"And in addition to these economic benefits, Australia's forest industry has the capacity to deliver the environmental trifecta – natural, renewable and biodegradable products," Senator Abetz said.

Andrew Wilson, from the Department of Agriculture, Fisheries and Forestry, outlined the Australian Government"s commitment to a strong forest industry to provide valuable income and growth in rural areas and promote environmental values.

"Australia's forest industry has undergone many changes in recent years, but it remains a major employer in the Australian economy. This is set to increase with the significant level of investment in plantations that we"ve seen in recent years. We May also see markets flourish in new areas, such as carbon sequestration and options to develop partnerships with indigenous people to utilise forest resources."

Also speaking at OUTLOOK, Vince Erasmus from ITC Limited, an integrated forestry and timber processing company operating in Australia, explained that competitive pressures, industry structure and environmental sustainability were the key areas of challenge before the industry.

"But with challenges come opportunities. Australia's forest industry has an exciting future, and will continue to deliver both great benefits to the environment, as well as jobs and income to regional communities," Mr Erasmus said.

Amid these challenges, the forest industry is nevertheless experiencing significant investment and export growth, which will pave the way for a strong industry in the future, according to Mark Kelly, principal forestry consultant with URS Forestry.

"The international market is very competitive at the moment, with China"s growth driving international forest product markets," Mr Kelly said.