Australian timber industry news

Famed designer Pininfarina and the Morgan Motor Company teamed up to design a new open top vehicle the Midsummer. Created in recognition of the heyday of European barchetta designs, this is special – limited to just 50 examples. Source: Timberbiz Midsummer represents the shared vision of Morgan and Pininfarina, who have collaborated to reinterpret and celebrate the timeless Morgan silhouette. As a unique celebration of the coachbuilding heritage of both Morgan and Pininfarina, Midsummer exhibits the skill of Morgan’s craftspeople more than any previous model. Inspired by marine applications, the beautifully sculpted wooden structures surround the cabin and create a shoulder line. Hand formed using high-quality and durable teak, hundreds of individual layers of wood are delicately laminated together to complete each section. Selected with meticulous attention-to-detail, each layer of teak is no more than 0.6mm thick. Each vehicle will feature nine individually crafted teak sections, taking more than 30 hours to skilfully create, and utilising 83m2 of sustainably sourced teak. Most notable are the dashboard tops, which feature 126 layers of teak each, and the door top sections which feature 120 layers each. Using multiple layers as opposed to a single piece of wood, adds strength and durability, necessary for exposed elements. Morgan has been known in the past for using wood in its vehicles but namely in the chassis and vehicle frame but now it has taken that a step further in this design. All the Midsummer cars have already found buyers. The car’s first public showing is expected to be at the 2024 Goodwood Festival of Speed in July.

In recent years, Precision Forestry has emerged as a transformative approach, leveraging advanced technologies to collect and utilize data, to optimize forest management practices for sustainability, efficiency, and productivity. Source: Timberbiz This data-driven approach enables forest owners, including us as one of the largest private forest owners in the world, to make informed decisions at a fine scale, tailoring forest management actions to specific areas or even individual trees. Stora Enso’s Precision Forestry program uses modern tools and technology such as drones, satellites, laser scanning (lidar), and harvesting machines to collect detailed forest data for planning forestry operations and biodiversity actions. With this granular data, we can recognize tree species, tree height and diameter, and wood stock volume in the forest, as well as harvester location or forest damage caused by wind or insects. Artificial Intelligence (AI) is in the core of Precision Forestry. With AI, we can combine the multiple data layers in our digital Precision Forestry platform and create an accurate Digital Twin of Forest. This enables us and other forest owners to map, model and manage ecosystems precisely, and at the same time maximize the value of forest assets. There are five ways to enhance forest management with Precision Forestry. Optimized terrain routing for forest machines Precision Forestry and its terrain data allow us to optimize the routing for forest machines, and to find the most optimal wood storage locations along forest roadsides. When optimising routes, the key is not only to find the shortest route to minimize CO2 emissions, but also to consider biodiversity and how best to protect it. Early detection of forest damage With the help of data collected through satellites and drones, we can detect forest damages, such as spruce bark beetle exposure, much faster and more efficiently than the human eye. Bark beetle damage detection is in use in our own forest assets in Sweden. This service will be available also for private forest owners in Finland during this year. Efficient forest area mapping with drones and remote sensing When mapping large forest areas, forestry experts can use drone pictures on a computer instead of having to map the area on foot. This greatly improves efficiency, as fixed wing drones can scan even 1,000 hectares of forests per day. In Finland, Stora Enso is currently using drones to scan forests for tree and species mapping. This helps to detect potential retention trees already before harvesting, leading to better forest management planning. In Sweden, we are also testing drones to analyse the forest harvesting footprint after felling. Forest area mapping is efficient with drones and remote sensing Enriched biodiversity data for Finnish private forest owners By combining forest and biodiversity data from various sources, we can model and manage biodiversity and wood production side-by-side. This helps to ensure, that the forest management decisions we make today not only maximise the financial value for forest owners, but also have a positive impact on biodiversity. In 2024, the goal is to make biodiversity data available for Finnish forest owners in the companys’s digital forest management application eMetsä. In addition to the traditional forest data, the new biodiversity data will include, for example, information about mixed species stands that have two or tree species, and no single tree species makes up more than 65% of stand volume, and information about stands where over 50% of trees are broadleaved. Achieving our biodiversity targets requires high-quality, auditable forest data Stora Enso has developed a science-based framework to verify its net positive impact (NPI) on biodiversity. The framework enables forecasting of biodiversity impact, which allows operations to be adapted towards a net positive goal. To achieve its NPI targets and measure progress, the company needs a wide range of auditable biodiversity data. For example, in Sweden it is mapping standing deadwood and broadleaved trees, which are crucial for forest biodiversity. With satellite data, it can provide more precise information about the location of broadleaved trees within a forest stand, leading to better planning of protection zones and to the possibility to leave them where broadleaved trees are detected. Continuous platform and business development Precision Forestry represents a paradigm shift in forest management, leveraging technology to optimize productivity, conserve biodiversity, and mitigate environmental impacts. As an agile digital platform, Precision Forestry is constantly developed through several business projects. This requires close collaboration and data collected together with internal teams and external partners. As technology continues to advance, the potential for Precision Forestry to revolutionize the way we interact with and manage forests is boundless. It offers new business initiatives, and opportunities for innovation and stewardship in the face of global environmental challenges. “This innovative approach not only enhances the value of our forest assets but also ensures that we can achieve a balance between economic, social, and environmental goals for a sustainable future.”, concludes Jani Kaskinen, Vice President, Precision Forestry, Stora Enso.

As part of Business Finland’s Veturi funding for forest machine manufacturer Ponsse, Sitowise is working with Ponsse to explore the potential of artificial intelligence for smarter planning and optimization of logging. Source: Timberbiz The aim of the project is to explore the use of AI and remote sensing data, as well as other data sources such as harvester data, to produce intelligent map data and services and to increase our understanding of potential customer needs. The main target groups are organizations involved in logging and timber harvesting. “The project will explore possible ways to produce intelligent map layers to facilitate harvesting planning, such as data describing terrain conditions, harvestability and wood quality,” said Sanna Härkönen, Product Business Lead at Sitowise. Bitcomp Oy (now part of Sitowise Oy) currently has a strong position in the market for services to the Finnish forestry sector. “We have already developed an easily scalable, cloud-based computing platform that we can use for AI-based data production. This will also allow for the convenient distribution of global map data. On top of this technology, we can explore and develop new services and products,” said Härkönen. The aim of the project is to identify and formulate tools that could help facilitate the most important work steps for customers. “The aim is also to explore the potential benefits of such map layers and tools along the entire logging value chain. The tools could, for example, help machinery companies to better optimize the use of their equipment and improve the preservation of environmental and natural values during harvesting,” said Härkönen. The benefits are expected to reach down to the operator level, as intelligent data can reduce the cognitive load on operators and improve the quality of their work. “The project will also look at different optimization methods to help plan harvesting and identify ways to take into account different forest use objectives. It also aims to test smart data in practice with test users, so that solutions can be better tailored to the needs of customers and users,” said Härkönen. Ponsse has existing international networks and activities across a wide range of regions in Europe, North America and South America, which are also the focus of this project. Business Finland awarded Ponsse’s and Epec’s FORWARD’27 program with 10 million Euro in funding in a challenge competition for leading companies. In addition, Business Finland awarded 20 million Euro in funding to the ecosystem companies surrounding the programme. The total budget of the Sitowise project is around 1.2 million Euro and the project will run for two years.  

New Zealand’s consultation to update carbon auction price settings for its emissions trading scheme failed to provide certainty to the market, with the government’s option to lower the auction floor denting market confidence and pushing prices down. Source: S&P Global The consultation released on May 15 was part of an annual review of the price and volume settings for the quarterly auctions of New Zealand Units, under which the government must consider the advice of its national climate body, Climate Change Commission. The latest consultation will review the settings for 2025-2029 but the government cannot change settings for the next two years without citing specific circumstances. The consultation sought public response on whether the government should follow CCC advice to cut the auction volume of New Zealand Units for 2025 by more than half to 5.9 million from 12.6 million to align the ETS with the country’s national climate target. CCC said in March that the estimated surplus of NZUs had grown to 68 million units from 49 million units at the end of September 2023. “The internal modelling shows that the Commission’s proposed settings are more likely to be in strict accordance with meeting emissions budgets across the scenarios tested than current settings,” according to the consultation document released by the government. The government added that CCC’s proposed settings were likely to lead to higher NZU prices, providing greater incentives for emissions reductions and removals. It, however, sought feedback on whether there were any particular circumstances that would allow the government to justify lowering the auction volumes for 2025-2026. “I think it shows that the government is largely supportive of the auction volume cuts that the CCC has proposed,” a carbon trader said, adding however that the consultation also raised uncertainty around the auction price floor. The auction floor price is the minimum price at which NZUs can be sold and was set at NZ$64/mtCO2e for 2024. While the CCC had recommended keeping the price settings unchanged, the government also provided the option to lower the price settings for the auction floor and the cost containment reserve trigger price, without providing any figures. The CCR trigger price leads to additional units being released for sale to balance prices. “A lower price corridor could apply from 2025 if there are circumstances that enable changes to be made to the first two years of settings,” according to the consultation document. There was no option provided to increase the price floor, with the government saying that a higher floor would be above the spot price and could encourage speculation. Market sources said the option for lower price settings was seen as negative. The government also provided the option to increase the CCR volumes to reflect the potential reduction in surplus NZUs. The CCR trigger price leads to additional units being released for sale to balance prices. The government has previously said that CCC recommendations cannot be taken as final word but the previous high court ruling will prevent them from rejecting the climate body’s advice outright, a second carbon trader said. A High Court ruling in July 2023 ordered the previous Labor government to reconsider its lower ETS settings after a climate group sought a judicial review of the government’s December 2022 decision to not follow the CCC advice. The consultation will close on June 14, with final settings expected to be released by the end of September. The NZU trading volumes jumped on a daily basis on May 15, with a total of 75,000 mt traded through the day compared with just 15,000 mt the day before. NZU price traded up earlier in the day to NZ$56/mtCO2e ($33.94/mtCO2e), before drifting down to NZ$54.25/mtCO2e. Platts, part of S&P Global Commodity Insights, assessed the price of NZUs at NZ$54.25/mtCO2e on May 15, down 25 cents on the session. The market was oversupplied, and traders were protecting themselves by taking quite destructive actions, the second carbon trader said. The pricing was at the marginal level of supporting forestry and seemed generous considering the incoming future supply, the trader added.  

The effects of bushfires, floods, storms and other extreme weather events are becoming increasingly impactful on our communities, environment, and economy in Australia and, in turn, the need for resilient housing is growing. Source: Timberbiz The Insurance Council of Australia (ICA) reports that Australians are five times more likely to be displaced by a natural disaster than someone living in Europe and the costs associated with those events are significantly growing. The ICA also reports that the costs directly related to repairing or replacing homes and their contents after natural catastrophes have increased significantly over the past 15 years, and indirect costs are even bigger. The result is that many properties are becoming uninsurable and local Councils are encountering additional planning problems. Improving the climate resilience of new and existing homes would contribute to reducing these costs, allow for sustainable market growth opportunities, and facilitate improvements in the housing supply crisis. This new WoodSolutions guide, the Resilient Timber Homes Guide, details how sustainable timber homes can be designed and built with a Code+ approach to resilience. It indicates that opting for a resilient timber home presents a proactive solution to mitigating climate challenges while providing safety and improved wellbeing to building occupants. The guide also details the increased value for the investors and the whole community through resilient design. The growing emphasis on minimizing the carbon footprint of buildings presents another compelling reason for the Australian insurance and real estate sectors to actively engage in mitigating disaster risks which will position them as providers of safety, wellness and future-proof value to their clients, and the community. Engineered Wood Products are now widely utilised for their sustainable properties that are essential for meeting decarbonization goals. Consequently, there is a demand for these products and the structures employing them to exhibit resilience and durability that surpasses minimum code requirements. This new design guide on resilient timber homes can be used by the building and construction industry in conjunction with other WoodSolutions resources that educate on specific performances such as durability, thermal efficiency, fire, and more. This library of free resources supports climate-conscious planning decisions and smarter real estate development options through resilient design and building initiatives. This ground-breaking guide is a result of the Resilient Timber Homes program, launched by FWPA, in partnership with industry leaders and in collaboration with outstanding experts in this field. Its primary aim is to foster innovation in construction solutions via a recently completed design competition, the implementation of this comprehensive design guide, and the facilitation of targeted research and development initiatives. Resilient Timber Homes are poised to create substantial growth in the demand for innovative, sustainable, and cost-effective wood-based products and services over the coming years. This heightened demand will result in a stronger and more resilient supply chain—an advantageous outcome for both the environment and the broader building sector. Download the free guide here.

Tasmania’s largest private forest and land asset manager Forico will welcome a new Chief Financial Officer (CFO), Chris Oddie, from 24 June 2024. Source: Timberbiz Mr Oddie is a Chartered Accountant with more than 30 years’ experience in senior executive finance, commercial and operational management, gained across the agribusiness, construction, community services, financial services and logistics sectors both in Australia and overseas. Most recently he has occupied CFO and Company Secretary roles with Regional Livestock Exchanges, Li-Ve Tasmania, and Spectran Group, where he shaped business growth and successfully managed company transformation and change. “It was vital for Forico to secure a talented and capable individual who can add value in a dynamic business environment and Chris emerged as a clear stand-out,” said Forico CEO Evangelista Albertini. “Chris’s wealth of experience in CFO and executive roles positions him optimally to continue Forico’s work in placing financial management front and centre in sustainable decision making and maintaining the leadership role we have forged in this. “The approach of mandatory nature-based reporting sees increasing demands placed on finance and accounting capacity in businesses worldwide. Forico has carved a leadership niche in this new reporting landscape, and we have no doubt Chris will enable us to achieve our vision of forestry as the industry at the centre of a sustainable future.”

Building enough homes for all Australians is again at the centre of Federal policy decisions, with the Opposition’s Budget reply acknowledging the critical importance of addressing housing supply challenges, said Master Builders Australia CEO Denita Wawn. Source: Timberbiz “To solve the housing crisis, we need to see action beyond the housing portfolio with skills, migration, infrastructure, industrial relations, defence, social services, and industry portfolios pulling in the same direction. “Builders applaud the Opposition for calling out the damaging impacts of recent industrial relations reforms and commitment to remove this complex legislation and provide more certainty for business. “The Government’s recent industrial relations legislation ultimately make home building more expensive and blow out supporting infrastructure projects. “Recent modelling found under a best-case scenario, new industrial relations laws will see at least 15,000 fewer homes and almost 8,000 fewer jobs and cost the economy over $113 billion over the next five years. “Master Builders welcomes the Opposition’s decision to extend and expand the instant asset write-off for small business to $30,000, $10,000 more than the Government’s policy but more support is needed. “The viability of the building and construction industry remains key to bringing down inflation and boosting economic growth. “We must reduce the time it takes to build and minimise increasing construction cost blowouts in infrastructure, commercial and housing projects. These costs are ultimately passed on to consumers or taxpayers. “We know higher than anticipated migration levels have exacerbated an already constrained housing system, but the Opposition has rightfully not shut the door on the very tradies we need to build more homes. “The industry needs half a million new workers over the next three to five years which we cannot fill domestically alone – skilled migration represents a vital piece of the puzzle. “Both major parties have this week committed to ensuring Australia is an attractive destination for skilled migrant tradies. “With considerable numbers of older workers retiring from the construction industry each week, the pressure to replace their decades of experience and upskilling is considerable. “We welcome incentives to encourage older workers back into the workforce without reducing pension payments. “As we gear up for the Federal Election, both major parties are now on notice to produce a plan to ensure that all policy levers are being pulled in the same direction to strengthen the industry and boost housing supply,” Ms Wawn said.  

Australia’s forest products sector has welcomed the Federal Government’s ongoing support in the 2024-25 Federal Budget. Source: Timberbiz “The Budget builds on the Australian Government’s investment since 2022 to boost timber and wood fibre supply, enhance manufacturing productivity, develop strategic industry policy planning and fund training and skills,” Australian Forest Products Association CEO Diana Hallam said. “The $3.4 million provided over four years in this Budget for development of a National Timber Fibre Strategy and a review of the 1992 National Forest Policy Statement ($1.8 million) with the states and territories will help industry plan for the long-term. Additional measures announced in biosecurity and firefighting, including aerial capabilities, are also acknowledged and appreciated.” The AFPA also welcomed the $48 million over four years to implement further reforms to the Australian Carbon Credit Unit scheme, including the establishment of a Carbon Abatement Integrity Committee to oversee the new proponent led method development. The AFPA has developed a new proponent-led method to encourage timber in the built environment which can reduce embodied emissions in midrise building by around 50%. Acknowledging the Government’s $11 billion investment in housing, Ms Hallam said the AFPA would focus its attention on working with the Government to promote and integrate Australian forest products into its housing, climate and economic agendas. “You cannot build housing without materials and timber is a key climate friendly material that will help Australia meet its net-zero by 2050 goals that were recommitted to in this Budget,” she said. “As outlined in AFPA’s How Timber Can Help Solve Australia’s Housing Crisis launched in conjunction with Master Builders Australia this week, our industry has the timber ready to go right now to build the homes of tomorrow, 50,000 more homes annually in fact. “It’s therefore disappointing no immediate measures to harness this opportunity have been included in the Budget, especially in light of plans for 40,000 new social and affordable homes under the Housing Australia Future Fund and Housing Accord. “While there is also a big Budget focus on new technologies and the Future Made in Australia Strategy, there is little evidence that the Government has considered the increased role Australia’s forest products sector can play. Many countries have identified green business opportunities as they progress towards net-zero that involve forestry industries, Australia should be no different. “The forest, wood and paper products sector is Australia’s sixth largest manufacturing industry and forestry plays a unique role in climate change mitigation. Timber is an economic carbon capture and storage technology which works at scale. Not only do our trees sequester carbon whilst growing, but once harvested, the timber is a permanent, or long lived, store of carbon in the built environment. And, in Australia, every tree harvested in forestry is replaced with at least another tree,” Ms Hallam said. “The power of embodied carbon in timber and wood as a climate solution that will help Australia meet its emission reduction targets is a proven technology that can help Australia transition to net-zero.”

May’s a funny month, you’re hanging onto the autumn weather and good times that were had over summer, knowing fully well that winter is around the corner, and it’s going to get cold and ugly. This is usually the case for our industry as log prices generally start heading south in late autumn and rain is not our friend. However, winter came early in terms of southward heading log prices, with a significant drop in April that extended into May with mainly flat pricing at the NZ$106/JAS level for A grade. Thankfully the weather has played ball with reasonably dry conditions to date, but this is cold comfort if your logging gear is parked in the paddock. There were some hopes that May would see a price increase of substance but, with both the foreign exchange rate and the shipping costs having Julie Anne Genter levels of volatility during April and early May, our hopes have been dashed. There is some good news simmering away in the background as Chinese on port inventories stabilise and demand increases into the 72km3 per day range. Supply from NZ has dropped significantly following the poor April prices and a quickly slowing CNI salvage volume. This will likely not have an impact on the CFR price (sales price in China) in the short term until inventory gets to an uncomfortably low position. The Chinese economy grew at a faster rate than predicted in Q1 with GDP at 5.3% against a Reuters poll of analysts that expected 4.6% however, it looks like the growth was primarily front loaded with March data weakening. Property remains the red-haired stepchild with Reuters reporting new house prices falling faster in March than any time in the previous eight years. Sales plummeted 23.7% in March compared to 20.5% for the previous two months so it’s clear that any significant rebound in construction is still a pipe dream. A recent Chinese trade delegation to NZ was wowed at our wooden commercial construction, and there was a definite interest in understanding how NZ’s construction techniques and technology could be commercialized in China. It was clear that the aging Chinese population is reasonably cashed up and not necessarily interested in living in a 500-story concrete and steel apartment block. If we could help develop this market segment it may provide significant demand for NZ radiata by placing more wood into a smaller but differentiated construction sector. For perspective, the wood usage per capita in China is less than 0.4m3, compared to India at 1.61m3, and a global average of 0.55m3. This indicates that there is potential of an additional demand of 210 million cubic metres if China reached the global average. There’s been a significant reduction in non-NZ supply into China in the past 12 months with Europe dropping to around 250Km3 per month and the Pacific Northwest steady at 180Km3. Australian export supply is minimal and is primary headed to India, and NZ also has a couple of vessels destined for the capital of cricket. While we still have fumigation issues with Indian shipments, any vessel headed to our commonwealth partners takes supply away from China which is a positive. Domestic demand still remains solid although the indicators are not looking flash for the NZ construction sector in the short term. Although core inflation was lower than expected, non-tradable inflation was stickier than a half-sucked wine gum, which will give Adrian Orr the mandate he needs to keep beating us over the head with his interest rate bat. Understandably, until we see a reduction in interest rates, the NZ construction sector will remain decidedly average. Nothing to see here on the carbon front with NZU’s trading in the mid $50’s for the last few months. It’s the same story as previous months with plenty of supply and average demand as most large emitters have covered off their obligations in the short term and the speculators have left the building, for the time being. This price point still provides for a very tidy return of around $1,605/ha and, with current returns from sheep, there will be many farmers very thankful for including carbon in their cashflow. So, in summary, it’s been a very volatile few months in terms of export price, and we’re currently stuck on a rinse cycle. It’s unlikely that June will see us over the NZ$120/m3 hurdle, but we are forever hopeful. It will more than likely be August before returns are at a level that will stimulate increased supply. Let’s hope the spin cycle is a bit more user friendly. Marcus Musson is a Forest360 Director. He holds a Bachelor of Forest Science with Honours from Canterbury University, New Zealand, and specialises in steep slope cable harvesting, marketing and value recovery initiatives.  

In today’s world, where environmental conservation is at the forefront of global concerns, ensuring the responsible management of our forests is paramount. One crucial tool in achieving this goal is the PEFC (Programme for the Endorsement of Forest Certification) certification. This certification plays a vital role in safeguarding our forests and promoting sustainability. But what exactly is PEFC and Responsible Wood certification, and why does it matter for our forests? PEFC certification is a globally recognised standard for promoting sustainable forest management. It provides assurance to consumers that wood and paper products bearing the PEFC label come from responsibly managed forests. The PEFC and Responsible Wood certification process involves rigorous assessments of forest management practices against a set of strict criteria, including environmental, social, and economic aspects. One of the key reasons why PEFC and Responsible Wood certification matters for our forests is its focus on sustainability. Sustainable forest management aims to balance environmental, social, and economic considerations, ensuring that forests can continue to meet the needs of present and future generations. By adhering to PEFC standards, forest managers commit to preserving biodiversity, protecting water resources, and minimising the environmental impact of forestry operations. Moreover, PEFC and Responsible Wood certification contributes to the fight against deforestation and forest degradation. By promoting responsible forest management practices, PEFC helps combat illegal logging and encourages the conservation of valuable forest ecosystems. This is particularly significant in regions where deforestation poses a severe threat to biodiversity, climate stability, and local communities. Another crucial aspect of PEFC and Responsible Wood certification is its emphasis on stakeholder engagement and social responsibility. PEFC standards require forest managers to engage with local communities, indigenous groups, and other stakeholders to ensure that their interests and concerns are taken into account. This inclusive approach fosters transparency, accountability, and trust within the forestry sector, ultimately benefiting both people and forests. Furthermore, PEFC and Responsible Wood certification supports the market demand for sustainable wood and paper products. As consumers become increasingly aware of environmental issues, there is growing demand for products that are sourced from responsibly managed forests. The PEFC label provides assurance to consumers that they are making a sustainable choice, thus driving market demand for certified products and incentivising more forest managers to adopt sustainable practices. In Australia, where forests are not only valuable ecosystems but also integral to the cultural identity of indigenous communities, PEFC and Responsible Wood certification holds particular significance. By promoting sustainable forest management practices, PEFC helps preserve Australia’s unique biodiversity and ensures the long-term viability of its forestry industry. Moreover, PEFC and Responsible Wood certification aligns with Australia’s commitment to sustainable development and environmental stewardship, contributing to the nation’s efforts to mitigate climate change and conserve natural resources. PEFC and Responsible Wood certification helps foster collaboration and knowledge-sharing within the forestry sector. By bringing together stakeholders from government, industry, academia, and civil society, PEFC creates a platform for exchanging best practices, innovative ideas, and scientific research. This collaborative approach enables continuous improvement in forest management techniques, leading to more effective conservation efforts and better outcomes for both forests and communities. Additionally, PEFC and Responsible Wood certification enhances the competitiveness of forest products in the global market. With growing awareness of sustainability issues, many businesses and government agencies around the world require certification as a prerequisite for purchasing wood and paper products. By obtaining PEFC and Responsible Wood certification, forest managers gain access to these markets and can command premium prices for their certified products. This not only benefits certified forest owners but also incentivises others to improve their practices to remain competitive in an increasingly sustainable marketplace. Ultimately, PEFC certification helps drive positive change throughout the forestry supply chain, from forest management to product manufacturing and distribution, ensuring a more sustainable future for our forests and planet. PEFC and Responsible Wood certification plays a crucial role in ensuring the sustainability and responsible management of our forests. By adhering to PEFC standards, forest managers demonstrate their commitment to environmental stewardship, social responsibility, and sustainable development. Through certification, consumers can make informed choices that support the conservation of forests worldwide. As we strive to build a more sustainable future, PEFC and Responsible Wood certification serves as a valuable tool in safeguarding our forests for generations to come.

The first autonomous logging machine rumbled down a Swedish forest path and scanned for stacked logs to transport. It then scooped them up with a crane and loaded them onto its trailer. A new study of the truck-size robot, called a forwarder, suggests it could help forest workers with at least some deadly jobs. Source: SciAm “It’s the first trial for us to see that the machine we built is perhaps capable of doing what we were dreaming it could do,” said Pedro La Hera, a roboticist at the Swedish University of Agricultural Sciences and lead author of the study, published in the Journal of Field Robotics. Logging jobs are often demanding, requiring operators to multitask and endure nearly constant vibration while operating logging vehicles. Fatigued foresters don’t always pay attention to other foliage in the area, the researchers say, and can damage the ecosystems around them. Logging is also dangerous; in the US, it has one of the highest fatality rates of any industry. Roboticists, software engineers and forestry scholars in Sweden set out to automate some onerous logging tasks. They used GPS to set a path in a clear-cut area and equipped the vehicle with a computer vision system to help it identify, pick up and release cut logs. The predetermined task sequence demonstrates how, in a controlled environment, a machine with little to no human oversight could operate. “It’s definitely an advancement,” said Thomas Douglass, a logger who owns Thomas Logging and Forestry in Guilford, Maine. “I, along with other contractors in this area, have problems getting help working in the woods, so I can see why at least making the forwarder an automated process would be helpful.” For now, these vehicles’ use may be limited to Sweden, where nearly all forests are managed for commercial logging, paths are well identified, and satellites provide information on logged areas. Loggers in the US, in contrast, harvest trees both in plantations and in natural stands where self-piloted machinery would face more challenges. Still, the research highlights aspects of autonomous machinery that are worth developing further, says Dalia Abbas, a forester who has investigated the effects of logging operations in environmentally sensitive areas. Eventually, Ms Abbas says, she “would definitely hope that it takes into account the fuller range of where it’s operating, whether it includes wildlife, other contaminants or bugs that come with the logs to avoid any infestations, and its sensitivity to the terrain.” Since the experiments took place, engineers have already improved the machine’s manoeuvring capabilities. The researchers are also pursuing other autonomous efforts such as planting seedlings. Although logging may always need human oversight, automating certain steps could make the process safer and more efficient, benefiting both workers and the environment, La Hera says. The paper Exploring the feasibility of autonomous forestry operations: Results from the first experimental unmanned machine can be downloaded at https://onlinelibrary.wiley.com/doi/10.1002/rob.22300

Metsä Group has completed a transaction in which the ownership in the group’s Russian subsidiaries Metsä Svir LLC, Metsä Forest St. Petersburg LLC, Metsä Forest Podporozhye LLC and Metsä Board Rus LLC has transferred to VLP Group. The parties have agreed not to disclose the purchase price of the transaction. Metsä Group no longer holds any assets in Russia. Source: Timberbiz VLP Group operates in forestry and forest industry mainly in Vologda region, Russia. Metsä Group held a minority ownership in VLP Group during 2003–2017. In 2022 Metsä Group stopped its business operations in Russia, including the operations of the Svir sawmill, wood procurement and paperboard sales. VLP is a major company in the forestry industry working mainly in the Vologda region and has had an association with Metsa in the past.

Japanese companies, NYK Line, NYK Bulk & Projects Carriers, Tsuneishi Shipbuilding and British renewable energy business, Drax have signed a new memorandum of understanding (MoU) to develop both the world’s first biomass-fuelled ship (bioship) and the technology that could power it. Source: Timberbiz Biomass is playing a growing role in Japan’s transition from fossil fuel power generation to low carbon and renewable electricity, and the country’s demand for biomass pellets, sourced primarily from North America and composed of sawmill and forestry residues, is increasing. Drax produces biomass pellets in both the US South and Canada. The company has a longstanding relationship with NBP which transports its pellets to Japan. These pellets are currently shipped through smaller handy size bulkers, which, due to the limited size of their fuel tanks, have proved challenging to switch to lower emission fuels, such as ammonia. Through the MoU, which was signed at the British Embassy in Tokyo, the companies will initially conduct research to develop the new shipping technology, an on-board biomass fuel plant, which would be required to power a bioship. The four companies are exploring how other renewable technologies could be used to reduce both the emissions and fuel costs of shipping biomass. The biomass fuel plant would use a gasifier to combust biomass at high temperatures and create and contain gases including carbon monoxide, hydrogen, and methane. These gases would then be used to power a generator which could propel the bioship and also provide a proportion of its internal power. The installation of a biomass fuel plant could see a 22% reduction in well-to-wake carbon emissions in bioships when compared to using fossil fuels. If this development is successful, the companies will jointly study the possibility of building a bioship by the end of 2029. “This initiative is part of NYK’s long-term target of net-zero emissions of greenhouse gas (GHG) by 2050 for the NYK Group’s oceangoing businesses,” Shinichi Yanagisawa, Executive Officer of NYK Line, said. “The NYK Group is committed to providing its expertise in low-carbon and decarbonised maritime transportation as per this MOU and will utilize the knowledge gained in this research and development to promote initiatives related to various energy-saving technologies. Through our strength in high-quality transportation services, we will continue to co-create value for society with our partners.”  

International demand for pruned logs from New Zealand is the highest ever seen by a forest manager with 30 years of experience in the sector. Source: RNZ John Turkington owns John Turkington Forestry – a Manawatū company that plants, manages, harvests and markets radiata pine, says he cannot understand why forest owners do not prune plantation forests. For 15 years China had been a strong market for low-value, unpruned logs, but that was not the case now and was unlikely to be in the future, he said. “Things are fundamentally changed in my view, in China. And this is where we are going to be at,” Turkington said. “The crashes are getting closer and closer together and the range of prices is becoming more and more marked. “So, you used to have a fluctuation around a NZ$20 spread, now it’s more like NZ$60 (between the high and low prices).” Export log prices are at an eight-year low and many harvesting gangs are currently without work. The stable growth area is with pruned logs, according to Turkington. “Pruned logs per tonne is sort of sitting firmly at NZ$200 or north of NZ$200, it depends where it is sold to,” he said. “Whereas the A grade, which is the predominant diet in China, is sitting in the early NZ$100s.” The added bonus with pruned logs was they were turned into product and then sent offshore so the “value add happens in NZ, which is another bonus”. Mr Turkington admitted that sheep and beef farmers with sizeable wood lots at present were not going to have available funds to prune the trees, especially when the payback was 15 or 20 years away. But he added: “They could plant fewer trees and make sure they prune them”. “There’s always been a market for pruned logs and there’s been relative stability over an extended period of time. “But if you go back the last three or four years, the price has increased and the differential between the pruned logs and the unpruned logs is getting greater.” He said while he was not a sawmill owner, the demand must be there, or they would not keep putting the price up or keep ordering pruned logs if they were able to fill their files.

Upgraded operations are well underway at Whakatane Mill Limited’s paperboard mill on New Zealand’s North Island following the businesses official grand re-opening celebrated in March. Source: Timberbiz The initial months of the year were spent installing new state-of-the-art machinery, as well as upgrading its facilities, and since its re-opening WML is now fully equipped to service its local and global customer chain with premium quality board products. Customers from across the globe attended the in-person event alongside numerous local and government officials, such as Minister of Manufacturing and Small Business, Andrew Bayly and Local MP Dana Kirkpatrick. Representing more than mere upgrades to facilities, over NZ$100m worth of private funding has been poured into the business, ensuring the growth and prosperity of both the mill and the local Whakatane community for years to come. On the day of the grand re-opening, guests were invited to take a tour through the mill to view the new machinery upgrades which will enable WML to produce an additional 50,000 tonnes of premium folding box boards, along with improved environmental and energy systems to further embed the business’ long-term success. The upgrade seeks to increase WML’s total production capacity of up to 200,000 tonnes of premium folding box board in the future.  WML is the only folding box board producer in the Australian/New Zealand geography. The grand re-opening event is a stark contrast to the uncertain future that the business faced only three years ago where an unfortunate closure was looming over WML. Since acquiring the business, the new owners have invested significantly in the mill’s capabilities, committing to its successful future and the continued prosperity of Whakatane’s local economy. Executive Chairman of Whakatane Mill Limited Ian Halliday, conveyed the immense pride he had in re-opening the business, setting its course for a fruitful future. “Looking back to when we first acquired the mill, and to where the business is at now, it’s incredibly fulfilling,” Mr Halliday said. “We have invested heavily in upgrading the business as we always believed in its potential, and to see it now come to fruition is truly rewarding. As the largest private employer in Whakatane, with 80 years of exporting history, we are proud to see the mill step forth into its next evolution. “We want to thank our team, commercial partners and local contractors who have helped with the upgrade, along with our customers who continue to partner with us. We remain committed to further advancements, ensuring a bright future for our business and community alike,” he said.  

The Gottstein Trust is the national educational trust of Australia’s forest and forest products industry. The purpose of the Trust is to create opportunities for people to acquire knowledge that will promote the interests of the Australian industries which grow and use sustainably managed forest resources. Source: Timberbiz Through its annual awarding of Scholarships, Fellowship and Skills Development grants, the Trust provides financial assistance for individuals across the forest and forest products industry. The aim of the Trust is to support individuals to gain knowledge and skills as well as developing domestic and international networks in ways that also advance our industry. The Trust also runs well-established Wood Science and Forest Science courses. The Trust is governed and administered by up to eight trustees, operating in a voluntary capacity, who have significant experience in the Australian forest and forest products industry. Expressions of Interest are sought from experienced forest and forest products industry members to join the Board of Trustees. Some or all of the following skills would be well regarded: A capacity to promote and champion the Trust and its endeavours. Experience in governance. An awareness of industry research needs and emerging issues. Education or training experience. Fundraising, legal or communications expertise. Further information about the Trust can be accessed at www.gottsteintrust.org The Trust Deed is available under the ‘About Us’ section of the website. If you would like to contribute to the important work that the Gottstein Trust undertakes, we welcome your Expression of Interest.  For further information and a discussion about the Trustee roles, please contact Suzette Weeding, Chair of the Gottstein Trust on 0439-384-736. Please forward your Expression of Interest consisting of a brief letter and CV, to team@gottsteintrust.org by midnight 20 May 2024.

Government spending cuts have forced Scion, the dedicated Crown research institute charged with growing forestry exports, to propose shedding a significant number of scientists. Source: Timberbiz Scion which is headquartered in Rotorua, New Zealand has told staff that 30 jobs or around 10% of its workforce may go. This impacts scientists, technicians and support staff. Most are based in Rotorua. The decision follows proposed job losses of scientists, researchers and others at Callaghan Innovation and NIWA. “Cutting the very agency that is helping to grow such a valuable exporter earner and employer is just more dumb stuff from this government,” said Fleur Fitzsimons Assistant Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi. “This again shows how little the Government understands how science is key to our future prosperity and ensuring we can adapt to challenges like climate change. “Forestry is our third largest primary export earner and employs tens of thousands in regions around New Zealand – it makes no sense for a government focused on economic growth and regional economic development to undermine such a critical agency. “Scion is all about the productivity of forestry – helping grow higher value trees, improving land management, researching more efficient harvesting practices and the impacts of climate change on forests. “How come that is no longer a priority? Do forest owners and wood processors agree with this downsizing? “This again shows how the Government has made a choice for tax cuts to trump investing in public services which grow the economy and support New Zealanders.”

Housing is one of the most pressing challenges facing the nation. Efforts to tackle labour shortages stemming from apprentices leaving the construction industry prematurely and regulatory barriers impeding access to skilled international tradespeople are useful, but they alone will not address the broader labour shortages impacting the construction industry’s ability to build new homes and other infrastructure. Source: Timberbiz The Federal Budget has taken into account the need for skilled workers in the construction and housing sector, and so the Government will provide $88.8m for 20,000 additional Fee-Free TAFE and VET places in construction-relevant courses. The Government will also provide $1.8m for streamlined skills assessments for 1,900 migrants in the housing construction industry. Australian Constructors Association CEO Jon Davies says there are many factors that discourage people from joining construction in the first place and simply treating the symptoms with short-term measures to plug the skills gap will not suffice. “Long-term solutions are needed, and the government’s Future Made policy presents a chance to make significant productivity gains through Modern methods of construction,” said Mr Davies. “Modern methods of construction (MMC) could revolutionise how projects are built, shifting more work to factories. This form of construction is far more productive as it is standardised, takes place in controlled environments and is not subject to site-based risks such as inclement weather. It creates more opportunities for skilled workers in safer environments with increased opportunities for flexible work hours.” MMC also aligns seamlessly with Australia’s ambitions for net-zero emissions. By reducing waste and minimising reliance on fossil fuels, MMC presents a pathway toward decarbonising the construction industry and meeting global emission targets. “The problem is, MMC isn’t widely used due to the significant investment required but government support could change that,” argues Mr Davies. “By optimising project designs for manufacture and assembly and by standardising components of schools, hospitals, metro stations, bridges and other types of infrastructure across jurisdictions, a viable market will be created to support private sector investment in MMC manufacturing facilities. This investment could be accelerated by matched investment from State and Federal governments and by underwriting demand in the short term. “Given the scale of operations required to maximise efficiency, MMC manufacturing facilities would ideally be located in regional areas between major population centres thus providing secure skilled employment opportunities in areas that need them the most.” The potential economic returns are substantial. Closing the productivity gap between construction and other industries could boost the economy by $56 billion annually. This could fund essential services like the NDIS and build new schools and hospitals nationwide. “Investing in MMC might not be as glamorous as other industries, but it’s vital. It could transform the sector, making it more diverse, sustainable and efficient. This would ensure the country gets the infrastructure it needs, when it needs it, and at an affordable cost.”

The nation’s forestry and timber industry can help build 50,000 much needed new homes annually with climate friendly timber and wood, but we need a strong and stable construction sector to achieve that, according to Australian Forest Products Association CEO Diana Hallam. Source: Timberbiz Today’s Federal Budget revealed a $6.2 billion spend for new housing, this adds to the $11 billion housing measures already announced. “In the five years from this July, we aim to build 1.2 million of them. Our goal is ambitious but achievable, if we all work together and if we all do our bit,” Dr Chalmers said in his budget speech. “[The] $6.2 billion in new investments mean our $32 billion Home for Australia plan will clear local infrastructure bottlenecks, provide more housing for students, fund more social and affordable housing, and we will also deliver better transport for better access to suburbs, cities and regions.” Included in the investment is an extra $1 billion for the states and territories to deliver new housing infrastructure and almost $89 million for construction workforce training. Data from AFPA and Master Builders Australia (MBA) shows from the height of the COVID pandemic until early 2024, domestic timber sales have fallen more than 500,000m³ – meaning industry has capacity for 50,000 more homes annually. This is extremely significant given MBA has forecast Australia will fall 110,000 homes short of the Federal Government’s 1.2 million homes target by 2029. “Industry has product on the shelf ready to construct the new and climate friendly homes of tomorrow and capacity to produce more, but we need a range of different actions to get the housing construction sector moving so we can realise our goal. With the right economic conditions and regulatory settings, we can make it happen,” Ms Hallam said. A range of different actions are needed to help realise 50,000 extra homes, including: De-risking finance for building new homes Cutting red tape for building approvals to encourage more timber in construction Relocation stamp duty exemptions Encouraging greater take-up of modular and prefabricated timber dwellings with specifications that allow for economic builds and faster building approvals Providing measures to workforce capacity including, incentivised apprenticeship programs, immigration visas and upskilling/retraining current workforces “When it comes to timber, it’s not a materials supply issue,” Master Builders CEO Denita Wawn said. “The timber industry has signalled it has product ready to meet housing construction needs, with annual capacity for an extra 50,000 new homes. “We will continue to work with the Federal Government on ensuring policy levers are pulling in the right direction to ensure the industry and its supply chains are in the best possible position to achieve the Housing Accord targets,” Ms Wawn said.

Next year’s Green Triangle Timber Industry Awards will mark the culmination of newly implemented changes informed by the valuable feedback from sponsors, attendees, and award nominators from our previous events. Source: Timberbiz As part of the changes the nomination process will be streamlined, and partnerships forged with local organisations to enhance the experience for all stakeholders. In addition to these enhancements, the committee is also exploring avenues to further elevate the recognition of nominees and winners, particularly through the esteemed Legend Award. “By continually refining our approach, we aim to ensure that every deserving individual receives the acknowledgment they rightly deserve,” committee chairman Adrian Flowers said. “As we embark on this exciting journey, we would like to acknowledge and thank our sponsors, suppliers and regional representatives for their unwavering support. Without the sponsorship team, the awards night would not be possible – our success is a direct result of industry backing,” he said. “As we look forward to the next chapter, the GTTIA Committee remains dedicated to fostering growth and ensuring that the awards continue to serve as a flagship event for the region’s timber sector.” Since its inception, the GTTIA has evolved into a platform that not only celebrates the achievements of nominees and winners but also highlights the diverse industries within the timber sector. Mr Flowers said that by shining a spotlight on the myriad job opportunities and career pathways available, the awards played a pivotal role in inspiring future generations and fostering innovation. Furthermore, the GTTIA served as a testament to the timber industry’s positive impact on environmental sustainability, carbon emissions reduction, and the integration of transformative technologies. The 2025 awards night has been scheduled for October.