11 Nov 2009
Latest statistics from the Australian Bureau of Agricultural and Resource Economics (ABARE) highlight the tough trading conditions experienced by the Australian forest and wood products industry in 2008/09.
In a media release, Australian Plantation Products and Paper Industry Council (A3P) chief executive officer Richard Stanton says some sections of the industry are reporting improved markets for their products as a result of continued strengthening of the housing and construction sectors in response to the new home owners grant, improving consumer sentiment, and other government stimulus measures.
“However, new house construction is still well below the level required to meet the long-term underlying demand for new dwellings in Australia and the federal and state governments should not be complacent about the need to continue to address the housing shortage,” he says.
Key statistics shown in the Australian Forest and Wood Products Statistics data for the March and June quarters of 2008/09 released by ABARE yesterday include:
- A 17% fall in housing starts to 131,000 units;
- Major declines in export volumes of some products including sawnwood (20%), wood-based panels (15%) and paper and paperboard by (10%);
- 5.2% fall in the value of Australia’s forest product exports to $2.3 billion, mainly driven by a significant drop in the value of both woodchips and packaging and industrial paper exports;
- 1.1% increase in the overall value of imported forest products to $4.5 billion. The increase was due to rises in the value of imports of paper manufactures, miscellaneous forest products and paper and paperboard. The value of sawnwood and pulp imports fell in 2008-09.
“The relatively stable domestic market for wood and paper products has underpinned the fundamentals for the Australian industry during the financial downturn but export markets have been tough and there have been real consequences for companies, employees, contractors and the rural and regional communities where the industry operates.”
“While conditions are now improving Australian wood products and paper manufacturers are once again facing the challenges of a very strong Australian dollar impacting competitiveness in both the domestic and export markets.”
