Forestry in Australia Industry Market Research Report Now Updated by IBISWorld
Melbourne, Australia (PRWEB) February 24, 2014 -- The Forestry industry derives most of its revenue from managing native forests, plantations and timber tracts. About 51.0% of Australia's plantation area is comprised of softwood (coniferous) species, while the remaining 49.0% is hardwood (broadleaf). The plantation segment has been boosted by the increased preference for non-native timber in Australia and overseas. According to IBISWorld industry analyst Alen Allday, “Amid difficult growing conditions, forest managed investment scheme problems and restrictions on the availability of water, the Forestry industry has attracted attention due to its irrigation practices and investment levels.”
Australian native forest area is estimated to total 148.0 million hectares in 2013-14, down from 153.0 million hectares in 2008-09. In 2010-11, plantation forests accounted for 76.1% of harvested logs in Australia, while native forests accounted for 23.9%. In 2013-14, IBISWorld estimates that these ratios will change to 80.0% and 20.0%, respectively, as plantation log harvesting increases. This is a major change from a decade ago, when 13.4% of the total logs harvested in Australia were from plantation forests, while 86.6% were from native forests. IBISWorld estimates that Australia's Forestry industry will record revenue of $1.5 billion in 2013-14, down 3.5% from the previous year after some large fluctuations in previous years. Forest managed investment schemes (MIS) increased in popularity in the years through 2007, as investors received an up-front 100% tax deduction. “The MIS boosted demand for forestry services, until several companies heavily involved in the schemes collapsed between 2008 and 2010,” says Allday.
The industry exhibits a fairly low level of concentration. Notable operators include Forestry Corporation of NSW, Hancock Victorian Plantations Holdings Pty Limited, VicForests, TFS Corporation Ltd and Forestry Tasmania. IBISWorld expects industry revenue to decline at an annualised 3.0% over the five years through 2013-14. Some growth in timber demand, driven by housing construction growth, is expected in future years and will benefit the Forestry industry.
For more information, visit IBISWorld’s Forestry report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in this industry grow, manage and maintain standing timber in native forests, plantations or timber tracts. The industry grows trees either for future logging or for conservation. Forestry companies are paid for such services by federal, state or local governments, or by private landholders in the case of plantations (which include logging businesses).
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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.
Gavin Smith, IBISWorld, http://www.ibisworld.com.au, +61 396553833, [email protected]
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