New Zealand

Over recent weeks, export log markets have continued to react to oversupply with inventories building and softening prices. This situation of supply being well out of balance with demand is now very pronounced in China and India, and to a lesser extent in Korea and Japan. Irrespective of whether the primary reasons are due to high inventory/slowing demand or pricing being indexed to China, domestic log and processed product prices have decreased across all markets and general trading conditions have become far more challenging than earlier in the year.

High inventory levels in Chinese ports have now converted to a lowering of in-market (CFR) pricing for New Zealand logs. A similar situation occurred this time last year when China was importing what were then record volumes of logs.

Redd Forests, the Australian based carbon project developer, has achieved validation of its Tasmanian Improved Forestry Management projects, the first such projects in the world.

Wanganui hill country farmers have a massive opportunity to use the Emissions Trading Scheme to get a return from their marginal land, Pat Hawinkels says.

"Internationally, the market for carbon is huge and it will just get bigger."

People registering their forests in the Emissions Trading Scheme get money for growing trees, which store carbon.

Registering for the scheme was only complex the first time, he said, and for some the money would keep a marginal farm viable.