Economics of logging

Forest Industry Taskforce progress

Thursday, August 18, 2016

In line with the Taskforce Terms of Reference, those representing the industry, union and enviro groups have refined the agreed opportunities for industry and conservation changes. This includes the establishment of new parks and reserves, threatened species, wood supply security, industry investment, measuring and valuing forest carbon, jobs and regional employment, review and reform regulations (laws), the future shape of the industry and the future shape of conservation and the parks system.

Storm-trashed woodchip mill - update

Sunday, July 31, 2016

Last week the first clunky attempt to load woodchips – minus wharf and conveyor belt began. It was incredibly slow and took 8 chip trucks about 45 minutes each to load, drive around to the nearby navy wharf and unload to a makeshift conveyor belt. This constant convoy over 5 days isn’t the most cost effective way to load woodchips.  This is about 7 times less efficient than when they were filling ship hulls at the chip mill’s (now damaged) loading facilities. This is not a long-term viable solution - and the rebuilding of the jetty looks pretty remote.

Native Forest logging: we can do better than this

Saturday, July 23, 2016

Originally published at: 

Pretty much everyone is sick of the slogans used by the major parties in the election. But jobs, growth and fairness remain pertinent to the current situation in the native forests of Victoria's Central Highlands. There, the reality is that native forest logging provides few jobs; it is not a growth industry – its resource availability is shrinking. It is not fair that taxpayers have to subsidise an industry worth far less to the economy than alternative uses of the forest.

Is Victoria's native forestry industry worth it at $5 million a job?

Monday, June 27, 2016

Originally published at: 

The viability of Victoria's government-owned native forestry business has been thrown into doubt by a high-level analysis concluding it takes more than $5 million of investment in roads, machinery and equipment to create a single timber job.

Victorian forests worth more as national park than timber

Tuesday, June 21, 2016

Originally published at: 

This ANU report proves the logging industry is worth 1/70th what the forests produce in water value.

Professor David Lindenmayer said plainly "This is really dumb economics..." Logging in the central highlands generated a tiny $29 per hectare of additional net economic activity in 2013-14. That compares to a $2,023 per hectare contribution to the state's water supply, a $2,667 per hectare contribution to agriculture and $353 per hectare from tourism.

The analysis also found the value of carbon sequestration was potentially greater than the value of logging. Based on a carbon price of $12.25 - which was the average price paid by the Commonwealth in its second direct action emissions fund auction - it estimated carbon storage could generated about $38 per hectare per year.

Central Highlands carbon storage worth more than logging

Monday, June 20, 2016

Originally published at: 

The Andrews government is considering creating a new national park in the central highlands. Photo: Justin McManus

Victoria's Central Highlands' forests would potentially generate more income for the state if they were permanently preserved to store carbon rather than logged, according to a major study.

Climate change whacks a worthy target – the CHIPMILL

Friday, June 17, 2016

Mother Nature dealt a 17m ‘Monster wave’ to the Eden woodchip mill’s loading facilities and jetty on 5th June. The east coast low that delivered this hit could be defined as an ‘Act of God’ meaning there might be no insurance payout.  Two massive chunks were taken out of the jetty, the pylons gone and the conveyor belt damaged. It might take 6-12 months to be rebuild and repaired.

Pages