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State of the Environment Report 2007

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9.9 Wood production

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Description

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Wood is derived from the harvesting of trees from native forest, woodlands and plantations. Approximately 25.7 million hectares of Western Australian land is classified as forest, representing about 10% of the total land area of the State (National Forest Inventory, 2003). Forests provide a range of values and services such as ecosystem services, biodiversity conservation and social and economic values. Wood production in this report is defined as the conservation, protection, management or use of forests from which wood is harvested. Harvested wood and wood products are sold on domestic and international markets, although WA is a net importer of wood products by value. Wood that cannot be sawn for solid wood products (construction timber, furniture) may be used for reconstituted fibre products (particle board, paper), industrial firewood (charcoal for silicon manufacture), biomass for energy generation or domestic firewood.

State Government figures for 2005-06 show that the total volume of native hardwood harvested was 0.54 million cubic metres, valued at $39.5 million (Forest Products Commission, 2006). This volume represents an increase over 2004-05 of 6.4% while remaining within the limits imposed by the Forest Management Plan 2004-2013 (Conservation Commission of Western Australia, 2004), which incorporated the Government's Protecting Our Old-Growth Forests Policy.

The plantation industry has experienced considerable growth over the past decade, particularly with hardwood species planted in higher rainfall areas of the South West. In 2006, WA had the second largest plantation area of all Australian states (396 000 ha or 21%), comprising 27% softwood species and 71% hardwood species (Parsons & Gavran, 2007). Softwood species consist mostly of Pinus species (otherwise known as pine trees) and hardwood species consist mostly of Eucalyptus species (mainly blue gums). In 2005, private landholders and businesses own 72% of plantations, while government owns 20% and joint cooperative ownership represents 8% (Parsons et. al, 2006). State Government plantations produced 0.87 million cubic metres, principally of softwoods, in 2005-06 valued at $47.7 million (Forest Products Commission, 2006). Production figures from private plantations are not readily available, but in 2002 about 2.62 million cubic metres of timber was produced (Ferguson et al., 2002).

Objectives

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The State Sustainability Strategy outlines a vision for our natural resources by ensuring that they are '... conserved, protected, managed and used sustainably for the common good' (Government of Western Australia, 2003a, p. 108). The State's Forest Management Plan 2004-2013 outlines specific objectives based on the Montreal Process Criteria for sustainable forest management (Conservation Commission of Western Australia, 2004). Most objectives have been derived using this plan:

Headline indicators

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Indicator TS22: Per cent of South West native forest available for wood production.

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This indicator reflects the relative value the community places on wood production in the State's South West native forests. About 55% (1 041 830 ha) of South West native forests vested in the Conservation Commission is in formal conservation reserves (current and proposed) or informal reserves that are established under the Forest Management Plan 2004-2013. In 2004, 45% of native forest vested in the Conservation Commission was available for wood production (848 380 ha). Changes over time reflect the value that the State Government and the community place on native forests. The data for this indicator are limited to the area covered by the Forest Management Plan from Lancelin to Denmark.

Indicator TS23: Average per cent of jarrah and karri sawlogs harvested compared to sustainable yield.

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Jarrah and karri are the two major timber species harvested in native forests in WA. This indicator represents an average of the volume of jarrah and karri sawlogs harvested compared to sustainable yield levels. This reflects the compliance of the wood production sector in relation to established harvest limits. Figures exceeding 100% may indicate unsustainable levels of harvesting. However, because levels of harvest can be averaged over the 10-year life of the Forest Management Plan 2004-2013, small overcuts can be balanced by undercuts over this period. The lower percentages between 2001 and 2004 reflect the government negotiating lower harvest levels than provided for in the Forest Management Plan 1994-2003 (Conservation Commission, 2004) following introduction of its Protecting Our Old-Growth Forests Policy (Australian Labor Party Western Australian Branch, 2001) and do not represent undercutting.

Status

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Use of wood resources

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The principle of sustainability is contained in the relevant Acts relevant to the Forest Products Commission (the State Government's wood trading enterprise) and the Department of Environment and Conservation (the State Government's forest management agency). Sustainability is also an important management objective of private enterprises in the wood production sector.

Since 1970, the area of native forest in the South West available for timber production has decreased by about 50% (Figure TS9.1). This decrease represents a gradual shift in State Government policy brought about by the increasing value the community has placed on native forests for uses other than timber production, which has increased the amount of native forest placed in reserves where wood production is not a permitted use.

The level of harvest in native forests is determined by a calculated sustainable yield. Sustainable yield is the quantity of timber that can be harvested from the area of forest available for timber harvesting each year, which can be continued indefinitely with minimal long-term environmental impact. The timber resource in native forest available for timber harvesting is measured using inventory plots to determine the quantity of timber available and the rate at which it is growing.

Figure TS9.1: Trends in the area of jarrah and karri available for timber harvesting, 1970–2005. [Data source: Department of Conservation and Land Management.]

Figure TS9.1: Trends in the area of jarrah and karri available for timber harvesting, 1970-2005.
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Data source: Department of Conservation and Land Management.

Figure TS9.2: Jarrah sawlog timber harvested relative to agreed limits. [Data source: Forest Products Commission. Note: 2003–04 limits represent a transition from previous limits established under regional forest agreements to current limits established under the Forest Management Plan 2004–2013.]

Figure TS9.2: Jarrah sawlog timber harvested relative to agreed limits.
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Data source: Forest Products Commission. Note: 2003-04 limits represent a transition from previous limits established under regional forest agreements to current limits established under the Forest Management Plan 2004-2013.

Figure TS9.3: Karri sawlog timber harvested relative to agreed limits. [Data source: Forest Products Commission. Note: 2003–04 limits represent a transition from previous limits established under regional forest agreements to current limits established under the Forest Management Plan 2004–2013.]

Figure TS9.3: Karri sawlog timber harvested relative to agreed limits.
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Data source: Forest Products Commission. Note: 2003-04 limits represent a transition from previous limits established under regional forest agreements to current limits established under the Forest Management Plan 2004-2013.

A review of the sustainable yield limits was undertaken for the development of the Forest Management Plan 2004-2013, which began on 1 January 2004. This resulted in a reduction of the sustainable yield limit for sawlogs because of large increases in conservation reserves and more conservative forest management practices. Sustainable yields for jarrah and karri sawlogs were lowered, representing a 63% and 64% reduction from pre-2004 levels established by Regional Forest Agreements (Figures TS9.2 & TS9.3 ).

In 2005-06, actual harvested volumes of jarrah and karri sawlogs were 104% and 98% of sustainable yield levels respectively (Figures TS9.2 & TS9.3). Although the jarrah harvest exceeded the sustainable yield levels in 2005-06, the Forest Management Plan allows for the annual harvested volume to be averaged over three years and then compared to the sustainable yield limit. Marri sawlogs remain largely unused, with actual harvest levels at about 8% of the sustainable yield limit for bole logs in 2005-06.

Progress has been made with value-adding (improving the end uses of timber) in the past 15 years, with 60% to 70% of the sawmill output of native forest timbers now being used for flooring, joinery and furniture (Government of Western Australia & Forest Products Commission Western Australia, 2004). There is also pressure on sawmills to improve milling yields from higher value and scarce sawlogs and to effectively use logs that could not be previously used for sawmilling. Further improvements in native timber utilisation also need to occur with machine harvesting.

Sandalwood is a small tree that grows in the WA Southern Rangelands. This parasitic plant uses Acacia and other plants as a host. It is harvested for its wood and aromatic oils. In recent years sandalwood harvesting has been below the allowable harvest, and is current  (Figure TS9.4). It is worth noting that allowable yield limits are used, as sustainable yields limits for sandalwood have not yet been determined.

Figure TS9.4: Harvest of sandalwood from Crown land compared to allowable yield limits. [Data source: Forest Products Commission.]

Figure TS9.4: Harvest of sandalwood from Crown land compared to allowable yield limits.
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Data source: Forest Products Commission.

The plantation component of the timber industry has an increasingly important role to play in WA. Plantations have the potential to generate wood products to compensate for reduced harvesting from native forests, although recent growth in the area of plantations is mainly aimed at producing pulpwood rather than sawlogs. Plantations are strategically important resources, acting as sinks for greenhouse gases (storing carbon) and helping to remedy salinisation, erosion and other land degradation issues. If planted with appropriate species, plantations can help restore biodiversity values. Some plantation species also show potential for future bio-energy production.

In 2006, WA had the second largest plantation area of all Australian states (21%) of 389 000 ha, comprising 27% softwood species and 73% hardwood species (Figure TS9.5) (Parsons & Gavran, 2007). In terms of annual volume harvested, output from plantations is much larger than from native forests, and is likely to continue to increase over the coming decades. Compared to the combined jarrah/karri harvest from native forests of about 0.5 million cubic metres:

The majority of plantation wood is used for relatively low value products, with about 27% of current production being sawlog material (Ferguson et al., 2002). This proportion will reduce significantly as production of hardwood pulpwood increases. The potential exists for plantation timbers to be used for high-value end uses as alternatives to native forest timbers. However, this is dependent on changing plantation management intent and techniques that may affect profitability.

Figure TS9.5: Total area of Western Australian plantations, 1995–2006. [Data source: National Plantation Inventory (2000), Parsons and Gavran (2007).]

Figure TS9.5: Total area of Western Australian plantations, 1995-2006.
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Data source: National Plantation Inventory (2000), Parsons and Gavran (2007).

Protection of wood resources

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Protection of forest resources is aimed at controlling and reducing the risks such as fire, pests and disease that may impact wood production. Protection of soil, water and vegetation also plays an important role in biodiversity conservation, the provision of ecosystem services and protection of catchment water supplies. Much of the information about native forest condition and relevant threats can be found elsewhere in this report (see 'Loss or degradation of native vegetation').

Protection of forest and its associated values also depends upon successful regeneration following harvesting. In 2005, some 6220 ha of forest were harvested for regeneration and 4920 ha were treated to achieve regeneration. In 2005, some 460 ha of karri forest was clear felled or partially cut, and 1070 ha were thinned. Regeneration was completed for 740 ha of karri forest. Improvements in sandalwood regeneration have been made in recent years by mimicking the natural seed distribution behaviour of woylies. However, feral goat grazing is likely to be limiting sandalwood regrowth in some rangeland areas.

Management of wood resources

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The Forest Management Plan 2004-2013 has used the Montreal Criteria to provide a framework for setting the objectives and actions for the sustainable management of native forests in the South West (Conservation Commission of Western Australia, 2004). The Forest Products Commission has been operating with environmental management system accreditation (ISO 14001) for five years, and the Department of Environment and Conservation will be developing an environmental management system. Private companies involved with native forest harvesting must also follow a contractors timber harvesting manual, which outlines required practice.

Forest owners or managers can apply for certification against a sustainability standard, such as the Australian Forestry Standard or the Forest Stewardship Council. Currently two WA businesses have been certified under the Australian Forestry Standard, and six businesses are operating in WA with certification under the Forest Stewardship Council. Private plantations are usually required to develop a management plan. These plans are framed to address the principles, goals and guidelines documented in the Code of Practice for Timber Plantations in WA.

Conservation of forests

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About 15% of native forest statewide (3.8 million ha) is within formal conservation reserves, with another 37% (9.4 million ha) occurring on other Crown land (National Forest Inventory, 2003).

In the South West area covered by the Forest Management Plan 2004-2013, about 30% of the original extent of native forests (pre-European settlement) is within the State's conservation reserve system (Table TS9.1).

Concerns about the sustainable management and conservation of South West native forests were reflected in the State Government's Protecting Our Old-Growth Forests Policy (Australian Labor Party Western Australian Branch, 2001). The Forest Management Plan 2004-2013 incorporated the relevant components of the policy, which resulted in considerable conversion of State forest to national parks and nature reserves (about 700 000 ha). Many of the new reserves were formally established through three reserve Acts that passed through Parliament in 2004.

Table TS9.1: Representation of native forest ecosystems in conservation reserves covered by the Forest Management Plan 2004-2013.
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Data source: Conservation Commission of Western Australia (2004).

Pressures

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Economic conditions

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The significant reduction in the size of the native forest harvest and the increased complexity of management has created challenges to the ongoing economic viability of this component of the timber industry and thus its capacity to achieve best practice environmental management. While demand for plantation timber is expected to grow, market changes can threaten the industry's economic viability. Diversification of wood products is likely to be an increasingly important strategy to deal with this. The rapid growth of the plantation industry in recent years owes much to a booming house construction industry, improved tax incentives for investment and declining terms of trade for agricultural commodities. A reversal of these conditions could threaten future plantation expansion.

Weeds, pests and diseases

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A major threat to the South West jarrah forests is the plant pathogen, Phytophthora cinnamomi, which causes the disease known as Phytophthora dieback. P. cinnamomi will affect the health, productivity and regeneration of native forest and plantations, thereby reducing productive capacity and ecosystem health. Hygiene management plans are prepared and implemented to minimise the risk of spreading the pathogen. Despite this, modelling by the Department of Environment and Conservation estimates that the percentage of the forest area infested by the pathogen will increase from 14% in 2001 to 34% by 2061. There are also a number of chronic or periodic crown dieback syndromes that affect tree species such as tuart, wandoo and flooded gum. Species of Armillaria are also known to cause root rot and subsequent losses of timber in native forest and plantations. A variety of insect pests including beetles, weevils, moths and locusts, can cause damage to plantations when infestations occur. Many types of weeds also have the potential to affect the growth of young plantations and affect forest values in surrounding lands. Control of wildlings (wild plant species) originating from plantations is imperative to prevent uncontrolled spread to nearby native forests. Some introduced animals (e.g. foxes and cats) can affect forest regeneration by preying on native animals that have an important role in seed dispersal or pollination and others (e.g. goats, rabbits and pigs) can affect regeneration through soil disturbance and overgrazing of young plants.

Fire

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Fire is necessary for the regeneration of native vegetation and release of nutrients for plant growth. Some fires may have significant impacts on forest ecosystems, depending on their intensity, frequency and the burn season. Prescribed burning of native forests has been employed as a management activity over the past 80 years to reduce fire fuel loads, minimise the risk of high intensity fires and prevent the loss of lives and property. However, uncontrolled fires, unmanaged burning practices or inappropriate fire regimes can be detrimental to native forests and plantations (Conservation Commission of Western Australia, 2004).

Climate change

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A projected rise in temperature across the State of several degrees Centigrade is likely in this century in line with global projections. This is expected to be accompanied by a further significant decrease in rainfall across the South West. The actual outcomes are dependent on global action on limiting greenhouse gas emissions over coming decades and these cannot be predicted (Indian Ocean Climate Initiative, 2005b). In the medium term, some models predict small to moderate increases in forest growth where rainfall remains stable, due to increased temperatures and carbon dioxide levels. Under drier conditions, forest productivity may be detrimentally impacted, including increased fire and disease risks (Allen Consulting Group, 2005).

Community acceptance of plantation industry

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While the plantation industry offers a sustainable approach to wood production in WA, there remains a negative perception of the plantation industry by some in the community. These concerns include the loss of prime agricultural land to plantations, increased fire risk and water consumption, increased nutrient and chemical runoff, and questions of ongoing social and economic support for the local community.

Competition with other natural resource sectors

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Mining for minerals such as bauxite and coal results in the clearing of some forest areas. While mining is generally a short-term activity (less than five years), it takes considerably longer for the forest to be rehabilitated to a productive state. Water supply catchments in the South West are generally located within native forest. However, during droughts there is increased water uptake by plants and reduced runoff into dams. This is compounded by a growing demand for water from an expanding population and further pressure for increased environmental water provisions. Increasing water demand and a drying climate has increased the pressure for thinning and more frequent burning of forested catchments in order to deliver increased streamflow or groundwater recharge (e.g. forest thinning in the Wungong catchment and Gnangara Mound).

Lack of strategic direction for the plantations industry

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At the national level, the National Forest Policy Statement (Commonwealth of Australia, 1995) and Plantations for Australia: The 2020 Vision provide strong direction for plantation development. However, while the State Government has promoted a vision of a dynamic and profitable plantation industry, it is perceived there has been inadequate strategic direction for the industry. Consequently, there is a lack of consistency between local governments in assessing applications for plantation developments. Lengthy delays in plantation approvals, the imposition of significant legal and other costs and the setting of unreasonable development conditions have all affected the commercial viability of plantation developments and limited the potential growth of the industry. Contradictory policies at the national, State and local government levels reinforce this lack of a consistent strategic direction. For example, strategic plans being prepared by regional natural resource management groups recognise the strong role that plantations can play in remedying land and water quality problems, but these planning processes have weak input from plantation industries. Timber industry development plans may go some way to addressing these issues.

Current responses

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Legislation: Statutory changes were made in 2000 to allow for the creation of the Forest Products Commission Western Australia and the Conservation Commission of Western Australia. The changes were required to remove potential conflicts of interest for the Department of Conservation and Land Management (now the Department of Environment and Conservation) arising from its role as an agency responsible for both conservation and timber harvesting. The amended Conservation and Land Management Act 1984 established the Conservation Commission of Western Australia and defined the principles of ecologically sustainable forest management that are also outlined in the Forest Products Act 2000.

Protecting our Old-Growth Forests Policy: The State Government implemented this policy in February 2001. It ended logging of old-growth forests in the South West of the State and made progress towards ensuring sustainable forest management.

Forest Management Plan 2004-2013: This plan was developed by the Conservation Commission of Western Australia to provide for sustainable management of South West native forests. The plan requires that Forest Products Commission and Department of Environment and Conservation operate in accordance with the management plan. The Conservation Commission also undertakes audits of the performance of both agencies against the plan.

Private forestry development committees: Five regional committees comprised of community and industry representatives are working closely with government agencies, timber industry stakeholders, small business and local farmers in developing regional plantation and farm forestry strategies.

Action plan for tree farming: This State Government program coordinates plantation production by matching tree species with soil and rainfall conditions and proximity to commercial markets. Sustainable benefits include a capacity to deliver an ongoing source of wood and wood products, combating environmental problems such as saline and waterlogged land, and providing an additional income stream for farmers.

Timber industry development plans: The Forest Products Commission has prepared several tree farming and industry development plans related to specific target regions for industry and stakeholder consultation. The plans are designed to match specific tree species to suitable soils, rainfall, infrastructure and other issues to provide a viable industry focus for each region.

Accreditation programs: The Australian Forestry Standard has been developed with support from State and Commonwealth governments in collaboration with forest organisations and other stakeholders. It provides a basis for voluntary, independent third-party certification against auditable, sustainable forest management criteria and can be used in conjunction with an environmental management system. The Forest Stewardship Council is an international non-profit organisation that supports environmentally appropriate, socially beneficial and economically viable management of the world's forests. Labelling of accredited wood products provides an incentive in the market place for good forest management.

Infinitree program: Infinitree is a tree farming marketing program for the South West that partners the Forest Products Commission with farmers and investors to create commercial tree plantations on their properties.

Fire management program: Department of Environment and Conservation has a prescribed burning program in which low and high intensity fires are used to maintain biodiversity, regenerate the forest and reduce the build up of leaves and twigs on the forest floor to avoid destructive, high intensity wildfires.

Water management in forested catchments: Wungong and Gnangara Mound catchments, where water supplies and water-dependent ecosystems are threatened by falling watertables, are undergoing thinning and plantation harvesting to maximise water recharge and streamflow.

Bioenergy production trials: Western Power, in conjunction with other stakeholders, has established an Integrated Wood Processing Plant at Narrogin. Locally planted mallees are used as the fuel for renewable energy production. The plant produces other by-products such as activated carbon and eucalyptus oil.

Implications

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Historically, native forest management has been a contentious topic in WA. Community and industry opinions have often been polarised between the view that native forests should not be harvested and the view that harvesting timber from native forests is a renewable activity that generates income and employment in the region. Government policy, implemented through the Forest Management Plan 2004-2013, aims to foster a balance of sustainable native forest uses, including biodiversity conservation, tourism and water supply. Government policy also promotes plantation development for industrial use and environmental benefits.

Unsustainable forest harvesting practices have been well documented worldwide. The major potential environmental impacts of forests policy and management practices are on conservation of biodiversity, maintenance of ecosystem health and vitality, and maintenance of soils and water resources. Policy and best practice in WA needs to continue to improve, especially in light of a growing plantation industry and the possible emergence of carbon markets.

Suggested responses

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9.33 Encourage owners and managers of native forest and plantations to adopt sustainable forest management accreditation schemes and public reporting against national and international standards.

9.34 Enhance the legal, institutional and economic framework to deliver sustainable forest management in the face of present and future challenges.

9.35 Develop a policy for greenhouse initiatives, such as efficient use of residues from harvesting native forest (minimal wastage), plantation harvesting for bioenergy and other greenhouse positive initiatives, while reducing the impact of greenhouse negative alternatives to wood products.

9.36 Research the impacts of climate change on forests to identify appropriate adaptation strategies for forest management.

9.37 Develop a strategic planning framework to provide certainty to the plantation industry and assist in maximising the social, economic and environmental benefits to the community, including taxation issues and market-based incentives (e.g. a carbon credit trading scheme).

Case Study

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The role of farm forestry in the recovery of the Denmark River

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The Denmark River was dammed in 1960-61 to supply the south coast town of Denmark with drinking water. It has the potential to become a major water supply for the growing Albany-Denmark area. However, salt levels in the river increased in the late 1960s as a result of agricultural clearing in the upper catchment. This raised concerns that the water could become too salty to be used as drinking water.

Initial attempts to reduce salinity in the late 1970s involved the State and Commonwealth governments in purchasing land and replanting trees in cleared areas. In 1996, under the Salinity Action Plan, the river was identified as a water resource recovery catchment with the objective of reducing salinity to achieve drinking water quality (500 milligrams of salt per litre) by 2020. Many State Government agencies were involved in developing and implementing a catchment management plan with farmers and the local community.

Commercial and community actions played a vital role in recovery efforts. Preparation of farm plans led to local farmers establishing plantations on land previously used for crops. These tree farms utilised more groundwater than would have been used by annual crops and pastures, thereby reducing the threat of rising saline groundwater. Eucalyptus species (primarily Tasmanian blue gums) were the primary plantation type used, as they are well-suited to the climate. The strategic value of plantations in these areas was quickly realised and rapid private investment in blue gum plantations occurred.

Between 1990 and 2002, nearly 50% of previously cleared areas in the upper Denmark River catchment had been converted to plantations. Amongst other initiatives, tree farming projects have been pivotal in helping to reverse the salinity trend in the Denmark River (Figure TS9.6). This is the first major catchment in WA where a downward trend in river salinity is being observed in response to direct on-ground works, primarily revegetation (Bari et al., 2004).

Economic and social benefits have also been realised from an expanding plantation and timber-based industry. Farms have become more diversified and local and regional economies have been strengthened. The Forest Products Commission is now working with regional natural resource management groups to focus new plantation development in lower rainfall regions of WA with a view to delivering similar benefits in other salt-affected catchments.

Figure TS9.6: Salinity levels in the Denmark River, with average and predicted forecasts under various management scenarios. [Data source: Bari et al. (2004). Note: Salinity is measured as total dissolved salts in milligrams per litre (mg/L).]

Figure TS9.6: Salinity levels in the Denmark River, with average and predicted forecasts under various management scenarios.
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Data source: Bari et al. (2004). Note: Salinity is measured as total dissolved salts in milligrams per litre (mg/L).

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