This report looks at the operational risk associated with this industry. Three types of risk are recognized in our analysis. These are: risk arising from within the industry itself (structural risk), risks arising from the expected future performance of the industry (growth risk) and risk arising from forces external to the industry (external sensitivity risk).
This industry consists of companies engaged in felling trees for logs; cutting and shaping trees for rough-hewn products such as mine timbers, posts, railway sleepers, etc; or cutting trees and scrub for firewood. Companies also gather other forest products or distil eucalyptus oil in the forest. The industry pays forestry businesses and other public and private landholders for the extraction of logs from their timber tracts and then sells these logs to saw mills for processing.
The primary activities of firms in this industry are:
- Eucalyptus oil distilling (forest)
- Firewood cutting (forest)
- Forest products gathering
- Logging (incl. poles)
- Posts shaping (forest)
- Pulpwood cutting (forest or bush)
- Rough shaping of forest timber
- Timber, mine timber, pole and railway sleeper hewing (forest)
- Tree cutting or felling
- Woodchips produced in the field