- TIMBERBIZ.COM.AU - A La Une - 20/Aug 00:32

National Forestry Day in uncertain economic times

National Forestry Day was usually a time to celebrate the achievements of Australia’s forest and timber industries, with this year marking 150 years since George Goyder mapped out South Australia’s first plantation. Source: Timberbiz The Minister for Agriculture, Fisheries and Forestry, Julie Collins said that National Forestry Day was an excellent time to highlight the importance of our forestry sector, from the jobs it supports in our regions to the significant impact it has on our national economy. “Today is also an opportunity to look to the future of this great sector, which plays an important role in supporting our Net Zero ambitions, and providing sustainable, high-quality, carbon-sequestering products that Australians need,” she said. But despite this milestone, the industry faces an uncertain economic future, according to South Australian Forest Products Association Chief Executive Officer, Nathan Paine. “South Australia is proud to be the birthplace of Australia’s plantation forestry industry,” he said. “For 150 years, generations of South Australians have grown and processed the timber that builds our homes, supports our manufacturers and retailers, underpins our farms, and sustains our economy and way of life. “Yet today, our timber processors are under unprecedented pressure from both soft domestic demand and the growing threat of surging imports,” he said. The United States had now lifted tariffs on Canadian timber to 35.19%, escalating a broader global trade shift with Canada explicitly identifying Australia as a key new market for its diverted supply. “The scale of potential trade diversion is alarming, especially as Canada exported an estimated 28 million m³ of lumber to the US in 2024 – equivalent to almost 2 million homes,” Mr Paine said. “And, even if 5% of Canada’s displaced supply were redirected to Australia, it would mean an additional one million m³ flooding into our market – a volume large enough to destabilise local processors and trigger mill closures.” This was not just a trade issue; it was a sovereign capability issue, and to protect Australia’s timber future, SAFPA has released its Our Timber. Our Jobs. Our Future. policy paper, calling for urgent government action. Key recommendations include: Maximise South Australian grown and processed fibre content in all State Government property projects and advocate for the Federal Government to adopt the same approach. Establish a State-level Supporting Domestic Manufacturing Strike Force to safeguard local capability. Promote retailer-led procurement of South Australian and Australian processed wood products. Support country-of-origin labelling for imported fibre in government projects. Invest in sovereign fibre and manufacturing capability while securing future plantation expansion and fibre supply. Mr Paine said that South Australians knew too well the cost of stepping in when an industry was on the brink of collapse. He said Whyalla was a stark reminder. The Whyalla steelworks is facing severe problems, primarily due to financial mismanagement and operational issues under the ownership of GFG Alliance. These problems have led to the plant being placed into administration, halting steel production for months and threatening thousands of jobs. The South Australian government has stepped in, forcing the plant into administration and pledging support to find a new operator. “While our industry remains solid, we cannot afford to ‘wait and see’ with Mount Gambier, the heart of Australia’s softwood industry,” Mr Paine said. “National Forestry Day should be a moment of pride, and it is. “But it must also be a call to action. SAFPA is working with industry to protect our sovereign capability, secure regional jobs, and ensure that the next 150 years of Australian forestry are defined by resilience, innovation, and sustainability – not disinvestment and decline. “Industry acknowledges the Government’s ongoing engagement and looks forward to working together to protect – and grow – our timber industries into the future. SAFPA will be seeking urgent discussions with the Government to secure support for these recommendations,” he said.