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Softwood’s soft outlook

A peak body for the pulp and paper processing industry has said the shortage of local timber needs to be addressed. Source: ABC News

Figures show forestry plantations have remained steady at just under 350,000 hectares in the Green Triangle region since 2011.

The Australian Bureau of Agricultural and Resource Economics and Sciences said new plantation rates around the country have not significantly increased in the past three years.

Australian Forest Products Association chief executive Ross Hampton has said that investment in new plantations is not as strong because of slow return rates.

He said the industry must work with governments on strategies to ensure supply meets demand.

“We are already running short of resource, pine trees for example, so very softwood varieties for our own domestic housing needs,” he said.

“Already companies aren’t making the long-term deep investment decisions because they’re worried they won’t have the resource there to supply really world-scale mills.

“Forest industry and forest products industries right across Australia of course rely on this raw material to be available from the right place, I keep saying that because it’s really important, but we do require that raw material and you can’t actually create it when you need it.

“You’ve got to start now planning into the future and we need policy instruments to deliver that.”