Australian timber industry news

On 7-8 November the 10th edition of the International Hardwood Conference was held at the Hilton Vienna Park in the Austrian capital. The Conference was hosted by the Fachverband der Holzindustrie Österreichs, which co-organized the event with the two usual partners: the European Organization of the Sawmill Industry (EOS) and the European Timber Trade Federation (ETTF). Source: Timberbiz The event drew many participants from 26 countries all over the world. Participants had the opportunity to attend an interesting study tour – the group visited three companies, including the innovative parquet company Weitzer Parkett, Mühlbauer Holz, a leading timber merchant in Austria, and TEAM 7, which produces top-notch, custom-made solid wood furniture. The conference was opened by an economic overview provided by Christoph Schneider of the Economica Institute. Mr Schneider showed that increasing global tensions are having a negative effect on stability. Businesses will operate in an increasingly challenging environment but there will also be opportunities such as mainstreaming of artificial intelligence. Silvio Schüler of the Austrian Research Centre for Forests delivered an insightful presentation on European hardwood forests. The share of hardwood forests is rising across Europe and with climate change trees are growing faster. Forests’ health is key for a stable provision of raw materials to the hardwood industry. However, climate change and forests pests are threatening forests’ vitality. Adapting forest management to these changed conditions is very important as well as increasing material uses of hardwood. Presentations about the market situation around the world were delivered in the second session of the conference. In their introducing remarks, Mrs Maria Kiefer-Polz, EOS Vice-President for Hardwood, and Mr Ad Wesselink, ETTF President, argued that in Europe the last couple of years were quite challenging for the hardwood businesses. The big question mark for operators in the sector is whether the market has bottomed out and 2025 can really be the year of recovery. The hardwood businesses are also adjusting to a new cost structure amid higher costs for energy, personnel, equipment etc. Michael Snow of the American Hardwood Export Council showed that 2024 is a quite difficult year on the other side of the Atlantic as well. Production in the United States has been on a long-term declining trend due to weak home demand for basically all hardwood applications. Exports to overseas countries are sluggish but, overall, slightly better than US demand. However, subdued Chinese demand is taking a toll. In his presentation about the Chinese market, Mr James Xu of Shanghai AM Forest Products stressed the importance of using new sales channels such as local social media to maintain market share in the challenging Chinese. Innovative sales methods are really gaining momentum in China. Jean-Christophe Claudon of the International Timber Trade Organization delivered a presentation about tropical wood. Tropical sawnwood production as a share of overall global sawnwood production has been relatively stable over the last 30 years at around 13/15%. A very relevant market for the hardwood industry – the parquet market – is also going through a difficult period, as Ms Isabelle Brose showed in her presentation on trends in the European parquet industry. The sector is focusing on incremental innovation such as, among other things, water-resistant, acoustic and smart wood flooring. In the Q&A session, better promotion of products is seeing as crucial for the future of the sector by presenters intervening in the morning, particularly as younger consumers are increasingly sensitive to environment-friendly products such as sustainably produced hard-wood. Mr Harald Mauser of the European Forest Institute gave an overarching presentation on the impact of EU legislation on the forestry sector. Unfortunately, an impact assessment calculating EU legislation costs for the sector is missing, also considering that policies affecting the sector are on the rise. On a brighter, the reduction of administrative burdens is one of the targets of the new European Commission, but it remains to be seen how this will be applied in practice. The enhanced stress on a circular bioeconomy provides opportunities for the sector but the policy framework needs to be coherent. Dialogue with decision-makers and the wider public will be vital for the woodworking industry, including for the hardwood industry. The audience was then treated to two relevant panel discussions. A crucial topic of the conference, the EU Deforestation-free Regulation (EUDR), has been addressed in the first panel discussion and preceded by a comprehensive introductory presentation delivered by Franz-Xaver Kraft of GD Holz. The announced “entry into application” delay expected to be approved soon by the EU Institutions has been unquestionably welcomed by the international timber industry, which is working hard to implement the challenging requirements imposed by the EUDR. Certification schemes such as PEFC and FSC, which were also on stage, offer valuable support for companies aiming to comply with the EUDR by providing traceability frameworks, risk assessment tools, deforestation-free standards, and documentation that align closely with the regulation’s requirements. While companies may need to implement supplementary due diligence measures, certification schemes provide an effective foundation for ensuring compliance with the EUDR and reducing the administrative, legal, and logistical challenges associated with the new regulation. The second discussion was very inspiring and focused on innovation in the hardwood sector. The speakers’ interventions focused on innovation in hardwood furniture and construction, both on the possible uses for hardwood in construction and on the potential for wood-based hybrid constructions. The last session has been opened by an overarching presentation on possible new material concepts for the hardwood sector. You can download presentations at https://ihc2024.at/presentations.html  

Robert Allinson, UK Sales Manager, UPM Plywood, gave delegates at the TDUK Global Market Conference an overview of the Finnish softwood plywood sector, outlining its importance to the UK market, and the recent changes seen since the pandemic. Source: Timberbiz He also highlighted raw material supply as one of the biggest challenges currently facing the industry, along with rising costs and high log prices in particular. UPM Plywood manufactures high-quality WISA plywood and veneer products for a number of industries, including construction, vehicle flooring, shipbuilding and other industrial applications. It owns seven mills across Estonia and Finland, owns 900,000 hectares of forests in total, 600,000 of this within Finland and also manages 500,000 more. Forestry is a significant industry in Finland, which has an overall forest cover of 75% – or 22.8 million hectares. This compares with 39% forest cover across the EU, and just 13% in the UK. “Finland is reasonably unique in that 60% [of its forest cover] is in private own-ership. There are about 620,000 individual forest owners, which for a population of about 5.6 million is about one in nine – so obviously Finland is culturally very invested in forestry. Around 15.9% of all exported goods from Finland are from the forest product sector,” Mr Allinson said. The UK imported around 1.16 million m3 of plywood in 2023. Around 321,000m3 of this was softwood plywood, 12% of which came from Finland. Hardwood plywood imports were 839,000m3, of which Finland contributed 2.7%. Mr Allinson noted that Finnish plywood imports to the UK have fallen since their high in 2021, but that this largely followed the COVID disruption seen across large parts of the industry. “Interestingly, the value of the softwood imports into the UK from Finland is about £16 million, and hardwood is about £26 million, reflecting the high value of some of those birch products,” he said. This year for Finnish exports a lot of markets have been very strong. “The birch side of things is up slightly in Europe, though down across some other markets. Softwoods are mostly up in European markets, but down for the UK, where softwood plywood from Finland generally has seen a decline reflective of the conditions here,” Mr Allinson said. Like a number of other speakers at the Global Market Conference, Mr Allinson highlighted raw materials as a big challenge for the industry. “Raw material supply is a big issue,” he said. “We hope that prices will stabilise this year, but the industry also needs to look at how to best use the resources we have to allow everybody in the supply chain to get a return, because otherwise we won’t get the investment we need,” he said. While he noted that economic slumps aren’t new to the forestry industry, other issues were also playing their part in making the sector a challenging one. “Import sanctions on Russia, although vital, have caused some issues in coal markets, and log prices have been particularly high, affecting availability. There’s hope that Spruce prices will stabilise this year, with only small increases into next year. But raw material availability is definitely a challenge for all manufacturers,” he said. “The aftermath of the pandemic, as we know, has also caused some issues in the markets, particularly around the ability of companies to get gain credit for trading purposes, and we’ve certainly seen construction, distribution and manufacturing businesses failing as a result.” Despite this, Mr Allinson does believe that an upturn is on its way. “I don’t think the up-turn is going to catch anyone out, unfortunately, but there’s certainly a backlog of construction across the UK and most of our core markets in Europe, and obviously in the US. And there’s some positive projections and I think the wood panel sector is likely to improve through next year with levels being predicted to return to pre-COVID levels by 2027.” The growing move towards renewables and low-carbon materials also offers some positive hopes for the timber sector, Robert said, with a strong focus on wood products for construction that are certified, environmentally sustainable and dependable. “Legislative changes across Europe are certainly enforcing embodied carbon limits in construction and this will create further opportunities for wood. Denmark, for example, has al-ready written limits on embodied carbon into their building codes, and I think Sweden, the UK and France are not far behind, which is good news.” Mr Allinson then turned to the question of whether, once the market does improve, we will have enough wood to meet the demand. “Supply is as always going to be key, and strong reciprocal relationships with customers will hopefully prove to be fruitful once the upturn comes and supply gets tight.” He explained that in Finland, only 75% of the annual growth of the forest is harvested, so it has a good model in terms of sustainability of supply. But he noted that log production is declining in Europe, and log prices are kind to rise. “The expectation is that wood products will play an increasing role in construction due to their sustainability credentials, but with no forecasted increase in log availability as an industry, we’re just going to need to find ways to use what we have to our best advantage and more efficiently. So perhaps the question should be how we use the wood we have to the best effect. The reality is that resources are limited, and we need to ensure there’s room to build profitability throughout the supply chain so that everybody is able to get a return and be profitable,” Mr Allinson said.

This Christmas, a beautiful tree from Forestry England Kielder is making a 330-mile journey to stand beside the Houses of Parliament, bringing festive cheer to the heart of Westminster. Source: Timberbiz One of Kielder Forest’s 150 million trees, the 40-foot Sitka spruce was carefully selected by experts at Forestry England for its perfect shape and impressive size. This iconic tree will stand at the foot of the Houses of Parliament throughout the festive period. Once the tree has been chosen, Forestry England’s skilled team carefully cuts down the tree to prevent any damage to its branches. It’s then wrapped, loaded, and ready for its long trip to London. To ensure the tree is as sustainable as possible, Forestry England selects it from an open area in the forest to allow ground plants flourish. After Christmas, the tree will be chipped and reused in London’s parks and green spaces, continuing to benefit the environment. Richard Cooper, Beat Forester at Forestry England, said: “Felling this tree is a highlight of my year. It has to be just right, and it’s a great feeling to see it standing next to the Houses of Parliament. Getting it safely from Northumberland to London is a skilful process, and I’m proud knowing that so many people will enjoy it in Westminster.” This year’s spruce, which started life about 40 years ago, is one of 120 trees from Forestry England Kielder that will bring Christmas cheer across the UK, with others heading to places including Ipswich, Sheffield, and Stockton-on-Tees. Another 25ft tree has been delivered to Westminster Hall and a 12ft tree will stand in the Speaker’s House. Kielder Forest is already preparing for the future, planting thousands of seedlings to keep this tradition alive and to supply timber locally.

Sustainable Timber Tasmania is stepping up its efforts to monitor the swift parrot, with observations indicating active foraging in and around forest reserves and production areas. Source: Timberbiz Sustainable Timber Tasmania’s Swift Parrot Monitoring Program is in full swing, with recent surveys conducted across key areas of Tasmania, including the Tasman Peninsula, Southern Forests, and Eastern Tiers. Sustainable Timber Tasmania’s research and operations teams have reported encouraging signs of swift parrot activity, with small groups of parrots observed foraging on blue gum and black gum at various sites, both within forest reserves and surrounding production areas. While no nesting activity has yet been identified so far, these early observations signal a positive start to the season and return of the parrots to Tasmania Ongoing monitoring efforts are part of Sustainable Timber Tasmania’s commitment to conservation and sustainable forest practices and demonstrate active management of potential breeding habitat for swift parrots within Tasmania’s public production forests. Over the past fortnight, the teams have made significant progress; retrieving acoustic recorders from previous surveys, conducting targeted field surveys and deploying additional equipment in potential swift parrot breeding areas. This comprehensive approach allows for adaptive forest management based on real time monitoring and minimising potential disturbance to the species and its habitat. “Sustainable Timber Tasmania continues to prioritise the management of potential swift parrot habitat, adapting its forest practices as needed to support a successful swift parrot breeding season,” Sustainable Timber Tasmania’s General Manager Conservation and Land Management Suzette Weeding said. “Our proactive approach to acoustic monitoring and field surveys is invaluable in detecting various forms of bird activity across the landscape. By closely monitoring the swift parrot, we can adapt forest management activities to align with the species needs throughout its breeding season. “Our goal is to see that Tasmania’s production forests continue to support both sustainable timber harvesting and potential wildlife habitat, balancing conservation and responsible land management,” she said.  

This year’s OFO forest photo competition saw an impressive array of over 120 entries from students across the Limestone Coast and Western Victoria, showcasing their perspectives on our iconic landscape. Source: Timberbiz Entries were brought to a panel of judges, and top honours were given to Year 6 student Hunter Crowe, and Year 12 student Ellie Cookson. “I like to go walking with my family out in the bush, to find and explore new and amazing sceneries,” Hunter explained. “I most enjoy the way that walking in nature can make you feel better, especially when we go Geocaching. It’s amazing to see all the revegetation after the scars from bushfires, and the interesting shapes that the existing trees have formed.” OneFortyOne CEO Wendy Norris expressed her admiration for the students’ work. “The perspectives shared by these young photographers are truly inspiring,” Ms Norris said. “The enthusiasm and creativity shown highlight the strong connection our community has with local forests.” Launched in August to celebrate National Forestry Day, the competition was designed to encourage students to explore and share their unique perspective about what the forest means to them. Ellie captured the essence of local forests with her stunning photograph and heartfelt words about the surprises and unique sights in the forests she calls home, while Hunter’s winning entry beautifully depicted his love for nature, and the joy he finds in exploring the bush with his family. “I love all the forests around because there’s always something new to see, something unique in its own way around every single corner, you never know if there’s going to be a surprise such as a kangaroo, emu, a bird or simply a tiny mushroom. Everything is special and I’m glad to call it home,” she said. “Their ability to capture the beauty and resilience of our forests emphasises the importance of thoughtful stewardship of the forest for generations to come,” Ms Norris said. “We are incredibly impressed, and thankful to all of the students for their contributions to this celebration of nature.” The winning photos will be featured on OneFortyOne’s social media channels and website, and a selection of entries will be displayed at a number of exhibitions in the region.

Pan Pac has a new General Manager – Lumber Mark Kennedy, who joined Pan Pac in November 2024. Source: Timberbiz Mr Kennedy holds a Bachelor of Mechanical Engineering (Hons) and an MBA. He has vast experience in operations management in manufacturing environments globally, including as General Manager Operations with Asaleo Care. His early career also gave him experience at the Kawerau Pulp Mill. Mr Kennedy has a strong background of leadership, technical skills and experience with industrial relations and multi-union environments.

To support the use of timber in construction, Forest & Wood Products Australia is introducing a new industry standard aimed at streamlining compliance for exterior timber wall cladding. Source: Timberbiz The current complex regulatory landscape often leads to increased time and costs for projects, making timber a less attractive option for builders and designers. The proposed FWPA Standard introduces a non-mandatory Deemed-to-Satisfy (DTS) solution specifically for exterior timber wall cladding systems. This innovative Standard provides a clear compliance pathway for meeting the condensation and weatherproofing provisions of the Na-tional Construction Code (NCC). “By simplifying compliance requirements, we’re not only reducing costs and project delays but also empowering builders and designers to choose timber as a preferred material.” said Boris Iskra, National Codes and Standards Manager at FWPA. For commercial projects under NCC Volume One, this standard provides the first-ever compliant DTS solution, significantly reducing reliance on costly customised Performance Solutions where external timber cladding is permitted to be used. For residential projects under Volume Two, it accommodates modern cladding systems and updated installation methods, further streamlining the compliance process. This new standard aims to minimise project delays, reduce construction costs, and promote the broader adoption of timber as a sustainable material, enhancing its appeal and opening new market opportunities. FWPA is committed to industry-wide engagement in developing this standard. Consultations are being held with timber cladding manufacturers, suppliers, distributors, and building associations. To achieve NCC recognition, the standard is being developed in alignment with the Australian Building Codes Board’s Protocol for the Development of National Construction Code Referenced Documents. An open public comment period from November 13, 2024, to February 7, 2025, invites industry members to provide feedback and help shape the standard. If referenced in the NCC, the new Standard will deliver several benefits to industry stakeholders: Streamlined Compliance: Architects, building designers, and builders will gain a straightforward pathway to meet NCC requirements, reducing the complexities of compliance navigation. Cost Savings: Detailed design and installation guidelines will aid building surveyors and certifiers in minimising the need for costly Performance Solutions, especially beneficial for commercial projects and minor residential variations. Faster Approvals: The simplified compliance process aims to decrease project delays, allowing projects to progress more swiftly and meet client deadlines effectively. Flexibility and Choice: The new Standard provides an additional compliance option while allowing professionals to utilise existing pathways, enhancing timber’s adaptability in a competitive market. For more information on the FWPA Standard and how you can provide feedback on the draft standard, please visit: www.fwpa.com.au/standards-activities/draft-standard-design-installation-of-exterior-timber-wall-cladding/

A scheme to help alleviate the burden of sea freight for Tasmanian businesses should have a ground-up review and be indexed, according to the Tasmanian Forest Products Association. Source: Timberbiz Meeting in Hobart, the Seante Select Committee on the Tasmanian Freight Equalisation Scheme (TFES) was told the scheme is out-of-date, in need of administrative changes and should be indexed to ensure it remains fit for purpose. The TFES assists Tasmanian businesses to be more competitive when exporting goods to the mainland, by offsetting the costs of shipping across Bass Strait. Speaking to the inquiry, TFPA Chief Executive Officer, Nick Steel, said the scheme was essential to keep all exporting Tasmanian businesses competitive. “A recent survey of our members found that the majority of them use the scheme in one way or another, whether that’s for processed timber, trusses, veneer, engineered wood products or sustainably harvested logs. “With over $320 million in exports to the mainland, and over $55 million in international trade facilitated through the system it’s essential for our industry,” Mr Steel said. “These figures are only for the sustainable forest industry. The scheme is essential for all businesses that ship across Bass Strait.” Mr Steel said there are several issues with the TFES as it currently operates. “Our members have told us the system is old, out-of-date, and relies on manual bookkeeping methods. They say its lack of indexation actually means businesses are worse off now than before the scheme was introduced. “And they say the scheme hasn’t kept up with increasing shipping costs, which are now much more per kilometre, per kilogram than road or rail freight further disadvantaging Tasmanian businesses against their mainland counterparts.” Mr Steel said it’s important to note that the scheme’s objective was always to “alleviate”, but not fully “equalise” the freight cost disadvantage incurred by Tasmanian businesses who move freight between Tasmania and the mainland by sea. “Shipping goods to and from Tasmania has a unique set of challenges, both logistically and eco-nomically,” Mr Steel said. “The need to transfer goods from road or rail to ship and then back to road or rail is an impediment to trade no other state is faced with. This disadvantage was one of the reasons for TFES was originally introduced. “Despite extensive shipping cost rises over recent years, the scheme has not been indexed against the rise in shipping costs, which has resulted in a perverse outcome where mainland businesses trade is at a distinct advantage over TFES supported Tasmanian businesses – exact-ly the purpose of the scheme’s original introduction.” As well as hearing from the TFPA, the committee heard from a range of industry bodies, including Fruit Growers Tasmania, Wine Tasmania, the Tasmanian Chamber of Commerce and Industry (TCCI) and TFPA member Norske Skog Boyer.

The Australian Forest Products Association (AFPA) is urging the Federal Government to withdraw support for the NSW Government’s proposed Improved Native Forest Management in Multiple-use Public Forests (INFM) method. Chief Executive of the AFPA Diana Hallam said the proposed method clearly fails to meet integrity standards. Source: Timberbiz “There are serious questions over the validity and integrity of the INFM method proposed by the NSW Department of Climate Change, Energy, the Environment and Water (NSW DCCEEW). The ACCU Scheme should not be hijacked to fund government projects at the cost of realising genuine carbon abatement,” Ms Hallam said. “We are calling on the Federal Minister for Climate Change and Energy, Chris Bowen to ask the Emissions Reduction Assurance Committee (ERAC) to review how the INFM method satisfies integrity standards, including additionality, scale of abatement and adverse environmental and economic impacts.” Ms Hallam said the proposed INFM method has expanded to include Tasmania and Queensland. “The proposed INFM method requires a national cessation of native forestry operations and is not compatible with government commitments to support our sustainable native forestry industry,” she said. “If a carbon method incentivising the cessation of native forestry operations is rejected by states practicing sustainable native forestry, as expected, it risks undermining the integrity of the carbon abatement scheme as a whole.” AFPA was extremely surprised to see the INFM method recommended for further development at the expense of Forestry Australia’s Enhancing Native Forest Resilience method, which was developed by forest scientists, focuses on improved forest health through active forest management and was assessed by the ERAC as having ‘excellent alignment with Offsets Integrity Standards’. In contrast, the INFM method, developed by consultants, was only assessed with ‘potential’ to meet the same standards. There is an increasing body of evidence that shows forests managed for production provide the greatest ongoing greenhouse gas benefits. In other words, the carbon benefits accruing from forests that are harvested and managed are greater than forests that are conserved or locked up because growing trees sequester carbon at a greater rate than mature ones, and harvested timber continues to store carbon long after it has been removed from the forest. “Carbon methods with strong integrity are needed to ensure active forest management reaches its climate change fighting potential for Australia and the world,” Ms Hallam said. “I urge the Federal Government to scrutinise ERAC’s decision-making processes and reverse its decision to develop the INFM method. Australia’s abatement ambitions can be realised if we understand and accept the science that managed native forests support the climate, communities and the economy. “The Intergovernmental Panel on Climate Change (IPCC) has acknowledged this science. That ERAC has not, suggests Australia’s abatement ambitions are being sacrificed in the pursuit of ideology or politics,” Diana Hallam concluded.  

Five new Hall of Fame Inductees, three Industry Champions and two Icons of forest contracting were celebrated at the Australian Forest Contracting Association Gala Dinner and Industry Excellence Awards on 14 November. Source: Timberbiz One hundred and twenty people gathered at the event in Launceston, Tasmania to recognise the achievements and contributions of the people and businesses who epitomise what this great industry is all about. Australian Forest Contractors Association General Manager Tim Lester said the overriding message from the evening was the importance of community and collaboration. “Contracting businesses are the lifeblood of the forest products sector” Tim Lester said. “They are very often multigenerational family enterprises, with dedicated staff, the highest levels of performance and a real commitment to maintaining healthy environments and communities. “Through our Industry Excellence Awards we are acknowledging and recognising this dedication and service which can be easily overlooked. “We are also proud to recognise the outstanding contribution and resilience of this year’s Hall of Fame Inductees who have been involved in industry for 25 years and elevated two of our Hall of Fame members to Icon status. “We awarded five Service to Industry Award for individuals and organisations who have made a significant contribution in support of forest contracting businesses. “And with a special new category we acknowledge the work of three Industry Champions, individuals who have gone above and beyond in support of our businesses and industry. “Our congratulations to all the nominees and award winners,” Mr Lester said. Winners and Finalists Next Generation Achiever, awarded to a talented and successful emerging industry leader. Sponsored by the Forest Research Institute, University of the Sunshine Coast. Winner: Jacob Hughes, JCH Harvest, (Tas) Finalists: Meeghan Price, TP Bennett and Sons, (Tas), Samuel Blackberry, Sunchip Group (Qld) Mr Hughes commenced in the industry as an operator and has become a significant contractor in Tasmania. He has been a leader in the innovation of winch assist in steep logging. Female Leader Award, for outstanding achievement and contribution to the industry, sponsored by John Deere Winner: Kirsty Parker, M&M Timbers, NSW Finalists: Jennifer Ferguson, Austimber Harvest & Haulage, Vic, Jillian Aylett-Brown, Tasmania Ms Parker is a great advocate for the hardwood timber industry, always creating opportunities to promote the industry and taking the fight to keep it going to both local and federal politicians. Excellence in Safety, awarded for outstanding achievement and contribution to the development and delivery of safe practices, Sponsored by Forico. Winner: Sunchip Group, Queensland
Finalists: South West Haulage, WA, JCH Harvest, Tasmania. Sunchip Group has proudly been involved in the forestry industry for over 25 years. Passionate about the safety of its people and our industry, Sunchip Group has taken the lead when it comes to industry training and safety within the SE Qld region. Excellence in Operations, awarded for outstanding achievement and excellence in operational and organisational performance. Sponsored by Waratah Winner: Francis Richardson, Orana Enterprises, Tasmania. Finalists: William MacPhail, Sunchip Group (Qld), Jana Costello, Sunchip Group, Qld) Mr Richardson is an industry leader in truck tracking, scheduling, reporting, safety, and electronics logbook utilization. Hall of Fame – Sponsored by ForestFit Andrew Westaway, MWM Logging. During the past 20 years Mr Westaway has worked in various Victorian locations in native forestry, salvage operations, bushfire responses, windblown pine, dangerous tree work, and fire salvage. Mr Westaway’s was the first crew to utilise the K tree system which was used in salvage operations for hazardous trees, adopting the process for green forests. Denis Greensill, Greensill Bros. Mr Greensill has been in the timber industry servicing both native hardwood and softwood operations for decades. He is a large employer in the region, and his nominator described him as an
all-round legend of the industry. Angela McGuigan, Sunchip Group. Ms McGuigan has been integral part of Sunchip Group’s success for more than two decades. She is a quite achiever in the background, acting as a support within the business and industry. Gerard Bennett, TP Bennett & Sons. Mr Bennett has dedicated over 30 years to the forest industry, playing a pivotal role in supporting contracting businesses and ensuring the ongoing success of the sector. He has been a mentor and trainer to many young professionals, fostering the next generation of forestry experts. Tammy Price, TP Bennett & Sons. Ms Price is a powerhouse of southern Tasmania, and has actively championed the cause of forest contractors for many years. With passion and commitment, she has advocated for better outcomes for contracting businesses as part of a thriving industry sector. Service to Industry – Sponsored by Forestworks Graeme and Sylvia Elphinstone, Elphinstone Engineering Long-time supporters of the industry in Tasmania in nationally. Over the past year they have committed enormous personal time, effort and funding to bridge the gap of understanding by working with the team at MONA through the Forest Economics Congress. Ken White, Whites ATS For the enormous amount of work to review, analyse and support the negotiation of the forest and fire services agreements in Victoria, supporting the harvesting contractors reaching a good outcome. Midway Limited For continuing support of ForestFit since 2019. The commitment and dedication of multiple staff members has had a significantly positive impact on what is being achieved through the project for the benefit of industry. Peter Rutherford, South East Timber Association (SETA) Mr Rutherford works as a volunteer to advocate for the timber industry in the South Eastern part of NSW. As Secretary of the SETA group he goes over and above in supporting timber industry employees and businesses. Dallas Frost, Frost Batten Accountants. An industry expert in assisting contractors together advocating for industry with a number of state government bodies. He has developed costing models for industry bodies and government organizations and presented at a number of seminars for contractors over the last 20 years. Industry Champions – Sponsored by JASANZ Simon Shackleton, John Deere Mr Shackleton has been the General Manager Sales & Marketing John Deere Forestry (Asia-Pacific & Africa) since early 2000’s and prior to this was in a […]

A research group has succeeded in creating a map of above-ground forest carbon stocks (biomass) across Japan at a high resolution of 10m x 10m per pixel. Source: Timberbiz The group consisted of Professor Tomomichi Kato of the Graduate School of Agriculture, Hokkaido University, and Mr Hantao Li (currently doctoral student at the Graduate School of Agriculture and Life Sciences, The University of Tokyo), the Graduate School of Agriculture and Life Science the University of Tokyo, the Japan Aerospace Exploration Agency (JAXA), and George Mason University in the United States. In this study, data from satellites such as PALSAR-2 (mounted on JAXA’s Daichi-2) and Sentinel-2 (European Space Agency) were used as input, and above-ground forest biomass measurement data from airborne laser surveying1 was trained into a machine learning model2, making it possible to create a map with a resolution rarely seen anywhere in the world. The total amount of above-ground forest carbon stocks across the country based on this study was 1440±565 T (Tera = 10 to the power of 12) g Carbon (1.44±565 million tons of carbon). This is smaller than the estimates from conventional nationwide ground surveys. The forest above-ground carbon stock map created this time will be made public on the JAXA website along with forest above-ground biomass, timber volume, and tree height allowing anyone to estimate above-ground forest carbon stocks in any region. This is expected to make it much easier to estimate carbon credits in forests owned by small municipalities, companies, and individuals, where measurement has previously been difficult due to human and financial constraints. The results of this research were published online in the natural sciences journal Remote Sensing of Environment. In Japan, forest carbon stocks have been estimated nationwide from statistical data such as forest registers (lists of tree species and forest ages), but these estimates do not match the current situation because they are not actual measurements.  

The Food and Agriculture Organization of the United Nations (FAO) has launched an updated guide to implementation of phytosanitary standards in forestry, including good practices for forest health protection to help reduce the human-facilitated spread of forest pests and their impacts. Source: Timberbiz The FAO publication uses plain language to describe a wide range of phytosanitary concepts and recommended practices to national and regional governments and industry stakeholders in the forest sector, including International Standards for Phytosanitary Measures. Originally published in 2011, this second edition of the guide includes an overview of new and revised standards and updated phytosanitary information and guidance that is relevant to the forest sector. International Standards for Phytosanitary Measures provide guidance to countries and governments in meeting their obligations to the International Plant Protection Convention (IPPC), an intergovernmental treaty relating to plant health, and are designed to harmonize phytosanitary measures for the purpose of facilitating international trade whilst preventing pest introduction and spread. They are crucial for safeguarding forests against the introduction and spread of harmful pests and diseases. “This updated guide will provide forest policymakers, planners, managers and workers with the knowledge and guidance they need to reduce the risk of pest spread in international trade and help protect forests and the livelihoods of forest-dependent people,” said Zhimin Wu, Director of FAO’s Forestry Division. A combination of climate change and expanding global trade and travel has enabled the rapid introduction and spread of pests, putting forests at greater risk than ever. For example, pine wood nematode has caused significant damage to native pine forests in China, Japan and the Republic of Korea, with the Korea Forest Service reporting the loss of 12 million pine trees due to the nematode between 1988 and 2022. Similarly catastrophic is the Asian long-horned beetle (Anoplophora glabripennis) one of the world’s top 100 most invasive alien species. It is predicted that, without phytosanitary measures, the Asian long-horned beetle and the citrus long-horned beetle (Anoplophora chinensis) could cause damage totalling about EUR 85 billion and a loss of 30% of the hardwood forest area in the European Union The Commission on Phytosanitary Measures, the governing body of the IPPC, has adopted 13 new International Standards for Phytosanitary Measures relevant to forests and the forest sector since the first edition of the guide, all of which are included in this second edition to ensure the guide’s continued relevance and effectiveness. In addition to presenting good practices for forest health protection, the guide also includes examples of forest pest introductions and their impacts around the world to better illustrate the threat they pose as well as setting out steps towards a healthier future for our forests.  

The statement “Forest machines are destroying the world,” made by a young child, sparked the creation of the Climate Heroes project. Stephen Bellas, MD at Komatsu Forest UK, took this comment to heart. Recognizing the need to change the perception of forestry among children, he aimed to inspire and recruit the next generation. Source: Timberbiz The talent shortage in the forestry industry is a significant issue that requires a long-term solution. A survey conducted in local schools revealed that many teachers were unfamiliar with Komatsu Forest and the forestry industry. This gap in knowledge needed to be addressed. Komatsu Forest UK, based in Carlisle, partnered with the Community Sports Trust (CST) of Carlisle United Football Club to launch the Komatsu Climate Heroes project in 2023. The CST focuses on community support, working with schools, promoting diversity and inclusion, and supporting the elderly. Since January 2024, CST has delivered 20 different classes, each consisting of six sessions on climate change and the environment. The program has already involved 370 children, teaching them the basics of climate change, biodiversity, and local and global environmental actions. After five weeks of classes, the children visit the Komatsu Forest site to learn about the forestry cycle and harvesting. For many, it is eye-opening to discover that a tree planted today will be harvested when they are old and retired. The project will continue in 2025, with plans to involve 600 more children, bringing the total to nearly 1,000 participants over two years. Mr Bellas and his team are deeply committed to the project and find it incredibly rewarding to support the next generation. The project truly captures the essence of Komatsu’s values and has not gone unnoticed, with the Komatsu = By educating and inspiring young minds, Komatsu Forest UK is not only addressing the talent shortage in the forestry industry but also contributing to a more sustainable world.

The renewable power of consumer goods made from sustainable Australian forest products should be celebrated for their key role in our recycling ecosystem this week’s National Recycling Week, according to Australian Forest Products Association CEO Diana Hallam. Source: Timberbiz National Recycling Week from 11-17 November is a prominent Planet Ark campaign celebrated annually during the second week of November and aims to educate Australians about the importance of recycling and recycling correctly. “The good news is that many of the products Australia’s forest industries create are recyclable. Everything from paper and cardboard packaging to tissue products, coffee cups and the repurposing of softwood and hardwood timbers – the forest products sector’s contribution to recycling is enormous. Our products also store carbon which helps fight climate change,” Ms Hallam said. “Consumer demands around the enhanced need for recycling is also driving innovation in our industry, for example with evolution of compostable wood fibre coffee cups – reducing the need for such products to go to landfill. “The effort of our local pulp and paper industries is huge in this area. They recycle more than 1.8 million tonnes of recovered paper and cardboard annually, using it to make new office paper, boxes, gift cards, tissue, paper towel and more. “Paper products can be recycled many times over and when paper has reached the end of its useful life it can be composted, and its nutrients returned to the soil. In terms of recycling and reuse, we are the model industry for a circular economy. “Our products also play the additional role providing an alternative to non-renewable and other carbon intensive products – from single use plastics right through to building and construction products. “Finally, timber and fibre processing facilities also recycle and reuse their residue products like sawdust, which is used to create renewable heat and power, reducing reliance on external energy sources. “The forest products sector contributes a great deal to the national recycling ecosystem in a variety of ways. This National Recycling Week we celebrate that contribution as the nation and the world become more conscious about recycling importance,” Ms Hallam said.

New Zealand’s Tertiary Education Union is slamming cuts currently proposed that if confirmed, would see up to 20 jobs lost and the end of highly valued courses that industry leaders say they can’t do without. Source: Timberbiz Courses at risk across campuses in Taupō, Tokoroa, Rotorua, Tauranga and Whakatane include Apiculture; Forestry; Forest Management; Timber Machining and Pest Operations among many others. If the proposal goes ahead, it may result in the closure of the Waipa campus – a dedicated training facility that currently operates a working wood manufacturing plant. “Our Waipa campus is the only facility of its kind in the Southern Hemisphere, and once it’s gone it will never come back. If it closes there will be no timber machining or saw doctoring block courses left in Aotearoa,” Kerry Parker, a Senior Academic Staff Member in Forestry and Wood Manufacturing said. “Industry leaders are distraught. They strongly prefer the on-campus delivery we provide over on-the-job training. They describe Toi Ohomai graduates as tradespeople whereas those trained on-site are more operators. And they are angry there has been no consultation or communication with them. “I train students who have come from Invercargill right up to Kaitaia. About 40 of them are currently part way through their qualifications, some with three years to go to complete their trade, and they are really upset about the possibility of being left out to dry.” Additional proposals have the rumour mill spinning that Taupō campus, in the heart of the North Island, is also at risk of closure. TEU’s Assistant National Secretary – Industrial, Daniel Benson-Guiu says that educational provision across Aotearoa is at risk and campuses outside the big cities, like the Taupō campus, is a case in point. “We need institutional leaders to come clean about their plans – and importantly they should be consulting early with Iwi, industry, local councils and affected communities. These campuses, and the training that comes out of them, are the lifeblood of regional New Zealand,” he said. “These proposals also come at a time when there is no clarity from the Minister of Tertiary Education and Skills about what the future holds for Te Pūkenga. So, decisions like this being made now will be inherited by future institutions and will result in a weaker vocational education and training system.” TEU has received 18 letters of support from forestry industry leaders strongly advocating for the retention of the current course offerings at Waipa.

New Forests has acquired almost 91,000 acres of forest in Oklahoma, in the US South from Rayonier, Rayonier also sold 109,000 acres on the Olympic Peninsula in northwest Washington. Source: Timberbiz This means that New Forests has expanded its portfolio in the US. The company already has forestry assets in California and has made investments in the Klamath River watershed. The Trinity Headwaters Forest is an almost 11,000-acre property situated in northern California, and forms part of New Forests’ 265,000-acre Klamath Forest estate portfolio. Its McCloud Forest is a 19,000-acre forest in the Mount Shasta region of California, made up of mixed conifers including true fir, Douglas fir, and Ponderosa pine In the past New Forests acquired several forest properties in the Klamath River watershed, including the Hilt-Siskiyou Forest and the Trinity Headwaters Forest New Forests said in a statement its new forest assets have a “wealth of biodiversity that includes recovering indicator species such as the American black bear.” The new assets are located near other related industries such as sawmills and pulp and paper mills. “This investment is well aligned with our underlying investment thesis that sustainable forest management in North America has the potential to deliver attractive investor returns,” Jeff Briggs, MD of North America at New Forests said. “We believe a forest management strategy that sequesters additional carbon compared to past management practices while producing a sustainable supply of wood fibre, has the potential to be successful across the US, and in particular the US South, a geography that presents substantial opportunity for New Forests and our investors.”

Turning native hardwood timber forests used for selective harvesting into carbon storage credits has been slammed by a leading native hardwood timber expert as a “dangerous” attempt to close a viable industry. Source: Timberbiz REEF Research Forestry Awareness Program chair Mr Noel Atkins regards this latest proposition as a ludicrous attack on the highly regulated Australian native hardwood timber sector, essential to sourcing hardwood timber for the country’s growing housing, construction, mining, railways and infrastructure needs. “Native hardwood timber is the only renewable sustainable resource that already captures and stores carbon,” Mr Noel Atkins said. “Taking a lock up and leave approach to forests is extremely dangerous.” “Unmanaged forests cause catastrophic bush fires, causing death to people and animals and destroys property. Setting aside the forests for carbon credits under a yet to be proven method of measurement sounds good, but it is a hair brained idea set to raise a paltry $100 million per annum. “The native hardwood industry in NSW currently generates more than $2.9 billion each year and provides 8900 full time jobs (Ernst and Young Report 2023) and up to 22,000 indirect jobs in the NSW regions. “Australia already imports $5 billion worth of hardwood timber, often from developing countries that don’t have the strict regulatory framework to protect fauna such as koalas and sugar gliders as we do here. “This short-sighted carbon credit proposal would see the decimation of the native hardwood industry in NSW and the rise of imported hardwood timber to nearly $8 billion each year, smashing an Australian regional industry, putting fauna at extreme risk and throwing productive Australians on the scrap heap.” REEF Research argues the vast quantity of timber in National parks could be used for carbon credits. “Closing native hardwood timber forests for selective harvesting would be short sighted when it is sustainable, promotes healthy ecosystems and is the ultimate renewable,” Mr Noel Atkins said. “The fact is, koalas prefer to live in managed forests due to the succulent leaves of new trees, and CSIRO data shows their population is on the rise in NSW!” The native hardwood timber industry only has access to 12% of the total public forest estate with 88% controlled in National parks and reserves. The 12% comprises approximately two million hectares of which around half is not available to harvesting due to inaccessible terrain, zoning restrictions and regulations to protect riparian zones, waterways, seed trees, old growth trees, habitat trees flora and fauna. Less than 1% of the public forest estate is harvested each year, supervised by the NSW Environmental Protection Agency (EPA) complying with the Integrated Forest Operations Agreement (IFOA). REEF Research is committed to the native hardwood forest sector and improving its environmental footprint, protecting jobs in the region and delivering economic benefits. REEF represents and supports native hardwood timber businesses   and communities operating in the NSW regions.

New recruits have joined OneFortyOne’s Summer Fire Crew and have undertaken their practical skills training this week. Source: Timberbiz Over the past three days, the 10 new recruits were trained in practical skills that covered four-person canvas hose lay, operation of fire tankers, managing grass fires, and using radios effectively. Source: The Border Watch The crew included employees of OneFortyOne, and those contracted through Gildera Forestry Services and A&M Contracting. More than 100 people make up OneFortyOne’s fire organisation including firefighters, supervisors and a logistical support team. The new recruits were supported by OneFortyOne fire crew members Phil van der Hoek, Dane Handreck and Chloe Mackenzie. OneFortyOne fire manager Justin Cook said the OneFortyOne crew attends a range of fires and support other brigades. “OneFortyOne attends more grass fires than we do plantation fires, we will attend fires that are close to our plantation and assist the CFS to put out the fire in a paddock, before it reaches the plantation,” he said. “So that’s important to the training.” Mr Cook said fire risk is calculated daily, and crews respond accordingly. “Every day during the fire season OneFortyOne declares fire reaction, based on the fire risk for the day. “And depending on the fire reaction, we can have four, seven or eight fire tankers on standby.” Fires can be reported by OneFortyOne’s fire tower networks, a notification from the CFS or a phone call from a member of the public. The regional duty officer is then responsible for dispatching resources to a fire. “We don’t go to every fire in the landscape, but we do to those that are within our plantation, other forest growers land, or that buffer around our and other forest growers’ plantations,” Mr Cook said. There are six fire depots located through the OneFortyOne estate: Mount Gambier, Mount Burr, Penola, Glencoe, Noolook, and Comaum. OneFortyOne’s plantation also extends throughout western Victoria from Edenhope to Dartmoor. “We spread out resources across the area so that the travel time to any fire occurring on our estate is minimised,” Mr Cook said. “Getting to a fire and putting it out whilst it’s small is always the best option.”

After a remarkable 65 years of dedication to Australia’s forest industries, Peter Crowe OAM, is retiring from his last official position as Chair of the Softwoods Working Group (SWG). Source: Timberbiz “Peter’s unwavering commitment and invaluable contributions have been instrumental in shaping the future of the softwoods industry in Australia,” SWG Executive Officer Carlie Porteous said. “Peter’s journey with the SWG began in 1987, and over the decades, he has played a pivotal role in advancing sustainable forestry practices, fostering industry collaboration, and advocating for innovation. “His knowledge, leadership, and vision have left an indelible mark on the industry, earning him the respect and admiration of colleagues and stakeholders. “Peter has been a driving force behind numerous initiatives that have strengthened the softwoods sector. His efforts have enhanced the industry’s economic viability and helped ensure its environmental sustainability for future generations, including the commitment to good fire management practices, weed management and tree breeding. “He started work in the forest industries in 1959 when he joined the NSW Forestry Commission, where he worked in various positions until 2006. Since then, he has worked as an industry consultant and advocate, championing many advancements in the timber industry including plant breeding initiatives, which have improved the quality of timber grown in plantations.” Mr Crowe said he could enter so many older plantations and remember when the first trees were planted and in numerous cases, he helped plant them. “I am extremely proud of working in such a vibrant renewable industry alongside so many fantastic, committed individuals who have recognised the importance of forestry and its contribution to the development of regional Australia,” he said. Ms Porteous said as the industry celebrates Mr Crowe’s retirement, it is a time to reflect on his remarkable achievements and the legacy he leaves behind. “His passion for forestry, dedication to excellence, and unwavering commitment to the industry’s growth will continue to inspire us all,” she said. “The SWG extends its heartfelt gratitude to Peter for his exceptional service and wishes him all the best in his well-deserved retirement. “We look forward to continuing the work he has championed and building on the strong foundation he has established.”  

Interesting times. Trump’s in, and resoundingly with the senate, electoral college and populist votes. It looks like Elon is going to take the knife to as many government jobs as he can, tariffs will skyrocket, and democrats are top of the list in googling ‘how to move to New Zealand’. Those that understand the US economy and politics and, don’t pay much attention to media, will understand that there needed to be some major structural economic and social change if the US is to remain as a viable superpower, and this may be what is needed – only time will tell. What does this mean for our forest industry? China is our largest purchaser of logs, and it has been pretty well documented that the main sector our logs have previously been used in – construction – is about as popular as Rieko Ioane at the Sexton dinner table. Exports of logs to China in 2023 totalled 18 million cubic metres and 2024 is looking to be slightly under that. Luckily, China has a massive wood-based furniture industry accounting for around 39% of total global furniture production, making it the largest in the world. In addition, exports of wood furniture from China have risen 24% in the first seven months of 2024 – great news, then along came the Don. The US accounts for around 27% of the furniture exports out of China which totalled $20 billion in 2023. The current tariff for Chinese furniture into the US is 5.4%. A report commissioned by the US National Retail Federation explored the impacts of proposed tariff increases on demand in the US. Trump hasn’t set any definitive tariff as yet, but the expected range for furniture is between 32.8% and 54.3% which the report predicted to result in a reduction in demand for Chinese manufactured product of between 73% and 87% respectively. If we assume the mid-point of 80% is likely, this will result in a total demand reduction of around 350 million pieces of furniture, a $16 billion drop in revenue and an overall 20% drop in total Chinese furniture exports, which is all a bit untidy. NZ radiata is a favoured product for the Chinese furniture industry due to its versatility and availability and as such, a reasonable volume of our log exports is utilised in this sector, therefore any reduction in demand for Chinese furniture products is going to directly impact us. What does the quantum of this impact look like? We won’t know until the tariffs have been set, but it’s very likely we will feel the impact in the medium term in the way of reduced supply volumes from NZ. Irrespective of the above bit of naval gazing, the current market conditions are the best we have seen since March with A grade shorts priced at NZ$126/m3 in the mid third of the country. Northern ports are a few dollars up on this and southern ports between NZ$10 and NZ$20/m3 less depending on which port you supply. This increase has been a result of slightly higher CFR prices in China and a 3-cent reduction in the US:NZ exchange rate. Unfortunately, shipping didn’t play the game in late October with a sharp cost increase which negated some of the gains however, this has recently softened somewhat. Inventory has dropped to around 2.7 million m3 and off-take remains around 65,000 m3 per day. These are all good numbers and, provided we continue to see declining inventory, the next few months look reasonably solid. It would be however, dangerous to read this as a strengthening market as sentiment is still relatively subdued in China. The recent Chinese government stimulus package didn’t really hit the mark, and this was followed by a further US$1.4 trillion debt package last week targeted at easing local government financial strains by rebalancing their balance sheets. Local government debt has been rising steadily and now total government related debt sits at around 117% of GDP, which has been making for some uncomfortable discussions around the CCP board table. Since 2008, local governments have enjoyed the significant revenue from construction projects, but recently this has dried up faster than Golriz’s court appeal and left local governments in a pickle. It will take a significant shift in the sentiment of the Chinese populus to reignite the construction sector in the near term, but we have seen stranger things. Back home, things are looking better domestically with September building consents up 2.6%. So long as Adrian Orr plays ball and keeps dropping the OCR in a sensible manner, we will likely see some further buoyancy in 2025. The domestic market is the backbone of our industry, so we need to see strong numbers returning to keep forest owner returns at an acceptable level. All eyes will be on the NZU auction on the 4th of December, and we will need to see an NZU price of over NZ$64 to see at least a partial clearance. There has been some discussion around the Climate Change Commissions’ view of the size of the NZU stockpile in ETS accounts. What needs to be remembered is that a reasonable number of those NZU’s will likely not be available for sale due to harvest surrender requirements and NZU pricing not meeting owners price points. In summary, what happens to log demand and therefore pricing in the next 12 months will have some influence from Trump et al., and it probably doesn’t look too positive for NZ exports as a whole. With some luck, shipping rates will ease, the $USD will strengthen under the republican rule and if we can keep a lid on inventory, log prices should look reasonable until late January when the Chinese New Year shutdown rears its head again. Fingers crossed the Europeans get a hankering for Chinese made furniture, and lots of it. Marcus Musson, Forest360 Director