The Victorian Association of Forest Industries (VAFI) is the peak industry body of the native hardwood processing industry in Victoria. It was established in 1945 under the Conciliation and Arbitration Act 1904-1956 and represents its members' interests to governments, communities and markets.

VAFI is a Registered Organisation under the Workplace Relations Act 1996, governed by a member elected President, Management and Executive Committee.

VAFI's work includes:

• Representation of members interests to all levels of government, the community, other agencies and organisations
• Development of policy and industry strategy based on the Vision 2025 ; Issues management, communications and public affairs
• Advice to members on employee/ industrial relations, occupational health and safety and environmental management matters
• Formation and maintenance of major collaborations and partnerships for continuous industry improvement
• Research, analysis and advocacy of key industry and related issues

Organisation Structure

Funding

VAFI's funding in 2006/07 was derived from:

• membership fees
• rent from property
• grants for project work.

All income is used for the work of the Association.

President's Message

Forest Industries in Victoria have changed dramatically over the past 30 years. VAFI welcomes that change. We have made progress towards sustainability both within the industry as well as advancing the industry's contribution to overall sustainability for Victoria's future.

In 1975 we had more than 270 sawmills processing native timber. In 2005 there are 75. There are many reasons for this decline in numbers. By 2004/05 10% of Victoria's 6.6 million ha of public forests (0.65 million ha) are available and appropriate for harvesting. Only 0.14% of this is harvested each year. The remaining 90% of public forests are in parks or are not suitable for commercial forestry.

This contrasts sharply with the 0.276 million ha which were dedicated to National Parks in the late 1970's. As a second generation sawmiller and plantation owner, I have been part of these changes, especially since 1987 when the Timber Industry Strategy was introduced by Joan Kirner, then Minister for Conservation, Forests and Land. The industry has modernised, rationalised and innovated, increased investments and added value to its processes and products. Changes in Forest Management and the industry have been made, as awareness of environmental issues, here and around the world, has grown.

They have made life very challenging for many family companies and regional communities. Outside the industry much of this process has gone unnoticed. Most Victorians are not aware of the stringent codes and scrutiny that now ensure production forests are managed and harvested well.

2004/05 was a big year for our industry! VAFI appointed Tricia Caswell as CEO, a former Executive Director of the Australian Conservation Foundation. The Sustainable Forest (Timber) Act was passed, VicForests established, and the beginnings of a new market based Pricing and Allocation system introduced. VAFI has intervened wherever possible to protect our members' interests and to provide leadership for change.

Early in 2004 we endorsed our Vision 2025, VAFI's response to earlier discussions across the industry. This Vision was further developed by our new CEO, Tricia Caswell, in line with the principles of sustainability and the interests of the Victorian Community and the planet. It is based on the industry providing credible contemporary leadership, an industry strategy, a fair and transparent pricing and allocation system, speaking with one voice, gathering community understanding and support and recognising the ecosystem services provided by production forests.

This report is essential to that Vision 2025 , to both explaining the situation and making change happen. While we work hard to help our members deal with so much change everyday we are determined to lead the way for long term sustainable forest industries in Victoria .

Greg McCormack
President

Executive Director's Message

As the new Executive Director of the Victorian Association of Forest Industries I am grateful to have been given the opportunity to represent the Victorian forest industry, and I look forward to working together with all stakeholders to meet the challenges and opportunities currently facing it.

The Victorian timber industry has undergone a period of significant change in recent years, which I expect to continue into the future. Whilst we face uncertain times surrounding resource security and increased industry consolidation, we are also presented with a number of opportunities to play a pivotal role in combating climate change, while further advancing our world’s best sustainable forest practices. The VAFI is well placed to lead public debate in these areas and publicly advocate the positive role that forest industries play across Victoria.

Forest industries make a significant and important contribution to the economic, social and environmental wellbeing of all Victorian communities, particularly those in rural and regional areas. Across Victoria there are many regional communities that depend on forest industries for their survival and viability - in terms of their populations, their economies and their infrastructures. In East Gippsland for example, the forest industry contributes at least 30 per cent of the regional economy and is one of the principal employers in the region.  

It is my aim that the VAFI will continue to act as an advocate for these communities in politics and the media, and I will work hard to ensure that timber communities across Victoria are well placed to meet and overcome the challenges ahead.

But while the industry has significant challenges to overcome, there are also many opportunities on the horizon.

One of the most significant challenges facing the world today is climate change, and Victoria’s forest industries are well placed to make a significant contribution to combating the increasing effects of climate change. Each year, Australian forestry operations already remove 10 per cent of our national greenhouse gas emissions, and the sector has a significant opportunity to continue this positive contribution even further.

The development of a national emissions trading scheme will provide the forest industry with an opportunity to once again restate the environmental benefits that stem from sustainable forestry practices.  The VAFI will be working hard alongside the National Association of Forest Industries in ensuring that both forest industries and wood products are properly understood and accredited as a renewable and environmentally friendly carbon store.

Here in Victoria we have a forest industry with a strong commitment to innovation and continuous improvement, particularly in the areas of sustainability and environmental management. The Victorian forest industry is a world leader in both of these areas, and we can be proud that our state forests are arguably some of the best managed in the world.

I am immensely proud to represent the Victorian forest industry, my members, their friends, their families and their employees, and we should all feel proud to be part of an industry that gives so much to so many in our everyday lives.

Philip Dalidakis
Executive Director