Issuu on Google+

6942

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

issue 252 | 17.12.12 | Page 1

We’re from the government and we’re here to help you

Merry Christmas and a Happy Industry pit-stops to clarify Bill New Year to all our readers

Why not give a tree for Christmas? The federal Minister for Forestry Senator Joe Ludwig joined with Bunnings Stafford warehouse staff during a media event in Brisbane to talk about the illegal logging Bill and help celebrate the festive season – from left, Jon Fenton, complex manager, Rod Caust, general manager trade, Jan Mackrill and Helen Trannent, marketing manager.

GOVERNMENT agencies will visit industry stakeholders in the New Year to discuss and explain the likely affects of

the regulations in the Illegal Logging Prohibition Act which was passed through parliament last month. Whistle-stop

®

Cont Page 3 Just Go t ood W

ne ree

r sm

®

to

sawmillers, manufacturers, processors and merchants are part of the federal government’s strategy to ‘smooth out’ the

G

MicroPro

visits

Treated

By JIM BOWDEN

MicroPro

®

Copper Quat

Want a good looking deck?

A p N A pro o lu v w Co m e nt ini d F ac um or t*

Then choose MicroPro for a lighter, more natural timber appearance providing improved painting and staining qualities.

Visit: www.osmose.com.au or phone: 1800 088 809 Osmose® and MicroPro® are registered trademarks of Osmose, Inc. or its subsidiaries. Treated Wood Just Got Greener sm are slogan marks of Osmose Inc and its subsidiaries. MicroPro timber products are produced by independently owned and operated wood preserving facilities. * See MicroPro fastener and hardware information sheet. © 2012 Osmose, Inc.

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

issue 252 | 17.12.12 | Page 1


INDUSTRY NEWS

Low housing figures justify interest rate cut by Reserve Bank

LATEST housing finance figures released by the Australian Bureau of Statistics continue to reflect soft conditions in the residential building industry. Master Builders Australia CEO Wilhelm Harnisch says the poor housing finance figures justify the Reserve Bank’s decision to cut interest rates further. “The building industry is anxiously looking to the October and December 2012 interest rate reductions to help lift new housing demand from the doldrums,” Mr Harnisch said. “However, signs of a housing revival will not be evident until the first quarter 2013. “The positive from the October figures is the 4.2% rise in commitments for the purchase of new dwellings. This represents off the plan sales and sales from a build-up of unsold new housing stock in response to the various state based incentives to attract more new buyers into the market. “The increase in the number of first home buyers taking out housing loans is also an encouraging sign. “However if conditions don’t substantially improve, then further rate cuts from the Reserve Bank should be an option for consideration next year.” Master Builders has welcomes the Reserve Bank’s reduction of the official cash rate by 25 basis points and calls on banks to pass the cuts onto home owners and small businesses, in full.

ForestWorks performs a range of industry wide functions acting as the channel between industry, Government and the Australian Vocational Education and Training (VET) system Wilhelm Harnisch .. it’s time the banks and commercial lenders started doing their fair share.

Mr Harnisch said the interest rate cut would have a positive effect underpinning a housing recovery in 2013. “The decision to cut rates is justified following the lower than expected building approvals figures released by the Australian Bureau of Statistics. “The housing market has been stagnant, while new home buyer and investor confidence to date has been low. It is hoped that the latest cut by the reserve bank will act as the trigger for improved confidence.” Mr Harnisch said the building industry was banking on the latest rate cut to act as a circuit breaker to flagging confidence and underpin the momentum for a housing recovery in 2013. “With lending costs staying relatively stable in recent months and after posting a combined profit of $25 billion this year, it would be very hard for the big banks to provide any justification not to pass the rate cuts on to customers in full,” he said.

Festive break for Timber&Forestry enews

This issue of Timber&Forestry enews is the last for 2012 as the industry prepares for the festive break. The first issue in the New Year will be published on January 21.

Page 2 | issue 252 | 17.12.12

The editor and the T&F enews team wish readers and advertisers the very best for a safe and happy Christmas and, hopefully, a much brighter year in 2013.

Learning Skills Research Advice Innovation

VICTORIA

PO Box 612, North Melbourne 3051 Tel: (03) 9321 3500 Email: forestworks@forestworks.com.au

NEW SOUTH WALES

PO Box 486, Parramatta 2124 Tel: (02) 8898 6990 Email: smukherjee@forestworks.com.au

TASMANIA

PO Box 2146, Launceston 7250 Tel: (03) 6331 6077 Email: edown@forestworks.com.au

SOUTH AUSTRALIA

Level 2, 32 South Terrace, Adelaide SA 5000 Tel: (08) 8219 9028 Email: michelle@forestworks.com.au

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au


INDUSTRY NEWS

Sydney workshop to focus on products affected by legislation

Wide representation of industry stakeholders likely From Page 1

approach to the regulations which are expected to be tabled by May or June next year. The prohibition elements of the Bill were brought into force on November 28. The regulations will outline steps that importers and processors should take to check the legality of the product they are receiving. Obligations for importers and processors to undertake due diligence do not commence until that time. “Face-to-face meetings with stakeholders are a very important aspect of the Bill once the regulations are settled,” Ben Mitchell of the international policy branch of the Department of Agriculture, Fisheries and Forestry said. “We’ll be getting around and talking to difference sectors of industry that will be impacted by the regulations.” A DAFF workshop on the Illegal Logging Bill in Sydney on December 19 will discuss key aspects of the legislation and look at the range of forest products that will be subject to the regulations. A broad representation of the industry’s working group – industry associations, environmental and church groups and other NGOs – are expected to attend the workshop along with representatives of Australia’s trading partners and international businesses. “We’re hoping to get a broad scope at the workshop, although the timing just before the festive season might limit attendances,” Mr Mitchell said. The federal Minister for Forestry Senator Joe Ludwig was at Bunnings’ Warehouse at Stafford in Brisbane last

The Minister for Forestry Senator Joe Ludwig (right) looks over FSC certified clear radiata pine boards manufactured by Claymark Sawmills, New Zealand, during a visit to Bunnings’ warehouse at Stafford in Brisbane, where he gave an overview of the illegal logging Bill. Looking on, from left, are Reece Turner, Greenpeace Australia Pacific, John Malloy, Queensland sales manager, Kimberley-Clark, and Rod Caust, general manager trade, Bunnings.

Thursday to discuss the impacts of illegal logging and how Australia was working to tackle the problem. “Australia is taking leadership on this issue and importantly, there is wide support for that action,” Senator Ludwig said. He was joined by community groups including Greenpeace and the Uniting Church, as well as industry representatives Bunnings and Kimberley Clark and the media. Bunnings general manager of Trade Rod Caust welcomed the legislation. “Over the past decade we have supported a ban on the sale of illegally logged timber in Australia,” he said. “Bunnings is pleased to see that this law has been passed as it is a big step towards this goal.”

Greenpeace spokesperson Reece Turner said Greenpeace has seen the damage of illegal logging first hand. “The impacts of illegal logging are devastating for forests and communities that rely upon them. “Greenpeace congratulates the government on these new laws and welcomes the commitment to support capacity building with trading partners in the Asia Pacific region.” Senator Ludwig said the government would continue to engage with a wide range of groups as the regulations were developed. “It is estimated 9% of Australia’s timber and timber product imports are at risk of coming from illegally logged sources,” he said. “We need to work here and

Government will provide $8 million to promote timber legality verification in the Asia-Pacific region

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

abroad to support a legal timber trade.” Meanwhile, the federal government is providing $8 million to promote timber legality verification in the Asia-Pacific region through the Illegal logging: Regional Capacity Building Partnership. Senator Ludwig said the International Tropical Timber Organisation and the Nature Conservancy would receive $2 million and $6 million respectively for projects to help ensure timber was legally logged. “We are committed to working with our trading partners to combat the trade of illegally harvested timber,” the minister said. “The trade is undertaken by criminal networks and has dangerous social, environmental and economic impacts.” He said up to 9% of Australia’s timber and timber product imports could be from an illegal source, worth an estimated $400 million. “The illegal trade frequently undercuts well regulated timber industries around the world, which also undermines Australian jobs.” Parliamentary secretary Sid Sidebottom said the Regional Capacity Building Partnership would support engagement with government and industry on timber legality verification systems and provide technical support on high conservation value forest management and reduced impact logging to forest managers. “This investment will help our trading partners demonstrate legality and complement Cont Page 16

issue 252 | 17.12.12 | Page 3


ENGINEERED WOOD

Gurus of LVL gather at Waiariki

EWPAA production course hones skills in innovative manufacturing technologies

THE Waiariki Institute of Technology’s Waipa campus near Rotorua has hosted the first Engineering Wood Products Association of Australasia workshop to be held in New Zealand. The practical workshops are held every two years and have been running since the 1960s and last month an EWPAA production course at the institute attracted 25 industry and educational specialists from Victoria, Queensland, New Zealand and Papua New Guinea. Acting director of the institute’s forestry primary industries school John Kelly said it was a real triumph for Waiariki to have industry people involved in the laminated veneer lumber production at the Waipa campus where these processes were used in its rebuilding. “These guys are the gurus of LVL and it’s quite a coup for us to host the first New Zealand held workshop,” he said. Waiariki engineered wood products trainers Doug Senior and Paul McGovern took part in the course. EWPAA general manager Simon Dorries said the course focused on manufacturing technology, quality control, product application and uses, innovation and the structural and aesthetic applications of plywood and LVL. “This was a valuable up-skilling program for manufacturing staff helping them to make products more cost effectively and in a quality environment,” Mr Dorries said. The course commenced on November 25 with a lathe seminar by Wayne Feltham of Feltham McClure Co Inc, Florida, USA, hosted by

Page 4 | issue 252 | 17.12.12

Participants in the EWPAA production course outside the at Waiariki Institute of Technology building near Rotorua are, front row from left, Andy McNaught, Simon Dorries, Josh Zervos and Sonia Moore of EWPAA Brisbane, Katie Punch Dynea Australia, Serena Maul, Dynea NZ, and Trish Stanley, CHH Tokoroa. Second row: Jimmy Peters and Adrian O’Hara, Juken NZ, Darren Lanham, Austral Plywoods, Doug Senior, Waiariki Institute, Karen Love, Momentive NZ, Cho Yun, CHH Marsden Point, Andrew Brown, CHH Myrtleford, and Geoff Hill, JNL Gisborne. Third row: Charles Gillespie, Dynea NZ, Andrew Wilson, Juken NZ, Paul McGovern, Waiariki Institute, Colin Albert, JNL Gisborne, John Webb, CHH Tokoroa, Simon Hayter, JNL Gisborne, Ben Moto, PNG Forest Products, and Bevan Familton and Robert Rodrigue, Nelson Pine NZ. Fourth row: Hank Bier, timber consultant, Alec Stretch, CHH Tokoroa, Kevin O’Connor, PNG Forest Products, and Mike Karepe, CHH Tokoroa. – Picture by Full Frame Photography.

Carter Holt Harvey Plywood in Tokoroa. Mr Feltham is a 30-yearplus veteran of the veneer industry. Feltham McClure was established in 1998 to provide lathe deck/green-end services specialising in lathes that peel veneer for panel products, LVL, fine hardwood face veneer, baskets, crates and flooring Also presenting at the five-day course were Simon Dorries, EWPAA general manager, Andy McNaught, EWPAA consultant, Alex Bruce, Momentive NZ, Sharon Adlam and Philip Marsh of Dynea NZ Ltd, Andre Siraa from Zelam Ltd and Hank Bier, timber industry consultant.

Practical sessions included a mill tour and demonstrations by Carter Holt Harvey Tokoroa, testing and evaluation of characteristic strength and stiffness at Scion Research in Rotorua and a tour and site inspection of the Momentive Chemicals laboratory at Mt Maunganui. The Waiariki Institute of Technology’s Waipa campus is the primary industry site for sawmilling, forestry and horticulture. The Waipa wood manufacturing building was built at the existing Waipa mill site where wood manufacturing students gain hands-on experience in

‘This was a valuable up-skilling program for manufacturing staff helping them to make products more cost effectively and in a quality environment’ – Simon Dorries

a functioning sawmill, wood machining and saw doctoring training. The $1 million 624 sq m building features a timber testing workshop, specialised chemical laboratory and four classrooms. The award-winning building is a showcase for timber innovation, both structural and architectural. The building features laminated LVL post and beam, Potius floor structures and LVL portals with STIC quick connect – a world ‘first’. Timber is used extensively throughout the building, 98% of which was sourced locally from FSC radiata plantations with some recycled or recyclable content. Pre-finished battens were milled on site by Waiariki students.

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au


WHAT’S ON?

JANUARY 2013

14-16: Digital Fabrication with Timber Studio. February 14-16: Australian Timber Design Workshop. The University of Tasmania’s School of Architecture and Design is continuing its long tradition of learning-by-making with these two exciting 2013 summer workshops in Launceston. Created for architects, designers, building professionals and students, these summer workshops provide an opportunity to learn about the cutting edge uses of timber in design and construction in a practical, hands-on setting. Tel: (03) 6324 4470 or email: timber@ arch.utas.edu.au

APRIL 2013

7-10: 6th international Woodfibre Resources and Trade Conference, Istanbul, Turkey. ‘Woodchips and Biomass for Global and Regional Markets’. Hilton Istanbul Hotel. Included in the program is a pre- and postconference field trip, two days of conference and the opportunity to visit Gallipoli. Visit www.woodfibreconference. com to register.

Residues-to-Revenues 2013 Conference and CleanTECH Expo Wood energy and ‘cleantech’ industry developments. Crowne Plaza Hotel, Auckland, April 10-11, 2013; Bayview Eden Hotel, Melbourne, April 15-16, 2013. Event website: www.

woodresiduesevents.com

7-11: Institute of Foresters of Australia conference – Canberra Rex Hotel, Canberra. ‘Managing Our Forests into the 21st Century’. Inquires to Alison Carmichael, chief executive, IFA, PO Box 7002, Yarralumla ACT 2600. Tel: (02) 6281 3992. Mob: 0414 287 079. Email: alison. carmichael@forestry.org.au Web: www.forestry.org.au April 28-May 12: EuroWOOD 2013 study tour to LigNA Hannover (May 6-10). Study tour and visits to Austria and Germany, starting in Vienna and finishing at LIGNA, Hannover, Germany. Add-on tour options to Finland and UK and European destinations. The 16-day tour is supported by the Engineered Wood Products Association of Australasia (EWPAA), in collaboration with other industry bodies and companies. Participants will have the option to attend the full LIGNA program in Hannover and join selected visits to surrounding wood manufacturing factories and a university outside LIGNA for one or two days, allowing three full days at LIGNA. Internet site for registrations available soon. Costs: $7550* (+gst) p.p. or $9370* (+gst) single with an option for single participants to twin share. Price includes all airfares, ground travel and most meals, including entry to the famous LIGNAHannover Fair from May 6-10. The study tour will inspect the

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

EVENTS

latest technologies of factorybuilt prefabricated housing and cross-laminated timber (CLT) construction methods, revolutionary MDF processes, wood panel processing, structural timber frame housing construction, and all the machinery that puts it together. Generous time has been allotted to rest, relax and enjoy Austrian and German tourist locations along the way while travelling by luxury coach and staying at top hotels. Tour limited to 32 participants, including professional industry tour guides. Travel consultant: Harvey World Travel, Shop 18, Fountain Plaza, The Entrance Rd, Erina NSW 2250.Tel: 02 4365 2337. For a full itinerary and registration details, contact the EuroWOOD 2013 Secretariat, PO Box 330, Hamilton Central Q 4007 or email eurowood13@ bigpond.com * Tax deductible industry tour

MAY

8: Global Softwood Log & Lumber Conference Sheraton Wall Centre Hotel, Vancouver, BC. Sponsor opportunities available. Contact: info@ woodmarkets.com or call 1-604801-5996.

December

4-5. Focus on improving transport and logistics in the forestry sector. It will build on the excellent program designed by the Forest Industry Engineering Association. Visit www.foresttechevents.com

Australia’s forest, wood, pulp and paper products industry now has a stronger voice in dealings with government, the community and in key negotiations on the industry’s future, as two peak associations have merged to form a single national association. The Australian Forest Products Association (AFPA) has been formed through the merger of the Australian Plantations Products and Paper Industry Council (A3P) and the National Association of Forest Industries (NAFI). AFPA was established to cover all aspects of Australia’s forest industry: - Forest growing; - Harvest and haulage; - Sawmilling and other wood processing; - Pulp and paper processing; and - Forest product exporting. For more information on the Australian Forest Products Association (AFPA) or to enquire about membership , please call (02) 6285 3833.

issue 252 | 17.12.12 | Page 5


FOREST CERTIFICATION

PEFC expands in the tropics Indonesia follows China and Malaysia into ‘forest certification system of choice’

INDONESIA has become the latest Asian country to join the Program for the Endorsement of Forest Certification after China and Malaysia, demonstrating that PEFC is the forest certification system of choice for the region. The decision by the Indonesian Forestry Certification Cooperation (IFCC) to join the world’s largest forest certification system was founded in PEFC’s unique bottom-up approach, which respects the uniqueness of sovereignty, ecosystem diversity, and the culture of every country. “Indonesia is home of some of the most biologically diverse forests in the world. We are looking forward to working with IFCC to promote sustainable forest management through forest certification and welcome them as a PEFC member,” PEFC secretary-general Ben Gunneberg said. “PEFC has refined its sustainability benchmarks over the past years to remove barriers to tropical forest certification, and we are

Page 6 | issue 252 | 17.12.12

excited to see the development of a national forest certification standard by Indonesians for Indonesians,” Mr Gunneberg said. “The promise of Indonesian’s forests being managed sustainably, in a manner that provides people with jobs that comply with the fundamental ILO conventions, safeguards forest biodiversity, and protects them from conversions, should be viewed by all who care about saving the world’s forests as an important first step in the right direction. “The fact that the challenges of the past will be addressed for a sustainable future is positive.” Indonesia’s forests comprise 60% of its land area, which makes it the third largest area of tropical rainforest in the world.

‘PEFC has refined its sustainability benchmarks over the past years to remove barriers to tropical forest certification’ – Ben Gunneberg

Ben Gunneberg .. promoting sustainable forest management

The Indonesian rainforests are also among the world’s richest in terms of biodiversity, yet for each year between 2003 and 2006, the Indonesian government estimates that around 1.17 million ha of forest was cleared or degraded. The economy in Indonesia is largely dependent on natural resources, with the forest sector employing around 4% of the total working population and contributing more than 9% of Indonesia’s non-mineral export revenue. The Forest Peoples Program estimates that up to 95 million

people in Indonesia (or 40% of the population) depend of forest resources for subsistence and trade, emphasising the need for a balanced, responsible approach to forest management. “We believe that for Indonesia to become a PEFC member is an important development,” Mr Gunneberg said. “There’s still a long way to go, and we appreciate the opportunity to advance the agenda through IFCC.” By becoming a PEFC member, IFCC has fulfilled an important prerequisite for applying for PEFC endorsement. IFCC is currently facilitating a multistakeholder process at national level to develop an Indonesian forest management standard, and the organization is committed to seek international recognition for its forthcoming national standard. “Joining PEFC is a natural step for any national forest certification system seeking international acceptance,” stressed Mrs. Saniah Widuri, general secretary of IFCC.

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au


INDUSTRY NEWS

Minister Burke’s forest ‘sweetener’ $90m short of industry ask: Colbeck

THE federal and Tasmanian governments will pitch at least another $102 million at the forest peace deal if the state’s upper house passes legislation to back it. Members of the Legislative Council are about to begin a crucial debate after an historic deal between environmentalists and the timber industry to end 30 years of conflict was done last month. But if the forest war is truly over, it probably won’t be known until next year. Federal Environment Minister Tony Burke has pledged a further $62.5 million to be funded by cuts to other environmental programs. The Tasmanian government will chip in a further $39.5 million. More money will be on offer to compensate major employer Ta Ann for timber lost with the decision to protect around 500,000 ha of native forest in the state. MLCs are now under massive pressure to pass the bill before Christmas, with Ta Ann saying it will close its two mills if the deal fails and Mr Burke flagging a possible end to federal government involvement. The $102 million adds to $276 million already pledged to the process. Mr Burke said $28 million of the federal money would be used to support workers and contractors and $25 million to help regions adjust to, for example, plantations. He said the money would begin to flow to the state almost immediately once the legislation was passed. Tasmania’s Liberal opposition, which says it will rip up the agreement if elected, immediately slammed the extra funding. “This offer isn’t even 30 pieces of silver, it’s more like 15,” opposition leader Will

Hodgman said in a statement. “It is a shameful sell-out of the forestry industry and less than half the amount offered by Mark Latham in 2004,” he said. Tony Burke said he was unable to guarantee that a nomination for the 123,000 ha of forest proposed for world heritage protection would be ready by a February 2013 deadline for the World Heritage Committee to consider it next year. The funding announced by Tony Burke was at best $90 million short of the ask by signatories

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

Tony Burke .. pledged a further $62.5 million to forest deal.

to the so-called forestry peace deal, Shadow Parliamentary Secretary for Fisheries and Forestry Richard Colbeck said. “This is, and always has been, a dud deal for Tasmania and it just gets worse,” Senator Colbeck said. Senator Colbeck said the proposed funding made no allowance for the impact of this process on mining; farming; fine design and furniture; tourism; honey producers; the craft sector; transport; or civil construction and engineering.

issue 252 | 17.12.12 | Page 7


GLOBAL FOCUS

Asian hardwood chip markets record all-time record volume

THE total imports of woodchips in Asia in 2011 were 19.8 million BDMT (bone dry metric tonnes) – an all-time record volume. Hardwood chips accounted for 89% of this total, and has never been higher, but softwood chips were about 25% less than a decade earlier. Through the first 10 months of 2012, hardwood chip imports in Japan, Korea and Taiwan were all below the level during the same period of 2011, but imports in China were nearly 10% higher. In total, hardwood chip imports were running slightly ahead of 2011. Whether the trade sets yet another new record volume in 2012 and likely trends for 2013, will be discussed at the 6th ATIF International Wood1 AdvertFINAL.pdf Fibre Resources and Trade

There has been a dramatic change in the sources of hardwood chips 11:59markets. AM Asian

3/12/12 for the

Conference in Istanbul, Turkey, in April next year. Demand for softwood chips in Asia continued to weaken in 2012, and through the end of October volumes were more than 14% lower than in 2011. The reasons behind the diverging trends in species demand, and the outlook for key markets in China and Japan, will be the focus of presentations by market experts at the Istanbul conference from April 7 to 10. There has been a dramatic change in the sources of hardwood chips for the Asian markets over the past several years. In 2009, Australia was by far the major source of hardwood chips, accounting for

Cont Page 11

Some standards enforced in Australia orginate from international certifying bodies Small Think Global (not just Local) (ie business card, comp slips etc)

C

M

Y

Member

Member

Australian Timber Importers Federation Inc www.atif.asn.au

Australian Timber Importers Federation Inc www.atif.asn.au

CM

MY

CY

CMY

K

Always purchase appropriately certified imported Medium (large stationary items etc) timber products Member

Australian Timber Importers Federation Inc www.atif.asn.au

Page 8 | issue 252 | 17.12.12

Australian Timber Importers Federation Inc

www.atif.asn.au

Large (packaging etc)

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au


OPINION LETTER TO THE EDITOR

Wrong impression given on rosewood

Australian imports negligible YOUR article about southeast Asian rosewood (T&F enews December 10) is misleading by what it omits to say. Given the current high profile of the illegal logging issue, to an uninformed reader it would look as if Australia was playing some part in the terrible illegal and unsustainable harvest of this rare species. The truth is that Australia would import negligible amounts of southeast Asian rosewood, either as timber or veneer. And it is far too expensive to be used in paper or plywood. As the article says, the main market for this rosewood is very expensive furniture of a deep dark red colour, made in countries like China and Vietnam (NOT Australia). There are three reasons why such furniture is unpopular in Australia, and therefore why it would be likely that imports of furniture containing it would probably be extremely low. The evidence lies in every furniture store, fashion and in the spending pattern and preferences of Australians: • Cost – from what I have read, a bed of this timber costs something like $20,000. Australians do not spend this

sort of money on beds (or any other furniture for that matter). If we have this sort cash to spare, we spend it on things like a holiday, a car, paying off our house, a boat and investing it/putting it in the bank. • Aesthetics – Australians do not buy the ornate heavy furniture that rosewood is made into. Rather, we buy furniture with the light clean look of furniture found in stores such as Ikea, Domain and Freedom. • Fashion – the current fashion in furniture and fit-outs is for creams, neutrals from dark to light, biscuit colours, charcoals, blacks and greys. As every timber or veneer merchant would tell you, it’s the colours of American/European oak, American walnut, spotted gum and Blackbutt, smoked oak and limed/washed oak (and all 100% sustainable I might say). I challenge anyone to go out there and sell any quantity of deep red furniture or joinery, either to the domestic or commercial market. It would be like trying to sell bustles and knicker-bockers! – JUEL BRIGGS, Sydney

dennis@industrye-news.com

Fined for illegal milling of timber

A NEW Zealand man has been fined $15,000 plus a further $15,000 in reparation to the Ministry for Primary Industries for milling indigenous timber. The defendant Stuart Neilson of Whakatane pleaded guilty to illegally milling about 17 cub m of rimu and matai. Under the Forests Act, indigenous timber can only be produced from forests which are managed in a way that

maintains continuous forest cover and ecological balance. More than $50,000 worth of seized timber was also forfeit to the Crown with a judicial recommendation that it be returned to the local Hapu. The court heard that Neilson was familiar with the requirements of the Forests Act and had been a registered sawmiller from 1999 to 2002.

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

issue 252 | 17.12.12 | Page 9


FOCUS ON FORESTRY

Forestry in NSW: a reflection

New Year’s Day rings in new legal title as state-owned corporation comes into effect

FORESTS NSW was established as the government trading enterprise State Forests of NSW in 1992. Between 1992 and 2007, the year I joined Forests NSW, it was led by Hans Drielsma, Bob Smith, Peter Duncan and Alastair Howard. I would like to formally acknowledge the contribution of these leaders and that of their predecessors over the years. At this major turning point for our organisation, I think it’s appropriate to have a brief look at the history of the Forestry Commission and the milestones in forestry that it reveals. This year’s annual report includes a timeline summarising the major developments in the history of the NSW Forestry Commission and its precursors from 1871 to 2012. The first forest reserves were proclaimed in New South Wales in 1871. These reserves were established for the purpose of preserving enough timber to meet the future demands of the colony, since its timber resources were being rapidly consumed for building construction and other purposes. By 1879, the area of timber reserves had reached 1.2 million ha and by 1905, 3 million ha. Despite the impressive size of the timber reserves, concerns about an impending shortage of timber remained and a Royal Commission of Inquiry on forestry was set up to investigate. In 1908, the Royal Commission recommended “the planting of exotic softwood trees of commercial value on suitable lands throughout the state” to

Page 10 | issue 252 | 17.12.12

With the formation of the new corporation, industry is looking forward to a new era for forestry in New South Wales.

THE passing of the NSW Forestry Bill 2012 by both houses of parliament last month established Forests NSW as a state-owned corporation and gave it the legal title of the Forestry Corporation of NSW. The new corporation comes into effect on New Year’s Day, January 1. Chief executive Nick Roberts reflected on this change at a function in Sydney on November 29 which was to be the last hosted by Forests NSW as the trading arm of the NSW Forestry Commission. supplement timber from native forests. Prior to the Royal Commission, there had been experimental plantings of Pinus radiata undertaken at the Forestry Department’s nursery at Gosford, around 1894. The first attempt at a commercial pine plantation was made at

Tuncurry state forest in 1912. On November 1, 1916, the Forestry Commission of NSW was established, responsible for the management of state forests, timber reserves, flora reserves and some Crown land for “the best advantage of the state”. The first sale of pine by the

‘This is a proud history for an organisation that has been central to the state’s forest and timber industries for almost 100 years’ – Nick Roberts

commission was not made until 1924, when 55 cub m grown at the Gosford nursery site was sold to a local mill to make fruit cases. In 1938, a parcel of largely cleared farmland was purchased to establish a forest experimentation station in West Pennant Hills. We now know this land as Cumberland state forest, which is also the location of our corporate headquarters. During World War 2 there were timber shortages and after the war the pine plantation program was accelerated looking to avoid future shortages. By the 1960s the commonwealth was promoting domestic timber self-sufficiency as a national goal and the states were given low interest loans to establish softwood plantations. By 1971, the commission had established 85,000 ha of pine plantation. The commonwealth funding ceased at that time but the commission’s planting program continued with state government funding. As an interesting aside, I noted that a digital electronic computer was first used by the Forestry Commission in 1959 to undertake timber resource assessments in preparing forest management plans. (I wonder how much space it occupied). Since the 1970s the public focus has been almost exclusively on native forests. The year 1979 saw the first mass protests opposing native forest logging in what protesters believed to be rainforests. The protests eventually sparked the NSW government’s decision to gazette the remaining rainforest in NSW as national park in 1983.

Cont Page 11

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au


FOCUS ON FORESTRY

Greater focus on customers and improved systems and processes

From Page 10

Since this time, state forests have become increasingly recognised for their natural beauty, as havens of biodiversity for native plants and animals and for their role in providing clean water and air. In 1999, the state and federal governments signed off on the first of the NSW Regional Forest Agreements – now 20year plans for the sustainable management and conservation of native forests. Wood supply agreements based on the NSW RFAs run to around 2023 – hence the year 2023 is seen as a watershed year for native forest sustainability in the state. The watershed nature of that year is reflected in the establishment by the NSW government of the 2023 Steering Committee to advise on north coast timber supply options beyond 2023 and to ensure current commitments to 2023 are met. Forests NSW and other relevant government land management agencies have been providing information to answer the questions posed by the 2023 committee to date. No doubt the north coast industry is looking expectantly to hearing the outcome of the committee’s work.

Forests NSW forester Phil Dewhurst (left) inspects pine tree seedlings being planted out by the crew of contract planter Nigel Grant at Bombala.

This is a proud history for an organisation that has been central to the state’s forest and timber industries for almost 100 years. And now, at this significant juncture, we look to an even prouder future as we aim to deliver better returns to the people of New South Wales. In May the NSW government announced its decision to corporatise Forests NSW. The decision was based on independent advice that a corporatised Forests NSW would be able to better focus on its core business – growing and harvesting timber to meet the community’s needs for hardwood and softwood

products – and also achieve a better financial performance for the benefit of the state’s taxpayers. The main change will be the organisation’s governance structure, under the direction of a skilled, commercially-focused board. The government will appoint the members of the first board of directors shortly and Forests NSW (with a new trading name) will operate as a corporation from New Year’s Day, January 1. The nature of Forests NSW business won’t change but we hope to become more efficient in the way we conduct our business. There will be greater

focus on customer service and streamlined systems and processes. Mechanisms for regulatory oversight of Forests NSW environmental performance will remain in place and the state’s commitments under the RFAs are not affected. I fully expect that the board will be rigorous in holding management accountable for regulatory compliance as well as financial performance. Forests NSW will maintain its other important community roles including fire fighting and fire prevention, ecological protection, forest road maintenance and feral animal and weed control. One significant change that should be well received by our customers is that the Forestry Act 2012 provides for an independent review to be undertaken of the Forestry Corporation’s native timber harvest and haulage costs every three years. I welcome this change not only as a market test but also as it poses a challenge to the corporation to be cost competitive. With the formation of the new corporation we can look forward to a new era for forestry in New South Wales.

Vietnam replaces Australia as dominant woodchip supplier From Page 8

31% of the total supply going into Asian markets for the full year. Exports from southeast Asia had been expanding for several years, and in 2009 Vietnam accounted for 17% of total hardwood chip supply and southeast Asia made up 31% of the total. But exports of hardwood chips

from southeast Asia have exploded over the past three years, and through the first 10 months of 2012, Southeast Asian countries supplied 55% of the hardwood chips imported by Asian markets. Vietnam has replaced Australia as the dominant hardwood chip supplier, with 32% of total

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

volume in 2012 compared with 19% from Australia. Thailand has also surged, and is now the third largest hardwood chip supplier, ahead of Chile for the first time. At the Istanbul meeting, regional experts will describe the hardwood chip supply and demand situation in each country, with an outlook on future potential supplies.

In addition, the conference will offer extensive networking time to meet all of the major global woodchip suppliers.

* One bone dry metric ton (BDMT) is a volume of wood chips (or other bulk material) that would weigh one metric tonne (2204.623 pounds) if all the moisture content was removed.

issue 252 | 17.12.12 | Page 11


ENGINEERED WOOD

Summer workshops focus on cutting edge of timber design

THE University of Tasmania’s School of Architecture and Design is continuing its long tradition of learning-by-making with two exciting 2013 summer workshops in Launceston next year. Run by the school’s centre for sustainable architecture with wood, the workshops are designed to provide students, building professionals, and timber industry professionals with an opportunity to learn about the cutting edge use of timber in design and construction in a practical and hands-on setting. The first workshop – Digital Fabrication with Timber Studio from January 14 to 16 offers hands-on experience of digital design and fabrication

Engineered wood features throughout the interior of the University of Tasmania’s medical science building.

processes

with

Participants

will

parametrically

timber. conceive, model,

prototype, fabricate and erect

geometrically complex wooden structures in full size. The

second

Australian

workshop

Timber

Design

– from February 4 to 15 will allow participants to design, fabricate, construct and install a small timber building from a controlled timber-rich palette in 11 days. The building is for a local school, and its students are developing the design brief and will be the workshop’s clients. This workshop is the equivalent of one academic unit and is available for cross institutional enrolment. To learn more or register interest for the studio or workshop, email timber@arch.utas.edu.au or telephone: +61 3 6324 4470. The School of Architecture and Design offers degree programs in architecture, interior design, furniture design and landscape architecture.

Conference focuses on forests in the Pacific

GREEN and CLEAN Engineered wood products from EWPAA members are manufactured from 100% LEGAL forests – they are GUARANTEED to meet all Australasian standards.

Engineered wood products have the best environmental credentials and the lowest emissions. They meet all specifications for emissions certified under JAS-ANZ accreditation.

You can rely on EWPAA certified products – other certifications are just not the same. Choose consistent quality and structurally safe PAA-accredited products. Don’t be exposed to liability. Unbranded, non-compliant products are not worth the risk! Engineered Wood Products Association of Australasia Plywood House, 3 Dunlop Sreet, Newstead, 4006 Queensland Australia Tel: +61 7 3250 3700 Fax: +61 7 3252 4769 Email: inbox@ewp.asn.au Page 12 | issue 252 | 17.12.12

e. Be sur e. Be saf w

Visit .au p.asn ww.ew

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au


VAFI ANNUAL INDUSTRY AWARDS

Benalla sawmillers win VAFI awards for training, local community support

BENALLA-based Ryan & McNulty Sawmillers received two awards at the Victorian Association of Forest Industries’ annual dinner in Melbourne last month Held each November, the dinner is the peak event for the Victorian forest and wood products industry. Ryan & McNulty were recipients of two of the five awards this year: the Skills and Training Award and the Community Engagement Award, presented by the Victorian Minister for Agriculture and Food Security Peter Walsh. VAFI chief executive Lisa Marty said these awards highlighted the efforts the business had made to ensure its employees had the skills they needed to build rewarding careers, and that it was a good neighbour in

its community. The business was awarded the Skills and Training Award for an ongoing commitment to investing in the skills development of all employees, with nearly every member of its workforce receiving some form of training in 2011-12. “Ryan & McNulty have shown a strong commitment in investing in the future of the industry, by investing in the future of its staff,” Ms Marty said. “Nothing could make this commitment clearer than the fact that 97% of the company’s employees are currently completing a nationally recognised training certificate or degree.” This focus on training has a particularly strong safety component, with consultants engaged to develop and

Greg McNulty (right) accepts VAFI Excellence Awards from the Victorian Minister for Agriculture and Food Security Peter Walsh.

implement new safe working procedures. This has involved providing workers with more information on the hazards associated with their roles in the work place and how to minimise these defined hazards.

No serious injuries have occurred in the past 12 months. Ms Marty said Ryan & McNulty were winners of the Community Engagement Award, as they clearly went above and beyond to support local community groups projects. “In the past year the business has given to 22 local groups,” she said. “This included an agreement to fund and support the opening night of the Benalla Festival and ongoing support for the redevelopment of the Benalla Racing Club, including a red gum safety fence. “On top of this, Ryan & McNulty also donated to five national charity groups. “Clearly this is a business that deserves to be recognised for its commitment to its local community and its skilled staff.”

Visit the World of Engineered Wood .. join the EuroWOOD 2013 study tour APRIL 26 – MAY 10, 2013 This fact-finding, fully-escorted 16-day tour of Austria and Germany starts in Vienna and concludes at LIGNA Hannover

EuroWOOD2013 is supported by the Engineered Wood Products Association of Australasia (EWPAA), in collaboration with other industry bodies and companies. The study tour will inspect the latest technologies of factory-built prefabricated housing and cross-laminated timber (CLT) construction methods, revolutionary MDF processes, wood panel processing, structural timber frame housing construction, and all the machinery that puts it together. Generous time has been allotted to rest, relax and enjoy Austrian and German tourist locations along the way while travelling by luxury coach and staying at top hotels. * Tax deductible industry tour . Tour limited to 32 participants, including professional industry tour guides. Travel consultant: Harvey World Travel, Shop 18, Fountain Plaza, The Entrance Rd, Erina NSW 2250 Tel: 02 4365 2337.

For a full itinerary and payment details, contact the EuroWOOD 2013 Secretariat, PO Box 330, Hamilton Central Q 4007 or email eurowood13@bigpond.com Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

* Tax deductible industry tour

$7550* (+gst) p.p. or $9370* (+gst) single includes all airfares, ground travel and most meals, including entry to the famous LIG NAHannover Fair from May 6-1

issue 252 | 17.12.12 | Page 13


ACHIEVEMENT

Award reconises forester’s work in eucalypt development in China

Clonal plantations now total 3.7 million ha

THE Chinese government has awarded an Outstanding Contribution Award to Queensland forester Dick Pegg for his work on the successful Dongmen eucalypt forest project. The award was presented at the National Eucalyptus Forum at Guangxi in southern China last month, hosted by the Chinese Society of Forestry and Guangxi Forestry Department. The award recognised outstanding achievements in the field of eucalypt research, contributions to the ChinaAustralia Technical Cooperation Eucalypt Afforestation Project at Dongmen forest farm and the assistance given in the eucalypt development of Guangxi povince. The event was attended by eight former Queensland government foresters, including six who worked on the Dongmen project from 1982 to 1989. Wei Ju, Chinese project manager (1982-89) and Dongmen forest farm manager (1979-87) was also presented with an Outstanding Contribution Award. The Dongmen forest farm in the Guangxi province has been operating for more than 40 years and has been a centre of eucalypt tree improvement in China for more than 25 years. A large percentage of the eucalypt clones currently being used operationally in China were developed at Dongmen. Much of the eucalypt genetic material established at the farm since the 1980s has been retained so Dongmen now has the most comprehensive eucalypt genetic material in China. The production of first generation hybrids continues

Page 14 | issue 252 | 17.12.12

Pictured among Gympie messmate (E. cloeziana) from the first project trial at Dongmen planted in 1983 are, from left, Mo Qiping, chief Chinese technician on the project 1982-89; Zhang Shoude, Chinese forester on project 1982-89 and Dongmen forest farm manager 1987-90; Wei Ju, Chinese project manager 1982-89 and Dongmen forest farm manager 1979-87; Bai Jiayu, ex director of Research Institute of Tropical Forestry, Guangzhou; Dick Pegg; Rod Stevens, forester on project 1982-84 and 1986-87; He Sanzhong, Chinese forester on project 1982-89 (M Sc from University of Melbourne during project); Keith Gould, Australian team leader, 1985-88; and Zhang Yuanhua, currently deputy manager of Dongmen forest farm.

Dick Pegg presents Huang Guangyin, the current manager of Dongmen forest farm, with a carving made from rosewood (Dysoxylon fraseranum) after the National Eucalyptus Forum at Guangxi in southern China.

There have been massive change in eucalypt plantation forestry and associated utilisation in China since the start of the Dongmen project

and plans are in hand for the creation of advanced generation breeding populations of pure species and hybrids. The farm was founded in 1965 and was the site of the Australia-China technical cooperation project from 1981 to 1989. In the 1970s and early 1980s, the main eucalypt species planted were Eucalyptus citriodora (now classified as Corymbia citriodora subsp. citriodora), E. exserta and some E. rudis. Today, the eucalypt plantation program is based entirely on hybrid clones. The Dongmen project developed following an approach from the Chinese government to the Australian International Assistance Bureau (AIDAB now known as AusAID) in April 1981 which organised a feasibility study of a proposal on eucalypt afforestation. The project was funded on the Australian side by AIDAB with the Queensland Department of Forestry as the managing agency. Dick Pegg said there had been massive change in eucalypt plantation forestry and associated utilisation in China since the start of the Dongmen project. In 1981, the area of eucalypt plantations in China was about 400,000 ha. The most common species were Eucalyptus exserta, E. citriodora and E. globulus, established as seedlings. Today, the area of eucalypt plantations is about 3.7 million ha, most of which is clonal. Most clones are selections from hybrids between E. urophylla and E. grandis.

Cont Page 15

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au


ACHIEVEMENT

Plantation yields have doubled in an industry now worth more than $30bn

From Page 14

Mr Pegg estimates that more than 2.6 million ha has been established from clones developed at Dongmen. “Over the past 30 years, plantation yields per hectare have more than doubled,” Mr Pegg said. “Many new industries are using products from these plantations and a recent estimate has valued the industry at more than $A30 billion a year – indeed a massive achievement.” At this stage, there are no plans to advance the breeding populations of other species in family trials at Dongmen. “The reasons for this are, firstly, that the most productive hybrids for the Dongmen area are between E. urophylla and E. grandis and, secondly, there is limited staff for the large amount of higher priority work needed in the tree improvement program,” Mr Pegg said.

Former Queensland government senior forest technician Lester Perkins who worked on the Dongmen project as technician from 1987 to 1989 checks the girth of a eucalypt hybrid in southern China – a cross between E. urophylla (from Indonesia) and E. grandis (from north Queensland) bred at Dongmen. Mr Perkins now lives in Yeppoon and works for Greening Australia.

“Between now and the availability of second generation selections, there is an opportunity for making hybrid families using the selections currently available and introducing some material

from second generation family trials as it becomes available “Maximising of the number of hybrids between E. urophylla and E. grandis should increase the probability of finding combinations more productive

than hybrids currently used. “But there is a degree of uncertainty in predicting the performance of hybrids as large numbers of hybrid families under test are required to get optimum results.” Mr Pegg said with the large range of clonal material available at Dongmen, there was a great opportunity for studies of wood properties (including pulping yield and quality) among clones. With the importance placed on attracting the pulp and paper industry to Guangxi by the provincial government, this type of study had great importance. “Some studies into these properties have been conducted, but there is potential for the further selection of operational planting material and to guide the direction of further hybrid production,” Mr Pegg said.

Purchasing guide manages paper risks

COMMERCIAL buyers of toilet paper and other tissue products are concerned about the procurement risks they are exposed to in their businesses. High profile exposes of Sumatran tigers being killed, embarrassment for major importers, Australia’s new illegal logging laws and constant stakeholder scrutiny are all of concern. Commercial buyers can now make the right decision, using Australia’s first genuinely independent sustainable procurement guide for tissue products. “Every week, one or more commercial buyers ask IndustryEdge which toilet paper, facial tissues and paper towels are sustainable – and which are not. Usually, they ask

because they are under either internal or stakeholder pressure to justify a purchasing decision. By then, it’s too late,” says Tim Woods, director of pulp and paper trade and market consultants IndustryEdge. “We have collated our expertise of the tissue products industries and sustainability issues and created a guide that puts the purchaser on the front foot. The aim is for the commercial buyer to make sustainable procurement decisions as a matter of course. “Buyers cannot be expected to know what types of plantations in developing countries, under what conditions and in which situations are going to cause them problems down the track. This guide ensures they ask the right questions, get the

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

Issues with tissues .. guide identifies the major issues that arise with tissue products.

right answers and make their first decision a sustainable procurement decision.” Using a matrix approach, the guide identifies the major issues that arise with tissue products and suggests how they should

be treated. It even provides guidance about what questions to ask potential suppliers. The guide is unique; it contains no recommendations and refers to no products or companies. “This Sustainable Tissue Procurement Guide is truly independent. It will help the commercial buyer make the right decision for them, their business and clients. We back the guide up with a complete support service and we are always available to assist subscribers as they address these sometimes difficult questions,” Mr Woods said. Copies of the guide are available from IndustryEdge for $100 (plus gst) on (03) 6231 5677 or from www.industryedge.com. au

issue 252 | 17.12.12 | Page 15


ENGINEERED WOOD

Hardlam an engineered wood winner for prominent Tasmanian furniture designer

PROMINENT Tasmanian furniture designer Linda Fredheim has delivered glowing praise for Forestry Tasmania’s new engineered wood product Hardlam. Ms Fredheim, who recently completed her first pieces with the veneer-based product – two console tables in Tasmanian oak and blackwood – believes it will be a product much in demand following its launch earlier this year. “It’s a fantastic product and a fantastic story and I don’t see any drawbacks with it,” she said. Ms Fredheim, who has been a furniture maker and designer for 25 years, said Hardlam was

Linda Fredheim .. glowing praise for new engineered wood product.

easy to work, was very stable

timber needs.

and could potentially satisfy

“I used to use a lot of rainforest

up to 25% cent of her future

timbers like myrtle but I don’t

have to use them now and there is no longer the need to regrow that resource. It is a really hard timber considering it is made from young trees. “And because of the way it’s been manufactured, unlike Tas Oak you don’t have to wait two or three years for it to dry.’’ Hardlam is the first product to be developed under Forestry Tasmania’s Forestry Innovation Plan. It is manufactured from the low grade logs harvested from native forests and plantations, which would otherwise be woodchipped. Forestry Tasmania will market the product into Asia, particularly China.

Benefits will flow back to timber importers

From Page 3

similar outreach activities being conducted by the EU and the United States,” Mr Sidebottom said. “The benefit will ultimately flow back to Australian timber importing businesses who will find that better supplier information about timber legality will help with due diligence obligations, due to

commence in late 2014.” Funding will support the ITTO’s Thematic Program on Forest Law Enforcement, Governance and Trade and the Nature Conservancy’s Regional Asia Forest Landscapes and Trade program. “Projects will focus on forest management, harvesting, processing and exporting, as well as government and

industry regulatory systems,” Senator Ludwig said. “This will contribute to supporting the sustainability of forestry in Asia-Pacific countries and will strengthen the trade in legally sourced timber.” The 2011 Honolulu APEC Leaders Summit declared members would “work to implement appropriate

measures to prohibit trade in illegally harvested forest products and undertake additional activities in APEC to combat illegal logging and associated trade”. The funding forms part of the $273 million International Forest Carbon Initiative, which aims to reduce emissions from deforestation and forest degradation in developing countries.

Opportunity: new engineered product Project seeks access to on-going timber resource

ThIs engineered product is manufactured from small diameter treated true round plantation logs that would normally be chipped or destroyed. Resource cost is minimal. The production system is low capital cost and can be set up in a minimum of time and at a minimum of cost. Compared with current systems such as LVL, sawn timber etc. this product has unrivalled versatility, fire resistance, projected longevity and sustainability. This product has the ability to lower the costs of floor and wall framing in modern homes, as well as being ideal for low-cost housing The entire buildings can be erected on site using unskilled labour. The product has undergone comprehensive testing at the engineering faculty of the University of Technology Sydney under the guidance of internationally renowned timber engineer Prof. Keith Crews.

Engineered Timber Products

Loggo products have undergone comprehensive testing at the engineering faculty of the university of Technology sydney.

Page 16 | issue 252 | 17.12.12

The project is keen to establish a plant near a guaranteed resource. Contact: (02) 4256 4767 or email pat@loggo.com.au www.loggo.com.au

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au


‘Supercycle’ for forest products in BC expected to begin in 2013

With US housing starts doubling, prices could hit record highs LUMBER prices in North America are expected to soar next year before hitting all-time highs in 2014, bringing a flood of cash to British Columbia sawmills and restoring health to provincial resource revenues, according to a report by Vancouver consulting group International Wood Markets. Wood Markets president Russ Fraser says the dynamics have been in place since 2008 for a so-called ‘supercycle’ that will push lumber prices into the stratosphere. The only missing element, he says, has been a recovery in US housing starts. Barring a broader economic calamity, such as failure to resolve the fiscal cliff, the US housing sector has begun that long-awaited recovery. “We are already seeing some of this happening already,” Mr Fraser said. “We are seeing the highest prices in six years right now – the middle of December, which is usually when you see the lowest prices of the year. The supply chain is very tight.” The Wood Markets report covers the years 2013 to 2017, a period during which US housing starts are expected to double. At the same time, North American timber supplies are expected to be constrained by issues like the mountain pine beetle in British Columbia and harvesting cutbacks in Quebec, leading to a supplyside crunch. Further, the distribution chain in the US has been reduced by half because of the recent recession. Many of the companies that survived are on credit

The year is ending on a positive note for British Columbia lumber.

watch and are unable to buy enough lumber to rebuild their inventories. Those North American factors are playing out in a global wood products market where China is taking a stronger role. China now accounts for 25 to 30% of lumber shipments from the BC interior, a market that didn’t exist the last time the US housing market was strong. Lumber prices have already jumped significantly in 2012. The composite lumber price – the price used to set the rate for the softwood export tax – is now hovering around $US360 a thousand board feet, up $100 from the beginning of the year. A 10% increase is expected in 2013, and a further 10% jump in 2014, which would mean a record $US440 per thousand

board feet of lumber. Further, the softwood tax drops to zero above $US355 which means, beginning in January, British Columbia companies will be paying no tax, an added bonus. Higher lumber prices will also mean the BC government collects more tax revenue through stumpage. The current provincial government forecast for stumpage revenues is $352 million for the year ending March 31, 2013. The 2014 budget anticipates a 13% increase to $415 million. Industry observers expect stumpage rates to triple, if prices hold. Lower production rates because of the mountain pine beetle will eat into that revenue, but thy still believe

Many of the companies that survived are on credit watch and are unable to buy enough lumber to rebuild their inventories

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

there will be a substantial increase in the government’s forestry revenues. The year is ending on a positive note for British Columbia lumber, says Joe Heath, general manager of North American sales at West Fraser Timber. But he tempered his optimism by saying many factors are at play that could affect the recovery. “Recovering markets do not follow a straight line up,” he said. Nonetheless, the last three months of 2012 have been unusual. West Fraser is operating all its BC mills. “We have seen a run this last six to eight weeks that we didn’t forecast. I think it has taken a lot of people by surprise. We are questioning what is really driving it. A lot of it has to do, I am sure, with the percentage of product that is going offshore. I think North Americans always thought they had a supply readily available to them and yeah, things are changing a little bit out there.” Mr Heath said wholesalers normally ran their inventories down at this time of year, but this time they ran them too tightly. “It doesn’t take much of a scare for people to buy a little more than they need,” he said. The unanswered question for Heath is whether the extra lumber inventory coming in the front door is also going out the back door as sales. “Can we really sit here and say this is the beginning of Cont Page 18

issue 252 | 17.12.12 | Page 17


INTERNATIONAL FOCUS

Real Christmas trees are far more sustainable than fakes

AN artificial Christmas tree would have to be used for 20 years before its carbon footprint matches that of a farmed tree, according to a forestry professor at the University of British Columbia Steve Mitchell said most artificial trees are kept only six years before fashions change and owners throw them out. Most end their life in a landfill. “Artificial trees need to be kept for 20 years for the carbon emissions to be equivalent to using natural trees,” Prof. Mitchell said, referring to a life cycle study done in 2009 by Ellipsos, a Montrealbased sustainable consulting company. “People can choose a wild tree and either a farmed cut tree or a farmed living tree. Of all the options, the most sustainable is a wild tree,” he said. “Since wild trees aren’t fertilised or groomed like farmed trees, the only fossil fuels used in turning them into products comes from the energy used in transporting them to the consumer.” In British Columbia, the greatest source for wild trees is under hydro transmission lines or along forest road rights-ofway. There is no charge for a permit to cut Christmas trees for personal use on Crown land. They’re available for most

Steve Mitchell among the cultured Christmas trees at the University of British Columbia’s farm in Vancouver. He says the most sustainable Christmas tree is the wild tree cut from underneath power lines and road right-of-ways.

districts from the Ministry of Forests, Lands and Natural Resource Operations. Prof. Mitchell said one interesting technique that had developed in the Kootenays were Christmas trees grown on Douglas fir stumps that had several branches growing on them. “They’ll train one as a (Christmas) tree, let the others survive,” he said. “Once the branch is trained as a tree —

they might have to do a bit of pruning — they’ll cut that tree at maturity. They can get two or three trees from a single stump.” He said wild trees can be purchased on Christmas tree lots. Most will come from south east of the province where it is drier and where they grow slowly. They have a naturally dense form, and it takes 15 to 20 years to get to 2 m in height. Farmed trees don’t achieve

‘Artificial trees need to be kept for 20 years for the carbon emissions to be equivalent to using natural trees’ – Professor Steve Mitchell

a conical shape by accident. They’re pruned and fertilised. They can be sprayed with herbicide to control insects. Since shipping farmed trees to the home accounts for about 50% of carbon emissions for these trees, the closer the Christmas tree farm is to the consumer, the less fuel will be used. “I’m not sure who ordained that Christmas trees have to be perfect cones,” Prof. Mitchell said. “I’m personally much more tolerant of defects. I have a little bit of Charlie Brown in me.” There are also live Christmas trees that come with the root ball. Most start out as farmed trees and end up after Christmas in the garden. A Christmas tree rental service has started in Vancouver that delivers a live tree to a home for three weeks and then picks it up and takes care of it for the rest of the year. The rental company is already sold out for Christmas 2012. Prof. Mitchell likes the smell of a real tree and grows his own. This year, he’ll be decorating a 2 m tall pine tree at his home that he grew on a 4 ha property he owns on Vancouver Island. – The Vancouver Sun

All signals are heading in the right direction

From Page 17

a huge ride? I would be careful.” Bruce McIntyre, consulting partner at PWC, said that although there are still uncertainties, he agrees that a

strong recovery is under way. “All the signals are heading in the right direction,” he said. He said that the recovery means stronger stumpage prices in BC, which will translate into increased resource revenues

for the provincial government. And a stronger forest industry will mean more people being put back to work. Mr McIntyre speculated that increased government revenues from the forest

products sector could provide

the provincial government with the flexibility it needs to deal with the reforestation of timber stands damaged by the beetle. – The Vancouver Sun.

COPYRIGHT NOTICE Items provided in this section of Timber & Forestry E news are drawn from a number of sources. The source of the item is quoted, either by publication or organizations in line with the practice of fair reporting.

Page 18 | issue 252 | 17.12.12

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au


CLASSIFIEDS

HOPPER FOR SALE

- Filt Air unit – 62 cubic metres, full length hydraulically operated. - Clam shell doors. 50 HP exhaust fan. 16000 CFM @ 13 inches. - 110/3.2 filter bags. Also comes with all switch gear.

Price $25,000 (+gst) Ex Heidelberg West, Victoria

Taswon Timbers editorial inquiries

tel: +61 32661429 Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

(a division of Grawend Nominees Pty Ltd) (ABN 39 005 104 021)

3-7 Northern Road, Heidelberg West, 3081 Vic. Tel: (03) 9457 4546. Fax: (03) 9459 4994 Email: taswon@bigpond.com issue 252 | 17.12.12 | Page 19


Timber & Forestry e news is published by Custom Publishing Group. Timber & Forestry e news is a full colour e magazine emailed every Monday to Decision Makers within the Australian and New Zealand Timber and Forestry sectors. Advertising is booked with a minimum 4 week booking with discounts for 12, 24 and 48 week bookings.

RATES

12 week- 7.5% Discount 24 week- 10% Discount 48 week- 15% Discount Classified ads can be booked in a per issue basis. All advertisements link to customer websites or email address with an option for rich text (flash). BENEFITS:

DIRECT PENETRATION via email. WEEKLY opposed to monthly alternatives. NEWS that is up to date that will ensure readership. COST EFFECTIVE advertising rates.

S

Display Ads

Display Ads Minimum 4 issue booking

Rate per Issue + GST $380 $210 $210 $165 $138 $83 $203 $90

Full Page Bleed Half Page Vertical Half Page Horizontal Third Page Horizontal Quarter Page Vertical Eighth Page Front Page Third Horizonal Front Page Masthead

Size Specifications Height x Width 303mm x 216mm 254mm x 93mm 125mm x 190mm 73mm x 190mm 125mm x 93mm 60mm x 93mm 73mm x 190mm 33mm x 45mm

Classifieds

Classified Ads per week

Half Page Vertical Quarter Page Vertical Eighth Page Horizontal Full Page Bleed

$182 $120 $72 $330

220mm x 93mm 107mm x 93mm 51mm x 93mm 303mm x 216m

Extras: Video Available Video next to front cover $200 per issue. Within the magazine $165 per issue.

Artwork Specifications: Please supply all artwork as High Resolution (300dpi) Pdf’s or jpegs. Send artwork to kerri@mycustompublishing.com.au

DISPLAY DEADLINES Booking – Noon Wednesday for Monday edition. Material – Noon Thursday CLASSIFIED DEADLINES Bookings & Material – Noon Friday Terms: Account Clients- 14 days New Accounts: Payment on Booking All Classifieds- Payment on booking (Credit card preferred)

All prices quoted plus GST and based on Art being supplied. We can create artwork if required – Eighth/Quarter $44 Half $66 which will be billed if complete art is not supplied to our specifications. Video: Maximum 3 meg swf file. Due to the regularity of timber & forestry e news and the tight deadlines no customer proofs can be sent.

Advertising Sales

Banner Ads &

T: (07) 3266 1429

Sales

Classified Ad Custom Group Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au Page 20 | Publishing issue 252 | 17.12.12

Production T: 0439 417Email: 671 203cancon@bigpond.net.au | 12.12.11 | PAGE 15 Advertising: Tel +61 7 3266 1429ISSUE

e: timberandforestenews@bigpond.com e: timberandforestenews@bigpond.com

e: kerri@mycustompublishing.com.au

www.industrye-news.com


Issue 252 Timber & Forestry