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Woodchip export value grows

Posted on November 11, 2008, 9:09am and updated on November 11, 2008 at 1:38 pm

The value of Australia’s forest product exports rose significantly in 2007-08, growing by 5pc over the year to reach $2.5 billion, driven by woodchip export growth and to a lesser extent growth in recovered paper exports.

However, many exporters struggled with the high Australian dollar and softening demand for some products, results from ABARE’s Australian Forest and Wood Products Statistics report show.

The report was released today by ABARE acting executive director Karen Schneider.

But Timbercorp’s forestry general manager Tim Browning said while the sector had performed strongly, “the world changed about two months ago”.

“Whatever statistics happened up until September 30 are totally irrelevant going forward because of the credit crisis emanating from America that has now taken control of the whole global economy, which has depressed consumption and business credit,” he said.

According to ABARE, the total volume of coniferous and broadleaved (eucalypt) woodchip exports increased by 3.6pc over 2007-08.

The price of woodchips increased markedly over the year — by 14pc for coniferous woodchips and by 7.9pc for broadleaved woodchips.

“The higher prices and higher export volume of woodchips have pushed the total value of Australia’s woodchip exports above $1 billion for the first time,” Ms Schneider said.

Importantly, the growth in woodchips is coming from Australia’s plantation sector, which has invested significantly in broadleaved plantations over the past decade.

“In particular, the investment in plantations in Western Australia and Tasmania is now reaping significant returns.

“The volume of logs from broadleaved plantations in Western Australia has increased by 440pc and by almost 350pc in Tasmania, from 2000-01 to 2006-07.

“This has allowed the industry to rely less on native forests for the woodchip trade.”

While exports of recovered paper also grew strongly, reaching $252 million, most other forest product exports declined over the year. The value of sawnwood exports fell by 17pc and wood-based panels by almost 14pc in 2007-08.

The value of forest product imports was also higher this year, growing by 3.1pc to reach $4.4 billion.

Most of this growth was in sawnwood, packaging and industrial paper and paper manufactures.

Ms Schneider acknowledged the support of Forest and Wood Products Australia in providing funding for the industry survey.

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