Forestry – hardwood and softwood timber

 

Forestry industry statistics from 2004

Summary

“The Timber Industry in North East Victoria” report prepared by Prospect Consulting (2002) provides the clearest overview of forestry in the North East. The report included Shires outside of the AlpValleys region making it difficult to provide direct comparisons. However, the estimated GVP of $226 million means that this is the largest agribusiness sector in the North East.

The North East region of Victoria has a significant logging and timber processing industry. There are approximately 65,000 hectares of privately owned softwood and hardwood plantations in the region. Major operators include five softwood processing plants (timber processing, panel board, pulp and paper), one log exporter, and several small general processors.

The log intake to these operations is around 1 million m3 of softwood log, being 650,000 m3 of saw and peeler logs, and around 339,000 tonnes of pulp logs (Prospect Consulting, Report, February 2002).

Plantations in the region are dominated by radiata pine, with productive plantations of this species covering around 62,500 hectares (NRE estimates 1999). These plantations are concentrated in Alpine, Mansfield, Benalla and Towong Shires, which together account for approximately 70% of the total area of softwood plantations.

The timber industry is also a major employer in the region. The total level of direct employment from logging and haulage, sawmilling and residual log processing industries is estimated to be around 1,717 jobs (Forest Management Plan for the North East DNRE 2001). The estimated value of turnover of this industry is approximately $40 million (DNRE 2001).

Being close to the major rural centres of Wangaratta and Albury/Wodonga creates a demand for other timber products including firewood and farm timbers (posts and poles).

There is also a small demand for other minor forest products including: eucalypt seed, understorey species, wood chip logs, stakes, and specialty timbers.

Native hardwood forestry on public land supports a major processing industry in the southern part of the North East Region.

Forestry industry overview

Detail

Comments

Product description

Sawlogs, pulpwood, roundwood, panel products, seasoned timber, paper products.

Main season

All year

Industry associations

National Association of Forest Industries, Australian Forest Growers

Domestic market information

All products above.

Export market information

Pulpwood for chipping, sawmill and processing residues for chipping.

Source AAVAF Survey 2004

Location of the Forestry industry within North East Victoria

 

1997 AG Census

% of forestry businesses

North East Region

Victoria

Alpine Shire

17.4%

1.2%

Benalla (RC)

2.2%

0.2%

Indigo Shire

23.9%

1.7%

Towong Shire

28.3%

2.0%

Wangaratta (RC)

26.1%

1.9%

Wodonga (RC)

2.2%

0.2%

Source ABS Agricultural Census 1997

Forestry industry growth

There is a demand for land for plantation development. With forestry investment companies currently very active, the demand is expected to increase.

Forestry industry labour requirements

Municipality

Total

Alpine

547

Indigo

21

Benalla

Not available

Wangaratta

94

Towong

94

Wodonga

31

Forestry industry marketing activities

Marketing is aimed at a national and international market. Marketing is not particular to the AlpValleys region.

Forestry industry strategic advantages and opportunities

  • Skilled labour force
  • Leasing of land to generate consistent farm income
  • Can be located on small areas of land
  • Value adding of products and associated industry
  • Well established in region with good infrastructure

Forestry industry strategic disadvantages and impediments to growth

  • Lack of suitably priced land
  • Perception of timber products as expensive
  • Weed management in plantations
 
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