A recent report by The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) have found that the low shipping costs of the last financial has been among the major stimulators for improved conditions in the Australian forestry sector.
According to the report, estimated forestry volume reached interim record levels, increasing by 8% (to 29.5 million cube) and 12% for the value of log harvests (to $2.3 billion), coinciding with strong international trading conditions.
This is the third consecutive year of growth for the Forestry Industry and has been directly attributed to "falling shipping costs and a weaker Australia dollar". Dwelling commencements increased for its fourth consecutive year, rising 5% to 229,600, and the value of exports experienced a considerable rise of 11%, reaching over $3 billion (an all time high) - said to be attributed to strong demand for wood chips and roundwood exports.
Similarly, the value of imports have risen, exceeding $5.5 billion a year, with China a key player - contributing for $1.3 billion worth of imports. The report showed considerable growth in almost all areas of the forestry industry, suggested to only strengthen in the coming year.
Source: ILCS Consulting