Plantation investment and wood product consumption might be weak but Australia’s forestry sector showed signs of improvement in 2013–14, according to a report released by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). Source: The Land
ABARES executive director Karen Schneider said the latest data suggested Australia’s forestry sector may be recovering, after a difficult period which saw the industry contract under adverse conditions such as low levels of residential construction, weak global demand for wood products and a high Australian dollar.
“The volume of logs harvested increased 12%, to above 25 million cubic metres in 2013–14, with growth across the board, including in native forests,” Ms Schneider said.
“Overall, the value of logs harvested in 2013–14 reached almost $1.8 billion, the highest gross value of log production since 2010–11.”
However, despite growth in wood product manufacturing, increased housing activity and growth in both imports and exports of wood products in 2013–14, other forestry sector indicators remained weak.
“Parts of Australia’s forestry sector are still facing challenging conditions with consumption of some wood products such as wood-based panels and hardwood sawnwood continuing to decline in 2013–14, and a contraction in the area of plantations over the year,” Ms Schneider said.
“The latest statistics highlight both the resilience of Australia’s forestry sector in recent years, as well as the challenges that the sector will continue to face into the future, as it seeks to increase investment and expand markets for wood products.”
Parliamentary Secretary to the Minister for Agriculture, Senator Richard Colbeck, said the report reflects the resilience of Australia’s forestry industry and indicates that it has a bright future ahead.
“The volume of logs harvested has increased 12% to more than 25 million cubic metres and the value of logs harvested is up to the highest level since 2010–11,” he said.
“This was led by a 31% increase in the volume of hardwood plantation logs, and both native forest and softwood log harvest also increased 7.5% and 6% respectively.
“The strong growth in log harvest corresponded to increased activity in many of our forest-based industries such as sawnwood (estimated increase of 4.7%) and wood-based panel production (estimated increase of 3.5%).”
According to Senator Colbeck, markets for wood products are also showing signs of improvement, with increased housing activity and growth in both imports and exports of wood products.
“This ABARES report shows real improvement in the sector and we’re also seeing on the ground signs that the industry is improving with new and innovative uses for timber emerging, it is cementing its place as an important building material of the 21st century,” he said.
“Despite the challenges in the sector, it’s clear that Australia’s forestry industry is strong and resilient, and the government is committed to ensuring it remains that way through good policy and meaningful consultation.”
Australian forest and wood products statistics: September and December quarters 2014 can be accessed at www.agriculture.gov.au/abares/publications
