Timber mills in Southern NSW are running at "double speed" to harvest salvageable plantation that was burnt in the summer's bushfires.
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Softwoods Working Group chair Peter Crowe said there was a limited window in which to harvest the wood.
"The limiting factor here is after about eight or nine months, wood gets attacked by a suite of fungi which discolours the wood and also reduces its strength, and given most of our wood is produced for house construction strength is a critical factor," he said.
"Because the saw mills are going flat to the boards, they're going to flood the market with wood, so the government has agreed they will support industries in holding processed wood in stock.
"The state and Commonwealth agree there is a shared responsibility and NSW Deputy Premier [John Barilaro] has told me there will soon be an announcement.
"We've had great support from both governments."
Fire-affected trees that are too small for processing will be crushed in a sort of "large-scale composting operation".
"This doesn't detract from the fact we're going to hit the wall at about the end of the year, because that's when the reality cuts in that about half the log supply has been burnt," Mr Crowe said.
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"That won't be rectified in full for another 35 years; it's going to have a huge impact on Australia's wood supplies.
"The winter after this one will be the first big go at raising a heap of seedlings and starting to replant all the burnt forest.
"The longer-term aim is to replant more trees - not only the burnt stock, but to expand plantations."
