An opportunity exists to grow Tasmanian Blue Gum (Eucalyptus globulus subsp. globulus) plantations with a guaranteed market for the product.
The Species
Tasmanian Blue Gum is the species selected for this project, as it is a fast-growing , high-yielding eucalypt, ideal for pulpwood production. The region has good soils, high rainfall, cool summers and mild winters. These conditions suit short rotations (9-14 years) of this species. Growth rates are generally around 18 to 25 tonne/ha/year.
The Agreement
ForestrySA has an agreement with Mitsui Bussan Woodchip Oceania Pty Ltd and Nippon Paper Resources Australia Pty Ltd (Joint Venture Partners) to promote and manage a program for the production of hardwood for export as woodchip through the Port of Portland to Nippon Paper Industries in Japan.
Under the Agreement, growers establish plantations of no less than 20 ha of E.globulus, in the Green Triangle region of South Australia and Western Victoria. The Joint Venture Partners guarantee to buy the timber and the Grower agrees to sell it.
The Management
ForestrySA manages the project.
ForestrySA’s role is to:
- provide advice to growers on establishment and management of plantations,
- provide management plans, maps and contracts, and
- monitor the growth and health of plantations.
The Market
Paper and paper products will remain indispensable commodities. With growing concern over the harvesting of native forests, pulp and paper producers are embarking on planting programs to ensure that they can secure enough raw materials for future production from sustainable sources.
It is important that investors and growers have a market for their timber when it is harvested. The Joint Venture Partners are established exporters of woodchip in the region and are able to offer attractive long-term contracts for woodchip through this project.
Further Information:
Green Triangle Treefarm Project Factsheet (pdf 546 KB)
For growers holding a Green Triangle Treefarm Project 'Grower Agreement' executed prior to 2008
Woodchip Export Prices Explained
PIRSA Forestry