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The Forest Sector Outlook report by the Global Consulting Alliance has been released. This is a comprehensive look at today’s forest sector with a focus on countries like Australia and New Zealand among many others. Source: Timberbiz The regional market update for Australia notes these important points: The March 2026 edition of Consensus Economics predicts Australian GDP growth of 2.2% for CY2026, with growth expected to level off to 2.1% in CY2027. However, the Iran War may have upended these predictions. CPI for CY2026 is predicted to be ~3.4%/a, up from the Q4 forecast and now exceeding the upper bound of the Reserve Bank of Australia’s (RBA) target band of 2-3%/a. The RBA increased the cash rate target in early February (+25 bps), and again in March (+25 bps), to 4.10%/a. With the Iran War, CPI is expected to increase substantially above forecasts, which will likely lead to further RBA cash rate target increases. With CPI climbing and GDP potentially faltering, the RBA has real concerns that current global circumstances will lead to a period of domestic stagflation. The unemployment rate is expected to remain historically low, rising modestly from ~4.1% in CY2024 to ~4.3% in CY2026, and is expected to reach ~4.4% in CY2027. Housing approvals are expected to reach 201 000 units in CY2026, up from 192 000 units in CY2025. It is likely that the recent increase in interest rates may result in a downward revision during the year. The full impact of the recent spike in diesel prices on the Australian forestry sector remains unclear but is expected to be significant, with terminal gate prices up by ~25-40% by the end of March, reaching around 230-250+ c/L. Higher oil prices will affect the entire forest product supply chain. The longer the oil and fuel crisis continues, the more significant its impact will be on GDP, which in turn affects end-product demand, while producers will face mounting cost pressures. Australian sawlog prices are expected to rise in nominal terms in line with historical trends but remain flat in real terms. Timber demand continues to show modest signs of improvement. The spot price for generic Australian Carbon Credit Units (ACCUs) has been range-bound in 2026 so far, with analysis expecting an AUD 30-40 price range through CY2026. Trade Tree Online (TTO) Brian McClay Associates reports that bleached hardwood kraft pulp prices in China reached USD 592/ADt in February and remained broadly stable through March.   A similar list is included for New Zealand as well as other major players in the forestry industry such as China, Finland, Sweden, Russia and North America. You can download the full report here.

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The New Zealand Forest Owners Association has welcomed the signing of the New Zealand-India Free Trade Agreement, saying it marks an important step forward for forest growers, wood processors, exporters and regional communities. Source: Timberbiz New Zealand Forest Owners Association Chief Executive Elizabeth Heeg, who is in India for the signing, says it is an honour to witness the progress of an agreement with such significant potential for New Zealand forestry. “Forest growers welcome the signing of this agreement. India is a large, fast-growing economy and an increasingly important partner for New Zealand,” she said. “Wood and wood products are already New Zealand’s largest goods export to India, worth NZ$134 million in the year to June 2025, giving our sector a strong base to build from. “Improved access to the Indian market gives forest growers, wood processors and exporters greater confidence to invest, grow trade and support jobs across the forestry supply chain.” Dr Heeg says New Zealand growers have a strong relationship with India and are looking forward to building on that with sustainable timber and wood products. “This agreement is also an opportunity to deepen collaboration on research, education and forestry practice, which can deliver benefits for both countries.” Dr Heeg says the forestry sector is well placed to contribute to the wider economic gains expected from the agreement and agrees with New Zealand Minister of Trade Todd McClay who says, “Governments can provide frameworks, but it is businesses that define the character of an economic relationship. The tone set – on trust, transparency and ambition – will shape how this agreement is experienced on the ground”. Dr Heeg says better access to India supports growth from forests to ports, processing and manufacturing. “That matters for regional New Zealand, where forestry is a major employer and contributor to local economies,” she said. “Trade agreements of this scale do not come along often. The signing of the India FTA is a welcome milestone and gives New Zealand exporters a stronger footing in one of the world’s most important growth markets.” She says New Zealand benefits from a practical, broadly supported approach to trade. “We welcome the work that has gone into reaching this point and encourage Parliament to support the agreement through the next stages, so New Zealand businesses and communities can make the most of this opportunity.”

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A new Gippsland Forestry Hub report exposes the Allan Government’s ongoing failure to maintain the regions transport infrastructure, directly undermining forest fuel reduction and bushfire preparedness. Source: Timberbiz The report states key roads and bridges are not fit for purpose with imposed load limits and transport route restrictions on the deteriorating network, highlighting missed opportunities to shift freight to rail, reduce truck movements and improve road safety. The Nationals’ Melina Bath who is also Shadow Minister for Public Land Management said Labor is aware of the problem, but it’s refusing to act which is leaving communities exposed to a heightened bushfire risk. “Blocked access hurts jobs, stymies forest fuel reduction work, delays firefighting response and puts lives at risk,” said Ms Bath. “Poor maintenance and restrictive access rules on state managed roads is pushing trucks onto unsuitable local roads. “The Allan Government is failing to perform basic maintenance required for the movement of firefighting crews and equipment and support bushfire preparedness. “You cannot protect the environment and people if machinery and fire trucks cannot access the fire ground in an emergency.” The report highlights the need for state government investment in key infrastructure projects including the Traralgon Bypass and Sale Alternate Truck Route and the removal of 80km per hour speed restrictions on the Princes Freeway. Ms Bath said the Allan Government’s prolonged neglect of regional road infrastructure disadvantages motorists and puts communities and our environment at risk. “Rural and regional Victoria are 25% of the population but receives only 13% of the state’s infrastructure spending. “Well maintained roads, bridges and keeping access open matters. “Victorians deserve safe roads, effective fuel hazard management and a state government that plans and acts before disaster strikes – not after.”

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The Forest Stewardship Council Australia and New Zealand (FSC ANZ) has opened the second and final public consultation on the revised Forest Stewardship Standard for Australia. Source: Timberbiz The consultation is open from 29 April to 29 June 2026. FSC ANZ invites all stakeholders to review the draft Standard and provide feedback via the FSC Public Consultation Platform. Constructive feedback is welcomed, especially suggestions that clearly explain how specific changes can be improved. To support stakeholder understanding and encourage engagement, FSC ANZ will host an informational webinar on 3 June at 2:00-3.30 PM AEST. All stakeholders are welcome to attend and can register here. Please note the webinar will not be recorded. The Standards Development Group (SDG), the technical working group responsible for revising the Standard, considered all stakeholder feedback received in the initial consultation which closed in August 2025. Based on this feedback, the draft Standard has been updated to reflect stakeholder input. Key proposed changes include: Significant changes to the requirements for the use of highly hazardous pesticides, including a streamlining of Indicators Clarified requirements for Cultural Empathy Training Expanded scope to cover all non-timber forest products (NTFPs), with additional NTFP-specific Indicators to ensure responsible extraction.   The draft Standard will be field-tested from 19-21 May in a Victorian native forest and a Tasmanian plantation. This trial will help verify that the revised Standard requirements are practical to implement and can be effectively audited. The learnings from the forest testing, together with the feedback from the consultation, will underpin the development of the final draft of the Standard. The final draft Standard will be submitted to the FSC ANZ Board for review and approval. It will then be assessed by FSC International to ensure all required normative processes have been met and that the Standard itself includes all required elements. Hereafter, it is considered for final approval by the Policy and Standards Committee, which has delegated authority from the FSC International’s Board of Directors for decisions on FSC Forest Stewardship Standards. Any conditions for approval identified by the Committee must be addressed by the SDG before the Standard is fully approved. Please contact Stefan Jensen, Senior Policy Manager at FSC ANZ and SDG Facilitator at s.jensen@au.fsc.org for questions or comments. Take part in the consultation go to https://consultation-platform.fsc.org/en/consultations  

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The Victorian Government’s announcement last week of a $100 million commitment to replace ageing CFA tankers and pumpers was little more than a joke, according to the State Opposition. Source: Timberbiz Shadow Minister for Emergency Services Danny O’Brien said the State Government had “conveniently left out” that the $100 million will be distributed over 10 years. The Victorian State government last week announced a $365 million investment in the Country Fire Authority and forest firefighter upgrades which included $100m for new tankers and pumpers in addition to $26.2m for station builds, planning, land acquisition and upgrades at Lakes Entrance, Barongarook West, Charlton, Nar Nar Goon, Beveridge, Dereel, Mirboo North, Kingston, Woodvale and Yarrambat. On top of that a further $22.4 million will be provided for more support, training and new protective gear. “This is a joke. This funding spread over 10 years doesn’t come anywhere near what is required to adequately replace the CFA’s ageing fleet,” Mr O’Brien said. “There are at least 630 old single cab tankers in the fleet, and more than 10 per cent of tankers are more than 30 years old – this funding will not even begin to modernise the fleet. “It’s also a fraction of the $3 billion extra the government is collecting from Victorians in emergency services tax. Where is the rest of the money going?” New tankers cost $465,000 and pumpers $1 million, meaning the extra funding will only allow the CFA to replace about 21 tankers and five pumpers each year. Volunteer Fire Brigades Victoria estimates the CFA needs to replace 100 appliances each year at a cost of $60 million just to stop the age of the fleet going backwards. United Firefighters Union secretary Peter Marshall said in a statement that the funding did not go far enough. A coalition of career and volunteer firefighters are calling out the Victorian Government’s announcement of new CFA funding that falls well short of what is required to address longstanding risks across the fire services- and includes no funding for Fire Rescue Victoria’s failing fleet. “Labor cut the CFA budget for four consecutive years, and this government continues to rip off the CFA and put volunteers’ safety at risk,” Mr O’Brien said. “This petty cash announcement will leave volunteers still sitting on the back of single-cab tankers, exposed to heat, smoke and dust for many bushfire seasons to come. “Only a Nationals and Liberals Government will scrap Labor’s emergency services tax, properly fund the CFA, and respect our volunteers.”  

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