Forest Products Industry

David Eby Premier of British Columbia, Canada was part of a trade mission to Asia is bringing back new opportunities to grow a stronger, more diversified economy and create good jobs throughout the province. Source: Timberbiz The 10-day economic tour promoted British Columbia’s strengths as a reliable trade partner that has what the world needs from critical minerals and clean energy to forestry and agriculture products, and the ports to deliver them. “This mission was about supporting BC jobs and building a British Columbia that will be the economic engine of a more independent Canada,” said Premier Eby. “Our trade relationships with the Indo-Pacific are exceptionally important right now, as we work to diversify our markets and become less reliant on the United States. “BC has a lot of advantages – our proximity to Asia, our abundance of natural resources, our talented and diverse workforce. These are all things that the world needs, and it was a great opportunity to showcase that to key trade partners.” During the mission, which included stops in Japan, Malaysia and South Korea, Premier Eby was accompanied by Lana Popham, Minister of Agriculture and Food, and Paul Choi, parliamentary secretary for Asia-Pacific trade. Representatives from 19 BC companies, universities and associations were part of the business delegation. The trade mission focused on strengthening relationships with governments, business leaders and investors, as well as promoting BC’s strengths in key sectors, such as clean energy, technology, wood and wood products, agrifood and critical minerals. Many of the meetings focused on plans to work with Japan, Malaysia and South Korea to support energy transitions through opportunities in clean energy. The mission also focused on promoting BC’s safe and sustainable agrifoods products. Advancing information sharing and knowledge exchange was also a key component of the mission. Multiple agreements were signed between BC and Korean universities. For example, the University of British Columbia and Simon Fraser University signed memorandums of understanding with Pohang University of Science and Technology to promote joint research, faculty and student exchanges and collaborative innovation. “We are extremely confident that our trade mission to Japan, Malaysia and South Korea will strengthen existing relationships and generate new opportunities across the region,” Choi said. “British Columbia has a highly efficient network of trade and investment representatives throughout Asia, as well as the products and services that the growing Asian economies need. “We will continue to promote our advantages as a key trading partner with our friends in the Asia-Pacific region to grow our trade presence there.” The mission is part of BS’s Trade Diversification Strategy, which outlines actions to increase trade and investment opportunities in existing markets, such as Japan and South Korea, as well as in new and emerging markets, such as Malaysia.

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One-third (34%) of all global forest lost between 2001 and 2024 is likely permanent meaning trees in those areas are unlikely to grow back naturally according to a new analysis by World Resources Institute (WRI) and Google DeepMind. Source: Timberbiz The impact is even more severe in tropical primary rainforests, where a staggering 61% of loss is tied to permanent land use change, a major setback for some of the planet’s most vital ecosystems for biodiversity and carbon storage. Researchers also warn that while the remaining two-thirds of forest loss is typically linked to “temporary” disturbances like logging or wildfire, and it can still have lasting consequences. Forests may take decades to recover. And even when they do, they don’t always return to full health. The findings made possible by an advanced AI model and satellite imagery and developed by Global Forest Watch, Land & Carbon Lab and Google DeepMind, offer the most detailed local, regional and global view to date of what’s driving forest loss and what can be done about it. “We’ve long known where forests are being lost. Now we better understand why,” said Michelle Sims, Research Associate at WRI. “This knowledge is essential to developing smarter actions at the regional, national and even local level — to protect remaining forests and restore degraded ones”. The new dataset distinguishes drivers likely to cause permanent loss such as expansion of agriculture, mining, infrastructure and settlements, which accounted for the 34% (177 million hectares) of global tree cover loss since 2001. Permanent agriculture alone made up 95% of that total. In tropical primary rainforests, drivers of permanent land use change drove an even greater share: 61% of loss (50.7 million hectares) nearly the size of Thailand. While the remaining two-thirds of forest loss stems from causes typically viewed as temporary, such as logging, wildfires, natural disturbances or shifting cultivation, recovery is not assured. Forest regeneration depends on how the land is managed afterward, the type of forest and the degree of environmental stress it faces. “Just because trees grow back doesn’t mean forests return to their original state” said Radost Stanimirova, Research Associate at WRI. “They might store less carbon, have fewer species or be more vulnerable to future damage. And climate change is making many natural events like fires and pest outbreaks more intense and frequent, which makes it harder for forests to recover.” In tropical areas like Latin America and Southeast Asia, permanent agriculture is the dominant driver, responsible for 73% and 66% of loss, respectively. In temperate and boreal regions such as Russia and North America, wildfires often triggered by lightning or human activity and logging are the primary drivers. In Europe, 91% of tree cover loss is due to timber harvesting, much of it within managed forests where regrowth is planned. Some drivers have an outsized impact in specific regions, even if they’re minor globally driven by local land use, economic activity and governance. For instance, mining and energy drive less than 1% of global tree cover loss but caused 28% in Peru’s Madre de Dios region. In Colorado, climate-driven bark beetle outbreaks accounted for 27% of tree loss over two decades, even though natural disturbances like pests, storms, and floods make up just 1.4% of global loss. These are just two examples, many more exist around the world, each shaped by distinct local dynamics. Permanent forest loss has serious and far-reaching consequences: reduced carbon storage, accelerated biodiversity loss and heightened risks to water and food security all at a time when the planet is already facing a deepening climate and ecological crisis. Even temporary losses can be dangerous; depending on how forests recover, they may still lead to long-term ecosystem degradation and a decline in the critical services forests provide. The new data marks a significant advance for forest policy, addressing a crucial gap in global efforts to halt deforestation by 2030. By pinpointing the underlying causes of forest loss in different places, it enables policymakers, companies and communities around the world to design more targeted, effective solutions to tackle deforestation. Researchers at WRI outline a set of urgent, evidence-based recommendations tailored to the specific drivers of forest loss. Among other priorities, they call for stronger Indigenous and local land rights, designing policies that reflect local farming and land use realities, improving how forests are managed and monitored and ensuring infrastructure and agricultural expansion are guided by strong environmental planning. For example, enforcing laws like the EU Deforestation Regulation and supporting smallholder farmers with sustainable alternatives are key to tackling agriculture-driven loss. Meanwhile, reducing wildfire risk demands ecosystem-specific fire management and early warning systems.

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Koskisen, in collaboration with Kesko, the biggest trading sector operator in Finland, has piloted the use of discarded wooden packaging materials – such as pallets – generated in the retail distribution chain as raw material for chipboard production. Source: Timberbiz During the pilot, Koskisen developed a unique recycled wood cleaning process, the first of its kind in Finland. Thanks to this breakthrough, the chipboard made with recycled material is as clean as chipboard made from virgin wood. “Increasing the use of recycled material in our chipboard products is one of our key sustainability goals. The recycled raw material cleaning process developed during the pilot has resulted in an exemplary circular economy product, which matches the performance and properties of chipboard made from virgin wood chips and sawdust. Maintaining product quality was one of the core objectives of the pilot,” said Tom-Peter Helenius, Director, Panel Industry at Koskisen. According to Mr Helenius, even the standard chipboard is a great circular economy product, as it is made from side streams of Koskisen’s Panel and Sawmill Industry operations. This new product incorporating recycled material broadens the range of circular economy products. While the share of recycled material in the finished product is currently a few percent, Koskisen estimates it will be able to utilize a significant amount in production – about one truckload of recycled material each day. “It’s great to contribute to practical circular economy solutions. Until now, Finland has lacked an industrial-scale recycling solution for end-of-life wood. By increasing the share of recycled wood in our products, we extend the life cycle of recyclable materials and use them to sequester carbon from the atmosphere in long-lasting wood products,” Mr Helenius said. Construction and demolition waste is the second-largest waste stream in Finland. In 2022 alone, the construction sector generated 248,000 tonnes of wood waste.* In practice, most of this wood waste has been incinerated in Finland. Kesko’s Building and Technical Trade Division has been actively seeking a sustainable solution for recycling end-of-life wood for several years. “We are constantly developing smarter ways to produce, transport, and use consumer goods. The solution piloted here is new and exceptional in the Finnish context. The results demonstrate that recycling end-of-life wood can be economically viable and add value for both companies. At the same time, we bring more sustainable circular economy products to consumers,” said Antti Auvinen, Director, Procurement and Responsibility at Kesko’s Building and Technical Trade Division. Koskisen and Kesko aim to integrate the pilot into their regular raw material stream and production process during summer 2025. * Finnish environmental administration portal www.ymparisto.fi

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The inaugural Growing Native Forests Champions Awards were announced in New Zealand. New Zealand Forestry Minister Todd McClay congratulated the winners for driving real progress in native forest establishment and land use innovation. Source: Timberbiz “This is what good land management looks like — native forests that support both the environment and the rural economy,” Mr McClay said. “This is practical, long-term investment in our land that delivers environmental and economic benefits while supporting farm profitability.” With 59 entries this year, the awards show what’s possible when innovation meets local knowledge — from farmers and lifestyle block owners to iwi and forestry companies. “Native forests and farming go hand in hand. We can farm the best land and plant natives on the most vulnerable, stabilising hillsides and safeguarding waterways. “These winners prove native planting can work alongside other productive land uses to deliver real results.” Award Winners: Lifestyle Block Owner: Paul and Katherina Quinlan, Northland — pioneers of sustainable tōtara timber management. Mana Whenua: Kapenga M Trust, Bay of Plenty — blending mātauranga Māori and science to grow native forests and create jobs. Trees on Farms: Ian Brennan, Waikato — integrating natives for ecosystem health and income through continuous cover forestry. Forestry Company: Tasman Pine Forests, Nelson/Tasman — restoring native forests, controlling wilding pines, and protecting native species. Catchment/Community: Wai Kōkopu, Bay of Plenty — retiring erodible land and improving estuary health while supporting profitable farming. Each winner received a handcrafted trophy made from native timbers — a symbol of their commitment to New Zealand’s land and future.

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Australia’s economy is slowing, but it’s the country’s builders who are keeping it upright for now, according to peak building and construction industry association Master Builders Australia. Source: Timberbiz New national account figures show Gross Domestic Product (GDP) growth slowed to just 0.2% in the March 2025 quarter, the weakest result in almost a year. However, building and construction activity expanded by 2.2%, making it a standout performer. Without the contribution from the industry, Australia’s economy would have slipped backward into negative territory. Master Builders Australia Chief Economist Shane Garrett said within the construction industry, residential building racked up the strongest gain (+2.6%) during the quarter. “Demand for home renovations was particularly strong,” he said. “Non-residential building delivered a 2.1% uplift during the quarter, while engineering construction gained 1.5%. “The improved performance of construction activity coincided in the same quarter as the Reserve Bank of Australia’s initial interest rate cut, giving confidence a much-needed boost. “But momentum won’t last without targeted reform to lift productivity. “Even though building and construction is moving in the right direction, it still faces an enormous challenge with next month marking the end of the National Housing Accord’s first year. “We are still building homes at a far slower rate than what’s needed to hit the Accord target. “We can only do this by rapidly addressing our industry’s severe productivity problems and allowing our industry workforce to expand.” Master Builders Australia CEO Denita Wawn added the new Federal Government needs to help the industry do what it does best: build. “That means cutting red tape, boosting skills pipelines, and fixing broken planning systems. “Builders are doing the heavy lifting for the economy, now it’s time for the policy settings to do the same.”

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Farmers, growers, foresters, fishers and primary processors are driving New Zealand’s economic recovery with export revenue on track to surpass NZ$60 billion for the first time New Zealand’s Agriculture and Forestry Minister Todd McClay announced at Fieldays. Source: Timberbiz “The latest Situation and Outlook for Primary Industries (SOPI) report forecasts export earnings of NZ$59.9 billion for the year ending 30 June 2025, NZ$3 billion higher than projected in December. This momentum is expected to continue, with exports reaching $65.7 billion by 2029,” Mr McClay said. “These figures reflect the hard work and resilience of the hard-working men and women of provincial New Zealand. “Strong global demand and healthy prices across key markets are positioning our high-quality, safe and sustainable food and fibre exports for record growth.” Growth highlights include: dairy export revenue lifting 16% to reach a record NZ$27 billion meat and wool export revenue increasing 8% to NZ$12.3 billion horticulture export revenue growing by an impressive 19 per cent reaching NZ$8.5 billion forestry export revenue jumping 9% to NZ$6.3 billion Seafood export revenue lifting 2% to NZ$2.2 billion. “The numbers speak for themselves, but the Government remains laser-focused on doubling the value of exports in 10 years, driving higher farm and forest gate returns, and backing the long-term capability, resilience, and health of rural New Zealand,” Mr McClay said. “We’re investing heavily to deliver tools and technology to farmers and growers to tackle agricultural emissions with more than $400 million in continuing funding over the next four years and making targeted reforms to support farmer and grower success. “Through the Budget, we launched the new $246 million Primary Sector Growth Fund (PSGF) to boost on-farm productivity and resilience. “Our trade work continues at pace to open doors for Kiwi exporters, and our new Investment Boost tax incentive will encourage businesses to invest, be more competitive, grow the economy, and lift wages. “When rural New Zealand does well, the whole country benefits. “That’s why we’re making sure our Primary Sector have the tools and support they need to deliver long-term economic growth and regional prosperity for all New Zealanders.”

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Forestry Australia and the Forest Growers Committee are offering financial support to Australian farmers and small-scale forest growers to attend the Forestry Australia 2025 Conference in Adelaide, SA. Source: Timberbiz Forestry Australia, through the Growers Reserve Fund is offering up to five scholarships valued at up to $1600 each for successful applicants to attend the conference from 20-23 October. In the first instance, the scholarship will be applied to each successful applicant’s 2025 conference registration (conference registration valued at $1025). If there is funding available and the successful applicant will travel over 150 kms to participate in the Conference, the scholarship can be used to offset travel expenses such as flights, transfers, airport parking, with 50% payable on announcement and the balance payable once a final report and proof of conference related expenses has been received. The scholarship will be capped at up to $1,600 per successful applicant. Successful applicants will be required to: Register and attend the 2025 Conference Submit a 250-word post conference report and a photo from the conference that may be published. Eligibility: A current Forestry Australia member (or prepared to become one) Passionate about growing trees and forests in supporting sustainable and healthy communities, farms and rural landscapes. An active and enthusiastic forest grower who owns or manages tree as part of farm or small family-owned operation in Australia. Preference will be given to those applicants who have not received this scholarship to attend previous Forestry Australia conferences or symposiums Apply here. You must attach a 200-word description of your forest growing experience, including what you grow, the products and values you aim to achieve, and an overview of your forest management practices. A short (200-word) explanation of how attending the 2025 Conference will contribute to your forest growth and management, and how these efforts will benefit Australia, the community, or the environment. Applications close 9.00am Monday 4 August 2025.

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Experienced firefighters from Forestry Corporation have deployed to assist with the escalating wildfire emergency in Alberta, Canada. Source: Timberbiz Australian assistance to Canada forms part of an international support effort to help authorities manage severe fire conditions that have threatened communities across the province. A deployment of 54 NSW firefighting specialists has departed Sydney to support Canadian authorities battling more than 200 wildfires across the country, which have already burned over 2.3 million hectares. Forestry Corporation’s Matt Model of Bonny Hills will take up the position of Divisional Supervisor and Joel Dawson from Batemans Bay the position of Safety Officer taking their expertise in bushfire suppression and incident management to the frontlines. Mr Dawson is undertaking his first firefighting deployment to Canada. “I am honoured to have the opportunity to head over and assist the Canadian wild firefighters,” Mr Dawson said. “I look forward to working with other forestry and fire agencies in Alberta and seeing a different forest to what I work in every day.” Mr Model returns to Canada having completed a 42-day firefighting deployment there two years ago. “I’m pretty lucky to be given a second call up to represent Forestry Corporation of NSW and Australia on another firefighting deployment to assist our friends in Canada in what’s shaping up to be another big fire season across the provinces,” he said. “Being deployed in 2023 as an arduous firefighter was a great experience and now being deployed as a Divisional Commander is a big step up into a new experience, but I am excited for the opportunity and experience. “Thank you to all of my friends and family for the support especially Teneale, my partner.” The deployment follows a formal request for assistance through international firefighting agreements and highlights the strong collaboration between Australia and Canada in emergency response. The firefighters will be based in Alberta for four weeks, working in challenging conditions alongside local and international crews. Forestry Corporation continues to support bushfire preparedness and response efforts both at home and abroad, ensuring its fire specialists are ready to assist wherever they are needed most.

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When Shaun Lawlor began working with Department of Conservation, Forests and Lands in 1989 as a seasonal firefighter, little did he know that he would play a crucial role in responding to some of Victoria’s most devastating bushfires. Source: Timberbiz Reflecting on receiving the Australian Fire Service Medal, Mr Lawlor expressed that he is proud of his achievements but also deeply humbled by the recognition. “Firefighting is incredibly satisfying, especially when we achieve positive outcomes for both the community and natural environment” he said. “I have been fortunate during my career to have worked with some wonderful mentors.” “Some of the most competent and capable people who to this day I’m proud to call my friends. “I am incredibly grateful for the opportunities I have received during my career to date and the people I have had the pleasure of meeting and working alongside.” Fresh from graduating from the University of Melbourne with a forest science degree, he was fortunate enough to get his first firefighting job with the Heyfield mobile support crew, one of five such crews across the state. It’s understood that the crews were established in Victoria to mirror the American “hotshot” crews which were employed seasonally to provide additional firefighting capacity during the summer months. “We lived in a forestry camp at Surveyors Creek near the Howitt High Plains and were ready to be deployed to fires anywhere in the state on just 15 minutes’ notice,” Mr Lawlor recalled. “As the name suggests, we were extremely mobile, self-sufficient with our own firefighting equipment, camping gear, food and vehicles. “We were prepared to respond to fires at anytime, anywhere. Even when we did day-to-day work such as hand slashing road verges and building post and rail fences at recreation sites, the camp trailer came with us. “If we got the call we’d just get in the four-wheel drive and get going, no delays.” Mr Lawlor says after a long week on the tools, the crew always looked forward to the trip into Heyfield each Friday afternoon, about a two-hour drive, to stock up on supplies and have a cold drink at the pub. “It was a highlight for us all, but we made sure we were back at camp by 10 am the next day, ready to respond to fires,” he said. Reflecting on his 36-year firefighting career, Mr Lawlor says the past three decades have been a significant period for eastern Victoria with major campaign fires in 1998, 2003, 2006-2007, 2009, 2013 and 2019-2020. “We have witnessed a very high frequency of large-scale, high intensity bushfires across much of the landscape,” he said. “When you look back at the cycle of fires over the past 100 to 150 years, it’s probably been the busiest and most significant period of fire that agencies and communities have had to contend with.” Mr Lawlor says in addition to the large campaign fires, the hundreds of small fires that are rapidly responded to and put out without any fanfare are just as important. “Everyone understands the devastation and destruction that the big fires bring to communities and the environment, that’s why we make every effort to detect and respond to new fires in a way that allows us to keep them as small as possible,” he said. It’s an approach that has seen him successfully lead the development and implementation of the FFMVic’s Model of Response which has been adopted across the state to assist with the timely deployment of resources to bushfires based on risk. This initiative has also resulted in a number of innovations such as mobile and fixed water points in remote forest areas to improve helicopter firebombing efficiency. His significant operational experience has also seen him deployed both interstate and internationally, including Canada and the USA. He was part of the first international deployment of Australian and New Zealand firefighters to the USA in 2000 where he worked as a strike team leader supervising up to 100 firefighters each day, including prison crews. “The US deployment was an incredible experience,” Mr Lawlor said. “The firefighting aspects were familiar but the environment we were working in wasn’t.” “I was terrified of the bears, moose, wolverines, cougars, wolves and prisoners, but somehow made it home in one piece.” With 28 years of experience as an air attack supervisor, Mr Lawlor is one of the most seasoned operators in the state and has witnessed firsthand the devastating effects that uncontrolled bushfires can cause. “Air attack supervisors are responsible for the safe, efficient and effective use of fire-bombing aircraft,” he said “In addition to developing strategies and tasking the firebombing operations, we also gather and provide critical intelligence about the fire to the incident management team. “It’s a privileged position to hold because you can see so much from the air. You can observe what’s happening on the ground in real time, as well as anticipate what might happen next. “You are one of the only people who can see the whole picture, where the people are, and how that combination could come together in a good or bad way depending on the spread of the fire and the success of suppression efforts.” This situation unfolded in real-time on Black Saturday when Mr Lawlor was deployed as the air attack supervisor to the Murrindindi fire just after 3 pm on Saturday, 7 February 2009. The Murrindindi fire tragically resulted in the deaths of 40 people and the destruction of 538 houses, primarily in and around Marysville, Narbethong, and Buxton. “I have very vivid memories of Black Saturday. To this day, I have never seen anything like it before or since,” he recalled. “The power and momentum of the fire was unbelievable. One of the fixed-wing bombers I was working with disappeared into the smoke on his descent to the target. “I thought after what seemed like an eternity that he’d crashed, and I’d lost him. Just as I was preparing to make a mayday call, he emerged from the smoke […]

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Winter, it’s not the favoured season in the forestry calendar, good for planting trees but just plain awful if you’re converting trees into logs. Having said that, June has given us the highest export log prices for the first month of winter since 2021 with prices generally flat from May at around $115/m3 for A grade. This is welcome relief for those on the spot market as there was a general expectation for a reduction with higher foreign exchange and lower in-market sales prices. Longer term fixed price deals now play a large part in the private woodlot sector with a significant number of owners opting for certainty rather than chasing rainbows with monthly spot prices. Longer term pricing mechanisms have also provided some certainty to the harvest contractor base with more consistency around future work programs. The good news is that the in-market log inventories in China have reduced again in May by around 150,000m3 to 3.35Mm3, although uplift from port has also reduced to slightly over 60,000m3/day, down 10,000m3/day from April. There’re no surprises with the reduction in uplift as the Chinese construction sector (or what’s left of it) historically slows during their hot season, however, this will be met with reduced supply from NZ courtesy of our wet season and lower spot pricing. The tariff can is still being kicked down the road and reports are that engagement from China has dwindled in recent weeks. Where this will land is anyone’s guess and it’s hard to see any sort of resolution in the short term. If you look at China with your macro glasses on, there are some interesting stats starting to emerge. China’s trade surplus surged to a record of $US165 billion in the first quarter of 2025, up 350% from $US47 billion for the same period on 2024. Much of this is thought to be due to the growth of e-commerce and tech but it does show the economic powerhouse that China has become when compared to a US trade deficit of $US425.5 billion for the same period. Federated Farmers obviously wanted something to talk about at the Fieldays and launched an attack on forestry with a very misleading ‘Save our Sheep’ campaign. The Fed’s and their broken record have pointed to forestry as the reason that the sheep flock has reduced from 70 million in 1982 to 25 million today. This is some pretty brave logic considering that total exotic forested area is still less than it was in 2002 when sheep numbers had already dropped to 38 million. Maybe, just maybe it’s not economic to farm sheep in some regions anymore and people are destocking and changing their choice of crop as a result? Just a thought, why are beef numbers not dropping, maybe beef is a better value proposition than sheep in those regions? The campaign may not have read the room well and has raised more than a few eyebrows with farmers who understand the importance of forestry and the ETS to their farm cashflow and values. Canterbury farmer, Richard Holloway penned an excellent article which has been published by various media outlets and provides a very balanced farmer view of the issue. Since the government introduced restrictions on land use earlier this year (as a result of the Fed’s lobbying), billions have been wiped off farm values nationwide, especially affecting those in marginal areas and those looking toward succession planning. Let’s be very clear, none of us want to see farm conversions into permanent carbon sinks, however, the new legislation has made it difficult for those wishing to convert to a timber crop and utilizing the ETS as a method of obtaining regular cashflow during the growth cycle. Speaking of which, NZU prices are creeping up slowly and are now at a 2-month high with current spot prices around $56.50/NZU. The next government auction is on the 18th of June, and all eyes will be on whether there is a full, partial or any clearance and the effect this will have on the spot market. Nothing to see in domestic markets, which are generally pretty soft however, with continued and consistent reductions in the OCR and more favourable lending conditions there would be some expectation of a rebound in domestic construction. To add to that, construction costs have eased with the Cordell Construction Cost Index (CCCI) indicating a 0.3% rise in Q1 2025 which is well below the long run quarterly average of 1.0%. So, in summary, it’s getting cold and wet, and prices are average – nothing unexpected for the beginning of winter. Planting has started in most regions and although numbers are down this year it will still be a sizable season which I’m sure Federated Farmers will equate to another 10 million sheep removed from the national flock. Next, they’ll be blaming the invasion of Ukraine on pine trees. Marcus Musson, Forest360 Director.  

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