Australian timber industry news

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

The post Forest regenerated appeared first on Timberbiz.

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

The post Forestry’s challenging conditions call for exacting engines appeared first on Timberbiz.

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

The post Kesla crane for demanding loading appeared first on Timberbiz.

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

The post Japan is turning to sugi against rising import costs appeared first on Timberbiz.

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

The post Plantation forestry ACCUs are gaining attention appeared first on Timberbiz.

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

The post Fatality is a stark reminder that worker competence must be verified appeared first on Timberbiz.

Tasmanian Primary Industries Minister Gavin Pearce will neither confirm nor deny expressing support for the sale of Tasmania’s biggest farm, Rushy Lagoon, in a conversation with the buyer last year, despite the state government’s subsequent criticism of the deal. Source: The Mercury Rushy Lagoon spans nearly 22,000ha in Tasmania’s far north-east and its sale to UK forestry company Gresham House was signed off by Australia’s Foreign Investment Review Board and Treasurer Jim Chalmers in July. The farmland will be converted for a 9000ha pine plantation and used for carbon credit generation, with the Commonwealth-owned Clean Energy Finance Corporation investing $69m into the broader $142m project. The Tasmanian government has raised concerns about the process that led to the agricultural land being sold for carbon sequestration. Labor resources spokesman Shane Broad told state parliament on Tuesday that he understood Mr Pearce “had a conversation” with a representative of Gresham House in November 2025, during which he “expressed … support for the plantation proposal [and] said that landowners should be able to do what they want with their properties within the law”. “You offered to troubleshoot any pushback they encountered, and you even gave them your personal phone number in case any issues popped up,” Dr Broad said. “Why did you change your mind about Gresham House’s plans for Rushy Lagoon?” Mr Pearce would not confirm the conversation had taken place but said the government did not have “an issue with plantation or forestry on farms” nor object to foreign investment. “What we have an issue with, what I have an issue with, is the process, and the fact that $69m dollars from the Clean Energy Finance Corporation can be used to advantage one purchase or over another,” he said. “In terms of my support for exactly the issues that you raise around supporting prospective buyers into our state or prospective agricultural operators into our state, then that is a matter between them and I.” The Liberals have ordered a parliamentary inquiry into the sale of Rushy Lagoon, with the terms of reference focusing on the Commonwealth government’s “influence” on the transaction. Premier Jeremy Rockliff has described the property as “one of Tasmania’s premier agricultural enterprises” and said there was “genuine community concern about the implications of the sale”. In a statement issued after Question Time, Dr Broad accused Mr Pearce of “hypocrisy” and defended Gresham House’s plans for the land, saying work was under way to “improve” the property, which he argued would create jobs and allow cattle production and irrigated cropping to continue.

The post Tas Primary Industries Minister Gavin Pearce sits on the Rushy Lagoon fence appeared first on Timberbiz.

Timberlink has appointed Sarah Bellman as its new Chief Executive Officer following the retirement of Paul O’Keefe. Source: Timberbiz Ms Bellman joins Timberlink with extensive strategic, customer and operational leadership experience across the manufacturing, mining, and quarrying sectors. Throughout her career, she has earned a reputation for strengthening operational capability, delivering sustainable commercial growth, and leading high-performing teams. With more than a decade of executive leadership experience at Hanson Australia and Heidelberg Materials Australia, most recently as General Manager, Southern Region, she brings a proven track record of leading complex operations and achieving strong commercial results. Ms Bellman has also made a significant contribution to the broader construction materials industry through leadership, governance and industry advocacy roles, as Chair of the Cement Concrete and Aggregates Association in Victoria and South Australia and Director of the Institute of Quarrying Australia. “The Board is confident that Ms Bellman’s combination of manufacturing and heavy industry experience together with her proven ability to lead customer delivery, operational excellence and drive organisational performance, supports Timberlink’s strategy and growth ambitions,” Ken Boundy, Chairman of Timberlink Australia & New Zealand said. Ms Bellman will be based in Timberlink’s National office in Scoresby, Victoria and will commence on 16 November 2026. “I am honoured to be joining Timberlink who play a vital role in the use of sustainable building materials and supporting Australian manufacturing in regional communities. I look forward to working with our dedicated team, customers and partners to build on the company’s strong legacy and drive future growth,” Ms Bellman said. Mr O’Keefe will remain with Timberlink to support an effective transition until he retires as planned in mid-December 2026.

The post Timberlink appoints its new CEO appeared first on Timberbiz.

Forestry Australia has made clear that its proposed Enhancing Native Forest Resilience carbon method is designed not to enable additional native forest harvesting, but to support scientifically demonstrated improvements in forest carbon, health and resilience. Forestry Australia President Dr Michelle Freeman said this misrepresents both the organisation and the proposal. Source: Timberbiz “Forestry Australia is the professional association for forest scientists, managers and other forestry professionals working across Australia’s forests and landscapes,” Dr Freeman said. “Our members work across conservation, native and plantation forest management, recreation, research, fire management, Indigenous engagement, farm forestry, environmental services and restoration. “Our proposed method reflects that breadth. It is not about logging more forests. It is about using carbon investment to support genuine, additional and scientifically demonstrated improvements in forest carbon and forest health and resilience.” The proposed method is intended to apply across different forest tenures and management objectives, including potentially national parks and conservation reserves, Traditional Owner-managed forests, private forests and state forests. It recognises that Australia’s forests are diverse, face different pressures and cannot be managed through a single prescription. Climate change, severe wildfire, drought, pests, invasive species and disease are increasing pressures on forests. In some landscapes, active intervention may be needed to restore forest condition, support regeneration and improve resilience. “Forest management is not a binary choice between harvesting a forest and leaving it alone,” Dr Freeman said. “Active and adaptive management in forests includes assisted regeneration, ecological restoration, cultural and prescribed burning, ecological thinning, pest and weed control, protecting habitat trees, post-fire recovery, or changing or deferring harvesting.” “The intervention should follow the science and the needs of the forest, not a predetermined land-use outcome.” The proposed carbon method takes a multifunctional, landscape-scale approach, recognising that forests provide multiple values including biodiversity, carbon storage, water, cultural values, recreation and renewable forest products. Forestry Australia has identified practical examples where carbon investment could support better forest outcomes, including assisted regeneration of Alpine ash forests affected by repeated severe fires and management of heavily stocked cypress pine forests where growth has stagnated. At the centre of the proposal is a simple principle: carbon credits should reward demonstrated carbon outcomes, not particular land uses. “The critical question is whether an intervention delivers a genuine, additional and conservatively measured carbon benefit, supported by sound science and environmental safeguards,” Dr Freeman said. A high-integrity method should therefore include credible baselines, robust carbon accounting, transparent modelling, appropriate treatment of leakage and permanence, environmental safeguards and ongoing monitoring. Forestry Australia submitted the proposal through the Australian Government process for developing new methods under the Australian Carbon Credit Unit Scheme. The Emissions Reduction Assurance Committee assessed it as having “excellent alignment” with the Offsets Integrity Standards and suitable for further method development when resources permit. “Carbon markets can provide important investment in healthier, more resilient forests, but only where the carbon benefits being credited are real,” Dr Freeman said. “The same integrity test should apply to every project: does it deliver genuine, additional and defensible climate benefit?” Dr Freeman said Australia also needed a broader conversation about the future of its native forests. “Reducing this discussion to whether someone is ‘for’ or ‘against’ native forest harvesting does not help us address the complex challenges our forests face. “We should instead ask how the best available science can help maintain healthy, resilient forests that store carbon, conserve biodiversity and provide the environmental, cultural, social and economic values Australians expect from them. “That is the purpose of Forestry Australia’s proposal. The management should follow the science. The carbon accounting should follow the evidence.”

The post Holistic approach to forest management is needed appeared first on Timberbiz.

Forest & Wood Communities Australia says the Senate vote allowing the Improved Native Forest Management (INFM) carbon method to survive does not resolve the serious scientific, economic and carbon-accounting concerns surrounding the scheme. Source: Timberbiz The Senate rejected the disallowance motion 34 votes to 27 after the majority of Federal Greens reached an agreement with the Albanese Government. Three Greens senators – Nick McKim, Vanessa Bleyer and Jordon Steele-John broke ranks and voted to disallow the method. AFPA is concerned and disappointed Australian Forest Products Association (AFPA) has also expressed disappointment and concern after the Senate voted to support the Federal Government’s approval of the controversial Improved Native Forest Management (INFM) method. AFPA says it has been working closely with the Coalition, including Senator Ross Cadell and the crossbench on the disallowance motion seeking to stop the flawed new carbon method. The decision means the INFM method can be used on other projects and will also allow the NSW Government to formalise the establishment of the Great Koala National Park.  The deal also creates further questions about the future value, transparency and integrity of ACCUs by excluding coal and gas offsets. Following the vote, AFPA met with Assistant Minister Wilson to raise more concerns about the method’s lack of transparency, potential impacts on ACCU values, and implications for managed forests and the private native forestry sector. We also highlighted ongoing concerns about unresolved technical issues with FullCAM. Forestry Australia analysis shows flaws in INFM Forestry Australia’s recent analysis showed the INFM method could overstate carbon benefits by 40 to 100%, raising serious questions about the integrity of the scheme. Over-crediting means issuing more carbon credits than the actual carbon saved or removed from the atmosphere — a problem that could undermine confidence in Australia’s entire carbon market. FWCA Chair Steve Dobbyns said the parliamentary vote settled a political question, but it did not settle whether ACCUs generated under the method represent genuine, additional and conservatively calculated carbon abatement. “You cannot fix a carbon-accounting problem with a political deal,” Mr Dobbyns said. “Whether the Greens support the INFM, the Coalition opposes it or Labor promotes it is ultimately irrelevant to the integrity test. “An Australian Carbon Credit Unit is supposed to represent one tonne of genuine carbon dioxide equivalent abatement. That requires evidence, not political agreement.” Formal request lodged with Emissions Reduction Assurance Committee FWCA has already lodged a formal request with the Emissions Reduction Assurance Committee under section 255AA of the Carbon Credits (Carbon Farming Initiative) Act seeking a statutory review of the INFM method. That request asks ERAC to examine unresolved issues including: the method’s arbitrary 40% ceiling on indirect carbon leakage; evidence that reductions in Australian native forest timber production are substantially displaced to imported timber; whether projects based on pre-existing government commitments satisfy the statutory additionality test; Forestry Australia’s concerns about FullCAM modelling and potentially substantial over-crediting; the relationship between the 15-year regional harvesting constraints and 100-year carbon protection obligations; and significant changes made to the method following public consultation. Mr Dobbyns said none of those fundamental issues had been resolved by this week’s agreement between Labor and the Greens. “The Greens say they have secured an increase in the required reduction in harvesting to 25 per cent in 2028 and 30% for projects registered after 2030, changes to plantation definitions and restrictions on who can purchase credits from projects such as the Great Koala National Park. “But the Federal Government’s own announcement says the Assistant Minister has asked ERAC for advice on variations to the method, including the proposed 30% threshold and plantation definitions. “So, before anyone declares the method ‘fixed’, we need to distinguish between a political undertaking and an amended methodology determination.” Mr Dobbyns said increasing the amount of timber production that must be removed from a region did not resolve the leakage problem and could potentially increase it. “If Australia removes more domestic hardwood production while Australian demand for timber remains, the obvious question is where the replacement timber comes from,” he said. “Recent Australian research found that approximately 81% of reductions in native forest hardwood production were displaced to imports. That does not automatically mean 81% carbon leakage, but it makes rigorous leakage assessment essential. “Yet the INFM method prevents the indirect leakage deduction from exceeding 40%, even if an independent assessment were to conclude that the actual carbon leakage was higher. “That is precisely the sort of issue ERAC should independently examine.” FWCA also noted that Forestry Australia has warned that structural features of the INFM method could overstate claimed abatement by between 40 and 100% before the full effects of leakage and carbon stored in harvested wood products are considered. “These are not arguments about whether people like national parks or whether koalas should be protected,” Mr Dobbyns said. “FWCA supports effective conservation based on sound science. The issue is whether taxpayers and Australian businesses should be required to pay for carbon credits unless the claimed carbon benefit can withstand rigorous independent scrutiny. “The Great Koala National Park was a government election commitment made before the INFM existed. It was announced as government policy and public funding had already been identified. “If the park was going to be created anyway, the fundamental additionality question remains: what extra carbon abatement is the taxpayer or ACCU purchaser actually buying?” Mr Dobbyns said the extraordinary division within the environmental movement reinforced the case for an independent examination rather than treating the Senate vote as the end of the debate. Three Federal Greens senators have publicly questioned whether the Great Koala National Park credits would be additional, while the Greens in Western Australia and Tasmania and prominent environmental campaigners have also opposed the INFM. “FWCA does not necessarily agree with their broader views on forestry or carbon markets, but on one point there should be common ground: carbon credits must represent real additional abatement,” Mr Dobbyns said. “The Senate has voted. The integrity questions remain.” “ERAC should now undertake the statutory review requested by […]

The post The senate vote on INFM does not fix the carbon integrity problems appeared first on Timberbiz.

The new Nokian Tyres Forest King TRS 3 tyre range delivers improved durability without compromising traction in demanding forestry work. As the next generation of the Forest King TRS traction tyre, it has been developed through long-term field testing and decades of industry-leading know-how in forestry tyre development. Source: Timberbiz The Nokian Tyres Forest King TRS 3 is the new generation of CTL traction tyres, introducing 15 sizes across the full range. The tyres have improved structural durability, while the tractive tread design with high tread depth delivers excellent traction and lateral grip. This tyre generation sets the new standard in forest performance with reinforced and thicker lugs, increased material thickness, and a redesigned shoulder structure. The strong diagonal structure with steel fortification offers excellent puncture protection. A wider lug design is supported by an extra terrace, while increased shoulder roundness and lug width improve durability in heavy-duty use. Special attention has been given to forestry applications where tyres are used with tracks and chains. The new shoulder and lug design enhances track-to-tire contact. Wide lugs, extra shoulder lift and optimized shoulder roundness give good performance with tracks and chains. The new generation has been engineered on the basis of detailed knowledge of real forestry operating environments. Tyres have been tested over several years in partnership with end users to validate improvements under practical working conditions. “Our development work is based on listening to customers and observing tire performance in real forestry conditions. Long-term testing and direct customer feedback ensure that each improvement reflects practical field experience,” said Teemu Vainionpää, Senior Product Manager at Nokian Tyres. To fully utilize the performance upgrade available with the new tire, Nokian Tyres makes it available as a complete wheel with a matching heavy-duty wheel and inner tube. The complete wheel is engineered to complement the tire’s properties, supporting optimal performance in forestry applications. The Nokian Tyres Forest King TRS 3 range is now available in a comprehensive selection of sizes for all CTL forestry machines. The new generation is fully compatible with its predecessor: wheels, tubes, tracks, and chains are interchangeable with the new TRS 3. The expanded lineup introduces several key additions to meet evolving industry needs. The new 780/55-30.5 size brings a high-traction, high-load capacity option to the top end of the range, while the 650/60-26.5 provides a narrow option especially for harvesters. These additions significantly increase the options available to optimize equipment.

The post Nokian’s new king of the forest appeared first on Timberbiz.

Waratah Forestry Equipment has launched the all-new H216X Harvesting Head, engineered specifically for the brutal demands of hardwood. Source: Timberbiz Made for tracked machines and harsh applications, the two-roller H216X has purpose-built features to withstand ruthless hardwood stresses. Ideal for harvesting late or final thinnings, it’s naturally capable in softwood or debarking applications, too. “The H216X provides operators with the heavy-duty features they need to tackle hardwood while helping to maximize accuracy at the same time,” said Brent Fisher, product marketing manager for Waratah. “It delivers the high-performance feeding, and agility crews want while providing the measuring accuracy, extra-large sawing capacity and output they need.” The H216X offers versatility and strength, with a net weight of 1591 kg and 1705 kg/3 with topsaw, a maximum upper delimb opening of 650 mm and a maximum sawing capacity of 750 mm. It incorporates reinforced, heavy-duty structural components and proven Waratah engineering to help support long service life, no matter the working conditions. “We wanted operators to have the confidence to handle crooked hardwood and harsh conditions — whatever challenge the woods throws at them,” Mr Fisher said. “So, we engineered the H216X — a true performer that’s efficient, accurate, durable, and Built To Work®.” The H216X utilizes Waratah’s TimberRiteTM H-16 system, which helps elevate head control while providing connectivity options to help keep loggers efficient, productive and in the know. As with all Waratah products, the H216X comes with easily accessible support for dealers and customers, as well as genuine Waratah parts with an industry-leading warranty.

The post Waratah’s new H216X harvesting head for hardwood appeared first on Timberbiz.

Metsä Fibre, part of Metsä Group, is starting change negotiations concerning potential temporary layoffs at its Joutseno pulp mill. The negotiations will involve the entire personnel of the mill, approximately 160 people in total. Source: Timberbiz “The pulp market situation remains challenging. Due to the demand outlook and the situation in the wood market, we need to prepare for adjusting pulp production for a longer period than previously anticipated,” said Ismo Nousiainen, CEO of Metsä Fibre. “For this reason, we are now compelled to initiate new change negotiations concerning potential temporary layoffs at Joutseno.“ Metsä Group’s pulp and sawmill business Metsä Fibre produces pulp, sawn timber and other bioproducts such as biochemicals and bioenergy. The products are made from northern wood and are an alternative to fossil materials. In 2025, sales totalled EUR 2.6 billion, and the company employed about 1,400 people. Metsä Group’s parent company Metsäliitto Cooperative is owned by approximately 90,000 Finnish forest owners. The sales of the whole Metsä Group were EUR 5.8 billion.

The post Metsa Fibre to layoff all personnel at its pulp mill appeared first on Timberbiz.

A new high-tech fire detection system has been activated at Mount Crawford Forest in South Australia ahead of the 2026-27 fire danger season. It’s the first time this technology has operated in a peri-urban area in South Australia after demonstrating its value as a fire detection tool across the Limestone Coast over the past three fire danger seasons. Source: Timberbiz The new fire detection camera represents a new milestone in the strategic partnership between the South Australian Government, Forestry SA and emergency fire services including the South Australian Country Fire Service, as the AI-powered technology comes online for the first time in a particularly fire-prone section of the southern Barossa and northern Adelaide Hills. The camera is located on an upgraded fire tower within Forestry SA’s Mount Crawford estate. It captures ultra-high-definition panoramic vision that is fed into a system that combines AI, satellite technology and human verification to identify potential smoke and fire activity. This system, delivered by bushfire detection and intelligence provider Pano AI, provides real-time alerts and intelligence on fire location, behaviour and proximity to people, assets and firefighting resources, supporting more informed decision-making by emergency services and land managers. It builds on the successful implementation of eight AI-powered bushfire detection cameras across the Limestone Coast forestry region, funded by the State Government and managed by the Green Triangle Fire Alliance. The Limestone Coast camera network detected nearly 90 unplanned fires over the past three fire danger seasons, delivering valuable intel to fire responders and demonstrating its value as an early bushfire detection system. The newly operational AI camera unit at Mount Crawford Forest provides the South Australian Government with a valuable opportunity to assess how the technology performs in a more complex peri-urban landscape, where plantations, native vegetation, farms, businesses, infrastructure and residential communities are closely interconnected. As the South Australian Government continues to explore how AI can potentially strengthen public sector operations and service delivery, it is also establishing a Royal Commission into Artificial Intelligence. This nation-leading inquiry will hear evidence and receive submissions from a broad cross-section of the South Australian community, including business, industry bodies, unions, technology developers, academics, independent experts and representatives of creative industries. Terms of Reference will be developed focusing on the economic and social opportunities and challenges that AI will bring to South Australia, in particular: Policy and regulatory settings, both at a state level and those that need to be managed nationally; Impacts and opportunities for education including schools and higher education (tertiary and vocational); Impacts and opportunities on public services provided by the state including health; Impacts and opportunities for South Australia’s skills and workforce; and Opportunities related to AI related infrastructure including the interrelationship with energy transformation, water usage and associated impacts (such as electricity grid implications).   South Australia has already led the nation in seizing the opportunities presented by, and managing the risks of, Artificial Intelligence. The State was the first to establish a Cabinet Minister for Artificial Intelligence, has established the Office for Artificial Intelligence, has developed a Data Centre Strategy, is home to the Australian Institute for Machine Learning at Lot Fourteen, and home to the Responsible AI Research Centre. Dates for the 2026-27 fire danger season typically vary by location and will be announced by the CFS at a later date.

The post High tech fire detection at Mount Crawford appeared first on Timberbiz.

New monitoring work has revealed startling proof of possum damage to native mountain tōtara and kaikawaka/mountain cedar trees in a Mid Canterbury forest. The Department of Conservation used aerial photography to measure canopy die back in the Wilberforce and Mathias valleys last summer. Source: Timberbiz The monitoring has revealed the Wilberforce forest is now in very poor condition, with roughly 50% of the vulnerable tōtara and cedar trees impacted by possums. Cedar and tōtara are highly palatable to possums, and their browsing causes canopy die off, limits forest regeneration and accelerates forest collapse. The upper Wilberforce and Mathias catchments contain a nationally significant cedar and tōtara forest type, which is rare in New Zealand. DOC National Predator Control Programme Manager Peter Morton says an aerial pest control operation is being planned for this spring to reduce high possum numbers, as well as rats and stoats, and protect the forest from further damage. “Seeing so many dead trees was a wakeup call. This really has become urgent action for us. If we don’t control possums, these forests could collapse,” he said. Peter Morton says the Wilberforce is also a significant site for hunters, particularly for red deer trophy hunting, and DOC has engaged with hunting groups about the upcoming operation and agreed to the use of deer repellent. “DOC is also supporting a community-led initiative to undertake ground-based predator control in part of the forest which will start soon. “Stakeholders requested that operational timing avoid periods of grazing to minimise impacts on neighbouring farming activities, and avoid peak recreational use periods, including the deer hunting roar period, which we have accommodated.” Peter Morton says the last predator control operation in the Wilberforce area in 2018 was successful but possum and rodent numbers have slowly increased since. “We want to ensure these rare forests don’t disappear as these are nationally significant ecosystems found nowhere else in the world,” he said. DOC prioritises predator control to protect the most at-risk populations of native species, threatened forests and areas of high ecological value. The Wilberforce site is one of more than 60 forest sites throughout New Zealand protected through the National Predator Control Program. Most sites are returned to every 2-5 years depending on predator numbers and environmental conditions. Overall, DOC protects about 1.8 million ha or 20% of public conservation land on a sustained basis through predator control. The Wilberforce/Mathias valley aerial operation using biodegradable 1080 cereal baits is planned for the first clear weather window between 14 September and 30 November.

The post Totara and cedar trees in Wilberforce forest hit by possums appeared first on Timberbiz.

New Forests has appointed Sam Rorabaugh as Global Head of Investments, replacing David Shelton, who will now focus fully on his role as Managing Director, Australia and New Zealand, and New Forests’ overall global growth ambitions. Source: Timberbiz In this role Mr Rorabaugh will provide leadership across New Forests’ global investment platform and work with regional investment teams across North America, Australia and New Zealand, Africa and Asia to support the continued development and execution of investment opportunities. He will continue in his current role as Regional Director of Investments, North America, alongside the Global Head of Investments position. Mr Rorabaugh will also play a key role in the recently launched Global Landscape Opportunities strategy, New Forests’ first global natural capital offering which will invest across forestry, agriculture, associated processing and infrastructure, and complementary markets such as carbon and biodiversity. Since joining New Forests in 2020, Mr Rorabaugh has led the North American investment team while supporting investment activity across New Forests’ regional teams. He has also worked across New Forests’ global investment and business development teams, supporting capital-raising initiatives and investment transactions. Mr Shelton has played a significant role in many of New Forests’ investments across forestry, agriculture and related infrastructure and processing, as well as developing the firm’s investment platform through his leadership, technical expertise and focus on people and client relationships. “Sam brings strong investment experience, a collaborative approach and a clear understanding of the opportunities available across New Forests’ breadth of natural capital strategies,” Michelle Elliot, Executive Director, Global Funds Management, New Forests, said. “Since joining New Forests, he has built trusted relationships externally amongst our investors and internally across our regional investment teams. “Sam’s appointment reflects the strength of our internal talent and positions him to build on the global investment platform established under David’s leadership. I look forward to working closely with Sam as we continue to develop opportunities for our clients across North America, Europe, Latin America and our other regional markets.” David Shelton, Managing Director, Australia and New Zealand, New Forests, said Mr Rorabaugh had developed a strong understanding of New Forest’s investment approach and had made an important contribution across New Forests’ business. “As natural capital continues to evolve into a recognised asset class, I’m excited to be working closely with Sam to help more investors understand the importance of including natural capital as an essential component of their portfolios,” he said.

The post New Global Head of Investments at New Forests appeared first on Timberbiz.

The Forest Practices Authority (FPA) has announced it will commission an independent review into its investigation processes. Source: Tasmanian Country The organisation’s operations have been under scrutiny, with the Farmers and Landowners Action Group (FLAG) forming after the FPA handed out six-figure fines to farmers for unauthorised land clearing on private property. FPA Chief Forest Practices Officer Anne Chuter said she was aware of concerns that some landowners have raised about its investigation and enforcement activities. She said the FPA had a responsibility to enforce the law fairly, consistently and in the public interest. “At the same time, we are committed to listening, learning and continually improving how we engage with the community while carrying out these responsibilities.” Ms Chuter said the FPA would be strengthening its engagement with landholders. “We are working closely with TasFarmers to review and improve our communication materials so information about land clearing requirements is clear, practical and accessible. “Second, we have commissioned an independent review of our investigation processes.  “The review will examine whether these processes and our decision-making are appropriate, proportionate, transparent and consistent with community expectations. “Independence is critical to the credibility of this work, so the review will be conducted at arm’s length from both the FPA and the regulated community, while still providing opportunities for stakeholders to contribute their views and experiences.” The organisation said its compliance officers’ role includes gathering information, assessing evidence and, at times, having difficult conversations about legal obligations and compliance. Ms Chuter said this was important work, and the FPA did not take it lightly. “There are occasions when compliance officers need to use formal legal processes or language, including entering a property where the law provides that authority to collect information relevant to an investigation. “We understand these interactions can feel personal or confronting. “We also recognise that most landowners are doing their best to understand and comply with what can sometimes be complex requirements.” Premier Jeremy Rockliff said he was listening to what farmers were saying. “It’s clear there needs to be change, and we continue to work with farmers to deliver that change. “Work is underway on an independent review of the Forest Practices Association following a meeting with the Government and FLAG on September 1. “Following the rally, the Minister for Primary Industries and I met with the FLAG farmers group and TasFarmers to talk about next steps. “I want to thank our farmers, it’s not easy finding time in spring to get away from the farm and come to the city, so I very much appreciate that they stood up and made their voices heard.” The government has begun consultation on the Forest Practices Regulations.

The post FPA to commission an independent review of its processes appeared first on Timberbiz.

Tasmanian farmers have driven their tractors to Parliament House to protest against forestry regulation they say is fining them out of business. Source: Pulse Tasmania The tractors rolled into Hobart from across the south-east and the Midlands, Huon Valley and Derwent Valley for the Thursday rally, which began at 11am. The protest targets the Forest Practices Authority (FPA), which the farmers say hands out heavy fines for clearing trees on their own land. Organiser Lindsay White said the campaign started just before June, after his friend William ‘Farlie’ Fergusson was fined $100,000 for what White described as taking down “a few trees” to install a centre pivot in a calving paddock. White said he posted about the fine online and had more than 100,000 views within four days. “I thought, hello, there’s something seriously wrong here that so many people have responded so badly,” he told the crowd of hundreds. He said a King Island farmer was fined for clearing fence lines to fireproof his property, with the penalty reduced from $170,000 to $140,000, then to $100,000, with no reason given. White said the authority had fined 50 farmers about $2 million over the past five years and would not say where the money had gone. Fergusson’s wife, Melissa Ferguson, told the rally the couple never expected to be lobbying the government. She said the family had farmed at Grindstone Bay on the east coast since the 1950s and that her husband now had a criminal conviction over farm works on their own land. Ferguson said the trees were cleared in 2023, partly to make a sheltered paddock for calving heifers, during a year in which she was having chemotherapy, surgery and radiation after a breast cancer diagnosis. She said the couple accepted they had not had a required forest practices plan and had cooperated fully, but that the process that followed was unfair. Ferguson said the FPA board offered a prescribed fine of $132,000, even though its own officer put comparable cases at between $45,000 and $90,000. She said the couple were never given a reason for the higher figure. “The board thinks they are above justifying their actions,” she said, describing what she was told when the family asked how the fine was calculated. Ferguson said the family offered to rehabilitate 27 hectares elsewhere on the farm, four times the area cleared, but were told they would still have to pay $82,000. The matter went to court, where her husband pleaded guilty and was fined $100,000. Ferguson said she had lost trust in the current FPA board and called on its members to resign. The farmers want an independent review, simpler rules and compensation where land use rights are taken away. Central Highlands farmer Will Bignell, from Thorpe Farm near Bothwell, told the rally the fight was about far more than farming. “Every new rule on its own is always explained as something small. It’s just another form, another fee, another consultant, another inspection,” he said. “But who is measuring what happens when you stack it all up? You have a wall.” Bignell, whose family has farmed the same land for 202 years, said the problem was regulation built around the worst-case scenario. “Good regulation manages risk. It doesn’t pretend risk can be eliminated,” he said. “When every rule is designed around the worst possible operator, we end up regulating the good operators as though they’re bad ones and everybody pays the price for that.” He said farmers who delivered environmental benefits on their own land were being left to foot the bill. “Private land is privately owned. If biodiversity on someone’s farm provides the whole community a benefit, then the whole community should help pay for it,” he said. “Don’t restrict what the owner can do and then send the entire bill to the landowner.” Bignell said the state government could not set an agricultural growth target while regulating farmers out of the investment needed to reach it. “You want a $10 billion agricultural industry? Great. Show us your numbers,” he said. “You’ve measured what you want from us – now start measuring what you are doing to us.” The rally spilled into parliament, where the state government faced questions from both the opposition and the crossbench. Shooters, Fishers and Farmers MP Carlo Di Falco asked Premier Jeremy Rockliff what he was doing for farmers. The premier said he had seen the tractors parked outside and praised White for “rallying the cause”. He said he would meet White and other farmers this afternoon. Rockliff said governments needed to ease the “red tape burden” on farmers but that regulation still needed to be “sensible and balanced”. Deputy Labor leader Janie Finlay asked Primary Industries Minister Gavin Pearce whether he would support the independent review the farmers wanted. Pearce did not commit to one. He said he heard the concerns “loud and clear” and had spoken to TasFarmers three times this morning. He said the issue was structural and could not be fixed “with a wave of a magic wand”. Pearce said he looked forward to hearing from the farmers and pointed to an inquiry already underway into land clearing at Rushy Lagoon. The FPA, in a statement, said it was “aware of concerns” raised by some landowners about its investigation and enforcement activities. Chief Forest Practices Officer Anne Chuter said the authority had a “responsibility to enforce the law” but was “committed to listening, learning and continually improving how we engage with the community”. She acknowledged many landowners were “doing their best to understand and comply with what can sometimes be complex requirements”. Chuter said the independent public regulator had commissioned an independent review of its investigation processes. “The review will examine whether these processes and our decision-making are appropriate, proportionate, transparent and consistent with community expectations,” Chuter said. “Independence is critical to the credibility of this work, so the review will be conducted at arm’s length from both the FPA and the regulated community, while still providing […]

The post Tas farmers roll tractors to Parliament House in protest over forestry fines appeared first on Timberbiz.

The majority of the Federal Greens party room has decided to fall into line with their NSW counterparts and allow a plan to use carbon credits to support the creation of the Great Koala National Park planned for northern NSW. Source: Timberbiz The verdict means the Federal Government’s Improved Native Forest Management carbon method will survive a disallowance motion scheduled for September 15 that had been put forward by the Nationals and backed by the forestry industry. A vote on Thursday saw the motion fail 34 to 27 votes. The INFM Improved Native Forest Management method gives state governments the option to support carbon sequestration alongside existing timber production and recreational uses, creating new opportunities for regional communities while delivering emissions reduction and environmental and biodiversity benefits. The measures will enable the Clean Energy Regulator to give effect to the New South Wales Government’s commitment to restrict the sale of Australian Carbon Credit Units (ACCUs) generated within the Great National Koala Park to a specified class of entities. This will apply only to projects under the INFM method and only where a state government chooses to opt into those requirements. In addition, the Assistant Minister for Climate Change and Energy Josh Wilson has written to the Emissions Reduction Assurance Committee (ERAC) seeking advice on variations to the INFM method, including: increasing the amount of forest that must be protected against established harvesting baselines before projects can receive any carbon credits, rising to 30 per cent for projects registered from 1 July 2030; and clarifying the definitions of plantation forest and native forest within the method.   The ACCU Scheme is an important part of Australia’s pathway to net zero emissions, helping drive emissions reductions while creating opportunities for landholders, First Nations peoples, regional communities and businesses.

The post Federal Greens fall into line with NSW counterparts on carbon credits appeared first on Timberbiz.

The trends we have been seeing in log export markets over the last six months have been dominated by stability and price improvements over time. This has continued in August with China improving by NZ$1 – NZ$3 per m3 at the wharf gate and India remaining steady at prices slightly ahead of China. I acknowledge none of this suggests it is time to dig out the dancing shoes or pop the top off a bottle of champers, but the great news story is stability. China selling prices improved to US$127 A grade shorts basis for most sellers for August. Total inventory across the eastern seaboard is at 2.47mill m3, a drop of 50,000 m3 from June. As at early August, port offtake has been running at 57 – 58,000 m3 per day. These are very good numbers for this time of year, heralding well for continuing improvement with manufacturing output numbers usually better during the cooler Autumn period. The wood use numbers and trends in China are even better considering the Purchasing Managers’ Index (PMI) which fell to 48.5 in July compared to 50.4 in June. The China economy grew 4.3% YOY, the slowest it has been in three years. When the national productivity indices have been worsening, wood use has been improving. This is “encouraging news indeed”. NZ supply across our breakbulk log exports has been at a lower ebb but this mostly relates to Gisborne port. The number of days available for vessels to load has been significantly impacted by severe swells. This has not allowed vessels to berth to start loading or has meant they have had to cease loading. Meanwhile, our domestic sawmills continue to be shining beacons on the sea of tranquillity.  I hear Canterbury mills are the brightest beacons of the lot. Demand is strong and prices are stable to firm. Some out of the ordinary log grade orders are also indicative of more vibrant usage. Long may that continue! It was fantastic to see the NZ PM open the new Cross Laminated Timber (CLT) plant near Rotorua recently with some glowing words about the forestry sector now poised to enable the regular building of multi-story high quality and high strength buildings. The prospect of milling more logs in NZ is highly supported by the forestry sector. Research and innovation are the foundation stones of a dynamic change toward engineered wood products, whilst displacing the environmental nasties like steel and concrete. Whilst some leaders have spoken ambitiously about an increase in sawmills, the one outstanding feature of that opportunity is it will not be in standard dimension lumber and will need to include the likes of CLT. Last month I covered a little on the India market with a promise of more. Surrounding Kandla, as the one port to discharge NZ logs currently, there are about 2,500 sawmills. But an India sawmill is a little different to NZ. An India sawmill is typically 2 band saws. The first is horizontal, used to break the log down into flitches. The second is a vertical used to produce timber from the flitches. A sawmill will generally be 6 – 7 people, with the operation being highly manual. There are no electronics and the sawdust extraction systems typically include a wide mouth shovel. This description of an India sawmill is replicated many thousands of times over in China with the only difference being the break down saw is more typically vertical rather than horizontal. Worker pay rates in India and China are a fraction of NZ and the cost of doing business dynamically less. With minor niche market exceptions, there is no way a Kiwi sawmill can sell standard dimension lumber in China or India at anything other than as a loss-making fall down grade. Sea freight rates for NZ Log shipments have been like Donald Trump on a really good day.  Unpredictable, changeable for no reason, with scant regard for actions and consequences. Indeed, shipping cost are the largest reason why forest owners are not enjoying a better return at present. The good news here is once the November Primaries sort the Red one out, after six months of fixing a complete mess, oil supply and demand will hopefully be all back to a closer normal. 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 – stability is returning to the market appeared first on Timberbiz.