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Forest and Wood Products Australia is preparing to host a Grower CEO Research Roundtable on August 6 and 7 at the Crowne Plaza Melbourne. This strategic event will bring together key industry leaders to align on future research priorities. Source: Timberbiz FWPA’s Grower CEO Research Roundtable will build on this momentum by bringing the sector’s leaders together to set the future research agenda. The roundtable will include CEOs from across the grower network. Under the guidance of FWPA’s Jodie Mason and Sarah Nolet from Tenacious Ventures, the event will focus on identifying research priorities to address industry challenges and unlock new opportunities for forestry innovation. The workshop aims to build consensus on the highest priority research needs and the most impactful opportunities, ensuring future investments are aligned with industry goals. Leaders from AFWI and AFPA will attend as observers, supporting broader collaboration across the sector. The Grower CEO Research Roundtable is another example of FWPA’s role as a connector — bringing together industry, researchers, and government stakeholders. By enabling open dialogue and strategic alignment, FWPA is helping to ensure that future research is both relevant and actionable. The roundtable also builds on initiatives like the Grower Research Advisory Committee (GRAC), which has shown the value of cooperative research in delivering results for the sector. By bringing industry voices to the table, FWPA is ensuring that RD&E remains grounded in real-world challenges and opportunities. This collaborative approach not only supports innovation but also drives a more sustainable, profitable future for Australian forestry.

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The National Heavy Vehicle Regulator has released a new Code of Practice focused on assisting industry to improve safety outcomes in the transportation of logs. Source: Timberbiz The new Log Haulage Industry Code of Practice (LHC) provides guidance for businesses involved at each level of the forest log haulage task. The Australian Forest Contractors Association has welcomed the release of the new Code of Practice. “Safety is the number priority for all of us in the timber industry. Having this Code to provide guidance for everyone within the Chain of Responsibility is a practical development in a complex operating and legal environment,” AFCA CEO Tim Lester said. “Importantly the Log Haulage Code is not a compliance document, and it does not create any new obligations. It does step through the stages of log haulage operations to describe key risks that may need to be addressed and propose steps that businesses could take in response depending on their role in the chain. “AFCA worked with the NHVR and other industry partners to make sure contents of the Code was relevant to industry and the advice it provides is practical. “There are considerations at every stage of log haulage activities, from contracting and scheduling, route planning and navigating forestry and public roads, through to receival and delivery. “By working together, we can make sure we protect drivers, other road users, trucks and loads to make sure haulage is both safe and efficient and so everyone gets home safely at the end of the day. “Our thanks to all AFCA members who provided input and guidance for the development of the Code. We will continue to work with NHVR and forest services business to increase awareness of the Code and opportunities to mitigate and address risks,” Mr Lester said. Acting Chief Safety and Productivity Officer Kelli Walker said that after several years of development, the LHC offered a practical guide for anyone conducting business in the forestry sector. “We’re extremely pleased to release the LHC after working closely with the Australian Forest Contractors Association (AFCA) and the Australian Forest Products Association (AFPA),” Ms Walker said. “These associations, along with industry representatives, stakeholders and vehicle and equipment manufacturers, helped to recognise key issues in log haulage, such as the risk of vehicle rollover, and load loss. “This new Code strikes a balance between detailed recommendations and practical information, to help an industry which operates in many different environments, with different kinds of products.” The LHC provides information and guidance for any operator whose business: Owns a forestry area where logs are harvested, Harvests or stockpiles logs for transport, Loads, operates or contracts heavy vehicles to transport logs, or Manages a facility such as a mill where logs are delivered. Ms Walker said with heavy vehicles forming an essential part of the forestry industry, the NHVR and its partners were committed to helping improve safety outcomes. “Achieving both productivity and safety in the log haulage industry means every person and business is required to play their role in mitigating and addressing risks,” she said. “It’s fantastic to know the LHC will assist industry to do so and help ensure all workers get home safely at the end of the day. “Thanks to everyone who contributed to the LHC’s development or assisted in providing feedback to help us reach this important milestone.” The NVHR will work further with industry associations and participants to roll out information and awareness of the Code, in a project funded by a Heavy Vehicle Safety Initiative grant.

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Victorian sawmills are operating at reduced capacity and laying off staff amid weakened demand for timber products on the back of a slowdown in housing construction. Source: The Financial Review Andrew White, the chief executive of the Victorian Forest Products Association, said while the industry had been initially braced for significant supply shortages to meet increased housing demand, they were now struggling to sell their timber. “Some mills have had to downsize their workforce, and they haven’t been able to operate at full capacity,” White said. “There aren’t as many houses being built, and the wood is not going out … We can be doing a lot more, but a lot of these issues are out our control because of the market dynamics.” The Victorian executive director of the Property Council, Cath Evans, called on the state government to reduce taxes and remove red tape, saying the property sector was hamstrung by a “punishing tax regime, economic headwinds and declining investor confidence”. The VFPA said the state’s housing market slump was putting pressure on timber growers and producers, with some of the mills now running only four days a week, and one major sawmill running at 75% capacity. Two years ago, research for Forest and Wood Products Australia found demand for sawn softwood, such as pine timber for house frames, would be three times domestic production capacity. “We have this ironic situation of surplus pine products,” White said. “We want more houses to be built but build times for houses has gone from six months to 10 months, and there are well-documented shortages in supply chains and trades [people], and over regulation of issues at a local level.” White’s parent company, the Australian Forest Products Association, in a submission to a parliamentary inquiry last year revealed domestic timber sales had fallen by more than 500,000 cubic metres since the COVID-19 pandemic, and that the industry had the capacity to supply an additional 50,000 timber frames for new homes annually. The VFPA has also blamed the Allan government’s Big Build infrastructure agenda for drawing apprentices away from regional Victoria to work on major projects in Melbourne, as well as “lengthy and complicated” planning and building approval processes that delay housing developments. A total of 14,804 dwellings commenced in Victoria in the three months to March, according to Australian Bureau of Statistics data released this month, the highest of any state or territory and a 17% lift on the December quarter. Although Victoria recorded the highest number of commencements in the 12 months to March, its 3% annual growth was slower than NSW (6%) and Queensland (9%). The number of houses under construction in Victoria in the March quarter was 22,817, a decline of 2% on the previous quarter. In the 12 months to March, 15% fewer homes were being built compared to the previous year. Housing Industry Association senior economist Tom Devitt said home building was starting to pick up and the impact would soon flow through to the rest of the supply chain. “Early in the pandemic when there was an enormous surge in new homes, it led to a progressively larger and larger demand every step along the supply chain,” Devitt said. “When the demand moderates, the correction becomes even bigger at each stage of the supply chain. Most of those up and down the supply chain have played out but there’s a chance there’s still some of that [continued downturn] happening, especially in products like timber, which was impacted so acutely during the pandemic.” Evans, speaking for the Property Council, said planning approvals needed to be sped up. “These factors have led to project delays and a slowed pipeline, which in turn can impact demand for key materials like timber,” he said. “This is an example of the flow-on effect delays in housing supply are having on the broader sector. To unlock short-term growth in housing construction, we need a sharper focus on delivery.” A Victorian government spokesman said ABS data showed the state was leading the nation on building and approving homes, and the government had fast-tracked almost 5000 homes since it expanded the Development Facilitation Program to include residential developments that had 10 per cent affordable housing. Evans, speaking for the Property Council, said planning approvals needed to be sped up. “These factors have led to project delays and a slowed pipeline, which in turn can impact demand for key materials like timber,” he said. “This is an example of the flow-on effect delays in housing supply are having on the broader sector. To unlock short-term growth in housing construction, we need a sharper focus on delivery.” A Victorian government spokesman said ABS data showed the state was leading the nation on building and approving homes, and the government had fast-tracked almost 5000 homes since it expanded the Development Facilitation Program to include residential developments that had 10% affordable housing.

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The commercial forestry sector remains in good heart with very good domestic sawmill demand and export sales to China and India chugging along. Prices have remained flat to very slightly up in Export logs which is positive for this time of year. In Canterbury at least, we have high enquiry levels from local sawmills looking for more logs and also wanting some different grades and price levels in the mix.  It is excellent to be taking enquiries around pruned logs, confirming strong demand in the appearance grade lumber sector.  My spies tell me things are quieter in other regions. China is softening in terms of daily usage, now hovering close to 50,000 cubic metres compared to 60,000 last month.  This drop is entirely expected as the summer heatwaves ensure lower productivity and shorter days worked.  Inventory has started to increase again, currently sitting at around 4.1m cubic meters, which is not particularly healthy. For readers who follow my report and review others, I am sometimes asked why, for example, I report inventory at 4.1mill m3 and others will be reporting a much lesser number.  The difference is my numbers reflect all softwood logs across all ports.  Others sometimes only report Radiata pine and some also exclude minor ports without explanation. Prices in the wholesale sector in China are weakening, confirming demand across the eastern seaboard is also weak.  Movements have been slight thus far, but sufficient to ensure it is unlikely we will see the price of NZ logs landed in China increase in the near term.  Most commentary suggests it with be mid/late Q3 (September) before autumn sales will pick up with any positive movements in prices likely to remain on hold until then. At the same time, the delivery rate of NZ logs to China has also declined, with winter, including heavy rain events impacting productivity.  Current log prices are at annualised lower levels also ensuring harvest of forests at some distance from ports remains subdued. The antics of the illustrious Donald Trump continue to impact trade which again is likely to negatively impact demand and therefore pricing. It is great to see, despite the stupidities, wood fibre markets internationally are actually quite stable.  It is also good to see an increasing number of Americans are realising their election foley which we can only hope leads to Donald’s reins continuing to be pulled in. For the moment CFR prices (cost of log landed in US$ per m3) for NZ Logs in China are stable to rising slightly.  Latest commentary suggests a general movement from US$110 to US113/114 per cubic metre A grade basis, with the quality of cargo and percentages of long lengths impacting final negotiations. It is looking like there will be 37 – 40 shipments from NZ in July which is five to six less than normal. India is continuing to emerge from a market low point with small price increases being the order of the day.  There has also been a crazy seller in this market buying high in NZ, selling low in India.  The market generally considers their days to be numbered and none too soon for the rest of us. Prices in India for the same A grade basis logs sits around the low to mid US$120s per m3, but sea freight rates are also much higher.  Bottom line is, both markets are yielding very similar net returns to NZ forest growers at the wharf gate. Shipping remains in an uncertain space with the recent red sea sinking of a bulk vessel by the Iran backed Houthis rebels making everyone nervous, particularly for ships heading to India. The Houthis say that any Israel-linked ship is a target including US and UK warships, but they have also attacked the ships of many nations with no connection to Israel.  For the moment shipping costs are stable but availability for some destinations could become an issue. As always, please remember the thoroughly important message, “despite the challenges, it remains, as always, fundamentally important, the only way forward for climate, country and the planet, is to get out there and plant more trees”. Allan Laurie, Managing Director, Laurie Forestry. Laurie Forestry is a leading Australasian forestry company that provides consultancy, management and marketing services to forest owners, farmers, sawmills and manufacturers.

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