Pallet shortage prompts calls for government action to shore up timber supply
By Leon Georgiou
A shortage of timber pallets this Christmas could cause supply chain disruptions.(Supplied: Reuters)
The Australian consumer goods supply chain is again experiencing a shortage of timber pallets, with industry experts saying the problem will only get worse.
Key points:
- Australia’s consumer goods supply chain is reporting a shortage of timber pallets
- Industry experts say there needs to be an expansion of forestry plantations now to meet future needs
- The shortage is expected to become critical in the future
South Australian Forest Products Association chief executive Nathan Paine said the shortage demonstrated the need for governments to work with industry to increase the supply of timber.
“A big part of this of course is Christmas,” he said.
"We’re all out there, we’re buying food for the Christmas lunch and dinner, we’re buying presents — and demand for products and the movement of products has increased as a consequence.
“Even though as an industry, we’re producing over two million pallets each year to support the movement of those food and goods — that’s just not keeping up with demand, and that shortage really is likely to have an impact on our everyday lives in the future.”
Mr Paine said the seemingly pedestrian timber pallet was critical to logistical infrastructure of the modern economy.
“A shortage of timber pallets can jeopardise the transportation of critical consumer goods, from food and pharmaceuticals, to electronics,” he said.
“All of this has to be moved around the country and if you don’t have those pallets, then the ability to move those goods and produce them is a lot harder.”
More issues ‘unless we plant more trees’
Mount Gambier based sawmill N.F. McDonnell & Sons supplies timber to pallet manufacturers.
The mill’s chief executive Craig Nisbet agreed timber supply was an ongoing issue, which was likely to get worse.
But he said demand for pallets was always high over the Christmas period.
Craig Nisbet believes timber pallet shortages will become more acute in the future unless the industry plans ahead.(Supplied: N.F. McDonnell & Sons)
“It’s more a long-term issue,” he said.
"Unless we plant more trees and supply more timber, then there will be more shortages, more often, going forward.
“It’s really about future proofing and thinking about the needs of moving consumer goods in the future.”
Timber supply is an ongoing issue impacting the availability of pallets.(ABC South East SA: Leon Georgiou)
Mr Paine said the long life cycle of forestry meant that government needed to forward plan, implementing solutions for the future now.
“Realistically, to avoid these sorts of shortages in the future, we need to make sure we’re getting more trees in the ground now,” he said.
“If we don’t plant more trees now, then we can’t make sure that we have the ability to meet our future fibre needs.”