Forest Products Industry

Two research projects worth $1.43 million are building the first commercial case for native hardwood forestry at the scale between small farm woodlots and large industrial plantations. Source: Timberbiz The AFWI Centre for Climate-Smart Forestry at the University of Melbourne leads both, using existing commercial plantations in Gippsland, Victoria, as case studies. Australian Forest and Wood Innovations is investing $333,251 in the first project and $380,880 in the second, across total values of $669,635 and $762,578, with Radial Timbers and Heartwood Unlimited co-investing and supplying the working sites. The economics, ecology and social licence of medium-sized native hardwood plantations, which sit between small farm forests and large industrial estates, are not well understood. The projects measure the financial performance of current plantation management and local wood product manufacturing, quantify the natural capital the estates hold, and apply life-cycle analysis to the carbon footprint of production and processing. Victoria ended harvesting in its public native forests on 1 January 2024, and both case studies are built on plantation estates already trading in the region. The findings will inform investment decisions about medium-scale native hardwood forestry and processing infrastructure in comparable regions nationally. Jon Lambert, Managing Director of Heartwood Unlimited, said the work opened a new avenue for medium-scale private forestry. “We are delighted to be partnering in a project that is investigating a new avenue for medium-scale private forestry in Australia. This project has the potential to open many new doors via a platform of solid new data, being collected and analysed by a great team of researchers,” Lambert said in the AFWI Highlights Report 2024-2026, released in Canberra on Tuesday. Radial Timbers already runs the model the researchers will document. The company saws durable Victorian hardwoods at its mill at Yarram in South Gippsland using a radial cut that takes each log apart in wedges, cutting waste and handling the smaller diameter logs that plantations yield, and its integrated operation covers growing, milling, engineered wood manufacture and residue use. “Radial Timbers Australia is very excited to be partnering with this AFWI project as it will provide valuable, documented information on key pillars of our circular economy model which we have put into commercial practice,” Chris McEvoy, Managing Director of Radial Timbers, said. The Gippsland work sits inside a wider AFWI portfolio of 39 active projects worth more than $67.6 million at 30 June 2026, supported by a $101.5 million Commonwealth investment and hosted by the University of Tasmania. Both Gippsland projects run to February 2027.

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