It’s that time of the year again! Time to present my annual summary of competitive blackwood log prices from the Island Specialty Timber log tenders.
https://www.islandspecialtytimbers.com.au/
Island Specialty Timbers is the only source of competitive, transparent log prices anywhere in Australia, including blackwood sawlog prices. That simple statement tells us a great deal about the dire condition of the forest industry!
The lack of commercial credibility is just one of the many challenges facing the forest industry in Australia.
IST is a business enterprise of Sustainable Timber Tasmania (STT) which sources and retails raw material of Tasmanian specialty timbers from harvest or salvage operations conducted on State owned Permanent Timber Production Zone land (PTPZl).
IST is not really a “business” just as the State forest agency Sustainable Timber Tasmania is not a business either. Logging of public native forest in Tasmania requires significant taxpayer subsidies every year.
You can read my previous annual tender summaries here:
https://blackwoodgrowers.com.au/?s=tender
IST conducted 7 tenders during the year with a total of 198 cubic metres of special species sawlog and craftwood put to public tender. Tasmania defines “special species” as any native forest timber apart from plain grain Tasmanian oak (Eucalyptus sp.).
Blackwood Results
Following two years of strong price increases for plain grain blackwood logs, this year saw a softening of markets. Maximum, minimum and average log prices all declined in 2022-23.
IST put a mere 16 plain grain blackwood logs to tender totalling 11.5 cubic metres. Three logs totalling 1.8 cubic metres were unsold at tender. Prices ranged from $150 to $800 per cubic metre with an average price of $518.
One possible explanation for the softer prices was the significant drop in log size from previous years. Smaller logs mean less sawn recovery per log volume so lower prices.
One figured grain blackwood log (1.6 cubic metres) was sold at tender for a $800/m3.
Generally ~9,000 cubic metres of blackwood is harvested annually from Tasmania’s public native forests with 99.99% being sold at heavily discounted Government prices on long term sales contracts.
The Tasmanian government dominates and deliberately undermines the blackwood log and timber market. These log tender results need to be interpreted bearing this fact in mind.
Premium plain grain sawlogs are what can be grown in blackwood plantations. The “target” sawlog in a blackwood plantation is 1.5 cubic metres in volume.
General Results
Overall a total of 198 cubic metres of special species sawlog and craftwood were put to public tender during the year. Forty five cubic metres failed to sell at tender, a significant increase over the last few years.
Apart from the June 2023 tender that contained a large volume of Huon pine material, 2022-23 continued the trend from last year of declining average prices.
Total tender revenue for 2022-23 was only $97,400 which is a significant drop from last year, and the result of the combined lower volumes and lower prices.
It’s a good thing Island Specialty Timbers is not run as a business otherwise they would be calling in the receivers. Just more taxpayer-funded welfare for the woodcraft industry.
The one positive result for the year was a record price paid for a Tasmanian special timbers log. The June 2023 tender saw a Huon pine log (66cm LED, 47cm SED, 2.4m length, 0.41 cubic metres volume) sell for $7,675 per cubic metre. This continues the trend of the past five years of ever increasing maximum prices paid for quality premium timber.
After a year 2020-21 where average log size increased, the last 2 years have seen a resumption of falling log size at the IST tenders.
Remember these IST tender sales represent tiny log volumes sold into the small southern Tasmanian market. They represent mill door prices not stumpages.
The following chart shows the volume and price summary for 64 log tenders back to 2015.
The tiny volumes and wide variability in species and quality of logs that IST put to tender makes assessing market trends over time difficult.
The following chart shows that average log size at the IST tenders continues to be very small. Extracting value out of these small logs must present quite a challenge for the buyers.
With Tasmania and New South Wales being the only States that have not committed to closing down public native forestry, the future of Island Specialty Timbers is now very much on borrowed time.
I won’t be writing these annual reports for much longer!
Tasmanian Blackwood Growers Cooperative 
In my opinion small diameter logs should not be harvested they should be left to grow over the years I have seen many logs clear falled too small in diameter to get any recovery.
Hi Bob,
Larger logs are always preferred, so long as the market is prepared to pay a higher price.
Small logs will always occur in any clearfall harvest operation, be it native forest or plantation.
Even in a selective harvest operation small logs may occur if the decision is made to transfer the growth potential of those smaller trees onto retained better quality trees.
Life is never simple or straightforward.
Cheers
Gordon