Investment in New Zealand Forestry

Southern Forestry Ltd was established to provide a cost efficient, professional and independent service to potential forestry investors in New Zealand. Where required, a "one stop shop" service is available to co-ordinate all your forestry investment requirements.

New Zealand is internationally recognised as providing excellent forestry investment opportunities for investors seeking to secure a profitable and strategic investment in plantation forest growing, processing and wood product marketing. Investors from many countries have played an important role in developing the forest industry in New Zealand by introducing capital, technology and market access. The New Zealand Government is also a strong advocate of the value of foreign investment and has created an environment attractive to international capital. New Zealand has a well-developed, stable and cost-competitive business infrastructure, with low inflation, low energy costs and high labour productivity. Over the past 70 years New Zealander's have become highly skilled in planning, managing, harvesting, processing and marketing our plantation forests. A strong research and trained technical knowledge base is now available.

New Zealand commenced planting plantation forests in the 1930's. It now has around 1.9 million hectares of exotic plantations, approximately 90% of which is Radiata pine and a further 5% of which is Douglas fir. These plantations are currently producing around 20 million cubic metres annually, and this volume is expected to double to 40 million cubic metres over the next 20 years.

New Zealand's sustainably managed plantation forests have allowed self-sufficiency in industrial wood supply, and large and increasing volumes of wood for export. An official "Forest Accord" exists between New Zealand's environmental groups and commercial forestry interests, which ensures extensive protection for natural forests and encourages the further development of plantations. New Zealand plantation forests currently supplies 1% of the world and 9% of the Asia Pacific forest products trade - from just .05% of the world's forest resource and annual harvest equivalent to 0.0009% of the global forest cover.

The plantation forest resource is 92% privately owned with substantial foreign ownership through public listed companies, private companies and overseas individuals. Further foreign ownership is welcomed. Approximately 60% of the log harvest is processed in New Zealand (with approx 70% of the output exported as processed products) with the balance being exported in log form. New Zealand is an important international supplier of sawn timber, wood pulp, paper/ paperboard, and medium density fibreboard.

If you have questions about any aspect of forestry investment in New Zealand, please feel free to approach Southern Forestry for assistance.