Australia’s wood processing sector - mills continue to close

Friday 25 Oct 2024

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.

ABARES Executive Director Dr Jared Greenville said we estimate 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, said Dr Greenville.”

Read the full report here: ABARES National Wood Processing Survey 2021-22.

Source: ABARES