Action needs to be taken to counter a A$2bn wood product trade deficit in Australia, according to federal forestry minister Ian Macdonald.

Speaking at the Timber Communities of Australia conference in Canberra, he said high-value value adding and state of the art processing are needed.

Australia imported A$3.8bn-worth of forest products in 1999-2000 and exported forest and wood products worth A$1.6bn.