Australian timber industry news

The Swedish Forest Industries Federation (SFIF) has joined the IUFRO World Congress as major partner, marking a strategic collaboration to enhance forest research and foster global knowledge exchange. Source: Timberbiz “We are excited to join the worlds’ largest forest event of 2024, and the largest in Sweden ever. Our mission aligns perfectly with the Congress’s goals of promoting collaboration, knowledge sharing, and sustainable forestry practices,” says Viveka Beckeman, director general of the Swedish Forest Industries Federation. The SFIF will host a stand at the Congress Exhibition featuring member companies Holmen, SCA, Stora Enso, and Södra. These industry leaders and pioneers will showcase their latest advancements in sustainable forestry and forest management and engage with attendees on key issues facing the sector. Södra, a cooperative of forest owners, focuses on value creation and sustainable forestry practices. Stora Enso, a global leader in renewable solutions, emphasizes innovative materials and bio-based products. Holmen, known for its sustainable forest management and renewable energy initiatives. SCA, Europe’s largest private forest owner, renowned for its commitment to sustainability and resource efficiency, will present their unique contributions to the industry. The partnership between IUFRO World Congress and SFIF highlights the importance of collaboration in the forest sector, particularly in promoting sustainability and innovation. The pavilion will serve as a hub for networking, discussions, and the exchange of ideas among industry professionals, researchers, and policymakers. “We believe in the power of collaboration and knowledge exchange to drive sustainable forestry forward. The Congress provides an excellent platform to showcase the innovative work of our leading forest companies and to engage with the global forestry community,” says Ms Beckeman. At the Congress, SFIF´s aims to be a meeting point for networking and dialogue, sharing of research and innovation results, and to showcase the Swedish forest and its products – all the way from growing trees to circular products. Attendees will have the chance to learn about cutting-edge research, technological advancements, and best practices in sustainable forest management. The IUFRO World Congress 2024 has garnered significant support from various partners, including IKEA, WWF, and Formas, one of Sweden’s largest research councils. Additionally, strong governmental support from the Nordic and Baltic countries, as well as other stakeholders like major universities, underscores the broad collaboration and shared commitment to showcasing and discussing forest research for sustainable development.    

With a little helping hand, Forestry England is letting nature transform more than 8,000 hectares of land in four of the nation’s forests. Taking a new approach to managing forest landscapes, the organisation is creating four wild areas where nature recovery will be at the forefront while still producing sustainable timber and welcoming visitors. Source: Timberbiz Forestry England is the country’s largest land manager with over a quarter of a million hectares in their care and a long history of successful wildlife conservation. This puts them in a great position to work across large landscapes to restore nature. This new work, letting nature take the lead, will over decades make them the most valuable places for wildlife across England. And longer-term, biodiversity benefits will spread out across other forests and the wider countryside. Kielder Forest in Northumberland will have the biggest new wild area, covering at least 6,000 hectares. Here, Forestry England will restore a fully functioning upland ecosystem by expanding native woodland and scrub and creating more open habitats including restoring peatland and natural water courses. Through pioneering integrated land management, Forestry England will create an innovative model of modern productive forestry. This will balance nature-first approaches alongside sustainable wood production, ensuring a truly resilient forest for a changing environment for generations to come. Other wild areas are Newtondale in North Yorkshire, Purbeck in Dorset, and Neroche in Somerset. Each unique landscape will have its own mix of activities all designed to restore natural processes and increase the diversity and abundance of wildlife. Helping nature recover may include reintroducing lost wildlife including butterflies, rare plants, pine martens and beavers, rewiggling rivers, introducing wilder cattle or even moving fungi to restore soil. Visitors to the wild areas will have a wilder, more immersive nature experience in a landscape where space is given for wildlife to move and thrive. “There is an exciting unpredictability about this work in our four wild areas. We simply don’t know exactly how each of them will change over time or the detail of what they will look like. But this uncertainty is a positive part of being experimental and allowing natural processes to shape each landscape in the years ahead. We are confident that whatever happens these areas will become more nature-rich, with benefits for neighbouring landscapes,” Andrew Stringer, Forestry England Head of Environment, said. “We’re not choosing to return one or two lost species. This is about allowing all parts of the jigsaw to fit back together so an entire ecosystem can function well across large areas, from apex predators at the top to microscopic soil organisms beneath our feet. “We will intervene less in these four wild areas, giving nature the time and space to reshape the forest landscape. Forestry will still be an essential activity, creating canopy gaps and varied structure, acting just like the lost megaherbivores of the past. Over time the benefits will be enormous in terms of climate resilience, reversing biodiversity loss, providing greater natural capital benefits to society such as natural flood mitigation, soil health, air quality and carbon storage. It’s an exciting new chapter in our biodiversity work in the nation’s forests.” Forestry England will work alongside many expert partners to create the wild areas. Some will be involved in hands on nature restoration activity, others in scientific data gathering and analysing the progress in each area. The soil eDNA baseline data gathered in all four wild areas will be free to access as part of Forestry England’s commitment to open data sharing, collaboration and building a strong evidence-base for wilding activities. The wild areas work is being supported by Defra’s biodiversity funding, with corporate partner Forest Holidays contributing funding over 5 years toward creating the wild area in Kielder Forest. Forest Holidays are Forestry England’s first major biodiversity corporate partner.

On 14-16 May 2024 the SINTETIC Project annual meeting took place in Brașov (Romania) hosted by two project partners, the Transilvania University of Brașov and ASFOR. SINTETIC – single item identification for forest production, protection, and management – is the second largest project funded by Horizon Europe in the field of forestry. Source: Timberbiz It aims to maximise the benefits of digitalisation in the timber value chain simultaneously improving efficiency, sustainability and transparency (thus avoiding the illegal entry of wood in the value chain). The identification system developed by SINTETIC can start with a physical marking approach using a log hammer or with an RFID tag, allowing for the traceability of each log from forest-site to further-processing companies. The adoption of timber quality sensors allows to integrate the tracking data with added-value information, enhancing the efficiency of the whole value chain. The project will develop a new system that will enable customers buying wood products to track them all the way back to the individual trees in the forest from which they were made. The ambition of SINTETIC is to develop and implement a digital platform that can deliver a comprehensive data management scheme for the whole forest value chain. The core of the proposed system is a ground-breaking solution for the complete traceability of forest products based on the first-ever integration of five state-of-the-art technologies. The systems feasibility will be demonstrated at eight sites found in Finland (2), Romania (2), Sweden, France, Spain, and Italy. Each individual item will be allocated and have attached a unique ID which in turn will be digitally transmitted to a central geodatabase. This will enable each item to be tracked as it moves along the forest value chain. The Information and Communications Technology (ICT) system will also enable measurements of yield and output to be related to any earlier point in the value chain. Historical climate data, silviculture treatments, and forest stand descriptors will also be included. Central to the working of SINTETIC will be the integration of five separate tracking technologies, namely: Radio Frequency Identification which will allow standing trees as well as round wood to be tagged, a punching code impressed directly onto the wood with a hammer, a CT log scanner at the sawmill, optical vision scanners (fingerprinting) and finally after production a bar/QR code that will enable identification through the retail process. The last step is crucial as it will enable operators and customers to trace the wood element in the finished product back to a specific forest and an individual tree.

Dr Murry Cave, Principal Scientist at Gisborne District Council, New Zealand will share his groundbreaking research on the impacts of Cyclone Gabrielle and the role of Large Woody Debris (LWD) in Tairāwhiti. His findings will be presented at the 5th International Wood in World Rivers Conference in Gaspe, Quebec. Source: Timberbiz Dr Cave’s work gained international attention after a presentation at the New Zealand Rivers Conference in late 2023. Professor Ian Rutherford from the University of Melbourne was in the audience and was particularly struck by the significance of LWD during cyclones Hale and Gabrielle including the loss and damage to bridges, community impact, and the tragic death of a young boy on Waikanae Beach after Cyclone Hale. “Professor Rutherford felt this story needed to be told to an international audience and I was invited to present two papers at the conference,” Dr Cave said. The first is on the impact of LWD on Tairāwhiti and the second outlines a novel methodology for determining the relative contribution of various woody types to LWD in NZ. Dr Cave says he developed this methodology after Cyclone Cook in 2017, which left a trail of woody debris from the forests to the sea, particularly in Ūawa and Tolaga Bay Beach. In addition to the conference, Dr Cave plans to visit the British Columbia Ministry of Forestry and the Forest Protection Agency and look at a forest land debris flow predictor tool developed by a major British Columbia geotechnical engineering consultancy on his way to Quebec. “There is a lot we can learn from the British Columbia experience. In particular, the parallels between Canada’s First Nations role in forestry and the role of Whenua Maori in Tairāwhiti.” The 5th International Wood in World Rivers Conference will take place from June 10 to June 14, 2024, in Gaspe, Quebec. Dr Cave hopes his research can contribute significantly to the global understanding of LWD dynamics and its implications for river ecosystems.

Building approvals for new homes remained relatively flat in April, falling by 0.3% from already-depressed levels. Source: Timberbiz The Australian Bureau of Statistics yesterday released its monthly building approvals data for April 2024 for detached houses and multi-units covering all states and territories. “A 1.1% increase in multi-unit approvals was offset by a 1.0% decline in detached housing approvals,” HIA Senior Economist Tom Devitt said. “These depressed approvals volumes don’t foreshadow a rapid recovery from the weakest volume of new home commencements in the 2023/24 financial year, in over a decade. “At the same time, Australia is seeing record population growth and acute shortages of housing that are expected to persist for at least the next few years,” he said. Mr Devitt said that with recent inflation data casting further doubt on the prospect of any reduction in interest rates this year, government policymakers needed to pull the levers within their reach. “The recent re-acceleration of residential lot prices in some markets suggests the industry could re-encounter land constraints, even as materials and labour constraints ease,” he said. “State and federal policymakers need to incentivise local authorities to accelerate the release of shovel-ready land and permit higher density development in existing suburbs near jobs and transport. “Addressing tax, planning, land and regulatory constraints on the housing industry is the only hope of reaching state and national housing targets in coming years and addressing the country’s housing crisis,” concluded Mr Devitt. In seasonally adjusted terms, dwelling approvals in the three months to April increased in Western Australia, up by 39.4% compared to the previous year, and in Victoria (+2.8%). New South Wales was flat (+0.0%) over the period, while other jurisdictions saw declines in approvals, led by Queensland (-16.6%), followed by Tasmania (-12.2%) and South Australia (-11.3%). In original terms, dwelling approvals declined in the Northern Territory (-38.2%) and increased in the Australian Capital Territory (+4.1%).

New Zealand Forest owners say the repeal of legislation surrounding log traders and forest advisors will provide relief and assurance to growers facing increased regulatory cost and complexities. Source: Timberbiz The repeal, announced by Minister of Forestry Hon Todd McClay, will do away with the compulsory registration required of log traders and forestry advisors under the Forests (Regulation of Log Traders and Forest Advisors) Amendment Act (2020), and refund any fees or levies paid this season. New Zealand Forest Owners Association chief executive, Dr Elizabeth Heeg, says assurance schemes are important for maintaining integrity throughout the supply chain, but that the introduction of the registration scheme through the Act was an unnecessary and costly intervention for growers. “The registration scheme was meant to improve information across the forestry and wood processing supply chain, improve professional standards, and build greater confidence in the sector,” Dr Heeg said. “Unfortunately, it has achieved the opposite – delivering added cost rather than added value.” Forest owners and employees required to register ended up paying fees for a system duplicating the work of pre-existing schemes. Those fees were also passed onto small forest owners with smaller revenue streams. “Fees were imposed without a sufficient consultation period with forest owners, and the scheme was overbuilt – landing the sector with a costly registration scheme that didn’t deliver.” Dr Heeg says the issue is not about having an agreed standard, it’s about ensuring regulation does not duplicate or undercut the assurance systems, standards or services that are already available. “Forest owners are very supportive of ensuring a high degree of performance standards across the supply chain and often opt into voluntary schemes to achieve that,” she said. “The New Zealand Institute of Forestry (NZIF) is one such example, maintaining a robust Code of Ethics and strong performance standards that all members who register must follow to ensure they provide the best service. “Forest owners understand that to be a valued part of rural communities, they must uphold those high professional standards. “Minister McClay’s decision will restore forest owners’ confidence and ensure continued sector growth without burgeoning regulatory costs. “We look forward to having further conversations with the Minister on helping forestry achieve its potential domestically and abroad.” The repeal is said to come into effect by July 2024.  

Nationals Member for Cootamundra and Shadow Minister for Crown Lands Steph Cooke has visited the Tumut region to meet forestry industry stakeholders and discuss the progress being made as the region continues to recover from the Black Summer bushfires. Source: Timberbiz Ms Cooke said the Forestry Corporation of NSW manages 92,000 hectares of plantation in the Tumut Tumbarumba area. The region lost approximately one third of the plantation estate in the 2019-2020 fires. “The damage was absolutely devastating so I was very keen to return and get an update on how the recovery is going,” Ms Cooke said. “While there was a level of success in terms of salvaging trees following the fires, the planting program that’s been underway has certainly helped restore the area, with millions of trees planted as part of the recovery process. “This program is nearing completion, but of course these things don’t happen overnight, given that a tree takes close to 30 years to grow to full sawlog production,” she said. Ms Cooke toured High Country logging operations and was briefed on a first-thinning harvesting operation at Bondo State Forest. She said it was heartening to see the vibrancy of the operations, given the industry contributes more than $2 billion to the local economy. “Whether it’s the nurseries, the plantations, or the processors, the forestry industry is vitally important to this region,” Ms Cooke said. “During my visit I saw first-hand the supply chain at work, from the plantations through to the harvesting and haulage operations, and then the processors,” she said. Ms Cooke was also briefed on the use of camera technology to detect future fires. “Early detection and rapid responses are vital in containing fires and preventing widespread damage to forestry assets,” Ms Cooke said. “AI technology is being used to enhance the traditional fire detection process; it has the capability to pick up differences in the landscape, on a minute-to-minute basis, and alert emergency responders. “Harnessing AI camera technology will not only help detect fires on the plantations themselves, but also fires on nearby properties on private land,” she said. Ms Cooke said given its importance to the health and sustainability of the local economy, it is vital the forestry industry remains strong.  

Victoria’s Labor Government is continuing to provide support to local businesses and workers in timber industry communities with applications for Round 3 of the Victorian Timber Innovation Fund (VTIF) open. Source: Timberbiz Minister for Agriculture Ros Spence announced that eligible native timber businesses are able to access up to $1 million in grant funding per business to diversify away from native timber harvesting and create new jobs in their communities. For the first time as part of Round 3, support will include a Grant Application Assistance Service. Businesses can apply for vouchers of up to $7,500 which will provide them with access to a panel of Registered Service Providers. These Providers will help businesses to prepare and submit strong submissions for the grants program. Eligibility for Round 3 has also been extended to harvest and haulage sub-contractors, chip truck drivers and other businesses which were heavily dependent on the native timber industry. Businesses who take up other forestry transition support packages can still access the VTIF. Round 2 of the Timber Innovation Fund will support 29 successful applications from 28 native timber businesses totalling over $7 million. Gippsland Logging and Earth Moving received $330,000 of VTIF funding to transition from native hardwood haulage to plantation haulage and retain their current workers. They have modified their existing heavy equipment, including installing a new crane system to their prime mover. Pyrenees Timber, based in Beaufort, is using its $86,000 of VTIF funding to support the business to modify the existing storage shed, upgrade the loading pad and purchase a purpose-built auger enabling the company to store olive pits that will be used by the Beaufort & Skipton Health Service to fuel their biomass heating system. VTIF supports businesses to transition away from the native timber industry and diversify their business operations to pursue opportunities in other industries that will support jobs and the communities that depended on the native timber industry. This can include businesses switching their operations to plantation timber, construction and earthmoving services to both maintain existing jobs and create new sustainable jobs. “The variety of projects which businesses are putting forward shows their innovative approach to moving away from a sole reliance on the native timber industry and diversifying into new and exciting opportunities,” Minister Spence said. “We are providing crucial support to empower businesses and workers to take advantage of new opportunities within their communities as they transition away from the native timber industry into a new sustainable future.” For more information on the Victorian Timber Innovation Grants Program, call 1800 318 182 or visit www.deeca.vic.gov.au/forestry

The Softwoods Working Group has welcomed the announcement of a $13 million forestry funding package aimed at protecting critical timber supplies in the Murray region ahead of the 2024/25 bushfire season. Source: Timberbiz This funding will support critical fire prevention, detection, and response initiatives in the Murray Region. The package was developed after extensive consultation with forestry industry groups and government agencies. The funding announcement significantly improves the region’s readiness for bushfire season. SWG Chairperson, Peter Crowe commended the Minister on the well-considered funding. “The Softwoods Working Group (SWG) commends the minister for well targeted funding for essential projects which will significantly enhance fire protection for the valuable plantation in the NSW Murray,” he said. The SWG and its members look forward aiding the Minister and the department on the most valuable infrastructure investments for communities, industry and the region broadly.” Ms Porteous, Executive Officer of the SWG commented on the need for future proofing the region. “The 2019/2020 fires are still too fresh for many community members. This funding will allow the industry, communities and critical RFS volunteers to be better prepared and react to future fire events,” she said.

The NSW Government has announced a $13 million forestry funding package to provide much needed protection of critical timber supplies in the Murray region in the lead up to the next bushfire season. Source: Timberbiz This package will build a better resilience into this important regional industry. The measures will deliver fire prevention, detection and response works that have been developed following consultation with forestry industry groups and government agencies. The NSW Government has a plan for developing regional NSW and a plan for delivering more housing. Protecting softwood forests and production is critical to delivering on both of those plans. Minister for Agriculture Tara Moriarty made the funding announcement in the Murraguldrie State Forest, 60km from Wagga Wagga, with Independent Member for Wagga Wagga, Dr Joe McGirr and representatives of the NSW timber industry. Feedback from industry highlighted three key focus areas to ensure the forestry sector is better prepared for the next bushfire season and the package delivers on these as follows: Prevent bushfires occurring or spreading by constructing new and maintaining established strategic fire trails and asset protection zones. Build rapid response capability and suppress fires and prevent their spread such as towers, remote sensing and camera technology to detect fires early. Improve tactical and operational response with additional fire tankers, equipment and infrastructure. This funding announcement puts the region in a much better position to focus on these preparedness measures. During the 2019/2020 Black Summer bushfires, it is estimated up to 65,000 hectares of softwood plantation were affected across NSW representing around a quarter of the softwood resource state-wide. “Sadly, the horrific memories of the Black Summer fires are still fresh in local memories and now is the time to do all we can to reduce the risk of a repeat,” Member for Wagga Wagga Dr Joe McGirr said. “Our softwoods industries are crucial to the future of the entire region, and especially to the Snowy Valleys, so I applaud government and industry measures to prevent bushfires in the first place, and to improve response capabilities when fires do start. “Thousands of jobs and many millions of dollars in economic activity depend on secure, stable softwoods supplies and I congratulate industry groups and the government for this important investment in protecting the industry’s future.” Softwood plantation forestry in southern NSW injects some $3 billion in economic value annually and provides more than 11,000 jobs. “The clearest message we have received from forestry industry representatives in the region is that all effort needs to be put into protecting the forests from bushfires. This package demonstrates how the Government is responding – get the job done and protect our forests and communities,” Minister Moriarty said. “The NSW Government has made it clear we are focused on expanding plantation assets, and we are boosting protection of the existing and future plantation resources. “I want to thank the Forest Industries Advisory Council, the Softwoods Working Group, the Australian Forest Products Association, Forestry Corporation and other NSW agencies and industry representatives for their input and efforts in this important area.”

Kyoto University and Sumitomo Forestry announced Tuesday the completion of LignoSat, the world’s first wooden artificial satellite. Source: The Japan Times LignoSat will launch from the Kennedy Space Centre in Florida to the International Space Station in September, with deployment from the Japanese Experiment Module Kibo slated for approximately one month later. With development beginning in April 2020, LignoSat is crafted from magnolia wood, selected for its strength and workability after space exposure tests were conducted on cherry, birch and magnolia wood chips. The wood was sourced from Sumitomo Forestry’s company forest. The 10-cubic-centimeter probe was assembled using a traditional Japanese technique that doesn’t require any screws or glue and is equipped with external solar panels. Ground tests confirmed that the wood would not adversely affect astronauts’ health and safety, as well as precision equipment and optical components. The LignoSat project aims to combat space clutter and promote more environmentally friendly space activity. Current international rules mandate that satellites reenter the atmosphere after their missions to avoid them becoming space debris. Conventional satellites pose air pollution risks due to metal particles generated during reentry. Wooden satellites, which burn up upon re-entry, are expected to mitigate this effect. “Expanding the potential of wood as a sustainable resource is significant,” said Kyoto University professor and astronaut Takao Doi. “We aim to build human habitats using wood in space, such as on the moon and Mars, in the future.” In the six months post-launch, data on wood expansion and contraction, internal temperature, geomagnetism and electronic equipment performance will be collected. This data, received by Kyoto University’s communications station, will inform the development of a second satellite, LignoSat-2. Sumitomo Forestry will also study the results to understand how wood breaks down at the nano-level, with aims to develop technology to prevent wood from degrading and to create new uses for wood, including highly durable materials for building exteriors.

Since 1850, global temperatures have been steadily rising. Human activities have significantly increased the emissions of greenhouse gases into the atmosphere, exacerbating the greenhouse effect and global warming. Source: PhysOrg Forests in Asia have faced numerous challenges from climate change and human activities, threatening their stability and ecological functions. However, detailed studies on forest disturbances and their responses in this region are limited. Ecologists from Beijing Forestry University and the Institute of Atmospheric Physics, China, conducted a comprehensive analysis of forest disturbances and resilience using satellite remote sensing data in a new study. The associated paper has recently been published in Atmospheric and Oceanic Science Letters. Forest ecosystems absorb about 33% of the carbon dioxide from human-related emissions, which is vital to climate-change mitigation and adaptation. However, frequently occurring climate extremes and human activities have considerably threatened the resilience of forests. The study employed the Breaks For Additive Seasonal and Trend (BFAST) method, an effective tool for detecting abrupt changes in time series data, to analyze the Enhanced Vegetation Index time series across East Asia, South Asia, and Southeast Asia. By identifying disturbances and quantifying forest resilience, the research sheds light on the dynamics of forest ecosystems in response to various external pressures. “Twenty percent of forests in Asia’s low and middle latitudes experienced disturbances between 2000 and 2022, with Southeast Asian countries being particularly affected. Despite these challenges, 95% of the forests showed robust resilience and recovered from disturbances within a few decades. “Notably, forests with greater disturbance magnitude exhibited stronger resilience; they tend to have faster recovery rates compared to forests with lower disturbance magnitude,” says the first author, Yiying Zhu, an ecology researcher at Beijing Forestry University. “This is good news for adapting to future extreme events due to climate change or human activities.” “Almost half of the forest disturbances were caused by commodity-driven deforestation, and the average recovery time for a forest ecosystem to return to its pre-disturbance state was 16.2 years,” said Prof Hesong Wang, a global change ecology researcher at Beijing Forestry University. “The land-use changes resulting from human activities have a profound impact on forest ecosystems, and we need to have a deeper understanding of ecosystem recovery to mitigate the damage to forests.” “Applying satellite remote sensing in monitoring and managing forest ecosystems is essential for us to elucidate the relationship between disturbances and forest recovery,” adds Associate Prof. Anzhi Zhang, an associate professor from the Institute of Atmospheric Physics, China, another co-author of the paper. “Satellite remote sensing provides valuable insights for sustainable forest management practices in the region, and should be employed throughout the globe.” In conclusion, this research underscores the excellent resilience of Asian forests after disturbances, as revealed by satellite remote sensing data. By elucidating the spatial and temporal patterns of forest dynamics, the study contributes to advancing our knowledge of forest ecology and informs conservation strategies for preserving forest ecosystems.

The first Helsinki Forest Talk took place in May, organised together with the German and French embassies in Helsinki. The Helsinki Forest Talks is a new series bringing together diplomats and scientists to focus on crucial issues related to forests. Source: Timberbiz The first event enabled 35 participants from different embassies to explore the issue of combatting climate change through emission reductions, looking at both natural and technical solutions. Speakers included EFI’s Chief Scientist Hans Verkerk who set the scene with how much forests can contribute to fight climate change. He was joined by Helga Pülzl, EFI Assistant Director for Policy Support and Raisa Mäkipää, Research Professor on sustainable management of natural resources at the National Resources Institute Finland to explore technical solutions like carbon capture and storage. EFI’s Director Robert Mavsar said: “It was truly an inspiring event. The aim is to foster a collaborative and informed approach to addressing challenges and opportunities in forest management and conservation. With the Helsinki Forest Talks we aim to enhance interactions between scientists and diplomats, and also create a network within the diplomatic community for those working on forest-related topics.” The next event will take place in September.

New data from the Australian Bureau of Statistics showing a rise in inflation, coupled with a decrease in building and construction industry productivity, should be sounding alarm bells for Australian governments, warns Master Builders Australia. Source: Timberbiz New data released shows an April increase in the annual inflation rate to 3.6% and all three sectors of the building and construction industry reporting a March quarter drop in output. The decline comes as demand for new housing continues to grow, with residential construction dropping 1.2%, civil construction down 2.1%, and non-residential building dropping a concerning 7%. Master Builders Australia’s Chief Economist Shane Garrett said these numbers are worrying, and that governments need to focus on reducing the cost of creating new homes and speeding up their delivery. “Housing costs contributed significantly to April’s poor inflation result,” said Mr Garrett. “Over the past year, rents have risen by 7.5%. “High rental inflation is a direct result of years of underbuilding on the higher density side of the market, caused by a drastic lengthening in the build times for new homes, labour and material shortages as well as excessive homebuyer taxation. “Labour shortages are the biggest constraint on building and construction activity, and we are also facing unfavourable changes on the Industrial Relations front as well as a new wave of regulation. Policies must change to reflect the urgency of this. “The building and construction industry is the canary down the economic coal mine,” said Master Builders’ Chief Executive Denita Wawn. “When the industry is strong, the economy is strong. These figures should be sounding alarm bells for Australian governments of what’s to come. “During 2023, civil construction became one of the main drivers of economic growth in Australia; this is now in reverse jeopardises economic growth. “Residential building activity has slumped to its lowest levels in nearly two years at a time when communities are crying out for new homes. “If we are going to undo decades of under-building and resolve this housing crisis, we need to change the economic environment to encourage investment across all sectors of the industry by reducing the cost of construction work, reducing build times, reducing planning delays and slow approval processes.”  

Timber dominates the internal design of Phillip Island’s prestigious new multi-dimensional cultural centre in Cowes and what better place to source much of the timber than Gippsland. Source: Philip Hopkins, Latrobe Valley Express ‘Berninneit’ – ‘Gathering Together’ in the Boon Wurrung Indigenous language – encompasses a 260-seat performing arts theatre, a cinema, gallery, library, historical museum, events spaces and community meeting rooms, and was opened late last year. Sitting at the heart of it is glue-laminated timber (MASSLAM) – huge beams 5.9 metres long and columns 4.2 metres high, all 42cm wide – from Australian Sustainable Hardwoods (ASH) at Heyfield. “Vic Ash glulam timber is the essential structural element for the building,” said Thom McCarthy, an interior designer with Jackson Clements Burrows, the project architects and designers. “They form the Grand Hall, the spine of the building connected to all the rooms – the artistic and library at each end, and the function rooms in the centre. They are the three major tenants of the community facility. “Glulam columns are very striking; we have had tremendous experience with them in student residential projects. We were keen to express them as much as possible. They formed a lot of the internal pallet, and at the library end.” “Regarding the tall columns, a woman came up to me and said, ‘There is steel inside those columns isn’t there?’ No! All are just laminated timber, she couldn’t believe it,” he said, as the columns are so tall,” project architect James Stewart said. “She thought we had steel columns and capped them.” The library and offices in the mezzanine floor are all CLT (cross-laminated) mass timber, made from plantation pine, at the X-Lam factory in Wodonga. Mr McCarthy said the company had experience with CLT in a number of projects. “We were keen to use Victorian Ash and see these two timber products combined. They are the two key structural components,” he said. “The devil was in the details – the base plates and how they meet the structural slab. We were keen to do a little timber design solution that expresses all that but defines and emphasises the timber.” The national business development officer at ASH, Daniel Wright, said ASH was the only Australian producer of mass timber glulam in any volume. MASSLAM 45 is the proprietary strength of ASH’s strong hardwood glulam. According to ASH, European mass timber brands base the name on bending strength; Australian glulam usually follows stiffness. This makes Australian GL17 stronger than European GL28. “We are competing with imports. MASSLAM 45 clearly shows where we sit in strength,” Mr Wright said. Mr Wright said ASH did the shop drawings, produced the timber and glued the timber members and profiled them using CNC. CNC (Computer Numerical Control is a term referring to automated specialised machinery, a process for automating the control of machine tools via software installed in a microcomputer linked to a tool). “We then delivered to TGA Engineers. TGA did the structural design and purchased the manufactured components from us. They then attached connections, coated them and delivered to the site,” Mr Wright said. TGA, based in Bayswater, specialises in mass timber engineering. Mr Stewart said the columns were spectacular, beautifully finished with brackets and metal plates at the base that were manufactured in their shop. Extra timber was obtained through the Big River Group, which supplied blackbutt that was 15 millimetres thick. “It creates terrific variation. The visual quality of the timber worked in with the structural columns. This is beautiful timber but put a foot wrong in sealing it can change its appearance. From a design perspective, we had a thread and kept building on it,” Mr McCarthy said. Mr Stewart said one problem occurred with the timber. “We had the Ash columns, but all these different tones – the acoustic ceilings, the mass timber framing, the library at the end and ceiling and walls mass timber in CLT, the stairs, handrails, so many different wood types – the trick was the ‘pallet’,” he said. “But it’s quite successful when you go through the space; you feel like it’s all the same, even though there may be Blackbutt here and Ash there, CLT pine … it all fits comfortably together.” Mr McCarthy said pine has a few more knots and a “bit of attitude”. “In terms of design move, it’s free and beautiful. Our challenge was to rationalise all the surfaces in a way that expressed that timber without interrupting it too much,” he said. Mr Stewart said JCB’s practice was to avoid plaster board at all costs. “You can’t always do that,” he said. Design work on the project began in 2015. Several schemes followed before JCB took on the job in 2020. The lockdowns created havoc, but there was still big stakeholder engagement. “In those discussions, we introduced the notion of a big timber building and the qualities that come with it,” he said. The community got really excited and responded positively to it. Mr Stewart said the other ambition was to achieve a ‘passive house’ (PassivHaus) building, a style of building from Europe that emphasises energy efficiency that is now increasingly adopted in Australia. “They are mainly residential buildings, but this is the second-largest public building in Australia that is ‘passive house’ and the first Passive House theatre in Australia,” he said. “The principle of it is a highly thermally efficient envelope – air-tight, high performance glazing, insulation. That works well for the council, which owns it for 50 years, but ongoing energy costs will be very small.” There was no measure of timber in the building as a carbon store. “Not in passive house; it’s all about ongoing running costs,” Mr Stewart said. Timber’s carbon role was part of the design approach but not as a method of measurement. The timber is both structural and aesthetic. Mr Stewart said the outside of the building was responding to the geology of the island. “The brick and outside façade are meant to reference […]

It is with sadness that we say farewell to a true champion of the Queensland Timber Industry this week. Victor Gersekowski, owner/director of Vic’s Timber – a cypress pine sawmill at Cecil Plains in the Western Downs region of Queensland. Cypress pine is a conifer native to Australia – Callitris glaucophylla. Sources: Timberbiz, Melissa Syme Vic Gersekowski always had the cypress blood running through him, with grand-father Dick Gersekowski starting the business, carting cypress logs in the 1940s. The sawmill at Cecil Plains was bought by the family in 1959, with father Noel building much of the equipment. Tragically the sawmill burnt down in 197 however,Noel rebuilt it in just six months. Vic inherited the sawmill in 1981 after his father passed away. In 1999, he revamped the business and became the driving force behind Vic’s Timbers. In Vic’s words, “It is such a unique timber, hard wearing, durable, termite resistant. It has the durability and hardness of a lot of hardwoods, and yet it has a knotty appearance like pine.” The family started off selling boards into the Sydney market, but as times changed, their focus turned to selling house framing and flooring into the Queensland market. Always looking for new opportunities and value adding, they invested in kiln drying and developed new customers overseas selling specialty products. Dressed timber into Japanese markets was a real winner. You may not have always agreed with Vic, but you knew where you stood, and he was always up for a good argument. Vic’s passion for the cypress pine industry was well known and he most definitely lived and breathed it. He was keen to share his knowledge and experience, and always had a positive outlook for the timber industry. I was a forester based at Dunmore near Cecil Plains in the 2010’s and had the privilege of knowing Vic for several years. Farewell Vic – you made a great contribution to the timber industry and to Queensland.

The New Zealand Institute of Forestry (NZIF) is proud to announce its strong support for Arbor Day (June 05) and calls upon all New Zealanders to join in making this day a widely recognised national event. Source: Timberbiz NZIF envisions a future where every citizen plants at least one tree on Arbor Day, contributing to a greener, healthier, and more sustainable New Zealand. Trees offer a multitude of benefits which significantly enhance our environment and well-being. They play a crucial role in fixing carbon, thus combating climate change. Trees also purify water, provide essential wood and non-wood products, create recreational spaces, improve mental health, are important for wildlife, and ameliorate the local climate by providing shade and cooling. The environmental and societal advantages of trees are immense and far-reaching. Furthermore, the wood products derived from commercial plantations are integral to a renewable, circular-based economy, promoting sustainable development and reducing waste. To mark Arbor Day, NZIF will be planting one tree for each of its members. This initiative symbolises our commitment to fostering a greener future and highlights the collective impact of individual actions. We believe if every New Zealander plants a tree, it will not only beautify our landscapes but also contribute to our nation’s ecological and economic prosperity. NZIF President, James Treadwell, emphasises the importance of this initiative: “Arbor Day presents a unique opportunity for all of us to come together and make a tangible difference. Planting a tree is a simple yet powerful act which benefits our environment, our communities, and our future generations. We encourage everyone to join us in this effort and make Arbor Day a significant and cherished tradition in New Zealand.” New Zealand is home to many environmental and community groups dedicated to restoring Aotearoa’s natural mantle. These groups tirelessly work to rejuvenate native forests, protect biodiversity, and enhance community well-being. They would greatly welcome and benefit from widespread support on Arbor Day, further amplifying the positive impact on our environment. The NZIF encourages community groups, schools, businesses, and individuals across the country to participate in Arbor Day activities. Whether it’s planting a single tree in your backyard or organising a community tree-planting event, every contribution counts. Let’s unite in our efforts to enhance our natural surroundings and ensure a sustainable future for all. Together, we can make Arbor Day a day of action, reflection, and celebration. Plant a tree, grow a future.

The Pentarch Group has grown by becoming a significant stakeholder in prefabricated house component construction business Green Timber Technology (GTT). Source: Timberbiz GTT was established three years ago as part of a revolution in house construction by fabricating walls, roofs and floors in a specialised factory to be delivered to home sites for assembly. This new concept in housing construction reduces material waste, time lost through weather events and labour costs when compared to onsite construction. “Modular and prefab construction is a growing sector which the NSW Government has identified as a solution to ease the shortage of affordable housing by providing a steady supply of cost-effective housing components,” said Pentarch Executive Director Steve Dadd. Mr Dadd will become Chair of the GTT board as part of the investment and said Pentarch’s existing infrastructure and manufacturing capability is aligned with GTT’s vision for the future. “With our understanding of major capital projects and factory efficiency in softwood construction, Pentarch is positioned to take GTT to the forefront of the prefabrication market,” he said. “We already have in place supply capability with our Oberon softwood facility close to the GTT location in Orange, NSW, and a network of stakeholders in the housing construction industry. “It’s an exciting time in housing construction technology which meets an immediate challenge with our housing shortage crisis and Pentarch is proud to be a part of the solution.” Prefabricated timber kits can be constructed with all the components, such as windows, insulation, electrical wiring and plumbing conduits, installed and flat-packed to be transported to new home sites. Specialised machinery is incorporated to maximise the use of the plantation softwood and other materials which combine to create attractive and durable housing components.  

In early April I spoke to the New Zealand Farm Forestry Conference in Napier about farm forestry options as I saw them.  Most of the farmers I was talking to have had many years of experience in farm forestry, so I was certainly not going to tell them how to grow trees. Rather, I explored how to find a pathway through some of the challenging and at times imponderable issues that farm foresters currently face. Many of my forestry presentations have focused on flaws in the Emission Trading Scheme (ETS). This presentation was different. I simply took the rules as they are and looked at how farm foresters could best respond in their own interests, be they economic interests or broader issues coming from the heart. My starting point was to briefly look at the journey New Zealand’s production forestry has taken in recent decades. I used three graphs published in November 2023 in a USDA GAIM Report, where GAIN stands for Global Agricultural Information Network. GAIN reports are a great source of current and historical facts with not political messaging. The first graph below demonstrates two key points. The lower dark-coloured area shows how New Zealand production forests were sold off in the 1990s from public to private ownership. The upper light blue area demonstrates the big uptake in forest planting in the 1990s. The second graph demonstrates that processed-wood volumes have bounced around but there has been no overall growth in recent years. In contrast, the log trade has grown from almost nothing thirty years ago, reaching a maximum in 2023. What the graph does not show is that export volumes are declining this year.  This is not because there is less timber to be harvested, but because decreasing returns and increasing costs mean that the economics of harvesting no longer stack up on land that is steep or distant from ports. The third graph demonstrates the wall of wood aged 26 to 30 years waiting to be harvested from the big plantings in the 1990s. if it were not for economic issues that threaten harvest operations, the next five years would see more exports than ever before. I then observed to my audience that timber is where we are more dependent on China than for any other export product, with almost 90 percent of log exports going there. I also observed that China now has less need for our timber than in the past. This is in part because China’s big infrastructure years are now behind us. Our logs are largely used for concrete formwork rather than products with higher value-add. New Zealand is now the only country that exports significant volumes of softwood logs to China. Countries like Russia now only export lumber, not logs. Also, China is becoming increasingly self-sufficient in timber, with big eucalyptus plantings in the south of China. However, China’s timber markets are obscure and it is hard to confidently take an overall positive or negative stance about the future. I then looked at the economics of sheep and beef farming relative to various farm-forestry options. There is no doubt that most sheep and beef farmers are doing it tough right now. Profits in the last ten years have typically been in the range of one to two percent return on capital and slipping below that in the last three years. Right now, many farmers are cash-flow negative, with land values also dropping precipitously. This also means that many farmers lack cash right now to convert some of the rougher country to trees. When preparing the talk to farm foresters, I ran lots of spreadsheet models of net present values and internal rates of return for various production forestry scenarios.  The big message was that using prices and costs from two to five years ago told a story of nice returns for radiata pine. But that story now belongs to history.  Looking forward, the big message relating to production returns is lots of uncertainty and high economic risk. This aligns with the current attitude of the big forestry companies.  Whereas until about 18 months ago there was a mad dash to buy land for its potential timber value, that interest has disappeared.  Almost no-one is interested in buying land for production timber by itself. I then looked at what happens if land is developed out of pasture for new radiata pine production based on harvesting at 25-30 years and at the same time earning carbon credits through to 16 years under the Emission Trading Scheme (ETS)) averaging regime. I used a conservative price of $60 per tonne of carbon (NZU) whereas the minimum prices for which the Government currently auctions carbon is $64 this year, with this price having been officially set to rise in each of the coming years. In doing these calculations, I used the official look-up tables for radiata pine growth in different parts of New Zealand. These tables are used for assessing carbon credits for all forests of less than 100 ha and are generally considered to be conservative. Forests of more than 100 hectares are measured on actual growth. The big message here was that carbon credits are the business to be in if converting pasture to trees. They can rapidly turn a likely unprofitable timber-production business into a profitable dual business.  It did not matter what scenario I looked at, as long I used a carbon price of $60 then the internal return was acceptable, and in many cases much more than acceptable. In a typical example, it raised the IRR from around 2% to about 9% even with these low carbon prices and an inbuilt land value. It also brought the payback period including land value as a cost back to around ten years or slightly less. These projected returns raise questions as to why the big investment companies are not doing this right now. The most important reason is that confidence has been knocked around so much over the last two years, with Governments […]

The Victorian state government’s decision to ban native forestry has been felt across the timber and manufacturing industry. Hundreds of timber workers lost their jobs and many Victorian mills have shut. As the effect flows through the supply chain, building material manufacturers are being forced to find alternatives. Source: Timberbiz Door manufacturer Specialty Doors has moved away from Australian hardwoods to a range of imported species. Managing Director Marcus Bastiaan laments the impact on his businesses ability to support the local timber industry. “We were buying 10 packs of Australian hardwood a month, and one or two packs of imported timber. Today that is the opposite,” he said. For the building industry the loss of Eucalyptus regnas and Eucalyptus delegatensis, commonly known as Victorian Ash has driven up the price of building supplies. The timber species was most used by manufactures of doors, windows, flooring, furniture and staircases, and was well regarded due to its density and suitable for exterior uses in the Australian climate. Due to the industries inability to use the timber manufacturers like Specialty Doors has begun offering several imported species as replacements, including American oak, European beech and Eucalyptus grandis. “American Oak is beautiful, but the price point is 50% higher than Ash. Beech is great on price, but it’s no good for external use. For now, our closest substitute on price, appearance and utility is grandis,” Mr Bastiaan said. Eucalyptus grandis is a common species on the north coast of NSW and southern Queensland. However, the species is currently being imported from plantations in Uruguay. Mr Bastiaan is frustrated that Australian manufacturers are forced to rely on imported timber. “Grandis is an Australian species being grown overseas and sold back to Australians. We should have been developing plantations thirty years ago. Instead, we are rewarding everyone else who has,” he said. He believes the Victorian forestry industry should not have been shut down. He pointed to a similar series of events happening in NSW and Tasmania. With both states logging industries fighting activists in court. Mr Bastiaan believes policy needs to change to ensure the survival of a local timber industry. “The union, forestry industry and government need a better approach on timber. We should be planting, milling and selling our own,” he said. As the timber industry navigates a changing environment mills and manufacturers must look toward alternatives to continue the supply of hardwood to the domestic construction industry. Mr Bastiaan sees the uncertainty as a major detractor long term for the industry. “Short term and inconsistent timber policy has driven up the price to manufacturer and blown out lead times. The industry is losing skilled workers and struggling to attract apprentices. Ultimately all of this increases the cost of construction,” he said.