Boom, bust or buoyance – The future of Tasmania’s timber sector

Simon Talbot, GM Tasmania Forestry Hub

Last June the Hub released the Demand Outlook for Tasmanian Timber Products and, to be fair, it was very rosy.

Of course, no good piece of insight data survives contact with reality, and I have been asked two pertinent questions of late:

What is happening in Tasmania on the ground?
And where is investment taking place?

Without disclosing any specific projects or confidential information I can see three main themes of opportunity.

Pulp and paper (packaging) is attracting record prices for Tasmanian woodchips, and there is looming Chinese demand with over $9.0B AUD worth of new packaging machines coming online in 2023-2025.

Biomass/ biofuels 
There are three major projects focused on this in Tasmania with an estimated $3.0B investment into our state (yes, full disclosure, I am moving on to one of these projects). But in brief, if only one project succeeds it is a significant supply opportunity for the state. Furthermore, successful, the byproducts and derivative investments will be significant.

Solid wood/ mass timber
Tasmania is currently supplying towards the estimated 2030 shortfall of material for 300,000 Australian houses. Investment is occurring across five key value add projects in south, north and northwest, Tasmania with over $150M investment planned.

To discuss this in more detail, contact Simon HERE.