An increase in plantation area over the same period has seen the development of an industry based around this resource, particularly in the area of softwood processing. The expansion of both the hardwood and softwood plantation estate will continue into the future.

The 1998 NSW Forest Decision and the Forestry and National Park Estate Act 1998 have afforded some degree of security, that did not exist previously, for the native forest dependent timber industry. Provided that the 1998 Forest Decision is supported and upheld by all stakeholders, the level of resource security that is enshrined in the legislation will remain assured by future Governments. With this assurance and the continuation of plantation development, both the plantation and native forest timber industry in northern NSW can look to the future with optimism.

The Timber Industry in 2000
With the changes in forest resource that have taken place in recent years, and in fact largely because of those changes, northern NSW can now boast a diverse and modern timber industry producing a range of products for both the domestic and international markets. Our native hardwoods in particular are highly valued for their strength, durability, feature and suitability for a wide range of end uses.

Production from both the plantation and native forest industry (hardwood and softwood) includes:

• Green sawn and kiln dried timber suitable for heavy and light construction, fencing, decking, flooring, panelling, internal decorative features and furniture.
• Plywood and veneers for construction, panelling, doors and furniture.
• Hardwood girders and piles for bridges and wharves.
• Hardwood poles for electricity transmission.
• Hardwood sleepers for both railways and landscaping and softwood posts for landscaping.
• Hardwood and softwood woodchip for domestic and export markets.
• Softwood byproducts such as bark for landscaping and mulch.

Between Newcastle and the Queensland border and west to the tablelands the industry directly employs more than 5,200 people (1996 Census) and contributes more than $130 million to the regional economy in wages alone. With the flow on effect to service industries, total employment directly attributable to the industry is more 9,000 people with a contribution of $240 million in wages.

Despite the contraction of the industry in recent years, the economy of towns such as Walcha Grafton, Dorrigo, Kempsey, Kyogle, Woodenbong and Urbenville still rely to a significant extent on the industry and the industry's service providers.

Current Timber Production
The timber industry in northern NSW currently has an annual production in the order of 600,000 to 700,000 cubic metres per annum of sawn (green sawn and dried and dressed), rotary peeled, natural and treated roundwood (poles, piles, girders and posts) and residue products. Annual turnover is in the order of $500 million per year. Of this production about 70% is in sawn material, with more than half of that now being further value added (compared with only about 30% some 20 years ago).

Future Market Trends
Whilst the regrowth native forests and plantations of northern NSW will continue to provide the range of products required by industry and the public, the area of available State forest has diminished as a result of recent forest land use decisions. This has placed an increased emphasis on State Forests of NSW and the processing industry in general, to maximise the production of high quality, value added products from less resource.

There is wide recognition, both in the domestic markets and overseas, of the durability and beauty of northern NSW timbers, particularly our native hardwoods. Traditional export markets are continually being expanded in Europe, North America and Asia. Potentially large markets such as China are showing an increased interest in our hardwoods as a result of changes in their own land use and social policies (the latter seeing Chinese citizens being encouraged towards home ownership rather than State controlled accommodation).

Forest and Sawmill Residues
Where no market for forest residues exists (tree heads, branches and high defect logs), harvesting operations leave behind more than one third of the wood as waste on the forest floor. Similarly, sawmills and other processing plants produce up to 40% of mill waste that is normally burnt if there is no chip market.

If the northern NSW industry is to maximise its utilisation of the available resource and State and private forests are to have improved growth rates for future cutting cycles, expanded markets are needed for forest and silvicultural residues. Residue markets are currently limited to export woodchips out of Newcastle and Brisbane and the much smaller domestic markets for fuel and landscaping material.

Other potential markets for residues such as reconstituted wood panels, wood cements and plasters may develop over time. Although the expansion of the wood panel sector in south east Asia in particular, combined with fluctuations in world wide demand, may delay any large scale investment in northern NSW in the short term at least.

Opportunities exist however for the expansion of the fuel and bio-energy (electricity co-generation) markets that would utilise both sawmill and forest residues. Such opportunities are currently being pursued at the Government and private industry level.

High Value Sawn and Veneer Products
The northern NSW timber industry is increasingly moving away from the production of green sawn material towards further processing, including kiln drying and dressing and veneer production. This is resulting in increased output of a range of higher value products such as flooring, panelling, decorative veneers and furniture grade timber for both the domestic and export markets. Although many sawmills do not have these value adding facilities, they supply green sawn product to down-stream processors that do.

This move towards value adding is consistent with both Federal and NSW Forest Policy to establish a value adding and world competitive native forest timber industry. At the same time the expansion of the softwood and hardwood plantation program will see increased production of value added plantation grown timbers in the future.

Industry Restructuring for the Future
As a commitment to assisting the native forest based industry in moving towards better technology and more value adding, the Forest Industry Structural Adjustment Package was introduced. This program is jointly funded by both the Federal and State Governments.

Eligible companies can obtain financial assistance to restructure their businesses to meet the demands of producing high value products out of a range of log types. The package also includes provisions for business exit assistance for those companies adversely impacted upon by the loss of native forest resource.

Further Information
More information on the timber industry in northern NSW is contained in other brochures in this series entitled Major Commercial Timber Species of Northern NSW - Their Properties and Uses and The Social and Economic Importance of the Timber Industry in Northern NSW.

References
Regional Forest Assessment Homepage
www.rfa.gov.au

The Economic Impact of the New South Wales Timber Industry. Margules Groome Poyry Pty Ltd. 1995.

Produced by Northern NSW Forestry Services for the Northern Rivers Regional Development Board (NR Regional Plantation Committee)

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