The report, Australian Forest and Wood Products Statistics, was released today by Phillip Glyde, Executive Director of ABARE.

Australian forest product exports increased by $212 million, or 10 per cent, in 2006-07, with an 11 per cent rise in the volume of woodchip exports and a 42 per cent increase in sawnwood exports.

"The $212 million increase in exports was driven mostly by an extra $116 million of woodchips going to Japan," Mr Glyde explained.

"Roundwood exports to the Republic of Korea also increased by $26.5 million and approximately $20 million of additional sawnwood went to China and Viet Nam combined."

This export growth cushioned Australia's forestry industry against the effects of the weak housing sector. 

"This is a good result during a period of reduced domestic demand. The sawnwood sector appears to be in good shape, when we consider that housing starts in Australia appear to again be on the increase, as indicated by strong increases in Queensland," Mr Glyde said.

Mr Glyde also noted the ongoing shift in the Australian forest industry away from native forests toward more intensively managed forest plantations.

"The volume of logs harvested from hardwood plantation forests increased by almost 7 per cent over the year, while softwood plantation logs also increased slightly. In contrast, there was a fall in the volume of logs harvested from native forests of nearly 1 per cent," Mr Glyde said.

Hardwood plantation logs have increased from 2 per cent of the total volume of hardwood logs harvested in 1996-97 to 32 per cent in 2006-07.

 "We expect this ongoing trend of structural change within Australia's forestry industry to continue in coming years as many of these hardwood plantations reach maturity," Mr Glyde concluded.