Sales of softwood packaging rose 12.7% for the year-ended July 2015, lifting to 441,287 m3 to record the second highest growth rate of any of the softwood products. Adding to the strong annual growth, sales for July 2015 were 6.2% higher than for the prior corresponding period.
Although growth remains strong, there is evidence that the sharp increases in the second half of 2014 have come back to a more manageable level in recent months. The chart below shows packaging sales on a monthly basis and also year-end basis since August 2009.
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The year-end sales line on the chart demonstrates that sales of softwood packaging products has grown steadily since March 2013. This was right at the time when the Australian Dollar commenced its long depreciation. There is some evidence in this data, of a correlation between currency movements and packaging sales.
That is, during the period immediately prior to March 2013, sales of softwood packaging were trending down, possibly under the competitive pressures created by the high Australian Dollar. While that is a conceivable proposition, it is just as likely that sales were impacted by seasonal and climactic conditions that impact primary production in different ways at all times.
Regardless of the cause, softwood packaging sales have never been higher and though slowing, growth appears set to continue.
