Sustainable Timber Tasmania to sign new forestry contracts

Logs sourced from Tasmania’s public production forests will have to be processed in the state under new long-term wood supply arrangements.

The new contracts follow allegations that Tasmanian trees were sent to Victoria for processing at sawmills in that state which had received compensation payouts.

Victoria phased out native forest logging in 2024.

Sustainable Timber Tasmania (SST)said it supplies native sawlogs under contract to sawmillers that operate processing facilities in Tasmania.

“Our current contracts do not place explicit requirements on where products or logs may be processed, sold, or transported,” SST said.

STT CEO Dean Kearney said the new arrangements support the future evolution of Tasmania’s wood supply mix and continued investment in local processing. 

“The future of Tasmania’s wood supply is increasingly about the right mix of plantation and native forest resources, backed by local processing, local investment and long-term certainty for industry,” he said. 

“Tasmania’s sawmilling sector is continuing to invest in new technology, new products and expanded processing capability. These contract changes recognise that investment and support the continued growth of local processing and value-adding.” 

Mr Kearney said the new on-island processing requirements are intended to support local jobs, encourage further investment and ensure more of the value generated from Tasmania’s public forest resource remains within the state. 

“Our responsibility is to manage Tasmania’s public forest resource for the benefit of Tasmania,” he said.

“By strengthening on-island processing, we can support local businesses, local jobs and the next generation of investment in Tasmania’s wood processing sector.”

The new contracts will last until 2040 and replace existing agreements due to expire in 2027.