Physical Flow Account for Resources in New Zealand

1995 – 2000

Statistics New Zealand

October 2002

Environmental Accounts Series Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Acknowledgement Statistics New Zealand would like to acknowledge the contribution made by the following staff members: Alex Bayley, Chase O’Brien and Jodie Wickham. This report was prepared by the Regional and Environmental Statistics Division and published by the Publishing and Library Services Division of Statistics New Zealand.

Statistics New Zealand would also like to acknowledge the assistance of Judith Dennis, Ministry of Agriculture and Forestry.

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2 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table of Contents

TABLE OF CONTENTS...... 3

TABLE OF FIGURES...... 5

A. INTRODUCTION...... 6

A.1 BACKGROUND TO NATURAL RESOURCE AND ENVIRONMENTAL ACCOUNTS...... 6 A.2 BACKGROUND TO FLOW ACCOUNTS ...... 7 A.3 DEVELOPMENT OF THE PROCESSING INDUSTRY IN NEW ZEALAND...... 7 A.3.1 Historical Importance...... 7 A.3.2 Recent Picture...... 8 A.3.3 Future Forecasts...... 11 A.4 OVERVIEW OF FORESTRY PRODUCTS AND RESIDUALS...... 12 A.4.1 Forestry Products ...... 12 A.4.1.1 Logs and Poles...... 12 A.4.1.2 Wood Chips (chipped logs) ...... 13 A.4.1.3 Sawn Timber ...... 13 A.4.1.4 Veneer ...... 13 A.4.1.5 ...... 14 A.4.1.6 Particleboard...... 14 A.4.1.7 Fibreboard ...... 14 A.4.1.8 Chemical ...... 14 A.4.1.9 Mechanical Pulp ...... 15 A.4.1.10 Newsprint ...... 15 A.4.1.11 Other and ...... 15 A.4.2 Forestry Residuals...... 15 A.4.2.1 Wood Chip Residuals ...... 15 A.4.2.2 ...... 16 A.4.2.3 Other Chemical Residuals ...... 16 A.5 OVERVIEW OF FORESTRY AND FORESTRY RELATED INDUSTRIES...... 18 A.5.1 Sheep and Beef Cattle Farming ...... 18 A.5.2 Dairy Cattle Farming...... 18 A.5.3 Forestry...... 18 A.5.4 Other Agriculture, Forestry and Logging ...... 18 A.5.5 Log Sawmilling and Timber Dressing...... 18 A.5.6 Other Wood Product Manufacturing ...... 19 A.5.7 Pulp, Paper and Paperboard Manufacturing ...... 19 A.5.8 Paper and Paperboard Containers...... 19 A.5.9 Printing and Services to Printing ...... 19 A.5.10 Publishing Recorded Media Manufacturing and Publishing...... 20 A.5.11 Furniture Manufacturing...... 20 A.5.12 Other Manufacturing ...... 20 A.5.13 Residential Building Construction...... 20 A.5.14 Non-Residential Building Construction...... 20 A.5.15 Non-Building Construction ...... 21 A.5.16 Other Construction ...... 21 A.5.17 Builders Supplies Wholesaling...... 21 A.5.18 Ownership of Owner-Occupied Dwellings...... 21 A.5.19 All Other Industries ...... 21 B. CLASSIFICATIONS AND DESCRIPTION OF TABLES ...... 22

B.1 CLASSIFICATIONS ...... 22 B.1.1 SEEA Asset Classification...... 22 B.1.2 Industry Classifications...... 22 B.1.3 Commodity Classifications ...... 23 B.2 DESCRIPTION OF TABLES...... 23 B.2.1 Table (i): Supply and Use Summary in Original Units ...... 23 B.2.2 Table (ii): Supply and Use Summary in Cubic Metres of Roundwood Equivalent...... 23

3 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

B.2.3 Table (iii): Supply and Use Industry Breakdown...... 23 B.2.4 Summary Table...... 23 B.2.5 Supplementary Tables...... 23 C. SOURCES AND METHODS ...... 25

C.1 DETAILS OF DATA SOURCES...... 25 C.1.1 Ministry of Agriculture and Forestry Production Statistics...... 25 C.1.2 Statistics New Zealand Physical Trade Statistics...... 25 C.1.3 Statistics New Zealand Economic Datasets ...... 26 C.2 METHODOLOGY...... 26 C.2.1 Supply and Use Summary Table in Original Units...... 26 C.2.1.1 Logs and Poles Production...... 27 C.2.1.2 Wood Chips Production...... 27 C.2.1.3 Sawn Timber and Veneer...... 28 C.2.1.4 Panels Products Production...... 28 C.2.1.5 Pulp, Paper and Paperboard Products Production...... 28 C.2.2 Supply and Use Summary in Cubic Metres of Roundwood Equivalent ...... 28 C.2.2.1 Defining Roundwood Equivalent...... 28 C.2.2.2 Converting Original Units to Cubic Metres of Roundwood Equivalent ...... 29 C.2.3 Supply and Use Industry Breakdown Tables ...... 29 C.2.3.1 Logs and Poles...... 30 C.2.3.2 Wood Chips ...... 30 C.2.3.3 Sawn Timber and Veneer...... 30 C.2.3.4 Panel Products ...... 30 C.2.3.5 Pulp, Paper and Paperboard Products ...... 31 C.2.3.6 Additional Analysis ...... 31 D. INTERPRETING THE SUPPLY AND USE TABLES ...... 32

D.1 AGRICULTURE AND FORESTRY INDUSTRIES ...... 32 D.2 MANUFACTURING INDUSTRIES...... 32 D.3 CONSTRUCTION INDUSTRIES ...... 33 D.4 OTHER INDUSTRIES ...... 33 E. FUTURE DEVELOPMENTS ...... 34

E.1 FUTURE DEVELOPMENTS OF THE PHYSICAL FLOW ACCOUNT...... 34 E.1.1 Refining Existing Estimates ...... 34 E.1.2 Provide Details of the Supply and Use of Bark...... 34 E.1.3 Provide Greater Details Of Residuals in the Industry...... 35 E.1.4 Indigenous And Exotic Products...... 35 F. GLOSSARY ...... 36

G. BIBLIOGRAPHY ...... 39

H. APPENDIX...... 40 Appendix 1: System of Environmental and Economic Accounts Asset Classification ...... 40 Appendix 2: ANZIND 1996 V5.0 ...... 43 I. TABLES ...... 45

4 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table of Figures

Table 1: Harvesting and Production Thinning in Cubic Metres...... 9 Table 2: Use of Logs from Domestic Harvesting and Production Thinning ...... 10

Figure 1: Actual and Forecast Harvest from New Zealand’s Planted Forests...... 11 Figure 2: Flow Of Timber From The Forest To Final Forestry Product, including Use Of Wood Chip Residual...... 17

Summary Table

Supply and Use of Forestry Products and Forestry Residuals (in Cubic Metres Of Roundwood Equivalent, March Years)...... 46

Supplementary Tables

Supplementary Table 1: Selected Forestry Product Exports by Country for the Year Ending March 2000 ...... 47 Supplementary Table 2: Sawn Timber Production By Species (in Cubic metres) ...... 48 Supplementary Table 3: Use of Bark in Co-Generation Power Plants, March Years ...... 49

Annual Tables

Table 1995 (i): Supply and Use Summary in Original Units ...... 50 Table 1995 (ii): Supply and Use Summary (in Cubic Metres Of Roundwood Equivalent) ...... 51

Table 1996 (i): Supply and Use Summary in Original Units ...... 52 Table 1996 (ii): Supply and Use Summary (in Cubic Metres Of Roundwood Equivalent) ...... 53

Table 1997 (i): Supply and Use Summary in Original Units ...... 54 Table 1997 (ii): Supply and Use Summary (in Cubic Metres Of Roundwood Equivalent) ...... 55

Table 1998 (i): Supply and Use Summary in Original Units ...... 56 Table 1998 (ii): Supply and Use Summary (in Cubic Metres Of Roundwood Equivalent) ...... 57

Table 1999 (i): Supply and Use Summary in Original Units ...... 58 Table 1999 (ii): Supply and Use Summary (in Cubic Metres Of Roundwood Equivalent) ...... 59

Table 2000 (i): Supply and Use Summary in Original Units ...... 60 Table 2000 (ii) : Supply and Use Summary (in Cubic Metres Of Roundwood Equivalent) ...... 61

Table 1995 (iii): Supply and Use Industry Breakdown...... 62

Table 1996 (iii): Supply and Use Industry Breakdown...... 63

Table 1997 (iii): Supply and Use Industry Breakdown...... 64

Table 1998 (iii): Supply and Use Industry Breakdown...... 65

Table 1999 (iii): Supply and Use Industry Breakdown...... 66

Table 2000 (iii): Supply and Use Industry Breakdown...... 67

5 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

A. Introduction

A.1 Background to Natural Resource and Environmental Accounts Statistics New Zealand, in association with the Ministry for the Environment, is currently preparing stock and flow estimates for five of New Zealand’s significant natural resources: forestry, fishing, water, land and subsoil resources. Technically, the physical estimates are referred to as natural resource accounts, while the monetary estimates are referred to as environmental accounts. However, these terms are often used interchangeably. The initial impetus to begin compiling natural resource and environmental accounts came about as a result of decisions stemming from the Budget 2000, where it was decided that more information was required on the complex relationship between the economy, environment and society.

Natural resource and environmental accounts are based on an international framework called the System of Environmental and Economic Accounts (SEEA). This framework is an extension of the System of National Accounts (SNA), which Statistics New Zealand uses to compile the national accounts, including Gross Domestic Product (GDP). The SEEA is designed to measure the use of natural resources and the resulting effects on the environment.

The release of natural resource and environmental accounts reflects an international trend towards compiling information beyond the traditional measures of economic activity. The accounts reflect the view that the environment has a finite capacity to supply materials and absorb the wastes produced when these materials are used in economic activities. The aim of the flow accounts is to measure this supply of natural resources, how they are used, and the residuals being produced that the environment must absorb.

This report provides physical information on the flow of forestry products in New Zealand from 1995 to 2000. The main tables in the report are presented in cubic metres of roundwood equivalent.1 The account shows the supply and use of forestry products throughout the economy. This work is linked to the forestry physical stock account, which was published earlier this year by Statistics New Zealand,2 because the harvested volume from the physical stock account is the source of wood that is analysed in the forestry flow account. The flow account also estimates the further processing and consumption flows of harvested wood.

Future work on the forestry resource accounts will include the monetisation of both the physical stock and physical flow accounts, where a monetary value will be assigned to the physical stocks and flows of forestry resources. These will be produced as separate development reports. While each account is useful in its own right, more meaningful analysis will be possible as more components of the forestry account are completed. For example, once the forestry monetary tables are available, it will be possible to make comparisons between the physical and monetary stocks and flows. This will show, among other things, the ‘price’ of various wood products (in roundwood equivalents) as they are bought and sold throughout the economy. The full forestry

1 The use of consistent units is generally preferred for analytical and comparison purposes. Producing such tables requires converting data from their original units (such as cubic metres, tonnes and bone dry units) into roundwood equivalents. The main summary tables for each year are provided in both original units and consistent units. 2 [http://www.stats.govt.nz/domino/external/web/prod_serv.nsf/Response/Forestry+Natural+Resource+Accounts].

6 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

account, including estimates for the physical and monetary stocks and flows, using the SEEA framework is useful as it allows comparisons to be made with other countries about the availability and use of forestry. The SEEA is used by many countries, including Australia, Canada, Japan, the Philippines, and the United Kingdom.

A.2 Background to Flow Accounts For more background information on New Zealand natural resource accounting, the SEEA and the SNA, see the report ‘Natural Resource Accounts for New Zealand – Overview’ available from Statistics New Zealand.

A.3 Development of the Wood Processing Industry in New Zealand

A.3.1 Historical Importance3 Mäori realised the value of wood as both a source of shelter and heat as early as the 14th century. It was their extensive use of wood for these purposes, as well as the use of fires to promote bracken fern growth as a food source, which led to the first clearances of large areas of indigenous forest that shaped the early New Zealand landscape. When the Europeans arrived, they too set about clearing large areas of forest in the name of progress, converting forest to farmland. It is estimated that both Mäori and European settlers cleared about one-third each of the country’s native forest, although the clearances by European settlers occurred in a much shorter timeframe. Forest Research estimate that only 10 percent of the timber cleared by European settlers was ever used, most timber being lost in the large-scale fires used to clear land.

It was these early European settlers who were the first to establish what is now known as the ‘wood processing industry’ in New Zealand. Of greatest significance was the establishment of the export market to meet demands for kauri timber overseas, particularly for boat building. Forest Research note that in 1853, the peak year, forest products accounted for 31 percent of all New Zealand’s exports. There was also intensive logging of the kauri forests in Northland for industries in Auckland and large scale deforestation in the Manawatu-Wanganui region to supply new markets in Wellington. The veneer and plywood industries were soon established to meet this increasing demand for high quality timber products.

Throughout the 19th century the removal of native forest continued at a prolific rate. However, it became clear that the forests were showing serious states of decline, largely caused by the clearance of forests to provide farmland, of which timber was a by-product. But it was not until the turn of the century that the colonists began to realise that burning the forest may have an economic impact due to perceived timber shortages in some areas. So in a number of these areas the indigenous forests were supplemented by the planting exotic tree species. Exotic stands had been planted as early as the 1870s, though on a small scale. It was partly due to this need for guaranteed wood supply and partly due to government incentives that introduced conifers were extensively planted in the 1920s and 1930s. From a commercial standpoint, the faster growing exotic species were better able to supply the domestic demand for wood than indigenous forests, which took far longer to regenerate.

3 Information for the ‘Historical Importance’ section is taken from “Environmental Histories of New Zealand”, “The State of New Zealand’s Environment, 1997” report, the “New Zealand – A Regional Profile” report and the [www.insights.co.nz] website. See bibliography for full details. 7 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Initial plantings included a number of exotic species, but radiata pine soon became the species of choice. Its characteristics of rapid growth, straightness of stem, limited waste, and the versatility in its use meant that it met most of New Zealand’s domestic needs. By the 1960s the domestic market had become self-sufficient, once this had been achieved the focus shifted to growing timber to meet the demands of world markets as well. Indeed, the large-scale plantings of the 1970s and 1980s were primarily in response to this perceived overseas supply opportunity. The sustainable supply of domestic wood also gave rise to the development and growth of the pulp and paper industries, which had become firmly established by the 1950s. Although the importance of radiata pine grew, there was still a high demand by the construction industry for rimu, due to price controls being in place till the 1970s, which made rimu very price competitive for house framing. This demand continued to cause pressure on the indigenous forest resource.

The current indigenous forestry management regime, and the corresponding role of indigenous timber in the wood processing industry, first began to take shape with the Forests Act 1949. Part of this Act set out the framework, which strengthened by more recent amendments, outlined the necessary provisions to control the logging of indigenous forest. The Forests Act 1874 had earlier attempted to control the rate of destruction of indigenous forest, but the legislation was soon repealed as it was hindering development in rural areas. Though the Forests Act 1949 placed an emphasis on the sustainable use of indigenous forest stocks, timber from indigenous forests continued to play the major role in New Zealand’s wood industries until the 1950s when timber from exotic plantations, reaching a harvestable age, superseded it.

The Ministry of Agriculture and Forestry (MAF) has monitored the fall in the percentage of total timber production sourced from indigenous forests during the second half of the 20th century. MAF observes that in 1954 52 percent of total timber production was from indigenous forests, and in 1960 this had dropped to 36 percent. By 1990 indigenous forests comprised less than 5 percent of total timber production in New Zealand. This sharp decline was partly due to the abundance of exotic timber, and partly due to stricter controls on the harvesting of indigenous forests through legislation and agreements between forest owners and environmental groups and agencies. These include the 1986 West Coast Accord, followed in 1991 by the New Zealand Forest Accord, Resource Management Act 1991, and the Forests Amendment Act 1993. The Forests (West Coast Accord) Act 2000 superseded the 1986 West Coast Accord and effectively put an end to native logging on the West Coast of the South Island. Some sustainable harvesting of beech on Mäori and private land was, however, permitted to continue.

While the significance of indigenous timber in the wood processing industries fell increasingly during the second half of the 20th century, the radiata pine plantations were growing in size and maturity. As the pine reached a harvestable age, the volume of roundwood available to the wood processing industry increased. With the increase in sawmilling came an increase in sawmill residuals, mainly in the form of slabwood and , which until this point had been disposed of as waste. The desire to utilise these ‘waste products’, and the recognition of the growth in the domestic and international markets for board and panel products, particularly medium density fibreboard (MDF), saw the establishment of reconstituted panel product industries. The process involved the reduction of the sawdust and offcuts to wood particles and wood fibres, which were then combined with an adhesive before being pressed into sheets to form particleboard and fibreboard respectively.

A.3.2 Recent Picture Timber from indigenous trees is now only available from forests with a sustainable management plan approved by the MAF Indigenous Forestry Unit (IFU). A sustainable management plan

8 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

identifies the method for harvesting individual trees, or small groups of trees, while retaining the natural values of the indigenous forest area in question. The IFU also monitors and approves annual logging plans for these forests, which impose strict limits on the number of trees that can be felled. Sawmillers may only mill indigenous logs sourced from these forests, and must register with the IFU prior to milling.

While the volume of roundwood harvested from exotic forests continued to rise during the last century, the most rapid increase occurred during the 1990s. Table 1 below that takes harvesting and production thinning figures from the physical stock account reflects this recent growth. See also Figure 1 on page 11 for a graph of the time series of historical harvesting in New Zealand.

Table 1: Harvesting and Production Thinning in Cubic Metres

1995 1996 1997 1998 1999 2000 m3 RE m3 RE m3 RE m3 RE m3 RE m3 RE

Radiata Pine 13,638 14,552 14,199 14,954 15,091 16,168 Douglas-Fir 622 739 733 720 803 842 Other 869 1,209 959 966 637 764

Total Exotic 15,129 16,500 15,891 16,640 16,531 17,774

Total Indigenous 180 128 65 99 99 54

Total Harvesting 15,309 16,628 15,956 16,739 16,630 17,828

Source: SNZ physical stock account, originally from MAF statistics

Approximately one-third of all roundwood currently harvested is directly exported as logs. Of the roundwood entering domestic markets, over 80 percent is processed in the manufacture of wood products by New Zealand’s wood processing industries. The remainder is purchased as various roundwood products by other industries. This data comes from the physical flow account and is summarised in the Table 2 on page 10.

The wood processing ‘industry group’4 accounted for 3.1 percent of New Zealand's GDP in the year ended March 19975 (all figures in this paragraph are based on current price data). The corresponding ratio for the year ended March 1987 was 2.7 percent.6 The forestry and logging industry contribution to GDP increased from $0.453 billion in 1986/87 to $1.211 billion in 1996/97. The forthcoming monetary stock and monetary flow accounts will provide more detailed analysis of the role and importance of the forestry, logging and wood processing industries in terms of the New Zealand economy.

The importance of the wood processing ‘industry group’ in terms of employment should also be noted. Figures from the 2001 Census of Population and Dwellings show that: 6,117 people were

4 The forestry and logging, saw milling and timber dressing, veneer and plywood manufacturing, panel manufacturing and pulp, paper and paperboard manufacturing industries. 5 1997 is the latest year in which a detailed industry breakdown of the contribution to GDP is available. 6 In 1986/87 the industry group’s GDP was $1.048 billion and total GDP was $55.848 billion. In 1996/97 the figures were $1.775 billion and $96.911 billion, respectively. 9 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

employed for over 30 hours a week in the forestry and logging industries; 7,521 people in the saw milling and timber dressing industry; 1,596 people in the veneer and plywood manufacturing industry; 714 people in the reconstituted panel industry; and 5,646 people in the ‘pulp, paper, and paperboard manufacturing industry’. The total number of employees in the forestry and wood processing industries constitutes 1.6 percent of the New Zealand’s full-time labour force.

Table 2: Use of Logs from Domestic Harvesting and Production Thinning

1995 1996 1997 1998 1999 2000 m3 RE m3 RE m3 RE m3 RE m3 RE m3 RE

Log Exports 4,762 5,609 5,469 5,594 4,803 5,806 Logs processed by domestic wood 8,675 9,091 8,626 9,167 9,727 9,888 processing industries Logs purchased directly by other 1,872 1,928 1,861 1,978 2,100 2,134 domestic industries

Total Log Supply 15,309 16,628 15,956 16,739 16,630 17,828

Notes: Total Log Supply is the total domestic production of logs from the supply flow table (ie excluding imports). All the components of the table are taken from the flow account Use tables, with the ‘logs processed by domestic wood processing industries’ category adjusted by removing imports (to make the table balance, the Use data also has to exclude imports). ‘m3 RE’ is an abbreviation for cubic metres of roundwood equivalent, a derived measurement used to compare different wood products. See section C.2.2.1 for more detail.

Forestry products also play a major part in New Zealand’s merchandise trading with the rest of the world. Statistics New Zealand overseas trade data shows that the total value of exports in 2000 was $2.8 billion, or 12.2 percent of total exports. MAF observed from 2001 export data that approximately two-thirds of New Zealand’s forestry export by value went to Japan, Australia, and Korea. This proportion rose to three-quarters when the United States were included. See Supplementary Table 1 on page 46 for further details of wood product exports for 2001.

Overseas trade data put the total value of imports of forestry products in 2000 at $1.1 billion. This equates to 3.8 percent of New Zealand’s total imports (cif). The major forestry products imported into New Zealand are paper and paperboard products and to a lesser extent a number of secondary processed products which are outside the scope of the flow account, such as manufactures of paper, mouldings and wooden furniture and furniture parts. For the year 2001, these products combined made up 92.6 percent of the total value of forestry imports. Overseas trade data shows that forestry imports have risen 54.2 percent between the years 1995 and 2001. Despite the abundance of available wood in New Zealand, the steep increase in imports is mainly due to two reasons. Radiata pine, while suitable for many uses, does not meet all requirements. This is especially true for the furniture industry, where the decline of available indigenous timber

10 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

has led to the demand for hardwoods grown overseas in the construction of high quality furniture. Secondly, overseas producers can meet the demand for specialist high quality , especially for printing and photography, more cheaply due to their economies of scale in production.

A.3.3 Future Forecasts MAF has conducted a significant amount of research into forecasting the supply of the forestry resource. Figure 1, based on this research, shows the historical and forecasted picture of harvesting in New Zealand’s planted forests. It is taken from the National Exotic Forest Description, national and regional wood supply forecasts document.

The wood supply forecasts shown in the graph include actual harvest data from 1951 to 2000. The increase of annual recoverable volume between 1989 and 2005 is due to harvesting of the large-scale plantings that took place in the early 1970s to mid-1980s. These harvesting forecasts are based on existing commercial forests reaching harvestable age, so the amount of timber available for harvesting can be predicted fairly accurately. The main question will be whether the timber is actually harvested as it becomes available.

Figure 1: Actual and Forecast Harvest from New Zealand’s Planted Forests

Notes: 1. The vertical line indicates the beginning of the forecasts (2000). 2. Source of actual harvest volumes: 1997 New Zealand Forestry Statistics (1951 to 1996), Ministry of Agriculture and Forestry, 1998. Statistical Release 17/2000 (1997 to 2000), Ministry of Agriculture and Forestry, 2000

The base cut line in the table represents the forecast using current harvesting regimes, while the early and late cut depict the upper and lower limits of the predicted forecasts, respectively. The harvest age of trees in the base cut scenario is 28 years, while the early cut is 25 years, and late cut 35 years.

11 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

MAF notes that the current views suggest that the actual harvesting age is likely to fall between the base cut and late cut scenarios in the short to medium term due to market demand, labour, capital and infrastructure constraints.

The predicted increase in wood available to the industry has already seen wood processing companies begin to upgrade existing mills and plants, and to invest in the creation of new ones. However, the investment environment in New Zealand has not been sufficiently favourable to create a wood processing capacity that can fully utilise the potential harvest. Log exports are also predicted to rise sharply, as more timber will become available than can be processed domestically, even if new wood processing plants are established (Springall, 2002).

A.4 Overview of Forestry Products and Residuals The commodities chosen to be included in the forestry flow accounts were determined both by conceptual and practical factors.

Conceptually, the principle behind the forestry flow accounts is to show how the harvested timber volumes, reported in the physical stock account, are being used in the economy, together with details of any residuals that are created during the process. This is consistent with SEEA guidelines on forestry flow accounts. All commodities were therefore identified which show the flow of all harvested timber from when it is first removed from the forest to when it is first sold as a finished good, and the main residuals that are created.

Practical factors determined the final list of commodities to be included. The practical factors mainly hinged on the availability of accurate and timely data to enable a complete picture of the supply and use of the given commodity to be produced.

The flow account is based on the commodity classification MAF uses for its forestry production statistics. This meets both the conceptual and practical requirements of the forestry account. On the conceptual side, the classification covers the forestry products relevant to New Zealand. Other forestry classifications exist, but on the practical side the MAF data provides the best source for New Zealand forestry volume data. Some residual commodities were also added to the commodity set used in the forestry account. Commodities have been further categorised in the flow tables ‘forestry products’ and ‘forestry residuals’.

There is sufficient data available to enable full coverage of forestry product flows to be reported. However, there is little volume or monetary data available for forestry residuals. The main residuals have been identified in the table without volume information with the intent that they will be analysed in future releases.

A.4.1 Forestry Products

A.4.1.1 Logs and Poles Logs are the primary commodity taken from forests, and from where virtually all other wood products are derived. Nearly two-thirds of all logs harvested remain in New Zealand for further processing or are directly purchased by industries such as the construction industry. One-third are exported directly.

12 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

MAF also identifies three types of ‘log product’, which are also known as roundwood products. The three types are poles, posts and . Roundwood products resemble logs and are used without further conversion.

Poles are perhaps the most valuable roundwood products. They are used by a variety of industries and for a variety of uses including building foundations and retaining walls, marina piles, and telegraph poles. Poles are used in some New Zealand houses as the main structural support.

Posts have a lower value due to their size. Again, they are used by a variety of industries for a variety of uses including agricultural and forestry fencing, horticultural structures, and for domestic household use.

Poles and posts are produced by removing the bark and some surface wood, mainly bumps and swellings, from the trunk and larger branches of felled trees. Most poles and posts are then treated with preservatives to protect them against insect and fungal attack.

Firewood is of only minor importance in New Zealand when compared internationally, where it is used extensively for both domestic and industrial heating and cooling.

A.4.1.2 Wood Chips (chipped logs) Wood chips, in the form of chipped logs, are an important input into both the pulp and the reconstituted panel product industries.

Small logs, chipped at specialist chip mills are purchased by the ‘other wood product manufacturing’ industry where they are reduced to wood particles or wood fibres in the production of particleboard and fibreboard. Chipped pulp logs are purchased from chip mills by the wood pulp industry for the production of chemical and mechanical pulp.

Wood chips are also produced as a residual from the manufacture of other wood products, such as sawn timber. See section A.4.2.1: Wood Chip Residuals for more information.

A.4.1.3 Sawn Timber The sawn timber industry involves the production of products from saw logs. Saw logs are higher quality logs that exhibit the qualities necessary to produce solid wood finished goods for a variety of uses. Sawn timber is graded based on the following: appearance, its visual quality; structural qualities, its strength and stiffness; and cutting qualities, the use of clear length between whorls and knots. The grading of timber will determine its final use. The highest visual quality lengths may be used in the manufacture of wooden furniture and mouldings, while a low visual, but high structural graded length, may be used as hidden framing for furniture, or for wall framing, , etc by the construction industry.

A.4.1.4 Veneer Veneer is manufactured by either peeling or slicing high quality peeler logs to produce thin sheets. In New Zealand most veneer production is from radiata pine logs, which are soft and pliable and do not require preconditioning. Veneer in New Zealand is produced by a small number of specialist veneer manufacturers and is either exported as veneer or sold on to be used in the production of plywood or (LVL).

13 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

A.4.1.5 Plywood Under the MAF commodities, used in the forestry flow accounts, plywood includes both plywood products and LVL products.

Plywood is produced by gluing together one or more sheets of veneer to both sides of a veneer or solid wood core, while alternating the grain between sheets. This basic construction makes plywood ideal for use in the construction industry for bracing walls, as it is able to withstand large racking forces, such as earthquakes.

LVL manufacture is similar to plywood. The difference lies in the thickness of the individual veneer sheets used and the way that the sheets are laid with the grain following the same direction in consecutive sheets. Sheets are then laminated to improve the overall strength by dispersing the weakness caused by defects, such as knots, across a wider area. LVL is primarily used in the construction of beams, i- flanges, scaffold planks and trusses because of its strength and stiffness properties.

A.4.1.6 Particleboard Particleboard is a reconstituted wood composite product that is made from wood particles, as opposed to wood fibres or sheets of wood. Particleboard includes a variety of different individual products including flakeboard, , and oriented strand boards. These products are primarily used in structural applications in the construction industry, such as wall bracing and flooring.

The development of particleboard manufacture arose from the desire to utilise waste and residuals created in the manufacture of other wood products, such as sawn timber offcuts and planer shavings; these are classified as wood chip residuals in the forestry flow accounts. Particleboard is traditionally manufactured from coniferous wood, but may use a number of non- wood fibres such as linen flax shives, bamboo, and jute. Non-wood fibres currently account for approximately 5 percent of input material.

A.4.1.7 Fibreboard Fibreboard is a reconstituted wood composite product similar to particleboard, but is generally produced from low-grade wood and some residuals. These inputs are reduced to (as opposed to particles), which is then bonded with resin to produce board and sheet products.

The most common fibreboard product is medium density fibreboard (MDF). However, some and softboards are also manufactured. MDF is primarily used in joinery and furniture making. It has a uniform density, smooth surface and edge when cut due to the minute fibre size, making it ideal for use by these industries. Radiata pine is the principal wood used in the production of MDF in New Zealand.

A.4.1.8 Chemical Pulp Pulp, either chemical or mechanical, is the basic material used in the production of paper and paperboard products. The pulp is mixed with water and spread in thin sheets. When the water is then removed essentially what is left is paper. In practice a number of other materials are added to improve the surface, strength, and other qualities of the paper.

Chemical pulp is either manufactured from pulp logs chipped at the pulp mill or from residual chips purchased from other wood product manufacturers. Processing the chips by different

14 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

methods results in a variety of different types of pulp. Soda pulp is the original method, usually made from deciduous wood chips and produces relatively soft, bulky paper that is used in books, magazines, and envelopes. Sulphite pulp is made from softwood chips that are less resinous and produces stronger, longer and more pliable paper. The third main type of chemical pulp is sulphate pulp, also referred to as kraft pulp. This is an advanced form of the soda pulp process and is suitable for most types of wood chip. It is used to produce paper where strength and resistance to wear and tear are essential qualities, such as paper sacks and bags.

A.4.1.9 Mechanical Pulp Mechanical pulp is made by grinding pulp logs, mainly low-density softwoods, against a revolving abrasive stone. Due to the process involved, paper made from mechanical pulp tends to be denser than paper made from chemical pulp, making it particularly suitable for use in the printing industries.

A.4.1.10 Newsprint The majority of newsprint is produced from mechanical pulp, although small amounts of chemical pulp are added to the mix to increase paper strength. Newsprint manufacture is a basic speedy process that allows large low-cost volumes to be produced at a high rate (600–700 metres per minute on wide machines). Blue dye is sometimes added to enhance the 'whiteness'.

A.4.1.11 Other Paper and Paperboard Paper and paperboard products are produced by the addition of a variety of materials to a base material, usually chemical pulp. These additions include ‘sizing’ agents that are used to give the paper a smooth even surface, pigments and bleaches used to colour the paper, and clays that are used to coat the paper.

While there are several hundred specific paper and paperboard products, they are generally grouped into seven broad groups. Newsprint is one and has been included as a separate commodity in the physical flow account. The other main groups are: writing paper, greaseproof paper, wrapping paper, tissue paper, , and corrugated boards. Each will have a differing ‘recipe’ depending on the qualities expected of the finished product.

A.4.2 Forestry Residuals MAF estimates that approximately 15 percent of a tree is left in the forest after felling. This is comprised of the stump, smaller branches and foliage. While this could be considered a residual of the timber industry, it is also an important component of the sustainable forestry ecosystem through the recycling of nutrients back to the soil for future cultivation. This is not analysed further in the flow account.

While the wood processing industry effectively utilises the total volume of wood removed from the forest, it should be noted that some of this utilisation is through the use of residuals of certain elements of the industry. These have been included in the supply and use table to show where they occur and their significance.

A.4.2.1 Wood Chip Residuals Wood chip residuals are a collective term used to describe the wood waste pertaining to the wood processing industry. Residuals include offcuts, slabwood, planer shavings, and sawdust. These

15 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

residuals are collected up and either used internally or sold to other manufacturers in the production of particleboard, fibreboard, and wood pulp.

A.4.2.2 Black Liquor Black liquor is the liquid material that remains after pulp logs are cooked in the production of chemical pulp. It contains approximately 70 percent wood component and is burnt as an energy source within the pulp industry. It has not been included in the current flow tables due to a lack of available data, but may feature in future releases.

A.4.2.3 Other Chemical Residuals There are also a significant number of other chemical derivatives produced by the various wood processing industries with end uses as varied as liquid fuels, explosives, pharmaceuticals, food products and paints. While these products have not been measured in the flow accounts, due to lack of available data, their future inclusion would help complete a full picture of the flows within the wood processing industry.

16 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Figure 2: Flow of timber from the forest to final forestry product, including use of wood chip residuals

Smaller branches, stumps, and foliage left in the forest that re- Harvested Trees enter the forest ecosystem

Export Logs and Wood Chips Trunk and larger branches removed from forest

Peeler Logs Saw Logs Small Logs Pulp Logs

Veneer Sawn Poles, Posts, (this can be both a Timber and final product and an Firewood intermediary stage)

Wood Chips Wood Chips (chipped logs) (chipped logs) Plywood

Wood Chip Residuals

Particleboard Fibreboard Chemical Mechanical Pulp Pulp

Black Liquor Residual flows Other Paper Newsprint A double border has been and used to signify a final Paperboard product

17 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

A.5 Overview of Forestry and Forestry Related Industries The forestry flow account identifies industries that are either directly involved in forestry and wood processing or whose principal business is not forestry or wood processing, but who play a significant role in the supply or uses of forestry products. These industries are included to show which sectors of the economy are supplying and using forestry products to give a clearer understanding of what happens to timber after it has been removed from the forest.

All industries have been classified according to a standard industry classification (ANZIND 1996, see section B.1.2: Industry Classifications and appendix 2: ANZIND 1999 V5.0 for further details). In order to ensure all transactions involving forestry products and residuals are reported, new categories have been created in the flow accounts for industries that are not included individually.

A.5.1 Sheep and Beef Cattle Farming This industry supplies logs from farm forests. It uses forestry products in many ways, with a major use being posts for fencing.

Primary activities in this industry are: • Farming including sheep, beef cattle. • Other activities include; prime lamb raising, wool growing, raw sheep milk production and beef cattle feedlot operation.

A.5.2 Dairy Cattle Farming As with sheep and beef cattle farming, owners here may have areas of forest on their land that are harvestable for logs, and will also use a variety of forestry products such as posts for fencing.

Primary activities in this industry are: • Dairy cattle farming. • Raw cattle milk production.

A.5.3 Forestry The forestry industry is engaged in the growing and maintenance of standing timber, both in exotic plantations and native forests. It is the principal supplier of logs and poles that are then used by other industries for the manufacture of forestry products.

A.5.4 Other Agriculture, Forestry and Logging This category includes all other agricultural, forestry and logging industries (see appendix 2). It also includes services to forestry and agriculture including agricultural fencing contractors, fishing industries, and a range of other agricultural industries including: fruit and vegetable growing; grain growing; poultry, horse, deer and pig farming.

A.5.5 Log Sawmilling and Timber Dressing This industry is one of the main users of logs, which are used as an input to produce sawn timber and wood chips.

18 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Primary activities in this industry are: • Manufacturing of; rough sawn timber including sleepers, palings, and scantlings, resawn timber from logs sawn at the same mill, ground bark, wood chip, and dressed and/or dried building timber. • Chemical preservation of rough timber/logs produced in the same unit.

A.5.6 Other Wood Product Manufacturing This industry is the main producer of veneer, plywood, particleboard and fibreboard.

Primary activities in this industry are: • Manufacturing of: plywood, wooden veneer or veneer sheets, chipboard, particleboard, cores (plywood or veneer), cellular wood panels, wooden fabricated boards, resin-bonded board, and softboard. • Manufacturing of: wooden door-window units, wooden or wooden framed doors, wooden roof trusses, wooden structural fittings, wooden wall frames, wooden framed windows, and wooden barrels, cases and casks. • Manufacturing of cork or cork products, wood picture frames or mirrors, wooden packing cases, wooden tool handles, and wood flour.

A.5.7 Pulp, Paper and Paperboard Manufacturing This industry is the main producer of chemical and mechanical pulp, newsprint and other paper and paperboard. The main inputs into this industry are logs, wood chips, and chemical and mechanical pulp.

Primary activities in this industry are: • Manufacturing of , newsprint, paper, paper pulp, paperboard, solid fibreboard sheets and wood pulp.

A.5.8 Paper and Paperboard Containers This industry primarily produces other paper and paperboard products.

Primary activities in this industry are: • Manufacturing of solid paperboard containers, corrugated paperboard containers, bags and paper, insulation materials, fibre, paper products for example drinking straws, tissue or sanitary papers, toilet paper rolls, trays and cartons, paper pulp and wallpapers.

A.5.9 Printing and Services to Printing This industry does not supply any of the specified forestry products captured in this account; it is separately identified, as it is one of the main users of other paper and paperboard.

Primary activities in this industry are: • Paper stationery manufacturing such as albums, calendars, games, greeting cards, labels, paper, office machine paper, paper stationery, playing cards, toys from printed paper and paperboard • Printing including screen-printing, stationery, and paper. • Commission, commercial, general and job printing.

19 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

• Services to printing including; artwork preparation service, bookbinding, colour separation film manufacturing, phototypesetting and layout service, plate-making film service, printing trade services, and typesetting and composing service.

A.5.10 Publishing Recorded Media Manufacturing and Publishing This industry also does not supply any of the specified forestry products captured in this account. It is separately identified, as it is the sole user of newsprint and main user of other paper and paperboard. Primary activities in this industry are: • Newspapers printing. • Publishing of newspapers, periodicals, art prints, books, maps, sheet music.

A.5.11 Furniture Manufacturing This industry does not supply any of the specified forestry products captured in this account, but it does use a significant amount of sawn timber and veneer and also uses some panel products.

Primary activities in this industry are: • Manufacturing of wooden furniture and upholstered seats, sheet metal furniture, mattress (except rubber) and other furniture.

A.5.12 Other Manufacturing ‘Other manufacturing’ includes all other manufacturing industries (see appendix 2: ANZIND 1996 V5.0). Some of the activities included in this category are: food, beverage and tobacco manufacturing; textile, clothing, footwear and leather manufacturing; petroleum, coal, chemical and associated product manufacturing; non-metallic mineral product manufacturing; metal product manufacturing; and machinery and equipment manufacturing.

The majority of these industries involvement with forestry products is through their use of other paper and paperboard goods. There is also a notable amount of use of sawn timber and panel products by the plastic, rubber and metal product manufacturing industries.

A.5.13 Residential Building Construction This industry uses a significant amount of sawn timber, fibreboard, particleboard and logs, in the construction of residential housing.

Primary activities in this industry are: • Construction of residential building such as: houses, apartments, duplex houses, flats, home units, and semi-detached houses. • On-site assembly, erection or installation of prefabricated houses. • General repair or renovation of residential buildings.

A.5.14 Non-Residential Building Construction This industry also uses a significant amount of sawn timber and fibreboard, and also uses some other panel products.

Primary activities in this industry are: • Construction of non-residential buildings such as commercial buildings, hotels, industrial buildings, institutional buildings, and religious buildings. 20 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

• On-site assembly, erection or installation of non-residential buildings, excluding sheds garages or carports. • General repair or renovation of non-residential buildings.

A.5.15 Non-building Construction Uses a significant amount of sawn timber.

Primary activities in this industry include: • Road and bridge construction (including runways, parking lots, viaducts, road construction and sealing). • Other non-building construction (including irrigation systems, dams construction, jetties construction, railway construction, tunnels and water tank construction).

A.5.16 Other Construction ‘Other construction’ is a category created for the physical flow accounts, and includes all other construction industries. Some of the activities in this category include: owner builders; site preparation services; building structure services; plumbing services and installation trade services; building completion services such as plastering, , and decorating; and other construction services such as landscaping.

A.5.17 Builders Supplies Wholesaling This industry has a large variety of activities. The main activity captured in this account is timber wholesaling. This industry supplies a significant amount of sawn timber, and uses a significant quantity of logs which are converted to sawn timber on site.

Primary activities in this industry include: • Timber wholesaling including plywood, timber and veneer dealing. • Building supplies wholesaling including wholesaling of: bricks, doors and windows, gas fittings, hand tools, sand, plastic wood, wall or ceiling boards, and tools.

A.5.18 Ownership of Owner-Occupied Dwellings This industry does not supply any of the specified forestry products captured in this account, but it does use a significant amount of other paper and paperboard products. This industry represents households owning their own home. Intermediate expenditure in this industry usually covers activities such as decoration, maintenance and repair of the dwelling.

A.5.19 All Other Industries ‘Other industries’ includes all other industries not already included in the forestry flow tables. Activities in this category include: mining; electricity, gas and water supply; wholesale trade; retail trade; accommodation, cafes and restaurants; transport and storage; communication services; finance and insurance; property and business services; government administration and defence; education; health and community services; cultural and recreational services; and personal and other services.

This is a residual category. This category is not equivalent between the supply and use tables. This is because different industries have been separately identified in the supply and use sides of the tables, depending on their importance as either a producer or consumer of forestry products.

21 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

B. Classifications and Description of Tables

B.1 Classifications

B.1.1 SEEA Asset Classification There is a strong link between the physical stock account and the physical flow account. The recoverable volumes harvested, as found in the physical stock account, are the basis for the flows. Having taken the amount harvested, the flow account then shows how the variety of different forestry products originating at logs, moves throughout the economy. The physical flow account will be produced under the same SEEA asset classification as the physical stock account, EA.141 Timber Resources. See appendix 1 for the full SEEA asset classification

EA.1 Natural Resources EA.11 Mineral and energy resources EA.12 Soil resources (cubic metres, tonnes) EA.13 Water resources (cubic metres) EA.14 Biological resources EA.141 Timber resources (cubic metres, hectares) EA.1411 Cultivated EA.1412 Non-cultivated

EA.142 Crop and plant resources, other than timber EA.143 Aquatic resources EA.144 Animal resources, other than aquatic

Calculating the account under EA.141 timber resources means focusing on the resource of timber. The physical flow account will include only the recoverable volume from harvesting and thinning, and this volume excludes bark. The non-recoverable volume will not be considered. As observed in section A.4.2, MAF currently estimate the non-recoverable volume as 15 percent of the recoverable volume. While in most cases this non-recoverable volume is left in the forest, it cannot necessarily be considered waste or environmentally damaging, as much of it decomposes and provides nutrients to the soil, and assists with future planting and production.

It has not been possible at this stage to separate products into indigenous forestry products and exotic forestry products. It is available for some products such as logs, but not available consistently across all products. This is discussed further in section E: Future Developments.

In terms of the scope of forestry flow accounts, only primary commodities and the products they are directly used to produce are included. Non-wood products such as sphagnum moss, kauri gum, and eucalyptus oil are not included in this initial set of tables, but may feature in future releases if data allows.

B.1.2 Industry Classifications The industrial classification used for the physical flow account is the ANZSIC Defined Industries Classification (ANZIND96) V5, based on the Australia and New Zealand Standard Industrial Classification, NZ Version 1996 (ANZSIC96). This is consistent with the industry classification 22 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

used for the New Zealand national accounts. The advantages of this are that it will enable the forestry flow account to be potentially integrated into the full system of national accounts, it will facilitate the easy and accurate use of data between the two accounts, and will ensure that flows and transactions between areas of overlap are as consistent and comparable as possible. This will also be important if an environmentally adjusted GDP is to be calculated in future.

B.1.3 Commodity Classifications The commodities identified in the physical flow accounts have been classified based on MAF standard commodities for forestry, as discussed in section A.4: Overview of Forestry Products and Residuals.

Some secondary data sources used in the forestry flow account workings, such as the Statistics New Zealand 1996 inter-industry study, use a slightly different commodity classification for forestry. Where this situation occurred, the commodities were concorded with the MAF commodities. The MAF commodity classification is used in all tables in the forestry flow account.

B.2 Description of Tables

B.2.1 Table (i): Supply and Use Summary in Original Units This is the initial table for each year. For each forestry commodity it shows the supply in terms of production and imports. Use is shown in terms of consumption, stocks, and exports.

B.2.2 Table (ii): Supply and Use Summary in Cubic Metres of Roundwood Equivalent The second table for each year follows the same format as the first table but uses individual conversion factors to convert figures from the original units into a consistent unit (cubic metres of roundwood equivalent) for all commodities.

B.2.3 Table (iii): Supply and Use Industry breakdown The third table for each year is a detailed analysis where the consistent units volume totals for each commodity are allocated to industries responsible for their supply and use.

B.2.4 Summary Table The summary table on page 46 provides a time series of forestry products and residuals supply and use between the year 1995 and 2000. Only one figure is recorded for each product (or residual) each year as the supply total is equal to the use figure in all cases.

B.2.5 Supplementary Tables Three supplementary tables have been included in the report to provide additional information.

The first table, on page 47, shows the countries of destination for exports volumes of selected forestry products. The export volume totals are taken from the use table for the year 2000.

23 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

The second supplementary table, on page 48, provides a species breakdown of sawn timber production for the years covered by the flow account.

The third supplementary table, on page 49, provides information on the use of bark in co- generation power plants between 1996 and 2001, in March years.

24 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

C. Sources and Methods

C.1 Details of Data Sources Two types of data source were used in the compilation of the forestry physical flow accounts. Volume data from MAF production statistics and Statistics New Zealand trade data were used to derive the actual volume figures seen in the supply and use tables. Monetary data was taken from Statistics New Zealand economic datasets and were used to help apportion and validate the volume figures.

C.1.1 Ministry of Agriculture and Forestry Production Statistics MAF produce a range of production statistics that can be found at their website: [http://www.maf.govt.nz/statistics/primaryindustries/forestry/production/index.htm]. These statistics form the basis for domestic volumes in the supply and use tables.

MAF conduct a number of quarterly and annual surveys to collect the data used to produce these statistics. Due to the small number of enterprises concerned, MAF is able to conduct a census of all mills in New Zealand involved in the production of pulp and paper, veneer, plywood, particleboard, and fibreboard. The censuses are conducted using a written questionnaire that is sent to each individual enterprise, with a response rate of 100 percent. The resultant data is therefore expected to be highly accurate.

With more than 400 sawmillers in New Zealand, it is not possible for MAF to survey all enterprises involved in the production of sawn timber on a quarterly basis. The quarterly survey therefore uses a random sample, stratified by wood supply region and size (based on production volume). Part of the survey design ensures that all mills with greater than 10,000 cubic metres production are included in the sample. The response rate for this quarterly survey is 90 percent. To complement the quarterly survey, an annual census of all known sawmills is also conducted. The response rate for March 2001 annual survey was over 95 percent for large mills (greater than 1,000 cubic metres production), and 83 percent for smaller mills (less than 1,000 cubic metres production). MAF expect error margin of plus/minus 2 percent for national annual totals, and set a target of plus/minus 5 percent for quarterly totals.

Updating the wood processing enterprises sample frame is an ongoing process, through regular liaison with regional offices. Prior to each annual survey a comprehensive search is made to identify new enterprises. MAF expect the sample error to be minimal, particularly in terms of significant volumes of sawn timber being missed as only 1 percent of the total volume of sawn timber comes from mills with an annual production less than 1,000 cubic metres.

C.1.2 Statistics New Zealand Physical Trade Statistics Overseas Merchandise Trade statistics provide statistical information on the importing and exporting of merchandise goods between New Zealand and other countries. Exporters/ importers and their agents supply data on overseas merchandise trade to the New Zealand Customs Service. The New Zealand Customs Service processes and passes the data to Statistics New Zealand for compilation into statistics.

25 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Statistics New Zealand produces trade statistics in both monetary and physical units annually. Commodities are classified using the harmonised system (HS). MAF have identified which goods are equivalent to the commodities used in their statistical releases. As the flow accounts use the same commodities, the MAF list of HS codes for each commodity was used to calculate the import and export volumes for the supply and use tables.

C.1.3 Statistics New Zealand Economic Datasets Various economic datasets were used in order to improve the accuracy of the physical flow accounts, including the 1996 inter-industry study and the 1995 Census of Manufacturing.

Statistics New Zealand released the Inter-industry (input-output) Study 1996 on 22 August 2001. The main purpose of the study is to provide a picture of the industrial structure of an economy for a given year, measuring both the direct and indirect relationships between industries and commodities. While the inter-industry study is recorded in monetary terms only, it provides a basis for allocating physical totals to industries.

The Census of Manufacturing 1995 was carried out in order to obtain comprehensive and detailed statistics about the New Zealand manufacturing industry for the 1994/95 financial year, with particular regard to commodity data that was previously unavailable. The target population was all economically significant New Zealand manufacturing businesses (businesses with an annual GST dollar turnover of $30,000 or more). The census enabled a more detailed examination of the supply and use of commodities of manufacturing industries. As with inter- industry data, the census of manufacturing data was in value terms only, and had to be carefully analysed for the physical flow account. The census was especially useful in the analysis of board and panel commodities, and pulp and paper commodities. More detail of how the census of manufacturing was used is covered in section C.2.3: Supply and Use Industry Breakdown Tables.

C.2 Methodology Flow accounts have been produced for the years 1995 to 2000. It is the intention of Statistics New Zealand to update these tables over time, adding data for the latest year(s) when the information becomes available. All the figures in this release apply to March years. For example information for March 1999 refers to the year 1 April 1998 to 31 March 1999.

For each year, three supply and use tables have been used to show how the estimate for the total recoverable volume harvested, calculated in the physical stock account, flows through the economy.

Each table includes both the supply and use of the forestry commodities discussed in section A.4: Overview of Forestry Products and Residuals. Supply includes domestic production and imports, while use includes domestic consumption, exports and any products held as stocks.

C.2.1 Supply and Use Summary Table in Original Units Production figures in these tables are primarily based on MAF production statistics; the exception is the ‘logs and poles’ commodity, which is explained in section C.2.1.1: Logs and Poles Production. While MAF statistics provide a lot of information concerning production, there is very little information available regarding consumption, and little reliable information

26 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

available regarding stocks. In practice, consumption and stocks have been estimated together, as the sum of total production plus imports less exports. This method is consistent with that used by MAF in their calculation of apparent consumption.

The import and export figures have been taken from Statistics New Zealand overseas trade data, described in C.1.2: Statistics New Zealand Physical Trade Statistics. This trade data is also used by MAF, a summary of which is published by the Forestry Statistics team at MAF. There may be some minor differences between the two datasets because the flow accounts in this report use totals in March years for both imports and exports, and also include recent revisions not currently incorporated into the MAF published statistics. MAF export totals exclude re-exports. Import data via the MAF website is only available for June and December years. The MAF summary information can be found at the following address: http://www.maf.govt.nz/statistics/primaryindustries/forestry/trade/index.htm.

C.2.1.1 Logs and Poles Production The production figures for total logs and poles in the forestry flow account have been taken directly from the Statistics New Zealand forestry physical stock account. Estimates may, therefore, vary slightly from the log volumes in the production statistics published by MAF. The flow account production figures are consistent with harvesting volumes in the National Exotic Forest Description (NEFD),7 also published by MAF, as volumes in the forestry stock account are based on the NEFD volume data. The NEFD/physical stock account harvesting series was chosen to maintain consistency between the stock and flow accounts, although the choice of which series to use would in truth have had little impact in practice as the total in the two series are so similar.

Differences arise between the forestry flow and MAF production series due the methodology used in their calculation. MAF uses figures collected from the quarterly and annual surveys described in C.1.1: Ministry of Agriculture and Forestry Production Statistics to calculate their estimates. MAF figures are therefore based on inputs into, and in some cases outputs of, the different manufacturing processes which are then converted back into the total estimated logs used (that is roundwood equivalent). Statistics New Zealand has used an estimate of the total volume of logs at the point where they are harvested in the forest. Both series are estimates of removals, although one series derives the removals at the point of harvesting, while the other series is based on production when it occurs, and is then converted into roundwood equivalents.

C.2.1.2 Wood Chips Production Wood chip volumes in original units, bone dry units, are only available for imports and exports. Domestic production of wood chips is collected as part of the MAF questionnaires of the industry responsible for their production. As the questionnaires are tailored to the specific industry being surveyed, the units of measure vary. For example, sawmill residuals will be measured in cubic metres, while pulp mill chips will be measured in tonnes. Domestic supply and use of wood chips has therefore not been included in the original units tables, but does appear in the consistent units tables discussed in C.2.2: Supply and Use Summary in Cubic Metres of Roundwood Equivalent.

7 The NEFD is an annual publication, produced by MAF, which provides a summarised inventory of New Zealand’s planted production forest resource for the year concerned. It is based on an annual survey of commerical forestry companies. Refer to the NEFD or the forestry physical stock account for more detail. 27 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

C.2.1.3 Sawn Timber and Veneer The production figures in original units for, sawn timber and veneer come from MAF production statistics web pages. Source figures can be viewed by following the web link in section C.1.1: Ministry of Agriculture and Forestry Production Statistics.

C.2.1.4 Panels Products Production The production figures in original units for plywood, particleboard and fibreboard are from MAF production statistics web pages.

C.2.1.5 Pulp, Paper and Paperboard Products Production The production figures in original units for chemical pulp, mechanical pulp, newsprint, and other paper and paperboard are from MAF production statistics web pages.

C.2.2 Supply and Use Summary in Cubic Metres of Roundwood Equivalent The estimates in original units have been converted to consistent units to enable the detailed analysis of supply and use to take place. The unit of measure chosen was cubic metres of roundwood equivalent, which is compatible with MAF statistics. It should be noted that cubic metres of roundwood equivalent are different from cubic metres.

C.2.2.1 Defining Roundwood Equivalent MAF defines ‘roundwood equivalent’ in New Zealand as “a theoretical measurement that gives the total amount of roundwood necessary for the production of one unit of a stated forestry product with existing technology, as if only roundwood were used as a raw material. No allowance is made for the use of residuals in the manufacture of the product”. (Dennis, 2001).

For example, in some years, one cubic metre of roundwood equivalent for sawn timber is 1.84 cubic metres. Therefore it takes 1.84 cubic metres of log (or similar roundwood) to produce one cubic metre of sawn timber. The figure 1.84 is the ‘conversion factor’ for sawn timber, as this is the figure that a given volume of sawn timber in cubic metres must be multiplied by to state the same volume in the consistent unit, cubic metres of roundwood equivalent.

All the conversion factors used in the construction of the flow accounts in cubic metres of roundwood equivalent have been provided by MAF. MAF bases the conversion factors on analysis of the industry practices, mainly from the annual surveys of each wood product industry. These conversion factors are updated periodically to reflect changes in industry practices.

Conversion factors vary greatly depending on the type of wood product being converted, and the original units that the product was measured in. Conversion factors differ between imports and exports of a product due to differences in their processing. The conversion factors for exports are updated periodically by MAF. The import conversion factors, however, are more difficult to update, as changing efficiencies of mills and operations in foreign countries are not easily identified. Imports account for significantly less than exports and so any loss of accuracy due to the import conversion factors not being updated regularly should be minimal in terms of the overall account.

28 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

C.2.2.2 Converting Original Units to Cubic Metres of Roundwood Equivalent Figures from the original units summary table, table (i) for each year, were converted to cubic metres of roundwood equivalent and entered into the corresponding cell for the corresponding year to produce the second summary table. The conversion factor used was determined by the commodity being converted, the original units being converted from, and the year concerned.

MAF supplied a full set of conversion factors for both imports and exports for all years covered by the physical flow account. Export conversion factors were used for both exports and production. Because exports are produced domestically, the same production efficiencies and conversion factors apply to domestic production and exports. The import conversion factor has been used for imports only.

Conversion factors do not make any allowance for the use of residuals in the manufacturing of the product. They are therefore considered a less accurate measure for reconstituted panel products and products based on the use of wood pulp, as these both have a significant percent of residuals used in their production.

C.2.3 Supply and Use Industry Breakdown Tables Once all the totals for production, consumption, imports, and exports had been converted into consistent units they were transferred into the detailed supply and use tables for each year (tables (iii)). At this stage only totals are available for these aggregates (production, consumption, imports and exports), and the totals still have to be allocated to industries and final demand categories such as household consumption. The allocation is based on supplementary data sources as discussed below.

The allocation of commodities to industries is based on a detailed analysis of a ‘base year’. This approach was used for all commodities apart from logs and poles, and wood chips (the methods used for these two commodities are described in sections C.2.3.1: Logs and Poles and C.2.3.2: Wood Chips, respectively). The year 1996 was chosen as the base year of analysis, mainly due to the availability of the 1996 inter-industry study, discussed in C.1.3: Statistics New Zealand Economic Datasets

The use of the inter-industry study to allocate commodity volumes into the industries involved in their supply and use was undertaken in three stages. The first stage was to identify and concord commodities used in the inter-industry study with those used in the flow accounts, as discussed in section B.1.3: Commodity Classifications.

Once monetary values were available for the commodities used in flow accounts, the next stage was to identify the industries playing a significant role in either the supply or use of any of the flow account commodities. Industries playing a less significant role were aggregated into categories such as ‘Other Manufacturing’, or ‘All Other Industries’.

Once the basic structure of the supply and use tables had been determined, monetary values from the inter-industry study were used to identify which industries were involved in the supply and use of each commodity. For each commodity, industry proportions were calculated for the proportion of that industry’s consumption/production as a percentage of the total. The MAF based volume totals for production and consumption were then allocated to industries according to these proportions. These industry totals provided the starting point of further analysis for each specific commodity. After each commodity had been analysed separately they were analysed

29 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

again as a whole, with adjustments made to the initial industry volume allocations. See section C.2.3.6: Additional Analysis for more details.

C.2.3.1 Logs and Poles The industry breakdown for log and pole consumption, while using the inter-industry proportions as a secondary reference, are primarily based on MAF production statistics. For each year MAF publish details of total volume of roundwood used in production for the four different types of log (saw, peeler, pulp and small). Because these four types have fairly specific and different uses, it is possible to allocate their volume for a given year to the industry that will be using them. For example, peeler logs are used solely in the production of veneer and so the annual peeler log total is allocated to the ‘Other wood product manufacturing industry’. Where a type of log is used by a number of industries, additional information was needed to improve the allocations. For example, small logs are mainly used in the production of fibreboard and particleboard, but a proportion are also used to produce fence posts and other roundwood products for which MAF allows a constant annual figure in their statistics. This roundwood figure was subtracted from the small log total, and was allocated across industries that use roundwood products (mainly agriculture and forestry) using the proportions taken from the inter-industry study.

The supply of logs and poles uses the 1996 inter-industry proportions as it was deemed all log producers would supply both high and low grade logs so the proportions in volumes would reflect the proportions in values.

C.2.3.2 Wood Chips MAF provide annual figures of the volumes of wood chips used in the production of wood pulp and fibreboard and particleboard. These figures provide sufficient detail to determine which industries supply wood chips and which industries use them. It is also possible to distinguish wood chips that are chipped from pulp and small logs, and those that are sawmill residuals. Therefore, after the volumes have been converted into consistent units for summary table (ii) of each year, they can be allocated directly to corresponding industries in the supply and use tables for each year as either wood chips (chipped logs) under forestry products or wood chip residuals under forestry residuals.

C.2.3.3 Sawn Timber and Veneer Both the supply and the use industry breakdowns for sawn timber are based solely on inter- industry proportions. The tables assume that all industries pay the same price, since no alternative data exists.

From the inter-industry study and the 1995 Census of Manufacturing it was determined that veneer is only supplied by one industry, ‘other wood product manufacturing’, therefore the sum of the MAF production total was placed in this industry. From the same sources it appears that veneer is only being used by two industries: furniture manufacture, and by other wood product manufactures (in the production of plywood). The consumption total was then split between these two industries using the proportions seen in the inter-industry study.

C.2.3.4 Panel Products The inter-industry study aggregates the three panel products identified in the flow accounts into one commodity, boards and panels. The study therefore cannot help determine the industry breakdown of these commodities. However, because all the supply and a significant part of the 30 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

use of panel products is within the manufacturing industries the 1995 Census of Manufacturing was used to determine the industry breakdown.

C.2.3.5 Pulp, Paper and Paperboard Products A similar situation to panel products occurs with pulp, paper and paperboard products, where the inter-industry study aggregated them into the commodity ‘Pulp, paper and paperboard’. Again, all of the supply and much of the use occurred within the manufacturing sector, so the 1995 Census of Manufacturing was used to determine the industry breakdown.

C.2.3.6 Additional Analysis After the individual commodities had been analysed separately, they were brought together and analysed collectively through a number of ‘reality checks’. This included checking that for an industry producing forestry products, the input (use) commodities were consistent with the output (supply) commodities. For example, if an industry produces sawn timber, that industry would anticipate using a certain volume of log and poles to be able to produce that sawn timber. These reality checks are based on the flow diagram seen in table 4, and on the MAF conversion factors.

Once a complete industry breakdown for both supply and use in cubic metres of roundwood equivalent had been completed for 1996, the corresponding value information from the inter- industry study was used to derive a ‘price’ for all products and for each cell of the table8. This was used to validate the tables by highlighting any potential inaccuracies in the volume figures. For example, products of high-grade logs, such as sawn timber and veneer, would be expected to have higher average derived prices than products of lower grade logs and residuals, such as fibreboard and particleboard. Price analysis resulted in a few minor adjustments to the volume allocations in the tables.

The finalised supply and use table for 1996 was then used as a template for other years. Volume proportions for each industry involved in the supply and use of forestry commodities were then determined. For example, 1996 figures show that 100 percent of the supply of veneer came from the ‘Other wood product industry’, while 61.82 percent of veneer output was used by the ‘Other wood product industry’ (for plywood manufacture) and 38.18 percent by the furniture industry. These proportions for each commodity were then applied to the production and consumption volume totals for each commodity provided by MAF for later years.

8 These derived ‘prices’ are usually not comparable with true market prices, as market transactions of forestry products are not usually undertaken on a ‘roundwood equivalent’ basis. Forestry price data from the Statistics New Zealand Producers Price Index is not collected on a ‘roundwood equivalent’ basis. As described in the report, the derived prices were mainly used to compare the relative price of each product (ie to check that the ‘price’ of sawn timber was greater than the ‘price’ of fibreboard). 31 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

D. Interpreting the Supply and Use Tables

When analysing the flow account it should be noted that the supply and use tables may count the same volume several times, as it is converted into different forestry products. For instance, a cubic metre of logs may be counted in the supply table twice: once as logs and poles; and once as sawn timber. Similarly, the same logs could be recorded as used by the ‘log sawmilling and timber dressing’ industry, while the sawn timber derived from the logs could be used by the ‘furniture manufacturing’ industry. Such ‘double counting’ of volumes only occurs when a forestry product is converted into another forestry product.9 The individual industry totals therefore only show the magnitude of processing or consumption by the industry, not the actual amount of wood removed from the forest10 that is either supplied to the economy or consumed by the individual industry. The grand totals for supply and use are included for accounting purposes only to show that total supply equals total use. This treatment is conceptually similar to the treatment of commodities in National Accounts input-output tables.

Some of the allocations of forestry products to certain industries require some explanation. In many cases, a business may be involved in several different types of productive activities. For example, a sheep or beef cattle farmer may also have a small pine forest that provides income. In the case of a business involved in a number of activities, the assigned industry classification will be based on the activity that provides the main source of income. This may help explain the situation where the supply or use of a commodity initially appears unexpected or unusual. In many cases, the supply or use of a forestry product by a certain industry is a secondary activity, and is very small relative to that industries total output or consumption.

The following sections provide further comments on the supply and use of forestry products by particular industry groups.

D.1 Agriculture and Forestry Industries This sector of the economy is the principal supplier of logs and poles. Small logs are also used in these industries for fence posts. The relatively high use of small logs by the ‘other agriculture, forestry and logging’ industry is thought to be due to the inclusion of agricultural fencing contractors, together with deer and other livestock farming.

D.2 Manufacturing Industries The manufacturing sector accounts for approximately 52 percent of total production and approximately 76 percent of intermediate use of forestry products. It also accounts for the total supply and use of forestry residuals measured in the flow accounts.

9 The tables only include wholesale (and retail) transactions of forestry products where the product has been transformed by the wholesaler (or retailer) into a different forestry product. For example, sawn timber output of wholesalers in the supply table represents the conversion of logs into sawn timber by the wholesaler. This output does not include sawn timber purchased by the wholesaler and sold without further processing. 10 Although the tables do show the total timber removed from the forest entering the economy. This is where the physical flow account links to the total harvesting in the physical stock account. The structure of the tables (which are based on standard national accounting models), and some data availability issues, do not allow for the direct tracking of all timber moving through the economy. Some flows, such as the exports of logs and poles, are easily identifiable. 32 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

An initial examination of the tables would suggest that the ‘log sawmilling and timber dressing’ industry supplies twice the volume of forestry products that it uses. This is due to the fact that conversion factors do not account for the use of residuals, as discussed in section C.2.2.1: Defining Roundwood Equivalent. The supply of sawn timber and chipped logs both come from the same use of logs and poles, which is why similar volumes are seen for the three commodities.

The ‘other wood product manufacturing’ industry has a significant number of internal flows which partly accounts for its high supply and use totals. A similar situation occurs in the ‘pulp, paper, and paperboard manufacturing’ industry where the initial input of pulp logs is first converted to wood pulp and then to newsprint and other paper and paperboard.

D.3 Construction Industries The construction sector is the principal consumer of sawn timber and panel products. Some small logs are also used for construction of pole houses and retaining walls. These industries do not supply many forestry products.

D.4 Other Industries The estimate of supply of logs and poles by ‘all other industries’ has been investigated. A proportion of this volume can be attributed to the Department of Corrections from prison forestry enterprises, and by road haulage companies supplying firewood that they have obtained from sawmills in the form of off-cuts and slabwood.

33 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

E. Future Developments

E.1 Future Developments of the Physical Flow Account This initial physical flow report is a development report. As such, there are a number of areas where the data used to compile the tables is deficient to a greater or lesser extent. The two main areas involved are: in the proportions used for the industry allocations (discussed in section E.1.1: Refing Existing Estimates); and the lack of available data concerning the supply and use of residuals produced by the wood processing industries (these are discussed in section E.1.2: Provide Details of the Supply and Use of Bark). These are also a number of areas where more information would enable the account to provide further information. The most desirable is information regarding the composition of wood products in terms of exotic and indigenous timber (discussed in E.1.3: Provide Greater Details of Residuals in the Wood Processing Industry). Statistics New Zealand intends to make improvements to address these data deficiencies in the future as more research is completed and more data becomes available.

E.1.1 Refining Existing Estimates The proportions used for the industry allocations in the flow tables are mainly based on the 1996 inter-industry study and 1995 Census of manufacturing data. These proportions will be updated when new industry data sources become available, such as future National Accounts input-output studies. Supply and use tables for years after 1996 will then be revised. Revisions to proportions are most likely to occur for commodities where there are a large number of suppliers or users of a commodity, such as sawn timber. Any revisions to proportions are expected to be fairly minor. It is unlikely that the grand totals for a commodity will be revised by MAF (imports and exports totals are also generally not revised) so revisions to actual volumes should be minimal.

E.1.2 Provide Details of the Supply and Use of Bark Very large volumes of bark are produced annually as a result of timber fellings in New Zealand. Forest Research estimates that over one million cubic metres of bark is produced annually. While it would be appropriate to include bark in the supply and use table with the other wood products’, it has not been possible due to the unavailability of sufficient data.

The main industry use of bark is as a feedstock to co-generation power plants;11 smaller volumes are also used in the horticulture industry and by households as . The utilisation of bark is also important from an environmental perspective, because if it was simply disposed of at landfills it could become an environmental hazard due to the possibility of toxic leachates from the decaying bark entering local groundwater. Supplementary table 3 on page 48 displays the data that is currently available for the use of bark in co-generation power plants.

11 Co-generation power plants in the wood processing industry utilise the bark residues from sawmilling to produce heat to drive steam turbines which generate electricy which is sold to power distribution companies as well as being used internally. The heat that is produced during the process is also used in the drying kilns used to season timber. 34 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

E.1.3 Provide Greater Details of Residuals in the Wood Processing Industry The wood processing industry is largely considered to be a very efficient industry where virtually the whole of the resource that is taken from the natural environment is utilised, either as a primary product or as a secondary product, with few negative residuals. Part of the aim of the physical flow account is to show this process. However, current data availability prevents a full analysis of all the residuals that are being created by the various wood processing industries, and whether these residuals are being utilised either internally by the wood processing industries themselves, by other industries, or in fact being discharged into the natural environment. Section A.4.2: Forestry Residuals outlines some of the more significant residuals. It is hoped that estimates for these will be included in future releases, as data becomes available.

E.1.4 Indigenous and Exotic Products Statistics New Zealand would like to provide tables which detail the proportion of forestry products that are made from indigenous timber and from exotic timber, or even for individual species. Some of this information is available for logs entering the flow tables and sawn timber being produced, but there is not enough information to estimate the complete flows through the New Zealand economy.

See Supplementary Table 2: Sawn Timber Production by Species (in cubic metres), which shows sawn timber production by species for year 1995 to 2000 (the years covered by the flow account).

35 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

F. Glossary

BDU (Bone dry units): This is the unit used to measure wood chips. One bonedry unit of wood chips weighs 1090 kilograms when oven-dried.

Commodity: In economic terms a commodity is any substance or product that can be bought, sold, or traded. The commodities used in the forestry flow tables in this report are defined in A.4.1: Forestry Products.

Consumption: “Consumption is an activity in which institutional units use up goods and services; consumption can be either intermediate or final” (SNA Glossary, OECD 2000, p 10).

Environmental accounting: Under the SEEA framework environmental accounting refers to the combination of natural resource accounts, which consists of stock and flow accounts in physical terms, and the monetary valuation of these accounts.

Exotic forest: This includes are areas of forests comprising of non-native species. Mainly of radiata pine, and to a lesser extent douglas fir, but also includes a variety of other species both hardwood and softwood.

Exports: The forestry flow account includes only products, no services, and as such exports relate only to merchandise exports. Merchandise exports refer to goods of domestic origin, and re-exports, sent from New Zealand to other countries. (Statistics New Zealand)

Forestry products: These include wood products, the primary goods derived from timber felled in the forests, and non-wood products sourced from the forest. Non-wood products include such goods as fruits and nuts, medicines, industrial extracts (eg cork, rubber and gum) as well as forest animals as agricultural products. For the purposes of this account the terms forestry products and wood products are synonymous as the non-wood products are currently out of scope of the flow accounts.

Forestry residuals: Forestry residuals, in terms of the forestry flow account, include all the by- products and waste products that are produced during the manufacture of forestry products.

Gross Domestic Product (GDP): A measure of the total economic activity occurring within the national boundary of a country. It measures the total market value of goods and services produced in New Zealand after deducting the cost of goods and services used in the process of production, but before deducting allowances for the consumption of fixed capital.

Harmonised System (HS): The classification adopted by New Zealand on 1 January 1988 for processing customs entries and publishing statistics on external trade. It replaces the Customs Co-operation Council Nomenclature (CCCN) based tariff and the SITC statistical classification.

Imports: The forestry flow account includes only products, no services, and as such imports relate only to merchandise imports. Merchandise imports refers to goods arriving in New Zealand, having been consigned from other countries, for intermediate consumption or for storage in bonded warehouse. (Statistics New Zealand)

36 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Indigenous forest: Defined by MAF as “land wholly or predominantly under the cover of land indigenous flora”.

Industry: “An industry consists of a group of establishments engaged on the same, or similar, kinds of production activity” (SNA Glossary, OECD 2000, p 25). The classification of productive activities used in the forestry flow account is based on the Australia and New Zealand ANZSIC defined industries 1996, based on ANZSIC (Australia and New Zealand Standard Industrial Classification). See A.5: Overview of Forestry and Forestry Related Industries for more detail.

Natural resource accounting: An accounting system that deals with stocks and flows of natural assets, comprising biota (produced or wild), subsoil assets (proved reserves), water and land with their aquatic and terrestrial ecosystems. The term is used frequently in the sense of physical accounting as distinguished from monetary (environmental) accounting. However, the terms natural resource accounting and environmental accounting are often used interchangeably.

Peeler logs: These are generally high-grade logs, which will provide a high appearance grade when peeled or sliced. They are used in the production of veneer, which is then further processed into plywood or laminated veneer lumber (LVL).

Production: “Production is an activity, carried out under the responsibility, control and management of an institutional unit, that uses inputs of labour, capital and goods and services to produce outputs of goods and services” (SNA Glossary, OECD 2000, p 41).

Products: “Products, also called ‘goods and services’, are the result of production; they are exchanged and used for various purposes: as inputs in the production of other goods and services, as final consumption or for investment” (SNA Glossary, OECD 2000, p 41).

Pulp logs: These are considered low-grade logs, generally derived from smaller branches and production thinnings. They are first chipped, then reduced to wood pulp for the production of newsprint and other forestry products.

Re-exports: Exported goods exported in the same condition as they were imported, and imported goods, which have undergone operations such as repair, repacking or bottling, leaving them essentially unchanged before exporting. Re-exports include less than 50 percent New Zealand content by value.

Residuals: See forestry residuals.

Roundwood equivalent: MAF defines ‘roundwood equivalent’ in New Zealand as “a theoretical measurement that gives the total amount of roundwood necessary for the production of one unit of a stated forestry product with existing technology, as if only roundwood were used as a raw material. No allowance is made for the use of residuals in the manufacture of the product”. (Dennis, 2001). See section C.2.2.1: Defining Roundwood Equivalent for further detail.

Roundwood products: MAF defines roundwood products as those that resemble the logs as they are removed from the forest and are used without further conversion. MAF identifies three roundwood products in New Zealand: poles, posts and firewood.

Saw logs: Saw logs tend to be high-grade logs with good structural and/or appearance qualities of substantial length. They are used by sawmills in the production of sawn timber.

37 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Small logs: These are logs that are too small in either diameter or length to be of use to the saw mill or veneer industries. They are therefore mainly used in the production of fibreboard and particleboard. Some small logs are, however, not further processed and are sold as roundwood products such as poles and fence posts.

Supply and Use Tables: “Supply and use tables are in the form of matrices that record how supplies of different kinds of goods and services originate from domestic industries and imports, and how those supplies are allocated between various intermediate or final uses, including exports” (SNA Glossary, OECD 2000, p 49).

System of Environmental and Economic Accounts (SEEA): The SEEA was developed by the United Nations Statistical Division as a satellite system to the System of National Accounts (SNA), for the incorporation of environmental concerns (environmental costs, benefits and assets) in the national accounts. The SEEA is intended to be a system with global application and standards, suitable for all countries and all aspects of the environment.

System of National Accounts (SNA): ‘An international accounting framework consisting of a coherent, consistent and integrated set of macro-economic accounts, balance sheets and tables based on a set of internationally agreed concepts, definitions, classifications and accounting rules. It provides a comprehensive accounting framework within which economic data can be compiled and presented in a format that is designed for the purposes of economic analysis, and decision and policy making’ (System of National Accounts, 1993).

38 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

G. Bibliography

Dennis J, Ministry of Agriculture and Forestry, (2001). "Estimated roundwood removals from New Zealand forests: Where does all the wood go?" paper presented to the Australasian Biometrics and New Zealand Statistical Association Joint Conference, Christchurch, 10-13 December.

Forestry insights website. [www.insights.co.nz]

Ministry of Agriculture and Forestry website, [http://www.maf.govt.nz/statistics/primaryindustries/forestry/trade/index.htm].

Ministry of Agriculture and Forestry (2001). National Exotic Forest Description: National and Regional Wood Supply Forecasts 2000, Ministry of Agriculture and Forestry, Wellington.

Ministry for the Environment (1997). The State of New Zealand’s Environment 1997, Ministry for the Environment, Wellington.

Pawson E and Brooking T (eds) (2002). Environmental Histories of New Zealand, Oxford University Press, Victoria, Australia.

Springall L (2002). “NZ struggles to reach targets for ‘wall of wood’”, The Independent 1 May 2002, 11-13.

Statistics New Zealand. (1999) “New Zealand – A Regional Profile”, Statistics New Zealand, Wellington.

Statistics New Zealand (2002). “Physical stock account for forestry resource in New Zealand 1995 – 2000”, Wellington, [http://www.stats.govt.nz/domino/external/web/prod_serv.nsf/Response/Forestry+Natural+Resource+Accounts].

System of Environmental and Economic Accounting (SEEA) manual (Voorburg Draft, 2001) United Nations, World Bank, Organisation for Economic Co-operation and Development, and Statistical Office of the European Community (Eurostat). [http://www4.statcan.ca/citygrp/london/london.htm]

39 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

H. Appendix

Appendix 1: System of Environmental and Economic Accounts Asset Classification

EA.1 Natural Resources

EA.11 Mineral and energy resources EA.111 Fossil fuels (cubic metres, tonnes, tonnes of oil equivalent, joules) EA.112 Metallic minerals (tonnes) EA.113 Non-metallic minerals (tonnes)

EA.12 Soil resources (cubic metres, tonnes) EA.121 Agricultural EA.122 Non-agricultural

EA.13 Water resources (cubic metres) EA.131 Surface water EA.1311 In artificial reservoirs EA.13111 For human use EA.13112 For agricultural use EA.13113 For electric power generation EA.13114 For mixed use EA.1312 In natural waterbodies EA.13121 Lakes EA. 13122 Rivers and streams EA.132 Groundwater EA.1141 Aquifers EA.1142 Other groundwater

EA.14 Biological resources EA.141 Timber resources (cubic metres, hectares) EA.1411 Cultivated EA.1412 Non-cultivated EA.142 Crop and plant resources, other than timber (cubic metres, tonnes, number) EA.1421 Cultivated EA.14211 Yielding repeat products (vineyards, orchards, etc.) EA.14212 Yielding one-time harvests (crops, etc.) EA.1422 Non-cultivated EA.143 Aquatic resources (tonnes, number) EA.1431 Cultivated EA.1432 Non-cultivated EA.144 Animal resources, other than aquatic (number) EA.1441 Cultivated EA.14411 Livestock for breeding purposes EA.14412 Livestock for slaughter EA.1442 Non-cultivated

EA.2 Land and surface water (hectares)

Of which, recreational land

40 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

EA.21 Land underlying buildings and structures EA.211 In urban areas EA.2111 For dwellings EA.2112 For non-residential buildings EA.2113 For transportation and utilities EA.212 Outside urban areas EA.2121 For dwellings EA.21211 Farm EA.21212 Non-farm EA.2122 For non-residential buildings EA.21221 Farm EA.21222 Non-farm EA.2123 For transportation and utilities EA.21231 Roads EA.21232 Railways EA.21233 Electric power grids EA.21234 Pipelines

EA.22 Agricultural land and associated surface water EA.221 Cultivated land EA.2211 For temporary crops Of which, drained Of which, irrigated EA.2212 For permanent plantations Of which, drained Of which, irrigated EA.2213 For kitchen gardens EA.2214 Temporarily fallow land EA.222 Pasture land EA.2221 Improved EA.2222 Natural EA.223 Other agricultural land

EA.23 Wooded land and associated surface water EA.231 Cultivated timber plantations EA.232 Non-cultivated wooded land EA.2321 Previously harvested EA.2322 Not previously harvested

EA.24 Major waterbodies EA.241 Lakes EA.242 Rivers

EA.243 Wetlands EA.244 Artificial reservoirs EA.2441 For drinking water EA.2442 For irrigation EA.2443 For electric power generation EA.2444 For multiple purposes

EA.25 Other land EA.251 Prairie and grassland EA.252 Tundra EA.253 Sparsely vegetated/barren land

41 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

EA.254 Permanent snow and ice

EA.3 Ecosystems

EA.31 Terrestrial ecosystems EA.311 Urban ecosystems EA.312 Agricultural ecosystems EA.313 Forest ecosystems EA.314 Prairie and grassland ecosystems EA.315 Tundra ecosystems EA.316 Dryland ecosystems EA.317 Other terrestrial ecosystems

EA.32 Aquatic ecosystems EA.321 Marine ecosystems EA.322 Coastal ecosystems EA.323 Riverine ecosystems EA.324 Lacustrine ecosystems EA.325 Other aquatic ecosystems

EA.33 Atmospheric systems

EA.M Memorandum item – Intangible environmental assets EA.M1 Mineral exploration EA.M2 Transferable licences and concessions for the exploitation of natural resources EA.M3 Tradable permits allowing the emission of residuals EA.M4 Other intangible non-produced environmental assets

42 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Appendix 2: ANZIND 1996 V5.0 (Selected codes have been expanded, with industries individually identified in industry breakdown tables highlighted.)

A. Agriculture, Forestry and Fishing A.01 Horticulture and fruit growing A.02 Livestock and cropping farming A.021 Livestock and cropping farming A.0211 Mixed livestock and cropping A.0214 Sheep and beef cattle farming A.03 Dairy cattle farming A.031 Dairy cattle farming A.04 Other farming A.05 Services to agriculture, hunting and trapping A.06 Forestry and logging A.061 Forestry and forestry services A.0611 Forestry A.0612 Services to forestry A.062 Logging A.07 Fishing

B. Mining

C. Manufacturing C.01 Meat and meat product manufacturing C.02 Dairy product manufacturing C.03 Other food manufacturing C.04 Beverage and malt manufacturing C.05 Tobacco product manufacturing C.06 Textile and apparel manufacturing C.07 Wood product manufacturing C.071 Wood product manufacturing C.0711 Log sawmilling and timber dressing C.0712 Other wood product manufacturing C.08 Paper and paper product manufacturing C.081 Pulp, paper and paperboard manufacturing C.0811 Pulp, paper and paperboard manufacturing C.082 Paper and paper board containers C.0821 Paper and paper board containers C.09 Printing, publishing and recorded media C.091 Printing, publishing and recorded media C.0911 Printing and services to printing C.0912 Publishing, recorded media manufacturing and publishing C.10 Petroleum and industrial chemical manufacturing C.11 Rubber, plastic and other chemical product manufacturing C.12 Non-metallic mineral product manufacturing C.13 Basic metal manufacturing C.14 Structural, sheet and fabricated metal product manufacturing

C.15 Transport equipment manufacturing C.16 Machinery and equipment manufacturing C.17 Furniture and other manufacturing C.171 Prefabricated building manufacturing 43 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

C.1711 Prefabricated building manufacturing C.172 Furniture manufacturing C.1721 Furniture manufacturing C.173 Other manufacturing nec

D. Electricity, Gas and Water Supply

E. Construction E.01 Construction E.011 Residential building construction E.0111 Residential building construction E.012 Owner builders E.0121 Owner builders E.013 Non-residential building construction E.0131 Non-residential building construction E.014 Non-building construction E.0141 Non-building construction E.015 Construction trade services

F. Wholesale Trade F.01 Wholesale trade F.011 Unprocessed primary products wholesaling F.012 Petroleum, metal and chemical product wholesaling F.013 Builders supplies wholesaling F.0131 Builders supplies wholesaling F.014 Machinery and equipment wholesaling F.015 Motor vehicle wholesaling F.016 Food, drink and tobacco wholesaling F.017 Personal and household goods wholesaling

G. Retail Trade H. Accommodation, Restaurants and Bars I. Transport and Storage J. Communication Services K. Finance and Insurance

L. Property and Business Services L01 Real estate L02 Ownership of owner-occupied dwellings L021 Ownership of owner-occupied dwellings L03 Equipment hire and investors in other property L04 Business services

M. Government Administration, Defence, Public Order and Safety Services N. Education O. Health and Community Services P. Cultural and Recreational Services Q. Personal and Other Services X. Expenditure on GDP Z. Unallocated Production and Taxes on Production and Imports

44 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

I. Tables

Please note that the years in the tables refer to years ending 31 March. For example, figures for the year 1995 cover the period 1April 1994 to 31 March 1995.

Key to Tables

- nil or zero -- figure too small to be expressed .. figures not available … not applicable

45 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Summary Table: Supply and Use of Forestry Products and Forestry Residuals (in Cubic Metres of Roundwood Equivalent, March Years)

Forestry Products 1995 1996 1997 1998 1999 2000

Logs and Poles 15,310,926 16,629,984 15,958,839 16,741,369 16,633,978 17,830,870 Wood Chips (chipped logs) 3,656,923 3,608,170 4,299,387 5,152,721 4,603,485 4,817,293 Sawn Timber 5,537,103 5,452,770 5,654,574 5,948,408 6,007,243 7,074,717 Veneer 373,621 404,755 480,847 463,783 458,309 608,561 Plywood 348,311 344,277 378,582 400,304 450,632 560,919 Particleboard 267,022 242,665 354,935 299,765 258,408 289,767 Fibreboard 1,040,347 954,375 814,383 933,820 919,047 1,129,930

Chemical Pulp 3,027,065 3,087,409 2,499,276 2,574,408 2,164,309 2,474,890 Mechanical Pulp 1,351,870 1,405,464 1,449,929 1,473,424 1,511,604 1,547,418 Newsprint 1,124,834 1,174,376 982,120 999,979 1,000,783 942,687 Other Paper and Paperboard 2,776,391 2,808,515 2,859,518 3,061,246 2,818,321 3,222,357

Forestry Residuals 1995 1996 1997 1998 1999 2000

Wood Chip Residuals 1,115,946 1,514,614 1,408,144 1,019,316 795,712 1,038,996 Black Liquor ...... Other Chemical Residuals ......

46 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Supplementary Table 1: Selected Forestry Product Exports by Country for the Year Ending March 2000

Logs Sawn Timber Plywood Particleboard Fibreboard Chemical Pulp Mechanical Pulp

Country of Percentage of Percentage of Percentage of Percentage of Percentage of Percentage of Percentage of 000m3 RE 000m3 RE 000m3 RE 000m3 RE 000m3 RE 000m3 RE 000m3 RE Destination Product Total Product Total Product Total Product Total Product Total Product Total Product Total

Australia 2,764 0.05 688,661 26.78 89,974 35.83 29,379 24.30 155,822 18.85 289,887 21.73 712 0.10

China 247,718 4.26 106,720 4.15 - - 3,779 3.13 40,639 4.92 108,697 8.15 116,432 15.83

Hong Kong 94 0.00 79,686 3.10 21,964 8.75 1,389 1.15 43,127 5.22 2,899 0.22 - -

India 203,926 3.51 ------10,018 1.21 2,748 0.21 - -

Indonesia - - 18,000 0.70 - - - - 15,397 1.86 199,650 14.97 62,220 8.46

Japan 1,586,136 27.30 448,211 17.43 120,588 48.02 84,246 69.69 316,070 38.23 30,564 2.29 450,808 61.29

Korea, Republic of 3,256,722 56.04 74,600 2.90 - - - - 35,460 4.29 241,499 18.10 22,884 3.11

Malaysia 17,169 0.30 12,956 0.50 - - - - 8,890 1.08 65,876 4.94 - -

Pacific Islands 1,191 0.02 50,925 1.98 9,157 3.65 675 0.56 12,174 1.47 347 0.03 - -

Philippines 180,464 3.11 32,126 1.25 - - 800 0.66 16,657 2.01 24,143 1.81 3,452 0.47

Singapore - - 61,914 2.41 2,325 0.93 482 0.40 11,642 1.41 9,628 0.72 - -

Taiwan 119,222 2.05 242,718 9.44 5,913 2.35 - - 107,941 13.06 139,505 10.46 33,040 4.49

Thailand 68,561 1.18 57,988 2.25 - - 96 0.08 3,568 0.43 84,664 6.35 282 0.04

United Arab Emirates 70,511 1.21 7,709 0.30 - - - - 6,700 0.81 - - - -

USA 44,094 0.76 653,184 25.40 1,198 0.48 - - 22,958 2.78 96,359 7.22 - -

Vietnam - - 26,319 1.02 ------20,749 1.56 42,532 5.78

Other countries 12,347 0.21 9,930 0.39 - - 42 0.03 19,613 2.37 16,872 1.26 3,136 0.43

Total 5,810,920 2,571,646 251,119 120,888 826,677 1,334,086 735,498

Source: MAF and SNZ trade data

Notes: ‘Other countries’ volumes may include volumes from countries separately identified in the table where the volume for a given product is too small to appear in MAF export data.

47 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Supplementary Table 2: Sawn Timber Production by Species (in Cubic Metres)

Native Species 1995 1996 1997 1998 1999 2000

Rimu and Miro 70,377 44,230 44,284 28,473 30,407 21,701 Matai 1,217 1,760 934 993 1,135 140 Totara 298 194 182 573 281 298 Kahikatea 2,535 630 518 278 319 596 Kauri 1,201 1,010 1,979 1,722 733 806 Tawa 1,958 3,288 1,310 719 1,038 1,197 Beech 7,428 3,770 6,881 5,024 3,724 5,613 Minor Species 326 152 173 37 410 82

Native Total 85,340 55,034 56,261 37,819 38,047 30,433

Exotic Species 1995 1996 1997 1998 1999 2000

Radiata Pine 2,591,003 2,631,088 2,761,011 2,994,547 2,995,781 3,583,420 Other Pines 100,570 63,089 52,928 18,686 27,138 27,948 Douglas fir 127,835 104,395 122,163 105,084 143,294 134,316 Eucalyptus 5,492 5,017 2,757 2,262 2,748 3,983 Minor Species 45,178 45,579 28,079 36,817 19,412 26,270

Exotic Total 2,870,078 2,849,168 2,966,938 3,157,396 3,188,373 3,775,937

All Species Total 2,955,418 2,904,202 3,023,199 3,195,215 3,226,420 3,806,370

48 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Supplementary Table 3: Use of Bark in Co-Generation Power Plants, March Years

1996 1997 1998 1999 2000 2001

Energy (gross petajoules) 3.96 3.54 4.57 6.26 6.42 6.42 Mass (tonnes) 437,086 390,728 504,415 690,949 708,609 708,609 Source: Ministry of Economic Development 2001, Energy Data File

Note: Figures actually show the use of wood in co-generation power plant, but wood commodities other than bark are thought to be insignificant.

49 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1995 (i): Supply and Use Summary in Original Units

Supply of Forestry Units Production Imports Total Products Logs and Poles m3 of RE 15,309,213 1,713 15,310,926 Wood Chips (chipped logs) BDU Not available in BDU 2.. Sawn Timber m3 2,955,418 29,274 2,984,692 Veneer m3 235,444 848 236,292 Plywood m3 150,543 4,151 154,694 Particleboard m3 175,995 1,629 177,624 Fibreboard m3 690,175 3,063 693,238 Chemical Pulp Air-dry tonnes 684,454 17,125 701,579 Mechanical Pulp Air-dry tonnes 675,935 - 675,935 Newsprint Tonnes 374,865 74 374,939 Other Paper and Paperboard Tonnes 501,322 167,266 668,588 Supply of Forestry Units Production Imports Total Residuals Wood Chip Residuals BDU Not available in BDU 0.. Black Liquor ...... Other Chemical Residuals … ......

Use of Forestry Consumption & Units Exports Total Products Stocks Logs and Poles m3 of RE 10,549,032 4,761,894 15,310,926 Wood Chips BDU Not available in BDU 230,188 .. Sawn Timber m3 1,955,376 1,029,316 2,984,692 Veneer m3 223,138 13,154 236,292 Plywood m3 44,739 109,955 154,694 Particleboard m3 56,611 121,013 177,624 Fibreboard m3 310,211 383,027 693,238 Chemical Pulp Air-dry tonnes 380,960 320,619 701,579 Mechanical Pulp Air-dry tonnes 353,624 322,311 675,935 Newsprint Tonnes 139,483 235,456 374,939 Other Paper and Paperboard Tonnes 551,092 117,496 668,588 Use of Forestry Consumption & Units Exports Total Residuals Stocks Wood Chip Residuals BDU Not available in BDU 0.. Black Liquor ...... Other Chemical Residuals … ......

50 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1995 (ii): Supply and Use Summary (in Cubic Metres of Roundwood Equivalent)

Supply of Forestry Production Imports Total Products Logs and Poles 15,309,213 1,713 15,310,926 Wood Chips (chipped logs) 3,656,918 5 3,656,923 Sawn Timber 5,472,700 64,403 5,537,103 Veneer 372,002 1,620 373,621 Plywood 338,722 9,589 348,311 Particleboard 263,993 3,030 267,022 Fibreboard 1,035,263 5,085 1,040,347 Chemical Pulp 2,943,152 83,913 3,027,065 Mechanical Pulp 1,351,870 - 1,351,870 Newsprint 1,124,595 239 1,124,834 Other Paper and Paperboard 2,000,275 776,116 2,776,391 Supply of Forestry Production Imports Total Residuals Wood Chip Residuals 1,115,946 0 1,115,946 Black Liquor ...... Other Chemical Residuals ......

Use of Forestry Consumption & Exports Total Products Stocks Logs and Poles 10,549,032 4,761,894 15,310,926 Wood Chips 3,051,529 605,394 3,656,923 Sawn Timber 3,632,741 1,904,361 5,537,103 Veneer 352,838 20,783 373,621 Plywood 100,912 247,399 348,311 Particleboard 85,503 181,520 267,022 Fibreboard 465,807 574,541 1,040,347 Chemical Pulp 1,648,403 1,378,662 3,027,065 Mechanical Pulp 707,248 644,622 1,351,870 Newsprint 418,466 706,369 1,124,834 Other Paper and Paperboard 2,307,581 468,811 2,776,391 Use of Forestry Consumption & Exports Total Residuals Stocks Wood Chip Residuals 1,115,946 0 1,115,946 Black Liquor ...... Other Chemical Residuals ......

51 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1996 (i): Supply and Use Summary in Original Units

Supply of Forestry Units Production Imports Total Products Logs and Poles m3 of RE 16,628,106 1,878 16,629,984 Wood Chips (chipped logs) BDU Not available in BDU 48 .. Sawn Timber m3 2,904,202 34,782 2,938,984 Veneer m3 259,928 2,338 262,266 Plywood m3 160,481 5,230 165,711 Particleboard m3 159,082 2,173 161,255 Fibreboard m3 632,019 3,823 635,842 Chemical Pulp Air-dry tonnes 702,575 13,538 716,113 Mechanical Pulp Air-dry tonnes 702,732 0 702,732 Newsprint Tonnes 391,436 21 391,457 Other Paper and Paperboard Tonnes 501,533 174,008 675,541 Supply of Forestry Units Production Imports Total Residuals Wood Chip Residuals BDU Not available in BDU 0.. Black Liquor ...... Other Chemical Residuals … ......

Use of Forestry Consumption & Units Exports Total Products Stocks Logs and Poles m3 of RE 11,021,200 5,608,784 16,629,984 Wood Chips BDU Not available in BDU 285,971 .. Sawn Timber m3 1,954,692 984,292 2,938,984 Veneer m3 252,935 9,331 262,266 Plywood m3 36,919 128,792 165,711 Particleboard m3 48,320 112,545 161,255 Fibreboard m3 269,808 366,034 635,842 Chemical Pulp Air-dry tonnes 423,516 292,597 716,113 Mechanical Pulp Air-dry tonnes 386,753 315,979 702,732 Newsprint Tonnes 150,330 241,127 391,457 Other Paper and Paperboard Tonnes 565,628 109,914 675,541 Use of Forestry Consumption & Units Exports Total Residuals Stocks Wood Chip Residuals BDU Not available in BDU 0.. Black Liquor ...... Other Chemical Residuals … ......

52 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1996 (ii): Supply and Use Summary (in Cubic Metres of Roundwood Equivalent)

Supply of Forestry Production Imports Total Products Logs and Poles 16,628,106 1,878 16,629,984 Wood Chips (chipped logs) 3,608,044 126 3,608,170 Sawn Timber 5,376,250 76,520 5,452,770 Veneer 400,289 4,466 404,755 Plywood 332,196 12,081 344,277 Particleboard 238,623 4,042 242,665 Fibreboard 948,029 6,346 954,375 Chemical Pulp 3,021,073 66,336 3,087,409 Mechanical Pulp 1,405,464 - 1,405,464 Newsprint 1,174,308 68 1,174,376 Other Paper and Paperboard 2,001,117 807,398 2,808,515 Supply of Forestry Production Imports Total Residuals Wood Chip Residuals 1,514,614 0 1,514,614 Black Liquor ...... Other Chemical Residuals ......

Use of Forestry Consumption & Exports Total Products Stocks Logs and Poles 11,021,200 5,608,784 16,629,984 Wood Chips 2,856,066 752,104 3,608,170 Sawn Timber 8,403,033 752,104 9,155,137 Veneer 390,385 14,370 404,755 Plywood 77,678 266,599 344,277 Particleboard 73,262 169,403 242,665 Fibreboard 405,324 549,051 954,375 Chemical Pulp 1,829,242 1,258,167 3,087,409 Mechanical Pulp 773,506 631,958 1,405,464 Newsprint 450,996 723,380 1,174,376 Other Paper and Paperboard 2,369,960 438,555 2,808,515 Use of Forestry Consumption & Exports Total Residuals Stocks Wood Chip Residuals 1,514,614 0 1,514,614 Black Liquor ...... Other Chemical Residuals ......

53 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1997 (i): Supply and Use Summary in Original Units

Supply of Forestry Units Production Imports Total Products Logs and Poles m3 of RE 15,955,952 2,887 15,958,839 Wood Chips (chipped logs) BDU Not available in BDU 327 .. Sawn Timber m3 3,023,199 40,152 3,063,351 Veneer m3 300,648 3,049 303,697 Plywood m3 180,713 5,080 185,793 Particleboard m3 233,988 2,125 236,113 Fibreboard m3 536,831 5,504 542,335 Chemical Pulp Air-dry tonnes 652,308 16,166 668,474 Mechanical Pulp Air-dry tonnes 724,956 7 724,963 Newsprint Tonnes 384,147 1,977 386,124 Other Paper and Paperboard Tonnes 493,005 198,709 691,714 Supply of Forestry Units Production Imports Total Residuals Wood Chip Residuals BDU Not available in BDU 0.. Black Liquor ...... Other Chemical Residuals … ......

Use of Forestry Consumption & Units Exports Total Products Stocks Logs and Poles m3 of RE 10,490,297 5,468,542 15,958,839 Wood Chips BDU Not available in BDU 228,559 .. Sawn Timber m3 2,051,413 1,011,938 3,063,351 Veneer m3 294,460 9,237 303,697 Plywood m3 92,249 93,544 185,793 Particleboard m3 121,810 114,303 236,113 Fibreboard m3 185,533 356,802 542,335 Chemical Pulp Air-dry tonnes 348,181 320,293 668,474 Mechanical Pulp Air-dry tonnes 358,611 366,352 724,963 Newsprint Tonnes 132,808 253,317 386,124 Other Paper and Paperboard Tonnes 570,803 120,911 691,714 Use of Forestry Consumption & Units Exports Total Residuals Stocks Wood Chip Residuals BDU Not available in BDU 0.. Black Liquor ...... Other Chemical Residuals … ......

54 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1997 (ii): Supply and Use Summary (in Cubic Metres of Roundwood Equivalent)

Supply of Forestry Production Imports Total Products Logs and Poles 15,955,952 2,887 15,958,839 Wood Chips (chipped logs) 4,298,517 870 4,299,387 Sawn Timber 5,566,240 88,334 5,654,574 Veneer 475,024 5,824 480,847 Plywood 366,847 11,735 378,582 Particleboard 350,982 3,953 354,935 Fibreboard 805,247 9,137 814,383 Chemical Pulp 2,420,063 79,213 2,499,276 Mechanical Pulp 1,449,912 17 1,449,929 Newsprint 975,733 6,387 982,120 Other Paper and Paperboard 1,937,510 922,009 2,859,518 Supply of Forestry Production Imports Total Residuals Wood Chip Residuals 1,408,144 0 1,408,144 Black Liquor ...... Other Chemical Residuals ......

Use of Forestry Consumption & Exports Total Products Stocks Logs and Poles 10,490,297 5,468,542 15,958,839 Wood Chips 3,691,420 607,967 4,299,387 Sawn Timber 3,792,486 1,862,088 5,654,574 Veneer 466,253 14,594 480,847 Plywood 188,688 189,894 378,582 Particleboard 183,480 171,455 354,935 Fibreboard 279,180 535,203 814,383 Chemical Pulp 1,310,989 1,188,287 2,499,276 Mechanical Pulp 717,225 732,704 1,449,929 Newsprint 338,696 643,424 982,120 Other Paper and Paperboard 2,384,338 475,180 2,859,518 Use of Forestry Consumption & Exports Total Residuals Stocks Wood Chip Residuals 1,408,144 0 1,408,144 Black Liquor ...... Other Chemical Residuals ......

55 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1998 (i): Supply and Use Summary in Original Units

Supply of Forestry Units Production Imports Total Products Logs and Poles m3 of RE 16,738,796 2,573 16,741,369 Wood Chips (chipped logs) BDU Not available in BDU 10 .. Sawn Timber m3 3,195,215 30,431 3,225,646 Veneer m3 292,171 1,127 293,298 Plywood m3 189,447 6,808 196,255 Particleboard m3 196,395 2,781 199,176 Fibreboard m3 613,345 8,315 621,660 Chemical Pulp Air-dry tonnes 675,453 13,975 689,428 Mechanical Pulp Air-dry tonnes 736,712 - 736,712 Newsprint Tonnes 393,545 116 393,661 Other Paper and Paperboard Tonnes 486,031 248,091 734,122 Supply of Forestry Units Production Imports Total Residuals Wood Chip Residuals BDU Not available in BDU 0.. Black Liquor ...... Other Chemical Residuals … ......

Use of Forestry Consumption & Units Exports Total Products Stocks Logs and Poles m3 of RE 11,142,057 5,599,312 16,741,369 Wood Chips BDU Not available in BDU 261,873 .. Sawn Timber m3 2,042,925 1,182,721 3,225,646 Veneer m3 286,318 6,980 293,298 Plywood m3 92,688 103,567 196,255 Particleboard m3 107,725 91,451 199,176 Fibreboard m3 228,347 393,313 621,660 Chemical Pulp Air-dry tonnes 376,271 313,157 689,428 Mechanical Pulp Air-dry tonnes 408,617 328,095 736,712 Newsprint Tonnes 129,408 264,253 393,661 Other Paper and Paperboard Tonnes 571,173 162,949 734,122 Use of Forestry Consumption & Units Exports Total Residuals Stocks Wood Chip Residuals BDU Not available in BDU 0.. Black Liquor ...... Other Chemical Residuals … ......

56 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1998 (ii): Supply and Use Summary (in Cubic Metres of Roundwood Equivalent)

Supply of Forestry Production Imports Total Products Logs and Poles 16,738,796 2,573 16,741,369 Wood Chips (chipped logs) 5,152,694 27 5,152,721 Sawn Timber 5,881,460 66,948 5,948,408 Veneer 461,630 2,153 463,783 Plywood 384,577 15,726 400,304 Particleboard 294,593 5,173 299,765 Fibreboard 920,018 13,803 933,820 Chemical Pulp 2,505,931 68,478 2,574,408 Mechanical Pulp 1,473,424 - 1,473,424 Newsprint 999,604 375 999,979 Other Paper and Paperboard 1,910,102 1,151,144 3,061,246 Supply of Forestry Production Imports Total Residuals Wood Chip Residuals 1,019,316 0 1,019,316 Black Liquor ...... Other Chemical Residuals ......

Use of Forestry Consumption & Exports Total Products Stocks Logs and Poles 11,142,057 5,599,312 16,741,369 Wood Chips 4,456,139 696,582 5,152,721 Sawn Timber 3,772,127 2,176,282 5,948,408 Veneer 452,754 11,028 463,783 Plywood 190,063 210,241 400,304 Particleboard 162,589 137,177 299,765 Fibreboard 343,851 589,970 933,820 Chemical Pulp 1,412,596 1,161,812 2,574,408 Mechanical Pulp 817,234 656,190 1,473,424 Newsprint 328,777 671,202 999,979 Other Paper and Paperboard 2,420,857 640,390 3,061,246 Use of Forestry Consumption & Exports Total Residuals Stocks Wood Chip Residuals 1,019,316 0 1,019,316 Black Liquor ...... Other Chemical Residuals ......

57 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1999 (i): Supply and Use Summary in Original Units

Supply of Forestry Units Production Imports Total Products Logs and Poles m3 of RE 16,629,791 4,187 16,633,978 Wood Chips (chipped logs) BDU Not available in BDU 33 .. Sawn Timber m3 3,226,420 31,247 3,257,667 Veneer m3 285,825 518 286,343 Plywood m3 192,445 5,966 198,411 Particleboard m3 169,569 2,180 171,749 Fibreboard m3 600,673 10,866 611,539 Chemical Pulp Air-dry tonnes 645,032 19,134 664,166 Mechanical Pulp Air-dry tonnes 755,707 79 755,786 Newsprint Tonnes 383,372 56 383,428 Other Paper and Paperboard Tonnes 430,942 279,547 710,489 Supply of Forestry Units Production Imports Total Residuals Wood Chip Residuals BDU Not available in BDU 0.. Black Liquor ...... Other Chemical Residuals … ......

Use of Forestry Consumption & Units Exports Total Products Stocks Logs and Poles m3 of RE 11,826,147 4,807,831 16,633,978 Wood Chips BDU Not available in BDU 284,787 .. Sawn Timber m3 2,017,439 1,240,228 3,257,667 Veneer m3 282,294 4,049 286,343 Plywood m3 95,707 102,704 198,411 Particleboard m3 100,381 71,368 171,749 Fibreboard m3 187,176 424,363 611,539 Chemical Pulp Air-dry tonnes 312,931 351,235 664,166 Mechanical Pulp Air-dry tonnes 435,875 319,911 755,786 Newsprint Tonnes 132,031 251,397 383,428 Other Paper and Paperboard Tonnes 514,376 196,113 710,489 Use of Forestry Consumption & Units Exports Total Residuals Stocks Wood Chip Residuals BDU Not available in BDU 0.. Black Liquor ...... Other Chemical Residuals … ......

58 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1999 (ii): Supply and Use Summary (in Cubic Metres of Roundwood Equivalent)

Supply of Forestry Production Imports Total Products Logs and Poles 16,629,791 4,187 16,633,978 Wood Chips (chipped logs) 4,603,397 88 4,603,485 Sawn Timber 5,938,500 68,743 6,007,243 Veneer 457,320 989 458,309 Plywood 436,850 13,781 450,632 Particleboard 254,354 4,055 258,408 Fibreboard 901,010 18,038 919,047 Chemical Pulp 2,070,553 93,757 2,164,309 Mechanical Pulp 1,511,414 190 1,511,604 Newsprint 1,000,601 182 1,000,783 Other Paper and Paperboard 1,521,225 1,297,096 2,818,321 Supply of Forestry Production Imports Total Residuals Wood Chip Residuals 795,712 0 795,712 Black Liquor ...... Other Chemical Residuals ......

Use of Forestry Consumption & Exports Total Products Stocks Logs and Poles 11,826,147 4,807,831 16,633,978 Wood Chips 3,845,952 757,533 4,603,485 Sawn Timber 3,725,145 2,282,099 6,007,244 Veneer 451,831 6,478 458,309 Plywood 217,494 233,138 450,632 Particleboard 151,356 107,052 258,408 Fibreboard 282,503 636,545 919,047 Chemical Pulp 1,036,845 1,127,464 2,164,309 Mechanical Pulp 871,782 639,822 1,511,604 Newsprint 344,637 656,146 1,000,783 Other Paper and Paperboard 2,126,042 692,279 2,818,321 Use of Forestry Consumption & Exports Total Residuals Stocks Wood Chip Residuals 795,712 0 795,712 Black Liquor ...... Other Chemical Residuals ......

59 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 2000 (i): Supply and Use Summary in Original Units

Supply of Forestry Units Production Imports Total Products Logs and Poles m3 of RE 17,827,751 3,119 17,830,870 Wood Chips (chipped logs) BDU Not available in BDU 3.. Sawn Timber m3 3,806,370 31,626 3,837,996 Veneer m3 378,282 1,733 380,015 Plywood m3 239,947 7,030 246,977 Particleboard m3 188,054 4,132 192,186 Fibreboard m3 744,879 7,597 752,476 Chemical Pulp Air-dry tonnes 753,885 11,208 765,093 Mechanical Pulp Air-dry tonnes 773,680 24 773,704 Newsprint Tonnes 360,623 452 361,075 Other Paper and Paperboard Tonnes 469,189 337,526 806,715 Supply of Forestry Units Production Imports Total Residuals Wood Chip Residuals BDU Not available in BDU 0.. Black Liquor ...... Other Chemical Residuals … ......

Use of Forestry Consumption & Units Exports Total Products Stocks Logs and Poles m3 of RE 12,019,950 5,810,920 17,830,870 Wood Chips BDU Not available in BDU 273,927 .. Sawn Timber m3 2,440,405 1,397,591 3,837,996 Veneer m3 358,928 21,087 380,015 Plywood m3 136,352 110,625 246,977 Particleboard m3 111,594 80,592 192,186 Fibreboard m3 201,358 551,118 752,476 Chemical Pulp Air-dry tonnes 349,490 415,603 765,093 Mechanical Pulp Air-dry tonnes 405,955 367,749 773,704 Newsprint Tonnes 153,732 207,343 361,075 Other Paper and Paperboard Tonnes 569,620 237,095 806,715 Use of Forestry Consumption & Units Exports Total Residuals Stocks Wood Chip Residuals BDU Not available in BDU 0.. Black Liquor ...... Other Chemical Residuals … ......

60 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 2000 (ii): Supply and Use Summary (in Cubic Metres of Roundwood Equivalent)

Supply of Forestry Production Imports Total Products Logs and Poles 17,827,751 3,119 17,830,870 Wood Chips (chipped logs) 4,817,285 8 4,817,293 Sawn Timber 7,005,140 69,577 7,074,717 Veneer 605,251 3,310 608,561 Plywood 544,680 16,239 560,919 Particleboard 282,081 7,686 289,767 Fibreboard 1,117,319 12,611 1,129,930 Chemical Pulp 2,419,971 54,919 2,474,890 Mechanical Pulp 1,547,360 58 1,547,418 Newsprint 941,226 1,461 942,687 Other Paper and Paperboard 1,656,237 1,566,120 3,222,357 Supply of Forestry Production Imports Total Residuals Wood Chip Residuals 1,038,996 0 1,038,996 Black Liquor ...... Other Chemical Residuals ......

Use of Forestry Consumption & Exports Total Products Stocks Logs and Poles 12,019,950 5,810,920 17,830,870 Wood Chips 4,088,647 728,646 4,817,293 Sawn Timber 4,503,072 2,571,646 7,074,717 Veneer 574,822 33,739 608,561

Plywood 309,800 251,119 560,919

Particleboard 168,879 120,888 289,767 Fibreboard 303,253 826,677 1,129,930 Chemical Pulp 1,140,804 1,334,086 2,474,890 Mechanical Pulp 811,920 735,498 1,547,418 Newsprint 401,522 541,165 942,687 Other Paper and Paperboard 2,383,688 836,945 3,222,357 Use of Forestry Consumption & Exports Total Residuals Stocks Wood Chip Residuals 1,038,996 0 1,038,996 Black Liquor ...... Other Chemical Residuals ......

61 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1995 (iii): Supply and Use Industry Breakdown

Supply of Forestry Products (cubic metres of roundwood equivalent)

OUTPUT BY INDUSTRIES - (ANZIND96 V5.0)

COMMODITIES Sheep & Dairy Forestry Other agriculture Log sawmilling Other wood Pulp Paper and Printing and Other Non-building Builders All TOTAL IMPORTS TOTAL Forestry Products beef cattle cattle forestry and timber product paper and paperboard services manufacturing construction supplies Other Production SUPPLY farming farming and logging dressing mfg paperboard mfg containers to printing wholesaling Industries

Logs and Poles 12,714 2,200 14,516,051 392,645 ------385,603 15,309,213 1,713 15,310,926 Wood Chips (chipped logs) - - - - 3,656,918 ------3,656,918 5 3,656,923 Sawn Timber - - 28,135 7,540 4,572,984 5,737 341,857 - - 16,588 31,476 249,164 219,219 5,472,700 64,403 5,537,103 Veneer - - - - - 372,002 ------372,002 1,620 373,622 Plywood - - - - 3,208 331,762 - - - 3,752 - - - 338,722 9,589 348,311 Particleboard - - - - 1,010 261,807 - - - 1,176 - - - 263,993 3,030 267,023 Fibreboard - - - - 6,807 999,617 - 20,877 - 7,962 - - - 1,035,263 5,085 1,040,348 Chemical Pulp ------2,943,152 ------2,943,152 83,913 3,027,065 Mechanical Pulp ------1,351,870 ------1,351,870 - 1,351,870 Newsprint ------1,124,595 ------1,124,595 239 1,124,834 Other Paper & Paperboard ------1,213,659 752,916 - 31,486 - - 2,214 2,000,275 776,116 2,776,391 TOTAL 12,714 2,200 14,544,186 400,185 8,240,926 1,970,925 6,975,133 773,793 - 60,964 31,476 249,164 607,036 33,868,703 945,713 34,814,416

Residuals

Wood Chip Residues - - - - 808,756 58,480 248,710 ------1,115,946 - 1,115,946 Black Liquor ...... Other Chemical Residuals ...... TOTAL - - - - 808,756 58,480 248,710 ------1,115,946 - 1,115,946

Use of Forestry Products (cubic metres of roundwood equivalent)

INTERMEDIATE CONSUMPTION BY INDUSTRIES - (ANZIND96 V5.0) COMMODITIES Sheep & Dairy Forestry Other agriculture Log sawmilling Other wood Pulp Paper and Printing and Publishing recorded Furniture Other Residential Non-residential Non-building Other Builders Ownership of All Total Total Changes TOTAL EXPORTS TOTAL Forestry Products beef cattle cattle forestry and timber product paper and paperboard services media mfg mfg mfg building construction construction construction supplies owner-occupied Other Intermediate Household in Capital & Consumption USE farming farming and logging dressing mfg paperboard mfg containers to printing and publishing construction wholesaling dwellings Industries Consumption Consumption Inventories

Logs and Poles 42,280 51,640 1,360 110,240 4,538,156 1,216,512 3,804,661 - - - - - 76,918 - - - 512,786 - 27,800 10,382,353 166,680 - 10,549,033 4,761,894 15,310,927 Wood Chips (chipped logs) - - - - - 702,342 2,349,187 ------3,051,529 - - 3,051,529 605,394 3,656,923 Sawn Timber - - 258 84 33,726 1,177,509 125,284 - - - 221,838 198,105 819,829 706,452 187,802 32,600 - - 129,256 3,632,741 - - 3,632,741 1,904,361 5,537,102 Veneer - - - - - 218,126 - - - - 134,712 ------352,838 - - 352,838 20,783 373,621 Plywood 127 156 - 111 ------7,266 4,220 48,948 37,907 - 742 - 1,079 355 100,912 - - 100,912 247,399 348,311 Particleboard 108 134 - 96 ------6,220 2,755 41,889 32,442 - 634 - 923 302 85,503 - - 85,503 181,520 267,023 Fibreboard 614 751 - 532 - - - 7,254 - - 24,901 2,796 235,835 182,639 - 3,575 - 5,203 1,708 465,806 - - 465,806 574,541 1,040,347 Chemical Pulp ------1,638,741 9,662 ------1,648,403 - - 1,648,403 1,378,662 3,027,065 Mechanical Pulp ------707,248 ------707,248 - - 707,248 644,622 1,351,870 Newsprint ------418,466 ------418,466 - - 418,466 706,369 1,124,835 Other Paper & Paperboard - 2,714 - 116,956 9,812 - - 35,173 481,395 371,924 - 71,642 - - - 3,081 5,127 17,568 1,156,833 2,272,225 35,356 - 2,307,582 468,811 2,776,393 TOTAL 43,129 55,395 1,618 228,019 4,581,694 3,314,489 8,625,121 52,089 481,395 790,390 394,936 279,518 1,223,419 959,440 187,802 40,631 517,913 24,773 1,316,254 23,118,025 202,036 - 23,320,061 11,494,356 34,814,417

Residuals

Wood Chip Residues - - - - - 867,236 248,710 ------1,115,946 - - 1,115,946 - 1,115,946 Black Liquor ...... Other Chemical Residuals ...... TOTAL - - - - - 867,236 248,710 ------1,115,946 - - 1,115,946 - 1,115,946

62 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1996 (iii): Supply and Use Industry Breakdown

Supply of Forestry Products (cubic metres of roundwood equivalent)

OUTPUT BY INDUSTRIES - (ANZIND96 V5.0)

COMMODITIES Sheep & Dairy Forestry Other agriculture Log sawmilling Other wood Pulp Paper and Printing and Other Non-building Builders All TOTAL IMPORTS TOTAL Forestry Products beef cattle cattle forestry and timber product paper and paperboard services manufacturing construction supplies Other Production SUPPLY farming farming and logging dressing mfg paperboard mfg containers to printing wholesaling Industries

Logs and Poles 13,810 2,390 15,766,613 426,471 ------418,823 16,628,106 1,878 16,629,984 Wood Chips (chipped logs) - - - - 3,608,044 ------3,608,044 126 3,608,170 Sawn Timber - - 27,639 7,407 4,492,390 5,636 335,832 - - 16,296 30,921 244,773 215,356 5,376,250 76,520 5,452,770 Veneer - - - - - 400,289 ------400,289 4,466 404,755 Plywood - - - - 3,146 325,370 - - - 3,680 - - - 332,196 12,081 344,277 Particleboard - - - - 913 236,647 - - - 1,063 - - - 238,623 4,042 242,665 Fibreboard - - - - 6,233 915,387 - 19,118 - 7,291 - - - 948,029 6,346 954,375 Chemical Pulp ------3,021,073 ------3,021,073 66,336 3,087,409 Mechanical Pulp ------1,405,464 ------1,405,464 - 1,405,464 Newsprint ------1,174,308 ------1,174,308 68 1,174,376 Other Paper & Paperboard ------1,214,170 753,233 - 31,499 - - 2,215 2,001,117 807,398 2,808,515 TOTAL 13,810 2,390 15,794,252 433,878 8,110,726 1,883,328 7,150,846 772,351 - 59,829 30,921 244,773 636,394 35,133,497 979,262 36,112,759

Residuals

Wood Chip Residues - - - - 1,080,118 168,940 265,556 ------1,514,614 - 1,514,614 Black Liquor ...... Other Chemical Residuals ...... TOTAL 1,080,118 168,940 265,556

Use of Forestry Products (cubic metres of roundwood equivalent)

INTERMEDIATE CONSUMPTION BY INDUSTRIES - (ANZIND96 V5.0) COMMODITIES Sheep & Dairy Forestry Other agriculture Log sawmilling Other wood Pulp Paper and Printing and Publishing recorded Furniture Other Residential Non-residential Non-building Other Builders Ownership of All Total Total Changes TOTAL EXPORTS TOTAL Forestry Products beef cattle cattle forestry and timber product paper and paperboard services media mfg mfg mfg building construction construction construction supplies owner-occupied Other Intermediate Household in Capital & Consumption USE farming farming and logging dressing mfg paperboard mfg containers to printing and publishing construction wholesaling dwellings Industries Consumption Consumption Inventories

Logs and Poles 42,280 51,640 1,360 110,240 4,855,210 1,301,848 3,833,239 - - - - - 82,292 - - - 548,611 27,800 10,854,520 166,680 - 11,021,200 5,608,784 16,629,984 Wood Chips (chipped logs) - - - - - 474,842 2,381,224 ------2,856,066 - - 2,856,066 752,104 3,608,170 Sawn Timber - - 259 - 33,846 1,181,789 125,730 - - - 222,628 198,811 822,750 708,969 188,471 32,716 - - 129,717 3,645,686 - - 13,934 3,631,752 1,821,019 5,452,770 Veneer - - - - - 241,338 - - - - 149,047 ------390,385 - - 390,385 14,370 404,755 Plywood 94 115 - 82 ------5,367 3,117 36,154 27,999 - 548 - 797 262 74,535 - 3,143 77,678 266,599 344,277 Particleboard 92 115 - 82 ------5,321 2,357 35,836 27,754 - 542 - 790 258 73,147 - 115 73,262 169,403 242,665 Fibreboard 534 653 - 463 - - - 6,311 - - 21,665 2,433 205,187 158,904 - 3,110 - 4,527 1,486 405,273 - 51 405,324 549,051 954,375 Chemical Pulp ------1,818,520 10,722 ------1,829,242 - - 1,829,242 1,258,167 3,087,409 Mechanical Pulp ------773,506 ------773,506 - - 773,506 631,958 1,405,464 Newsprint ------450,996 ------450,996 - - 450,996 723,380 1,174,376 Other Paper & Paperboard - 2,758 - 118,848 9,971 - - 35,742 489,183 377,941 - 72,801 - - - 3,131 5,210 17,852 1,175,548 2,308,985 35,928 25,047 2,369,960 438,555 2,808,515 TOTAL 43,000 55,281 1,619 229,715 4,899,027 3,199,817 8,932,219 52,775 489,183 828,937 404,028 279,519 1,182,219 923,626 188,471 40,047 553,821 23,966 1,335,071 23,662,341 202,608 14,422 23,879,370 12,233,390 36,112,760

Residuals

Wood Chip Residues - - - - - 1,018,446 496,168 ------1,514,614 - - 1,514,614 - 1,514,614 Black Liquor ...... Other Chemical Residuals ...... TOTAL 1,018,446 496,168

63 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1997 (iii): Supply and Use Industry Breakdown

Supply of Forestry Products (cubic metres of roundwood equivalent)

OUTPUT BY INDUSTRIES - (ANZIND96 V5.0)

COMMODITIES Sheep & Dairy Forestry Other agriculture Log sawmilling Other wood Pulp Paper and Printing and Other Non-building Builders All TOTAL IMPORTS TOTAL Forestry Products beef cattle cattle forestry and timber product paper and paperboard services manufacturing construction supplies Other Production SUPPLY farming farming and logging dressing mfg paperboard mfg containers to printing wholesaling Industries

Logs and Poles 13,252 2,293 15,129,283 409,232 ------401,893 15,955,952 2,887 15,958,839 Wood Chips (chipped logs) - - - - 4,298,517 ------4,298,517 870 4,299,387 Sawn Timber - - 24,459 8,035 4,756,817 5,968 259,405 - - 16,071 29,250 241,542 224,694 5,566,241 88,334 5,654,575 Veneer - - - - - 475,024 ------475,024 5,824 480,848 Plywood - - - - 3,474 359,684 3,689 366,847 11,735 378,582 Particleboard - - - - 1,343 348,076 1,564 350,982 3,953 354,935 Fibreboard - - - - 5,218 777,897 16,884 5,248 805,247 9,137 814,384 Chemical Pulp ------2,420,063 ------2,420,063 79,213 2,499,276 Mechanical Pulp ------1,449,912 ------1,449,912 17 1,449,929 Newsprint ------975,733 ------975,733 6,387 982,120 Other Paper & Paperboard 1,232,379 669,199 - 33,594 - - 2,338 1,937,510 922,009 2,859,519 TOTAL 13,252 2,293 15,153,741 417,267 9,065,370 1,966,649 6,337,492 686,083 - 60,166 29,250 241,542 628,924 34,602,028 1,130,366 35,732,394

Residuals

Wood Chip Residues - - - - 940,852 185,058 282,234 ------1,408,144 - 1,408,144 Black Liquor...... Other Chemical Residuals ...... TOTAL - - - - 940,852 185,058 282,234 ------1,408,144 - 1,408,144

Use of Forestry Products (cubic metres of roundwood equivalent)

INTERMEDIATE CONSUMPTION BY INDUSTRIES - (ANZIND96 V5.0)

COMMODITIES Sheep & Dairy Forestry Other agriculture Log sawmilling Other wood Pulp Paper and Printing and Publishing recorded Furniture Other Residential Non-residential Non-building Other Builders Ownership of All Total Total Changes TOTAL EXPORTS TOTAL Forestry Products beef cattle cattle forestry and timber product paper and paperboard services media mfg mfg mfg building construction construction construction supplies owner-occupied Other Intermediate Household in Capital & Consumption USE farming farming and logging dressing mfg paperboard mfg containers to printing and publishing construction wholesaling dwellings Industries Consumption Consumption Inventories

Logs and Poles 47,921 51,536 36,917 69,147 4,940,651 1,356,239 3,151,402 83,740 558,266 27,800 10,323,617 166,680 - 10,490,297 5,468,542 15,958,839 Wood Chips (chipped logs) - - - - - 750,800 2,940,620 ------3,691,420 - - 3,691,420 607,967 4,299,387 Sawn Timber - - 261 102 35,044 1,223,525 137,231 - - - 206,003 224,768 873,666 713,426 169,521 39,602 - - 169,334 3,792,485 - 3,792,485 1,862,088 5,654,573 Veneer - - - - - 131,275 334,978 ------466,253 - - 466,253 14,594 480,847 Plywood 268 261 - 158 ------13,537 4,891 94,525 70,480 - 1,787 - 2,118 663 188,688 - - 188,688 189,894 378,582 Particleboard 263 256 - 151 ------13,297 3,437 92,365 69,207 - 1,770 - 2,087 647 183,480 - - 183,480 171,455 354,935 Fibreboard 376 450 - 211 - - - 6,168 - - 14,874 1,676 146,042 102,859 - 2,142 - 3,289 1,093 279,180 - - 279,180 535,203 814,383 Chemical Pulp - - - - - 1,303,305 7,685 ------1,310,990 - - 1,310,990 1,188,287 2,499,277 Mechanical Pulp ------717,225 ------717,225 - - 717,225 732,704 1,449,929 Newsprint ------338,696 ------338,696 - - 338,696 643,424 982,120 Other Paper & Paperboard 2,894 - 123,653 10,888 - - 36,342 465,273 384,295 - 77,173 - - - 3,675 6,319 19,085 1,218,209 2,347,806 36,532 - 2,384,338 475,180 2,859,518 TOTAL 48,828 55,397 37,178 193,421 4,986,584 3,461,839 8,249,783 50,196 465,273 722,991 582,689 311,945 1,290,338 955,973 169,521 48,976 564,584 26,578 1,417,746 23,639,840 203,212 - 23,843,052 11,889,338 35,732,390

Residuals

Wood Chip Residues - - - - - 874,110 534,034 ------1,408,144 - - 1,408,144 - 1,408,144 Black Liquor...... Other Chemical Residuals ...... TOTAL - - - - - 874,110 534,034 ------1,408,144 - - 1,408,144 - 1,408,144

64 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1998 (iii): Supply and Use Industry Breakdown

Supply of Forestry Products (cubic metres of roundwood equivalent)

OUTPUT BY INDUSTRIES - (ANZIND96 V5.0)

COMMODITIES Sheep & Dairy Forestry Other agriculture Log sawmilling Other wood Pulp Paper and Printing and Other Non-building Builders All TOTAL IMPORTS TOTAL Forestry Products beef cattle cattle forestry and timber product paper and paperboard services manufacturing construction supplies Other Production SUPPLY farming farming and logging dressing mfg paperboard mfg containers to printing wholesaling Industries

Logs and Poles 16,016 2,477 15,550,761 516,504 ------653,037 16,738,795 2,573 16,741,368 Wood Chips (chipped logs) - - - - 5,152,694 ------5,152,694 27 5,152,721 Sawn Timber - - 25,049 8,793 5,015,506 6,305 270,838 - - 18,494 34,183 327,378 174,914 5,881,461 66,948 5,948,409 Veneer - - - - - 461,630 ------461,630 2,153 463,783 Plywood - - - - 3,642 377,068 3,867 384,577 15,726 400,303 Particleboard - - - - 1,127 292,154 1,312 294,593 5,173 299,766 Fibreboard - - - - 5,776 887,865 - 19,814 - 6,563 920,018 13,803 933,821 Chemical Pulp 2,505,931 ------2,505,931 68,478 2,574,409 Mechanical Pulp ------1,473,424 ------1,473,424 - 1,473,424 Newsprint ------999,604 ------999,604 375 999,979 Other Paper & Paperboard 1,135,511 738,963 - 26,754 - - 8,874 1,910,102 1,151,144 3,061,246 TOTAL 16,016 2,477 15,575,810 525,297 10,178,746 2,025,022 6,385,307 758,778 - 56,991 34,183 327,378 836,825 36,722,829 1,326,400 38,049,229

Residuals

Wood Chip Residues - - - - 748,934 - 270,382 ------1,019,316 - 1,019,316 Black Liquor ...... Other Chemical Residuals ...... TOTAL - - - - 748,934 - 270,382 ------1,019,316 - 1,019,316

Use of Forestry Products (cubic metres of roundwood equivalent)

INTERMEDIATE CONSUMPTION BY INDUSTRIES - (ANZIND96 V5.0) COMMODITIES Sheep & Dairy Forestry Other agriculture Log sawmilling Other wood Pulp Paper and Printing and Publishing recorded Furniture Other Residential Non-residential Non-building Other Builders Ownership of All Total Total Changes TOTAL EXPORTS TOTAL Forestry Products beef cattle cattle forestry and timber product paper and paperboard services media mfg mfg mfg building construction construction construction supplies owner-occupied Other Intermediate Household in Capital & Consumption USE farming farming and logging dressing mfg paperboard mfg containers to printing and publishing construction wholesaling dwellings Industries Consumption Consumption Inventories Logs and Poles 55,777 49,590 31,671 68,482 5,344,242 1,472,590 3,230,775 90,580 603,869 27,800 10,975,377 166,680 - 11,142,057 5,599,312 16,741,369 Wood Chips (chipped logs) - - - - - 1,129,794 3,326,345 ------4,456,139 - - 4,456,139 696,582 5,152,721 Sawn Timber - - 254 106 33,448 1,167,787 132,147 - - - 210,672 216,493 921,745 669,060 205,937 39,774 - - 174,702 3,772,127 3,772,127 2,176,282 5,948,409 Veneer - - - - - 122,614 330,140 ------452,754 - - 452,754 11,028 463,782 Plywood 299 263 159 13,035 5,148 92,214 74,594 1,578 2,133 639 190,063 - - 190,063 210,241 400,304 Particleboard 250 227 134 11,183 3,046 76,848 66,927 1,568 1,832 573 162,589 - - 162,589 137,177 299,766 Fibreboard 612 545 317 5,208 17,495 2,064 173,633 136,609 2,490 3,532 1,346 343,851 - - 343,851 589,970 933,821 Chemical Pulp - - - - - 1,404,293 8,303 ------1,412,596 - - 1,412,596 1,161,812 2,574,408 Mechanical Pulp ------817,234 ------817,234 - - 817,234 656,190 1,473,424 Newsprint ------328,777 ------328,777 - - 328,777 671,202 999,979 Other Paper & Paperboard 3,135 - 140,300 10,354 - - 36,918 495,414 389,940 - 81,972 - - - 3,687 6,480 19,488 1,196,059 2,383,746 37,111 - 2,420,857 640,390 3,061,247

TOTAL 56,938 53,760 31,926 209,496 5,388,044 3,892,785 8,910,794 50,430 495,414 718,717 582,526 308,724 1,355,021 947,191 205,937 49,097 610,349 26,985 1,401,119 25,295,252 203,791 - 25,499,043 12,550,186 38,049,229

Residuals

Wood Chip Residues - - - - - 522,284 497,032 ------1,019,316 - - 1,019,316 - 1,019,316 Black Liquor ...... Other Chemical Residuals ...... TOTAL - - - - - 522,284 497,032 ------1,019,316 - - 1,019,316 - 1,019,316

65 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 1999 (iii): Supply and Use Industry Breakdown

Supply of Forestry Products (cubic metres of roundwood equivalent)

OUTPUT BY INDUSTRIES - (ANZIND96 V5.0)

COMMODITIES Sheep & Dairy Forestry Other agriculture Log sawmilling Other wood Pulp Paper and Printing and Other Non-building Builders All TOTAL IMPORTS TOTAL Forestry Products beef cattle cattle forestry and timber product paper and paperboard services manufacturing construction supplies Other Production SUPPLY farming farming and logging dressing mfg paperboard mfg containers to printing wholesaling Industries

Logs and Poles 15,117 2,334 15,691,274 503,561 ------417,505 16,629,791 4,187 16,633,978 Wood Chips (chipped logs) - - - - 4,603,397 ------4,603,397 88 4,603,485 Sawn Timber - - 25,824 8,412 5,031,667 6,312 289,068 - - 19,657 46,352 363,686 147,521 5,938,499 68,743 6,007,242 Veneer - - - - - 457,320 ------457,320 989 458,309 Plywood 4,137 428,320 4,393 436,850 13,781 450,631 Particleboard 973 252,248 1,133 254,354 4,055 258,409 Fibreboard 5,388 871,202 18,439 5,981 901,010 18,038 919,048 Chemical Pulp ------2,070,553 ------2,070,553 93,757 2,164,310 Mechanical Pulp ------1,511,414 ------1,511,414 190 1,511,604 Newsprint ------1,000,601 ------1,000,601 182 1,000,783 Other Paper & Paperboard 888,775 604,647 - 25,079 - - 2,724 1,521,225 1,297,096 2,818,321 TOTAL 15,117 2,334 15,717,098 511,973 9,645,562 2,015,402 5,760,411 623,085 - 56,244 46,352 363,686 567,750 35,325,014 1,501,106 36,826,120

Residuals

Wood Chip Residues - - - - 475,032 - 320,680 ------795,712 - 795,712 Black Liquor ...... Other Chemical Residuals ...... TOTAL - - - - 475,032 - 320,680 ------795,712 - 795,712

Use of Forestry Products (cubic metres of roundwood equivalent)

INTERMEDIATE CONSUMPTION BY INDUSTRIES - (ANZIND96 V5.0) COMMODITIES Sheep & Dairy Forestry Other agriculture Log sawmilling Other wood Pulp Paper and Printing and Publishing recorded Furniture Other Residential Non-residential Non-building Other Builders Ownership of All Total Total Changes TOTAL EXPORTS TOTAL Forestry Products beef cattle cattle forestry and timber product paper and paperboard services media mfg mfg mfg building construction construction construction supplies owner-occupied Other Intermediate Household in Capital & Consumption USE farming farming and logging dressing mfg paperboard mfg containers to printing and publishing construction wholesaling dwellings Industries Consumption Consumption Inventories

Logs and Poles 42,280 51,640 36,760 74,840 5,477,288 1,610,520 3,274,811 128,119 935,409 27,800 11,659,467 166,680 - 11,826,147 4,807,831 16,633,978 Wood Chips (chipped logs) - - - - - 970,868 2,875,084 ------3,845,952 - - 3,845,952 757,533 4,603,485 Sawn Timber - - 320 138 24,797 1,082,093 146,881 269,564 276,061 858,766 553,605 239,941 51,390 221,590 3,725,145 - - 3,725,145 2,282,099 6,007,244 Veneer - - - - - 120,324 331,507 451,831 - - 451,831 6,478 458,309 Plywood 292 301 232 17,145 3,803 93,783 95,360 1,806 2,841 1,931 217,494 - - 217,494 233,138 450,632 Particleboard 203 212 124 11,440 1,835 60,339 72,304 1,460 1,705 1,734 151,356 - - 151,356 107,052 258,408 Fibreboard 469 440 294 4,575 15,382 696 129,469 122,353 2,542 3,343 2,940 282,503 - - 282,503 636,545 919,048 Chemical Pulp - - - - - 1,030,768 6,078 ------1,036,845 - - 1,036,845 1,127,464 2,164,309 Mechanical Pulp ------871,782 ------871,782 - - 871,782 639,822 1,511,604 Newsprint ------344,637 ------344,637 - - 344,637 656,146 1,000,783 Other Paper & Paperboard 2,707 - 152,297 7,880 - - 32,407 412,759 342,640 - 65,480 - - - 3,110 5,425 16,532 1,052,229 2,093,466 32,576 - 2,126,042 692,279 2,818,321 TOTAL 43,243 55,299 37,080 227,926 5,509,965 3,783,805 8,199,326 43,060 412,759 687,277 645,038 347,876 1,270,476 843,621 239,941 60,309 940,834 24,421 1,308,224 24,680,479 199,256 - 24,879,735 11,946,387 36,826,122

Residuals

Wood Chip Residues - - - - - 315,666 480,046 ------795,712 - - 795,712 757,533 1,553,245 Black Liquor ...... Other Chemical Residuals ...... TOTAL ------795,712 - - 795,712 757,533 1,553,245

66 Physical Flow Account for Forestry Resources in New Zealand 1995 – 2000

Table 2000 (iii): Supply and Use Industry Breakdown

Supply of Forestry Products (cubic metres of roundwood equivalent)

OUTPUT BY INDUSTRIES - (ANZIND96 V5.0)

COMMODITIES Sheep & Dairy Forestry Other agriculture Log sawmilling Other wood Pulp Paper and Printing and Other Non-building Builders All TOTAL IMPORTS TOTAL Forestry Products beef cattle cattle forestry and timber product paper and paperboard services manufacturing construction supplies Other Production SUPPLY farming farming and logging dressing mfg paperboard mfg containers to printing wholesaling Industries

Logs and Poles 16,206 2,502 16,821,626 539,836 447,581 17,827,751 3,119 17,830,870 Wood Chips (chipped logs) - - - - 4,817,285 ------4,817,285 8 4,817,293 Sawn Timber 30,462 9,923 5,935,428 7,446 340,989 23,188 54,677 429,010 174,018 7,005,141 69,577 7,074,718 Veneer - - - - - 605,251 ------605,251 3,310 608,561 Plywood 5,158 534,045 5,477 544,680 16,239 560,919 Particleboard 1,079 279,745 1,257 282,081 7,686 289,767 Fibreboard 6,681 1,080,355 22,865 7,417 1,117,319 12,611 1,129,930 Chemical Pulp ------2,419,971 ------2,419,971 54,919 2,474,890 Mechanical Pulp ------1,547,360 ------1,547,360 58 1,547,418 Newsprint ------941,226 ------941,226 1,461 942,687 Other Paper & Paperboard 967,655 658,310 27,305 2,966 1,656,237 1,566,120 3,222,357 TOTAL 16,206 2,502 16,852,089 549,759 10,765,632 2,506,842 6,217,201 681,176 - 64,644 54,677 429,010 624,565 38,764,302 1,735,108 40,499,410

Residuals

Wood Chip Residues - - - - 712,694 1,666 324,636 ------1,038,996 - 1,038,996 Black Liquor...... Other Chemical Residuals ...... TOTAL - - - - 712,694 1,666 324,636 ------1,038,996 - 1,038,996

Use of Forestry Products (cubic metres of roundwood equivalent)

INTERMEDIATE CONSUMPTION BY INDUSTRIES - (ANZIND96 V5.0)

COMMODITIES Sheep & Dairy Forestry Other agriculture Log sawmilling Other wood Pulp Paper and Printing and Publishing recorded Furniture Other Residential Non-residential Non-building Other Builders Ownership of All Total Total Changes TOTAL EXPORTS TOTAL Forestry Products beef cattle cattle forestry and timber product paper and paperboard services media mfg mfg mfg building construction construction construction supplies owner-occupied Other Intermediate Household in Capital & Consumption USE farming farming and logging dressing mfg paperboard mfg containers to printing and publishing construction wholesaling dwellings Industries Consumption Consumption Inventories

Logs and Poles 42,983 52,498 37,371 76,084 5,568,331 1,637,290 3,329,245 130,249 950,957 28,262 11,853,270 166,680 12,019,950 5,810,920 17,830,870 Wood Chips (chipped logs) 1,032,134 3,056,513 4,088,647 4,088,647 728,646 4,817,293 Sawn Timber 387 167 29,975 1,308,068 177,554 325,857 333,711 1,038,103 669,215 290,048 62,122 267,865 4,503,072 4,503,072 2,571,646 7,074,718 Veneer 153,077 421,745 - 574,822 574,822 33,739 608,561 Plywood 416 429 330 24,421 5,418 133,585 135,831 2,573 4,047 2,751 309,800 309,800 251,119 560,919 Particleboard 226 236 139 12,765 2,048 67,325 80,674 1,629 1,903 1,935 168,879 168,879 120,888 289,767 Fibreboard 503 472 316 4,911 16,511 747 138,979 131,340 2,729 3,589 3,156 303,253 303,253 826,677 1,129,930 Chemical Pulp 1,134,117 6,687 1,140,804 1,140,804 1,334,086 2,474,890 Mechanical Pulp 811,920 811,920 811,920 735,498 1,547,418 Newsprint 401,522 401,522 401,522 541,165 942,687 Other Paper & Paperboard 3,037 170,878 8,842 36,360 463,117 384,443 73,469 3,490 6,086 18,549 1,180,605 2,348,877 36,535 2,385,412 836,945 3,222,357 TOTAL 44,128 56,673 37,758 247,914 5,607,148 4,130,568 8,509,349 47,959 463,117 785,965 801,300 415,393 1,508,240 1,017,060 290,048 72,542 957,044 28,087 1,484,573 26,504,866 203,215 - 26,708,081 13,791,329 40,499,410

Residuals

Wood Chip Residues - - - - - 530,306 508,690 ------1,038,996 - - 1,038,996 - 1,038,996 Black Liquor...... Other Chemical Residuals ...... TOTAL - - - - - 530,306 508,690 ------1,038,996 - - 1,038,996 - 1,038,996

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