New Zealand’s timber processing sector is grappling with new EU deforestation rules

New Zealand’s timber processing sector is trying to work out how to meet upcoming deforestation regulations for exports to Europe.

Last year, the European Union (EU) adopted deforestation rules, requiring those shipping products to prove that their supply chains are free from deforestation.

EUDR (European Union Deforestation Regulation) was expected to impact products including cattle products, palm oil or timber products.

Last year, New Zealand exported $100 million worth of wood products such as wood chips to Europe, more than half of which went to the Netherlands.

Wood Processors and Manufacturers Association chief executive Mark Ross said there was some confusion around the new regulations, due to be introduced at the end of December, and their impact.

He said while the industry supports the idea, it needs more transparency.

“We support it, but the way they go about it is really going to be difficult to meet the criteria they set for New Zealand exporters to European Union countries,” Ross said.

He said processors would have to provide documentation detailing the origins of the trees before processing the products and whether the forest area had been replanted.

“They will need to have geolocation data that shows where these forests came from in terms of wood products,” he said.

“We will need satellite imagery, such as GPS coordinates, showing where these trees were cut down before processing.”

He stated that a challenge for agriculture may be the provision that export products will not be linked to the transformation of natural ecosystems.

“If the land is harvested and then converted to farmland, these products will not be able to be exported. So if it is harvested and then replanted, everything will be fine.”

The ruling comes as New Zealand’s free trade agreement with the EU comes into force this month.

At the same time, Export NZ published a report on the contract titled: Taking advantage of opportunities by following the rulesdetailing the impact of EU tools and regulations such as the Carbon Border Adjustment Mechanism, Clean Shipping Arrangements and the Deforestation Regulation.

For forestry, it said compliance with New Zealand’s upcoming Legal Catch of Timber Scheme “could ensure compliance with this EU regulation”, which is expected to start in 2026 – if all goes to plan.

The Ministry of Primary Industries has extended the consultation period for receiving opinions on the system guaranteeing legal logging, ending on June 4.

Ross said the wood processing industry will hold workshops with stakeholders to help them adapt to the changes and then start looking for commercially available forest tracking software.

“But right now there is a lot of confusion and uncertainty about what should be done,” he said.

“Some call it significant consequences and argue that obtaining such data would be very difficult in some circumstances.”

However, he said New Zealand was in a good position and believed the sector could gain a competitive advantage here.

“When it comes to forestry and tree planting, we have good systems in place to know where our products come from.”

In an email to members, the association said it was considering the Forest Stewardship Council’s “FSC approach and services” certification – which was already widely used here – but the feedback said the program itself would not provide the documentation required by European officials.