Outlook scenarios for Australia's forestry sector: key drivers and opportunities

This report examines three potential outlook scenarios for Australia's forestry sector using analysis of the potential availability and use of logs, forecasts of wood product consumption, and the opportunities for processing of wood products and investment.

ABARES conducted a number of workshops with industry and government stakeholders to refine the scenarios and test the assumptions supporting this analysis. A business-as-usual scenario was analysed, which depicts a future assuming current economic, policy and environmental factors affecting the forestry sector remain unchanged over the projection period (to 2050). Two alternative scenarios (priority-to-productivity and constrained-wood-production) are also examined. Sensitivity testing was also conducted to identify the influence of key parameters.

The analysis in this report highlights some key opportunities for Australia's forestry sector, as well as the economic and policy factors required for realising these opportunities. The results affirm that a positive investment environment for upgrading and expanding wood processing infrastructure will underpin growth in Australia's forestry sector.