Forest Products Industry

The rise of increasingly sought after, timber framed lifestyle dwellings is helping to free up housing stock across Australia. In the Fraser Coast, home to Hyne Timber, one of Australia’s oldest and largest softwood manufacturers, their framing is currently being used for almost 800 new lifestyle dwellings being built by Brighton Homes alone. Source: Timberbiz These are located across three village developments on behalf of Brighton Homes clients, Ingenia, Stockwell Group and Green Fort Capital. Typically, over 50s homeowners sell their home to move into a ‘right size’ lifestyle village without a mortgage – thereby freeing up housing stock for next generations. According to the 2021 ABS Census, 250,000 Australians reside in retirement communities which is a 23% increase from the 2016 data. This number is expected to exponentially grow with our aging population and 458 operators of retirement communities across the country. According to the Retirement Living Council ‘Better Housing for Better Health’ report, the current pipeline of retirement communities will reduce the housing shortage by 18%. Further growth of this pipeline to meet the ongoing demand, could further reduce Australia’s housing shortage by 67% by 2030. (Source: https://www.propertycouncil.com.au/submissions/better-housing-for-better-health) Brighton Homes Business Development Manager, Patrick Cumner, said their own pipeline for retirement villages will deliver almost 12,000 dwellings across Queensland in the next few years. “Lifestyle villages have been hugely popular across America for many years and this model is taking off here in Australia. “These centrally located villages can have hundreds of low maintenance dwellings along with the popular, shared facilities, services and social programs which make these communities so desirable for healthy and active retirees. “In the most part, homeowners do not own the village land on which their home sits, and therefore, by law, the home must be relocatable. This type of construction lends itself to timber while also delivering the many user-friendly and environmental benefits our locally grown timber provides. “Evidence demonstrates that his shift to lifestyle villages can only have a very positive impact on our retirees, the broader community and the Australian economy including housing availability for our next generations.” Mr Cumner concluded. James Hyne, Stakeholder Engagement Manager for the Hyne Group said this is a great step in the right direction for housing availability, “With the housing and land availability challenges here in Australia, this type of lifestyle model is contributing positively to our communities in many ways. “Not only are these lifestyle villages in hot demand, but they’re also being largely built using timber for a range of benefits including the ability to relocate them, quieter buildings, locally grown, locally manufactured and locally processed into frames and trusses at companies such as Brett’s Timber and Hardware and CQ Building Supplies. “From a pine seedling to a new home, thousands of local jobs make up these dwellings, further supporting our regional economy.” With an estimated 3,500m3 of timber to be used for the three Hervey Bay lifestyle villages, this volume of timber will sequester approximately 2,500 tonnes of carbon from the atmosphere which is the equivalent to 1,270 cars off the road for a year. This volume of structural graded, softwood plantation pine will have regrown across the Australian softwood plantation estate in just 10 hours. Construction doesn’t get more renewable than that.

A Malaysian-born forestry giant, Ernslaw One, continues to remain at the centre of the storm after wreaking havoc on Te Tairāwhiti’s fragile environment with forestry debris. Source: New Zealand Herald Despite being fined for the catastrophic destruction caused during the 2018 cyclones, the company is yet to fully rectify its forestry processes as ordered. Now, it has left the Environment Court with no choice but to extend deadlines, further delaying peace of mind for a region heading into cyclone season. Ernslaw, a dominant force in New Zealand’s forestry industry, commands an empire of 100,000ha of forest, including vast holdings in Ūawa/Tolaga Bay and the West Ho forest within the Gisborne District. The company is headed by the Oregon investment company owned by the Tiong family, who also own New Zealand King Salmon and The Neil Group. Following a severe storm during Queen’s Birthday weekend in June 2018, substantial environmental damage occurred with sediment, slash and logging debris from the Ūawa Forest entering water bodies, streams, rivers and ultimately Tolaga Bay. Around 47,000 cubic metres of woody debris washed up on Tolaga Bay with an estimated 4000,000 cubic metres left through the Ūawa catchment. The Gisborne District Court charged Ernslaw with a breach of the Resource Management Act 1991 and in 2022 they were fined $225,000 and ordered to pay $130,000 reparation to locally affected families. In August last year, the Environment Court imposed enforcement on Ernslaw, Timbergrow and Chiong Yong Tiong to comply with a number of orders specifically in the West Ho Forest of Tolaga Bay. The conditions set by the Environment Court had a deadline of December 2024, however when the Gisborne District Council conducted a site visit in November, it noted areas of the forest remained non-compliant and still had high-risk issues. The council told the Environment Court that although some work had been done, the work was “piecemeal” and representatives for Ernslaw who also attended the site visit expressed surprise at the minimalist nature of the works completed. The council found woody debris remained at a number of locations, waste logging material had not been pulled back from skid sites (generally the side of hills) and water controls were inadequate. When the respondents advised the council the orders would not be complied with by December, they proposed no optional dates, forcing the council to apply for extensions due to the lack of compliance. The council also raised throughout the remediation period that the group had no director, manager or employee taking responsibility for overseeing the project, making it difficult to gain any feedback. The respondents acknowledged they had not fully complied but said the work that had been implemented had significantly improved West Ho Forest over time. Mana Taiao Tairāwhiti (MTT) submitted to the court that every additional day granted to the organisations to rectify issues posed additional risk with disastrous consequences. MTT said as long as the work remains incomplete, “the burden of fear weighs heavy on the communities”. Chief Environment Court Judge David Kirkpatrick made an extension of the order relating to the West Ho Forest for a number of compliance targets to be met the end of August. Judge Kirkpatrick directed all slash and waste logging at the edge of skid sites be removed by February 14. Water controls to eliminate risk of erosion must be completed by February 28. Ernslaw chief executive Darren Munn has since been assigned as fulfilling the monitoring role until the works in the order are complete.

A pilot international exchange program between Canada, the UK, New Zealand and Australia has been developed to offer participants an opportunity to gain diverse perspectives as well as foster personal and professional growth. Source: Timberbiz Forestry Australia CEO, Jacquie Martin, said Australia is delighted to be part of a pilot international exchange program with the Canadian Institute of Forestry/Institut forestier du Canada, the Institute of Chartered Foresters, United Kingdom and the New Zealand Institute of Forestry. “The pilot international exchange program offers a unique opportunity for emerging leaders in forestry and forest management to participate in a 3-month paid international work placement,” Ms Martin said. “It allows participants to build global networks, exchange knowledge and gain hands on experience. “Participants will be able to immerse themselves in a new environment, assisting them develop adaptability, broadening expertise, and collaborating on shared opportunities and challenges.” Prue Crundall, Forestry Corporation NSW will be hosted by the Duchy of Cornwall in the UK. Ms Crundall said she is relatively new to the forestry industry and participating in this program will give her an opportunity to enhance her understanding of forestry practices and expand her professional network. Sean Boucher, of Sustainable Timber Tasmania will work with Strategic Natural Resource Consultants, a trailblazer in forest management and resource consulting, in British Columbia, Canada. Mr Boucher said he was looking to participate in this forestry exchange program to enhance his understanding of sustainable forest management and to view and learn different forestry techniques and practices. “In addition, by opening their doors to young professionals from overseas, Sustainable Timber Tasmania and Forestry Corporation of NSW are providing life-changing opportunities and showcasing the exceptional forestry expertise and innovation within their organisations,” Ms Martin said. Australia will welcome Hope Rebonne from Canada, who will gain experience with Sustainable Timber Tasmania in Australia. Ms Rebonne said she recently graduated with a forestry diploma in April 2024. “I applied to this exchange program because I see it as a fantastic opportunity to deepen my understanding of forestry on a global scale, while I am still discovering all the forestry job opportunities here in Canada. “I am excited to explore the diverse practices and approaches in Tasmania’s forest sector and to compare them with forestry in Canada,” Ms Rebonne said. Alex Donaldson, Regeneration Program Manager with Zulu Ecosystems, UK will be working for Forest Corporation of New South Wales. Mr Donaldson said joining Australia’s international forestry sector is an unmissable opportunity. “I’m eager to exchange insights from the UK and immerse myself in their unique industry,” Mr Donaldson said.  

New Forests, a global investment manager of nature-based real assets and natural capital strategies, has announced the final close of the Australia New Zealand Landscapes and Forestry Fund (ANZLAFF), raising approximately A$600 million from institutional investors from across Europe and Asia-Pacific, including three new investors. Source: Timberbiz ANZLAFF provides exposure to integrated forest, land, carbon and agriculture markets in Australia and New Zealand targeting investments in core forestry plantations alongside processing and related infrastructure, with some targeted exposure to agriculture assets. The Fund aims to maximise the value of the whole landscape by positioning investors to benefit from the best use of the landscape across forestry and agriculture, while combining additional revenue streams such as carbon, biodiversity, and renewable energy such as solar and wind. It will also seek to enhance climate mitigation through carbon sequestration and emissions reduction opportunities across its investments. Among the new investors in the Fund’s final close are Evli, an investment management business spanning Finland and Sweden; Kyushu Electric Power, a Japanese energy company; and a German insurance company. “It is exciting to see investors globally are increasingly considering how they can gain exposure to natural capital through an integrated investment into land, forestry, agriculture, carbon and biodiversity,” David Shelton, Managing Director, Australia and New Zealand at New Forests said. “Investors are looking to allocate capital to these areas for strong returns and option value on future strategies, combined with a desire to contribute to net zero goals, conservation, and the growth of the circular bioeconomy. “We are particularly pleased that existing clients have re-invested with us again, while we are also excited to welcome a cohort of new clients to New Forests via this Fund. Some of these have come from the relationship with our new owners, Nomura Asset Management and Mitsui. We are looking forward to continuing to expand these relationships with all of our valued clients.” Roger Naylor, Portfolio Manager, Evli Fund Management Company Ltd said that Evli’s forestry fund of funds invests globally in sustainable commercial forestry and offers investors a well-diversified portfolio with low correlation to other asset classes. “We are excited to make our first investment in the Australia and New Zealand region. This move not only enhances our portfolio diversification but also positions us to capitalise on the significant growth opportunities in both the domestic and Asian markets,” he said. “New Forests is a proven and highly reputable local manager we regard as amongst the best in class for responsible investing. We are confident that by taking a landscape approach, the investment will deliver strong returns while meeting our high standards for ESG performance.” Kenjiro Miura, Chief Group Manager of Industrial Creation Group at Kyushu Electric Power said: “We are proud to announce our first-ever investment in a forestry fund, a significant step aligned with our mission to contribute to the development of a sustainable society. By partnering with New Forests, a global leader in sustainable forestry management, we aim to create value not only through stable returns but also through meaningful environmental contributions, including CO2 sequestration and reductions in greenhouse gas emissions.” The final close comes 12 months after New Forests announced the first close of ANZLAFF with commitments from five investors including Swedish pension fund Andra AP-fonden (AP2); German pension group Bayerische Versorgungskammer (BVK); the Australian Government’s Clean Energy Finance Corporation (CEFC); along with an Australian and a German insurer.

The Federal Coalition is renewing its calls for the Federal Labor Government to stand by its commitment to Tasmania’s native forestry sector and not let businesses and jobs be killed off by stealth. Source: Timberbiz This comes after Bendigo Bank has recently indicated that it would not lend to a Tasmanian business involved in sustainable native forestry practices for ‘ESG’ reasons, putting at risk its viability and the viability of all businesses to responsibly conserve forests within the state and, importantly, employ Tasmanians. The Prime Minister made a commitment to Tasmanians that forestry industry workers would “have a better future” under his government. Federal Shadow Environment, Fisheries and Forestry Minister, Senator Jonno Duniam, argues that this has not been the case. “Tasmania’s native forestry sector has never been in greater danger over the last 20 years than it has been under the current Federal Labor Government. Businesses are under threat while the Federal Forestry Minister, a Tasmanian no less, stands idly by and lets activists bully them towards administration,” Senator Duniam said. “I encourage the Federal Labor Government to honour its commitment to support our state’s workers. They need to do all that they can to ensure that businesses are able to obtain finance so that they can continue their world-leading, sustainable practices. Anything short of that is a failure in its mandate and responsibility to Tasmanians. “We manage our forests better than anywhere else in the world. Under Labor, and especially after their bans on native timber harvesting in Victoria and Western Australia, more and more timber is being imported from counties that don’t share our high environmental standards. This has the perverse effect of being worse for the environment,” he said. “The Federal Coalition will not take a backward step in supporting Tasmania’s forestry industry. That will again be evidenced by the policies we will take to the Federal election.” In a doorstop interview with Peter Dutton during the week he said that he applauded Eric Abetz for calling this bad behaviour out by the banks. “There are a lot of Australians who would say that big banking executives on multi-million dollar pay packets, frankly, have less values and standing than people do in the forestry industry. So why are they backed? Minister Dutton asked. “Let’s get serious, the banks are there to provide finance to creditworthy customers. If a business is legal and it has the ability to service the loan and it’s creditworthy, then the banks should not be discriminating on any other basis. “I think this whole woke agenda and the approach of chief executives trying to please industry super funds and proxy voters and the rest of it has to come to an end. If there is a customer of Bendigo Bank who is an employee within the forestry industry, are they going to stop banking that customer? Do they want to stop taking the fees that are paid by that customer working in the forestry or the salmon industry? “The banks have a moral and social responsibility to consumers, and they have a social licence which they need to honour. That social licence includes not discriminating against people who are involved in an absolutely essential and critical industry. “If Labor had their way, the salmon industry, forestry would close down tomorrow, and the Tasmanian economy would be bankrupt, and tens of thousands of people would be out of work. If the banks want to subscribe to that sort of theory, they should be called out for it – and we will call them out for it.”

The Australian Forest Products Association (AFPA) believes the Bendigo and Adelaide Bank needs to look at the facts, acknowledge the sustainable nature of Australian native forestry and end its ban on lending to businesses in the sector. Source: Timberbiz AFPA CEO Diana Hallam said Australia’s native forestry was world leading environmentally, responsible for essential everyday products and formed the lifeblood for thousands of people in rural and regional Australia. AFPA’s call joins with the Tasmanian Forest Products Association and Tasmanian Government Minister for Business, Industry and Resources Eric Abetz who have both this week highlighted the Bank’s decision to withdraw its lending to family forestry contracting business T P Bennett and Sons. AFPA has heard of further examples of the bank failing to support valued community businesses in the sector. “Bendigo and Adelaide Bank needs to stick to banking and stay away from greenwashing,” Ms Hallam said. “If the Intergovernmental Panel on Climate Change (IPCC) acknowledges the science behind the sustainable management of native forests, then surely the bank can also. “The bank is treating native forestry as an extractive industry, not what it is, a renewable industry,” Ms Hallam said. She said Australia’s native forestry operations and the businesses that work in the supply chain were part of an essential and sustainable sector that harvests and replaces just six in every 10,000 trees in Australia’s native forests. Whether they be forest managers, contractors, harvesters, in transportation, or processing and manufacturing in mills – this sector was clean and green – and it needed long-term committed financiers to support the regional communities it underpins. “Communities Bendigo and Adelaide Bank purports to support,” Ms Hallam said. “The fact is if native forestry ceases to exist in Australia, we will be forced to import all of our hardwood timber and fibre for products like home furnishings, decking and furniture from places with lower environmental standards than Australia, and that means worse environmental outcomes for the planet. “We will have replaced an industry governed by world leading environmental standards and substituted it for one with worse environmental credentials. “Hopefully the 62% of Bendigo and Adelaide Bank’s corporate staff who completed climate change training in 2024 understand the perverse outcome their policy is promoting. “Possibly, that training could also have included the findings of the IPCC’s 4th Assessment that states ‘a sustainable forest management strategy aimed at maintaining or increasing forest carbon stocks, while producing an annual sustained yield of timber, fibre or energy from the forest, will generate the largest sustained mitigation benefit’. “This ill-informed, virtue signalling must end. Leaving the lights burning throughout the night in any of the Bank’s offices, flying directors to meetings and driving fuel motor vehicles is far more a risk to the environment than the work Australia’s family forestry contractors are involved in,” Ms Hallam said. “The science is clear, managed native forests support the climate, communities and the economy. I challenge Bendigo and Adelaide Bank to reverse its decision on native forestry finance.”

The debate on the “right” materials to use when building homes in bushfire-prone areas often sparks fierce opinions and misguided claims. While some advocate for alternative materials, timber framing remains a viable, safe, reliable and effective option when designed and built in accordance with modern practices. It’s time to set the record straight and address some of the myths that have driven unnecessary fear about building with timber. One common misconception is that timber frames ignite easily and pose a higher risk of destruction in bushfires compared to steel. However, this oversimplified view ignores the science. Timber-framed houses built in bushfire-prone areas must be designed and constructed in accordance with the Australian Standard AS 3959 Construction of buildings in bushfire-prone areas. AS 3959 provides solutions for timber-framed houses from lower bushfire threats through to an extreme threat referred to as Flame Zone. AS 3959 makes no distinction between using a timber-framed or steel-framed building. However, from a basic material science perspective, timber, unlike steel, does not lose its structural integrity at lower temperatures. Steel, on the other hand, begins to lose strength and can melt or buckle well before reaching the extreme heat generated by a bushfire. This was seen during the 2009 Black Saturday fires in Victoria and countless other events—steel was no more invincible than timber, and many steel homes suffered the same fate in the face of ferocious flames. Another important factor is the role of the surrounding environment. Studies and expert analysis repeatedly confirm that the fuel load around a property, the dry vegetation, debris, and landscape management is a significant determinant of whether a home survives a bushfire. Building materials alone do not dictate safety. A home surrounded by cleared defensible space and properly managed vegetation is far more likely to survive than a steel-framed house that is overgrown with combustible plants. It’s time we stopped stigmatising timber and started focusing on smarter overall designs and landscape strategies. What’s more, guidelines for building in bushfire-prone areas, such as using ember guards, managed building sites, and strategic design methodologies are applicable to all construction types. Timber homes, when constructed to meet the AS 3959 Bushfire Attack Level (BAL) requirements, are every bit as capable as steel or other materials at resisting a bushfire. Claims to the contrary often originate from industries with vested interests, perpetuating myths for commercial gain. The growing intensity and frequency of fires globally can no longer be ignored, and climate change is a significant driving factor behind this alarming trend. By continuing to rely heavily on materials like steel and concrete, which are produced through energy-intensive processes that emit vast amounts of carbon dioxide, we are exacerbating the very crisis that fuels these catastrophic bushfires. Conversely, timber offers a sustainable alternative that actively combats climate change by storing carbon throughout its lifecycle. Utilising timber for construction not only reduces our carbon footprint but also aligns with long-term climate action goals. By choosing timber, we are not just building safer, smarter homes in bushfire-prone areas—we are investing in a solution that mitigates the climate crisis and the rising severity of bushfire events it continues to create. The reality is that no building material, steel included, can stand up to the full force of a catastrophic bushfire fuelled by high winds, extreme temperatures, and towering flames. The Santa Ana winds in California or the blazing infernos wrought by Australia’s Black Summer are clear demonstrations that environmental factors outweigh material choice in the scale of destruction. It is building design, adherence to bushfire construction standards, and proactive land management that provide real solutions, not uninformed material bias. Timber-framed homes have a place in bushfire-prone areas, and their use should not automatically raise alarm bells. What matters is how we design and build them, as well as how we manage surrounding vegetation and community preparedness. Blanket statements dismissing timber are both scientifically inaccurate and counterproductive. The focus must be on promoting practical, evidence-based strategies instead of politicised fearmongering about building materials. The way forward for communities in bushfire-prone areas should be based on thoughtful planning, sustainable practices, and respect for fire-smart guidelines. Timber is not the enemy; mismanagement, reckless land practices, and misinformation are. It’s time to embrace timber as part of the solution to combat climate change not unfairly condemn it as part of the problem. Kersten Gentle is Chief Executive Officer of the Frame & Truss Manufacturers Association of Australia.