The Australian forestry industry is sounding a dire warning: cheap imported timber is flooding the market, threatening local jobs and the very future of domestic manufacturing. This isn't just about numbers on a balance sheet; it's about livelihoods, communities, and our ability to build a sustainable future.
But here's where it gets controversial: while consumers might rejoice at lower prices, the South Australian Forest Products Association (SAFPA) argues these imports, fueled by US tariffs and global trade dynamics, are selling for nearly half the price of locally sourced timber. This price disparity, they claim, is unsustainable and puts Australian producers at a severe disadvantage. Take laminated veneer lumber (LVL), for instance. This imported construction material directly competes with locally grown radiata pine, and its influx has been staggering. Analysis from Forest and Wood Products Australia reveals a 63% surge in LVL imports in 2025 compared to the previous year, with prices plummeting by 56%.
"We're being undercut at every turn," laments SAFPA chief executive Nathan Paine. "In this cutthroat competition, we simply can't keep up."
And this is the part most people miss: the current crisis isn't just another cyclical downturn in the industry. Paine emphasizes that the forestry sector is facing a perfect storm: losing market share not only to cheap imports but also to alternative materials like steel. This double whammy, he warns, will have devastating consequences for domestic timber manufacturing.
The COVID-19 pandemic exposed the fragility of relying heavily on imports. Trade disruptions and skyrocketing demand led to a timber shortage in Australia, highlighting the need for a robust domestic supply chain. Paine argues that while cheap imports might seem appealing now, they jeopardize our ability to weather future crises. "If we lose our domestic manufacturing capacity," he cautions, "we'll be left vulnerable when the next pandemic or global disruption hits."
As the South Australian state election looms, SAFPA is urging the government to prioritize local timber procurement. Primary Industries Minister Clare Scriven acknowledges the industry's plight, highlighting the superior quality and sustainability of South Australian timber. "Our products are second to none," she asserts, urging consumers to make informed choices.
The housing industry, while supportive of local timber, calls for a stronger domestic supply chain. Simon Croft, chief executive of industry and policy at Housing Industry Australia, emphasizes the need for long-term planning. "We need to look beyond five-year housing targets," he says. "We must ensure a secure, sovereign supply chain for key materials like timber, bricks, and concrete, considering our population growth projections until 2050 and beyond."
Australia, a net importer of timber with annual imports reaching $7 billion, faces a critical juncture. The choice isn't merely between cheap imports and local products; it's about safeguarding jobs, building a resilient economy, and ensuring a sustainable future for generations to come. Is the short-term gain of cheaper timber worth the long-term risk of losing our domestic forestry industry? The debate is open, and the consequences are far-reaching. What do you think? Should governments prioritize local timber procurement, even if it means higher prices? Let us know in the comments below.
