Wood Chipping in Australia Industry Market Research Report Now Updated by IBISWorld

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In 2011-12, revenue for the Australian Wood Chipping industry declined due to exports to Japan dropping from March 2011. The March 2011 Japanese tsunami had a major negative effect on the industry's exports for the later months of 2010-11 and 2011-12. This follows export declines to Japan in previous years due to Japanese papermaking companies sourcing woodchips from other countries and reducing overall demand. For these reasons, industry research firm IBISWorld has updated its report on the Wood Chipping industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

The Japanese tsunami had a major negative effect on the industry's exports

In 2011-12, the Australian Wood Chipping industry is estimated to generate revenue of $971.6 million, down 8.7% from the previous year due to exports to Japan dropping from March 2011. According to IBISWorld industry analyst Alen Allday, “the March 2011 Japanese tsunami had a major negative effect on the industry's exports for the later months of 2010-11 and 2011-12”. This follows export declines to Japan in 2008-09 and 2009-10 due to Japanese papermaking companies sourcing woodchips from other countries and reducing overall demand. As demand from Japan decreased in most of the five years through 2011-12, industry revenue declined an annualised 6.7% for this period.

Despite recent industry declines, the Wood Chipping industry is forecast to grow steadily in the five years through 2016-17. Strong growth should come from Japanese demand returning to growth. “As the Japanese economy recovers from the 2011 tsunami, the country's paper manufacturing industries are expected to expand strongly and drive woodchip demand”, Allday says.

The industry has a medium level of market share concentration. The concentration level has increased in recent years due to industry exits, such as Timbercorp, and due to lower industry revenue since 2008-09. However, regulatory requirements to be involved in the industry may hinder concentration increases and limit new companies entering the industry in the future. Due to stringent regulations, the Wood Chipping industry comprises a small number of forestry-associated companies producing woodchips mostly for export, and other smaller firms that operate next to saw millers and use their residue for conversion into woodchips. Major players are either integrated forest companies or plantation managers that have expanded into logging and wood chipping. The two major players in the industry are Gunns Limited and South East Fibre Exports Pty Ltd.

For more information, visit IBISWorld’s Wood Chipping report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Firms in this industry produce softwood and hardwood woodchips. The majority of these woodchips is exported to Japan, with a smaller proportion used in Australia's paper and paper products manufacturing industries.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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