The Forest Owners Association doesn't believe anyone could have expected the country's timber shortage would get as bad as it has.

Carter Holt Harvey has stopped supplying Mitre 10, Bunnings and ITM for the foreseeable future.

Association President Phil Taylor told Mike Hosking Carter Holt can only be partly blamed for the situation.

‘The company has underestimated the time it would take to get a new mill working, but couldn't have expected the post-covid spike in demand for timber, and the strong bounce back in the NZ economy.”

Forestry Institute president James Treadwell says overall there's no shortage and short term problems aren't caused by too much wood being exported.

“Mills are predominantly exporting logs the domestic market doesn't want”

Treadwell says there isn't a supply issue...and he doesn't want the situation used as an excuse for a levy on export logs.

He claims some people are trying to take advantage of the situation, and while he understands people want more logs processed here - this isn't the way to do it.

LISTEN ABOVE