Plantation Sustainability – Economic
Economic
Specific States & Regions
Access some economic and socio economic studies of the plantation and broader forestry industry conducted in various regions across Australia that have been conducted in recent years.
Great Southern WA and Southern NSW
The following report describes the economic impacts of plantation development as it progresses through various stages in two key plantation regions: Socio Economic Impacts of Plantation Forestry (pdf).
Green Triangle Region (SA, Vic)
A more recent (2008) detailed report of socio-economic impacts for the Green Triangle region (south east SA and south west Victoria) can be found in the following report: Plantation Impacts Green Triangle (pdf)
Victoria
Gippsland region – In 2003/04 the Gippsland forest and forest products industry contributed to the region economically as follows:
| Parameter | Direct Impact | Total Impact |
| Gross Value of Output ($M p.a.) | 1, 207 | 1,945 |
| Household Income ($M p.a.) | 161 | 326 |
| Employment – (number) | 3,124 | 6,244 |
- Contributions or payments made to the local residents and businesses were $534 million p.a. and to the public sector –including Commonwealth, State and local government were $165 million p.a.
- The plantation sector supports 53% of the total value of output and 48% of total employment from Gippsland’s forests and forest products industry.
- Latrobe City LGA contains most of the large mills including the Australian paper mill at Maryvale, and accounts for 72% of the regional value generated by the Gippsland forests and forest products industry. Wellington Shire generates 15%, while East Gippsland Shire provides 10% of regional industry turnover.
Source: The Timber Industry in Gippsland: A Socio-economic assessment September 2005 (pdf).
Central Victorian Region – In 2001/02 the Central Victorian forest and forest products industry made the following direct economic impact on the region:
| Sector of Forest & Forest Products Industry | Value of Production ($ Million) |
% | Employment (number of people) |
% |
|---|---|---|---|---|
| Softwood plantations | 160.241 | 69 | 608 | 62 |
| Hardwood plantations (in establishment phase) | 4.600 | 2 | 78 | 8 |
| Native Forest | 68.618 | 29 | 290 | 30 |
| Total | 233.459 | 976 |
- The largest processing facilities are located in Geelong and Colac.
- 329 (40%) people are employed in Colac Otway Shire and 129 (13%) in the City of Greater Geelong.
Table: Value of Forest Sector Production and employment in Central Victoria (2001/02)
| Local Government Area | Value of Production ($ million) | Employment (number) |
|---|---|---|
| Pyrenees | 5.883 | 75 |
| Hepburn | 2.928 | 86 |
| Macedon Ranges | 5.125 | 72 |
| Hume | 0.000 | 0 |
| Melton | 0.000 | 0 |
| Moorabool | 0.325 | 44 |
| Ballarat | 7.484 | 88 |
| Golden Plains | 1.128 | 35 |
| Greater Geelong | 123.770 | 129 |
| Corangamite | 4.584 | 43 |
| Colac-Otway | 82.101 | 390 |
| Surf Coast | 0.132 | 14 |
| Wyndham | 0.000 | 0 |
| Total | 233.459 | 976 |
Source: Socio-Economic Study of the Forest Industries in Central Victoria August 2003 (pdf)
South Australia/ Victoria
Green Triangle –The value of the forestry and forest products industry in the Green Triangle Region in 2003/04 follows:
- The direct contribution to Gross Regional Production (GRP) generated by the wood and paper products sector in the Green Triangle region (from output valued at $840 million) was around $401 million in 2003/04.
- Associated with this was GRP in the forestry sector of over $114 million (from output valued at $214 million).
- The flow-on GRP to other sectors in the Green Triangle region summed to almost $263 million.
- The flow-ons were greatest in the trade, transport, ownership of dwellings, business services, other manufacturing, utilities and finance sectors.
- Directly and indirectly, the timber industry (i.e. forestry and processing) contributed over $778 million to GRP for the Green Triangle regional economy in 2003/04, approximately 16 per cent of the total.
- Direct employment generated by the wood and paper products sector in the Green Triangle region was around 3,400 and in the forestry sector approximately 830 in 2003/04.
- Flow-on employment to other sectors in the region as a result of timber industry activity summed to almost 4,600 jobs.
- Directly and indirectly, the timber industry (i.e. forestry and processing) generated almost 8,800 jobs in the Green Triangle region in 2003/04, approximately 12 per cent of the total.
Source: Economic Impact of the Timber Industry in the Green Triangle Region, 2003/04 (pdf)
New South Wales
Bombala – Some of the impacts that a single private forestry processing company, Willmott Forests Limited, is currently having on the Bombala region of south eastern NSW are:
- Willmott Forests Forestry Operations employs 35 people and contributed $2.3 million to the community in 2003-04, as well as paying $522 000 in state and local taxes. This is equivalent to $14 914 per employee.
- In its timber Processing Operations, Willmott Forests provides employment for over 100 people most of whom live in the Bombala LGA.
- The employment opportunities provided by Willmott Forests in the local region are significant particularly given its acquisition of the structural sawmill which was in receivership.
- The combined Forestry and Processing Operations injected a total of $8 million to the Bombala regional economy in 2003-04 alone.
- The Company has planted most of New South Wales new softwood plantations since 1999, most of which has been in the Bombala region
- The Company’s Processing Plants currently demand timber from Forests NSW. These licences avoid the need for Forests NSW to find other markets for its plantation harvests. Such alternative markets more distant from Bombala would potentially involve lower prices for products compared with that purchased by Willmott Forests.
- Willmott Forests adds to the training opportunities available to the Bombala region’s youth through the vocational forestry industry course being offered at the year 11 and 12 levels.
- The Company offers a work experience program for Bombala High School students, and is facilitating the development of ’School based Industry links’ to ensure it provides greater opportunities for those seeking employment within the industry.
- Willmott Forests is active in supporting local community initiatives through sponsorships, other funding support, and by providing a recognised bushfire brigade.
Source: Plantations, Jobs & Investment in Regional NSW. A socio-economic analysis of private forestry in the Bombala region (pdf)
Oberon - In total, the forestry industry contributed $357 million to output and $137 million to Oberon’s gross regional product (GRP) in the 2003-04 financial year. This is equivalent to 59% of GRP in the region and clearly indicates that the forestry industry is the backbone of the Oberon economy.
- Forestry activities in the Oberon region also play a significant role in the Central Tablelands and New South Wales economies respectively accounting for 5.8% and 0.1% of GRP and gross state product (GSP).
- Most forestry activity in the Central Tablelands occurs in the Oberon Shire; however there are a number of other smaller operations that also make a significant contribution to the Central Tablelands economy. In total, the forestry industry contributes around $525 million in output, $226 million in GRP, $91 million in household income and almost 2,000 full-time equivalent jobs, to the Central Tablelands region.
