OneFortyOne to halt log exports

In a move welcomed by local timber processors, OneFortyOne Plantations has announced it will not export saw logs from its estate for the next financial year. Citing “strong domestic demand and the continued outperformance across the building industry” as reasons for the decision, CEO Linda Sewell said the export volume of saw log had recently been in steady decline due to high demand from domestic customers.

“While demand remains strong, we will further support the local industry by retaining the logs onshore,” she said. However, Ms Sewell said OFO’s focus was to support the current capacity of the domestic industry and not to compromise the long-term sustainability of its forests by expanding beyond its means. “We have been meeting the rising domestic demand where we could do so sustainably,” she said.

In this regard, OFO has confirmed it will continue to export surplus pulp logs produced from forest thinning programs and will not preclude exporting saw logs in future should market conditions change. “We worked hard to develop export markets and like any industry we need the diversity that those markets bring to help smooth domestic market fluctuations,” Ms Sewell said.

Source: The Border Watch

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