The new owners of timber plantations established by failed managed investment scheme Great Southern say there’s a resurgence in the market for Australian hardwood timber. Source: ABC Rural
Investment group New Forests bought land, formerly owned by Great Southern, in six Australian states back in 20-11 and this week completed the purchase of trees growing on the land.
The group, which manages forestry plantations for investors, including superannuation funds and insurance companies, says they’re exploring opportunities in new markets including India, and in new product lines, of timber veneers and bio-fuels.
Managing Director David Brand said the biggest market for Australian hardwood, exports of woodchips to Japan and China, is also picking up thanks to a lower Australian dollar.
“The woodchip market is traded in $US terms, so when we go from $US1.05, down to 89 cents US, that goes right to the bottom line, so it’s really led to a resurgence in demand in the whole export market.”
