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Forestry Facts: An Overview

Statistics

Old Growth Forests

Biodiversity

Bushfires

Australia's changing forests

Native forests

Forests and the Economy

Eucalypt (Hardwood) Plantations

Pine (Softwood) Plantations

Multiple use forests

Woodchips

Pulp and Paper

Regrowth forests

The World's Rainforests

The Greenhouse Effect

Glossary of Terms

Timber construction in bushfire areas

Pulp and Paper

Countries with high standards of living are large consumers of paper products. Australia consumed 3.6 million tonnes of paper products in 2000-01 - about 180 kg per person. Per person consumption of paper products in Australia is similar to consumption in the United Kingdom but substantially lower than in more highly industrialised countries such as Germany, Japan, Sweden and the United States, which are major producers and exporters of manufactured goods.

On a global scale, continued population and economic growth is expected to lead to greatly increased demand for paper products. Between 1990 and 1995 paper consumption increased by 13.6% a year in countries that are members of the Association of South East Asian Nations (ASEAN). In Australia, despite the rapid development of electronic communication systems, the continued growth of the economy is expected to increase the demand for paper products, with printing and writing papers showing the strongest growth.


Manufacturing Processes

Most paper is made from either new (virgin) or recycled wood fibre. Other plant fibres such as sugar cane (bagasse), straw and hemp are used but account for only a small proportion of total paper production.

A number of pulping processes can be used to separate wood fibres so that they can be manufactured into paper. Different types of paper require pulps with different characteristics and so the pulping processes used depend on the type of paper to be produced. The processes can be broadly classified as either mechanical or chemical.

Mechanical pulping processes separate the fibres by mechanical pressure. These processes, which use relatively large amounts of energy, produce high yields of relatively low quality pulp suitable for newsprint and packaging papers where high tearing strength is not required.

Chemical pulping processes separate the fibres by dissolving lignin that binds the fibres together and stiffens the fibre walls. These processes which require expensive effluent disposal and chemical recovery systems, produce low yields of relatively high quality pulp suitable for printing and writing papers and grades of paper where high tearing strength is required.

Paper made from either mechanical and chemical pulp can be recycled. Recycling does not change the intrinsic fibre properties but individual fibres deteriorate with reuse and consequently there is a limit to the number of times they can be recycled. Most recycled fibre is either mixed with virgin fibre or used for packaging grades of paper.

Domestic Supplies

Australian producers supply about two-thirds of the volume of paper products consumed in Australia. The balance is imported. Exports are only a small proportion of total production.

Apparent Consumption of Paper in Australia ('000 tonnes)

Product Source Financial Year
96-97 97-98 98-99 99-00 00-01
Newsprint Production 421 444 404 404 396
Imports 250 290 275 293 284
Exports 1 18 13 2 0
App. Cons. 670 716 666 695 680
Printing and Writing Production 364 424 497 558 586
Imports 625 741 718 839 760
Exports 35 47 59 97 83
App. Cons. 955 954 1156 1300 1263
Tissues Production 181 191 208 196 202
Imports 24 32 40 54 55
Exports 15 15 15 23 3
App. Cons. 190 208 233 226 218
Packaging and Industrial Production 1452 1483 1431 1491 1472
Imports 237 255 264 325 311
Exports 368 357 289 384 319
App. Cons. 1320 1381 1406 1433 1464
Total App. Cons 3135 3259 3461 3654 3625


PPMFA 2001, Canberra (see www.ppmfa.com.au )


Six companies produce virtually all the paper products manufactured in Australia. They are:-
  • Australian Paper (a business entity owned by Paperlinx Limited), - communications papers and packaging papers;

  • Amcor Limited - packaging;

  • Norske Skog Paper Mills (Australia) Limited, - newsprint and related grades;

  • Carter Holt Harvey Tissue Australia Limited - tissues

  • Kimberly-Clark Australia - tissues and

  • Visy Paper Pty Ltd - packaging.


  • It is estimated that, of the raw materials used by Australia's pulp and paper industry in 2000-01, 57% was recycled fibre, with the remaining 43% being virgin fibre and additives. About 75% of the virgin fibre used is produced in Australia while the balance is imported.

    The major companies manufacturing newsprint, packaging and industrial papers and printing and writing papers have their own wastepaper collection arrangements and are committed to increasing the use of recycled fibre, which is already high by world standards.

    Recycled fibre accounts for about 90% of the raw material used for manufacturing packaging and industrial papers in Australia. The corresponding proportions used for manufacturing newsprint, printing and writing papers and tissues are 22%, 5% and 9% respectively.

    The Australian pulp and paper industry sources its wood requirements from both public and private regrowth native forests and plantations and uses substantial quantities of sawmill residue. A large proportion of the pulpwood from private land comes from plantations established by the pulp and paper companies.

    Wood Resource Usage in 1998 - 99 ('000 tonnes)

    Public Forest
    Pulpwood
    Private Forest
    Pulpwood
    Sawmill Residues Total
    Softwood 577 967 329 1873
    Hardwood 683 253 120 1038
    Total 1260 1202 449 2911



    Source: Pulp and Paper Manufacturers Federation of Australia (2001).


    Trade
    The significance of imports of paper products in the domestic market varies from around 15% for tissues and for packaging and industrial papers to about 35% for newsprint and nearly 70% for printing and writing papers. In terms of value, printing and writing papers account for about 55% of Australia's paper imports. New Zealand, Finland, the United States and Germany are the major sources of paper imports.

    Trade in Paper Products ($ millions)
    Product Category Financial Year
    1996-97 1997-98 1998-99 1999-00 2000-01
    Newsprint Imports 216.8 238.8 239.3 257.9 277.5
    Exports 0.1 7.7 6.9 1.6 2.6
    Printing Imports 769.1 966.9 993.1 1139.8 1180.7
    Exports 55.2 64.3 80.7 120.4 144.6
    Tissues Imports 37.7 52.7 65.4 89.2 94.7
    Exports 58.8 63.6 59.7 80.1 80.4
    Packaging Imports 356.8 438.3 458.1 510.8 535.1
    Exports 235.9 239.7 211.6 287.5 298.8


    Source: ABARE 2001, Australian Forest and Wood Product Statistics, Canberra, March and June quarters and previous issues


    Australia also imports and exports wood pulp, waste paper and manufactured paper products. The total value of imports and exports of pulp, paper and paperboard, waste paper and manufactured paper products in 2000-01 was $2792 million and $654 million respectively, leaving a trade deficit of $2138 million (ABARE 2001).

    Australia has sufficient fibre resources to become a net exporter of pulp, paper and paper products as it exported about 10 million tonnes of green hardwood and softwood woodchips each year with a value of about $745 million in 2000-01. However, substantial new investment in expanding Australia's manufacturing capacity is required to realise the pulp and paper industry's full potential.

    One of the challenges facing both industry and government is to improve the competitiveness of Australia's pulp and paper industry in order to replace imports and take advantage of export opportunities. Failure to address this challenge will ensure that Australia remains in the unusual position of having a large trade deficit in forest products and a unit value of imports that significantly exceeds the unit value of exports.

    References

    ABARE 2001, Australian Forest and Wood Products Statistics, Canberra, March and June quarters.

    Pulp and Paper Manufacturers Federation of Australia 2001.

    For Further Information

    For further information about the pulp and paper industry in Australia you can contact:
    Pulp and Paper Manufacturers Federation of Australia
    PO Box 3121
    Manuka ACT 2603
    Phone: 02 6295 7312
    Fax: 02 6295 9484
    www.ppmfa.com.au

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