a developed country with largely representative conservation reserves, strict environmental regulation and ongoing investment in research and development, Australia can legitimately look to its forest industries as renewable sources of economic and non-economic wealth. 

As manager of 1.5 million hectares of State forests, Forestry Tasmania works to balance the many values attributed by the community to the forest environment. As a Government Business Enterprise, it is mandated by the Tasmanian Forestry Act 1920 to manage State forests for multiple uses – to maximise not only the economic returns from the sales of wood products, but also the benefits flowing to the community from the non-wood values of forests. In purely financial terms this operating environment creates a unique set of constraints that are not borne by private forestry companies. However, it also creates as many opportunities for the business to position itself as a leader in the sustainable management of forests.

Despite being a net exporter of wood products in volume, Australia has a wood products trade deficit in value, which in 2003-04 was A$1.7 billion (Australian Bureau of Resource Economics  2005, Australian Forest and Wood Products Statistics).

Of even greater concern is the recentestimation that, of the wood products imported into Australia, some A$400 million are sourced from illegal harvesting activities (Jaakko Poyry Consulting 2005, Overview of Illegal Logging prepared for the Commonwealth Department of Agriculture, Fisheries and Forestry). 

From trade and environmental perspectives, one of the Australian forest industry’s key challenges is to meet demand from ever more environmentally-aware customers for products sourced from sustainably managed forests.  However, as communities place increasing importance on sustainability, it becomes a prerequisite for doing business rather than a means of conferring product differentiation.  The challenge also remains to develop innovative, high quality wood products that will compete in the national and international marketplaces.

Meeting the challenge

“Businesses demonstrating leadership in this increasingly complex global business  environment are those producing clever wood products that are proven to be ethically sourced. I believe the fundamental step in rising to this challenge is independent certification of environmental performance,” says Forestry Tasmania’s Executive General Manager, Hans Drielsma. “In an industry frequently subject to intense scrutiny by interest groups and the media, it is essential that we communicate quantifiable data to our external stakeholders, such as customers, government and the broader community,” says Drielsma. “As a manager of public forests, our credibility depends on our capacity to demonstrate sustainability across the full spectrum of values that we manage.”

To this end, Forestry Tasmania has invested considerable time and resources towards achieving certification under the generic ISO 14001, as well as the industry specific. Australian Forestry Standard, or AFS (AS 4708). The AFS, which sets performance criteria for the protection of forest values in wood production, is particularly respected by Forestry Tasmania for its consideration of uniquely Australian sustainability indicators. It is internationally endorsed by the Programme for the Endorsement of Forest Certification Schemes (PEFC). 

“Certification verifies that our performance is independently audited against environmental, social and economic criteria,” says Drielsma. “These criteria measure performance in areas including water quality, soil conservation, protection of threatened species, cultural heritage management, worker safety and sustainable levels of timber harvesting. Through its requirement for annual public reporting, certification provides tangible evidence of the much-vaunted triple bottom line.”

Measurable environmental outcomes

The requirements for continuous improvement that are built into these certification schemes have also been key drivers in Forestry Tasmania’s search for innovative ways to improve its environmental outcomes.

“Certification is not the final destination for any business,” says Drielsma. “Rather, it formalises the ongoing process of adaptive management as new knowledge becomes available.”

Forestry Tasmania’s research into more environmentally benign systems for harvesting in old growth wet eucalypt forests is a case in point. In Tasmania, most old growth forest is protected in conservation reserves, with the relatively small amount available for timber production a valuable source of high quality eucalypt and signature “special species” such as myrtle.Nevertheless, from its first annual Sustainable Forest ManagementReport in 2001, Forestry Tasmania articulated its aim to reducereliance on clearfell systems in old growth forests. This goal is now reflected in State Government policy, which will see clearfelling reduced to no more than 20% of the old growth harvest by 2010. 

“While clearfelling in old growth forests has clearly been a contentious issue in the community, it is not commonly recognised that it cannot be replaced by traditional forms of selective harvesting,” says Drielsma.“Worker safety, economic returns and, from an ecological viewpoint, the forest’s capacity to regrow would be compromised – all effectively negating other targets for sustainable forest management.”

With such complex values to manage, Forestry Tasmania has required an immense commitment towards research from its own scientific staff as well as partner research organisations. Its research program commenced over 10 years ago, and is still continuing to investigate both the forest science and social science implications of alternative old growth harvesting systems. 

“We are now realising this investment in research through the discovery and implementation of new harvesting systems, which balance biodiversity and timber production within harvested areas,” says Drielsma.

The future

With sustainability targets such as this decreasing reliance on old growth forests, as well as its corporate aim to be competitive in international markets, Forestry Tasmania has mapped out a path for future growth in value-added products manufactured from regrowth timber.

In 2006, it announced the construction of the State’s first rotary veneer mills, to be developed with its joint venture partner, the Malaysian-based Ta Ann Holdings. It’s a strategic alliance that will see a new Tasmanian timber product exported directly to lucrative Asian markets, including China, simultaneously creating much-needed employment opportunities in two regional communities. 

“The great advantage of a rotary veneer mill is that it meets our objective to ‘think thin’. It peels smaller, thinner logs, which would otherwise be used for woodchips, creating a higher value product that can be used in a range of engineering applications.  In the Huon Valley alone, we have calculated that 30% more timber will be recovered from ‘pulpwood’ logs. 

“Projects such as these are major investments in maintaining a local forest industry, based on regrowth timber with a clear chain of custody.With so many other timber-producing countries plagued by problems of illegal or unsustainable harvesting, we believe our approach confers a significant competitive advantage.”

Contact: Meaghan Newson
Telephone: +61 3 6233 7052
Website: www.forestrytas.com.au

Forestry Tasmania Annual Report: http://www.forestrytas.com.au/forestrytas/pages/publications.html