Wood Industry Group - Industry Overview

Australia imported around $2.7billion of forest products in 1996-97, and exported $1.2 billion worth. It has been forecast that Australia could become a net exporter of sawnwood and pulpwood within another 10 to 20 years - but this will require highly competitive production if existing suppliers are to be replaced.

Australia has yet to establish its credentials as an exporter of sawn timber, let alone more sophisticated products. FAO figures indicate that worldwide export trade of sawn timber is over 100 million m3, of which Australia's contribution is 55, 000m3 - just 0.00055%.

For example: FAO figures indicate that Australia is already approaching self-sufficiency for sawn timber and that the imported products are predominantly processed timber in the form of pulp/paper products or special fibre boards. The importation of sawn timber is for architectural features with some framing timbers to meet seasonal demands.

This approach towards self-sufficiency in sawn timber for Australia means that any expansion in supply (ie. increased plantings) will require an increase in expansion of other wood products, and/or an increase in the exports of sawn timber.

Given the volume of exports provided by other countries in the APEC region, it will require a very high level of international competitiveness for the Australian timber industry to make inroads into export markets.

It is essential that the Wood Products Industry is able to demonstrate its capacity to minimise waste for two reasons:

• First, to comply with increasingly strict rules governing disposal of solid wastes, liquid wastes and air pollutants,
• Second, to minimise costs associated with process wastes so that the industry can compete on world markets.