The Economics of Markets
There is a large and growing market for chemical pulp in our region (New Zealand’s existing markets). The demand is tied to consumer products that have increasing demand with increasing wealth, and there appears to be a lot of future growth. 22 years of waiting for the solid wood sector to become vibrant and internationally competitive has not yielded the desired result. Declining log prices have not encouraged investment. We need to figure out how to start expansion with pulp as the driver and we need to be able to think of overall profitability of the sector.