The New Zealand Government has announced a new initiative aimed at improving productivity and innovation in the forestry and wood processing sector through advanced technology and land use flexibility policies.
Agriculture Minister Hon Todd McClay Todd McClay said the programme is designed to support higher-value production methods, reduce regulatory barriers, and strengthen long-term economic returns from forestry while lowering environmental impact.
The initiative highlights the importance of New Zealand’s forestry sector, which employs more than 39,000 people and generates approximately $6.2 billion in export earnings. Officials say the sector plays a critical role in supporting regional economies and rural employment.
As part of the programme, the government is investing $3.2 million over three years in an $8 million project to assess the feasibility of producing prefabricated mass timber modules for domestic and potentially Australian markets. The project is being delivered in partnership with VoMo Limited, a Red Stag Investments company, and focuses on increasing the value of timber by processing it onshore rather than exporting raw materials.
The proposal explores using industrial-grade logs for high-value construction applications such as hotels, apartments, offices, and student housing. Officials estimate that this approach could increase the value of timber products by up to 6.7 times while also supporting domestic manufacturing and job creation.
The feasibility study will evaluate design performance, seismic resilience, cost efficiency, productivity gains, and carbon savings associated with mass timber construction. It is also intended to provide data to help farmers and growers adopt more innovative and profitable forestry practices.
The government says the broader goal is to create a more flexible and technologically advanced land use system that enhances productivity, strengthens exports, and supports sustainable growth in New Zealand’s primary industries.
