we are very close to a major collapse of NZ third largest industry.
The chart below shows how the international price of logs has tumbled in the first few months of the year.
Margins are now at levels that if they do not pick up many forest owners will stop logging.
Of course forestry is no different to any other commodity in which major corporate forest owners will keep logging just for cash flow to satisfy the bank.
see what a collapse of our 3rd largest industry will do to the AUD/NZ cross.
http://futures.tradingcharts.com/chart/LU/