The rise in log prices and the closing of South Canterbury timber mills has made supplies that much harder to get for builders, say local contractors.

The Ministry of Forestry figures for the last quarter reveal that prices for P1 grade pruned logs rose to an average of $125 per tonne, compared with $121 the previous quarter. However, the same classification could reach up to $151 per standard cubic metre at export, compared with $110 the previous quarter.

LeRoy construction director Garth LeRoy said the price increase had made it tougher for builders to source supplies on time.

"To be honest, it means that the domestic market is forced to pay high prices for the dregs. We are being starved of good material," he said.

"I am not surprised. If exporters can get, say, $100 a cubic metre if it's produced locally, but $102 if it's exported offshore, then of course your supplies are going to be at the whim of the exporters," he said.

"This has been happening for the last few years and the exporters couldn't care less. The domestic market has been ignored totally."

He said the lead time for suppliers had nearly doubled over the last few months.

"People just haven't been learning, it's happened before."

The Timaru District Council reported that although the number of building consents in the past 10 months was holding steady, the value of that work was down 25 per cent from $101.8 million to $76.4m.

Placemakers Washdyke manager Mervyn Evans said although the price had been a factor, the supply problem was probably related to the closing of local timber mills such as Hunter Hills in Waimate.

"Log pricing has had an impact, but locally, I think it is more that with Hunter Hills and a couple of others closing, it is harder to meet the capacity for the demand," he said.

Forest Management NZ Otago operations director David Dunn agreed: "I think it's unfair to blame the exporters, it's more to do with the loss of a number of quality staff and sawmills over a relatively short period. I think something like 30 in a year have gone in New Zealand in the last couple of years. There are a number of reasons for that, some of them supplied American markets, and the bottom really fell out of that market."

He said it was unlikely a rise in timber prices had caused the longer lead time for supplies.

"We try and supply everyone as soon as we can. We certainly don't exclude domestic clients, we just have to be cautious."