Australia’s native hardwood forestry industry faces big problems if it has to depend on plantation timber, a report by Finnish consultants warns.

The study by Jaakko Pöyry, which surveyed 40 hardwood mills and three sawmill engineering companies, says plantation wood, such as mountain ash, produces poor quality timber and a low proportion of sawlogs.

It also says plantation logs split and the sawn product bends or curves when processed by conventional milling machinery.

Victoria’s native hardwood industry, valued at A$1.8bn, is currently faced with resource cuts and is expected to make greater use of plantations in the future.