The owner of a sawmill business at Erica says he is selling his operating licence because of political pressure on the logging industry.

Owner Jim Micah says the business has been in his family since 1949, but there is no-one to take over when the current directors retire.

He also blames VicForests' new tender system, and reduced access to areas of forest.

Mr Micah says the forest industry has been the victim of big city politics.

"The way the timber industry is headed, it's been used as a political football, at every election for the last 20 years by governments of both persuasions," he said.