Australian timber industry news
Europe’s forests losing more biomass since 2018
Europe’s forests are losing more biomass than previously thought, with disturbances such as drought and pests causing increasingly large losses from some of the oldest forests in Europe. This situation has deteriorated markedly since 2018. Source: European Space Agency These are the findings of a study published in Nature Geoscience. The research, which was supported by a European Space Agency (ESA) initiative, found that biomass losses increased sharply after 2018 as drought, windstorms and insect outbreaks increasingly affected some of central Europe’s oldest and most biomass-rich forests. The study was supported by the ESA Climate Change Initiative through its RECCAP-2 project, an international effort that uses satellite-based climate datasets to support the Paris Agreement’s Global Stocktake. For the first time, scientists have quantified how much biomass is lost from forest disturbances across Europe, rather than simply measuring the area affected. They found that, for each hectare of disturbed forest, 46% more biomass is being lost since 2018. Europe’s forests cover about 39% of its land area and store 10.6 billion tonnes of carbon in above-ground biomass, for example in their leaves, branches and trunks. This is one of Europe’s largest terrestrial carbon stocks. However, between 1985 and 2023, disturbances such as wildfires, pests and logging caused an estimated total of 6.5 billion tonnes of above-ground biomass to be lost across Europe, although a substantial share of these losses has since been offset by forest regrowth. For decades, scientists have assessed the impact of forest disturbances by measuring the area of land affected. But area alone does not accurately quantify biomass losses. A wildfire, for example, can sweep across a large area of open, shrubby Mediterranean woodland yet remove relatively little biomass, whereas a similar area of dense, mature forest would suffer far greater losses. This study is the first to measure not just where Europe’s forests were lost, but how much biomass disappeared along with them – across the whole continent and over a period of nearly four decades. “What surprised me most was how differently disturbances translate into biomass loss across Europe. Two events can look almost identical on a map yet have very different implications for the amount of carbon stored in forests. Until now we’ve largely been flying blind on that difference,” said Katja Kowalski, lead author of the paper and a postdoctoral researcher in the Earth Observation for Ecosystem Management group at the Technical University of Munich. The study combines two satellite records: annual maps of tree cover loss across Europe derived from the Landsat archive and a high-resolution biomass map for 2019, showing how much biomass each forest held per unit area. Overlaying the two, the team reconstructed how much biomass Europe’s forests have actually lost, year by year. The results reveal a clear break around 2018, when severe droughts affected countries across central Europe, notably Germany, the Czech Republic and Poland. The droughts left trees weaker and less able to defend themselves, triggering mass outbreaks of the European spruce bark beetle, which bores into the bark and can kill a mature tree within weeks. While logging accounted for about 82% of biomass loss between 1985 and 2023, the remaining 18% loss caused by natural disturbances drove the sharp rise since 2018. A second study, also supported by the RECCAP-2 project has produced complementary findings. Published in National Science Review, the study found that increasing loss and damage to forests is putting their role in climate change mitigation at risk. By combining national forest reports with satellite maps of disturbance and biomass, including the biomass dataset from ESA’s Climate Change Initiative, the team projected how Europe’s forest carbon sink is likely to evolve to 2030. They found that the capacity of European forests to absorb and store carbon is likely to have decreased by 39% in the period 2010 to 2030. This is due to disturbances that far outpace the ability of forests to naturally regrow and recover. “Europe can increase its forest area but still lose carbon sink capacity. The real question is whether growth and recovery can keep up with disturbances and harvest. Right now they can’t – and closing that gap means managing our forests differently, above all by harvesting less as natural disturbances keep rising,” said Philippe Ciais, from France’s Laboratory of Climate and Environmental Sciences, co-author of the National Science Review study and overall science leader of ESA’s RECCAP-2 project.
The post Europe’s forests losing more biomass since 2018 appeared first on Timberbiz.
Carbon flows could ramp up when a tree is dying
There’s an invisible world humming beneath our feet. Under forests, a vast network of fungal filaments connects the roots of trees – a subterranean road system for resources. Isotopic labelling experiments have proven that carbon does travel from one tree to another along these fungal highways, even between species that, on paper, are fierce competitors. Some studies suggest these carbon flows ramp up when a tree is in decline. Source: Futura Sciences This underground system, known as a mycorrhizal network, forms when the roots of two plants are colonized by the same fungus. The resulting mycorrhizae branch out in the earth, weaving a meshwork of hyphae – filaments that extend from the roots and sometimes connect entirely different species. Biologists have playfully dubbed this hidden life-support system the Wood Wide Web. The scale is dizzying: several hundred species of fungi can interact with a single tree, and a single fungus might connect 20 trees or more. Climate change is moving the goalposts for these relationships. As the planet warms, biodiversity is on the move, not just animals, but plants and entire forests. But will the fungi these trees depend on for survival be able to keep pace? Scientists are raising the alarm. As mycologist Marc-André Selosse of the Natural History Museum puts it, this relationship is about barter, not generosity. Trees supply fungi with sugars made through photosynthesis; fungi, in turn, improve trees’ access to water and minerals. Each partner gets something it desperately needs, this isn’t charity, it’s symbiosis. The Canadian researcher Suzanne Simard put all this on the scientific map back in 1997, publishing in Nature a landmark study documenting carbon transfer between trees via mycorrhizal networks under natural conditions. Her work shifted the focus of forest biology, which had until then zeroed in on competition for light and water, toward the possibility of cooperation. In the 1990s, isotope tracing experiments using enriched carbon dioxide on young birch and Douglas fir trees colonized by the same ectomycorrhizal fungus allowed researchers to quantify these exchanges. The measurements revealed two-way sharing, but with a net flow towards Douglas fir. The carbon received amounted to 10–25% of the fir tree’s photosynthetic output. In a similar experiment in Switzerland’s Jura forests, about 4% of the carbon compounds made by photosynthesis in one tree were transported to neighbours connected to the same ectomycorrhizal network. Within this underground web, mature trees that are strongly connected—sometimes called ‘mother trees’ hold a central spot. An old oak or Douglas fir can be tied into the network with hundreds of neighbours. Simard’s research at the University of British Columbia found that carbon transfers intensify during a large tree’s final days, with a share of its reserves ending up in neighbouring trees. But the picture isn’t as simple as a selfless bequest. Several mechanisms have been proposed to explain these transfers, none of which involve intention on the part of the tree. The first explanation is physical: carbon moves much more efficiently through the fungal mycelium than it does via the surrounding raw soil, where it would otherwise be gobbled up and transformed by microbes. As a tree nears the end of its life, it gradually stops mobilizing its own reserves for growth. As its internal carbon sinks collapse, unused carbon follows the network’s gradients to still-active neighbours. A 2025 study in Plant Diversity adds another layer of complexity. When researchers artificially reduced the carbon available to a loblolly pine (Pinus taeda), they saw a drop in root physiological activity, accompanied by a 110% increase in mycorrhizal colonization and a 340% increase in extramatrical hyphal length. In other words, when the tree struggled, its fungal partners ramped up their game. The upshot? This could suggest a fungal drive for survival more than any plant altruism. The fungus, keen to safeguard its own sugar supply from still-living trees, could be the middleman behind the so-called “final gift.” The practical effect on the ecosystem is the same, but the motive is strictly practical, not sentimental. The idea of trees selflessly supporting their kin is charming—but is it the full story? In 2023, Justine Karst, Melanie Jones, and Jason Hoeksema published an analysis in Nature Ecology & Evolution concluding that the real-world data is far thinner than public stories suggest, and that preliminary or heavily qualified results have often been cited as gospel truth. That same year, Nils Henriksson’s team cautioned in New Phytologist that isotope tracing methods, while fascinating, can sometimes lead to bold conclusions from tiny variations. There is no disagreement about the existence of mycorrhizae and their critical role in protecting and nourishing roots, nor about carbon circulation between plants. The debate boils down to the scale of these flows, the precise function of the network, and the real benefit for young trees. Still, these underground mechanisms help explain an old puzzle: seedlings often survive in deep forest shade, where photosynthesis alone ought to doom them. Something more is at work, a hidden helping hand from below. Deforestation, intensive farming, and the widespread use of chemicals disrupt or destroy these networks. Clear-cutting not only removes trees—it also dismantles the very infrastructure that supports resource sharing. A recent global map shines light on this immense hidden living network, revealing the dizzying scale of mycorrhizal fungi, plant allies that move billions of tons of carbon each year and could play a key role in climate regulation. There is no disagreement about the existence of mycorrhizae and their critical role in protecting and nourishing roots, nor about carbon circulation between plants. The debate boils down to the scale of these flows, the precise function of the network, and the real benefit for young trees. Still, these underground mechanisms help explain an old puzzle: seedlings often survive in deep forest shade, where photosynthesis alone ought to doom them. Something more is at work, a hidden helping hand from below.
The post Carbon flows could ramp up when a tree is dying appeared first on Timberbiz.
APEC Experts Group at illegal logging meeting in China
PEFC participated in the APEC Experts Group on Illegal Logging and Associated Trade (EGILAT) meeting in Shenzhen, China, reaffirming its commitment to advancing legal and sustainable timber trade across the Asia-Pacific region. Source: Timberbiz The EGILAT meeting was held alongside the sixth APEC Ministerial Meeting on Forestry, where forestry ministers and senior representatives from 21 APEC economies renewed their commitment to tackling illegal logging, expanding legal timber trade, and accelerating the adoption of digital technologies to strengthen timber traceability and market confidence. Ministers and senior representatives called for stronger action to protect the Asia-Pacific forests, warning that illegal logging, mangrove loss and rapid urban growth are putting one of the region’s greatest economic assets under pressure. Representing PEFC, APAC Market Development Manager Benson Yu delivered a presentation titled “PEFC: Shaping the Future of Sustainable Forest Management.” The presentation highlighted how PEFC certification supports legal timber trade through independently verified sustainable forest management, chain of custody certification, and robust due diligence solutions that help companies meet evolving regulatory and market requirements. Mr Yu also reaffirmed PEFC’s commitment to supporting EGILAT’s work in promoting legal and sustainable timber trade across the Asia-Pacific through continued collaboration, technical engagement, and knowledge sharing. As a long-standing observer to EGILAT, PEFC continues to contribute expertise on forest certification, traceability and responsible sourcing to support the group’s objectives. “China plays a pivotal role in global forest product supply chains. By working together through platforms such as EGILAT, we can strengthen market confidence, promote legal timber trade, and accelerate the transition towards more sustainable and resilient forest value chains,” Mr Yu said. The discussions at both the Ministerial Meeting and EGILAT recognised the increasing role of digital technologies – including artificial intelligence, DNA profiling and blockchain – in improving timber traceability and helping businesses demonstrate the legal origin of forest products. Ministers also highlighted the importance of practical tools such as the Timber Legality Guidance Template, developed through EGILAT, to assist businesses in navigating timber legality requirements across APEC economies. Illegal logging is estimated to account for 15–30% of the global timber trade, resulting in economic losses of approximately US$51 billion annually. Strengthening legal supply chains through credible certification, digital innovation and international cooperation remains essential to protecting forests, supporting responsible businesses and maintaining market confidence. PEFC looks forward to continuing its collaboration with APEC economies and EGILAT members to strengthen sustainable forest management, enhance timber legality, and promote resilient, transparent and responsible forest product supply chains throughout the Asia-Pacific region.
The post APEC Experts Group at illegal logging meeting in China appeared first on Timberbiz.
Nationals candidate says Labor must fix firewood shortages
Gippsland East Nationals’ candidate, Gemma Rendell, has called on the Victorian Labor Government to address worsening firewood shortages in East Gippsland, saying vulnerable residents are paying the price for the closure of the native timber industry. Source: Timberbiz “I’m a strong advocate for the timber industry, my family worked in it for years and I was pleased to hear our leader, Danny O’Brien, say last week we will bring it back and eagerly await the formal announcement. “The Labor government created this situation through its forestry decisions and now has a responsibility to ensure people, particularly elderly Victorians, can still access affordable firewood,” Ms Rendell said. Current Nationals’ MP, Tim Bull, raised the case of an 84-year-old Marlo resident who is unable to collect his own firewood and now faces significantly higher costs simply to heat his home. “For decades local businesses served these communities, but with the closure of the native timber industry the wood supplies have dried up. “This gentleman’s nearest available provider is now Bairnsdale, and the transport costs are almost as much as the firewood itself.” Mr Bull said this was not an isolated case, and many smaller communities were now experiencing similar difficulties. He has asked the Minister for Environment what measures are being put in place to ensure communities have reliable and affordable access to firewood. “No Victorian should struggle to keep warm because government policy has removed their local supply.”
The post Nationals candidate says Labor must fix firewood shortages appeared first on Timberbiz.
Opportunities for improved firefighter safety
Firefighter safety in Australia requires urgent attention as forest structure, fuel loads and fire behaviour shift toward more dangerous conditions. Past crown fires have created dense shrub dominated understoreys, abundant dead wood, reduced height stratification and continuous vertical and horizontal fuel pathways. Source: John O’Donnell These changes favour highly combustible species, replace grassy forest types and generate higher fuel loads, easier crown access and more uniform landscape connectivity. The result is greater intensity, severity and duration in subsequent fires and a recurring cycle of extreme bushfire behaviour that significantly increases firefighter risk. O’Donnell (2023) identifies 21 major firefighter safety concerns across southeastern Australian forests. These include insufficient prescribed burning, inadequate resilient forest management, unsafe access and evacuation routes, poorly located water supplies, ineffective suppression techniques, declining backburning expertise, misuse of aircraft, under adoption of safety technologies, loss of local knowledge, hazardous smoke exposure, declining skilled workforce and other concerns. O’Donnell (2025a) further argues that failures in mitigation, policy and accountability force crews into long unburnt, high fuel forests where flame heights, spotting distances, tree fall hazards and poor access routinely exceed safe suppression thresholds. It is noted that dense understorey fuels and dead timber represent major hazards across southeastern Australia and that future bushfires under bad weather and drought conditions will likely be of high intensity, high severity and long duration, making firefighting extremely difficult. Prescribed burning is central to reducing these risks. Burrows and Sneeuwjagt (2020a) emphasise that fuel reduction burning makes fires slower, less intense and far easier and safer to suppress. Long unburnt eucalypt forests accumulate deep layers of dead fine fuels exceeding 50 t/ha, dramatically increasing flame height, spotting potential and suppression difficulty. Historical data from southwest Western Australia show wildfire extent escalates when annual fuel reduction falls below about 8% of the landscape. Burrows and Sneeuwjagt (2020b) highlight that prescribed burning expands the suppression window, reduces flame height and spotting, improves access and egress, creates anchor points and enables safer backburning and rapid containment line construction. Recent research reinforces the dangers of high severity and repeat fires. Barker and Price (2018) show that high severity fire produces structural legacies that increase the probability of extreme severity in the next fire, creating a positive feedback loop. Barker et al. (2021) demonstrate that high severity fires produce denser midstorey fuels and reduced canopy cover, increasing vertical fuel continuity and crown involvement. Kasel et al. (2024) highlight that short interval, high severity wildfires deplete diversity, alter species composition and increase flammability, exposing resilience debt and driving long term ecological instability. van Wagtendonk et al. (2012) show that reburn severity reflects combined legacies of fire history, vegetation structure and weather. The review also incorporates international safety insights. Kantor et al. (2026) provide quantitative data linking specific fire management activities to injury frequency and severity, showing that many injuries arise from environmental hazards rather than unsafe behaviour. The Wildland Fire Lessons Learned Centre provides extensive incident data on medical events, tree strikes, entrapments, vehicle incidents, heat illness and aviation incidents. Gabbert (2016) shows that medical issues, aircraft accidents and vehicle accidents each contribute more fatalities than entrapments, but the latter is a major issue. Section 10 outlines 54 opportunities to improve firefighter safety, including explicit fuel reduction targets, ridge top burning, dead timber treatment, improved access and egress, statutory safety objectives, independent oversight, enhanced training, updated suppression doctrine, entrapment avoidance procedures, tree hazard assessments, contingency planning and national aviation operating procedures. Read the full firefighter safety review here.
The post Opportunities for improved firefighter safety appeared first on Timberbiz.
Graduates under the PALMS program
Twenty-four staff members from Parkside Group’s Wandoan, Theodore and Wondai Mills have graduated from the FWP30322 Certificate III in Timber and Wood Products Operations traineeship under the Pacific Australia Labour Mobility Scheme (PALMS) program. Source: NTHA The PALMS workers, who are from Tonga, arrived in Australia from March 2024 as part of an up to four-year program. They completed their chainsaw units in June, finalising their traineeships and achieving their timber industry qualification. Parkside Group has been a great supporter of the PALMS workers program and NTHA Training, providing living, employment and training opportunities for these workers to develop their skills and experience within the timber industry. The program provides workers with valuable skills they can eventually take back to Tonga and implement within their own communities and workplaces. Parkside also places strong value on the ongoing upskilling of its Australian workforce, supporting employees through traineeships and qualification training, including the FWP30322 Certificate III in Timber and Wood Products Operations and BSB40520 Certificate IV in Leadership and Management. Parkside has welcomed regular intakes of PALMS workers since 2023, including workers from Samoa and Tonga. From NTHA Training’s perspective, the trainees have been extremely keen, appreciative and a pleasure to train and work with throughout the program. Dave Milard from Parkside Group has been instrumental in getting the program up and running and supporting its ongoing success. The partnership highlights the value of industry-led training programs in creating employment pathways, developing skills and supporting workforce capability across the timber industry.
The post Graduates under the PALMS program appeared first on Timberbiz.
Stephen Green retires from Tigercat after 26 years of service
Stephen Green is retiring from Tigercat, ending an accomplished career spanning 26 years of support for the Tigercat product throughout Australasia, particularly Australia. His retirement marks the conclusion of a career defined by technical expertise, customer focus, and a genuine passion for the forestry industry. Source: Timberbiz Mr Green’s connection with Tigercat began long before he officially joined the company. For eight years, he supported Tigercat equipment through former dealer Forest Centre, developing a deep understanding of both the products and the people who relied on them. He formally joined the Tigercat support team on 1 August 2008, beginning what would become 18 years of dedicated factory support service. Throughout his career, Mr Green earned a reputation for professionalism, loyalty, and practical problem-solving. Whether assisting dealers with technical challenges, supporting operators in the field, or helping customers maximize machine performance, he became a trusted resource throughout the region. “I have been fortunate to spend my career working with outstanding customers, dealers, and colleagues across Australia and New Zealand,” said Mr Green. “The forestry industry is built on strong relationships, and I am grateful for the many friendships and experiences that have made this career so rewarding. I would like to thank everyone who has been part of the journey and wish the Tigercat team continued success in the years ahead.” Over the years, Mr Green became a familiar face across the Australian forestry sector, serving as an important link between customers, dealers, and the factory. His commitment to providing responsive, hands-on support reflected the customer-first approach that has long been central to Tigercat’s success. As Tigercat continues to strengthen its support presence throughout Australia, Mr Green’s responsibilities will be shared among the existing Australian-based team, including Damien Ambrose, Jake Peters, and Warren Nolan, who will continue assisting customers and dealer partner Onetrak. After 26 years supporting the Tigercat brand and 18 years as a factory representative, Mr Green leaves behind a legacy of dedication, integrity, and service excellence. His contributions have helped strengthen Tigercat’s reputation throughout Australasia and positively impacted customers, dealers, and colleagues alike. “Steve’s professionalism, passion, and commitment to customers, dealers, and the Tigercat team has left a lasting impression across the Australasian forestry industry,” said Glen Marley, Tigercat District Manager, Australia and New Zealand. As he begins the next chapter of life, everyone at Tigercat extends sincere thanks for his years of service and wishes Mr Green, his wife Liz, and their family many years of health, happiness, and fulfillment in retirement.
The post Stephen Green retires from Tigercat after 26 years of service appeared first on Timberbiz.
Pan Pac Exporter of the Year
Pan Pac was awarded Hawke’s Bay and Tairāwhiti Exporter of the Year at the ExportNZ ASB Hawke’s Bay Export Awards 2026 held on 6 August. Source: Timberbiz The company said that winning Exporter of the Year was a tremendous honour and a win for all staff for their hard mahi over the past three years, as well as the contractors and suppliers who supported us. The Exporter of the Year award is given to a business that has demonstrated sustained and outstanding performance and results in terms of: Earnings, growth and profit Leadership and direction Excellence in marketing Strategy and business planning Commitment to quality management Governance. Managing Director Tony Clifford said the award recognised all the people who have supported Pan Pac, including employees, contractors and all the other links in our supply chain, including NZTE, Chamber of Commerce, Port of Napier, and PWC, who contributed to Pan Pac’s ability to make and sell to export markets. He noted that all business is challenging but exporting has extra challenges that are often out of your control such as currency movements, shipping costs, and tariffs, but the effort is worth it in the end. The award judges recognised Pan Pac’s ability to rebuild export momentum following Cyclone Gabrielle, despite its mill being closed for 12 months. They said Pan Pac stood out as an established exporter that had returned to global markets with focus and ambition, supported by strong customer relationships, an integrated forest products model, and a disciplined approach to rebuilding supply. ExportNZ Regional Manager Amanda Liddle said Pan Pac’s success demonstrated the strength of the region’s export sector. “Pan Pac’s story is one of resilience, scale, and ambition. The team has recovered from significant disruption and returned to global markets with real focus, while continuing to make a major contribution to Hawke’s Bay and New Zealand,” she said.
The post Pan Pac Exporter of the Year appeared first on Timberbiz.
FWCA takes Four Corners complaint to ACMA after ABC clears itself
Forest & Wood Communities Australia (FWCA) has escalated its complaint about ABC Four Corners’ Timber Turmoil to the Australian Communications and Media Authority, after rejecting the ABC Ombudsman’s finding that the broadcast did not breach the ABC Code of Practice. Source: Timberbiz FWCA Chair and Director Steve Dobbyns said the Ombudsman’s decision failed to deal with the substance of the complaint and set an unacceptably low bar for accuracy, impartiality and fair dealing. “The ABC has effectively marked its own homework and declared there is nothing to see,” Mr Dobbyns said. “FWCA rejects that conclusion. Timber Turmoil was not balanced, rigorous or properly contextual journalism. It was an activist-framed prosecution of Australian native forestry.” FWCA is asking ACMA to review whether the broadcast complied with the ABC Code of Practice, including requirements that material facts be accurate and presented in context, that news and information be presented with due impartiality, and that organisations subject to damaging implications be dealt with fairly. Mr Dobbyns said one of the clearest failures was the treatment of Professor David Lindenmayer. “Four Corners presented Professor Lindenmayer as a leading forest ecologist and the principal scientific authority in the story,” he said. “But viewers were not given a careful scientific explanation of contemporary regulated native forestry. They were given highly charged opinion – including claims that native forestry is a ‘zombie industry that just won’t die’ and that the industry had ‘raped and pillaged the forests of Victoria’. “Those are not neutral scientific findings. They are emotive, activist-style characterisations. “If Four Corners was going to give that commentary the authority of science, it had an obligation to test it against equivalent scientific evidence from forest scientists, silvicultural experts and practitioners with direct knowledge of modern regulated harvesting, regeneration, threatened species prescriptions, certification and regrowth management. “It did not.” Mr Dobbyns said the Ombudsman appeared to accept that comments from a politician and a timber business representative were enough to balance Professor Lindenmayer’s scientific authority. “That is plainly inadequate,” he said. “A politician or business owner referring to sustainable forestry is not an equivalent scientific response. “Balance is not achieved by counting heads. It depends on authority, airtime, sequencing, imagery, tone, framing and whether the strongest claims from each side are properly tested.” FWCA said the program gave anti-forestry and activist voices the narrative momentum, emotive imagery and dominant storyline, while forestry voices were often placed in defensive or limited roles. Mr Dobbyns said production correspondence also raised concerns about the program’s editorial approach. “In an email to Timber NSW Chair Andrew Hurford before the program aired, the Four Corners reporter referred to him as a ‘formidable opponent’,” he said. “We do not rely on that phrase in isolation, but it is consistent with the broader concern that industry representatives were approached as adversaries, not as principal stakeholders whose evidence deserved fair examination.” FWCA also refers to Timber NSW’s account that the Four Corners team repeatedly sought to have Mr Hurford say “End native forestry” to camera before adding his own comments. “If accurate, that suggests an attempt to manufacture a loaded broadcast moment rather than fairly elicit the industry’s position,” Mr Dobbyns said. FWCA said the treatment of Australian Sustainable Hardwoods was another serious concern. “The program told viewers Victorian taxpayers had put ‘more than $110 million into ASH’,” Mr Dobbyns said. “That figure bundled together very different categories of money to create the most damaging number possible. “ASH has publicly stated it did not receive $61 million in 2017, but $3 million applied to union-negotiated redundancy entitlements, leaving it with a net position of zero. “ASH has also stated the $49 million referred to in the program was not a subsidy, but a contractual failure-to-supply penalty arising from the Victorian Government and VicForests failing to meet agreed timber supply obligations. After tax, ASH says the actual amount received was $34 million, and every cent of it, and more, was reinvested into stock, jobs, plant, equipment and manufacturing capability. “The ABC should have clearly distinguished between subsidies, contractual penalties, shareholder transactions, grants, redundancy payments, tax and reinvestment. It did not. “If a program uses forensic accounting commentary, the public is entitled to expect forensic precision. That did not happen.” FWCA said the broadcast also failed to properly examine import leakage – the central environmental consequence of shutting down Australian native timber supply. “Closing Australian native forestry does not make timber demand disappear,” Mr Dobbyns said. “Research by Venn, Huang and Lachhwani indicates that for every 1,000 cubic metres reduction in Australian native forest sawlog production, Australia imports approximately 813 cubic metres of solid wood products to replace it. “In other words, more than 80 per cent of reduced domestic supply is effectively replaced by imports. “As Timber Turmoil itself illustrated, closing Australian native forestry does not end demand; it displaces much of that demand to other jurisdictions.” Mr Dobbyns said Australia already imports timber from countries with weaker forest governance, higher deforestation risk, poorer legality controls and less transparent supply chains. “If the ABC is going to present native forestry closure as an environmental good, it must examine where replacement timber comes from, what standards apply there, and whether Australia is simply exporting harvesting pressure, biodiversity risk, carbon emissions and legality concerns to other nations,” he said. “Mentioning import concerns in passing is not enough. A principal counterargument must be investigated, tested and weighed.” FWCA said the program also failed regional workers and communities. “Workers, contractors, truck drivers, forestry families, mechanics, sawmill towns and small businesses were treated as background scenery in a story about their own future,” Mr Dobbyns said. “Four Corners found time for activists, log chasing, dramatic imagery and highly charged commentary. It should have found time for the workers and communities whose livelihoods were being judged.” FWCA is asking ACMA to review whether Timber Turmoil breached the ABC Code of Practice and is calling on the ABC to publish a clarification on the ASH financial figures, provide a genuine right of reply […]
The post FWCA takes Four Corners complaint to ACMA after ABC clears itself appeared first on Timberbiz.
Tas government committee to investigate the sale of Rushy Lagoon
The Tasmanian Government will move to establish a Select Committee to interrogate the sale of Rushy Lagoon in Parliament this week. Source: Timberbiz The proposed Select Committee will inquire into matters including the influence of Commonwealth funding on the sale, the extent to which Commonwealth funding facilitated the conversion of productive agricultural land in Tasmania to carbon sequestration, and the transparency around the process. Premier Rockliff said the Federal Government’s role in funding and approving the sale of Rushy Lagoon needs further scrutiny. “Rushy Lagoon has long been recognised as one of Tasmania’s premier agricultural enterprises, supporting jobs, regional economic activity and food production,” Premier Rockliff said. “Our government is a strong supporter of the forestry industry, however, there is genuine community concern about the implications of this sale, how it happened and what it means for productive agricultural land across our State. “Tasmanians want confidence that strategic farming assets will remain available to support food production, regional communities and future generations of farmers. “The Parliament has an important role to play in this – it is incredibly serious for the future of Tasmania.” Minister for Primary Industries and Water, Gavin Pearce, said we have been working with and listening to TasFarmers and the broader agricultural community. “TasFarmers, producers and regional communities have been very upfront about their serious concerns about the future of this highly productive agricultural land,” Minister Pearce said. “We need answers to questions about the impact on food production, agricultural employment, regional investment and opportunities for future agricultural ownership. “There are serious questions that need serious answers, and it should be a line in the sand for Labor, will they keep running protection for their overlords in Canberra? “Tasmania’s agricultural land is one of our most valuable strategic assets and it is important that Parliament examines whether we have the right settings in place to protect our long-term agricultural interests. “This inquiry is about ensuring Tasmanians can have confidence that decisions impacting our most significant agricultural assets are being properly scrutinised and that the interests of regional communities are being considered.”
The post Tas government committee to investigate the sale of Rushy Lagoon appeared first on Timberbiz.
History repeats itself in France’s smouldering forests
History keeps repeating itself in the smouldering forests of southwest France, now ash-covered and charred. Sources: The Associated Press and Mark Carlson, Toronto Star Devastated by previous blazes in 2022 and 1949, when 82 people died, the largest human-made woodland in Western Europe has again been ravaged by wildfires which burned an area four times the size of Paris. The forests of Les Landes — covering 10,000 square kilometres (3,860 square miles) were created in the 19th century for timber and resin production. They comprise endless rows of pines in neat, close lines, which works against them in a wildfire, with flames jumping easily from one tree to another. Blazes loom as a growing danger for the timberland because Europe is the world’s fastest-warming continent. But climate change isn’t its sole vulnerability, experts say. They also point to the very nature of such industrial plantation, whose origins date back to the Second French Empire. The latest disaster is forcing a rethink in France about how to better prepare and manage forest expanses to cope with hotter, drier, more fire-prone conditions made worse by human-caused climate change, from the burning of coal, oil and gas. President Emmanuel Macron said a different kind of forest should be replanted. “The structural conditions created by climate change, under which we will have to live, have changed,” he said. “So has the pressure from housing and tourism.” Maritime pine is considered relatively fire-resistant due to its thick bark and ability to regenerate naturally. But experts believe its monoculture increases risk. Single-species forests of conifers are drier than mixed forests of broadleaf trees and conifers, favouring flames. “In a healthy, diverse forest there are multiple tree species, different age classes and several layers of vegetation, from ground plants and shrubs to mature trees such as oaks and beeches,” says Nathalie Naulet, an expert in forestry and agriculture. “In these ecosystems, less than 3% of the sun’s radiation reaches the forest floor.” In Les Landes, that layered structure does not exist. “Without a protective canopy, the soil heats up and dries out,” Naulet said. “The top few centimetres of soil, which should normally consist of water-rich humus, become dry and impoverished. In many places, humus has virtually disappeared.” Broadleaf trees retain more moisture, better for resisting fire. Pine trees coat the forest floor with mounds of flammable dead leaves that are springy underfoot, but which can smoulder long after a blaze. Fire crews and citizens are now dousing smoking embers — a job that could take weeks. “No matter how much we try to extinguish it, re-extinguish it, re-extinguish it, it keeps restarting all the time,” said Jean-Francois Pauner, 64, a resident helping the effort. Resinous pinecones can also ignite and be hurled hundreds of meters by wind, helping fire spread. “You end up with fires breaking out in every direction,” Naulet said. “Add heat and drought, and you get the picture.” Les Landes’ forests developed following a 1857 law on the drainage and cultivation of the Landes de Gascogne. Ruler Napoleon III ordered municipalities to sow maritime pines and sell off the heathlands, regarded as unproductive. Marshland was transformed into productive forest. The last shepherds who tended their flocks while walking on stilts disappeared. The forest displaced peasants. They found work in the timber industry and the harvesting of pine resin. The forest’s main purpose now is timber production. More than 90% of the forest area in Les Landes is privately owned, with 75% held by just 20% of landowners. The National Forest Office and local municipalities manage the remainder. According to the Southwest Foresters’ Association, which represents more than 65% of the privately owned forest in the region, the sector supports an estimated 60,000 jobs and generates more than 10 billion euros (US$11.5 billion) in annual revenue. Changing the way the Landes forests are managed will require negotiations between the timber industry, owners, and public authorities. If monoculture is partially abandoned in certain areas, financial compensation will be necessary. Nicolas Lafon, the association’s president, said rebuilding will require “financial resources commensurate with the scale of the challenge.” “Forest owners reject any attempt to portray them as being responsible for a disaster of which they are the primary victims,” he said. “They now expect the French government, elected officials, and all public stakeholders to implement a truly ambitious, coherent, and long-term national forest policy.” The national rethink on forests is also extending to wildlife. An online petition calling for a hunting moratorium in burned woodlands has gathered more than 300,000 signatories. Geographer Arthur Guérin-Turcq says that when fires start in the Landes, they can spread without encountering breaks until they reach villages. “It is therefore necessary to create buffer zones around settlements,” he said. Other possible solutions could include adding wetlands, more farmland or more businesses that aren’t so fire prone. Another option is to introduce more broadleaf trees. But transforming the entire forested area is a tall order in poor soils, said Guérin-Turcq, who wrote a report on the 2022 wildfires that displaced 37,000 people and destroyed 320 square kilometres (124 square miles) of forest. Bruno Lafon, regional president of the Forest Fire Defense Association, called for stronger wildfire prevention. “We need larger, well-maintained firebreaks, even if that means sacrificing 1,000 or 2,000 hectares,” he said. “Otherwise, we risk losing the Landes forest.”
The post History repeats itself in France’s smouldering forests appeared first on Timberbiz.
Sumitomo Forestry publishes its 2026 report
The Sumitomo Forestry Group publishes an Integrated Report every year to inform shareholders, investors, and all other stakeholders about its yearly performance and medium to long-term initiatives for corporate value enhancement, and to provide an opportunity for further dialogue. Source: Timberbiz This Integrated Report 2026, which reports on activities during the fiscal year ended December 2025, reaffirms the significance of the wood cycle and clearly presents the group’s approach to value creation. The report also provides a detailed update on the progress of Mission TREEING 2030 Phase 2, the Medium-term Management Plan established to realize the Long-term Vision for 2030, and presents the strategies and business models of each business segment. This report is intended to serve as a medium for stakeholders, including shareholders and investors, to better understand the Sumitomo story. In addition to this report, the IR section of the company’s website provides IR information in both Japanese and English, including financial results, financial factbooks, briefing materials, and monthly order information related to the Housing Business. Detailed information on sustainability initiatives is available in Japanese and English on the sustainability section of the website. You can download the report here.
The post Sumitomo Forestry publishes its 2026 report appeared first on Timberbiz.
US Forest Service $105M in wood grants
The US Forest Service announced US$105.5 million in wood innovation grants for 177 projects across the nation that support active management of national forests and grasslands, promote wood and energy infrastructure by increasing manufacturing capacity and operational efficiencies and support rural economic prosperity and jobs. Source: Timberbiz The grants include US$31 million for 113 wood innovation projects, US$17 million for 23 community wood projects, and US$57 million for 41 wood products infrastructure assistance projects. The selected projects across 44 states and the District of Columbia will create and retain jobs, reduce wildfire risks for communities adjacent to federal or tribal lands, improve forest health and expand economic opportunities for forest products businesses. “The greatest threat to forest landowners and those who use forests is the lack of critical markets in today’s timber and wood products industries,” US Forest Service Chief Tom Schultz said. “There are significant gaps where low-value wood, small diameter trees and restoration byproducts lack viable buyers. To close these gaps, we are investing in companies and organizations that are developing technologies, products, business models and training to expand and strengthen markets directly connected to forest restoration. “Over time, this will help create new uses for underused materials, strengthen rural economies, improve forest health, and make forest management more financially sustainable.” National forests and the wood products industry are intricately linked in ways that benefit landscapes, communities, and the broader national economy, especially for rural economies that rely on healthy forests. Active forest management including environmentally responsible timber harvests, helps reduce wildfire risk, improves forest health and maintains diverse, resilient ecosystems. By extension, the wood products industry creates a market for the byproducts of active forest management, turning small-diameter timber, dry, overgrown vegetation that can fuel wildfires and other industrial byproducts into useful projects that support jobs and rural communities. The wood innovations investments support President Trump’s Executive Order on Immediate Expansion of American Timber Production and U.S. Secretary of Agriculture Brooke L Rollins’ direction to have the Forest Service to ramp up active forest management to improve forest health, reduce wildfire risk, and support rural prosperity. Byproducts of these activities such as small diameter timber and woody biomass have historically had little market value. Forest Service grant programs help create new opportunities to use this material in a wide range of wood products.
The post US Forest Service $105M in wood grants appeared first on Timberbiz.
OFO video on its co-generation boiler project
OneFortyOne has released a new video providing an overview of the Jubilee Co-Generation Boiler Project, one of the most significant investments in the future of the Jubilee Sawmill and the company’s sustainability journey. Source: Timberbiz The video explains how the project will modernise energy generation at the site by converting sawmill residues into renewable energy, reducing emissions and improving operational efficiency. Once complete, the facility will be capable of producing enough renewable electricity to power the sawmill’s operations, with the potential to export surplus energy to the grid. OneFortyOne Executive General Manager Australia Cameron MacDonald said the project represents a major step forward for the business and the region. “The Co-Generation Boiler Project is a cornerstone of our emissions reduction strategy and demonstrates how manufacturing and sustainability can work hand in hand,” Mr MacDonald said. “The new video is a great way for our employees, customers, and community to better understand what we’re building and the long-term benefits it will deliver.” The video is now available to view at https://www.youtube.com/watch?v=gq3lddh9UYc
The post OFO video on its co-generation boiler project appeared first on Timberbiz.
Canada and Australia explore mass timber housing with different slants
New Canadian research echoes themes explored by Australia’s System 600 while highlighting different approaches to industrialised housing. Source: Built Offsite When Perkins&Will recently released its research into a modular mass timber housing system for Canada, the immediate takeaway was straightforward: another country is exploring how prefabrication, standardisation and offsite manufacturing might help address housing supply. Look a little closer, however, and another story emerges. Although developed independently and for different purposes, the Canadian research and Australia’s System 600 initiative appear to be grappling with many of the same questions. How can housing become easier to manufacture? How can design, approvals and construction become more repeatable? And how can industrialised construction support domestic manufacturing rather than relying on isolated proprietary systems? The answers, however, are not identical. The Canadian project, developed by Perkins&Will in collaboration with industry and academic partners, is built around a rationalised structural grid, a concise kit of prefabricated components, coordinated building services and modular planning principles. The objective is to streamline design, manufacturing and assembly while supporting Canada’s housing and climate objectives. Many of those themes will sound familiar to Australians following Building 4.0 CRC’s System 600 research, which also explores standardised design rules, coordinated interfaces and component-based construction. Neither project simply asks how to manufacture buildings in a factory. Instead, both investigate whether greater coordination across design, manufacturing and construction can improve productivity, simplify delivery and create more repeatable outcomes. Where they diverge is in their starting point. The Canadian research is firmly rooted in mass timber. It examines how engineered timber, modular planning and prefabricated components can work together to produce adaptable, low-carbon housing while strengthening Canada’s timber manufacturing sector. System 600, by contrast, begins with a broader manufacturing platform. Rather than focusing on a particular material, it explores whether common dimensional rules and standardised interfaces can enable multiple manufacturers and building systems to operate within a shared framework. In that sense, the Canadian work starts with a construction system built around timber, while System 600 starts with the concept of interoperability across the construction supply chain. The distinction is important because it reflects different ways of approaching the same challenge. The value of comparing these initiatives is not to determine which approach is superior. Both remain research programs rather than established industry models, and both will continue to evolve through testing and industry engagement. System 600, in particular, has generated considerable discussion within Australia’s offsite sector. Some participants see value in developing common interfaces and greater interoperability, while others have questioned aspects of its framework, implementation and potential role within a diverse manufacturing ecosystem. Those differing perspectives are part of the ongoing conversation about how industrialised construction should develop in Australia. What is perhaps most noteworthy is that researchers in two different countries are increasingly asking similar questions. Rather than focusing solely on individual products, whether volumetric modules, panels or pods, both initiatives are examining how housing can be designed around coordinated systems, manufacturing logic and repeatable processes. That does not necessarily point towards a single international model. Instead, it suggests the conversation around industrialised construction is becoming more sophisticated. The focus is shifting beyond factory-built buildings towards the broader systems that enable them to be designed, manufactured and assembled more efficiently. Whether those ideas ultimately lead to common standards, multiple competing platforms or entirely different approaches remains to be seen. What is already evident, however, is that the discussion is no longer confined to individual building systems. Increasingly, it is about how entire manufacturing ecosystems can be organised to deliver housing at greater scale, while responding to the priorities and capabilities of each country. To find out more about System 600 visit https://www.prefabaus.org.au/news-events/rethinking-prefabrication-how-system-600-is-pioneering-a-new-kit-of-parts-approach-to-australias-housing-crisis Find the proposed Canadian mass timber modular housing system at https://www.modulartimberhousing.ca/
The post Canada and Australia explore mass timber housing with different slants appeared first on Timberbiz.
Ikea’s quiet takeover in New Zealand
The company behind Ikea’s flat-pack furniture has quietly become one of the biggest forest owners in New Zealand, and it wants to more than double the land it holds there. Source: Newswire Ingka Investments, the investment arm of the Ingka Group that owns most of the world’s Ikea stores, now controls about 43,000 hectares of New Zealand forest worth in the order of NZ$648 million. That makes New Zealand the group’s fifth-largest forestry holding by country, behind Latvia, the United States, Estonia and Romania, out of a global portfolio of more than 500,000 hectares. The company has told RNZ it plans to push its New Zealand estate towards 100,000 hectares. Ingka started buying New Zealand farmland in August 2021 and has since spread across Southland, Otago, Nelson, Hawke’s Bay, the Bay of Plenty and Northland. Of the current holding, about 17,175 hectares was already in forestry when the company bought it, while 23,838 hectares has been converted from farmland into trees. Roughly 31,500 hectares is in productive plantation, with the balance set aside for conservation. Central Hawke’s Bay is where the shift is most visible. Ingka has turned six farms into forest since 2021 and now says it is the largest forestry owner in the district. One of its most recent purchases was an 850-hectare block about 15 minutes from Waipukurau, bought in 2025, adding to plantations such as a 650-hectare stand near Wallingford Station. For a company that owns so much land, Ingka has kept a low profile, and its managers say that is deliberate rather than secretive. “We’ve got nothing to hide. We’re an open book,” Forestland country manager Kelvin Meredith told RNZ, adding that the company did not “need to wave the flag how great we are”. Operations manager Dylan Foster said the buying was not finished, telling the broadcaster that “if the right farm came up, we’d definitely look at” it. The operation is a real employer in a part of the country that needs the work. Ingka runs about 250 staff across its New Zealand forestry business, and that number swells to roughly 800 people during planting season, when crews move through the blocks planting, releasing and pruning young trees over the first 10 to 12 years of a rotation. About 60 percent of the timber is exported, chiefly to China, India and Korea, with the remaining 40% sold into the domestic market. The expansion lands in the middle of one of rural New Zealand’s most heated arguments. More than 300,000 hectares of sheep and beef country has been converted to forestry since 2017, and the Climate Change Commission has projected that another 900,000 hectares could follow by 2050 on current settings. Farming groups have warned for several years that whole districts risk losing the families, schools and stock trucks that keep a rural economy turning when productive hill country is planted in pine. Successive governments have tried to slow the conversion of the most productive farmland into carbon forests without shutting the door on genuine timber investment. Ingka is at pains to separate itself from the carbon-farming operators that have drawn the sharpest criticism. The company says it has not planted any of its New Zealand trees purely to earn carbon credits under the Emissions Trading Scheme, and that its business is growing wood to cut, mill and sell. It has said it may look at carbon offsetting in future, but that harvesting timber, much of it destined for its own supply chains, is the point of the exercise. Fire risk is one area where the company has faced questions. A blaze on Ingka land near Porangahau in 2025 burned about 240 hectares, and New Zealand does not require forest owners to carry fire insurance. Meredith said the company took the responsibility seriously and would meet the cost of any damage it caused, telling RNZ it “will not shy away from paying”. Forest manager Blake Jones described using wetland setbacks and buffer zones as an environmental filter to protect waterways running through the estate. Because Ingka is a foreign investor, its purchases of forestry land need consent from the Overseas Investment Office, which weighs the benefits a buyer brings against the sensitivity of the land. Forestry has its own streamlined pathway under the overseas investment rules, a setting that has itself been contested by those who argue it makes it too easy for offshore money to buy New Zealand hill country and plant it out. For all the debate, the underlying driver is simple economics. Owners of marginal sheep and beef country have been offered prices for their land that pastoral farming cannot match, and a company the size of Ingka can take a very long view, waiting decades for a return that lines up with its need for a steady supply of timber. Whether doubling that footprint to 100,000 hectares is good for the districts involved depends on who you ask, and on whether the jobs and export earnings that come with a working forest outweigh what is lost when the last of the stock leaves the hills.
The post Ikea’s quiet takeover in New Zealand appeared first on Timberbiz.
Wesbeam is still Big River Group’s top supplier
Wesbeam has been named Big River Group’s Supplier of the Year for the second consecutive time, securing back-to-back wins in an award presented every two years. Source: Timberbiz The recognition reflects the strength of Wesbeam’s long-standing partnership with Big River Group and the consistent contribution of teams across both organisations. Winning the award again is a significant achievement and recognises the commitment required to deliver the fundamentals well, day after day. From manufacturing and distribution through to sales, engineering, customer service and marketing, the award reflects the collective efforts of the entire Wesbeam team. “Congratulations to Team Wesbeam on a well-deserved win,” said Helen Awali, Executive General Manager, Construction at Big River Group. “Thank you, Rachel, Peter, and the entire Wesbeam team for your kind words and for being such a valued part of our conference over the past few days. We sincerely appreciate your ongoing support, partnership, and commitment. It was fantastic to have you with us, and we look forward to continuing our strong relationship together.” Big River Group is one of Wesbeam’s most valued national customer partners, with the relationship built on collaboration, responsiveness and a shared commitment to supporting Australia’s building and construction industry. Wesbeam General Manager Sales & Marketing, Peter Board, said the award provided an important reminder of the value Wesbeam delivers to its customers every day. “While we know there are always opportunities to improve, this recognition reminds us not to lose sight of the many things our teams consistently do well,” Mr Board said. “Winning consecutive Supplier of the Year awards is an outstanding result. It takes a high level of commitment, consistency and execution across every part of our business. “Everyone who helps make, move, market, sell or support our products has played a part in achieving this result.” The award also reinforces Wesbeam’s commitment to being more than a product supplier. Through Australian manufacturing, national distribution, engineering expertise and close customer relationships, Wesbeam continues to work alongside Big River Group to help its branches and customers pursue new opportunities and achieve better project outcomes.
The post Wesbeam is still Big River Group’s top supplier appeared first on Timberbiz.
Decarbonising freight transport in SA
Efforts to decarbonise freight transport are being accelerated through a South Australian State Government supported project aimed at supporting South Australia’s forest industries to reach net zero targets. Source: Timberbiz The State Government is investing $200,000 towards the Decarbonising the Freight Task – Driving to Net Zero project, a joint South Australian Forest Products Association (SAFPA) and Tabeel Trading venture. The funding, provided under the South Australian Wood Fibre and Timber Industry Master Plan, supports the Government of South Australia’s vision of decarbonising forest freight to further reduce carbon emissions across one of the hardest-to-abate sectors – heavy freight transport. The State Government of South Australia is working side by side with industry to deliver solutions and drive success in this area by delivering low emission vehicles for the Green Triangle. Forestry is already the ultimate renewable and this is yet another step the industry is taking to decarbonise its footprints. The project will include new technologies aimed at reducing reliance on diesel, with the end goal to decarbonise forestry’s freight trucks through electrification, which will deliver substantial carbon savings. The project presents an opportunity to deliver real, measurable decarbonisation outcomes. Funding will support Stage 1 of the project by developing: an evidence-based decarbonisation roadmap for South Australia’s forest freight fleet detailed cost-benefit analysis of alternative freight technologies including the modelling of emission reductions a freight logistics and charging/refuelling infrastructure blueprint policy, regulatory and investment recommendations aligned to state and national climate targets and Master Plan priorities Subject to the findings from Stage 1 and the availability of vehicles and infrastructure, Stage 2 will see the project progress to a live demonstration phase to validate modelling results under operational forest freight conditions. The Decarbonising the Freight Task project aligns with the Master Plan’s goal of developing a clean and green circular economy. The South Australian Wood Fibre and Timber Industry Master Plan, launched in February 2024, was developed by the Forest Industries Advisory Council of South Australia (FIAC-SA) as part of a State Government election commitment to provide a vision to further grow and develop South Australia’s $3 billion forest industry.
The post Decarbonising freight transport in SA appeared first on Timberbiz.
Opal announces the sale of its bag manufacturing business
As part of its broader strategic focus, Opal has undertaken a detailed review of its bag manufacturing operations in Thomastown, Victoria. Following this assessment Opal has made the decision to sell its bag business. Source: Timberbiz The sale will be to an Australian entity owned by Thomastown International, an affiliate of The Magan Group, a US family office exclusively focused on investing in corporate divestitures. Opal says this sale is consistent with its strategic focus on its core integrated recycling, paper and packaging products and services. The acquisition is expected to complete by 1 September 2026, subject to the fulfilment of the sale conditions. Opal and the buyer will work closely with bag customers and suppliers to support a seamless transition once the sale is complete. It’s not expected that there will be any interruptions to production during the transition period. “This decision was made following careful consideration and supports Opal’s continued focus on its core integrated recycling, paper and packaging products and services,” Simon Nozu, Chief Supply Chain and Procurement Officer Opal said.
The post Opal announces the sale of its bag manufacturing business appeared first on Timberbiz.
Opinion: Allan Laurie – India is the hot topic
Some much better news this month across both China and India markets. Both are stable in sales prices with a reduction in shipping costs and a favourable US$/KIWI$ FOREX seeing prices at wharf NZ recovering back up to close to where they were in May. Both markets hold a ‘tread with caution’ warning, and it is certainly time to be happy with our lot and not push on price or volume. Weather events and the market generally, has seen a lower harvest rate in NZ and that is certainly needed to give both markets a breather. It is extremely disappointing to see one exporter pushing volume into India without sales contracts and LCs in place. Those logs are now sitting in bond in Kandla with more on the way. This may yet have a debilitating impact on log prices in what otherwise remains a fragile market at present. The India Free Trade Agreement is the hot topic at present with NZ Forestry said to be a big winner. I thought readers might be interested to learn more about this increasingly important market for NZ. There is the usual plethora of misinformation about the opportunities in India. I can assure readers realising any opportunities will not be a cake walk. One of the largest challenges lies in developing strategic long-term relationships with India companies. The strategic fundamentals include honesty, integrity and a strong desire to see everyone make a profit. In my view, these need to be the three guiding principles. If I look at the history of the NZ log trade with India to date, I see many examples where the 3 guiding principles on both sides have been sadly lacking. The one thing to know about dealing with the India trade is there are many who want a slice of the action. There are even more who give little or no regard for everyone being sustainably profitable. Thus, any trade with India, must be approached with great caution and a great deal of research and investigation to ensure the people you are dealing with hold tight to, and believe in, the 3 guiding principles. The majority of NZ Log trade to date has been via the Port of Kandla. At present and reflecting recent increases in the log trade, this port receives 9 – 10 vessels per month of softwood logs, each on average carrying about 40,000 cubic metres of logs. There are typically 3 from Australia, 3 from Uruguay and 3 – 4 from NZ. There is also some ongoing deliveries of logs in containers to other ports, but this comprises a very small volume by comparison. Kandla is at the top NW side of India about 130km from the Pakistan border. The city has a population of about 400,000, very close to the same size as Christchurch. The difference is, the population of Christchurch is a reliable number ascertained by Census. The lack of a reliable Census in India means any attempt at population numbers is pretty much a guess. The Port of Lyttleton can berth 6 to 7 large vessels at any one time. The Port of Kandla has 31 berths with 7 of those just dedicated to oil tankers. There is one berth where log vessels have priority with 3 other berths available depending on first at anchor, first unloaded basis. At the Port of Lyttleton, the average load rate is about 5,000 m3 per day (24 hours continuous). The discharge rate in Kandla is about 3000 m3 but is very much an average. Ships discharging small Australia or Uruguay logs can be much slower. Hence, if there is 360,000 m3 of logs in a month discharging at 3,000m3 per day, ships sitting at anchor waiting to discharge are common. The total 5 berths committed to breakbulk cargos include on-going discharge of the likes of Coal, grains and fertilizers. Sitting at anchor usually results in demurrage, which is a penalty charge on the charterer of the vessel imposed by the ship owner for unloading delays and therefore loss of earning potential. Some shipments have seen charterers pay in excess of US$1mil for demurrage. Herein lies one of the largest challenges facing Kiwi companies wanting to expand log sales to India. More about this market in future reports. As always, please remember the thoroughly important message. It remains 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.
The post Opinion: Allan Laurie – India is the hot topic appeared first on Timberbiz.
