Source: New Zealand Government
Good morning, and thank you for the opportunity to speak with you today.
I want to begin by acknowledging the leadership of Mark Ross and Don Hammond, and the Association’s continued commitment to advancing New Zealand’s wood processing sector. Your Value-Added Wood Exports Growth Acceleration Plan is a bold and strategic blueprint — one that reflects the ambition and clarity of purpose this industry is known for.
I also wish to recognise the working group behind the plan’s development. Your efforts serve the more than 42,000 New Zealanders employed across forestry, logging, wood production, and processing — a workforce larger than the urban population of Gisborne. That fact alone underscores the scale and significance of this sector to our national economy.
Forestry and wood processing are not just economic drivers — they are foundational to the prosperity of regional New Zealand. In my own Rotorua electorate and across the country, I see firsthand how thriving businesses in this sector sustain communities, create jobs, and foster innovation.
Navigating Challenges, Seizing Opportunities
We are all aware of the challenges confronting the sector. Plant closures, high energy costs, soft domestic demand, and tariff uncertainty are placing pressure on businesses. These issues are real, and I’ve heard them directly from many of you.
But this industry is resilient. Your commitment to long-term prosperity is evident in the conversations taking place at this very conference. It is through forums like this — where expertise, experience, and vision converge — that we shape the path forward.
The sector’s performance last year speaks volumes. Forestry and wood processing exports rose 9% to $6.3 billion—an increase of $500 million. For the first time, processed wood exports exceeded $1 billion, reaching $1.1 billion—a 27% increase. These are not just numbers; they are signals of momentum and capability.
Looking ahead, the global trading environment and the projected softwood deficit present significant opportunities. With coordinated effort between industry and Government, New Zealand is well-positioned to lead.
Your growth plan aligns with the Government’s objective to double export value over the next decade. It sets out a clear pathway and places business leadership at the centre of accelerating high-value exports. This is a shared vision — one that focuses on processing more forest products onshore to maximise returns and build resilience.
Government Support for Sector Growth
Currently, around 60% of our wood exports are unprocessed. That will remain a vital part of our export mix. But New Zealand is increasingly recognised for its innovation and its ability to deliver high-value food and fibre products. The world demands quality — and we are ready to supply it.
The $47 million Wood Processing Growth Fund is a key enabler. It supports the development of high-value, long-lived wood products — structural timber, furniture, fencing, and landscaping. It helps projects move from concept to execution, creates employment, and strengthens the sector’s capacity.
To date, $11.5 million has been committed to 24 projects nationwide. These investments are not just commercial—they are community-building. Supporting Kiwi businesses means supporting the regions they call home.
Beyond direct investment, we are focused on removing structural barriers to growth. Reforms in the building and construction portfolio are streamlining regulation, making it more proportionate to risk and consistent nationwide.
We are addressing RMA consenting delays through the introduction of a fast-track process and a one-year maximum timeframe for councils to decide on wood processing consents. This will provide greater certainty, unlock investment, and accelerate growth.
Energy costs remain a significant challenge. That’s why I’m encouraged by the sector’s initiatives to improve energy efficiency and supply. Over the past 18 months, more new generation has been commissioned than in the previous 15 years. We remain committed to building a sustainable and affordable energy system that supports industry needs.
Trade, Tariffs, and Global Positioning
My trade and investment portfolio gives me a deep appreciation for how global dynamics affect your businesses.
We are actively working to strengthen New Zealand’s international position. We’ve signed a Cooperation Arrangement with Viet Nam to grow timber exports and remove trade barriers. A Memorandum of Cooperation with India will deepen collaboration and unlock new market opportunities. We are hosting inbound and outbound trade missions to reinforce these ties.
We are also working closely with Australia to align timber production standards and grading processes — enhancing trade and delivering mutual benefits.
These efforts are about placing New Zealand businesses front and centre on the global stage. They are about securing market access, building certainty, and unlocking value.
I understand the concern around tariffs. I remain steadfast in my view that tariffs are detrimental to trade. My officials and I continue to advocate strongly for relief.
We are disappointed by the imposition of a 10% tariff on the majority of New Zealand’s timber exports to the United States. However, we remain hopeful that US builders, manufacturers, and retailers will continue to recognise the quality and reliability of New Zealand timber.
In my engagements with United States Trade Representative Jamieson Greer, I have consistently emphasised the value our timber products bring to the US market — and I will continue to do so.
Closing Remarks
Before I take your questions, let me reaffirm this Government’s commitment to your growth and continued excellence.
This sector is built on hard work, innovation, and leadership. I see those qualities in the faces around this room. You are driving the industry forward—and we are here to support you.
Thank you again for the opportunity to speak today. I look forward to your questions and to continuing our work together.