New Zealand imports forest and wood products that are not easily produced in its country and though these island nations produce a wide variety of forestry products that meet New Zealand’s needs, imports from the islands have stagnated over the years. For instance, while New Zealand imported about NZ$130 million worth of timber products from China in 2023 alone, the four Pacific Island countries exported a mere NZ$75 million to New Zealand across four years from 2018–2022.
The timber industries in PNG, Fiji, Solomon Islands and Vanuatu are pivotal to their economies, providing employment, revenue, and supporting livelihoods. PNG, boasting extensive forest resources, stands as a leading tropical timber producer, contributing significantly to its economy through exports of raw logs and processed timber, primarily rosewood, kwila and teak.
Fiji’s timber sector, characterised by small-scale logging of mahogany, teak and vesi (Pacific kauri) faces hurdles such as limited processing capacity and vulnerability to climate change. Despite these challenges, Fiji’s commitment to sustainable forestry practices positions it as a potential supplier of high-quality timber products. Similarly, the Solomon Islands, which grows and harvests kwila (or merbau), kauri and rosewood, and Vanuatu, which grows and harvests sandalwood, coconut palm and nangai, both face sustainability and governance-related issues, but are making strides through policy reforms and community-based forestry initiatives.
Sustainability certification key to growth
The New Zealand Imported Tropical Timber Group (NZITTG), is the industry group that represents businesses responsible for importing some 80 per cent of all tropical timbers in New Zealand. The group comprises representatives from New Zealand’s timber importers, wholesalers, retailers, environmental and conservation organisations such as Greenpeace, and the Furniture Association of NZ, with the Ministry of Primary Industries serving as an observer.
This holds significance because the NZITTG charter explicitly outlines one of its goals is to guarantee that all timber imported into New Zealand originates from a third-party certified or verified sustainably managed forest or plantation. Compared with New Zealand’s other import markets such as China and Australia (between them accounting for 41 per cent of timber imports), the island nations have been slow to implement measures for certifying sustainability and traceability. And that is holding back imports into New Zealand from these nations, despite there being considerable demand. NZITTG has indicated that its members would begin purchasing timber from Fiji and other Pacific Islands if it was certified sustainable.
Solomon Islands shows the way
In 2016, timber exports from the Solomon Islands to New Zealand faced a precarious situation since it lacked any independent sustainability certification. Export volumes were declining annually, and New Zealand buyers were hesitant to continue purchases due to the objectives outlined in the NZITTG charter. This scenario prompted the initiation of a plan to overcome the obstacle hindering timber exports. PTI New Zealand (PTI NZ) played a role in the coordination of this plan, which aimed to attain certification for the Solomon Islands timber industry within a two-year timeframe.
This has led to significant strides towards certification attainment and, crucially, has allowed New Zealand buyers to maintain their timber purchases during the plan’s execution. It is also a contributing factor to the robust growth in timber exports from 2017 until now. In 2023, the Solomon Islands led the Pacific Islands in their timber exports to New Zealand, at NZ$10 million – a significant rise from just NZ$4 million in the entire period between 2018–2022. This is 2.8 per cent of New Zealand’s total timber imports.
Downstream processing and value addition
The emergence of certified timber products has seen new investment in the sector in the Solomon Islands, with an increase in downstream processing activity, as in the manufacture of semi-finished and finished products, adding dollar value to the exported merchandise. Such investment underscores a growing commitment to sustainable forest management, offering trade and investment opportunities in these island nations.
The necessity of sustainability certification for the resurgence of timber exports to New Zealand is evident, and the experience of the Solomon Islands serves as a valuable reference for potential strategies that other island nations could adopt. It is important to continue to facilitate discussions, gather insights, and chart a path towards achieving sustainability certification, thus revitalising the islands’ timber export sector.
