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Business

Forestry industry says China log exports remain in limbo with no end in sight to trade dispute

China's ban on the importation of round logs from Australia remains in place. (Supplied: Joy Smith)

Australia's forestry sector claims there are no signs of any movement by Chinese officials to end the ongoing log trade deadlock.

China suspended imports of all timber logs late last year amid escalating trade tensions.

While round logs are still being exported to some countries from deep-sea ports, the multi-million-dollar log trade to China remains in limbo.

Australian Forest Products Association chief executive Ross Hampton said there had been "no movement" since China banned imports of round logs from Australia.

"The Chinese government has said that there wouldn't be any timber accepted, or round logs (as they call them in the trade) out of any part of Australia," Mr Hampton said.

"So, we don't have to get any further update on that situation."

Logs waiting to be exported at the Port of Portland. (Supplied: Joy Smith)

Potential for onshore wood fibre processing

While the industry was enjoying record demand for structural timber due to the housing construction boom, he said China's import log ban was impacting export markets for non-structural timber and wood fibre.

Given the ongoing uncertainty, he said greater domestic processing was needed.

He said all wood fibre needed to find a processing home, whether it was for bioenergy, the production of panels, chipboard or pulp and paper.

Tonnes of logs sit on the wharf for export at the Port of Portland.  (Supplied: Joy Smith)

"We should be using as much of this material in Australia and producing Australian jobs as possible," Mr Hampton said.

"We have a $2-billion trade deficit in timber products each year.

No logs to China

Port of Portland chief executive officer Greg Tremewen said the status quo remained.

"There are no changes at this end regarding logs to China," Mr Tremewen said.

Engaging with China about timber exports is "a matter of priority", the Port of Portland CEO says. (Supplied: Joy Smith)

The Federal Assistant Minister for Forestry and Fisheries Senator Jonathon Duniam said the government was "continuing to engage with Chinese authorities as a matter of priority".

"We are working with industry to ensure all relevant biosecurity requirements are being met," he said.

"The Government's $72.7-million Agri-Business Expansion Initiative (ABEI) is helping Australian agribusinesses diversify their exports, with new one-on-one exporter support services, greater access to market intelligence and matched grants for industry associations and government to work together on market expansion."

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