Australian timber industry news

The cost of harvesting (felling and extraction to roadside) increased by 9% in 2023, according to new statistics from the Swedish Forest Agency and Skogforsk. Costs for regeneration harvests have risen every year since 2017, by 39% in all. The producer price index has in-creased by 41% during the same period. Source: Timberbiz During 2023 harvesting costs (in current prices), on average for the whole country, have in-creased by: 9% to SEK 134 per cubic metre for regeneration harvest. 8%to SEK 269 per cubic metre for thinning. The cost for regeneration harvests increased in both northern and southern Sweden during 2023. The largest increase was in northern Sweden by 12%, while the cost rose by 6% in southern Sweden. The cost of both regeneration harvests and thinning is at its highest level since 1996, the year of origin for these statistics. Since then, the cost of regeneration harvests has in-creased by 48% while thinning has increased by 76%. During the same period the producer price index has risen by 84%. Costs for silvicultural measures including pre-commercial thinning During 2023 most costs for silviculture also increased. The costs for: clear-cut cleaning increased by 4% to SEK 1 840 per hectare scarification has increased by 7% to SEK 3 190 per hectare planting (including plants) has increased by 15% to SEK 7 050 per hectare sowing has decreased by 2% to SEK 5 870 per hectare precommercial thinning has increased by 15% to SEK 3 340 per hectare fertilization and liming has increased by 12% to SEK 3 800 per hectare These statistics are volume weighted or area-weighted and relate to current prices. The survey population is large scale forestry with an ownership of more than 16 000 hectares forest land or an annual felling of more than 50 000 m³. The survey is a collaboration between the Swedish Forest Agency and Skogforsk (The Forestry Research Institute of Sweden) and is included in Sweden’s official statistics.

Timbersource took a look at the forestland of European nations to see who would finish at the ‘top of the tree’ and unfortunately for England, they crashed out to Germany in the round of 16. Source: Timberbiz To work out who would win the tournament, Timbersource gathered data from Worldometre and the individual statistics hubs of each nation and created a table showing the different groups and their respective forest sizes. From this Timbersource analysed the potential draws mapping out the winners, runners-up, and ‘best third-place teams’ to map out the bracket. This year’s ‘group of death’ was group D with big hitters including France, Austria, and Poland. France, while being the second biggest team in terms of forest size, only managed to get third place given the nature of the draw. The bracket and routes to the final were drawn from the official Uefa Euros bracket, then cross-referenced with the forestland data to find the eventual winner Spain. Spain topped the table with more than 18 million hectares of forestland, and this strength helped them to win the tournament but there was one big country missing. While Russia tops the list with more than 800 million hectares due to the current situation in the Ukraine they were banned from participation. Forests are often taken for granted, but these leafy giants silently provide a wealth of benefits to our planet and our lives. From the air we breathe to the wood in our homes, forestry offers a powerful combination of economic, environmental, and social advantages. Some forestry benefits include: Helping to mitigate climate change. Forests remove a significant amount of carbon dioxide from the atmosphere and help to release oxygen into the air. Forests give us resources to make timber that can be used in construction and furniture, musical instruments, and more. Timber can also be used for sporting equipment, which may be used in the Olympics.   First place: Spain Second place: France Third place: Turkey The full dataset used within the research can be found here.

After 13 years as president of TimberPro, Lee Crawford has announced his retirement. This draws to a close Crawford’s nearly 40 years in the forestry machinery business, during which he consistently exemplified entrepreneurial spirit and a caring attitude. Source; Timberbiz Pat Crawford, Lee’s father, was a third-generation logger whose company – Shawano, Wisconsin-based Timbco – had become known for its popular line of levelling machines. But Mr Crawford never planned on entering the forestry industry, becoming an engineer at the Oshkosh Truck Company in 1982. In 1985, however, Mr Crawford’s father asked him to join the family business at Timbco, where he started on the assembly line. “It gives you credibility with your people,” Lee said. “And you learn the products. You learn what needs to be changed.” After his assembly line shifts ended, Lee kept working, ordering parts and writing warranties. He eventually become Vice President in 1992. In 2000, Timbco was sold to Partek, a Komatsu-owned company. The Crawfords bought back the wheeled division from Partek in 2002 to form TimberPro, which later became recognized for its innovative track machine products. TimberPro was acquired by Komatsu in 2019. In retirement, Lee plans to stay involved in charitable work with the Ruth and Pat Crawford Foundation, which has donated millions over the years to community organizations and food pantries. While the TimberPro family is sad to see Lee go, the legacy of the Crawford’s ingenuity and generosity will continue with Komatsu at the helm. “By taking Komatsu’s strengths and combining it with TimberPro’s, we can be a leading supplier. We’re really excited about the future,” said Doug Morris, Vice President, Forest Machine Business Division at Komatsu. Mr Crawford feels safe leaving his companies in Komatsu’s hands. “Komatsu wants TimberPro to grow. Komatsu has the means and ambition to plan and grow our offerings over time,” he says. “My family was comfortable. Komatsu has the drive to get bigger and bigger and bigger. It’s going to be exciting.”

Wellington, New Zealand student Elisa Harley is making strides in conservation with her innovative biodegradable plant pots, thanks to the support of researchers and commercialisation expert sat Scion. Source: Timberbiz Ms Harley, the 17-year-old founder of Enivo Pots, is working to develop pots made from underutilised primary industry waste, aiming to replace the 350 million plastic plant pots used annually in New Zealand. Ms Harley’s journey began at the age of 13 when she became aware of the environmental issues surrounding plastic waste in gardening. Her commitment to finding a solution led her to start Enivo Pots, a company dedicated to producing biodegradable plant pots that can be planted directly into the ground. However, turning this vision into reality required more than just determination; it needed technical support and resources, which she found at Scion. Scion’s involvement with Ms Harley started with Zoom calls with science leaders followed by a half-day visit to Scion in July 2023. In January this year, she visited Scion for three days to begin the first run of prototyping. She trialled different formulations for her pots and tested their performance after hand-moulding printed sheets around glass beakers. Elisa returned to Scion in April – this time using the Benchtop Fibre Former to form the pot shape using a preferred formulation. She worked with a number of researchers including Kelly Wade, Sean Taylor, Karl Molving and PhD student Emma Gobes to produce 115 pots. These will now undergo nursery trials to evaluate their performance in real-life conditions. These trials are essential for understanding how the pots function and for planning the next steps in scaling up production. Ms Harley’s progress has been impressive, and she is currently exploring options for up sizing the pots and increasing production. This involves considering investment requirements and potential sites both within New Zealand and internationally. Throughout this process, Ms Harley has found herself in meetings with commercial lawyers, patent experts, scientists, and commercialisation specialists, gaining valuable insights into the complexities of bringing an innovative product to market. Commercialisation associate Doug Hillyer is supporting Ms Harley as she builds a business case for investment. “We’ve been really encouraging Elisa to think about what success would look like for her, how big she’d like to scale things, and support her to wrap some numbers around it. “With any commercialisation project, there’s a lot to consider when you’re wanting to take an innovative product to market. But Elisa is diligently working through all the steps and taking everything on board. It’s been a pleasure working with her,” he says. Her hard work has already been recognised. Last year she participated in the Lion Foundation Young Enterprise Scheme. An earlier prototype of Enivo Pots won The Todd Foundation Award for third place, the Ministry of Business Innovation and Employment Award, and the Ministry for Primary Industries Award. This led to Ms Harley to being honoured as the 2023 Youth Wellingtonian of the Year. She continues to present her innovative pots at various platforms. In July she will be speaking in Rotorua at the Residues2Revenues conference, an event that highlights emerging opportunities in the forestry sector to transform wood residues into high-value renewable products. Reflecting on her journey, Ms Harley emphasises the invaluable support from Scion. “What people are doing is so impactful, and I am so appreciative of how, by supporting me with their time and expertise, they are investing in my future. The connections I’m making are so valuable.” Scion portfolio leader for Distributed and Circular Manufacturing Marc Gaugler says Ms Harley’s journey is a testament to the power of collaboration. “It’s exciting to see young innovators want to make things happen. She’s identified a real-world waste problem and considered why solutions may have not worked in the past. “She hasn’t been afraid to investigate something again and use a slightly different approach to make it successful. By taking regional feedstocks and creating a specialised product, she’s paving the way for a more sustainable future for New Zealand.”

A 15-storey office tower, with a six-star energy rating, manufactured in Heyfield has won the Australian Institute of Architects 2024 Vic Chapter Awards – Commercial Architecture category. Source: Timberbiz The striking T3 Collingwood building claims the title of Australia’s tallest timber building and includes 10 levels of mass timber columns and beams was proudly designed and prefabricated locally by Australian Sustainable Hardwood (ASH) in Gippsland. Praising the innovative building in state parliament after visiting the site with Australian Forest Products Association’s Richard Hyett, The Nationals, Melina Bath spoke about the importance of wood in our community, paying tribute to the expert engineering and talented workers. “The building is a masterpiece – the structural beams and columns are made from native Ash, and they are magnificent – they look and feel beautiful, you walk up, and want to touch them,” Ms Bath said. “The building is a reminder of the importance of wood in our lives and showcases what can be achieved using a naturally grown sustainable building material. “Appallingly, the building is a one off, a heart-breaking reminder of Labor’s terrible decision shut Victoria’s sustainable native timber industry. “It is one of Labor’s biggest environmental failures to shut down a Victorian hardwood industry when our state is able to engineer and create such magnificent products. “Despite countless studies showing wood construction enriches people’s lives and has a 40% reduction in embodied carbon compared to other construction materials – Labor turned its back on the industry and the thousands of regional jobs it supported. “This inspirational building stores carbon, and it was faster to assemble than conventional concrete and steel construction, with less occupational health and safety incidents.” Ms Bath offered her congratulations to the ASH team in Heyfield for its expertise in manufacturing the hardwood components for the magnificent T3 building. “I am encouraging all my eastern Victoria constituents to visit the building to marvel what is sadly the last of its kind built using Victorian hardwood timber.” The T3 Collingwood building is located at 36 Wellington Street, Collingwood or can be viewed online at https://t3collingwood.com.au/

Forest and Wood Products Australia (FWPA) is seeking to appoint three non-executive directors to its skills-based board at its next Annual General Meeting in November. Source: Timberbiz An independent Director Selection Committee established under the company’s constitution will consider proposals for candidates to be voted in by members. Innovation and collaboration are at the core of FWPA’s mission, and best achieved through diversity of experience and thinking styles. To ensure the board is well balanced, interest is sought from individuals with knowledge and experience in some or all of the following areas: Conservation and management of production forests and/or other natural resources. Forest and wood products manufacturing. Construction industries and how they use wood products in Australia and internationally. Market dynamics and competitive landscape for wood products. Leveraging industry insights to inform strategic decisions to maximise the production and utilisation of forest and wood products. Marketing and promoting forest and wood products including product promotion and retail marketing. Technology, innovation and commercialisation of research and development. Learn more about the non-executive director positions here For any questions contact Richard Evans from Talent Nation, richard@talentnation.com.au Expressions close at 11.59pm on Friday, 5th July 2024.

Questions raised in state parliament on Labor’s plans to establish the Central West National Parks by The Nationals Melina Bath are now months overdue and remain unanswered. Source: Timberbiz Ms Bath who is the Shadow Parliamentary Secretary for Public Land Use sought an update from Labor’s Minister for Environment, Steve Dimopoulos on the status of the Victorian Environmental Assessment Council (VEAC) report that recommended locking up 77,000 hectares of three separate state forests and turning them into national parks. Under parliament’s standing orders Minister Dimopoulos is required to provide an answer to Ms Bath within 30 days however, despite respectful requests and reminders the Minister has flouted parliamentary process. Ms Bath said bush users are undoubtedly concerned about Labor’s lock up and leave agenda for Victorian state forests. “They are also justifiably perturbed about Labor’s secrecy when it comes to its national parks plan, particularly in the case of the Central West Investigation. “VEAC’s recommendations were for the establishment of three new national parks despite 67 per cent of the 2,700 public submissions being against their establishment, it also fast tracked its closure of Victoria’s sustainable native timber industry. “Labor has consistently shown it prioritises green ideological policy to the detriment of our regional and rural communities.” In 2021 Labor accepted VEAC’s recommendations to create three new national parks. “Minister Dimopoulos refusal to provide transparency to the community shows Labor has zero regard for our bush users despite asserting “people have a right to have a say” on the national parks issue,” said Ms Bath. “There’s speculation Labor has already spent $4 million on surveys and assessments to create these new national parks, but the public is being kept in the dark. “Our bush users deserved transparent communication and an honest update on the status of the Labor government’s plans. “Bush users who love the outdoors and access our state forests deserve to know if Allan Government have accepted the VEAC report recommendations and are ignoring their views.”  

Queensland’s Government will dedicate more than 12,000 hectares of land currently declared as state forest as national and conservation park. The process to dedicate the land has begun in State Parliament. Source: Timberbiz The dedication of the various areas of state forest as national park and conservation park aligns with the government’s commitment to transfer 20,000 hectares of state forest to the protected areas estate under the Native Timber Action Plan. This move will bring the total area of state forest added to the protected areas estate under the plan to just over 13,000ha. The land being protected includes: around 843 hectares of Jimna State Forest for dedication as part of the existing Wrattens National Park, supporting several threatened species including the tusked frog, glossy black-cockatoo and koala. around 657 hectares of Peachester State Forest for dedication as part of the existing Glass House Mountains Conservation Park, containing core koala habitat and providing significant ecological and recreational values for the broader community. around 6,462 hectares of Squirrel Creek State Forest for dedication as the new Squirrel Creek National Park, containing endangered and of-concern regional ecosystems and riverine wetlands that provide important habitat for vulnerable species including the plumed frogmouth and black-breasted button-quail. around 479 hectares Bellthorpe State Forest for dedication as part of the existing Bellthorpe National Park, forming part of a bioregional corridor containing important lowland forest ecosystems and including habitat for species of conservation significance including the tusked frog, koala and cascade treefrog. two areas totalling 1,119 hectares of Beerburrum West State Forest for dedication as part of the existing Glass House Mountains National Park, providing connectivity and management benefits for the protected area estate in the Sunshine Coast. It also contains significant conservation values including habitat for species such as the glossy black-cockatoo and tusked frog. around 100 hectares of Deer Reserve State Forest for dedication as part of the existing Deer Reserve Conservation Park, containing significant conservation values including the presence of koala and rib-fruited malletwood. around 212 hectares of Elgin Vale State Forest for dedication as part of the existing Wrattens National Park, containing an of-concern regional ecosystem that will increase protection of habitat suitable for several threatened species including the koala. around 119 hectares of Luttons State Forest for dedication as part of the exiting Glass House Mountains Conservation Park, containing significant conservation values including the Coochin Hills grevillea and habitat for threatened fauna such as the central greater glider and koala. around 576 hectares of Yabba State Forest for dedication as part of the existing Wrattens National Park, supporting several threatened species including the tusked frog, glossy black-cockatoo and koala. around 289 hectares Delaneys Creek State Forest for dedication as the new Delaneys Creek Conservation Park, forming part of a bioregional corridor that contains habitat for unique flora and fauna including the hairy hazelwood and Richmond birdwing butterfly. In addition to this, the following other areas of state forest will be dedicated under the Yurol Ringtail Conservation Project: around 479 hectares of Yurol State Forest for dedication as part of the existing Tewantin National Park, which will enhance the natural ecosystems and deliver conservation and recreational opportunities for the community, including providing habitat for koalas. around 889 hectares of Ringtail State Forest for dedication as part of the existing Tewantin National Park, which will enhance the natural ecosystems and deliver conservation and recreational opportunities for the community, including providing habitat for koalas. “The Miles Labor Government is doing what matters for Queenslanders, protecting and expanding areas of high environmental importance across the state,” Minister for the Environment and the Great Barrier Reef, Leanne Linard said. “Dedicating more than 12,000 hectares of state forest as national and conservation parks reflects our government’s proactive approach to environmental protection. “This includes affording protection to our famous and threatened species, unique cultural heritage, ensuring vital forest resources are managed sustainably, offering unforgettable tourism experiences and providing Queenslanders with their most treasured recreational opportunities. “Our protected are estate is a major contributor to Queensland’s economic prosperity and growing our protected are estate is essential for not just the environment but also the economy.”  

  Tree Breeding Australia in Mount Gambier is set to continue to grow as a leader in Australia’s forestry genetics research with thanks to funding committed by the State Government. Source: Timberbiz The SA Government and Tree Breeding Australia has announced a jointly funded $900,000 nationally significant, purpose-built and dedicated research facility at Kilsby Road, Mount Gambier, that is set to genetically improve plantation trees to increase productivity and protect against biosecurity threats. “TBA manages the national cooperative tree improvement programs for radiata pine (softwood) and blue gum (hardwood) plantations and provides scientific expertise and genetic valuation on crops to ensure our foresters are planting the best genetically blessed trees, which in the long-term increases forestry productivity and the supply of wood-fibre to both domestic and international markets,” Chief Executive Officer of the South Australian Forest Products Association Nathan Paine said. “Growing plantations isn’t just about planting a tree, watering it, and watching it grow – plantation health and resilience is a major priority for the forestry sector and Tree Breeding Australia, and without TBA’s expertise and valuable input to improve tree genetics, our forest and timber industries would be years behind in innovation and adaption. “Over the last two years Forestry Minister Clare Scriven and the South Australian Government have invested significantly into the States forestry sector, particularly through the establishment of a Forestry Centre of Excellence, the development of a Wood Fibre and Timber Industry Master Plan, and now the funding needed to deliver Tree Breeding Australia’s research facility expansion. “Mount Gambier is nationally recognised as a softwood manufacturing hub and is now fast becoming a premier hub of forestry innovation, and we are so pleased to have the Government, industry and stakeholders supporting the future innovation of the forest and timber industries.” TBA board chairperson Dr Andrew Jacobs told The Border Watch the genetic resource was really important moving forward for the resilience and the productivity of industrial plantations present in both Mount Gambier/Berrin and nationally. “This is a centre which caters for members all over the country, not just in the Green Triangle, so it is a really important national investment that has been made here,” Mr Jacobs said. “This piece of infrastructure will go on the ground and enable the staff to better be able to undertake the job and be able to do it in a safer space.” He said staff would be able to collect tissues from the trees, extracting and go about their work all in one facility. “It is a needed piece of infrastructure for the organisation and it is really important for not only the Mount Gambier forestry industry but the Australian industry more broadly,” Mr Jacobs said. “This is a member-based organisation and we have been trying to work out a way of funding a piece of infrastructure for a number of years. “It is very hard to get members to contribute to fund infrastructure so having the South Australian government come out and support us is really important.” He said the project had been in the pipeline for about a decade with members trying to secure grants and other funding streams. “It has been a long process, so I am super grateful for it to get here today. “This will enable us to focus on the genetics that have been deployed into the plantations as so many of the plantations in Australia will experience change in terms of climate conditions. “All of the material which is in here today and the infrastructure that will be built in the not-too-distant future will help us continue to improve the genetics of the plantation trees that are being deployed and this is really important for the resilience and sustainability for the ongoing productivity of timber.”  

An online letter is being circulated by the Australian Forest Contractors Association (AFCA) aimed at sending a message to NSW MPs in support of native timber harvesting. Source: Timberbiz It follows the standing down without notice of 15 operations in NSW on May 27 as a result of rule changes by the NSW EPA. Forestry Corporation NSW stood down 15 operations – 11 operations in the north of the state and four in the south following a NSW Environment Protection Authority order which requires a 25-metre logging exclusion zone around any tree in which a Greater Glider is spotted. Changes have also been made to how nocturnal search and surveys must be conducted, including that a first transect must be undertaken within 30 minutes of sunset to increase the likelihood of seeing gliders leaving their dens. During the past few months AFCA has been engaging Timber NSW in an ongoing campaign to build support for the native timber harvesting industry. In a note to members AFCA general manager Tim Lester says support is again needed to send a loud message to the NSW state government MPs by email. The letter covers the stand downs due to the Southern Greater Glider protocol altered without notice by the EPA. It addresses the lack of payment to contractors and no payment to haulage companies and drivers. Then it addresses the short supply to mills. The theme is they all get paid – MPs, public service, FCNSW and EPA but the industry is left hanging. The system will only require you to click on the link below, fill in your name and address and an email address and press submit. That will then send to all members of parliament in NSW except The Greens. https://timbernsw.tiny.us/GG2024

Metsä Group has funded biodiversity management and restoration projects with a total of 600,000 euros in 2024. This year, 26 new projects were approved for the funding program for nature projects. Source: Timberbiz With this year’s selections, the themes of the projects are increasingly diverse and their geographical coverage is expanding. The themes of the funded projects include, for example, condition of water bodies, restoration of flowing waters, removal of invasive species and predators, pollinator services, management of traditional habitats and restoration of bird wetlands. “In the funding program for nature projects, expert networks focusing on different nature themes have started implementing projects that improve the state of nature regionally. Our goal is to mainstream the operating culture, where Finnish nature is the force that unites us. We invite all companies to participate, regardless of industry,” said Metsä Group’s leading nature expert Timo Lehesvirta. The expansion of the funding base for nature projects was discussed at the beginning of June at an event organized by Metsä Group and the Association for the Management and Protection of Archipelago Nature. The experience and knowledge shared at the event create a basis for the development of a more diverse and stable funding base than before in projects that strengthen the state of nature. “We are a small but active association that promotes and supports nationally set nature goals through voluntary activities. We welcome the fact that the private sector is getting involved in financing the well-being of Finnish nature,” said Tommy Arfman from the Association for the Management and Protection of the Archipelago Nature. “Metsä Group’s funding channel is an example and a welcome opening for the environmental work of the private and public sector to play towards the same goal. The expansion of the funding base in the direction of companies is a welcome message. There is potential in the projects selected now. Personally, I especially like the nature initiatives from schools,” said Pekka Pesonen, head of the office of the Ministry of Agriculture and Forestry and chairman of the expert council. Metsä Group has set the goal of strengthening the state of nature in its operations by 2030. In order to achieve the goal, action programs for regenerative forestry and land use are implemented, recognizing the nature effects of the company’s own operations. The funding program for nature projects is the company’s free additional contribution to support Finland’s national nature goals. A total of 67 different projects have been financed within the framework of the program since 2022. An independent panel of experts from organizations in the natural resources sector participates in the evaluation of the projects.

The EU’s Deforestation Regulation (EUDR) is set to go into effect on 30 December 2024. EUDR aims to prevent and mitigate the impact of deforestation and forest degradation associated with certain commodities placed on the EU market. Source: Timberbiz Since wood is one of the targeted commodities, all forest products companies exporting to the EU will be required to prove that the goods’ production did not contribute to the deforestation of primary forests. The US pulp, paper, pellet, and solid wood industries collectively contribute billions of dollars annually to the EU economy. The pulp and paper industry contributes approximately $2.4 billion, pellet manufacturers roughly $1.5 billion, and the solid wood industry roughly $500-800 million. Non-compliance with EUDR will jeopardize significant portions of these revenues, affecting individual companies and broader economic landscapes. Many companies are concerned about their ability to meet compliance requirements. ResourceWise CEO Pete Stewart stated, “Population growth and climate change call for bans on single-use plastics, and incentives for renewable energy and carbon storage are increasing pressure on global wood supply. Consumer brands using paper packaging are more aware that their purchasing practices may be leading to deforestation. In response, calls for wider forest supply chain transparency are growing, and EUDR is acting as an accelerant. Its implications are top of mind for anyone exporting affected products to Europe.” Commodity markets intelligence consultancy ResourceWise is holding a webinar hosted by Mat Stone, an EU regulations expert. He will discuss topics such as: The global implications of EUDR for the wood products industry Key timelines and implementation Challenges and strategic adjustments needed for forest products exporters and buyers The value of supply chain transparency and traceability ResourceWise is working with industry leaders, third-party partners, and EU representatives to build a technology tool to help assist the EUDR’s objectives in preserving our valuable resources.

The summer General Assembly of EOS, the European Organisation of the Sawmill Industry, took place in Helsinki on 12-13 June 2024, hosted by the EOS Finnish member the Finnish Sawmills Association, Sahateollisuus. Source: Timberbiz The Finnish Minister of agriculture and forestry, Sari Essayah, took part in the meeting and shared her thoughts about forest related policy at the EU level during the next five-year term. She also emphasized the key role of sawn wood products in responding to global challenges, including climate change and sustainable economic growth. The Assembly noted the recent launch of the European woodworking and sawmill industries manifesto for the political term 2024-29. The manifesto identifies eight key actions that need to be taken by decision makers to deliver a green, cost efficient, competitive and resilient EU economy. In a lively discussion EOS members noted important topics such as the entry into application of the “Deforestation Regulation” reiterating their concerns regarding the insurmountable difficulties and bureaucracy that SMEs will actually have to face. It was also stressed that the missing implementing act on the country benchmarking could lead to unfortunate and regrettable consequences: ie considering that all countries have been assigned a standard level of risk on 29 June 2023, the efforts made by companies to comply with the obligations of the EUDR with regard to the countries that will be classified as “low risk” will be essentially pointless in the end, resulting in a disproportionate and unnecessary burden for operators and traders . The latest edition of the EOS Annual Report – 2023/2024 – was also presented during the General Assembly and it can be downloaded on the EOS website at: https://eos-oes.eu/annual-reports/ The report provides the usual overview of European sawnwood markets, building on fresh data shared by the Member Countries of EOS. It also has exhaustive chapters on forests and the availability of raw materials for the European sawmill industry as well as an analysis of overseas markets of interest to the European sawmill industry, including North America and China. An extensive chapter on construction markets with a section also on statistics of wood as a building material will also help readers understand what the future holds for the European sawmill industry. While the long-term prospects of the industry look bright on the demand side, the short- term picture is not too rosy. Production and consumption of sawnwood have been declining since H2 2022 due to the challenging economy and geopolitical tensions. Costs for sawmills are high amid rising raw material prices, increasing labour costs (while also facing labour shortages) and high energy prices. In addition, the report noted that inflation rates have been declining over the last few months, but they remain high. Most sawnwood produced in Europe is used in European construction markets so as long as European construction markets are subdued, it is difficult to imagine a turnaround. Construction markets are weak also in important export markets for the sawmill industry such as China and Japan. The United States was a partial exception in 2023 and increasing sawnwood deliveries to the States have helped some European sawmills navigate this challenging environment. Trust in the long-term prospects of the industry remains high, which is proven by many companies adding production capacities over the last couple of years. However, the precondition for a successful sawmill industry remains access to sustainably managed raw materials. In this regard, policies passed in Brussels will play an increasingly important role over the next few years. The Report is also the “go-to” source to understand the European policies of interest to the European sawmill industry as well as the advocacy and promotion activities carried out by EOS over the last year. The Assembly also noted the intention to revise the EU Bioeconomy Strategy by the end of 2025. As with the earlier revision this is both an opportunity and a threat to the sawmill industry. An opportunity if policy makers will rightly recognise that construction timber is at the heart of the bioeconomy offering the possibility of storing yet more carbon and of substituting for carbon intensive alternatives (hence it also needs to be at the heart of the circular economy which is perfectly possible given timber is a renewable, recyclable, and reusable sustainable material). But a threat if it fails to do so. In addition to the revision of the Strategy the bioeconomy will feature in several initiatives that EOS will need to engage with, using as its guide the recently produced document ‘Biomanufacturing, the circular economy and the European woodworking and sawmill industries’. The General Assembly meeting was followed by a very interesting visit to a Koskisen sawmill plant and to a study tour on “Biodiversity and harvesting” kindly offered by Versowood.  

New Zealand forestry companies could face a rate hike to cover legal costs as well as a “pay as you go” levy to cover road damage, under a Gisborne District Council proposal. Source: Local Democracy Reporting, Gisborne Herald While committing to investigate these funding options from forestry to help cover sector-related costs, the council has also adopted a higher roading-targeted differential of 13.75, up from 12.5, and a new woody debris-targeted rate. Mayor Rehette Stoltz said during deliberations for the three-year plan: “Part of our job is to investigate whether we are doing our jobs in the best possible way. “Are our rate systems fit for purpose? “At this stage, if we prosecute a company, we do not cover our costs with the small amount under the law that they are allowed to be fined,” she said. Council chief executive Nedine Thatcher Swann said for every NZ$1 million spent on legal and investigation fees, “you may get NZ$250,000 back”. If the Resource Management Act changed, the additional targeted rate for court and prosecution costs might not proceed, she said. If there were changes, Thatcher Swan said fines from successful prosecutions might cover council costs. The council will also investigate introducing a forestry levy for road repairs. For forestry companies, this would more likely align the charges for road damage with when they received revenue, compared with the targeted rate based on property values. “A forestry levy would be a ‘pay as you go’ or ‘user pay’ principle,” a council staff report said. According to the report, the council’s current rating model was based on “rates are a tax”. “[While] industries damaging the roads are paying, individual ratepayers are not paying for specific damage they cause,” said the report. Deputy Mayor Josh Wharehinga said: “Our community expects us to investigate ways to make forestry pay. “I’m happy for us to investigate these potential new targeted rates to recover legal and prosecution costs for forestry damage. “The ratepayer has had to carry the burden between the difference of the legal costs, and the fine that we get back. “This is not saying we are going to make a decision right now. This says to our community we are going to investigate this.” Councillor Debbie Gregory wanted to know the impact rate options would have on the region. “At this stage, our economy depends on the forestry industry. This feels like a knee-jerk reaction to the weather,” she said. Chief financial officer Pauline Foreman said the changes wouldn’t be implemented until the 2025/26 year. “It would be within the annual plan of year two.” Before the council made the final decision, they would be given modelling to see the overall impact, she said. There were only two options to create a forestry levy, Ms Foreman said – to create a bylaw, or an Act of Parliament if it was an order of council. “The bylaw is more problematic because you have to capture every truck that occurs in that area – you can’t differentiate one from another,” she said. The report said: “Forestry would not be able to be singled out; all heavy users would need to be factored into fees and charges. “A change in legislation to have a localised solution is the most transparent way of raising a levy in the future.” The report said the previous Government had said there would be no new localised funding legislation, however, the new central Government had “signalled a willingness to look at new funding options”. A new targeted rate for woody debris removal has been set at 70% for the forestry industry, as research has shown that exotic pine makes up between 69% to 86% of woody debris found in the Uawa and Waimatā catchments. Pastoral farms will cover 15%, and the other 15% will be a public good component collected from the community. The council aims to adopt its three-year plan, based on recommendations from Tuesday’s deliberations, on 27 June.  

Annual service charges paid by forest owners with trees in the Emissions Trading Scheme (ETS) will be cancelled for the 2023 – 24 year. New Zealand Forestry Minister Hon Todd McClay announced the ETS change while outlining the Government’s vision to grow forestry as part of his address to the Fieldays Forestry Hub. Source: Timberbiz Minister McClay said the government wanted to rebuild confidence in forestry, noting that the charges imposed on growers for administering the ETS felt excessive, with insufficient transparency around them. The introduction of a series of initiatives supporting forestry and wood processing’s growth was also announced by the Minister during his address, including four key priorities to drive more positive outcomes across the supply chain. These included encouragement of economic growth through forestry and wood processing jobs and exports, delivering low emission solutions and products, supporting land use resilience, adaptation, biodiversity and social benefits; and providing carbon removals to support climate goals. New Zealand Forest Owners Association chief executive Dr Elizabeth Heeg welcomed the news removing the ETS charge and supported a more collaborative relationship with the Government to grow forestry in New Zealand. “We look forward to working with officials to ensure that the setting of ETS charges is done with transparency, efficiency and reasonableness,” Elizabeth said. “It has been a challenging time for forest owners. The encouragement from government to add more value domestically and address the climate crisis will go a long way in helping the sector grow revenue and jobs for New Zealand. “New Zealand’s forests – plantation, native or otherwise – are the only tangible means we have at present for mitigating climate change and meeting our 2050 emissions target. “Amendment to the administrative costs forest owners face for forests entered into the ETS will ensure forestry continues to be part of the solution to reducing our nation’s emissions. “We agree with the Government that transparency and collaboration is key and we look forward to helping them deliver their priorities.” The Forest Industry Engineering Association (FIEA) also backed the move. “With our sector delivering the most carbon-friendly set of exports and benefits to land use all while reducing New Zealand’s carbon emissions compared to other materials, it’s great to see Government showing it wants to grow the sector. Everything we do for industry aligns with the intent of today’s vision from the Minister,” FIEA events director John Stulen said. Government’s vision to grow the forestry sector aligns well with FIEA’s events: Spurring economic growth through jobs and exports; (ForestTECH) Delivering low emission solutions and products; (Wood Residues) Supporting land use resilience, adaptation, biodiversity & social benefits; (Wood Residues and Environmental Forestry) and Providing carbon removals to support climate goals. (Carbon Forestry) Annual service charges paid by forest owners with trees in the Emissions Trading Scheme (ETS) will be cancelled for the 2023 – 24 year. Ekos a New Zealand company that works with environmental financing also welcomed the statement by Forestry Minister McClay. “This is a good day for native forests. By removing this crazy service fee on native forests in the NZETS we can now restore more habitat with carbon funding,” Ekos CEO Sean Weaver said. Ekos specialises in using carbon credit revenues to pay for restorative forestry projects. In this way it can finance forest conservation without needing government grants or philanthropy. Ekos forest restoration projects have been hampered in recent years by changing government policy and a new service fee imposed in 2023. “I could never understand why the government encouraged native plantings one minute and the next minute would financially penalise native projects and make them harder to get off the ground”, Weaver said. “Native reforestation projects are financially difficult enough as it is because native trees tend to grow quite slowly. But this service fee – we called it the ‘MPI Bull**** Tax’ in our spreadsheets – just made everything much worse and stopped many of our projects from being financially possible.”  

AFCA will hold industry transition information sessions for its Victorian members, the following events will be held on Thursday 20 June. Source: Timberbiz Information sessions in Bairnsdale for businesses impacted by the closure of native timber harvesting and who are weighing up their options A general member meeting in Traralgon followed by a casual dinner. In Bairnsdale there will be two information sessions for businesses who have been impacted by the decision to close native timber harvesting and weighing up their next steps. Businesses needing information about transition pathways and support programs should attend. Staff from Forestworks and DEECA will be on hand to answer questions. Session 1 – 10-11.30am, Session 2 – 1.30-3pm Centre Room, Club Eastwood, 117 Great Alpine Road, Bairnsdale VIC 3875 A general member meeting will be held in Traralgon, and it will be an opportunity for discussion about AFCA activities and priorities. DEECA and Forestworks will not be at this meeting. Meeting 5.30-6.30pm, followed by a casual dinner (own expense), venue to be confirmed. To confirm attendance at either event please email tim@afca.asn.au

Recently multiple publications have claimed VicForests did not conduct night surveys. This is demonstrably false according to VicForests. VicForests undertook surveys both at night and during the day given the differing needs of the array of species that make up the valuable biodiversity of our forests. Source: Timberbiz VicForests staff accumulated 1000s of hours conducting night surveys. Since 2017 VicForests staff and contractors have been responsible for: 1930 night surveys, including 1344 spotlight transect surveys 2219 surveys using remote cameras that detect animals day and night. These are deployed in the forest for a set period, sometimes as long as a month and sometimes on a repeat basis. These surveys resulted in over 27,000 species detections being made. VicForests uploaded all survey results to the publicly available Victorian Biodiversity Atlas (the VBA). VicForests is a major contributor to the VBA, which provides vital information about species location and habitats. VicForests surveys were performed in accordance with recognised survey standards, usually those developed and issued by the Department of Energy, Environment and Climate Action and its predecessors. We reiterate that false claims do harm. This includes the impact on the mental health and wellbeing of people who have dedicated themselves to the management of forests for future generations.

The latest data from the United States Department of Agriculture shows stellar growth in the export of American red oak lumber to Australia in the first quarter of 2024. Source: Timberbiz Compared with the same period in 2023 there has been a value increase of 1687% to over US$4 million in this species alone, a volume increase of 1531% to nearly 4,000 cubic metres. The ever-popular American white oak also experienced growth of 52% in value and 64% in volume in this period, but this is the first time that its share has been overtaken by its close relative. “We have been promoting the benefits of American red oak in Australia for the last few years,” Roderick Wiles from the American Hardwood Export Council said. “It shares many of the characteristics of American white oak and is readily available and a cost-effective choice, so I am not surprised that it’s taken hold in the Australian market. We always encourage specifiers to look to use what the forest provides; too much focus on the best grades of a few popular hardwood species increases pressure on one part of the resource and encourages waste. “There are over 22 commercial species in the US forest and red oak is the most abundant, accounting for 18% of the hardwood growing stock. Some of Australia’s importers have recognised and seized the opportunity to encourage buyers to consider red oak.”

The use of prefab and modular construction can help to improve the capacity issues the industry is currently facing according to HIA Managing Director, Jocelyn Martin. Source: Timberbiz Ms Martin was speaking at a government roundtable designed to consider the barriers and opportunities for prefab housing hosted by Minister Ed Husic in Melbourne. Participants at the roundtable recognised that there were still a number of barriers preventing prefab and modular construction reaching its potential. “Addressing gaps in the National Construction Code is critical, as is a clearer understanding of the chain of custody in the manufacturing and building process, financing and business models and insurance,” Ms Martin said. “A better understanding of terminology is also needed. There are many options for construction from modular floor and wall panels through to fully completed homes. “Often people see prefab and modular as being an inferior housing option, but there are a range of builders doing some beautiful work, producing amazing homes. In addition, the use of moduar components has the potential to improve energy efficiency and apply innovative manufacturing techniques.” Participants at the roundtable committed to investigate improvements to contractual terms and financing models and to address the shortcomings of the Code as quickly as possible.

Timber Queensland is warning of a looming building materials crisis due to a lack of policy and budget measures for increasing future timber supply to help meet the state’s rising housing demand. Source: Timberbiz “While we support the critical need to accelerate housing and building projects for a growing population, the 2024-25 budget is weak when it comes to supporting essential supply chains such as timber for meeting the future construction of houses,” said Timber Queensland CEO Mick Stephens. “Up to 90% of homes in Queensland rely on local plantation softwood for timber framing and Queensland native hardwood and cypress is used extensively for structural beams and posts, flooring, cladding and decking products as well as for furniture and cabinetry. “With high forecast housing demand, the state budget does not address longer term measures to expand investment in farm forestry and new plantations for future timber supply while the government is dragging its feet on securing future hardwood supply from state-owned and private native forests. “Back in 2019 the Queensland Government committed to a Native Timber Action Plan to secure jobs and a long-term future for the hardwood industry. It’s now 2024 and we have no action other than one line in the budget papers to implement the plan with no funding commitments. “Lack of action on the plan is putting in jeopardy an ability to guarantee essential building materials from a $700 million hardwood industry supporting 6000 jobs across the state. “Over $140 million in new mill investment is stalled as hardwood supply contracts from state forests expire at the end of 2024.” Key measures to increase future hardwood supply we have recommended to Government include: implement new 20-year hardwood supply contracts from existing state forests and other crown land for processors as soon as possible. provide certainty for native forest owners to manage and invest in the responsible management of their forests by providing a long-term right to harvest, in accordance with the appropriate code of practice or management plan, to remove sovereign risk; and provide greater support for private forestry education and extension services so that farmers and landowners, including traditional owners, can implement best forest management practices to increase timber yields, profitability and related environmental benefits. “Recent research has found that state forests in South and Central Queensland generate better long-term environmental and social outcomes compared to if they were managed as national parks, with sustainable timber production an important benefit,” Mr Stephens said.