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Forestry Tasmania will maintain its focus on providing work for forests contractors by identifying new domestic and international markets for wood products.
General Manager Operations Paul Smith says the economic and social benefits of the export shipment to China have been overshadowed by the fumigation issue.
“The shipment put $1.5m into the pockets of contractors at a time when the industry is beginning to recover from the collapse of MIS companies and depressed demand for lower quality products.
“There is no question that the international market is beginning to recover, driven by increased demand from China.
Mr Smith said however there were important lessons learned from the public concern about the use of methyl bromide to fumigate softwood logs, as required by Chinese customs.
“We have listened to the community and decided that in future we will avoid the use of methyl bromide in Tasmania.
“Clearly, there is community anxiety about venting in port, and our experience over the past week shows that offshore fumigation can be delayed by weather and sea conditions. We were fortunate to be able to load additional logs to offset the increased shipping costs associated with the delays.
“The best option is to find alternative markets for the softwood – and part of the answer lies in the rising pricing for softwood pulp and we have already sold an additional three to four thousand tonnes locally to be woodchipped.
Mr Smith said exports of low quality hardwood peeler logs would continue.
“These don’t require fumigation, and these shipments keep around 350 contractors employed.
“As we have said previously, we will leave no stone unturned in our efforts to maintain work for contractors.
Mr Smith said Forestry Tasmania aims to extract maximum value for every piece of timber harvested.
“The sawlogs are processed here by local sawmillers. Solid wood is processed here by Ta Ann. Pulp wood is woodchipped, and the remainder is available for export.
Forestry Tasmania is anticipating the next shipment will be scheduled towards the end of August and will contain hardwood logs not requiring fumigation.
Mr Smith said FT is working to develop strong relationships with Chinese customers to ensure this valuable export market continues to grow.
END
19th July, 2010
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