Wales as a location for world-class forest industries

 

Forestry, like other primary industries such as agriculture, is facing very difficult trading conditions with low prices for wood on world markets.  However, wood-processing industries continue to invest in Wales, and we can help increase the value of Welsh forests as a source of wood for processing, on both a large and small scale.  Some 4,200 jobs, generating £61 million of disposable income, depend on the home-grown timber industry (Welsh Forestry Multiplier Study 1999).  Many of these jobs are linked to rural areas and are significant contributors to local economies.

The same study estimated that the gross output of the Welsh forestry industry is £400 million per year.  These outputs come from the full range of industries, from large-scale international companies producing wood pulp,  paper and panel board, to small, family businesses making fencing and garden furniture.  By encouraging entrepreneurship, business collaboration and by promoting good design across all product ranges we will help create and sustain skilled woodworking jobs, and enhance the reputation of Wales for producing high-quality products using hardwood and softwood from sustainable woodlands.  Jobs are also being created as a result of the increased use of our woodlands for tourism and recreation.

Total timber production in Wales is predicted to increase substantially by the end of the next decade, as forests reach maturity.  Much of this increase will come from coniferous woodlands planted by the private sector during the 1960’s, 70’s and 80’s.  Maximising the value to the economy from these woodlands will largely depend on the efforts of wood-processors and on innovative techniques for processing this wood.  In future, we must concentrate more on improving the quality of the timber grown, through attention to species choice, thinning and other management operations.  Only by retaining a flexible resource will Welsh growers and processors compete in the future.  The key objectives are:

• To provide Welsh forest industries with effective business support;
• To develop the wood supply chain, product development and marketing;
• To provide support for farm woodlands and the wider rural economy; and
• To foster the development of renewable energy based on wood.

To provide Welsh forest industries with effective business support

The key to achieving this objective is the delivery of the National Economic Development Strategy through the Welsh Development Agency (WDA) and other partners.  Maximising the impact of EU Structural funding under Objectives 1, 2 & 3 will be important in the short-term. All forest industries, from forest nurseries, through woodland management, to harvesting, haulage and processing, at all scales, from sole traders to international companies, have a part to play in contributing to the economic wealth of the country. Each of these businesses requires different levels of support to enable them to plan their operations and develop in a sustainable way.

• We will seek to increase the competitiveness of our forest industries, working in partnership with industry to develop and implement action plans across the industry sector.
• We will develop and promote the availability of systems for business support and training.

To develop the wood-supply chain, product development and marketing

There are many benefits to the Welsh economy through direct employment and the multiplier effects from woodland work. One of the factors limiting development in this sector is lack of confidence in the wood-supply chain. There are often many different businesses involved in handling any piece of wood before it becomes a finished product.  Those businesses which form the first link in this chain, are under severe financial pressure due to the fall in timber prices during the late 1990’s. The other key factor in business success is product marketing. Wood products have to compete in an international marketplace and the special characteristics of the product or service supplied by each business is crucial for success.  

• We will continue to support industry by bringing the forecasted timber volumes to the market from National Assembly woodlands, to help provide confidence for industrial development.
• We will use marketing techniques for timber from the Assembly’s woodlands, which give long-term assurance to customers and suppliers, so that they can invest in safe and efficient modern technology and systems.
• We will work with industry representatives to support and develop businesses in the wood-supply chain, helping provide information on the quantity and quality of wood available, and encouraging the processing of Welsh-grown timber in Wales.
• We will help promote the use of wood and encourage businesses to develop local added value, and to market their products more effectively, using the clean green image of Welsh wood to present an image of sustainability.

The development of a forest industries cluster group can harness energies throughout the sector to support and develop businesses. We will work with forestry businesses to develop a similar process, and prepare an action plan for a cluster in Wales and the Welsh Marches.  Our aim is to publish an action plan by 2002.

To provide support for farm woodlands and the wider rural economy.

About a quarter of the woodland area of Wales is found on farms. These woodlands are most often native woodlands of small size, have poor access and poor timber quality, but they have high environmental values. The careful management of these woodlands as a farm resource could contribute to farm incomes and the diversification of farm enterprises as well as providing additional benefits to the landscape and environment.  Farm woodlands, together with small woodlands in other ownerships, will have a key role in rural development, which must be integrated with all the farming and rural economic and social programmes across the Assembly.  Supporting sustainable businesses in rural areas is an important objective for this strategy.

• We will work closely with the farming sector, looking to the Woodland Forum to establish a farm woodland subject group, building on the expertise developed in Wales in the late 20th century.
• We will encourage farmers to diversify their agricultural businesses through Farming Connect, providing information on woodland management, contracting, and development of small scale wood processing.
• We will help farmers make best use of farm woodland resources for livestock shelter and for timber products for on-farm use, better integrating the woodlands into the farming businesses and into the landscape.
• We will help Coed Cymru to continue delivering support to farmers, championing best practice in broadleaf woodland management and using case studies of real farms as examples for others.

To foster the development of renewable-energy based on wood.

The development of a vibrant renewable-energy sector in Wales is a key target for the National Assembly, as part of our responsibility to respond to global climate change.  Wood has a number of advantages as a fuel, particularly where such wood fuel is an additional product from the management of woodland. We believe the development of wood-fuel technologies can make an important contribution to the production of renewable energy in Wales. The development of facilities to burn wood at appropriate locations where there are constant demands for heat, such as community facilities, hospitals, or industry, can provide both power and background heating. Such combined heat and power plants will contribute to our target of maximising energy efficiency in Wales.

• We will integrate energy from wood fuel into the Assembly’s renewable-energy strategy, ensuring that it is recognised as a key fuel.

We will work with WDA and other partners to develop information and advice for Local Planning Authorities on wood-based renewable energy.

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