Softwood log exports are predicted to fall by 4% next year, while consumption will remain unchanged. Softwood lumber output will be unchanged in 2007 and exports will grow by 1%.

The US government report says the harvest cutback follows a reduction in exports during recent years.

The longer-term view being adopted reflects forest ownership changes, with timber investment management operations taking over from publicly-listed companies.

Allowing the trees to age more will improve their quality for the construction market, the report added.