The situation is being made worse by a construction slowdown in Australia.
New Zealand Timber Industry Federation (TIF) chief executive Wayne Coffey said: “Australia is terrible… it is the nasty one for us.”
This month, the Kiwi dollar moved past A89 cents for the first time since March.
Timber exports to Australia in the four months to July were worth NZ$57m – down 17% on last year, according to the TIF, reflecting a market downturn and greater competition from Australian suppliers.
Traditionally, Australia is New Zealand’s most profitable timber market because it takes a range of products.
Meanwhile, New Zealand timber exports to the US were up 25% in the past four months to NZ$105m. But, said the TIF, the market had probably peaked, with housebuilding down about 10%.
There was better news for the industry in South-east Asia, with sales in China and Hong Kong up more than 50% in the past four months to NZ$34m.
“And we are opening up a few new markets in the Middle East, which is taking the pressure off quite nicely,” added Mr Coffey.
