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JUNE 2016 • P: (03) 9888 4834 • www.timberbiz.com.au
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Forest products industry can now look to future with real optimism
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USTRALIAN FOREST product industries must become more efficient and drive higher productivity as well as implementing technological and manufacturing R&D breakthroughs, according to Ross Hampton, CEO of the Australian Forest Products Association. His recipe for the future followed a report from Ernst & Young (EY) which highlighted the significant growth opportunities for Australian forest product industries. The report (Megatrends and the Australian Forest and Wood Products Sector: Opportunities and Challenges for sustainable growth), commissioned by Forest & Wood Products Australia (FWPA), is bullish about the global demand for fibre, but also warns that Australian industry will need to grow in scale and productivity to take advantage of the opportunities. “The EY report confirms everything AFPA has been saying in recent years,” he added. “There is no doubt that in a carbon constrained global economy, which is placing an ever increasing premium on renewable and recyclable resource use, forest products are going to play a much larger role. Our industries
replant or re-sow 60 million trees a year, unlike some parts of the world with poor records of deforestation. Nowhere else can claim to be more sustainable. “The challenge of this report is that to meet the demand of consumers in years to come we must grow in scale. Our enterprises must become more
recognition of thermal heat in the Renewable Energy Target; strengthening of the antidumping system; promotion of renewable bioenergy opportunities from biomass; funding for farm forestry; bushfire mitigation through a national mechanical fuel reduction program; and renewal of the
Overcome the challenges and seize the opportunities efficient and we must drive higher productivity, as well as implement technological and manufacturing R&D breakthroughs,” said Mr Hampton. “Australian politicians must also be held to account because there is little the industry can do when effective and enabling policy is lacking. “AFPA is looking for: a National Forest and Fibre Plan; access to the Carbon Farming Initiative to support plantation investment; support for R&D through a National Institute for Forest Products Innovation;
Regional Forest Agreements.” The key observations from the EY report are: Australia’s forest industry sector faces both opportunities and challenges. Under the hungrier world and wealthier world megatrends, projected growth in domestic and regional populations, especially people with middle class incomes, will drive increased demand for all resources. Demand for wood fibre products will increase strongly. However, at the same time wood fibre production will be competing for land and resources.
Wood and products sourced from wood are well placed to benefit from the growing awareness of its environmental credentials. This will see increased use of wood products such as structural and decorative timbers, paper and wood panels. New products including biomaterials, bioenergy uses, and new structural buildings systems based on wood provide a platform for further demand growth in a carbon emissions-constrained world. Australia’s certified wood supplies and value chains will be well positioned to satisfy increasingly choosier customers. Australia has a reputation for environmental management of its certified plantations and native forests. These sources, and the resulting value chains via chain of custody certification give downstream processors, retailers and consumers the assurance of known-sourced fibre with independently verified good environmental practices. Australia’s native forests have been certified by AFS and work is underway to finalise the FSC listing protocols. Certification gives Australian products access to key domestic
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