A REPORT released by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has shown Australia’s forestry sector is facing some of the best conditions in its history.
ABARES executive director Steve Hatfield-Dodds said the report, Australian Forest and Wood Products Statistics: March and June Quarters 2017, showed the industry is now in its fourth consecutive year of growth.
“In 2016/17, the volume of logs harvested is estimated to have reached record levels, increasing 9pc on the year prior, to nearly 33 million cubic metres,” Dr Hatfield-Dodds said.
“The value of total logs harvested was up nearly 12pc to $2.5b, reflecting increased estimated softwood log prices and softer hardwood log prices.”
He said the report revealed a softening domestic demand for wood products, with a 6.1pc decrease in dwelling starts compared to the previous year.
“Exports of Australia’s wood products are higher than ever, reaching a record $3.4b on the back of strong demand for round wood, newsprint and miscellaneous forest products exports,” he said.
“This means Australia’s trade deficit in wood products is now under $2b – its lowest level in six years.”
The report found the Chinese market accounted for the majority of total wood product export growth in 2016/17.
