Southland logs head to India as trade resumes
Matariki Forests is celebrating its first shipment of logs from Bluff to India since 2020.
Following the signing of the Free Trade Agreement (FTA) in April, improved access to the Indian market is already providing New Zealand’s forestry sector with new opportunities.
Hamish Fitzgerald, Matariki Forests Southland Regional Manager, says the shipment represents a significant re-opening of the market for the lower South Island.
“Southland is home to Matariki Forests’ largest estate and the wider Southland-Otago region is New Zealand’s second-largest forestry region. Over 95 percent of forestry exports will become tariff-free once the agreement enters into force. The removal of typical 5-11percent tariffs will improve returns to forest owners, helping to ease financial pressures currently facing the industry,” says Fitzgerald.
“This shipment represents an important step in re-establishing supply chains and relationships with our Indian customers. There is positive momentum with suppliers and customers working to rebuild the trade lane ahead of the anticipated FTA ratification by the New Zealand government.”
With an estimated sustainable harvest of around 4 million cubic metres annually, local processors continue to invest in capability and play a critical role in the forestry value chain. Export markets are also essential to the sector, helping balance supply and demand, maximising utilisation of the resource, and support regional employment and economic activity.
The total shipment is approximately 44,000 tonnes of logs with 40 per cent of the cargo sourced from Southland (18,000 tonnes) and the balance will then be loaded at Tauranga Port, before heading to Kandla Port in India.
“South Port is pleased to support the first loading of logs to India from the region since 2020 and looks forward to continuing its support of this export opportunity,” said Geoff Finnerty, Interim CEO, South Port.
The logs will be processed into a wide range of products including plywood, construction timber, furniture, such as tables and cabinetry, and interior applications such as doors and wall panels.
Wood and wood products are New Zealand's largest goods export to India worth NZ$134 million in the year to June 2025.
NZ Institute of Economic Research estimates that forestry and wood processing directly employs around 1,950 people in the Otago and Southland regions and supports many more jobs, including transport, port operations and construction. In total, the sector directly contributes around $348 million to regional GDP.
Photo caption:
Matariki Forests and South Port oversee the commencement of loading of MV Dominator. From left to right: Geoff Finnerty, Interim CEO of South Port; Hadleigh King, Qube Manager; Hannah Lawson, Matariki Forests Production Manager; Hamish Fitzgerald, Matariki Forests Southland Regional Manager; Jamie May, South Port Commercial Manager.