Di­ver­si­fi­ca­tion cru­cial for sur­vival

Australian Forests and Timber - - IN THE NEWS -

THE CEO of New Forests, Aus­tralia’s largest forestry in­vestor, David Brand said in­creas­ing pres­sure on China’s cli­mate is a good rea­son to di­ver­sify Aus­tralia’s forestry ex­port mar­kets.

“From our per­spec­tive it does raise the ques­tion of whether we should be di­ver­si­fy­ing our mar­kets and mak­ing sure we have sev­eral mar­kets we can trade into and not be overly reliant on any one.”

Aus­tralia ex­ports 90% of its blue gums as wood chips and 23% of its pine as tim­ber.

New Forests is Aus­tralia’s largest forestry in­vest­ment com­pany, man­ag­ing al­most $3 bil­lion forestry as­sets around the world.

Mr Brand said a key com­po­nent to longevity and suc­cess for the com­pany was keep­ing abreast of con­sumer changes and be­ing adapt­able to change.

He said there were new mar­kets emerg­ing in Europe, in­clud­ing flour­ish­ing biomar­kets.

“As a man­ager you’re just con­tin­u­ously re­tar­get­ing, ask­ing what are the mar­ket trends, and where do we po­si­tion our busi­ness,”

Mr Brand said the low Aus­tralian dol­lar was also mak­ing Aus­tralia’s forestry ex­ports more com­pet­i­tive, dis­plac­ing sup­ply from North Amer­ica and coun­ter­act­ing the eco­nomic slow down in China.

“At the mo­ment it’s bal­anc­ing, so in other words, the de­mand is prob­a­bly lower but we’re get­ting more mar­ket share, so from our per­spec­tive we’re hold­ing our own,” he said.

“And as China starts to re­cover - as it in­evitably will - we ex­pect the ex­port mar­ket de­mand will in­crease again.”

■ Dr David Brand New Forests.

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