Forest Products Industry

Macedon and Mount Macedon Landcare volunteers participated in the Macedon Forest Restoration project, helping plant around 900 snow gums on Saturday 29 August. Source:  Star Weekly The project, run by the Department of Energy, Environment and Climate Action (DEECA), is helping restore the native forest to the sites of former pine plantations at Mount Macedon. Macedon and Mount Macedon Landcare president Kate Lawrence said the project is helping bring new life back to the area. “We spent the morning planting the seedlings, [which] the Landcare group had harvested from Newham snow gums, as well as some seeds that were harvested on top of the mountain,” she said. “One of the aims DEECA had … they wanted to get the snow gum subspecies from lower down so that they would be more resilient in the changing climate.” Ms Lawrence said the planting day followed last year’s planting at the Barringo Road precinct, which also part of the restoration project. The project, which saw 94 hectares of pine plantations returned to the government, is restoring the site so it can be added to the Macedon Regional Park. DEECA has fenced off the new growth to protect the trees from wildlife.

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Modern forestry machines work in some of the most demanding conditions in the off-road world. Harvesters and forwarders operate far from workshops, under rapidly changing loads and in environments where uptime, fuel efficiency and serviceability have a direct impact on productivity. Source: Timberbiz Forestry machines needs an engine designed for demanding off-road applications. “Forestry applications place very different demands on an engine than on-road applications do. The engine must respond instantly to changing loads, work seamlessly with the machine’s hydraulic and control systems, and keep it productive in conditions where downtime is costly,” said Juha Tervala, Managing Director at AGCO. Forestry places very specific demands on an engine. In a harvester, the load changes rapidly as the head feeds, delimbs and cuts timber. In a forwarder, the engine must deliver controlled power when moving heavy loads over uneven terrain, slopes and soft ground. In these conditions, reliable operation is not only about power and torque. The engine must also maintain dependable lubrication and performance when the machine is working on inclines or in tilted positions, as forestry machines often operate on uneven ground for extended periods. “Performance in forestry is created by the whole machine. The engine, hydraulics, software and serviceability must be designed as one integrated system,” said Jarno Ratia, Director of Product Management of AGCO Power. The CORE platform is designed around high torque, low engine speeds, efficiency and adaptability to different applications. Its architecture also supports future powertrain technologies such as hybridization and alternative fuels. The modular CORE family currently includes three engine options for different power requirements: the four-cylinder CORE50, producing up to 165 kW and 950 Nm; the six-cylinder CORE75, producing up to 250 kW and 1,450 Nm; and the latest variant, CORE80, rated at 252 kW with maximum torque of 1,680 Nm. In forestry, serviceability is a direct part of productivity. Machines often operate long hours and far from service locations, so routine maintenance needs to be straightforward, and downtime kept to a minimum. “Good serviceability supports both people and productivity. In cold, dark or remote conditions, a well-designed service layout makes routine maintenance more ergonomic and efficient, while helping the machine return to productive operation sooner,” said Ratia. The technical architecture of the engine also affects serviceability and reliability. CORE engines achieve low emissions without exhaust gas recirculation, or EGR, and without two-stage turbocharging. This supports a simpler engine layout and reduces the number of components in the system. Fuel efficiency, demonstrated by independent DLG PowerMix tests (test reports 7547, 7552, 7435 and 7599), is an important advantage of AGCO Power’s modern CORE engines. Although DLG PowerMix is a tractor test rather than a forestry-machine test, the results provide independent evidence of the efficiency of the CORE engine platform across different load points and engine-speed ranges. The results also demonstrate the importance of powertrain integration. Fuel efficiency is not determined by the engine alone, but by how the engine, transmission, hydraulics and software work together in the complete machine. “Lower fuel consumption immediately affects operating costs. But efficiency cannot come at the expense of response, durability or uptime. That balance is where AGCO Power’s off-road experience makes the difference,” said Ratia.

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As forestry, biomass and material handling operations seek higher productivity, maximum uptime and equipment that can adapt to diverse vehicle platforms, demand is growing for cranes that combine high performance with easy maintenance and installation flexibility.  Source: Timberbiz The new KESLA 2212-2217 truck crane series brings together these qualities in a robust solution designed for demanding loading applications on semitrailers, trucks and heavy-duty truck tractors. The KESLA 2212-2217 has been developed for intensive loading operations where productivity, reliability and ease of maintenance are critical factors. Featuring a stronger extension cylinder, larger hydraulic lines and an updated chain tensioning system, the new cranes deliver enhanced performance and durability for demanding daily use. The new crane series replaces the previous KESLA 2112-2117 models. Efficient loading performance is essential in modern forestry and material handling operations. The new KESLA 2212-2217 series features an upgraded boom and hydraulic system that enable fast, smooth and reliable crane movements. High-strength Strenx 700 steel provides an excellent combination of strength and low weight, contributing to high performance and a long service life. The protected hydraulic system further supports reliable operation in demanding conditions. For machine owners and contractors, equipment uptime is a key productivity driver. The KESLA 2212-2217 has been designed with serviceability in mind, featuring easily accessible maintenance points and practical service solutions that help reduce maintenance time and keep machines productive in the field. The KESLA 2212-2217 is designed for installation on semitrailers, articulated trucks and heavy-duty lorries and offers flexible stabilizer solutions for a wide range of applications. A choice of stabilizer beam and cylinder options allows the crane to be tailored to different operating conditions and vehicle configurations. The new FD3850 stabilizer beam system with side-swinging articulated stabilizer legs is particularly well suited for loading whole trees and utility poles, as well as for working on uneven terrain. The KESLA 2212-2217 combines performance with operator-focused design. The modern high-seat control station features ergonomic adjustments and comfort-enhancing features designed to support operators during long working days. The proC i electric control system provides precise control of hydraulic functions and allows operators to customise machine settings according to their preferences.  

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Japan’s lumber market is increasingly turning toward domestically sourced timber, with growing use of sugi (Japanese cedar) driven by government policies, maturing forest resources, and rising import costs. Source: Fastmarkets While imported spruce remains the preferred material for many structural applications, market participants said sugi is gaining acceptance in selected framing uses, aided by government initiatives promoting domestic timber. Bumpei Nishishita, president of Japanese wood products company Kyoei Lumber, told Fastmarkets that the shift toward domestic species represents a long-term structural change rather than a temporary response to market conditions. Recent developments have only reinforced the trend. Since late last year, spruce availability from Scandinavia and Eastern Europe has declined due to disease infestations and severe storms, tightening supplies of spruce while increasing the share of pine available to buyers, a species Japanese customers are generally reluctant to use. Supply constraints have been compounded by the closure of Vida’s Urshult and Orrefors sawmills in Sweden, removing around 260,000-265,000 cubic meters of annual lumber production capacity, according to Fastmarkets Q1 World Timber Price Quarterly. The Urshult facility alone produced approximately 185,000 cubic meters of spruce lumber per year and counted Japan among its core export markets. Moreover, the weak yen has continued to inflate the cost of imported wood, despite policy discussions between the United States and Japan regarding exchange-rate stability. A trader in Germany cited the maturation of Japan’s post-war sugi and hinoki (Japanese cypress) plantations, along with the need to actively manage those forests, as key drivers of long-term growth in domestic timber consumption. Japan’s wood self-sufficiency rate has more than doubled, rising from 18.8% in 2002 to 42.5% in 2024, according to government data. The country’s latest Forest and Forestry Basic Plan also targets an increase in domestic wood consumption to 42 million cubic meters by 2035 from the current 35 million cubic meters, raising self-sufficiency to 49%. The government has sought to reinforce the shift through measures including subsidies, sustainable procurement requirements and the Act on the Promotion of Wood Use in Public Buildings, which encourages greater use of domestic timber in public construction. Although interest in domestic species is growing, market participants said sugi remains a partial substitute rather than a direct replacement for imported spruce. “Japanese cedar offers exceptional natural durability, resistance to insects and mould, and a very low density of approximately 380 kilograms per cubic meter, making it lightweight and dimensionally stable for cladding and non-structural uses,” the trader in Germany said. In addition, Japanese producers “are seeing growing interest in using sugi for structural applications, including 2×4 construction,” Nishishita said. However, spruce’s higher density, stiffness and superior load-bearing capacity continue to make it the preferred choice for structural framing, studs and trusses. Additionally, while regional builders, architects and companies involved in certain non-residential timber projects tend to be more receptive to using sugi, price, quality, drying, structural performance and supply reliability remain important considerations, according to the Kyoei Lumber president. “Domestic origin alone is not enough reason for customers to switch materials,” he said. Market participants said Japan possesses significant forest resources, but increasing domestic wood consumption will require improvements across the forestry supply chain. More than 10 million hectares of planted sugi and hinoki forests exist across the country, with about 60% already mature enough for harvesting, the German trader said. However, labour shortages, fragmented forest ownership and weak forestry profitability continue to constrain output. “The challenge is not simply the volume of standing timber,” Nishishita said. “We need a stronger supply chain from the forest to the building site, including harvesting, sawmilling, kiln drying, quality control and logistics.” One area for improvement is meeting the rigorous sub-20% moisture-content standards expected by modern pre-cut housing manufacturers, a requirement that has historically constrained supply. Nishishita said current subsidies for locally sourced wood should be viewed as a starting point rather than a long-term solution for encouraging domestic sourcing. “The market becomes sustainable only when builders continue to choose domestic timber without subsidies because it is competitive, reliable and easy to use,” he said. “Japanese sugi should not only replace imported wood. It should become a material that the world chooses for its own value.” While sugi is unlikely to fully displace imported spruce in high-strength applications, government support, maturing forest resources and investment in the forestry supply chain are expected to expand its role in the years ahead.

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Recent data from the Clean Energy Regulator shows a significant increase in Australian Carbon Credit Units (ACCUs) and Safeguard Mechanism Credit retirements, alongside a decline in SMC issuance — reinforcing that compliance demand is strengthening as baselines tighten. Source: Timberbiz In practical terms, this means many large emitters are relying more heavily on carbon credits, with fewer internal or lower-cost alternatives available, and there is increasing pressure to secure supply ahead of further tightening. This shift is sharpening focus not just on accessing ACCUs, but on securing the right types of credits — those that can withstand regulatory scrutiny, support disclosure obligations and align with long-term decarbonisation strategies. And it’s in this environment that plantation forestry ACCUs are attracting growing interest. Plantation forestry is not new to the Australian economy. It underpins an approximately $25 billion renewable manufacturing sector and has operated within a corporate and regulatory environment for decades. The industry supports the production of construction timber, pulp and paper, and packaging and fibre products — all of which play a critical role in housing supply, domestic manufacturing capability and regional employment. It also contributes to climate outcomes through carbon sequestration and the substitution of more emissions-intensive materials. Billie Jones, SFM’s Carbon Projects Manager, says the emergence of plantation forestry in the carbon market is a natural extension of this established role. “Plantation forestry has always delivered across multiple dimensions — economic, environmental and regional. What we’re seeing now is the formal recognition of its carbon value within a regulated framework,” Ms Jones said. “For corporate buyers, that’s important. These are not one-off projects — they’re part of an established industry with real assets, long-term management and well-understood systems.” Under the ACCU Scheme’s plantation forestry method, eligible activities can generate carbon credits by increasing the amount of carbon stored in plantation forests. This includes practices such as transitioning to longer-rotation plantations, maintaining forest cover where it might otherwise be lost, or establishing permanent forest outcomes where appropriate. These projects operate under legislated rules, with defined accounting approaches and requirements for monitoring, reporting and where required, independent audit. According to SFM Managing Director Strategy, Risk and Trading David Wise, this level of structure is becoming increasingly important for corporate buyers. “There is a growing expectation that companies can clearly explain and stand behind the offsets they use,” Mr Wise said. “Plantation forestry ACCUs sit within a regulated Australian framework, with defined methodologies and reporting requirements. That gives buyers a level of transparency and confidence that is increasingly valued.” As demand for ACCUs grows, so too does scrutiny around credit quality and availability. At the same time, international carbon markets continue to develop — including through mechanisms under the Paris Agreement’s Article 6 — but are not yet delivering consistent global standards or supply certainty. This is placing greater emphasis on domestic ACCUs, particularly those that can meet both compliance needs and rising expectations around integrity. Mr Wise notes that this is changing how organisations approach procurement. “We’re seeing a shift toward more deliberate, forward-looking strategies,” he said. “It’s not just about sourcing volume. It’s about securing the right credits, in the right structure, with a clear line of sight to delivery and disclosure.” While high-quality ACCU projects are being developed, connecting that supply with the right corporate buyers — under the right commercial structures — remains a key challenge in the market. SFM is working in partnership with leading Australian carbon platform, Clima to address this. Clima specialises in carbon market advisory and transaction services, operating across project origination, corporate procurement and secondary market activity. Clima’s Managing Director, Guy Dickinson says this role is becoming increasingly important as the market matures. “Large emitters are managing complex, multi-year compliance obligations, often alongside significant reputational considerations,” Mr Dickinson said. “What we do is help translate carbon supply into structured procurement strategies — whether that’s long-term offtake agreements, portfolio construction or market access — so that buyers can secure ACCUs in a way that is both cost-effective and defensible.” Through this partnership, SFM’s plantation forestry projects are being brought to market and matched with corporate buyers seeking compliance-grade carbon supply. There is also a timing dimension that is becoming increasingly relevant. As Safeguard Mechanism baselines decline through to 2030, demand for ACCUs is expected to increase. At the same time, the availability of higher-integrity, domestically generated credits remains finite. This dynamic is encouraging some organisations to move earlier — securing supply through forward agreements rather than relying on spot market availability. Mr Dickinson notes that this approach is increasingly being viewed through a risk management lens. “For many buyers, the question is no longer whether they will need ACCUs — it’s when and under what conditions they secure them,” he said. “Taking a structured approach now can provide greater certainty on price, availability and quality over time.” As Australia’s carbon market becomes more sophisticated, procurement decisions are becoming more nuanced. Buyers are placing greater emphasis on how credits are generated, how they are verified, and how they can be justified within internal governance frameworks and external disclosures. Plantation forestry ACCUs — grounded in a legislated methodology and linked to an established domestic industry — represent one pathway that is gaining traction in this environment. “The market is moving toward greater transparency and accountability. In that context, the ability to demonstrate where your carbon credits come from, how they’re generated, and how they fit within your broader strategy is critical, Mr Wise said. As the market continues to develop, closer engagement between project proponents, intermediaries and corporate buyers will play an important role in ensuring that supply and demand are effectively aligned. Through its partnership with Clima, SFM is working to facilitate that connection — helping ensure that high-integrity plantation forestry ACCUs are accessible to the organisations that need them.

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A fatal incident near Dannevirke in New Zealand is a reminder that forestry businesses must verify worker competence, provide effective inductions and supervision, and have robust systems for people working alone. Source: Timberbiz Trevor Beale was prosecuted by WorkSafe New Zealand after his employee Tejay Alan Debenham died while felling trees at a rural property on Weber Road on 17 November 2023. Mr Debenham was working alone and unsupervised when a tree limb struck him causing him to fall off a nearby cliff. The site contained multiple high-risk hazards, including large wind-affected trees, suspended and interlocked branches, restricted escape routes, and trees growing close to an eroded cliff edge. In the Dannevirke District Court on Monday 7 September Mr Beale was ordered to pay NZ$254,740 in reparation to Mr Debenham’s family as well as legal costs of NZ$1,000 and was fined NZ$5,000. WorkSafe’s Central Region Manager, Nigel Formosa, says the lessons to be learned extend well beyond this case. “Tree felling is high-risk work. Before it begins, businesses must know who is competent to do it, what supervision is required, and how the site’s hazards will be controlled. Taking someone’s word for their training or experience is not enough,” he said. “An induction must be more than a conversation. It should be structured, documented and checked for understanding, with clear task limits and controls that are reinforced throughout the work. “If a worker is inexperienced or not yet competent, they must receive training and close supervision. High-risk work must not proceed simply because the usual supervisor is unavailable. “Where people work alone or remotely, businesses need a reliable check-in and check-out system that reflects the level of risk, assigns responsibility for monitoring, and triggers action if contact is missed. Those arrangements must be confirmed – not assumed.” The prosecution identified four reasonably practicable steps that were not taken: confirming Mr Debenham’s experience, training and qualifications; completing an adequate induction; ensuring appropriate supervision; and putting an adequate check-in and check-out procedure in place. Forestry businesses should review whether their systems work in practice. This includes documenting worker competence, reassessing hazards when conditions or personnel change, using mechanised felling where reasonably practicable, ensuring a competent person is in charge, and stopping work when the required controls or supervision are not available.

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