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Forestry, and associated processing, is Tasmania’s second largest economic sector in terms of both turnover and industry value adding.  The industry contributes about $1 billion each year to the Tasmanian economy.

Wood and paper product manufacturing alone accounts for over:

• 20% of total manufacturing employment;
• 25% of total manufacturing wages and salaries; and
• 24% of total industry turnover.

Tasmania’s total plantation area, at December 2004, was 225,692 hectares (151,271 hardwood and 74,420 softwood) of which around 62% is privately owned, 27% jointly managed, and 11% government owned. Forestry Tasmania is the largest manager of forest by area. Other major companies include Gunns Limited and Forest Enterprises Australia.

In 2003-04 the total Tasmanian forest fibre production was over 23% of national production, or 7.35 million cubic metres valued at $381 million. This is an increase of 65% in value since 1997-98. 27.5% by volume was from plantations, valued at $101 million. Tasmania also accounted for 16% of the national hardwood production.

The value of wood fibre based processed products is increasing in real terms. In 2002-03 the national value of production was over $18 billion. Tasmania's forests contribute significantly to national processing production, accounting for:

• 65% of national hardwood production;
• 70% of decorative veneers;
• 55% of Australian newsprint production;
• 50% of Australian-produced printing and writing paper; and
• 45% of woodchip exports.

Figures from the Australian Bureau of Statistics (ABS) show that employment in the forestry and related industry has increased from 5,500 in September 2002 to 7,700 in September 2004. In addition an estimated 1,300 people are employed through associated activities such as transport and road building.

Since 1997, around $1.4 billion has been invested in the industry ($700 million in establishing new plantations and $700 million in processing). To remain competitive in the long term, investments are targeted at activities which add value to existing native forest fibre production and an expanding plantation wood fibre resource.

The Regional Forest Agreement has boosted the industry by providing resource security. There are a number of key national and State government policy initiatives supporting the forestry sector including the National Forest Policy Statement (NFPS), the Tasmanian Regional Forest Agreements and Plantations for Australia: the 2020 Vision (2020 Vision).

In addition, the Tasmanian Government has a number of regulatory instruments supporting the forest industry such as the State Policy on the Protection of Agricultural Land 2000, and the Forest Practices Act 1985 (including the provision for Private Forest Reserves and a Forest Practices Code). See the Regulation section for more information.

All of Tasmania's public forests, and the majority of private forests, are now certified under the Australian Forestry Standard (AFS) which is a certification system for recognising environmental, economic, social and cultural forest management performance and sustainability in the forest industry. It is based on the ISO 14001: 1996 standard and the Montreal Process, and is compatible with other international certification schemes.