Forestry’s A$5b contribution to the Victorian economy

Friday 19 Sep 2025

The forestry industry contributes around A$5.2 billion to the Victorian economy and supports more than 25,000 local and regional jobs, according to a new study commissioned by Forest & Wood Products Australia (FWPA).

The Economic Contribution of the Forestry Industry in Victoria report found the industry contributes to jobs, economic activity and social wellbeing in regional communities and across the state.

These benefits were measured across the supply chain – from the growing and harvesting of plantations, to primary and secondary processing of logs – and encompassed wood products such as sawn timber for use in construction, appearance products such as flooring and decking, woodchips for export, pulp and paper.

Analysing the 2021-22 and 2022-23 financial years, the report attributed $5.2 billion in direct output from the industry. A$1.3 billion of this came from the primary processing stages with A$3.9 billion generated across the rest of the supply chain.

Similarly, around 9,300 jobs are supported up to the point of sale of primary processed products, followed by more than 15,700 full-time jobs downstream in the supply chain.

FWPA’s Manager of Statistics and Economics, Erick Hansnata said the report supports decision makers and communities with a clear evidence base.

“This study provides an up-to-date and comprehensive picture of the forest industry’s economic contribution in Victoria,” he said. “It will serve as a key reference for the industry and communities in understanding and recognising the sector’s value, particularly in identifying where forestry contributes most to regional employment and economic activity.”

CEO of the Victorian Forest Products Association, Andrew White, echoed this statement, saying by quantifying flow-on employment, the report underlines forestry’s role as a foundational industry for regional Victoria.

"This report shows the incredible multiplier effect of Victoria’s wood fibre industry. For every person directly employed, up to three more jobs are created across transport, manufacturing, and regional services,” he said.

“It’s proof that our industry doesn’t just grow sustainable timber – it grows whole communities and local economies right across the state. “In total, more than 25,000 Victorian jobs rely on our industry every year.”

Beyond producing fibre for processing, Victoria’s forests also create the setting for a diverse range of activities that bring extra value to regional communities.

Grazing, beekeeping, bushwalking, camping, mountain biking, hunting, tourism and even firewood collection all take place on forestry land, creating jobs, drawing visitors and supporting local livelihoods.

While the economic value of these activities wasn’t measured in this report, they highlight how forestry’s contribution extends well beyond timber to touch everyday life across regional Victoria.

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Source & image credit: FWPA