The forestry industry in Australia is facing a critical challenge as 'cheap' timber imports threaten jobs and local production. The South Australian Forest Products Association (SAFPA) has raised the alarm, warning that imported timber products are flooding the market and displacing locally sourced materials. This issue is exacerbated by international trade conditions, driven by US tariffs, which make imported timber significantly cheaper, around half the price of local timber.
One of the main concerns is laminated veneer lumber (LVL), a construction product that competes directly with locally grown radiata pine. The demand for timber is being increasingly met by these imports, leaving local producers struggling to compete. Analysis from Forest and Wood Products Australia reveals a 63% increase in LVL imports in 2025 compared to the previous year, with prices as low as $404 per cubic meter, a 56% decrease from the previous year.
SAFPA's CEO, Nathan Paine, emphasizes that this downturn is not just cyclical but also due to the loss of market share to steel and imported products. He warns that the domestic manufacturing industry in the timber sector is under threat, which could have severe consequences during future economic downturns, such as the COVID-19 pandemic. The pandemic highlighted the importance of maintaining domestic processing capacity to ensure Australia's self-sufficiency in timber production.
To address these concerns, SAFPA has called for government commitments to prioritize local timber usage in the lead-up to the March state election. Clare Scriven, the Primary Industries Minister, acknowledges the state government's past support for the timber industry and emphasizes the sustainability and quality of South Australian timber products, encouraging consumers to choose locally sourced materials.
However, the housing industry also plays a role in this complex issue. Housing Industry Australia's CEO, Simon Croft, notes that the pandemic's trade disruptions caused a spike in construction costs, including timber. As international supply chains have stabilized, price increases have moderated, allowing builders to enter into more fixed-price contracts. While the sector supports local timber, it also calls for improvements in the domestic supply chain to boost confidence among builders.
The industry's long-term vision involves securing a sovereign supply chain for key materials, including timber, bricks, and concrete, to meet housing demands and population growth projections up to 2050. This approach aims to ensure a stable and reliable supply of essential building materials, reducing the vulnerability of the industry to external economic shocks.
