New Zealand’s Sawmills Struggling to Keep Up with Increasing Domestic Demand

According to the New Zealand Timber Industry Federation (NZTIF), a flourishing domestic timber market for residential building and outdoor use has the countries lumber mills struggling to keep up current demand. One producer has gone so far as to completely stop supplying structural timber to some retailers. To meet the surge in domestic demand, some mills are diverting timber set for export back into domestic use. Over the past two years alone, five significantly sized sawmills close down, representing an estimated 400,000 cubic meters of production. The remaining domestic producers are trying to get ramp up their production but are facing strong headwinds in the form of a labor shortage and ever-increasing log prices. On a positive note, New Zealand sawmills have historically been able to supply all of the country’s timber needs with few shortages ever occurring or lasting for long.