Timber harvesting and processing commenced in Australia with the arrival of Europeans to this country. Prior to this time, Aboriginal used wood for a myriad of purposes including implements for digging, hunting, fighting and for shelter.

Dargavel (1988) has identified three timber production periods in the development of the native hardwood timber industry in the last two centuries, closely related to the development of particular energy sources and new logging technology. They are:

1. Manual production and the first sawmills (1788-1850) red cedar, native softwoods, eucalypts).

In this period trees were felled by axe or cross cut saw and sawn into lengths using pit saws. Timber was also hewn or split with broad axes and wedges. Transport of the timber to mills and markets was by animal power and so forests closest to market areas were logged first.

This period saw the development of steam power, the advent of powered mills and road transport to enable higher productivity and access to areas previously uneconomic to harvest.

3. Electrification and diesel power (1946-1990) development of wood-chipping plants, pulp and paper (plantation softwoods, eucalypts, cypress pine, rainforest timbers).

Frawley,K (1993)

The hardwood timber industry operates in the latter period. Although improvements in timber sawing and drying technology during this time has improved the range of products from low value rough-sawn 'green' timber to high value seasoned and dressed, appearance material. Sawmillers face a market demanding increased environment protection and improved efficiency. The introduction of enhanced logging technology in each of these periods has also influenced the nature of the forest products developed particularly with regard to the areas in which forestry can operate and the merchantable size of timber millable.

Changing Resources/ Changing Technology

Australia currently has 40.7 million hectares of native forests of which 29.4 million hectares are public forests and 11.3 million hectares are private forests (Australian Bureau of Resource and Agricultural Economics (ABARE) 1995). Some 12.1 million hectares of state forests are specifically managed for timber production while the softwood plantation estate now covers some 1.1 million hectares. A number of developments in the global and domestic timber market over the last 30 years continue to affect the nature of the hardwood timber industry, presenting both competition and perhaps new opportunities for the development of Australian Hardwoods. Over this time, the rate of consumption increase of sawn timber averaged only 0.25% per year. This consumption is closely linked to the level of housing and building activity which are in turn tied to population growth, disposable income and interest rates, of which all except interest rates have fallen in recent years. Using estimates of high dwelling commencement all sawn timber is projected to rise from 3, 972 000 cubic metres (CU.M)/yr in 1995 to 6.5 million CU.M in the year 2030, an average growth rate of 1.1 %/yr. The low estimate for sawn timber consumption is 5.2 million CU.M by 2030, an average growth rate of 0.6%.

The following points indicate that the majority of this increase in timber consumption will be sourced from softwood plantations. While reducing consumption of hardwood timber in structural uses, changes in other markets continue:

• Domestic production of softwood has risen by 50% with sawnwood imports accounting for some $538 million (18%) of the timber deficit in 1994-5. (ABARE 1995).Ê
• Imports from traditional suppliers in the United States, Canada and Malaysia have decreased with New Zealand radiata pine now accounting for over 40% of total imports
• Sawn timber production from native forests has remained at approximately 1.5-1.6 million cubic metres per year. Some suggests that this demonstrates that hardwood producers are meeting the increased competition from softwood plantations and finding new markets for their product
• Exports have increased significantly from 16,500 to 49 400 CU.M over the past five years divided evenly between softwood and hardwood.
• The hardwood forest areas of many nations in the South Pacific currently exporting high quality raw hardwood logs (including the Solomon Islands) are likely to be exhausted within 10 to 15 years. Australia may be well placed to supply a part of the expected future demand when these forests are depleted.

It should also be noted that the supply of timber from Australia's plantations is expected to double over the next decade (combined with evidence of a glut in the production of pine in New Zealand) which will aid the increasing substitution of softwoods for traditionally hardwood market sectors, particularly in structural applications.

While it appears hardwood timber consumption is fairly static and certain to face increasing competition for its traditional markets within Australia, some forecasts estimate a decline of hardwood sawlog supplies by 20% minimum, and stabilising thereafter sometime after the year 2000. (Resource Assessment Commission (RAC) 1992) This reduction is a conservative estimate and may reduce further depending on the outcomes of the Regional Forest Agreements (RFA) currently being developed between the states and the Commonwealth to secure industry resource tenure. Also, eucalypt sawlog plantations planted today are unlikely to influence wood supply for some years to come.

These influences will require that industry to diversify their products, increase their efficiency of operation and the degree of wood utilisation. How these challenges are being met by the industry is discussed in the Present Challenges and Future Opportunities for Australian Hardwoods

The Forest Industry, its People and Employment

The Federal Government's Wood and Paper Industry strategy, included an estimate that some 82 500 people work in forest, logging and forest products industries in Australia. The forest product industries as a group are rated as Australia's second largest manufacturing industry and a major regional employer.

Australian Bureau of Statistics (ABS) data show that total employment in wood and wood products was 39,100 in the 1992-3 period with the total number of employees in this sector having declined over time due to increased mechanisation and the decline of the area of resource available as shown below (ABS 1993).

Employment in Australian Forest Industries (Dargavel 1995).

Indeed total sawlog removal from Australia's forests is also declining as pulplog production and removal increases.

Changes in sawlog removal from native forest and plantation sources (Dargavel 1995)

It is estimated that 1400 sawmills (1170 hardwood and 230 softwood) of all sizes were operating in Australia in 1992-93 (NAFI 1996). Most mills are small and employ between 5 and 20 people. Sawmilling wages are low, conditions hazardous and the work hard.

(Australasian Logger and Sawmiller 1996)

The National Association of Forest Industries (NAFI) Home Page summarises forestry related statistics in recent years. For the most recent information, further material may be obtained for a fee from ABARE.

There has been considerable debate on the merits of continued logging of native forests and the use of plantations as an alternative for sawlog production. Indeed Australia has about 140,000 hectares of eucalypt plantations and the rate of planting has increased from 2500 ha in the 1980's to some 10,000 ha per year today with further increases likely. However, the majority of this material has been planted for pulpwood production not sawlogs with young eucalypt logs from thinnings and plantations considered most suitable for this purpose.

The Young Eucalypt Program

The need for industry to transfer to younger timber from plantations and regrowth forests and the challenges faced in processing this resource is discussed in Present Challenges and Future Opportunities for Australian Hardwoods.

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URL: http://online.anu.edu.au/Forestry/wood/hwd/Hist.html