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OPINION: Hill Country farmers and foresters have common concerns about regulations and climate change.
Rationalisation of the sawmill industry will continue, says Marty Verry, chief executive of Red Stag Timber, which is building a $60m 'supermill' at Rotorua.
Verry told the ForestWood conference that data analysis showed another 16 mills will close in the next six years – 12 small mills, four medium and one or two larger mills. He was not sure how that played into the 2022 sector strategy of doubling forest and wood production exports (to $12 billion). The trend line of a declining number of mills was well established, but they could still produce more timber and be profitable.
"It is just the story of automation and consolidation happening around the world," he said.
"Some of the risk areas include a drop in building consents – from 2018 they are predicting a big drop off." Some struggling sawmills could get supported if they were part of a forest or bigger operation.
Rapid technology change and rapid uptake of information and technology will be the trend.
"You will see fewer mills.... Those that are surviving would have invested heavily; they will be very competitive and highly automated and productive."
It is not unique to New Zealand: Australian data shows the same consolidation story – sawmills getting larger and more automated.
Since 2006-07 there has been a significant fall in the number of sawmills in Australia, hardwood sawmills falling by 60% and softwood by 25%. Over the past decade their domestic softwood industry has become much more capital intensive and larger in scale.
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
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