Since early 2008 demand for all timber products declined steadily in line with the global economic recession, resulting in a subsequent stock build- up across the sawmilling industry. Market conditions deteriorated further during the beginning of 2009 with the demand for lumber declining significantly by 25% to 35% followed by discounting of prices, further increases in stock levels and increased pressure on working capital. In this period, York's profit margins also declined as Komatiland Forests ("KLF") increased log prices (bi-annually between 35 & 40% per annum) directly affecting not only York's retained earnings, but also all other long term contract holders.