Stronger Forestry Ties With India Driving Export Growth
Forestry, Trade and Investment Minister Todd McClay, today announced at the Fieldays Forestry Hub, both inbound and outbound forestry trade missions with India this year, aimed at strengthening trade links, deepening industry ties, and unlocking greater value for both countries' forestry and wood processing sectors.
'India is one of the fastest-growing markets for our forestry exports – and we're focused on turning that growth into long-term opportunity for New Zealand exporters,' Mr McClay says.
New Zealand's wood exports to India have surged from $9.5 million in 2023 to an estimated $76.5 million this year. Pulp exports have more than doubled, from $20 million to $45.6 million.
'Increased engagement with India is already delivering results. We're now building on that momentum with a targeted sector focus — including hosting an Indian delegation in New Zealand and planning a Minister-led mission to India later this year.'
The inbound visit, supported by industry partners, will showcase New Zealand's world-class forestry systems and sustainable management practices. While the outbound mission will continue to open doors for deeper commercial and government partnerships.
'Our relationship with India is a priority, and forestry is a key part of that. The goal is clear: to grow the market, remove barriers, and drive better returns back to New Zealand's foresters and processors.'
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Stronger Forestry Ties With India Driving Export Growth
Forestry, Trade and Investment Minister Todd McClay, today announced at the Fieldays Forestry Hub, both inbound and outbound forestry trade missions with India this year, aimed at strengthening trade links, deepening industry ties, and unlocking greater value for both countries' forestry and wood processing sectors. 'India is one of the fastest-growing markets for our forestry exports – and we're focused on turning that growth into long-term opportunity for New Zealand exporters,' Mr McClay says. New Zealand's wood exports to India have surged from $9.5 million in 2023 to an estimated $76.5 million this year. Pulp exports have more than doubled, from $20 million to $45.6 million. 'Increased engagement with India is already delivering results. We're now building on that momentum with a targeted sector focus — including hosting an Indian delegation in New Zealand and planning a Minister-led mission to India later this year.' The inbound visit, supported by industry partners, will showcase New Zealand's world-class forestry systems and sustainable management practices. While the outbound mission will continue to open doors for deeper commercial and government partnerships. 'Our relationship with India is a priority, and forestry is a key part of that. The goal is clear: to grow the market, remove barriers, and drive better returns back to New Zealand's foresters and processors.'
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A report commissioned by Beef + Lamb found the returns on forestry land could be twice those of sheep and beef farms - but forestry created fewer jobs Photo: RNZ / Kate Newton Whole farm-to-forest conversions continue, according to a new report released by Beef and Lamb New Zealand. The research, carried out by Orme and Associates on behalf of Beef and Lamb, found close to 40,000 hectares of sheep and beef farms had been sold for forestry since September last year. The report also confirmed 29,518ha had sold in 2023 and 30,483ha in 2024. It brings the total amount of farm-to-forestry conversions since January 2017 to more than 300,000-ha. Beef and Lamb estimates this has resulted in the loss of more than 2 million stock units since 2017. Chair Kate Acland said the data underpinned longstanding concerns about whole farm-to-forestry conversions. "The numbers show whole-farm sales for conversion to forestry for carbon credits are continuing at pace," she said. "What we're really concerned about is whole farms, really good productive land getting planted into trees." The research showed Hawke's Bay, Wellington and Wairarapa remained preferred locations, while Southland had also seen a notable increase. There was a significant slowdown in the Gisborne region, likely due to the environmental impacts of adverse weather events such as Cyclone Gabrielle and tightened harvesting conditions being set by regional councils. Acland said they were not against incorporating forestry within farms, adding if most farmers planted 10 percent of their least productive land in trees, they could still maintain production. "We're very supportive of incorporating trees within farms. and I think there's a real opportunity here for farmers to be part of the solution." This week the government introduced new legislation to restrict farm-to-forest conversions on Land Use Classification (LUC) 1-6 land. Under the changes, which will retroactively take effect from December last year when the policy was originally announced, up to a quarter of farms can be planted in forestry for the Emissions Trading Scheme (ETS). There will also be a ban on full farm-to-forest conversions entering the ETS for actively farmed land and an annual cap of 15,000ha for forestry entering the ETS for lower quality farmland. Acland said while the government putting restrictions around whole farm to forest conversions was positive, she wasn't sure it went far enough. "Anecdotally we're still hearing of a significant number of farms being sold this year, despite the government announcing the limits last year. "We're concerned that some sales are continuing on the basis of intent to purchase land before the limits were announced. We urgently need the government to tighten the criteria around proof of intent to purchase." Additionally, she was particularly concerned about class 6 land, which she said was "some of the most productive sheep and beef breeding country". Acland said carbon forestry had a comparatively "short-term return" when compared to sheep and beef. "I think we need to recognise the importance of the red meat sector for the economy of this country." Wayne Langford. Photo: RNZ/Carol Stiles Federated Farmers national president Wayne Langford echoed some of these concerns, saying the country was approaching critical mass for sheep production. He said the new forestry conversion rules were moving "slowly". "We're gonna see more processing plants close, we're gonna see a lot more communities close down unless we do something about this issue across the country." The legislation is now before Parliament and is to come into force October 2025. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
