International Forest Industries
Jan Räsänen will be Heinola Sawmill Machinery’s new Managing Director. The current Managing Director, Kari Kiiskinen will continue on the company’s Board of Directors and as an advisor to the management until autumn 2019.
Kari Kiiskinen has worked for Heinola Sawmill Machinery for more than 30 years, the last 10 years of which as Managing Director. He felt the time was right for a controlled change in the company’s operational management.
Jan Räsänen has experience working in the mechanical forest industry, most recently as a plant manager at Metsä Wood. He joined Heinola Sawmill Machinery in 2014, and worked as Head of the Project Department before his post as Managing Director.
Heinola Sawmill Machinery Inc. is the only supplier in Finland concentrating on development of high-quality drying kiln technology.
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As part of the process to achieve its fossil-free targets by 2030, Södra is now earmarking an investment of SEK 20 million ($2.2 million) for the additional costs arising from the choice of new and sustainable transport solutions.
“As one of Sweden’s largest transport purchasers, we have a major responsibility. We want to show the way to a sustainable transport future and this investment will show that we are very serious about achieving change, and inspiring others to follow our lead,” said Lars Idermark, President and CEO.
The earmarked funds will increase opportunities for working long-term without affecting the day-to-day operations. Södra has previously communicated its investments in liquid biofuel production through its two joint ventures, SunPine and Silva Green Fuel, and its own production of biomethanol.
“We are following our roadmap for “A Fossil-Free Södra,” alongside of our efforts to promote the supply, demand and policy instruments that will enable a profitable transition, and to become a role model for others to follow. With this investment of SEK 20 million ($2.2 million), we can help to drive demand for new technical solutions,” said Henrik Brodin, Project Manager for “A Fossil-Free Södra.”
Hasslacher plans to invest Euro 30 million in expansion of its Preding site in Austria. Holtec to supply new log sorting line for Hasslacher’s mill in Preding, The project will be realised in summer 2019.
Hasslacher Preding Holzindustrie operates a sawmill with a cutting capacity of 250,000 solid cubic metres and produces finger-jointed solid construction timber, planed goods, pellets as well as special pallets and packaging solutions. In the curse of the new investment, the saw line will be modified and the cutting capacity will be increased to 600,000 solid cubic metres logs.
Furthermore the log yard will be extended. For the first time in the company’s history a Holtec log yard is installed. Hasslacher relies on the tried and tested chainless technology from Holtec as well as on the new milling disc for making pre-cuts.
The Valon Kone type debarker is fed with a max. speed of 130 m/min. By means of the control Gap-ControlTM the log gap is optimized for an ongoing feeding.
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Wood-Mizer plans to expand their manufacturing facility in Batesville, Indiana. The expansion project scheduled to begin in March of 2019 will consist of 53,000 additional square feet dedicated to manufacturing the company’s world-leading range of sawmill and wood processing equipment.
With a scheduled completion date of October 2019, the expanded facility will include a total of 132,000 square feet with 124,000 square feet dedicated to manufacturing Wood-Mizer’s wide range of wood processing equipment.
“Wood-Mizer is dedicated to providing our customers with a wide range of equipment to satisfy their wood processing equipment needs,” shared Wood-Mizer North America President Darryl Floyd. “This facility expansion in Batesville will allow Wood-Mizer to continue to meet the global demand of our growing range of products that are built right here in Indiana.”
Wood-Mizer offers a complete line of narrowband portable and industrial sawmills, wideband sawmilling equipment, resaws, edgers, kilns, molders/planers, firewood processing equipment, pallet recycling equipment, material handling equipment, bandsaw blades, and blade maintenance equipment for forestry and timber professionals all over the world.
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Utilizing John Deere Power Systems technology, the John Deere 644K and 944K Hybrid Wheel Loaders have collectively logged more than 1 million operating hours in the field.
This level of real-world experience is key as more OEMs look to John Deere Power Systems for technologies to reduce emissions, improve fuel economy, and enhance machine performance and reliability.
This milestone follows the announcement that the John Deere family of Stage V engines received official certification.
John Deere was among the first to introduce electric drive technology in off-highway equipment, as it produced the 644K hybrid loader in 2013 and the 944K hybrid loader in 2015. John Deere Power Systems joined forces with John Deere Electronic Solutions to successfully design and implement fully integrated electric drivetrain systems — a concept first introduced at bauma 2016.
Integrated solutions expertise
While off-highway equipment manufacturers continue to explore and evaluate hybrid and electrification solutions for their respective markets, the demands of the end customer for reliability and productivity continue to increase. In response to this, John Deere is developing technology to meet manufacturers at various phases of implementation and development.
“In this emerging market for electrification technology, we are working closely with our OEM customers to understand their application needs,” says Darren Almond, Drivetrain Product Planning Manager for John Deere Power Systems. While the off-highway industry continues to grow and adapt, its demands remain the same. And to that point, a rugged market requires a product that can meet expectations in a variety of applications — whether diesel, hybrid or electric.
“Exceeding 1 million operating hours shows that John Deere has an in-depth understanding of how to make hybrid drivetrain systems work in the field,” says Almond. “We can use our expertise to discover innovative ways to develop reliable, efficient, cost-effective alternatives to traditional drivetrain systems.”
Accounting for the entire system solution will be vital to the successful development of this emerging market. The OEM electrification approach of John Deere seeks to offer integrated solutions that address the interfaces between the electrical generator and/or motors, power electronics, and mechanical interfaces.
A complete, innovative lineup
To accompany its proven hybrid solutions, John Deere Power Systems will showcase new, innovative engine options at bauma 2019. The new 13.6L engine from John Deere will be part of the Stage V lineup for industrial and generator set markets. In addition to the 13.6L engine, John Deere will display its 4.5L EWS engine for the first time. The 4.5L EWS engine serves both the 80 kVA and the 100 kVA markets and expands the non-EGR engine generator drive lineup for Stage V from John Deere.
Because John Deere has experience managing these interfaces and developing a fully integrated system, OEMs can place their confidence in these solutions.
To learn more about new electric solutions, the new 13.6L and 4.5 EWS engines, and the Stage V lineup from John Deere, visit the Power Systems booth at bauma, Hall A4 — Stand 139, 8-14 April, 2019.
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In 2018, global trade of lumber fell for the first time in five years, with total trade down 7% year-over-year. The four largest importing countries, the US (-18%), China (-5%), the United Kingdom (-13%) and Japan (-6%) all imported less in 2018 than in the previous year. Much of the decline was the result of weaker economic prospects and reduced housing starts.
Lumber markets – North America
US lumber prices have gone through a historical roller-coaster ride over the past 12 months. Random Lengths’ composite index for southern yellow pine was at $420/m3 in January 2018, peaked at $554/m3 in June and fell to $372/m3 in January 2019.
2018 softwood lumber exports from Canada were down 5% from 2017, with the biggest decline being in shipments to China. A three-year high of 80% of total exports were destined for the US market in the 3Q/18 despite efforts by Canada’s lumber industry to diversify its export shipments. China’s share has fallen from 13% in 2017 to 12% in 2018. The average export price from Canada declined by 28% this fall.
Lumber markets – China
Lumber imports to China fell for two consecutive quarters to reach 5.9 million m3 in the 4Q/18. This matches the pattern from previous years of declining import volumes in the third and fourth quarters of the year. Total imports for 2018 were down 2.3% from 2017 but still the second highest volume on record.
Continued uncertainty about the future of the Chinese economy, decade-low GDP growth in the 4Q/18, and reduced investments in housing and construction have all been factors that have led to slowing demand for lumber in late 2018. Import volumes in January 2019 were up by almost 20% from January 2018, but it is still too early to say if that is just a short-term jump.
Russia’s share of total imports to China has moved up from 55% in the 4Q/17 to 63% in the 4Q/18 as the sawmilling sectors in Siberia and the Far East continue to expand and deliver competitively priced lumber. Shipments from Finland and Sweden have fallen sharply in the past year, from a total of 624,000 m3 in the 4Q/17 to only 335,000 m3 in the 4Q/18, the lowest volume in three years.
Source: Wood Resources International LLC, www.WoodPrices.com
EGGER Ltd welcomed the UK Government’s Minister for Energy and Clean Growth, Claire Perry, to its wood-based materials manufacturing site at Hexham, Northumberland, earlier this month, a trip that comes on the back of concerns raised by the industry about the increasing demand for the UK annual wood basket.
These concerns, which come through the Wood Panel Industries Federation (WPIF), are related to ensuring that wood security is at the forefront of future UK business and energy policy.
“The wood panel manufacturing sector uses 25% of the 11 Mt of wood delivered from UK forestry every year,” EGGER said. “UK manufacturers supply approximately 65% of the total UK annual consumption of wood-based panel products, which can be found in virtually every office, home and workplace across the country and is relied upon by the furniture, house building and construction industries across the UK.”
The minister was joined by Hexham’s local representative Guy Opperman, Northumberland County Council Leader Peter Jackson and Councillor for Hexham East, Cath Homer.
Perry said: “It was a pleasure to be in Hexham with Guy Opperman MP and visit the Egger plant to meet representatives of the wood panel industry and discuss the importance of forestry to the UK Economy. It’s great to see manufacturing firms continuing to invest domestically and bringing highly skilled, quality jobs to the area.”
Hexham’s Member of Parliament, Guy Opperman, said: “I was delighted to welcome Energy Minister Claire Perry to EGGER in Hexham to show off one of our top local employers. It was a fantastic opportunity to demonstrate the importance of forestry to Northumberland, and I really hope she takes the message loud and clear about the need to maintain forestry and keep timber costs down on an ongoing basis.”
WPIF Director General, Alastair Kerr, said, “We really appreciate the time and engagement the minister gave to this visit. Being able to showcase first-hand the nature of the industry, its products and processes is extremely valuable as it creates a more informed context to future discussions that we hope to have with the minister and her department”.
John Paterson, Director, EGGER Forestry, said: “It was a pleasure to host this meeting with the minister, where we were able to discuss the impact of energy policy on our wood supply.
“Our industry is at the forefront of sustainable UK manufacturing. I was pleased to show the minister what we are able to manufacture at Hexham to meet the demands of the furniture, interior design and construction sectors. Wood security is vital to underpin our manufacturing capability and future capital investment.”
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Powerful cutting performance, fast travel speeds and operator presence controls. Vermeer enhances its professional tree care equipment product line with the introduction of the SC70TX stump cutter. Equipped with a 67 hp (50 kW) Cat turbocharged, Tier 4 Final/Stage IIIB diesel engine, the SC70TX stump cutter delivers power to the cutter wheel and can travel up to 1560 rpm.
“Vermeer designed the SC70TX stump cutter for challenging residential, commercial, municipal and rental applications,” said Todd Roorda, tree care, rental and landscaping sales manager at Vermeer. “We have made several enhancements upon qualities to create a powerful and efficient machine. We know contractors will be pleased with the power, speed and controls of the SC70TX model.”
The ground speeds of the SC70TX stump cutter will be noticeable to operators the moment they take it off the trailer. With a transport speed of 65 ft/,in (19.8 m/min), contractors can maneuver much quickly from stump to stump. The undercarriage system has 4.3 psi (29.6 kPA) ground-bearing pressure in soft ground and allows the machine to track quietly and smoothly. The model’s rubber tracks have a tread design that helps reduce the risk of turf damage while turning.
Vermeer has also incorporated performance and safety features found on its other stump cutters, including an operator presence system that stops the cutting wheel when an operator disengages contact with capacitance-sensing control handles and the patented SmartSweep® control system that monitors the engine speed and automatically adjusts the cutter wheel sweep speed to maximize power to the cutter wheel while reducing engine stress. An optional remote control that gives the operator visibility and flexibility is also available.
The SC70TX stump cutter has an efficient direct drive that maximizes the amount of horsepower to the 23-inch (58.4 cm) cutter wheel, and the Vermeer Yellow Jacket™ cutter system allows for efficient and convenient serviceability.
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Metsä Group has renewed its strategic sustainability objectives. These 2030 objectives extending to 2030 cover all Metsä Group operations and are also mirrored across the supply chain.
Metsä Group’s target is to increase the amount of carbon stored in forests and its products. The amount of carbon in forests will be increased through expanding the area covered by Metsä Group’s forest management services by 30% compared to 2018. The amount of carbon stored in products will be increased also by 30% through investing in products that store carbon for a long period of time. In addition, biodiversity will be safeguarded through increasing the volume of decayed wood in forests.
Metsä Group’s objective is to have fossil free production by the year 2030. This means that the mills will not use fossil fuels and products will be made from renewable raw materials. The resource efficiency of production will be ensured by utilising all the production side streams and by reducing the use of process water by 25% from the year 2018.
Progress against the sustainability objectives will be verified within Metsä Group’s own operations as well as in the supply chain. The aim is to ensure that all personnel will act according to Metsä Group’s ethical principles and the work environment will be accident-free.
Metsä Group renewed its 2030 sustainability objectives as a part of its strategy update. The main raw material of all Metsä Group’s products is renewable wood from sustainably managed northern forests.
For further information, please contact:
Päivi Makkonen, VP, Sustainability, Metsä Group, tel. +358 50 598 9591
Juha Laine, SVP, Communications, Metsä Group, tel. +358 50 346 0350
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Tornator ’s net sales were Euro 112.8 million, up 11%. The growth was due to increases in felling volumes and market prices for wood.
Operating profit at fair value amounted to Euro 116.5 million and profit for the period was Euro 78.9 million. The fair value of biological assets increased in all operating countries, which contributed to the change in operating profit.
The change in the fair value of biological assets increased operating profit by Euro 32.6 million, and a negative change in the fair value of financial instruments decreased profit by Euro 1.6 million before deferred taxes.
Comparable net sales, operating profit and net profit increased in all countries: Finland, Estonia and Romania.
CEO Sixten Sunabacka said: “The year 2018 was excellent for Tornator. Net timber sales, comparable operating profit and net profit were record-high. It was the last year of our three-year strategy period. I am glad to say that we accomplished a comfortable two-digit growth and profitability improved further. The sales of silvicultural services aimed at forestry professionals nearly doubled.”
Tornator is a leading company specialised in sustainable forestry in Europe. It owns forests in Finland, Estonia and Romania.
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SCA Wood France and the French company Innovation Solutions Bois, Groupe ISB, have merged their operations in wood processing and distribution of wood products in France. SCA’s contribution is the company’s operations in wood processing and distribution in Rochefort, France. SCA’s Bonneuil-Matours site will not be part of Groupe ISB, but will be closed after the fire in 2018.
“The French building materials sector is growing and is of great importance to SCA. With the merger we create a large and resourceful supplier serving demanding customers all over France”, says Jerry Larsson, President SCA Wood.
SCA’s contribution amounts to SEK 300 million ($33 million) and contains SCA’s wood operations in France and procurement of shares in ISB. SCA will have a 38.5% share in Groupe ISB and will become the largest shareholder. SCA will not consolidate the company.
Innovation Solutions Bois is France’s largest supplier of wood products to the building materials market.
SCA Wood France supplies more than 100,000 cubic metres of wood products to the French building materials market. The products include wood paneling, flooring, decking and construction timber.
Italian IMAL-PAL Group signed an important project with the Korean company Hanwha for a new pellet plant of 40 t/h capacity, a production of approx. 320,000 t/year. Delivery is scheduled for October 2019.
PAL to supply:
– Screening and Cleaning system of the chips feeding stream by Dynascreen and dry cleaning machines.
– Wet and dry wood milling system by 8 Hammermills of the Falcon type in its high-performance configuration, complete of screw metering, metal and contaminant removing system through magnetic drum and air selection system.
– After the dryer, a screening and cleaning system by Superscreen and wind sifter is to provide for the reduction of energy consumption in the milling area and at the same time ensure the wood quality having removed all residual contaminants in the wood mix.
The Imal-Pal Group is an Italian equipment and plant manufacturers for the wood-based panel industry.
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Komatsu Forest Oy and Dojus Group have made an agreement about Komatsu forest machine dealership including new and used machine sales and also spare part and service sales. The agreement is valid from April 1st 2019.
The group employs 340 people in Lithuania, Latvia, Belarus and Kaliningrad. Komatsu forest machine agreement covers Lithuania.
“To start the Komatsu forest machine dealership with Dojus Group in Lithuania is an important part of Komatsu Forest’s long-term strategy in the Baltic market area,” says managing director of Komatsu Forest Oy Jari Alahuhtala in Kaunas.
“Our realistic goal is to raise our share in machine sales and after sales products in the Lithuanian market and the agreement with Dojus Group will already in short term raise Komatsu Forest’s ability to answer to modern technology requirements and improve serving forest machine customers also in longer term perspective,” continues Alahuhtala.
Komatsu Forest manufactures forest machines that are sold worldwide.
Laesti, owned by Bergs Timber, with two facilities in Pärnu, Estonia (Savi sawmill and Sauga sawmill), will cease all sawmilling and planing at Savi plant, leaving Savi site as drying center of Sauga production.
At the Sauga plant, at the same time about SEK 10 million ($1.1 million) will be invested in new, capacity-increasing log intake and the production will increase to 95,000 cubic metres annual output production.
After the closure of Savi, Bergs Timber’s Estonian sawmilling capacity will reduce by 15,000 cubic metres. Savi has today about 70 employees out of about 20 will be offered to move to Sauga site and the total reduction will be about 50 employees.
“After the implementation our profitability in the sawmill business is improved while we are increasing the processing operations. Unfortunately, many employees are affected in Estonia and we will do our best to handle the situation in the best possible way,” says Peter Nilsson, CEO of Bergs Timber.
Bergs Timber produces and sells sawn and further processed wood products. It operates its production facilities in Sweden, Estonia and Latvia. The Group also includes its own port and logistics operations in England.
Peter Nilsson, CEO of Bergs Timber. Visit the Company website here.
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HARVESTERS: It’s worth taking a step back to appreciate just how refined the harvester has become under the watch of the contemporary group of harvester suppliers.
LOGGING • BIOMASS
Harvesters: It’s worth taking a step back to appreciate just how refined the harvester has become under the watch of the contemporary group of harvester suppliers.
Lifting & Loading: A concerted effort to improve the mechanics of lifting logs should improve productivity and energy consumption and improve the bottom line for contractors.
Access To The Timber Stand: The land-clearing specialists ensure a smooth ride for forestry contractors but that doesn’t mean ensuring access to the timber stand needs to be an uncomfortable job.
Two’s Company: Ex-oil field worker partners with lifetime logger to take on tough conditions in Michigan’s upper peninsula.
The Northernmost Bear In Sweden: In Örnsköldsvik in the Swedish province of Ångermanland, one can run into an exceptionally big bear.
Truck Mounted Chippers: Jenz The JENZ product range varies from classic Chippertruck as a three-axle model with drive via the truck engine, to the hybrid version as a four-axle with dual engine technology
Stenner: Stenner produce the most extensive range of wide band resaws in the world.
Pilous: The X-Cut saw band was developed based on customer requirements for woodworking and sawing on band saws.
System Tm: Experiencing the full range of System TM and MiCROTEC machinery in action will be taking center stage at this year’s LIGNA exhibition.
Tp & Ee: Mills turn out in force Portland, ORE.
Coming up in the April/May 2019 edition of IFI
Sawlines: The complete sawline sits at the heart of the sawmill and provides a home for a multitude of technologies that combine to make sure that heart beats consistently and rhythmically. IFI speaks to companies delivering complete sawlines into businesses across the world to see who is drumming up the most business and what the market is demanding.
Wood Drying Technology: From double-track, single-track and side-loading configurations, the sawmill’s work isn’t done until the icing is put on the cake. For the lumber processing industry, icing the cake involved drying and finishing the sawn-wood products properly, dressing them up for market. The feature will look at not only the latest in kiln technology and the issues facing kiln manufacturers, but the supporting components that keep modern kilns at the cutting edge, such as moisture measurement systems, kiln humidification systems, and thermal modification and vacuum drying.
Scanning & Optimisation: The technology at the pointy end of the sawmilling sector. Scanning and optimisation technology is being increasingly turned to by sawmillers to streamline operations and cut down on costs. It is also a sector that is constantly coming up with new ideas to help the sawmilling industry achieve its goals. We’ll review not only technology breakthroughs and innovations but also look at case studies where these technologies have transformed the fortunes of sawmills.
Debarkers: How have the industry’s found avenues to improve the way we debark logs – faster, cleaner, more efficient? Further advancements are possible and we’ll chat with the people pushing the boundaries. We also look back to the forest to consider how debarking in the stand is changing to add value to logs before they leave the site.
Operation Focus: TBC
Operation Focus: TBC
LOGGING • BIOMASS
Chippers: The emerging forestry subsector of chipping continues to take hold, keeping pace with one of its min drivers – biomass and bioenergy. The battle for market supremacy continues to intensify and the innovations continue to roll out.
Feller Bunchers: The harvesting method pioneered in North America using the feller buncher has spread acrss the globe. The latest advances in these machines are covered in an annual technology review.
Operation Focus: Tigercat
Operation Focus: John Deere
Operation Focus: Ponsse
Operation Focus: TBC
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More than forty state parliamentarians joined over 100 industry stakeholders on Wednesday night to launch the Queensland Parliamentary Friends of the Forest and Timber Industry Network at Parliament House in Brisbane.
Timber Queensland’s Chair James Hyne said this landmark event provided industry an opportunity to showcase its diversity and for MPs to gain a greater appreciation of its bright future. “Queensland’s $3.2 billion forest and timber industry delivers 25,000 direct and indirect jobs predominately in rural and regional communities,” said Mr Hyne.
“We gathered last night to celebrate our contribution and to show we’ve got room to grow. There are exciting trends in timber innovation and we have significant forest resources that can play a greater role in the state’s economic future,” he said.
“This growth potential strengthens our position as Queensland’s third highest value agricultural industry, with significant downstream processing and manufacturing that supports the state’s $44 billion building and construction industry.”
The event was co-hosted by Labor MP for Maryborough Mr Bruce Saunders and Liberal National MP for Gympie Mr Tony Perrett, who are both co-chairs of the new network. They were joined by the Minister for Agricultural Industry Development and Fisheries, Mr Mark Furner, and the Leader of the Opposition Mrs Deb Frecklington.
James Hyne said he was pleased with the overwhelming response from industry participants and members of parliament who attended the event. “The wide attendance from all sides of politics was a clear demonstration of their support of our renewable and carbon friendly industry,” said Mr Hyne.
The Parliamentary Friends of Queensland’s Forest and Timber Industry Network will strengthen the industry’s engagement with parliamentarians and state policy makers, and build awareness of the multiple economic, social and environmental benefits it delivers for Queensland.
Photo: James Hyne, Timber Queensland Chair, Bruce Saunders MP, Member for Maryborough, Tony Perrett MP, Member for Gympie, and Mick Stephens, Timber Queensland CEO, officially launch the Network at Parliament House.
Source: Timber Queensland
A new report, published this week, exploring the long-term potential of establishing new timber plantations in Australia, suggests up to 490,000 hectares of new softwood plantations would be required by 2050 to meet demand of softwood sawlogs.
The Economic potential for new plantation establishment in Australia: outlook to 2050 report is based on a joint work program between Forest and Wood Products Australia (FWPA) and the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).
Ric Sinclair, Managing Director of FWPA, said: “There is a lot of interest in using timber products for taller buildings, as well as the traditional detached house market. The new ABARES report reveals that Australia needs to significantly increase the amount of softwood plantations over the coming decades if we want to meet this demand domestically.
“The local softwood plantation estate has been effectively frozen for nearly 30 years and this resource underpins domestic wood processing,” Mr Sinclair said. The key findings of the report are:
- The plantation sector is critical to the forestry industry
In 2015–16 commercial timber plantations, which were split virtually evenly between softwood and hardwood species, accounted for 87 per cent of Australia’s log production.
- Domestic demand for sawlogs is growing
ABARES forecasts a shortfall in the volume of softwood sawlogs available for the domestic market of 2.6 million cubic metres. In terms of new softwood plantations, an additional 200,000 to 250,000 hectares would be required by 2050 to make up the shortfall. However, given the uncertainty around softwood sawlog supply and log-equivalent demand in 2050, some estimates suggest the required area could be higher with Omega Consulting indicating that this could be as much as 490,000 hectares.
- Future plantation investment may not be enough
In order to meet growing demand, the domestic market will become increasingly reliant on imports of sawnwood. ABARES estimates the volume of imports will more than double by 2050. This is a potential missed opportunity for the Australian forestry sector, unless the current softwood timber plantation estate expands to meet growing demand.
- The good news
The report also modelled five different scenarios to see which market mechanisms could have the most impact on plantation expansion. These included: productivity improvements, changes in agricultural land prices, increases in demand, changes in exchange rates and reductions in the required rate of return (discount rate).
Interestingly, while all the scenarios supported the need for an expansion of the softwood estate, changes in the discount rate had the greatest impact because softwood plantations managed for sawlogs have much longer rotation lengths and therefore pay-off periods. For instance, a 1 per cent reduction in the discount rate to 6 per cent would encourage a further 264,520 hectares of softwood plantation development. In addition, a 5 per cent discount rate could see the softwood estate expand by some 700,000 hectares.
The report notes “While there are some limitations of the modelling framework used in this research, the analysis outlines key factors that could influence future plantations and highlights potential missed opportunities for the forestry sector, if action is not taken.”
Mr Sinclair said the report has identified potential for the forestry industry to grow and potential policy levers to make this happen. “As the old proverb says, the best time to plant trees was yesterday and the second best is to plant them now. Commercial plantations can provide economic, social and environmental benefits for Australia and we need to get back onto a growth path as soon as possible,” he said.