The Ministry for Primary Industries says Chinese borders are NOT closed to New Zealand logs, but there are problems with over supply, and logs backing up at Chinese ports,which means the demand for new logs is falling.
Forestry contractors warn 30 percent of New Zealand's logging crews are not harvesting as a result.
Government agencies are working on a support plan for the East Coast, which is being hit particularly hard.
Julie Collins is the Deputy Director-General Te Uru Rakau.
She speaks to Corin Dann.