A new wood industry study recognises the potential to add value to log exports and other forestry products such as pulp and paper.
But it says expanding into new downstream technologies like bio-fuels and bio-chemicals will also depend on also having viable processing industries.
The WoodScape study is part of the New Zealand Wood Council's strategic action plan, which aims to more than double forestry export earnings to $12 billion in 10 years.
Wood Council chairman Doug Ducker says it has identified a raft of opportunities which now need to be looked at in more detail.
He says the study looked at a range of industries including those that are already established such as sawmilling, pulp manufacture and paper making.
Mr Ducker says the study also incorporated newer opportunities that could be established in the form of biochemicals and bioenergy.
He says the key theme from the study to date is a recognition that all the product types generally add value to what can be achieved by simply exporting the log, though they also incur cost.
Mr Ducker says there is now further work to be done establishing where the best margins can be made from this activity.