Forest Products Industry

Since mid-2022 when interest rates, especially mortgage lending rates started going up, home builders and lumber buyers became extremely cautious in purchasing of manufactured wood products. Source: Madisons Lumber Reporter In general players avoided stocking up on lumber inventory, mostly out of concern that prices might fall, and they might get stuck with expensive material they would have to sell at a loss. Specifically veteran players, who were accustomed to prices at much lower levels than currently, chose to hold off buying to see if prices would drop back to what was historic. The fact is, however, that since 2020 to 2022 there is a new floor, and lumber prices will never return to what were the lows in 2010. This is because the cost-of-production for sawmills has essentially doubled in the past five years. The ongoing uncertainty of macroeconomic conditions nationally and warfare globally is doing nothing to restore confidence. For the time being customer demand is served promptly by sawmills and lumber manufacturers; however, if there is a bounce — even a small one — in sales of wood, either for new home building or for reconstruction after storms, shortages will appear almost immediately. Should this happen, anyone caught without wood they need for ongoing projects could be facing quite a price shock. Key points: Overall sentiment remained uncertain to negative Mild discounts were prevalent as producers looked to move some of their built-up material Supply was palpably ahead of subpar demand Field inventories remained exceptionally lean Opportunistic buyers flitted from supplier to supplier, feeling they had the upper hand Producers did their best to hold the line in terms of price, often not succeeding Sawmill order files continued to shrink as it remained a struggle to extend lead times on anything.  

About two-thirds of Japan is covered completely with trees, with around 40% being artificially planted. To maintain the forest’s health, trees must be routinely harvested and replanted, however declining import costs have resulted in little incentive to use the country’s wood, meaning forests are left unharvested and unmaintained, increasing the risk of disasters such as landslides. Sources: Timberbiz, Playfool In response, Playfool wanted to create a unique and scalable use for wood that can not only motivate the country to upkeep and sustain the forests, but also inspire a new appreciation of the trees to future generations. The result is Forest Crayons: an innovative use for wood that transforms Japanese trees into a beautiful palette of naturally coloured crayons. While the colour of wood is often thought of as simply ‘brown’, Forest Crayons reveals the vast spectrum of hues that exist in the forest. From the light green of magnolia to the deep turquoise of fungus-stained wood, each crayon exhibits a distinct colour determined not only by the species of tree but also the conditions in which it is grown. No matter what its shape, composition or defect, any piece of wood from the lumber yard can be transformed into a crayon, embracing the natural inconsistencies of the material to make each set of Forest Crayons truly unique. Developed as part of a program supported by the Japanese Forestry Agency, the hope is to not only breathe new life into Japanese wood, but also ignite a new appreciation for the country’s forests. Each set includes 10 crayons, each with a colour derived solely from a different species of tree native to Japan such as cedar, hazenoki and katsura. By repurposing Japan’s otherwise wasted timber as a source of pigment, Forest Crayons breathes new life into the country’s abundant wood resources, allowing one to appreciate and create with the forest like never before.

The Forest Stewardship Council has released its flagship publication, Forest Futures. This pivotal work leverages current scientific research to assess the state of the world’s forests and explore their potential for profound change. It underscores the vital role of forest stewardship in fostering resilient and healthy ecosystems. Source: Timberbiz Forest Futures provides an in-depth analysis of today’s forests, addressing critical issues such as biodiversity loss, the ability of forests to support livelihoods, and the urgent need to tackle the climate crisis. It sheds light on the shared understanding of forest stewardship and highlights how this approach has been undervalued by many decision-makers as a viable solution to these global challenges. To explore three potential trajectories for the world’s forests by 2050, FSC collaborated with Reos Partners, renowned for their expertise in systems-change studies and transformative scenarios mapping. Input from over 200 stakeholders helped identify four key drivers influencing forest management, conservation, and sustainable use. Leveraging these drivers, the three distinct trajectories were outlined and mapped out. These drivers are (1) Forests & Planet, (2) People, (3) Economy & Markets, and (4) Governance. These trajectories, developed through an innovative modelling exercise, demonstrate the profound impact that different levels of commitment to forest stewardship can have on our planet. “Forests are at the heart of our environmental and socio-economic future,” said Kim Carstensen, Director General of FSC. “Our flagship publication demonstrates that by embracing forest stewardship, we can unlock their potential for positive change. This is not just about preserving forests, but about enhancing their role in addressing global challenges such as climate change, biodiversity loss, and social inequity”. FSC continues to lead the way toward a future where forests can thrive, advocating for responsible forest management practices that meet societal needs while preserving ecological integrity. Forest Futures calls for transformative change, offering a tangible strategy for achieving environmental targets. It urges governments, businesses, NGOs, and other key actors to join in creating a future where forests flourish, communities thrive, and our planet achieves harmony. Read the full publication at https://fsc.org/en/media/fsc-forest-futures-full-0

Austral Plywoods has long been a staple in the Australian forest and wood products industry, known for supplying premium appearance-grade plywood for almost a century. Source: Timberbiz From its Brisbane mill, the company has been operational since 1925, manufacturing products exclusively produced from Araucaria cunninghamii (hoop pine) – a premium domestic species 100% sourced from the sustainable plantations of Queensland’s South Burnett region. As Austral Plywoods approaches its 100-year anniversary, the team has no intentions of slowing down and is excited to share some significant changes and expansions to its product range. The biggest development is the transition towards producing ‘multiply’ panels across its entire plywood range, in response to customer demand. ‘Multiply’ panels are manufactured with veneers of the same thickness, giving additional strength and flatness as well as providing an attractive edge to the panel. Additionally, the company’s Interior plywood range has been upgraded to ‘AB’ grade, featuring an ‘A’ grade face, ‘B’ grade back and a 100% ‘A’ grade core. This adjustment is in response to requests from architects and cabinet makers for panels suited to joinery, CNC cutting, and laser work. These changes will provide customers with plywood panels that excel in value, appearance, workability, and environmental sustainability. Another exciting development is Austral’s involvement with the recent launch of its Austral CrocPly product, made for the most demanding floor applications, using hoop pine plywood overlaid with a hard wearing, waterproof and slip resistant film. Austral CrocPly features a multiply marine plywood core with a wire mesh and film-faced surface, providing an Australian-made alternative to imported products like Hexa Plywood. This construction meets the Australian Marine standard. The versatile material is suitable for various applications, including: truck and trailer decking vehicle floors scaffolding pedestrian platforms stair treads ship decking stage platforms.

From endemic species to sacred sites, all natural habitats, especially forests, hold inherent conservation values. Those known as ‘high conservation values’ (HCVs) reserves encompass high biological, ecological, social, and cultural significance. Source: Timberbiz Timberlands Pacific Pty Ltd (TPPL), an FSC-certified forestry organisation spanning Tasmania and the Green Triangle region of South Australia and Victoria, demonstrates its dedication to preserving these values. Through meticulous assessments, TPPL identifies and safeguards the ecological importance of its diverse forest estates, underscoring its leadership in sustainable forest management and biodiversity conservation. The HCV approach, developed by FSC in the 1990s, serves to identify and manage critical values within production landscapes like TPPL’s forests. This framework spans six categories – species diversity, landscape-level ecosystems, habitats, ecosystem services, community needs, and cultural values adopted across forestry and other sectors. Under FSC Principle 9, all certified forestry organisations are required to maintain and/or enhance these HCVs through a precautionary approach, ensuring proactive conservation and responsible resource management practices. At the core of TPPL’s operations lies the Penola Plantations, blending Pinus radiata plantations with natural vegetation pockets. Designated HCVs and other reserve types harbour a diverse array of flora and fauna, including rare or threatened species. TPPL’s dedicated experts conduct thorough assessments to ascertain the ecological significance of these sites, highlighting their critical role in biodiversity conservation. TPPL’s approach to managing HCVs is guided by a profound respect for nature. Under the umbrella of FSC Principle 9, TPPL identifies and manages HCVs potentially impacted by their activities. This proactive stance involves setting clear management objectives, implementing stringent operational controls, and instituting robust verification and monitoring programs to ensure continual maintenance and/or improvement in conservation outcomes. Six HCVs have been identified within the Penola Plantations estate, all falling under HCV class 3; forest areas containing rare, threatened, or endangered ecosystems. TPPL has recently undertaken enhancement efforts at the Werrikoo HCV in Western Victoria near Casterton, classified as ‘Damp Heathland’ within a 62-hectare depleted Ecological Vegetation Class. Flora assessments indicated the heath was aging and required controlled burning for regeneration. Since 2014, monitoring efforts at Werrikoo, including hair-tubes, camera surveys, and small mammal trapping, have revealed significant wildlife presence. Notably, the nationally vulnerable Swamp Antechinus and the endangered Heath Mouse have been documented. The Swamp Antechinus thrives in long-unburnt habitats but faces threats from frequent burning. Conversely, the Heath Mouse adapts to environments shaped by regular fires, with studies showing population declines as heath habitats mature. To balance the needs of these species, TPPL collaborated with local experts to develop a mosaic burning strategy across Werrikoo. This approach involves planned burns at different times and locations within the reserve to create diverse habitats. Targeted surveys, field assessments, and controlled burns were conducted in 2017, 2022, and most recently in autumn 2024. The Nature Glenelg Trust, partnering with TPPL, conducted preparatory trapping and surveys ahead of the 2024 autumn burn. TPPL exemplifies the transformative impact of responsible forest management under the banner of FSC certification. Through their dedication to preserving HCVs and supporting biodiversity, TPPL not only protects Australia’s native wildlife but also inspires a movement towards harmonious coexistence between humanity and the natural world. In this way, TPPL ensures that future generations inherit a planet rich in ecological wonders and sustainable resources.

New Zealand’s Gisborne Council’s Landslide Susceptibility and Connectivity Model will soon be applied to land use planning in Tairāwhiti. This is part of the work underway to improve forestry and farming practices across the region. Source: Timberbiz The model, completed by Manaaki Whenua – Landcare Research, aims to identify which areas have a high likelihood of landslides occurring and the likelihood that these landslides will affect the waterways. It will play an important role in shaping land use rules across the region. The model will help inform the Land Overlay 3B, an extension of the current land overlay framework in the Tairāwhiti Resource Management Plan (TRMP). Land Overlay 3B will identify the worst eroding land across the region, which will need to transition out of plantation forestry and/or pastoral farming and into permanent vegetation cover. Gisborne District Council Executive Nedine Thatcher Swann emphasised the importance of this data. “This marks the beginning of more accurate identification and management of erosion risks across Tairāwhiti. “The model utilises advanced technology and builds on previous regional research,” Ms Swann said. “It analyses where landslides occur and their potential to impact waterways, drawing on data collected across the region.” As a part of this work, Council remains committed to working with tangata whenua, landowners, and communities before confirming which land falls into Overlay 3B and proposing options for land management in Land Overlay 3B.

New Zealand has concluded a groundbreaking trade deal with Costa Rica, Iceland, and Switzerland, to remove tariffs on hundreds of products that benefit sustainability and the environment, Trade and Agriculture Minister Todd McClay said. Source: Timberbiz “The Agreement on Climate Change, Trade and Sustainability (ACCTS) opens up commercial opportunities for New Zealand businesses by focusing on trade in sustainable goods and services. Crucially for New Zealand, it will see tariffs removed on key exports including 41 wood products and wool. Under brand New Zealand we have a leading story to tell as to the value our wood products and timber used in construction play in addressing climate change and sustainability challenges, says Mark Ross, Chief Executive of the Wood Processing and Manufacturers Association ‘not only will this new trade agreement deliver commercial benefits for New Zealand, but it will send a strong environmental message to our trading partners’. As new countries join the collective formed by New Zealand, Switzerland, Costa Rica and Iceland, the potential to grow a commercial benefit to the wood products industry over time is significant. Wood provides multiple benefits to New Zealand, and it is positive to see the government backing our industry in removing unnecessary barriers and implementing new trade Agreements’ Mr Ross said. “Export growth will help fund the wood processing industry, with value added wood products encouraging greater onshore processing of logs, more employment in our regions, and increasing our global contribution to embodied carbon storage.” This Agreement also provides support to the renewable energy sector by establishing rules to prevent harmful fossil fuel subsides and sets guidelines for ecolabelling. Tariffs will be eliminated on over 300 environmental goods on entry into force of the Agreement, including wind and hydraulic turbines, electric vehicles, wool fibre, recycled paper, and wood products offering a more environmental alternative to carbon-intensive construction materials, such as steel and concrete. Tariff elimination will make such products more competitive, thereby incentivising use and investment in related technologies. This trade agreement is the first New Zealand has concluded with these countries outside of the WTO, and is set to deliver new, high-quality, trade opportunities while tackling climate and sustainability challenges.

Greenhill Energy and KSI Sawmills have signed a Memorandum of Understanding (MOU) to support both company’s commitment to sustainability and underpin supply of sustainable biomass at scale to Riverbend Energy Hub. Source: Timberbiz Under the MOU, subject to regulatory approvals KSI Sawmills will supply Greenhill Energy’s Riverbend Energy Hub with timber residues from its proposed new sawmill site at Monarto, in South Australia’s Murraylands region. The sawmill is currently progressing through local government development approvals and subject to receiving these approvals, is expected to commence construction in 2024 and operations in 2025. Timber for the sawmill will come from sustainably certified plantation grown sources, primarily throughout the Mt Lofty Ranges, with the timber residues from sawmill operations available for sustainable biomass supply in multiple tranches over time to match the planned development stages of Riverbend Energy Hub. Greenhill Energy Managing Director Nicholas Mumford said the proposed sawmill development would be a welcome nearby Murraylands regional partner in Greenhill Energy’s circular economy supply chain, importantly with the potential to supply certified renewable and sustainable biomass feedstock at scale. “We’re looking forward to working with KSI Sawmills. As we progress the development of Riverbend Energy Hub, we’re securing sustainable biomass sources to meet our targets to manufacture clean hydrogen, urea fertiliser and other high value products such as synthetic fuels,” Mr Mumford said. “The timber residues from a sustainable timber plantation will be another ideal and consistent source of sustainable biomass for our manufacturing plant and will provide security as we grow production in line with our staged development program. “KSI Sawmills joins our portfolio of key supply partners including Solo Resource Recovery and Peats Soil and Garden Supplies, which together broadly meet our initial feedstock design capacity requirements. KSI Sawmills’ Managing Director Victor Kyriakou said Greenhill Energy was also the perfect fit for their business. “We’re really excited to work with another sustainably driven business in the rapidly developing Murraylands region, and Greenhill Energy’s Riverbend Energy Hub shares the same commitment to the environment as we do,” Mr Kyriakou said. “We source one 100% sustainable plantation timber for our operations and the potential to have off cuts and timber residue be upcycled to assist in the production of green hydrogen is a pleasing result for our business.” Both Greenhill Energy and KSI Sawmills are working closely with Regional Development Australia to progress their projects and ensure local communities also benefit from these large-scale business investments. Regional Development Australia Murraylands & Riverland Chief Executive Ben Fee said companies working together in the region creates more opportunities and connects our region to a resilient and sustainable future. “The partnership between Greenhill Energy and KSI Sawmills is exactly the type of lateral benefits we want to encourage in the Murraylands and Riverland,” Mr Fee said. “We’re attracting some great new companies to this vibrant region and this new partnership offers great circular economy opportunities with significant social and environmental benefits. Greenhill Energy and KSI Sawmills will progress under the MOU towards more detailed feedstock supply and other arrangements as they continue to move through regulatory approval processes for their respective projects.”  

Sustainable Timber Tasmania has released the annual update to its Three Year Wood Production Plan 2024-2025 to 2026-2027 to the Tasmanian community. Source: Timberbiz The Three Year Wood Production Plan can be accessed on Sustainable Timber Tasmania’s website at www.sttas.com.au The plan identifies forest coupes across Tasmania’s public production forests that may be available across a three-year period from which a schedule of harvesting, roading and regeneration operations will be developed. The release of the plan provides the community with an opportunity to identify which forest coupes and future operations may be of interest to them. Inviting community feedback on the plan is part of Sustainable Timber Tasmania’s commitment to engaging with local stakeholders. Feedback will then be considered during detailed operational planning and decision-making processes. Sustainable Timber Tasmanian encourages the community to: Visit sttas.com.au Read the Three Year Wood Production Plan View the access map to identify which forest coupes may be of interest to them Contact Sustainable Timber Tasmania with their feedback at stakeholder@sttas.com.au or (03) 6169 2800. The Three Year Plan is developed from modelling and spatial data and includes coupe names, provisional coupe sizes (not final harvest boundaries), location coordinates, suggested harvest type and method, suggested regeneration and future use and an estimation of anticipated volumes of log products for potential recovery. The plan contains a significant amount of information, so to make it easier for people to read and understand, a spatial layer is developed and available to view on a map of Tasmania. This can be viewed on the access map on Sustainable Timber Tasmania’s website at https://sttas.com.au/ourresponsibilities/operations/three-year-wood-production-plan It’s important to understand that not all forest coupes listed in the Three Year Plan will be harvested, and final harvesting and regeneration details for each coupe may be different from what is listed in the Plan. This is because Sustainable Timber Tasmania has not yet undertaken its detailed operational planning process, including consideration of stakeholder feedback. A list of frequently asked questions regarding the Three Year Plan has been made available for reading on Sustainable Timber Tasmania’s website at www.sttas.com.au

Forest and Wood Products Australia (FWPA) is set to spearhead an initiative highlighting the advantages of timber framing in construction, promising a significant boost to its promotion efforts. Source: Timberbiz First established in the Australian Forest Products Association’s Softwood Manufacturing Chamber and funded by the Timber Framing Collective, the ‘Timber Framing: The Ultimate Renewable’ campaign will continue its success with a WoodSolutions rebrand and be managed by FWPA. To oversee the effort, FWPA has appointed former board member and Timber Framing Collective founding member, Christine Briggs, as campaign manager. Ms Briggs brings a wealth of sales and marketing experience along with a breadth of industry knowledge, ensuring the campaign’s ongoing success. FWPA’s Head of Build Environment and WoodSolutions Program, Kevin Peachey, said this campaign plays an important role in supporting the forest and wood products industry. “Timber framing is a cost-effective, long-lasting and sustainable option for framing in construction, and we believe it should remain a part of the DNA of Australian homes,” said Mr Peachey. “The timber framing industry employs over 45,000 people across the supply chain, providing significant job opportunities. By highlighting these advantages and promoting timber framing as the preferred material among builders, we can support our members and expand the market share of timber framing in Australia. “Under Christine’s guidance, FWPA can enhance its creative and strategic efforts to communicate this story to builders, developers, and the broader construction industry.” Ms Briggs expressed her enthusiasm for the campaign and the benefits it would have for suppliers, builders and consumers alike. “From bolstering jobs and the supply chain to delivering cost-effective, renewable materials and creating high-quality, durable homes, timber framing is a success story from beginning to end. “I am eager to spotlight this valuable product and highlight its essential role in Australian homes.” In addition to existing campaign funding provided by the Timber Framing Collective funding partners, FWPA has committed further investment to ensure the ongoing success of the campaign. FWPA Head of Marketing and Communications, Sarah Downey, said FWPA was uniquely placed to use its well-established reach and influence to champion this message. “FWPA’s WoodSolutions program is a recognised brand across industry, with established connections and authority in the building design and construction sector,” said Ms Downey. “By bringing the timber framing campaign under the WoodSolutions umbrella, we can expand its reach and increase funding opportunities.” FWPA began management of the campaign from 1 July 2024.