Increased demand for timber overseas will bring a turnaround for some local producers, according to the head of the body that advises the Federal Government on forestry. Source: ABC Rural
“Long-term (demand) for woodchip exports is quite strong, because there is strong growth in China, and Japan is building, as well as some of the smaller states,” said co-chair of the Forestry Industry Advisory Council, Rob de Fegely.
Uncertainty for the industry in south-east Australia was heightened with the decision of Eden Woodchip Mill, on the NSW south coast, not to renew its deal with South East Fibre Exports (SEFIE), in Gippsland in Victoria, when the present contract expires at the year’s end.
SEFIE’S challenge has also been made more difficult due to the high Australian dollar and also domestic projects such as Management Investment Schemes (MIS), which have resulted in more available timber.
“(SEFIE needs to) get through this tough period to stay in the market and stay viable while … we absorb this flush of wood which came through from south-east Asia and southern Australia,” Mr de Fegely said.
“They (overseas buyers) are all looking for wood, so there are wood shortages looming.”
The industry’s capacity to look at ways of using wood better and therefore attract buyers was also dealt a blow with the Budget cuts to research and development.
Mr de Fegely had hoped for a national research centre, which would look at finding ways of increasing the use of timber.
The industry’s direction is likely to figure in talks when Mr de Fegely meets the Parliamentary Secretary for Agriculture, Senator Richard Colbeck.
