Plantations North East Inc. (PNE) is a Regional Plantation Committee established to promote and facilitate the expansion and development of commercial timber plantations and associated industries in the shires of Towong, Wodonga, Indigo, Alpine, Delatite, Wangaratta, Strathbogie, Murrindindi, Mitchell, Shepparton, Moira and Campaspe in north east Victoria. The aim of this study (commissioned and published in 2002) is to describe and quantify the economic, social and environmental benefits of the timber industries in the 12 shires.  This is an extract of the Executive Summary of the report. The full report can be downloaded from here.

The study area supports extensive areas of softwood plantation and native forest that provide sustainable supplies of logs to a range of industries located within and outside the study area. The area also supports a smaller area of hardwood plantation, which has been planted in recent years and is not yet suitable for commercial harvesting and processing.

A recent inventory identified approximately 62,500 ha of privately owned productive softwood plantations in the study area. In 2000–01 these plantations produced 625,000 m3 of sawlogs and peeler logs and 339,000 tonnes of pulp logs. The expansion of softwood plantations virtually ceased after 1990 and the magnitude of future increases in log production is likely to be limited by lack of new planting and the conversion of some existing plantations to native forest, hardwood plantation or other uses.

Over the last five years, the area of hardwood plantation in the study area has been rapidly expanded with over 3,000 ha planted. About half the existing area of hardwood plantation was established with the assistance of financial incentives from the Victorian Government and is being managed for sawlog production while the balance is managed for the production of pulp logs. Because of their age there is not expected to be any significant production of logs from hardwood plantations for at least 7–10 years. The rate of expansion however appears to have lost impetus in the absence of further financial incentives and the establishment of plantations for pulp log production closer to port facilities.

About 1.875 million ha or 41% of the total area of the study area is native forest. Some 20% of this area is suitable and available for commercial timber production and in 2000–01 produced 162,500 m3 of sawlogs and 302,500 tonnes of residual logs.

The direct benefits from the establishment and management of softwood and hardwood plantations and the management and protection of native forest for timber production are summarised as follows:

Employment, Expenditure and Revenue Attributable to Managing Plantations and Native Forests in PNE Region

Contractors are generally responsible for log harvesting and carting in both softwood plantations and native forests. The harvesting and cartage contractors operate in a highly competitive environment and have had to continually improve their productivity and efficiency. These improvements are also crucial to improving the overall competitiveness of the timber industry in the study area.