Forestry exports hit by economic downturn
A recently released report by the Australian Bureau of Agricultural and Resource Economics (ABARE) has revealed the decline of Australia’s forestry sector, which they have attributed to the global financial crisis.
The bi-annual Australian Forest and Wood Products Statistics report showed exports were strong in the first half of the 2008/09 financial year but a large decline in the second half saw revenue drop more than five percent to $2.3 billion. This was due to a seven percent fall in the value of woodchip exports, as well as a 15 percent decline in the volume of those.
ABARE executive director Phillip Glyde said 2009 has finally revealed the effect of the global financial crisis on Australia’s forest sector. “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,” he predicted.