Certainty for local wood processors after extension of wood supply agreements

Deputy Prime Minister Paul Toole said the additional five-year agreement aligned the expiry date of all timber supply contracts across the region and confirmed government support for the hardwood sector .

“Most deals on the North Coast were due to end in 2023, while others ran until 2028, but now these essential sawmills have all been put on the same timetable to help provide investment and certainty. business,” Toole said.

“The timber industry plays a vital role on the North Coast and employs hundreds of locals, so extending the current agreements will help future-proof local processors, whether it’s a small family business or a larger operator,” Toole said.

“This brings immediate relief to local industry, which generates approximately $349 million each year, and is a welcome boost to the manufacturing of the hardwood products that are processed here.”

NSW Agriculture and Western Minister Dugald Saunders said wood is the ultimate renewable product, and it is essential that governments support the industry so that we can continue to use it in the future.

“Timber sustains our cities, and the stock grown on the North Coast is for the essential materials we use every day, including utility poles, dock piles, bridge decks, flooring and pallets. transportation,” Saunders said.

“As part of the Regional Forest Agreements, New South Wales is committed to growing and re-growing timber in an environmentally responsible way, to meet community demand in a sustainable way.

The wood is sold under long-term agreements because processing requires specialized facilities, equipment and training. When existing agreements expire, market processes are undertaken to ensure that forests can supply the amount of timber needed. The wood supply is planned for a period of 100 years, but must be reviewed every five years.

Forestry Corporation completed an additional review ahead of schedule to take into account the impact of the 2019-20 fires.

“While the fires were widespread, the good news is that many native species are resistant to the fire, and recent heavy rains have seen north coast forests grow and recover well,” Saunders said.

“We are fortunate to have been able to maintain strong timber stocks to meet extended agreements and beyond.

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