Victoria forestry industry running massive trade deficit

The Age (article), 27/3/2000

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Victoria is continuing to run a huge trade deficit in forest products. According to the Australian Bureau of Agricultural and Resource Economics, Victoria imported forest products valued at $50.62 million in the September quarter, and exported $36.8 million worth.

 However, the true extent of the imbalance is hidden because imports of various paper products are not broken down on a state basis.  Australia's paper product imports in the September quarter were $632.2 million: paper and paperboard ($482.8 million), paper manufactures ($98.7 million) and pulp ($50.7 million).

Apart from paper, Victoria's main forest imports in the quarter were sawnwood ($27.79 million) and miscellaneous forest products ($16.8 million), veneer ($2.39 million), plywood ($2.33 million) and board products ($1.51 million).

Victoria's main forest exports were woodchips ($31.8 million), which consisted of softwood ($18.7 million) and hardwood ($13.1 million). The latter is likely to be woodchips from native forests as few hardwood plantations are ready to harvest.

Victoria's woodchip exports made up just over a fifth of the National woodchip export total in the September quarter of $146 million. Japan took the bulk of the woodchip exports ($137 million), followed by South Korea ($2.89 million) and 'other', $6.0 million. In 1998-99, Victoria's imports were $206.19 million and exports were $156 million, which consisted mainly of woodchips ($135.57 million): $41.5 million hardwood and $94.08 million softwood.

Australia's imports of paper products in the same financial year were $2.297 billion. This was the main factor in creating a national trade deficit in forest products of $2 billion in 1998-99 - exports were valued at $1.29 billion and imports at $3.25 billion.


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