China thirsty for NZ's lumber 

Source: ONE NewsPreparing logs

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Demand for many of New Zealand's commodity exports remains weak but logging is booming as it keeps up with demand from China.

The Forestry Industry Contractors Association says demand from China tripled in the month to June, was up over 20% in the quarter and 20% over the year.

The demand is being driven by China's building infrastructure projects and is assisted by China's rise in gross domestic product.

Association CEO John Stulen says the unprecedented demand is also being helped along Russia's decision to place export taxes on its wood.

He says prices remain strong although there is some concern about the rising Kiwi dollar which has been hovering around 65 US cents.

Stulen says while the association agrees with pushes to add value to forestry products, right now it is better off exporting logs.

Stulen says with a fall-off in demand in New Zealand and Australia, it is able to meet China's supply requirements, though there are constraints around logging truck capacity and port capacity.

Finding skilled workers who are keen to work in the bush is also a problem.

"In the past our members have been concerned that boom and bust means you get skilled staff and then you don't have the work for them. But certainly this time it looks like this demand is going to continue for some time (though) it's in the order of months rather than years at this stage," Stulen says.

The association says demand is also being supported by India and Korea.