forestry contributed 20 per cent of the district's gross domestic product and contained 2300 local jobs through its strong growing, harvesting, processing and research sectors.

"Rotorua is well placed to attract future investment in the industry and Rotorua District Council is doing what it can to create economic growth and a long-term future for forestry and wood processing involving iwi, who are now the largest landowners of forestry assets."

Forestry Minister David Carter launched both the Bay of Plenty strategy and the Forestry Industries 2011 expo and conference, running from today to Wednesday, at Rotorua's Energy Events Centre.