PRESSURE is growing on Gunns to rebuild its poor Japanese market with sustainably certified woodchips, bringing closer an end to old-growth logging in Tasmania.
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Gunns' main woodchip customers this week consulted industry and environment groups in Tasmania as a step towards their own Forest Stewardship Council certification in Japan. The council said that to achieve the FSC green tick for its chips, Gunns would have to exit disputed high-conservation-value forests.
The Wilderness Society said representatives of Chuetsu, Marisumi, Nippon and Oji met them and other environmental and industry groups.
''My understanding is that FSC certification is essential for these companies now,'' said society campaigner Paul Oosting.
Analysts see Gunns' woodchip woes as the main reason for a surprise 98 per cent slump in first-half profit that triggered a sharemarket sell-off late last month.
Exports fell by 500,000 tonnes to 1.3 million tonnes in the first half, according to Bell Potter, which forecast a further slump to 900,000 tonnes in the second half. Ord Minnett said a lack of FSC certification for Gunns' chips was among four drivers of reduced sales into Japan, along with the high Australian dollar, cuts in Japanese production, and uncertainty of supply caused by plans for Gunns pulp mill.
FSC Australia's chief executive, Michael Spencer, said the woodchip customers were acting on verification requirements.
Gunns shares closed yesterday at 54¢, down 1¢. Their low was 50.5¢ on February 26.
