The National Association of Forest Industries (NAFI) received funding from the Australian Government to improve marketing strategies for forest products both domestically and for key export markets.
The $130,000 project is being funded on a 50% matching basis between industry and Government under the ‘Promoting Australian Produce’ program and will be undertaken over the next 12 months.
“The project will identify consumer needs and barriers to the development of more effective marketing of high quality and environmentally sustainable forest products in export markets, particularly in the growing Asian market. The forest products markets in Japan and increasingly China represent significant growth opportunities in the medium to longer term,” said NAFI deputy chief executive Mick Stephens, who will manage the project.
Australia has a forest products trade deficit of around $2 billion, largely due to imports of printing and writing papers. Woodchips represent the major forest product export at over $900 million in 2008-09.
The project will address several priorities of the forest products industry related to enhancing the international competitiveness of the industry and promoting the credentials of Australian-grown and manufactured products in both domestic and international markets.
“These credentials include the inherent high quality, durability and environmental sustainability of Australian forest products for a range of fibre, building and appearance grade uses. The ability to promote the quality and environmental sustainability of forest product exports will influence both market access and value for Australian products,” Mick said.
The project will involve a scoping study to assess current market access and barriers to the promotion of forest products from Australia; the collection of new information on attitudes and issues directly from prospective buyers and market segments in China and Japan; and identification of new opportunities for improved marketing plans based on the initial findings.
This would enhance the industry’s capacity to better understand contemporary marketing requirements and actions that need to be taken to address these requirements, including important linkages to internationally recognised certification schemes such as the Australian Forest Certification Scheme (AFCS) and Forest Stewardship Council (FSC).
NAFI chief executive officer Allan Hansard held preliminary meetings in Japan in May to discuss the project with a number of relevant agencies and companies, including officials from Austrade, the Australian Agriculture Counsellor and certification bodies.
Strategic market development and capacity building for major export markets in the Asian region has the potential to generate significant commercial, economic and social benefits. For example, a 5% to 10% increase in current exports from successful marketing strategies would generate additional export income of between $100-200 million per annum. These benefits would flow across the forest growing, harvesting and wood processing supply chain.
