Canadian Forest Service Publications
A market study of New Zealand and Australia. 1995. The Western Canadian Wood Machinery and Services Export Assoc. Natural Resources Canada, Canadian Forest Service, Pacific Forestry Centre, Victoria, BC. Working Paper WP-OI-95.07, copublished by the BC Ministry of Forests.
Issued by: Pacific Forestry Centre
Catalog ID: 4181
Availability: PDF (download)
New Zealand is recognized as an emerging world class forest industry producer. The impressive growth can be attributed to its Radiata Pine plantation resource. With the advantage of the fastest growing Radiata Pine in the world and leading edge management, the country expects to double its annual harvest early in the next century to 28 million cubic meters. Approximately 85% of the plantations are privately owned, with about 50% of the privately owned plantations held by three major forestry companies.
The growth in the New Zealand forest sector will supply opportunities for Canadian suppliers of engineering, sawmill and harvesting equipment. In the consulting services sector, there will be opportunities for Canadian consultants to support Canadian equipment vendors with supply contracts. In the longer term there may be opportunities for Canadian companies to introduce new design/supply companies. The growth in harvest levels is projected to create sawmill equipment opportunities worth approximately CAN $36 million annually for the next 15 years and harvesting equipment opportunities worth CAN $38.5 million per year through to the turn of the century. European companies are the predominant competitors in the New Zealand sawmill sector. Competitors in the harvesting sector are the same as those in Canada. To succeed in New Zealand, Western Canadian companies will have to develop a local presence or business alliance, create an accurate market image for Canadian equipment, and commit marketing support and financial resources.
The forest sector in Australia is geared towards self sufficiency, leading to import replacement and value-added exports. The pine forest plantation harvests are expected to increase by 35% to 12 million cubic meters by 2000, and a further 25% increase to 15 million cubic meters by 2010. The projected growth in the pine harvest will create sales opportunities for consulting services and sawmill and harvesting equipment. Competition in the sawmill equipment sector is predominantly from European and American companies while competitors in the harvesting sector are the same as those in Canada and North America with no distinct market leader.
To penetrate the Australian market, Western Canadian companies need to develop a local presence and/or business alliance, undertake a focused marketing effort to change the Australian misconceptions of Canadian equipment capabilities, and commit marketing and financial resources to create a market identity.