Anne Ruston
Australia’s forestry sector is showing continuing signs of improvement, according to a report released today by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). Source: Timberbiz
The report, Australian forest and wood products statistics: March and June quarters 2015, highlights positive results for the forestry sector for the second consecutive year, with increases in the estimated volume and value of logs harvested, dwelling commencements and trade in most wood products.
ABARES Executive Director, Karen Schneider, said the latest data suggested that Australia’s forestry sector is showing signs of continued recovery.
“ABARES interim estimates indicate that the volume of logs harvested increased by around 8%, to more than 27 million cubic metres in 2014–15,” Ms Schneider said.
“This follows a difficult period that saw the industry contract under adverse conditions, including low levels of residential construction, weak global demand for wood products and a high Australian dollar.”
Increases in log volumes coincided with an increase in housing activity and wood product exports, with house commencements approaching levels similar to those seen in 2009-10 and the value of exports reaching an all‑time high of $2.8 billion.
However, strong growth in imports meant that the trade deficit in wood products continued to increase in 2014-15, to around $2.3 billion.
Ms Schneider also said that production and consumption of selected wood-based panel products showed further signs of recovery, with an increase in production and consumption of plywood, medium density fibreboard and particleboard in 2014-15.
“This may be indicative of a turnaround for the forestry sector,” Ms Schneider said.
“However, production and consumption statistics for other wood product categories, which will become available later in the year, will provide a clearer picture of how the sector is tracking.”
Assistant Minister for Agriculture and Water Resources, Senator Anne Ruston, has welcomed the latest report as a sign the sector is going from strength to strength.
“The report, Australian forest and wood products statistics: March and June quarters 2015, shows growth for the second consecutive year—and an all-time high in the value of our exports,” Minister Ruston said.
Minister Ruston will speak spoke about the opportunities that are opening up in the forestry sector at a Forestry Products Industry dinner in Canberra tonight on Wednesday night.
“This is an exciting time to be in the forest products sector,” Minister Ruston said.
“Now the challenge is to make the most of opportunities for innovation and extend the value chain to the next generation of forest products—like engineered building products, transportation fuels, biochemical and biomaterials.
“Governments need to make sure policy is conducive to a strong and vibrant sector through levelling the playing field for our producers in international markets, fostering innovation and development through strong and coordinated research and development and making sure industry is engaged in the policy-making process.
“The Australian Government has demonstrated our commitment by providing $3.3 million in matched funding for research and development, investing $15 million in a three year National Bushfire Mitigation Programme and—importantly—setting up the Forestry Industry Advisory Council.
“This council is a vital mechanism for exchanging information between industry and government on policies and issues affecting the forestry industry.
“It was a key component of the Australian Government’s election platform for the forestry industry.
“I am proud to co-chair the council, which is developing a discussion paper that will include recommendations for building a positive future for Australia’s forestry industry.
“As part of this process, the council received almost 80 submissions to an issues paper released earlier this year that canvassed views on the opportunities and challenges for the sector over the coming decades.
“I look forward to meeting with the council as it finalises the discussion paper.”
For a copy of the ABARES report visit agriculture.gov.au/abares/publications.
