The forestry industry is excited about a new research scheme looking at alternatives to pine forests.

The Specialty Woods Products Research Partnership is being jointly funded by the forestry industry and the government.

It's a seven year, 13 million dollar project which will look at using Douglas-fir and Eucalypts trees in areas not suitable for pine.

Forest Owners Association research manager Russell Dale said they can't have all their eggs in one basket by relying on pine.

"So this program is designed to actually improve our knowledge and our capability to grow some other species in New Zealand."

It will cost $1.9 million a year, with the government funding $700,000 of that annually.

Mr Dale said the government backing gives industry investors all the more confidence in the scheme.

"What it means for the industry is that we are raising the capability we have to grow and process species other than Radiata Pine.