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Timber shortage from East Gippsland lockdown risks Christmas shortages in medicine and goods

Chocolate, beer and medicine face massive supply disruptions over Christmas if the nation's largest timber pallet manufacturer is denied access to timber.

By news@gippsland - 29th November 2021 - Back to News

Dormit, at Dandenong South, would usually be providing 70,000 timber pallets per month to the supply chain for the transport of food and beverages, fresh produce and pharmaceuticals - within Victoria and interstate.

Court injunctions and industry uncertainty, driven by Labor moving early to limit access to timber a decade ahead of its 2030 ban on native timber harvesting, is already stopping the supply of new logs

Limiting access to timber

But access to timber resources has dried up with the Andrews Labor Government's policies limiting access to timber and multiple court injunctions that have locked out harvest and haulage operators in Gippsland and north-east Victoria.

Leader of The Nationals Peter Walsh and Member for Eastern Victoria Melina Bath visited the Dormit factory on the weekend, where 40 jobs are on the line in coming days if Labor fails to make timber available.

"The factory would usually be working up to six days a week to produce 70,000 timber pallets per month, but that's dwindled to next to nothing and will come to a halt in days without a supply of new logs," Mr Walsh said.

Making the farmers worried

Mr Walsh continued, "Demand is through the roof for timber pallets, particularly over Christmas, when supermarkets increase their orders for food and drink. But the shortage has also got our farmers worried with the harvest of grapes and stone fruit requiring a steady supply in the next few months to get fresh produce from the farm to wholesale markets in Melbourne and interstate."

Without production of new pallets, the supply chain will grind to a halt. The biggest demand for the pallets comes from food and beverage companies like Carlton & United Breweries (CUB) and Mars confectionery, along with all the major supermarkets.

Supply chain into crisis

"The Andrews Labor Government's pandering to green activists has thrown the supply chain into crisis at the busiest time of the year. This shortage will be felt by everyone - from farmers, to transporters, to timber workers and businesses and right through to retailers and consumers. But Labor's Agriculture Minister Mary-Anne Thomas is missing-in-action when she should be working round the clock to solve this crisis by opening up timber supply." Mr Walsh said.

Pictures from Peter Walsh MP website.

Source: www.gippsland.com

Published by: news@gippsland.com