world news - 12.11.2009
Financial crisis hits forestry sector
After avoiding the worst of the economic fallout from the global
financial crisis in 2008, Australia’s forest sector is now experiencing
some adverse effects according to a new ABARE report. The biannual report, Australian forest and wood products statistics,
reveals a significant downturn in forest product production and
exports, as the industry is affected by the international downturn in
forest products trade and a drop in domestic housing sector demand. “2009 is finally revealing the effect of the global financial crisis
on Australia’s forest sector, with domestic housing activity decreasing
by 17 percent in the year to June 2009, affecting domestic consumption
of structural wood products,” ABARE executive director Phillip
Glyde said. “To compound this downturn, there has also been a significant drop
in export demand for our major forest product exports this year.
Together, these factors suggest it will be a tough year for the forest
industry. “The effect of the drop in housing activity can be seen in the fall
in demand for wood-based panels (excluding veneer) with consumption and
production down by 11 percent and 7.7 percent respectively, in 2008-09,
with a similar effect expected in the sawnwood sector.” Forest product exports, which remained strong in the first half of
2008-09, suffered large declines in the March and June quarters of
2009, leading to an annual fall of more than 5.2 percent to $2.3
billion in the 2008-09 financial year. This was mostly a result of a seven percent fall in the value of woodchip exports, which fell below $1 billion. The volume of woodchip exports also fell, with a decrease of 15 percent. However, prices of exports to Japan remained firm. “On the positive side … total veneer production exceeded 100 000
cubic metres in 2008-09, resulting in the value of veneer exports
almost doubling to $36 million,” Mr Glyde said. “China has also increased its demand for our woodchips, going some way to offset lower demand from our principal market, Japan. “We noted in the previous issue that Australia’s forest sector had
remained remarkably resilient in the face of the economic slowdown;
however, the new data emphasises that the industry remains dependent on
key trade markets and domestic housing. “Future developments in these sectors will be critical to the forest sector’s outlook.”
See also:
- — Russia extends timber export duty moratorium for next year
- — Tree house man lives off the land
- — Deciduous forests on the increase in Sweden
- — Timber company looking to invest in region
- — European building materials industry outlook remains negative
