Australian Timber Industry Grapples with Surging Imports and Calls for Ethical Sourcing

Australia's timber market is experiencing a significant increase in imported wood products, particularly laminated veneer lumber (LVL). This trend has sparked concerns within the domestic forestry industry regarding heightened competition and a potential loss of market share. The influx of these imports, some available at significantly lower prices than Australian-produced timber, coincides with strong consumer and industry demands for mandatory country-of-origin labeling and increased scrutiny over product traceability and ethical sourcing.

This surge in imports, some available at significantly lower prices than Australian-produced timber, coincides with strong consumer and industry calls for mandatory country-of-origin labeling and heightened scrutiny over product traceability and ethical sourcing.

Rising Import Levels and Economic Factors

Timber imports into Australia have shown a substantial increase. Data from Forest and Wood Products Australia indicates a 63 percent rise in LVL imports in 2025 compared to the previous year, with prices for these products dropping by 56 percent to approximately $404 per cubic metre.

Separately, staff from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) reported a 40 percent increase in LVL imports in the year leading up to 2023-24, reaching a volume of 167,000 cubic meters. Approximately half of this imported LVL originates from China, with Malaysia and Indonesia each contributing about 10 percent.

Nathan Paine, chief executive of the South Australian Forest Products Association (SAFPA), stated that international trade conditions, partly influenced by US tariffs, are enabling timber imports to enter Australia at roughly half the price of domestically produced timber. This includes products like LVL, which directly competes with local radiata pine.

Paine characterized this market downturn as distinct from typical industry cycles and warned that a loss of market share to imports and steel could negatively impact Australia's domestic timber manufacturing capabilities. He referenced the COVID-19 pandemic, which caused trade disruptions and timber shortages, as an example of the importance of maintaining domestic processing capacity.

Simon Croft, chief executive of industry and policy at Housing Industry Australia (HIA), noted that following the pandemic, stabilized international supply chains have contributed to moderating building material prices, including timber. Australia is a net importer of timber, with imports valued at approximately $7 billion annually against exports of about $2.8 billion.

Industry and Government Responses

The Australian forestry industry is expressing concern over the increased presence of lower-priced imported timber products in the local market. SAFPA advocates for government commitments to increase the use of local timber. South Australian Primary Industries Minister Clare Scriven affirmed the state government's support for the timber industry, emphasizing the sustainability and quality of South Australian timber products.

HIA supports the local timber industry but seeks improvements in the domestic supply chain to ensure a secure, sovereign supply of essential materials like timber for future housing demands.

Calls for Country-of-Origin Labeling

Australian consumers are increasingly demanding country-of-origin labeling on wood products. A recent survey conducted by consumer group Choice indicated that 99 percent of over 7,200 respondents desired information about the sourcing of timber products and stated this information would influence their purchasing decisions.

The Australian Forest Products Association (AFPA) supports stronger timber labeling laws. AFPA chief executive Diana Hallam stated that improved labeling would offer buyers more information and provide support for the local industry. Current regulations require importers to meet due diligence requirements against illegal logging but do not mandate retailers to provide this information to buyers.

Traceability and Ethical Sourcing Concerns

Recent federal government surveys have identified imported timber that failed traceability testing. One survey reportedly uncovered laminated veneer lumber originating from China that contained Russian timber, a product currently subject to import bans. Additionally, some imported wood products were found to be stamped with indications of meeting Australian standards, which was observed to obscure the timber's true origins.

Concerns regarding the social and environmental impacts of logging activities in sourcing regions have also been noted. Communities in areas such as Sarawak, Malaysian Borneo, where some timber is sourced, report experiencing social impacts from logging activities. While Malaysia has reduced deforestation rates and addressed illegal logging, some logging operations reportedly proceed without community consent. Indigenous communities in these areas have expressed concerns about the impact on their traditional way of life and resource gathering.