Low log prices hurting

28 July 2020

A sharp fall in log prices has raised concerns of job losses but a South Canterbury logging company director believes the industry will recover with minimum damage done. Evan MacClure, a Timaru-based director for Forest Management (FM) said “an estimated 30 per cent drop in price” will impact companies and contractors.

“There’s not an abundance of optimism out there, and it does have an effect but things can turn around very quickly. The market has not the best it’s been, but it certainly is not the worst it’s been over the last 30 years. The short and curly is we’re back in business selling wood, and we’ve got regular ships booked right up to the end of December so that is positive.”

MacClure admitted logging and cartage contractors will be the hardest hit, and jobs could be lost, but this was not currently on the cards. “We’ve got enough intestinal fortitude to continue through the business. We’re a forest owning company, so we’re not burdened with overheads but it will be our contractors that are affected.

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Source: Stuff