New data shows flat growth for forestry and challenges aheadFriday 6 Mar 2026
The ABARES March 2026 Agriculture Commodities Report highlighted the overall value of production for forestry is expected to remain stable with limited growth over the next five years. (Note, these figures do not include the processing of wood products for housing from Australia’s forestry industry, which is the sixth largest manufacturing sector.) AFPA Chief Executive Officer Diana Hallam said: “While these new figures confirm the vital role of sustainable forestry in Australia for essential products, the environment, exports and economic growth, the report also identified serious challenges and headwinds for our sector. “Some of these challenges and risks include high manufacturing and energy costs, greater use of structural steel in residential and mid-rise construction as well as a growing amount of imported timber products of varying quality flooding the Australian marketplace, including from China. “The report also highlighted a gradual decline in housing with new dwellings increasingly weighted towards higher-density buildings, tempering demand for timber. These figures reaffirm the importance of having policy alignment with Australia’s Timber Fibre Strategy, which outlines opportunities for the industry to make a greater contribution to achieving national goals, particularly in improving carbon, innovation and housing construction outcomes.” The ABARES figures showed the value of forestry exports was due to fall by five per cent in 2025-26 to $2.74 billion. Ms Hallam said: “It’s absolutely vital that Australia’s forest products and innovative forestry supply chain remains strong and continues to innovate, thrive and grow. “Earlier this year, we submitted our pre-Budget 2026-27 submission, which reiterated the importance of continued industry support from the Federal Government for the successful Support Plantation Establishment Program and Wood Processing Innovation Program. “We must also ensure the 80,000 Australians directly employed across Australia’s forestry industries have a strong and vibrant future, which is essential for national productivity, our environment and communities everywhere.” Source: AFPA | ||
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