Woodchipping is the act and industry of chipping wood for pulp. Timber is converted to woodchips and sold, primarily, for paper manufacture. In Australia, woodchips are produced by clearcutting or thinning of native forests or plantations. In other parts of the world, forestry practices such as short rotation coppice are the usual methods adopted.
Uses of wood chips includes the manufacture of particle board (or 'chip board') and other engineered woods, mulch and fuel.
Historically, the primary sources of wood chips in Australia has been the extensive Eucalyptus hardwood forests found throughout temperate areas of the country. In more recent times, a significant proportion comes from managed hardwood and softwood plantations.
During the late 1960s and '70s the high demand for paper and the relatively low cost and availability of the native forests made the establishment of a woodchipping industry a viable proposition. Conversely, the establishment of a woodchipping industry made it economically feasible to clearfell areas of mixed or substandard forest that could not otherwise have been felled. Clearfelling is a controversial forest practice in Australia, and opponents argue that the woodchipping industry is culpable for its continuation.
Woodchips are converted into a fibre that can be made into various grades of paper or rayon for the textile industry. Most processing and value adding takes place outside of Australia. The Australian economy benefits directly from a low cost and high volume export commodity.
Wood chips, as a by-product of the timber industry, have been used in many ways for centuries, for example as a material for the production of wallpaper or as a disposable floor covering in butchers shop or drinking houses. Wood pulp is the primary market for the woodchipping industry in Australia.