Woodchip export growth drives up value of Australia's forest product exports by 5% in 2007-08 period - ABARE
November 10, 2008
– The value of Australia’s forest product exports rose significantly in 2007-08, growing by 5 per cent 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 Ms Karen Schneider, acting Executive Director, ABARE.
The total volume of coniferous and broadleaved (eucalypt) woodchip exports increased by 3.6 per cent over 2007-08. The price of woodchips increased markedly over the year - by 14 per cent for coniferous woodchips and by 7.9 per cent 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 440 per cent and by almost 350 per cent in Tasmania, from 2000-01 to 2006-07. This has allowed the industry to rely less on native forests for the woodchip trade,” Ms Schneider added.
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 17 per cent and wood based panels by almost 14 per cent in 2007-08.
The value of forest product imports was also higher this year, growing by 3.1 per cent 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.