Resources Minister Sarah Courtney was quizzed at a budget estimates hearing on the state of forestry in Tasmania and how SST, the former Forestry Tasmania, was faring.

Committee chair Tania Rattray asked if the financial outlook for the government business enterprise had improved.

"The real question is where are they making money now?" Ms Rattray said.

Ms Courtney said: "STT is in a good economic space".

"As the Treasurer has said, STT is in a strong financial position," Ms Courtney said.

"The company forecasts its financial position over four years in terms of estimated earnings and net profits.

"While these figures are commercial-in-confidence, they are a strong improvement on the breakeven outcomes estimated in previous years.''

Ms Courtney told the estimates hearing that STT was doing well because of several factors including "strong prices for wood products".

She also said that private forestry was doing well.

"A lot of farmers are considering investing in forestry," Ms Courtney said.

"The role of Private Forests Tasmania is really important and they are going from strength to strength."

The growth in the forestry industry was in downstream processing and value adding, Ms Courtney said.