Forest Products Industry

The Tairāwhiti Forestry Action Group (TFAG) in New Zealand met for the fifth time last week and members had one of their most important conversations yet. TFAG was created in August 2024 by Forestry Minister Todd McClay to accelerate the woody debris clean-up in Tairāwhiti after Gabrielle and look at ways to mitigate future risk. Source: Timberbiz Members include representatives of Gisborne District Council (GDC), forestry contractors, farmers, iwi and Eastland Wood Council, represented by chair Julian Kohn. Mr Kohn said some of the conversation last week was whether TFAG should contribute financially to the harvesting cost of forestry companies, who have pine trees on land that’s been classed as 3B Overlay by GDC (steep erosion-prone land that has a connection to a waterway). The intention is these areas have a land use change away from forestry to permanent native tree cover, or a mixture of exotics and natives. But until then, some of this steep hill country land is already covered in pine trees that should be harvested. There are increased costs of getting the wood out of these areas as it takes crews longer to extract the trees and they must be more careful. “TFAG helping to get these trees down is something to seriously consider.” Mr Kohn said the idea was posed to see if there was an appetite for TFAG to work with forest companies who have upcoming harvests on areas marked as 3B Overlay (provided there were no existing enforcement orders in place). “The issue is that harvesting these 3B areas, would create a bit more slash and sediment for a period of time. “And if the forestry company thinks they will get penalised for it by Council under resource consent conditions, then the forest company could decide to walk away and not harvest the pine trees. “Those pine trees would then be there until we got another Bola or Gabrielle. One day some of those trees would fall, and they would clog the waterways. “This is a situation nobody wants. “If we want to see land use change and improve vegetation on the whenua then it makes sense to get rid of those trees where we don’t want them now, while we’ve got the roads in there and the contractors.” Kohn said aerial mapping of the region had been completed with the imagery of “exceptional quality”. “Ultimately these images will be available to the public, however right now GDC is processing the raw data so it can be analysed.” From there TFAG would be able to zoom in on the images and have the detail to identify where the woody debris, trees and logs in the waterways are, as well as other areas seen as risky, and then the work would be prioritised, along with discussions with landowners. Logic Forest Solutions has been appointed as the Operation Manager to carry out the woody debris removal work led by Bill Wheeler and Ben Williams. Mr Kohn said part of the kaupapa from Minister McClay for TFAG was they get inside the forest gate, work with the managers of the forestry companies when the time comes and get upstream to have a look. “There’s no point cleaning up the bottom of the stream if the top has more wood and sediment to come down in the next extreme weather event.”  

The National Heavy Vehicle Regulator (NHVR) has published a new draft Code of Practice, to assist industry to improve safety outcomes in the transport of logs from forest to mill or port. Source: Timberbiz The new Log Haulage Industry Code of Practice (LHC) provides guidance for businesses involved at every level of the forest log haulage task. Acting Chief Safety and Productivity Officer Paul Sariban said the draft LHC was developed in collaboration with the Australian Forest Products Association and the Australian Forest Contractor’s Association, along with industry representatives and stakeholders who contributed their resources, experience and expertise. “The LHC is a practical guide of interest to anybody who conducts business in the forestry sector. It supports parties in the Chain of Responsibility to understand and meet their primary duty and other obligations under the Heavy Vehicle National Law (HVNL),” Mr Sariban said. “Consulting with industry associations and stakeholders in the creation of the new LHC was key in allowing us to properly understand how the industry’s operations are conducted, identify any hazards and document or develop effective control measures to eliminate the risks they may cause.” The new Code will be available for public feedback for the next 8 weeks. All feedback received from any stakeholder within the logging sector will be considered by the NHVR as part of the assessment process to determine whether the Code is suitable for registration. Mr Sariban said the new LHC was relevant to anyone who or whose business: owns a forestry area where logs are harvested harvests or stockpiles logs for transport loads, operates or contracts heavy vehicles to transport logs or manages a facility such as a mill where logs are delivered.   “The code also assists businesses to assess training needs for drivers and other workers,” he said. “Like all heavy vehicle drivers, drivers of log haulage vehicles must comply with numerous obligations under the HVNL, including loading requirements, mass and dimension requirements, and fatigue management. “Additionally, log haulage drivers confront particular challenges operating off-road or on primitive dirt roads, in all weather and with vehicles loaded near to their maximum capacity. High-quality on-going training must be provided to ensure that drivers are sufficiently skilled to carry out these operations safely and efficiently.” However, Mr Sariban made the point that businesses cannot “pass the buck” to drivers when things go wrong but must have in place robust systems that ensure safety. “The HVNL makes it clear that the Primary Duty is shared by all the parties who have a role in the transport task, acknowledging the opportunities that different parties have to eliminate or reduce risks to public safety from the use of heavy vehicles,” Mr Sariban said. “For example, forestry managers can reduce driving hazards through road design, signage and traffic control, while loaders can improve vehicle stability by careful selection and placement of logs.” Heavy vehicles and equipment used for hauling were also often exposed to rough and uneven ground, and to damage caused by the heavy equipment used for loading and unloading. “The environments these heavy vehicles are subjected to can damage vehicle components, so the new LHC provides in-depth guidance and control measures, so that all parties in the supply chain can work together to minimise damage to vehicles, and to identify and address vehicles and loads that may pose risks to public safety,” Mr Sariban said. The LHC outlines the range of transport activities that are involved when logs are transported from the forest. It identifies some hazards and effective measures to control them that can be implemented within each of those activities. Some of those measures relate to equipment or training or procedures, but in preparing the LHC, it became apparent that many of the hazards can only be effectively managed when businesses share information and cooperate. “I would like to extend my thanks to the forestry and haulage industry members and other parties who have given their time to helping to improve the log haulage transport task for all road users,” Mr Sariban said. “By collectively embracing a safety-first approach, we can protect lives and infrastructure and maintain a productive industry.” Industry can access the draft Log Haulage Industry Code of Practice. The Code is open for feedback for the next eight weeks. Feedback should be provided using the feedback form on the Log Haulage Code Consultation page and submitted to codes@nhvr.gov.au

Private Forests Tasmania is inviting all stakeholders and community members to contribute their valuable feedback on its newly drafted 2026-2028 strategic plan. Source: Timberbiz Following extensive engagement with stakeholders across Tasmania, CEO Elizabeth Pietrzykowski said the plan had been endorsed by PFT’s Board of Directors, marking a crucial milestone in PFT’s commitment to sustainable forest management into the future. “Your feedback is instrumental in ensuring that PFT’s strategic plan reflects the diverse perspectives and priorities within the Tasmanian private forestry, including farm forestry, sector,” she said. “Whether you are involved in plantation forestry, actively manage your native forests, farm forestry, industry, or simply passionate about Tasmania’s natural environment, we encourage you to review the plan and share your thoughts. “Input will help PFT refine its projects and shape a future where Tasmania’s forests thrive sustainably, benefiting both our community, economy and environment. “Thank you for your continued support and engagement in this important process.” To participate, please email your feedback to admin@pft.tas.gov.au before 5pm on Friday, 14 March 2025.

Forest & Wood Communities Australia is calling on the New South Wales Government to postpone any decision on the proposed Great Koala National Park until reliable and accurate data on koala populations can be verified. Source: Timberbiz According to Executive Officer Steve Dobbyns, a veteran forest scientist, the Department of Climate Change, Energy, the Environment and Water has managed to let down both the Premier Mr Minns and communities across the State by grossly exaggerating the number of koalas within some “koala hubs” by using a count of scats (koala poo) found during surveys, instead of actual koalas. “A look under the hood at the data shows that numerous koala sightings within the koala hubs have impossibly high numbers of koalas, literally hundreds of koalas recorded at a single site, because the Department has not vetted the data,” said Mr Dobbyns. “That is the quality of maths and science being used by the Department to provide advice to the Minn’s Government about which areas of the proposed Great 1414 National Park are important to koalas.” While the NSW Government described koala hubs as “areas where there is strong evidence of multi-generational, high-density populations” of koalas, FWCA notes there is no published, peer-reviewed research to support these claims. FWCA has also identified multiple data entries of the same koala sighting and questioned how the Department could determine if some of the koala hubs had “strong evidence of multi-generational” koala populations. “Despite koala sightings across the landscape dating back almost a century, the only records of koalas in some of the hubs were from the same point in time. There is no evidence of multi-generational use,” said Mr Dobbyns. “With more than 8900 jobs and $2.9 billion injected into our economy each year from our sustainable native forest industry in NSW, it is critical for our State’s future prosperity that the Minns Government makes its decision on the Great Koala National Park based on credible, up to date information.”

Master Builders Australia has launched its Federal Election campaign, putting all parties and independents on notice to stop the talk and deliver real action to end the housing crisis. Source: Timberbiz The campaign, More Homes For Aussies, is focused on the key areas that will ensure there is enough housing supply and supporting infrastructure right across the housing spectrum: social and affordable housing, private rentals and owner-occupiers. The housing crisis is the number one specific election issue that voters expect to be solved this election. As well as investment in more housing supply, we need to see more action on reducing supply barriers. Independent research by Insightfully found 1 in 4 say housing is the most important issue for them and 7 in 10 Australians say the Federal Government has not done enough. Master Builders’ election platform lays out a clear guide on federal policies that will alleviate the housing crisis and warns against policies that will make it worse. With more than 445,000 building and construction businesses, representing 1.35 million workers, the industry is ready to get shovels in the ground. What the industry needs More skilled people to get the job done A migration system that works Greater focus on critical infrastructure A strong, growing economy Concrete action to ensure there’s enough social, community, rental and owner-occupier housing New laws to prevent and combat illegality within construction unions Workplace laws that work for small business Keeping workplaces safe Building roads, rail, hospitals and schools to support growing communities More resources to enforce existing laws to get rid of bad players in the industry A tax system that supports innovation, investment and productivity for businesses Investing in future building technologies and sustainability   What the industry doesn’t need Changes to negative gearing and capital gains tax that reduces the number of new homes built and drives up rent Anti-business industrial relations laws that strangle businesses and increase costs Building regulation laws that ignore practical impacts and have inadequate implementation timeframes A narrow focus on TAFE at the exclusion of industry-led Registered Training Organisations Increase red tape small and family businesses Payment models that don’t work in practice   “We know a lack of supply is causing the housing crisis. While it’s been decades in the making, Australians rightfully expect it to be solved today,” Master Builders Australia CEO Denita Wawn said. “What kind of Australia are we building if we can’t even provide adequate housing options for people now? “The building and construction industry is central to ensure there’s more homes for Aussies but until political parties step up and put their words into action we will continue to be hamstrung.” Ms Wawn said builders and tradies were frustrated. “We can’t keep tinkering at the edges, focusing on demand levers that do nothing to solve the problem, and dragging our feet on delivering existing supply constraint commitments,” she said. “We need action on the ground now.” “Policies must be supply focused by bringing down construction costs, boosting productivity and ensuring land is shovel ready. “Housing is not a political football to be passed around from local, state and federal governments. It requires a coordinated approach with the Federal Government leading the way. “Seventy per cent of Australians believe the Federal Government is the most responsible to solve the housing crisis and the industry agrees. “Master Builders will not shy away from campaigning on policy ideas that will make the housing crisis worse and hold industry back.” The campaign will run across digital and traditional media platforms which includes but not limited to: social, radio, podcasts, gaming, print, robocalls, and online news. Based on extensive electorate analysis through MBA DataHouse, Master Builders has identified 40 target seats across the country which are made up of a mix of seats with a high share of building and construction businesses and tradies (10%+ of voters), renters and those under mortgage stress. Each week Master Builders will release a scorecard on how major parties are performing against the housing solutions checklist and we will ensure communities and industry are aware of any major developments. Some of MBA’s target seats: NSW: Gilmore, Patterson, Parramatta, Reid, Fowler QLD: Ryan, Brisbane, Leichhardt WA: Curtin, Tangney, Bullwinkel, Pearce VIC: Chisholm, McEwan, Dunkley, Aston, Kooyong NT: Lingiari, Solomon SA: Sturt, Boothby TAS: Lyons, Braddon

Log prices during January and February have remained stable across both export and domestic segments which has been good for all involved across the forestry supply Chain. As reported last month, there are signs of weakness in both China and India with supply to both destinations well exceeding demand. Consumption levels are expected pick up in both with the expectation being some current downward price pressure risk will be averted if it does. Uncertainty prevails across all international spheres of business I am hearing about. with all eyes watching the Trump mania and just how this will all play out. The illustrious Donald might have been best to study Newtons Laws of Motion. In simple terms, had he done so he would know for every action (force) there is always an opposite an equal reaction (force). Thus, as I mentioned last month, trade is demand and supply. Whatever force may be exerted on one, the equal and opposite reaction will be continuance done differently. Erstwhile of course it will be US consumers who will pay to ensure the forces are equalised China remains flat as all this plays out and the resulting nervousness about exports to the US dominates. Daily consumption is weak at around 10,000 m3 as at mid-February which in part reflects workers quietly returning from their homelands after CNY. Usage will need to climb quickly through 50,000 m3 per day and inventory will need to stay below 4mil m3 to retain any level of confidence. Inventory is currently sitting at 3.9million. On a brighter side, deliveries from NZ were below expectation in first half of February at 17 and that is helping retain some levels of confidence. For the moment, the market indicator A grade is sitting at CFRUS$118 per cubic metre and no one is suggesting movement either way until the usage v supply number starts to reveal its true colours. In India, A grade has fallen from CFRUS$145 to $125 per m3 over the last 4 months although most commentary is suggesting buyers are not lining up to issue LC’s even at the new levels. Some bonded cargos are being offered at US$115 with some of the stock now very old and the market attempting to use that as leverage. Daily usage numbers are weak, but all expect this to increase in the next few weeks. Some India sawmill owners use bonded cargos as a mechanism to defer duty and GST payments so some of the 103,000 m3 currently sitting in bond is not distressed cargo. Quite working out which is which would be more difficult than trying to work out what is going on inside the US Presidents head. NZ’s log trade to India is somewhat impacted by a long-standing tariff applied to NZ logs, effectively eroding US$7 per m3 off the value. This is giving Australia the leading edge on supply, despite the fact Australia logs are much smaller and of poorer quality. For India right now, price is more important than quality, but this only highlights the need for NZ Trade Minister Todd McClay to get in there, do some chest beating, and get the tariff removed. In broad summary, there were 36 shipments of logs to China in January when the demand was for 6, and there were 7 shipments to India when the demand was for about 4. Both of course are very much skewed by the market being on holiday in the latter part of January. Of the next three months the current indicators are for stable pricing in the market as long as usage does pick up. Shipping costs are showing a definite tick up but some commentary suggests weakness in world trade until the current tariff battles are sorted, so I predict the current run will be short lived. A quick ring around some domestic customers suggests a small but important lift in sales enquiries in January with some apparent small increase in new house starts. Cautionary tones continue to dominate with some mills still building stock in some grades. Domestic sawmill lumber exports have also been benefiting from a lower NZ dollar exchange rate albeit prices in the market are also very weak. As always, please remember the thoroughly important message, “despite the challenges, it remains, as always, fundamentally important, the only way forward for climate, country and the planet, is to get out there and plant more trees”. Laurie Forestry is a leading Australasian forestry company that provides consultancy, management and marketing services to forest owners, farmers, sawmills and manufacturers.