Economy
Chips too dear: Price blamed for slump
TASMANIAN woodchips are becoming too expensive for the Japanese paper industry to buy, Australia’s leading forest products economist has warned.
Robert Eastment, head of Hobart market intelligence company Industry Edge, said yesterday the decision by several paper companies in Japan to reduce their purchases of Tasmanian woodchips by 300,000 tonnes this year was only partially driven by green politics.
In the past three days, Forestry Tasmania, the State Government and the Forest Industries Association of Tasmania have all blamed Green party politicians and environmental groups for the downturn in Japanese woodchip orders.
State Resources Minister Bryan Green accused “extreme conservationists” of running a “deceitful and irresponsible” international campaign that was harming Tasmania’s export reputation and costing Tasmanians their jobs.
Forestry Tasmania managing director Evan Rolley said the misinformation dispensed by conservationists had harmed markets, reduced buying orders and amounted to $48 million in lost pulpwood sales.
But Mr Eastment, who writes expert economic reports on the outlook for paper, pulp and forest products for banks, investors, governments and industry, believes more factors are causing the downturn in woodchip demand.
“It used to be more about price than the quality of our woodchips and what other exporters are offering,” Mr Eastment said.
“In the past five years, the situation has turned around. Our hardwood woodchips are no longer cheap, mainly because of changes in the exchange rate.”
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