FORESTRY Tasmania is sending a trial shipment of logs to China in a bid to open up a new market.
Forestry Tasmania managing director Bob Gordon said the shipment, loaded in Hobart yesterday, was a response to the downturn in woodchip markets and could help relieve pressure on forestry contractors, The Mercury reports.
"While these logs are not good enough for the Ta Ann rotary-peeled veneer mill, our Chinese customers see potential in using these logs for laminated veneers," he said.
"The export shipment is also helping FT to meet increasing demand for sawlogs. In order to supply sawlogs economically, FT must have customers for lower quality wood."
Instead of becoming woodchips, the logs would be turned into a higher-value product.
Forestry Tasmania revenues have been affected by the lower volumes of pulpwood sales and also the closure of the Wesley Vale mill.
Mr Gordon said the shipment had a number of other benefits including:
- Providing much-needed work for contractors during the downturn.
- Providing an additional revenue source for Forestry Tasmania.
- Potential for the shipments to lead to further downstream processing in Tasmania.
Mr Gordon said it was not dissimilar to the approach Forestry Tasmania had taken to encouraging Ta Ann to invest at Southwood.
"Exporting the logs will help familiarise new markets in China with the suitability of eucalypt for lamineer veneer," he said.
He said he hoped the Chinese trials would lead to further downstream processing of the resource in Tasmania and hoped the shipments would ease some of the pressure on forest contractors.
The Tasmanian Forest Contractors Association welcomed the trial shipment of lower quality peeler logs.
Association executive officer Ed Vincent said members were delighted at Forestry Tasmania's success in establishing the Chinese peeler trial.
"Hardwood contractors, who have been greatly impacted by the downturn in international markets, applaud any initiatives that help underpin the forest industry," he said.
Read more on The Mercury.
