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Maroc Maroc - TIMBERBIZ.COM.AU - A La Une - 22/Oct 23:27

Drop of 47 mills since 2016-17 continues a downward trend

The ABARES National Wood Processing Survey 2021–22 shows that in 2021-22 there were a total of 252 mills operating. This is a fall of 47 mills since 2016-17, continuing a downward trend in the number of sawmills operating over the past 30 years. Source: Timberbiz ABARES Executive Director Dr Jared Greenville said ABARES estimated that of the 252 mills operating in 2021-22, 146 were hardwood sawmills, 48 softwood sawmills, 13 cypress sawmills, 20 post and pole mills, and 25 wood-based panel mills. “The falling mill numbers have predominately been driven by consolidation, with a number of the remaining mills increasing their input capacity,” Dr Greenville said. “Compared to 2016-17, sawnwood production fell by 8% to 4.3 million cubic metres, with softwood production down by 5%, hardwood production down by 21% and cypress pine down by 30%. “Sawnwood revenue for the sector was estimated to be $3 billion in 2021-22, up 8% in real terms from 2016-17. “Higher product prices have been outweighing falls in sawnwood timber production, contributing to the real increase in production value for the sector. “Survey results also show that sawmills and post and pole mills remain a strong employer in the forestry industry, with more than 7,500 employees.” In 2021-22, compared with 2016-17 Total input fell by 7% to 9.9 million cubic meters of sawlogs (including post and pole logs) being processed in Australian sawmills. This comprised of 1.6 million cubic metres of hardwood (down 16%), 8.2 million cubic metres of softwood (down 5%) and 139,000 cubic metres of cypress (down 5%). Sawnwood production fell by 8% to 4.3 million cubic metres, comprised of 561,000 cubic metres of hardwood (down 24%), 3.7 million cubic metres of softwood (down 5%), and 40,000 cubic metres of cypress pine (down 30%). An additional 317,000 of hard and softwood posts and poles were also produced. 4.4 million cubic metres of residues were also produced, comprising of 616,000 cubic metres of hardwood residues and 3.9 million cubic metres of softwood residues. This resulted in recovery rates of 39% for hardwood sawmills, 47% for softwood mills and 79% for post and pole mills. Revenue from sawnwood sales increased by 20% to $3.0 billion. This comprised of over $700 million in revenue from hardwood sales (down 24%) and $2.3 billion from softwood and cypress sawnwood sales (up 47%). The number of workers employed by sawmills and post and pole mills fell by 7% to 7,506, 85% of whom are classified as full-time workers. In addition, in 2021-22 it was noted that, the largest cost for sawmills was revealed to be logs, followed by wages. Respondents lacked a common view on the demand outlook for the next 12 months with 88% of hardwood mill respondents raised log supply as an issue, while softwood sawmills raised additional issues including product demand and access to skilled labour. Read the full report here.

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