Rise in demand could leave Scots wood industry stumped

CONFOR, the Edinburgh-based trade body representing Britain's forestry industry, will be seeking an urgent meeting with the Scottish Executive after a report out today revealed that domestic wood demand could outstrip supply by as much as two million tonnes by 2016.

And the supply pipeline could start to dwindle as early as next year if all planned processing and wood energy projects go ahead.

The study was commissioned by 21 leading wood processors and woodland management companies in Scotland and the north of England to look at future supply and demand expectations.

And the study, which covered information from 60 industry participants, as well as the Forestry Commission, ConFor and the Wood Panel Industry Federation, concluded that while demand for wood was growing, future supplies may fail to keep pace.

That, it said, could lead to missed opportunities for both jobs and investment and to help tackle climate change by using wood as a sustainable energy supply.

ConFor chief executive David Crichton said: "It's now time for the UK forest industry and the Government, at all levels, to begin widespread discussion on a number of very important strategic development issues for the wood processing and wood energy sectors, and to identify the options that will bring the greatest and most sustainable long-term benefits to Scotland and northern England, and indeed the UK as a whole."

Stuart Goodall, ConFor's director of policy and research, said he'd be drafting a letter to Forestry Minister Rhona Brankin this week.

"This report shows there's robust demand for timber from Scotland and the north of England and we need to be looking at how we make the most of the opportunities this involves, both economically and environmentally."

But Mr Goodall also said that the whole industry had its part to play through initiatives such as providing better and more regular information updates, helping create better access roads to some heavily forested areas and by increasing the "thinning" of forests to provide a better short-term timber supply and help overall quality and volume growth.

The report forecasts that the potential availability of wood from Scotland and northern England will be in excess of eight million tonnes in 2007, rising to over 12 million tonnes in 2016.

However, the forecast demand in 2016 is potentially as high as 14 million tonnes.

Britain's forestry industry generates 7.2 billion a year for the economy, directly employing more than 160,000 people, including more than 19,000 in Scotland, where it is worth nearly 1bn.

Scotland's economic contribution has grown by almost 40 per cent over the past eight years as timber as a sustainable material and energy source has grown in recognition.

Alan Bloomfield, convener of the study steering group, said: "Scotland and northern England have the potential to increase the supply of wood from their forests because there are forests that are currently not sustainable and optimally managed."