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Promotion of Wood and Forest Products in New Zealand. Shaun Killerby. Outline. New Zealand Market History International Promotion Domestic Promotion Emergent Problems New Initiatives. New Zealand Market History. South Pacific islands with a total of 269,000 km 2 of land.
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Promotion of Wood and Forest Products in New Zealand Shaun Killerby
Outline • New Zealand Market History • International Promotion • Domestic Promotion • Emergent Problems • New Initiatives
New Zealand Market History South Pacific islands with a total of 269,000 km2 of land
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
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
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
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
New Forest Planted Since 1919 Source: NZ Forest Owners Association
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
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
Projected Annual Harvest (million m3) Source: Forest Research
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
International Promotion Marketing strengths include: • Product versatility • Product reliability • Softwood equivalence • Fast-growing and renewable • Environmental management • Conservation role
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
International Promotion Market access a major issue: • In-market promotion • Trade liberalisation • Forest certification
Domestic Promotion • Culture of wooden, design-built houses • Substitution and promotion have not been major issues • No significant demand for certified products
Domestic Promotion • Emphasis on technical promotion and tactics • Use of User Guides and Manuals for builders • Lack sophistication regarding understanding and meeting consumer aspirations
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
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
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
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
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
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.