The forest products sector generates approximately $24 billion per year for the Australian economy and plays a significant role in driving the economy in a number of regional areas.

The size of the Australian plantation estate has, however, been gradually but consistently declining for over a decade. If this decline is not arrested it could threaten the future viability of the timber processing sector; an industry that relies on certainty of supply to recoup the significant investments in machinery needed to setup a mill.

Report structure:

• The introductory chapter provides an outline of the Australian plantation industry and a brief description of relevant government policies.
• Chapter 2 outlines the impacts of the 2019-20 bushfires which destroyed large areas of plantation stock.
• Chapter 3 deals with the dynamics of the timber market, particularly issues surrounding the likely future demand for timber, the export market, the ability of domestic processors to access a reliable supply of timber, and contracts between growers and processors.
• Chapter 4 addresses the barriers to plantation expansion and how these can be addressed, the potential for small-scale plantations to be situated on farms, and the potential role of the carbon market in driving growth in the plantation sector.