2020, Volume 23, Paper 17

ISSN: 2209-6612

Evaluation of the Forest Industry’s Supply Chains within the Green Triangle

Hamish Probert – Master in Global Food and Agribusiness, The University of Adelaide.

Abstract

The supply chain of the forestry industry within the Green Triangle of south-east South Australia and south-west Victoria contains two variants depending upon the plantation type – Eucalyptus globulus (Blue Gum), hardwood, or Pinus radiata (Radiata), softwood. This industry has historic ties with the Green Triangle going back to the 1870s which has seen it become one of the major forestry hubs in Australia accounting for 16 per cent of plantations nationally. Due to the early focus upon softwoods this has seen the region develop sophisticated supply chains maximising the use made of every cubic metre of wood. However, hardwoods have remained underutilised locally, being relegated to chip wood shipped out of Portland to foreign markets. The Blue Gum plantations will benefit from renewed government interest within the forestry industry by incentivising investors in the sector. To fully value add within this chain the construction of further processes is crucial. The first of three such possibilities is the establishment of a biofuel power station capable of creating renewable energy from scrap wood and bio pellets. The creation of a bio pellet factory would further value add to the region by helping to fuel the local power station along with being sold into global markets. The establishment of a pulp mill would create the capacity to fuel the Kimberly Clark mill in Millicent as well as supply the major importers of chip wood with higher valued pulp.

Key Words: Green Triangle, Eucalyptus globulus, Pinus radiata, Supply Chain

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