Pricing information dispels woodchip myths

Information released by Forests NSW on south coast timber royalties confirms that pulpwood sales pay their own way and contribute to the ongoing viability of the region’s timber industry.

The pulpwood pricing information shows that all products harvested from State forests are sold on a commercial basis and for the highest value uses available.

The information should set the record straight and eliminate the myths surrounding pulpwood prices paid by the Eden woodchip mill, including claims that pulp logs are sold for just a few cents.

The pricing information shows that in the 2003-2004 financial year Forests NSW received $16 a tonne for pulp logs supplied from Eden Agreement area, south from Cobargo to the Victorian border.

The price paid for pulp logs from Southern Agreement area, north of Cobargo, was $6.90 a tonne.

The lower price received for the smaller volume of wood from forests north of Cobargo reflects the much longer distances and higher costs involved in hauling logs to Eden.

Less than one fifth of the total volume of pulpwood is sold at this lower price.

More than half of Forests NSW revenue on the south coast comes from the sale of sawlog products to sawmills.

It is important to recognise that pulp quality logs from forest thinnings and harvesting residues are legitimate products that pay their own way.

Access to long-term reliable markets for these lower grade forest products underpins the economic viability of the whole industry.

This includes hardwood and softwood plantations as well as native forests, where thinning the forest as it grows is essential to ensuring an adequate supply of high quality sawlogs for the future.