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ForestWorks has appointed Michael Radda as incoming Chief Executive Officer effective 1 July 2024. Source: Timberbiz Mr Radda brings a wealth of experience and a proven track record of success as a senior executive in the commercial furniture sector. Most recently with Miller Knoll as Vice President North Asia and Pacific, his experience and focus on strategic planning, financial management and team development – together with his previous roles in the not-for-profit sector – make him the ideal choice for this role. Mr Radda is also the current Co-Chair of First Super and Chair of Super Benefits Administration. His appointment as CEO is strategically important for ForestWorks as the organisation continues its growth trajectory. The Worker Support Program for the Victorian hardwood sector; our Jobs & Skills Council partnership with Skills Insight and our recent tender response for the Forestry Workforce Training Program are headline activities for ForestWorks. The Board is confident that Mr Radda’s vision and leadership will further strengthen ForestWorks ability to deliver skills related services to our industries. We look forward to continuing to grow and develop our key stakeholder partnerships and deliver industry-led projects. The Board of Directors wish to acknowledge and thank outgoing interim CEO, Angela Bell, for her excellent work since taking on the interim role in January 2024.

The New Zealand Government has repealed legislation requiring the compulsory registration of log traders and forestry advisers. Source: Timberbiz “The existing legislation fails to deliver outcomes and places unnecessary costs on forest businesses,” Forestry Minister Todd McClay said. “I am confident that voluntary registration through the New Zealand Institute of Forestry is a better mechanism to support the quality of forestry advice.” Changes will come into effect 1 July and the Government will refund any fees or levies already paid to the Ministry for Primary Industries this season. Forest owners have welcomed the repeal saying it will provide relief and assurance to cost struck growers facing increased regulatory complexities. Timber products play a pivotal role in New Zealand’s primary exports, which contributed NZ$5.8 billion to the economy last year. An operating environment that supports a strong economy and strengthens the integrity of the supply chain is essential to getting New Zealand back on track, lowering the cost of living and providing the quality public services Kiwis deserve. Minister McClay said that the legislation honours the pre-election commitment to cut wasteful spending and restore confidence in the forestry sector. “It is important that we reduce unnecessary regulation and compliance costs where possible,” Mr McClay says.  

As of 1 July 2024, Tasmania’s private timber reserve application fee will increase from $623.00 to $654.50. Source: Timberbiz The fee for a private timber reserve (PTR) application is payable to Private Forests Tasmania and represents the cost of processing an application to declare land as a private timber reserve. Private timber reserves create a secure environment for investment in private forestry within Tasmania and help to deliver commitments for the sustainable management of private forests. A PTR is an area of private land set aside for forestry purposes and registered on the title. It is land or forest used to establish forests or grow or harvest timber in accordance with the Forest Practices Code. PTRs may cover a single title or several titles and be over the whole of a title, or part of a title. It must be at least five hectares in size. A PTR provides long-term security to manage land for forestry purposes and local government approval is not required when undertaking forestry operations on land declared a private timber reserve. Learn more about private timber reserves HERE. The fee to accompany an application to declare land as a private timber reserve is set under Forest Practices Regulation 2007. The private timber reserve application fee is 350 fee units. The value of a fee unit is set annually via the Fee Units Act 1997. The value of a fee unit in for 2024 – 2025 is $1.87. The increase from $623.00 to $654.50 is an automatic increase, required under the Fee Units Act 1997. This fee is exclusive of GST. Other fees payable under the Forest Practices Regulation 2007, Application Fee to Certify Forest Practices Plan and Tree Fern Tag, will also increase.  

Queensland’s peak body for the forest and timber industry is committed to ensuring the right policy settings are put in place by government to generate investment and expansion of forest resources to meet the rising demand for housing and construction. Source: Timberbiz “A key issue facing the industry is a lack of policy certainty over future access to public and privately managed native forests for sustainable hardwood production, as well as minimal incentives and measures to promote plantation and farm forestry expansion to increase timber supply,” said Timber Queensland CEO Mick Stephens. “The Queensland Sustainable Timber Industry Framework policy announced by the Government addresses a number of recommendations put forward by industry, although we remain cautious about the levels of available supply and impacts on the local hardwood sector until we receive further clarification around the policy. “We welcome the Government’s recognition of the importance of the industry for housing materials and the need to build our sovereign capability in timber production which supports local jobs.” Timber Queensland supports a number of broad policy commitments made by the Government, including: maintaining a baseline with no reduction in timber supply levels between 2025 and the end of 2034 and that industry needs ‘contractual certainty’, which should help provide the confidence for the native hardwood sector to invest where 10 years of state resource security is contractually provided; establishment of a Category F land use, which can provide private native forest owners the confidence to undertake applied management through a long-term right to harvest with an appropriate management plan; support for forestry education and extension services so that farmers and landowners including First Nations can implement best forest management practices to increase timber productivity, environmental and forest health benefits; wood processing innovation support to increase resource recovery and downstream production efficiencies in the sector; and plantation and farm forestry expansion to increase future timber availability. In order to maintain and grow timber supply levels from state and private native forests, Timber Queensland will be seeking assurances that: native hardwood permits are issued as soon as possible for permit holders from the former South-East Queensland (SEQ) supply zone through to 2026 based on current contract volumes for compulsory sawlogs, optional sawlogs and poles; longer-term permits through to 2034 are put in place for equivalent volumes within a sustainable yield envelope for former SEQ permit holders as soon as possible; further detail is provided on the agreed state supply volume to be provided through to 2034 including location and resource quality from available crown land; adequate business assistance is provided for transport impacts from the reduction of harvest area in the South-East Queensland Regional Plan Area from January 2025, as well as for permits issued through to 2034 in terms of any changes in resource quality and mix of log grades and products from the sourcing of equivalent volumes from other crown land; the ‘Category F’ instrument be explored as an alternative environmental control for private native forestry activities, compared to the Vegetation Management Act which targets broad-scale agriculture and is not fit for purpose for sustainable timber production with selective harvesting practices; and priority be given to private native forestry extension which has significant potential to grow and increase timber supply over the next few decades. “Another issue has been a lack of investment in new plantations and farm forestry plantings. We are keen to work with government to promote the right trees in the right place for future timber supply. “Major impediments for farmers include high-up front costs of tree establishment, limited access to forestry management expertise and lack of awareness of the on-farm benefits such as shade and shelter for livestock and supplementary income from timber and carbon sequestration. “It will be important that any plantation support measures take into account the farm-level goals of the landowner as well as commercial realities such as correct species choice, sufficient scale and locations close to processing facilities and markets. “As a whole, the funding commitment by the Government of $200 million for the framework policy is significant, which if implemented appropriately can position the industry with an opportunity to increase timber supply for housing and construction demand. “Our mission is to protect and grow the Queensland timber industry and we will continue to hold the government of the day to account in terms of commitments, barriers and opportunities for growth,” Mr Stephens said.  

Timber Unlimited has partnered with Australia’s CLT Toolbox to offer parts of this advanced software for free to New Zealand industry. Source: Timberbiz “With the release of the new Timber Structures Standard (NZSAS 1720.1:2022), it’s essential that we provide the industry with the resources to implement these new standards effectively,” Technical Manager at Timber Unlimited Bjørn Stankowitz said. CLT CEO Adam Jones said CLT’s goal was to empower engineers with the tools they needed to design sustainable, resilient timber structures. “Our software does just that, making advanced timber design accessible to all,” Mr Jones said This collaboration brings advanced, world-class design software to engineers across the country at no cost, streamlining complex design processes and promoting sustainable building practices. Timber Unlimited is at the forefront of promoting timber use in New Zealand construction, providing tools and resources that enhance the capabilities of engineers and the broader industry. CLT Toolbox, a leader in timber engineering software, has developed solutions that address the technical challenges of timber design, focusing on reducing embodied carbon in construction. The technical challenges of timber design are addressed by providing streamlined automated design routines and comprehensive educational support which CLT Toolbox has developed. Unlike other tools, CLT Toolbox offers transparent calculation methods that are not a ‘black box,’ enabling engineers to understand and trust the design processes to build confidence when specifying timber. This ongoing collaboration between Timber Unlimited and CLT Toolbox, initiated months ago, brings exciting new features to the New Zealand design community. Through this continued partnership, Timber Unlimited is pleased to announce the integration of 17 advanced dowel and bolt calculators as well as four further design modules into the free version of CLT Toolbox software available to the NZ users. These tools simplify what were previously complex and time-consuming tasks, enabling engineers to focus on innovation and efficiency. The software offers clear inputs and outputs, the ability to select New Zealand timber grades, dynamic images, and PDF design report generation. This collaboration equips New Zealand engineers with advanced design methods, empowering them to create higher-performing and lower-risk timber structures with greater confidence. The CLT Toolbox software aligns with the newly released NZS AS 1720.1:2022 Timber Structures Standard. This standard introduces new design methodologies and requirements for structural elements and connections, including brittle failure modes, based on the latest research and international knowledge. The software includes educational features that guide users through these advancements, reducing the learning curve and promoting widespread adoption. The Timber Design Society is particularly excited about the potential of this validated software package to empower smaller engineering firms in New Zealand. “New design methods can be a barrier to adopting a new material or construction typology, and this software will help engineers become confident timber designers. We look forward to seeing an increasing number of timber buildings in New Zealand and an increase in the quality of those designs,” Timber Design Society president Lisa Oliver said. Interim Portfolio Leader of Trees to High Value Wood Products at Scion, Elizabeth Dunningham, said that it was satisfying to see this collaboration between Timber Unlimited, Timber Design Society and CLT Toolbox progress with Scion’s support as the contract holder for Timber Unlimited for the past two years. “This collaborative effort delivers an easier pathway for increasing timber in New Zealand buildings, improving sustainability credentials,” she said. The partnership between TU and CLT Toolbox addresses the resistance faced by many designers due to the complexities of the new standard. By providing free access to advanced design tools, Timber Unlimited and CLT Toolbox lower the barriers to entry, encourage upskilling, and support the growth of timber construction in New Zealand. The software’s user-friendly interface and comprehensive resources make it an invaluable asset for the engineering community. Engineers and designers are encouraged to take advantage of this free resource by visiting the Timber Unlimited website at https://timberunlimited.co.nz/clt-toolbox-software This project was funded by MPI through Timber Unlimited as part of an initiative to enable more wood in mid-rise and high-rise construction.  

Brace yourself folks, we’re entering new territory. June export prices have come out with only a very slight rise on May, which was only a very slight rise on April, so basically flat at the bottom of the cycle. This is the first time in the last 15 years that we haven’t seen a price bounce once the bottom of the market is hit. Sure, there have been instances where it was a dead cat bounce which resulted in a double dip, but this time Fluffy’s stayed flat on the deck. Fortunately, the bottom of this cycle (which it hopefully is) is around NZ$15/m3 higher than any of the dips in the last 8 years but, nevertheless, it’s still painful. There has been positive movement in the CFR price (sales price in China) with a lift of around US$10/m3 over the past three months but increases in shipping and FOREX have taken the fun out of the party. Chinese on-port inventory has moved lower in June and currently sits around the 3.4Mm3 mark, down 600K/m3 from May. Uplift from ports is running at around 70K/m3 per day, although this is expected to drop as China enters its hot season and some of the workforce return to home to harvest crops during June. In addition, construction sites must cease work for a few days in early June during the high school exams to reduce noise pollution – imagine trying that in NZ! As expected, the NZ supply is starting to wind back as the Taupo windthrow salvage finishes and what’s left of the woodlot sector slows as the rains start. There are still some older cargos in China that will need to be worked through, but with reduced supply we would expect to see inventories continue on a downward trajectory. It may not be heading down as fast as Synlait’s share price, but any movement is good for potential price increases. There has been some good news on the Chinese construction front with the Government putting their ‘Three Major Projects’ development plan into action. This plan includes construction of affordable housing, renovation of urban villages and construction of recreational facilities that can be converted into emergency hospitals or accommodation. Reports out of China are that some of the more run-down neighbourhoods have commenced redevelopment and some of the larger infrastructure projects have started, thanks to a US$50bn injection from the Pledged Supplemental Lending program by the Peoples Bank of China. However, let’s not get too carried away with the Moet, the level of this program will be a drop in the bucket compared to the debt fuelled construction addiction that the country had for the past 16 years. NZ will see three vessels’ head to India in June and there is the potential that demand may increase somewhat in that market. It’s still only early days with supply back into India, and volumes are pale in comparison with China’s monthly tally of 40 odd vessels, but from a supply perspective, anything that’s not heading to China will have a positive effect in the long term. Domestic sawmills continue to wade through a softening market with NZ residential construction spending reducing from 6.1 billion to 5.3 billion over the past three quarters. This softness is likely to continue as long as our esteemed Reserve Bank Governor keeps the OCR in top gear, and it doesn’t look like the clutch will start slipping until we’re well into 2025. Domestic pruned log supply remains higher than expected as export pruned prices stay subdued and sales that would normally go over the wharf are diverted into the domestic market. This trend will turn quickly once export prices regain some momentum. The NZU price is trading at $51/tonne as at the time of writing, down from NZ$56 a few days ago but up from a low of NZ$45 in May. There is still some uncertainty on the NZ Government’s position on forestry in the ETS after the Parliamentary Commissioner for the Environment released a report in late May calling for a phasing down of forestry as a carbon offset over time. What is clear is that as long as there is speculation in the carbon market, NZU prices will continue to swing like a screen door in the wind with changing sentiment. Thankfully, the new government has seen sense and repealed the ‘Log Traders and Advisors’ legislation which was dumped on the industry by the previous government. This flawed piece of legislation placed more compliance and regulation on an industry already drowning in compliance and regulation and the vast majority of us are pleased to see it flushed down the porcelain. So, taking a leaf out of the Otis Clay song book, the only way is up – unless you’re a Synlait investor. We hope to see some meaningful price increases in Q3 but, from a macro-economic perspective, it’s unlikely we’ll see prices sustained at the levels we revelled in during the golden period between 2017 – 2019. If you’re sitting on the fence waiting for those days to come again, I hope you have strong undies. Marcus Musson is a Forest360 Director. He holds a Bachelor of Forest Science with Honours from Canterbury University, New Zealand, and specialises in steep slope cable harvesting, marketing and value recovery initiatives.

The NSW Nationals are calling on the State Government to reverse a decision to replace hardwood power poles with composite poles. The composite poles are to be made from a fibreglass and resin composite with a UV coating for fire resilience. Source: Timberbiz It is anticipated that more than 2000 timber power poles will be replaced a year with a further 9000 composite poles as new installations or replacement poles for end-of-life hardwood poles. NSW Nationals Leader Dugald Saunders visited Coffs Harbour Hardwoods in Glenreagh, along with Deputy Leader and Shadow Minister for the North Coast Gurmesh Singh, Member for Clarence Richie Williamson, Member for Oxley Michael Kemp, and industry representatives. They’ve called on Environment Minister Penny Sharpe to intervene to prevent a further increase in power prices, and to provide certainty to the timber industry. Mr Saunders said hardwood has been hard done by. “Not only will this untested product be worse for the household budget by adding to power bills, but it will also be worse for the environment by increasing our carbon footprint,” Mr Saunders said. Mr Singh said the ALP’s move will exacerbate the cost-of living crisis. “It’s bad enough Labor’s budget didn’t allocate any funding to help families while times are tough, but now the government is making decisions that will make things worse,” Mr Singh said. Last week the NSW Nationals party room passed a resolution, reaffirming its support of the hardwood and softwood timber industry. The resolution endorsed all responsible and sustainable harvesting measures, while opposing transfers of productive state forest to national park without strong scientific justification of improved outcomes. Richie Williamson said the current reduction in timber supply is a direct result of the Minns Labor Government’s decisions. “All of the shutdowns we’ve seen over the past six months or so have been caused by this government letting the timber industry down. It needs to do better to stand up for our regional workers and businesses,” Mr Williamson said. Michael Kemp said the resolution shows the NSW Nationals will always back our primary producers. “Hardwood timber is the backbone of the Mid North Coast and last week every single member of parliamentary team again showed their support for one of our most sustainable industries,” Mr Kemp said.