ISSUE 311 | 31.3.14 16,000 delivered weekly to timber merchants, sawmillers, wood processors, foresters, members of national and state organisations and associations, builders, specifiers and selected architects.
An important link: forests and farms
Senator issues State of the Forests report at ‘international’ day luncheon in Brisbane THE forest industry was looking at ‘hands-on’ ways of how it could work alongside the agriculture white paper process, the Parliamentary Secretary to the Minister for Agriculture Senator Richard Colbeck said at an International Forest Day luncheon in Brisbane last Friday. He said the new Forest Industry Advisory Council, announced by the Prime Minister Tony Abbott at an industry dinner in Canberra earlier this month, would be structured to look closely at the forest sector’s future. “I think to start building a forestry white paper is an
The NATIONAL voice for • Timber Merchants • Suppliers
Official opening .. gathering at the new EWPAA office and laboratories at Eagle Farm in Brisbane last Friday are Ross Hampton, CEO, Australian Forest Products Association, Rob de Fegley, national president, Institute of Foresters of Australia, Senator Richard Colbeck, Parliamentary Secretary to the Minister for Agriculture, who dedicated the building, Peter Volker, forestry advisor to the senator, and Simon Dorries, general manager, EWPAA. The opening preceded the celebration luncheon for the International Day of Forests at Portside, Hamilton. See Page 2.
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INDUSTRY NEWS
Senator Richard Colbeck, Parliamentary Secretary to the Minister for Agriculture (fourth from left) and Simon Dorries, general manager, Engineered Wood Products Association of Australasia, with the special plaque commemorating the official opening by Senator Colbeck of the new EWPAA office and laboratories at Eagle Farm in Brisbane. Joining in the ceremony are EPWAA staff members, from left, Sonia Moore, administration manager, Ahasan Quereshi, EWPAA director, Suzie Steiger, laboratory manager, Dennis Morrell, company secretary, and Andrew McLaughln and Karrin Ryan, laboratory assistants.
Richard Colbeck dedicates new EWPAA offices and laboratories at Eagle Farm SENATOR Richard Colbeck, federal Parliamentary Secretary to the Minister for Agriculture and Forestry officially opened the new administration offices and testing laboratories of the Engineered Wood Products Association of Australasia in Brisbane on March 28. About 40 industry leaders and EWPAA members were shown through the new facility
by EWPAA general manager Simon Dorries and his technical staff. Senator Colbeck was in Brisbane also to address a special industry luncheon at Moda Events at the Portside tourist complex at Hamilton, which celebrated the concept of the International Day of Forests. “The transfer of EWPAA’s
headquarters from Newstead to Eagle Farm is a sensible move,” Simon Dorries said. “It consolidates all of the administration and laboratory testing facilities at the one site.” “EWPAA can now be justly described as providing the most up-to-date timber testing services in Australia, and possibly Australasia.” More reports, pictures next issue.
International Day of Forests
Meeting up at the official opening of the EWPAA office and laboratories at Eagle Farm in Brisbane are Jim Burgess, Blackbean Services, Brisbane, Rob de Fegley, national president, Institute of Foresters of Australia, and Paul Michael, CEO, Weathertex, Sydney, and chairman NSW Timber Development Association.
Page 2 | issue 311
On the deck at Moda Events Hamilton for the forestry day lunch are Alicia Oelkers, Queensland manager, TABMA Australia, Greg Dummer, director, Northside Trusses & Frames, Brendale, Qld, and Jenni Day, Versace Timbers, Brisbane.
Celebrating a day dedicated to forests .. Chris Hay, chairman, Timber Queensland, John Halkett, general manager, Australian Timber Importers Federation, and Colin Fitzpatrick, CEO, TABMA Australia. Looking over the new premises of the EWPAA in Eagle Farm areHenk Van Zetten, Queensland manager, Wesbeam, Ahsan Qureshi, Wesbeam and Noel Coxhead, Zelam, New Zealand.
INDUSTRY NEWS
Report gives valuable update on state of forests across Australia the management of Australia’s forests. The report was jointly produced by ABARES and state and territory agencies, as part of the national partnership that underpins forest reporting under the National Forest Policy Statement and the Regional Forest Agreements Act 2002.
From P 1
important thing to do, particularly given the integration of the industry with the agricultural sector,” Senator Colbeck said. The senator addressed more than 70 representatives from every industry sector at the luncheon which also introduced Rob de Fégely, national president of the Institute of Foresters of Australia, in his new role as cochair of the advisory council. Members of the FIAC committee will be announced soon, but it is believed at least two Queenslanders have been included. Mirroring Senator Colbeck’s vision for a forestry white paper, discussions on the first Agriculture Competitiveness White Paper opened in Tasmania last month, giving the community an opportunity to have its say about the future of agriculture. Minister for Agriculture, Barnaby Joyce and Senator Colbeck urge all Tasmanians with a passion for agriculture to contribute to the white paper process.
Similar process for forest sector is now on track “It is vitally important that those with ideas, enthusiasm and knowledge get involved in this process because it will outline how Australia can sustain and grow the sector into the future,” Minister Joyce said. “Now is your chance to think big. Now is the chance to put forward your ideas for creating a stronger, more profitable and more sustainable agriculture sector.” A matching process for forestry is now on track. “Forestry is important for regional Australia and regional jobs so that has to be part of the broader project,” Senator
Getting together at a celebration for the International Day of Forests in Brisbane are forest industry consultant Jim Burgess of Blackbean Services, Brisbane, Don Towerton, Thora Wholesale Timbers, Brisbane, Clarissa Brandt, communications manager, Timber Queensland, and Ross Hampton, CEO, Australian Forest Products Association, Canberra.
Colbeck said. “What are we looking to do as a government and one of the things we said at the election that we would do is to put regional forest agreements on a 20year rolling life, so we can give an investment horizon for the industry to look at,” he said. “I think that’s a really important thing that the industry can have the confidence that there is a period of time of resource security and funding so they can make those investments and have time to get a return on those investments. We understand that’s an important part of the industry. “Of course the other thing we need to be considering is the broader landscape management rather than management based on closing off certain areas. “The management system we have at the moment, if we don’t set it up to work for us, is going to provide a much greater threat to our landscape than the forest industry could ever have done. “We can look at biodiversity on a broader scale of landscape values. It’s pleasing some states are starting to look at that concept.” Senator Colbeck took the opportunity to release Australia’s State of the Forests Report 2013 at the luncheon, which appeared on the ABARES web page that afternoon.
This is the nation’s fiveyearly report on the status of Australia’s forests, based on an internationally recognised framework of seven criteria and 44 indicators. It presents ecological, economic and social data that can be used to understand
Three singled out for contributions to forestry report It presents collated and analysed data obtained from state, territory and federal government agencies and is funded jointly by ABARES and the Sustainable Resource Management Division of the department. Cont P 17
issue 311 | Page 3
INDUSTRY NEWS
Global voice for wood industry secures major funding from UK
Australian government seen as supporter for new forum THE Global Timber Forum – a new communication and discussion platform for the international wood industry – has taken a major step forward by securing significant funding from the UK Department for International Development. The forum is gathering industry support worldwide; its 2013 roll out and road-mapping summit at the Rome headquarters of the Food and Agricultural Organisation attracted delegates from 40 countries.
Global platform a critical outlet for exchange of ideas The secretary-general of the European Timber Trade
Page 4 | issue 311
André de Boer
Rachel Butler
Federation André de Boer said the inspiration behind the initiative was the growing number of issues – from climate change and sustainable development and construction to anti-illegal timber measures, where the timber sector needed to speak with a single voice.
John Halkett
Earlier this year, the forum’s website went live (www.gtfinfo.org), including a groundbreaking online survey. This will provide invaluable ‘foundation’ data for the forum making it an information, discussion and communications hub for industry bodies worldwide, and a channel for best practice and ideas exchange. Key areas covered in the questionnaire are economic development, poverty alleviation, deforestation, illegal logging, and climate change. It also addresses industry liaison with government and NGOs, skills issues, key business topics, and the scope of timber industry association activities. Forum facilitator Rachel Butler says support from the UK Department for International Development will underpin awareness-raising of the forum’s role and aims. “It will also accelerate development of the website to share information and contribute to capacity building in a sector that is dominated by small and medium sized companies,” she said. The Global Timber Forum website will include discussion forums where key topics will be debated and information exchanged along with news and events listings, blogs, links and detailed information
Cindy Squires
on the forum’s international membership network. Executive director of the International Wood Products Association Cindy Squires said her members were excited about the funding for the forum’s initial activities. “It’s critical that the global wood product industry has a platform for exchange of ideas, information and best practices,” Ms Squires said. “It will help ensure the continued relevance of our sector in the international market place.” General manager of the Australian Timber Importers Federation John Halkett, agreed.
Industry pushing hard to develop new technologies “The role of the forum is particularly pertinent at the present time when globally our industry is pushing hard to develop sophisticated products and building technologies to move timber into areas of building and construction projects previously the domain of concrete and steel,” Mr Halkett said. “The demonstration of faith by the UK Department for Cont P 8
INDUSTRY NEWS
2014 AROUND THE CIRCUIT APRIL 2014
AUGUST 2014
3-6: The Cats Are Keen in 2014. 44th Hoo-Hoo JIV Convention, Coffs Harbour. Contact Trish Waters, JIV Secretary, PO Box 42 Hampton Park, Vic 3976. Tel: 0418 358 501. Email jiv.secretary@bigpond.com
5-6: MobileTECH 2014: Primary Industries Future. Brisbane. 12-13: Auckland, NZ (www.mobiletech2014.com). These events will profile the latest mobile tools, technologies and innovations driving the future of primary industries (farming, horticulture, forestry, dairy, meat, wool, fisheries and mining). MobileTECH 2014 will showcase a wide range of mobile technologies and innovations, including smartphones, tablets, mobile apps, satellite mapping and communications, robotics, aerial drones, remote sensors, electronic tagging, intelligent data, M2M, real-time analytics and cloud-based platforms.
MAY 2014 19: Frame Australia 2014 conference and exhibition. In conjunction with the Engineered Wood Products Association of Australasia. Venue: Park Hyatt Melbourne. The conference theme is pre-fabricated timber and wood products in residential and commercial construction, including trends to using timber panels for buildings up to 5 and 10 storeys high. International speakers will provide global updates on equipment technologies and construction trends for timber frame and truss and wood panel systems in building. The exhibition display comprises 23 exhibitors from Europe, North America and Australia. For more information visit www.frameaustralia.com
JUNE 11-12: Wood Flow Logistics 2014 – Rotorua, NZ. 17-18: Melbourne (www.woodflowlogistics.com). This series will add a number of components from the steep slope wood harvesting event and will provide a practical update on innovations, strategies and technologies used by leading forest products companies to improve their planning, logistics and operations within the wood supply chain – from forest through to market.
6-9: AWISA 2014 exhibition. Brisbane Convention and exhibition Centre. Displays of panel processing, solid wood and timber machinery, tooling, manufacturing software, plus ancillary products such as dust extraction and materials handling equipment. Opportunity forn the cabinet, kitchen, furniture, joinery, timber, fit-out and panel industries to inspect new equipment. Inquiries about booking space: email info@awisa.com or call Geoff Holland. Tel: (02) 9918 3661. Fax: (02) 9918 7764. Mob: 0412 361 580. Email: info@awisa.com 7-8: DANA conference, Melbourne. The Australian forestry and forest products sector: its situation in 2014 and trends going forward. Bayview Eden Hotel, Melbourne. Speakers: Gavin Hoe, RISI China; Oliver Lansdell, global pulp specialist; Rodrigo Monreal, solid
wood products chief of Arauco, Chile; Matthew Wood, CEO Stora Enso Australia; Russ Taylor, president of WOODMarkets; Peter Barynin, lead economist with Boston USA- based RISI; Peter Zed (Australian sawmilling sector); Simon Dories, general manager, Engineered Wood Products Association of Australasia; Ross Hampton, CEO, Forest and Wood Products Australia; Steve Whitley, CEO, Forestry Tasmania. Conference includes panel of overseas plantation investors. Contact Pamela Richards at pam@prcc.com.au or visit www.dana.co.nz 11-12: DANA conference, Rotorua, NZ. The New Zealand forestry and forest products sector: its situation in 2014 and trends going forward. Novotel Rotorua Hotel, Rotorua. Web: www.prcc.com.au/ danamelbourne2014. Conference consultant: Pam Richards 61 3 5781 0069. Email: pam@prcc.com.au
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issue 311 | Page 5
FOREST SAFETY
Students invent swinging robot to handle dangerous forest work Machine designed to manoeuvre in steep, hilly terrain RESEARCH at the University of Canterbury could help cut the unacceptably high number of deaths and injuries in the New Zealand forestry industry. Engineering students are developing a robot that does the dangerous work, and it has already won them a major engineering prize – the Professional Engineers Institute’s top prize for a student project. Their forestry robot clings to a tree trunk and moves around the forest, rather like a chimpanzee swinging through branches. Senior lecturer Dr Stefanie Gutschmidt says it lets workers stay out of harm’s way.
Keeps forest workers out of harm’s way “The current industry is very hazardous with the big machinery and the people among the trees, so they came up with the idea the robot could do the job and they could remotely control the robot,” Dr Gutschmidt said. “We’ve developed a whole new type of technology which,
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Clings like a chimpanzee .. Dr Stefanie Gutschmidt and Dr Richard Parker look over the forestry robot developed by students at the Unversity of Canterbury.
if it all works in the full-size version, will be a new way of making forestry a whole lot safe.” The prototype doesn’t have a cutter – that will come next – but the robot is specially designed to manoeuvre in the steep and difficult terrain where many of New Zealand’s forestry accidents occur. Last year, 10 forestry workers died, prompting the establishment of an industrywide review.
Nathan Guy .. new forestry technology big step forward in improving both productivity and safety.
Crown research institute Scion is pushing for improvements, and senior scientist Dr Richard Parker says the team is breaking new ground. Dr Parker is a bit of a robot fiend. He also helped push the development of the underhouse robot used successfully in Canterbury to check on earthquake damage. University of Canterbury PhD student Chris Meaclem explains the forestry prototype is also controlled from a safe distance. “You simply just sit down with the joystick,” he says. “You just have to learn what direction is what. You push [which] way it moves and you’re good to go.” Meanwhile, NZ Primary Industries Ministers Nathan Guy and associate Jo Goodhew are welcoming commercialisation of new forestry technology as a big step forward in improving both productivity and safety. “The Steepland Harvesting Program is a very exciting Primary Growth Partnership (PGP) project, with $6 million in joint funding from the industry and the government and a vision of ‘No worker on the slope, no Cont P 7
FOREST SAFETY
Government, industry commit $700m to ‘primary growth partnerships in NZ From P 6
hand on the chainsaw’,” Mr Guy said. The new technology involves harvesting on steep slopes using new mechanised technology, rather than exposing forestry workers to risk. The project was demonstrated to around 55 forestry contractors and company representatives at a recent future forest research field day in Maungataniwha forest, near Napier. “These are the first products from the Steepland Harvesting Program to be put into commercial use, which is an outstanding accomplishment,” Nathan Guy said. “Operating on steep slopes is possible through the ClimbMAX harvester – an excavator-based system that uses a computer controlled hydraulic winch system to help with traction and mobility, and allows the machine to operate safely on steep slopes.” Four ClimbMAX harvesters are now operating in Nelson, Hawke’s Bay and in British Columbia, Canada, in areas considered dangerous for conventional tree felling and extraction practices. A fifth machine is currently under constructions. The PGP program has also refined and improved the Alpine Grapple – a hydraulic-controlled
Building consents up CONSENTS for NZ construction fell by 14% for both residential and non-residential building in January. However, given the extraordinary rate of growth seen in the past year, January consents were still up 21% year-on-year. Year-on-year increases in Canterbury were up 26%, while Auckland growth was kept to 4% year-on-year. Building consents from outside Auckland and Canterbury were up 29%.
hauler grapple designed to increase grapple use on steep land – to suit local conditions. A new camera system called CutoverCam also uses wireless camera technology to provide clear high resolution video footage of forestry operations on steep slopes. “This is a big step forward and this is another example of the success of the PGP program. We now have 17 projects confirmed with $700 million in funding committed from both industry and government. to work on steep, hazardous areas. It also means that ground crews
are in full view of the hauler operator who no longer needs to rely on radio messages and sound signals from the ground crews,” says Jo Goodhew.
Idea removes the need for ground crews “An estimated 40% of forestry-related accidents occur when forestry crew members are either tree felling or attaching and detaching the heavy chains or cables used to haul trees from the forest.
“The technology enabled through the PGP – and now available commercially – has the potential to reduce the number of work place safety incidents, while also greatly improving harvesting productivity.” “This is another example of the success of the PGP program. We now have 17 projects confirmed with $700 million in funding committed from both industry and government. “The potential benefit to the wider economy from these projects is expected to be around $7 billion a year from 2025.”
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issue 311 | Page 7
INDUSTRY NEWS
Jungle drums of concern sound louder now for NZ forest industry Pacific Rim log supply experts for Rotorua conference THE Chinese super-demand for softwood sawlogs from New Zealand and the US Pacific North West has strained relationships between the respective domestic sawmilling sectors and log sellers who have been enjoying the best years of their lives for some time. Several New Zealand sawmills have closed in recent years, including five in the last six months alone as mills struggle to pay export prices. In addition, regular news comes out of the US on the same theme: the difficulty in paying export log prices. As late as last week, one sawmill company reported on the challenge but said that it was “working with” log suppliers to gain access to logs. However, New Zealand forest industry analyst Dennis Neilson
Changes in the sentiment in softwood log export market moving forward in 2014.
of DANA has been noticing a change in the sentiment in that log export market moving forward in 2014. “The jungle drums of concern have been beating softly for a few months now, but have just
Being a TABMA member gives you: • Group buying discounts • Assistance with the placement of trainees & apprentices • CoC certification advice • Industry specific staff recruitment at competitive rates • National networking opportunities • An exclusive trade credit insurance plan • Technical advice and assistance • Industrial relations advice • WH&S audits • Annual Timber Industry Dinner Call 1800 822 621 for membership enquiries Page 8 | issue 311
moved up a decibel or two in the last week.” Neilson said. Reasons for a concern include reports from China that the government there is about to shake up the shadow banking sector after a binge of almost uncontrolled lending since 2008, which has to be brought under control; reports that in each “Year of the Horse” (as it is in 2014) the Chinese economy traditionally starts off well and then fades later in the year (with superstitious log buyers perhaps holding off to see what develops); and a surge in Eastern European imports as some country exchange rates plummet. Neilson comments that in the short term, the log import industry in China is as much about trading, going long and going short on log and lumber prices by numerous financial players, as it is about
fundamental log demand. If the financiers of log and lumber buying, and of building companies using wood, get spooked, there could be a reaction which would see a reversal of log prices, maybe starting around May. “While accurately predicting anything in China is as difficult as finding MH 370, there is perhaps a 50% chance of a significant price correction by mid- year,” Neilson suggests.
Reaction might see a reversal of log market In the medium term, China log prices are so important to the New Zealand forestry sector that Neilson has invited not one, but two internationally recognised experts on Pacific Rim log and lumber supply, demand and pricing to the DANA New Zealand Forest Industry Sector Conference in Rotorua on August 11 and12 to discuss their views going forward. They are Russ Taylor, president of Vancouver- based WOODMarkets, and Peter Barynin, lead economist (North American timber) for Bostonbased RISI. Mr Barynin was the highest marked presenter at the Cont P 13
Potential support from other stakeholders From P 4
International Development could secure further support for the forum from other governments and stakeholders, including from Australia.” The Global Timber Forum was launched at a time when the dayto-day business of the sector was being impacted by factors that increasingly cross national
and regional boundaries; from timber legality requirements and wider environmental issues, to new regulation, and technical and design developments in end-user markets. Key participants will be lead timber and associated industry organisations around the world making this a truly global communication tool.
INDUSTRY NEWS
Refrigerated transport operator warms to position as ATA chair Goal: better health for truckies THE Australian Trucking Association has elected wellknown refrigerated transport operator Noelene Watson as its new Chair. Mrs Watson is the managing director of Don Watson Transport, one of Australia’s leading refrigerated logistics companies. She has been a director of the ATA since 2004 and is a past director and treasurer of NatRoad, one of the ATA’s member associations. Mrs Watson said one of her goals as ATA chair would be to work for better health for truck drivers. “I want to promote better health and wellbeing for our drivers in the transport industry, and especially the support services available to drivers,” she said. “Our drivers are away from home for so much time that they don’t have access to all the services that should be made available to them. “I’d also like to see drivers treated in a professional manner while fulfilling their transport task. This is a big issue for drivers on the road. They quite often aren’t treated professionally, and it then reflects back on our own businesses, and it’s left to operators to deal with this.” Mrs Watson said she would like to promote a more professional perception of the transport industry to the
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Noelene Watson .. drivers should be treated in a professional manner.
public, and work with member organisations to achieve common goals. David Simon has retired after serving four years as ATA chairman. “David has worked tirelessly with the NHVR, the NTC and politicians on behalf of transport operators and the ATA,” Mrs Watson said. “He’s been a marvellous public face for our industry.” The ATA elected the president of the Australian Furniture Removers Association, Andrew Garrety as its new treasurer/secretary, following the retirement from the role of Kathy Williams. The elections were held at the ATA’s annual general meeting in Canberra last week.
Less red tape: more building jobs MASTER Builders has welcomed the government’s red tape repeal legislation. “The Bill is another important signal that the government is open for business in following through on its election commitment to slash the burden of over regulation and
associated compliance costs,” CEO Wilhelm Harnisch said. “But it should only mark the start of the process; the building industry doesn’t want Red Tape Repeal Day to be the one shot in the locker for abolishing over regulation,” he said.
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issue 311 | Page 9
FRAME AUSTRALIA
Timber panel, engineered wood multi-res systems gain ground Wider acceptance of timber in building beyond housing THE building of dwellings with timber frames has been a tradition for hundreds of years, and in many countries throughout Europe this has not changed. But in recent years, the construction of multi-residential and commercial buildings in timber has become the most favoured construction system in many of these countries.
Building quality leads to lower usage of energy A number of factors have contributed to wider acceptance of timber as a building system beyond housing, but speed of construction, reduced labour
Page 10 | issue 311
Montage 13 .. another another example of prefab panel construction in Europe.
on-site, and improved building quality leading to lower energy
consumption are all high on the list of benefits being achieved.
In Australia, a growing interest in timber panel and engineered wood systems in construction is gathering support as a more cost-effective and efficient building method instead of using the traditional materials of steel and concrete. This change in construction material will have a major impact on buildings in the future, and is a major topic at the Frame Australia 2014 conference and exhibition, now in its 16th year and being held at the Park Hyatt Melbourne on May 19, in conjunction with the Engineered Wood Products Association of Australasia. Conference director Kevin Ezard said that for decades the construction of detached Cont P 11
FRAME AUSTRALIA
Comparisons: traditional materials vs commercial timber construction creating off-site construction to reduce time on site,” he said. Conference speakers include residential developer Australand, who will explain their move to timber panels for a five-storey medium density residential development in Parkville, and how the developer is achieving faster construction outcomes with improved financial returns.
From P 10
housing in Australia had relied on timber framing with prefabricated roof trusses, floor trusses and walls, with a highly efficient and economical result for the builder and home owner which was unlikely to change in the short term. However, in multi-residential dwellings and commercial buildings, a construction revolution was currently under way with the use of prefabricated timber panels to reduce the time required on-site and lower costs, which would be explained by developers and timber system suppliers at the one-day conference. “In previous Frame Australia conferences the main topic has been the manufacture of timber trusses and frames, but the industry is now moving
Timber paneling systems are cost competitive Detached dwelling being built completely in CLT panels, which is common in Europe.
forward with panel systems as an extension of the existing frame and truss pre-fabrication process,” Mr Ezard said. “Greater value is added with
the floor and wall components pre-assembled in the plant and delivered to site for the panels to be lifted into place with a mobile crane, effectively
A presentation by WoodSolutions of interest to developers and builders will outline results from a cost comparison of traditional building materials Cont P 13
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issue 311 | Page 11
INDUSTRY NEWS
Photo makes mockery of world heritage proposal Big increase in
China’s forests
THIS photograph was taken inside the recently extended Tasmanian Wilderness World Heritage Area. It is an example of an area that Labor, the Greens and ENGOs say is pristine, untouched forest. They claim this forest has “outstanding” wilderness values and is suitable for Wilderness World Heritage listing. The fact that areas like this are now included in the Tasmanian Wilderness World Heritage Area makes a mockery of the Labor/Green nomination to extend the area in 2013. It is an embarrassment to the World Heritage process and compromises the outstanding universal values of Tasmania’s original World Heritage Estate. – SENATOR RICHARD COLBECK, Parliamentary Secretary to the Minister for Agriculture. – Photo by Richard Colbeck.
THE area of forest plantations in China has increased by 7.64 million ha from 61.69 million ha in 2008 to 69.33 million ha in 2013. ITTO says the stocking volume increased 522 million cub m from 1.961 cub m in 2008 to 2483 million cub m in 2013. China’s national annual timber consumption was reported at about 500 million cub m with around half pof this imported. National timber consumption is forecast to rise to 800 million cub m by 2020, says ITTO. To achieve this goal it is planned that 4 million ha of domestic plantations will be established annually to create a strategic reserve. In addition overseas investment in forestry will be expanded. At the moment China has more than $US15 billion invested in foreign forestry projects and has rented or purchased about 40 million ha. Of forested land in other countries.
Population growth needs housing supply strategy THE demographic statistics just released by the ABS imply the continuation of strong demographic demand for housing. The Housing Industry Association says the figures show Australia’s population grew by just over 100,000 in
the September quarter of 2013, reaching 23.24 million. The result provides annual growth of a relatively strong 1.8%. The natural increase in population (births minus deaths) added 164,428 people in the year to September 2013. That represented an increase of 2.9%
over the corresponding period a year earlier and contributed 0.7 percentage points to the overall annual population growth. Net overseas migration increased by 1% in the year to September 2013 to 241,018. This element of population growth contributed 1.1
percentage points to the overall annual population growth. HIA says it is vital that the implications of stronger population growth for housing demand are reflected in a clear and strategic focus on housing supply policy from all levels of government.
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Page 12 | issue 311
CELEBRATION
China log prices important to the NZ forest sector From P 8
February RISI-DANA New York City conference on timberland investment. “With only one or two speakers to confirm, we have a full program,” Dennis Neilson said. Some of DANA’s other international speakers include Rodrigo Monreal, solid wood products chief of Chilean giant company Arauco; Brian Frank, CEO of Canadian forest owner TimberWest who will provide his experience operating in a log export restricted country; global pulp and wood pellet specialist Oliver Lansdell from Hawkins Wright in London; and Peter Zed on the vital Australian market for New Zealand solid wood products. In addition, DANA has several experienced New Zealand speakers, including Brian Stanley chairman of the NZ Wood Producers Association, who will set the scene for the meeting, Other local speakers are David Balfour, CEO of the huge
against timber construction in commercial buildings, comprising four buildings rigorously subjected to cost planners scrutiny with a sevenstorey apartment building; a six-storey office building; a portal frame structure; and a two-storey aged care building. Results will show that timber panel systems are competitive in cost, with an analysis of where the main cost differences occur, and an outline of the benefits timber construction has over traditional materials. International expert speakers from Europe, UK, the US, Canada and New Zealand will provide overviews on prefabricated construction trends, along with speakers on how
Australian Forest Industry Sector Conference August 7 and 8, 2014 Almost all speakers are already confirmed for the 2014 DANA Melbourne Conference. It is time to register now to take advantage of the Earlybird rate! There will be many “highlight” presentations at the meeting, all presented by recognised and highly regarded speakers on:
• A key note address by Ric Sinclair of Forest&Wood Products Australia overviewing the sector, its status and direction.
• The volatile but vibrant Australian plantation forestry business: Brian Frank .. experiences in restriction of log exports.
Kaingaroa forest management company KT (managing trees part-owned by Harvard and by Canadian pension fund PSP); Indufor’s Marcel Vroege on the panel industry; Tom Boon, CEO Taranakipine, on secondary wood processing; Geoff Manners of CFK on whether it is economic to plant trees in New Zealand anymore; and a number of others. To register visit www.prcc.com. au/danarotorua2014/ or contact Pamela Richards at pam@prcc. com.au
National gathering of delegates at FRAME From P 11
DANA Melbourne
these concepts can be applied locally to reduce building costs and generate more affordable housing. Other presentations at the one-day event will be on timber and engineered wood products of the future, manufacturing equipment for pre-fabricated timber and panel systems, and the successful design and construction of panelised timber buildings in Australia. The Frame Australia event is unique in creating a national gathering of delegates from both the timber and engineered wood and building design and construction sectors. For more information visit www.frameaustralia.com and save with early bird on-line registration before April 17.
will 2014 finally see an end to the recent wholesale ownership churning? • The rapidly growing Australian log export trade. China just gets hungrier and hungrier, including into 2014. How far can it go? • The Australian softwood and hardwood woodchip trade. 2013 ended with the highest ever exports of hardwood chip from Australia to China – by far. Will this continue? India took 11 shipments of woodchips in 2013 (mostly from Australia); and 2014 is stacking up to be a record if price requirements can be met. Will India be the next hardwood chip mecca? • Just how much pulpwood does Australia have? • The global and Pacific Rim softwood log and lumber supply demand and supply balance. Is a supercycle in the making? Two international speakers share their views. Any impact on the Australian industry. • The Australian sawmilling sector. Ready for a rebound? A presentation on the impacts of competition from European and from Chilean lumber producers will be highlights of the meeting, as will a view from a high profile Australian speaker. • The Pacific Rim Wood Panel industry and where Australian production might fit in the future. • A presentation on the global and Pacific Rim pulp industry status and supply and demand projections going forward by UK based Hawkins Wright. The perennial Australian pulp expansion question discussed. • The Australian paper industry and its direction. • Australian woodpellets: Korean demand is skyrocketing; from zero recently to 500,000 tonnes in “In 2014 w 2013 and some say to more than 2 e are unlikely to million tonnes in a few years. Will see such a strong li this mean a revival in Australian ne-up of internatio production and exports? nal and domestic presenters • Tree-based carbon; moribund covering a ll importan recently, but with a new aspects o t f the Austr government and a new policy, alian F o re stry and F what chances of revival? orest Products Industry”
To register immediately, visit www.prcc.com.au/ danamelbourne2014 and follow the register link or contact Pamela Richards at pam@prcc.com.au issue 311 | Page 13
INDUSTRY NEWS
National interest in 21st Gottstein wood science course in Melbourne DELEGATES from across Australia spent five days understanding the value chain from sawmilling to finished product and learning about the anatomy of wood at the recent 21st Gottstein Wood Science Course. The course, run with the assistance of CSIRO and the University of Melbourne, covered both hardwood and softwood processing and benefits of the timber industry overall. Key note addresses were given by FWPA managing director Ric Sinclair and FWPA CEO Ross Hampton. Both spoke about innovation in the forest and wood products industry.
‘Meeting passionate individuals from the timber industry’ The Gottstein Wood Science Course has been running about every two years since its inception in 1978 and continues to attract delegates from different areas of the industry with different levels of understanding and backgrounds. Comments provided by the delegates included “It was fabulous to meet passionate individuals from the industry” and “I will have a greater respect
Getting the good word on wood science in Melbourne .. Joe Carter, HQ Plantations, Trevor Anderson, Hyne, Eileen Newbury, FWPA and Steve Gillespie of Hazelwood and Hill.
for the material and all the different aspects of wood”. When asked about the personal benefits of the course responses included, “it was great to get exposure to others in the supply chain and their issues” and “greatly increased my knowledge of wood and the whole timber industry”. The Gottstein Trust will run a forest science course in February 2015. The wood science course will return in 2016. The Gottstein Trust is the national education trust for the forest and wood products industries and has been assisting people in the industry
Focusing on the business of wood science .. Steve Gillespie of Hazelwood and Hill.
with development opportunities for more than 40 years. Through fellowship and award programs, the trust provides financial assistance for successful applicants in many areas within the forest products industry and helps them advance in their professional fields. To promote the development of the forest products industry as a whole, the trust disseminates fellows’ findings through reports that are published regularly, and organises seminars and short wood science courses for industry professionals. The Joseph William Gottstein
Memorial Trust Fund also initiates annual appeals to generate income for the fellowship and award programs. The Gottstein Trust has four types of funding programs that are granted to industry professionals and students each year – thee Gottstein Fellowship, the World Forest Institute (WFI) Intern Travel Assistance, the Gottstein Industry Award and the Gottstein Forest Industry Scholarship. Proposals are welcome from any area of the forest industries, including forestry, manufacturing, sales, marketing and IT among others.
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INTERNATIONAL FOCUS
The truth about building with wood: new online resource for Canadians Site brings up exciting wood building technologies
THE Canadian wood industry marked its annual World Wood Day on March 21 with a significant initiative aimed at ensuring Canadians, from builders, contractors and architects to environmentalists and policymakers, have the information they need to make informed decisions about building five and six-storey mid-rise buildings with wood. The Canadian Wood Council and its partners have developed the new online resource Wood Facts, aimed at providing relevant, easily understandable and timely information related to safety, building codes, environmental impact and the economic benefits of building with Canadian wood products. The website provides easy to use fact sheets, case studies and relevant reports at the click of a mouse. Over the course of the coming year, changes will be recommended around the way Canadian homes and businesses are constructed. The website compiles information on the new wood mid-rise opportunity, including images, videos, press releases, backgrounders and more.
Wood is safe, costs less and is versatile “The truth about building with wood is that it is safe, costs less, is versatile, meets code and has a lighter environmental impact,” says Michael Giroux, president of the Canadian Wood Council. “It’s incredibly important for Canadians across a wide spectrum to understand these facts, particularly as we find the construction industry evolving and incorporating new and exciting wood technologies into buildings.”
Construction Type’. “Wood is safe,” says Garis, “and this new online tool developed by CWC is a highly useful resource when seeking information related to this topic.” The new website will act as a valuable resource for the public, media and the construction industry looking for detailed relevant and factual information that addresses important questions around upcoming changes to the Model National Building Code of Canada.
Only structural building material grown by the sun
The Woodcube, one of the ‘smart material houses’ on display at a European exhibition, shows how one of the most traditional building materials – sold wood – can be used to produce extremely energyefficient, low-impact multi-storey buildings.
Michael Green of Michael Green Architecture says wood has become an increasingly important part of his practice; it is the only structural building material grown by the sun, and design professionals, contractors, developers and policy makers need to work to ensure its viability in even more building types, including taller structures.” The initiative comes at a time when competing industry has questioned wood construction, but a number of new studies in both Canada and the US show that wood is as safe as any other material in completed construction projects. “We know from in-depth research that there is little difference in fire spread, death and injury rates across general construction types, provided the buildings are properly
Michael Giroux .. construction industry evolving and incorporating new and exciting wood technologies into buildings.
equipped with smoke alarms and sprinklers,” says Len Garis, City of Surrey, BC, fire chief who led the February 2014 report ‘Fire Outcomes in Residential Fires by General
In addition, the website will host guest blogs and a newsfeed that is continuously updated with the latest news stories related to the wood industry. Visitors can browse a variety of case studies and videos that demonstrate the potential opportunities around wood mid-rise buildings in Canada and the United States, and have access to important quick facts under the ‘Did You Know?’ section. This website (woodfacts.cwc. ca) will also act as a launching pad for the Canadian wood industry to share information and grow the online community that supports the spreading of factual information around building with wood. The Canadian Wood Council is the national association representing manufacturers of Canadian wood products used in construction. CWC is a strong advocate for the use of life-cycle assessment and communication about the environmental attributes through the use of environmental product declarations.
issue 311 | Page 15
INTERNATIONAL FOCUS
Burma’s log export ban to brighten timber industry outlook in Malaysia Likely knock-on effect for plywood supply and prices
BURMA’S upcoming ban on log exports will have a positive effect on Malaysia’s timber sector on the back of relatively stable demand from India and Japan. RHB Research Institute analyst Hoe Lee Leng said Burma (Myanmar) would start to ban log exports from April 1 in a bid to eradicate wood log smuggling and conserve its nation’s forests. The research firm observed that Burma is the fifth-largest tropical log producer and thirdlargest exporter in the AsiaPacific region. The research firm believed that Malaysia’s log prices will be undergoing a re-rating as Burma caters to more or less the same export markets as Malaysia in terms of tropical log exports.
Burma ban bid to eradicate log smuggling With Burma following Indonesia’s ban on exporting logs, all logs harvested in Burma will have to be processed domestically and exported as downstream products such as plywood, the analyst explained. “Looking back at history, when Indonesia banned log exports in 2001, Malaysia went from having a 43% log export market share to a 58% market share,” Hoe observed.
largest remaining expanses of forests, from the slopes of Himalayan foothills in the north to steamy rainforest in the south. But it has been disappearing fast. Forest cover shrank almost a fifth to 47% of land area in 2010, from 5% in 1990, Forestry Ministry data shows.
Forest cover has shrunk by almost a fifth to 47pc
Logging out .. Malaysia’s log prices will be undergoing a re-rating as Burma caters to more or less the same export markets as Malaysia in terms of tropical log exports.
“In view of this development, we expect tropical log prices to start to go up again from the second half of 2014, after the existing inventory of logs held at importing countries declines.” As of year-to-date, the analyst noted that log prices had been relatively stable. To take into account the impact of Burma’s export ban, the research firm raised the log price assumptions for 2014 and 2015 by 5-7% to $US250 to $US270 per cubic metre. Although Burma’s export ban should have a knock-on effect on plywood supply and prices, RHB
Research at this point of time has maintained its plywood price assumptions, growing at 2-3% year-on-year for 2014 and 2015. The analyst explained that the price assumptions were based on lacklustre demand from Japan. Hoe pointed out that while Japan continued to witness good housing project development which grew 11% in 2013 and 12.3% year-on-year in January this year, plywood import volume did not rise by the same quantum in 2013, growing marginally 3.3 % y-o-y. Burma has some of Asia’s
Total timber exports of 1.24 million cub tonnes in the fiscal year to March 2013 brought in more than $1 billion in revenue, government figures show. While timber remains an important income stream for Burma’s rulers after a quasicivilian government took over from the military in 2011, it is not as critical as before. To recognise Burma’s economic and political reforms, the European Union, the US and other countries have eased or lifted sanctions, allowing foreign investment in sectors such as telecommunications. The reforms are now reaching into the forestry sector, with the government ready to put conservation above profit. The ban is likely to hurt the forestry industry, which generates about 90% of export earnings from raw logs and not finished products.
Changed building code allows for taller wood buildings SIX-storey wood buildings could be coming to Ontario this year as the British Columbia government moves forward on a proposal to make amendments to the provincial building code. Currently, the building ode permits construction of wood-
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frame buildings up to four storeys. “The proposed change will result in the construction of safe, affordable mid-rise buildings that will bring new housing and rental options to our communities and vibrancy to our streets,” a building
industry official said. “More importantly, we believe this proposal will help cities and towns achieve their goals of planning for the up to 100,000 people and 50,000 jobs.” The proposal follows changes in British Columbia which saw more than 100 building
projects built as a result, giving consumers in the province new housing and rental choices. Proponents of the changes say increasing the height limit for wood construction will provide builders and developers with more options.
INDUSTRY NEWS
State of the Forests report: factual information on a wide range of topics From P 3
The report draws on significant in-kind contributions from all jurisdictions and underpins Australia’s forest reporting requirements to the international community, including the next Global Forest Resources Assessment for the Food and Agriculture Organisation of the United Nations due for release in 2015. The State of the Forests Report provides factual information on a wide range of topics, including: the area of forests by type and tenure; forestry production, trade and employment; forest-dependent communities; forest conservation and biodiversity; forest fire; forest carbon stocks; soil and water resources in forests; the legal and institutional framework for forest management; indigenous owned or managed forests;
and research and development relating to forests and forestry. Key points in the report show Australia’s forests total 125 million ha – about 3% of the world’s total forest area, and the seventh-largest reported forest area of any country worldwide. SOFR 2013 reports that the area of commercial plantations increased to 2 million ha by 2011. Over the reporting period, the annual area of multiple-use public native forest harvested for wood decreased, as did the volume of wood produced from native forests, while the volumes of wood harvested from plantations increased. In 2010-11, plantations produced 76% of Australia’s total log supply. The report shows the total number of people directly employed in the forestry sector has fallen from 85,000 people in
Providing brochures summarising the State of the Forests Report to guests at the celebration lunch in Brisbane for the International Day of Forests are Department of Agriculture officers Dr Steve Read, director, forest sciences, Land and Forests Branch, and Dr David Cunningham, assistant secretary, natural resourceds. Department of Agriculture, Canberra
2006 to 73,000 people in 2011, and also shows a reduction in the
capacity to conduct and apply forest research and development. Three Department of Agricultural officers were each singled out for their major contribution in the compilation of the report – Dr David Cunningham, assistant director, natural resources; Dr Steve Read, director of forest sciences; and Claire Howe, senior scientist. Although the luncheon was on March 28, the event took the opportunity to recognise the importance of the International Day of Forests (March 21), which was proclaimed by the UN General Assembly. The event, organised by Brisbane Hoo-Hoo Club 218, was supported by the Institute of Foresters of Australia, TABMA Australia, EWPAA, Timber Queensland, ATIF and Timber and Forestry enews.
07 3266 1429
issue 311 | Page 17
INDUSTRY NEWS
Fitec-TABMA merger satisfies industry demand for training across all sectors Sronger infrastructure will benefit both associations NATIONAL training provider Fitec Australia Inc. is to merge with the Timber and Buildings Materials Association. Registered by the Australian Skills Quality Authority, Fitec Australia delivers nationally recognised vocational qualifications and a range of short course training across all sectors of the forest and timber industry, including sales, warehousing and logistics. Fitec Australia members at their annual meeting on March 27 voted unanimously to merge with TABMA Australia, subject to ASIC and ASQA approvals. Over recent months, there have been independent and extensive discussion and analysis by both industry associations as to how the training needs of the forest and timber products industry might continue to be supported into the future, given increasing constraints around delivery and funding.
Keen commitment to ensure training demand continues The primary consideration for Fitec Australia members has been the positive assessment of TABMA Australia’s keen
to be led by its current general manager Tim Isaacs.
An opportunity to maintain training base in Brisbane
Colin Fitzpatrick .. supporting employer clients in a more sustained manner.
Chris Hay .. management committee structures of Fitec will remain in place.
commitment to ensure that training demand continues for the Queensland industry. Fitec Australia president and Timber Queensland chairman Chris Hay said the merger created a fantastic opportunity for Fitec Australia to continue to grow and enhance its ability to service the forest and timber products industry, both in Queensland and beyond. “The flexibility and quality provided by Fitec over its 15year history, together with expansion of scope over recent years, will now be supported with a far stronger infrastructure than could be maintained within
the constraints of a stand-alone training environment,” Mr Hay said. “Management committee structures of Fitec will remain in place throughout and beyond the transition period of the merger.” TABMA Australia chairman Peter Hutchison also welcomed the move. “We are delighted to strengthen our immediate ability to service our Queensland and NSW members, while simultaneously supporting the future of training delivery throughout the forest and timber products industry.” Fitec Australia Inc will continue
“The opportunity to maintain our training base in Brisbane, while assisting TABMA in provision of delivery to members over all its service areas, is fantastic in an environment where development opportunities need structured investment beyond current funded projects,” Mr Isaacs said. His role will now focus on marketing, service delivery and product development, with TABMA undertaking the considerable administrative burden of operating in a regulated environment. TABMA Australia CEO Colin Fitzpatrick said the merger would allow TABMA to support its many employer clients in a more sustained manner, leveraging the training abilities and reputation of Fitec Australia with the administrative abilities and membership base of TABMA. “We look forward to a long and successful relationship,” Mr Fitzpatrick said.
First Forests fund acquires 21,000 ha forest estate NEW Forests Australia New Zealand Forest Fund 2 (ANZFF2) has completed its first acquisition, a 21,000 ha forestry estate. The properties were sold by the Australian Sustainable Forestry Investors Fund. New Forests announced the final close of ANZFF2 on March 7 with $707 million in commitments. ANZFF2 is a successor fund to
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New Forests’ first regional timberland fund, which completed its acquisitions program in 2013. It currently manages more than 1.5 billion in plantation and forest sector assets across Australia. The estate is distributed across some of the country’s prime forestry regions, with 61 properties located in the productive Green Triangle border region of Victoria and
South Australia and seven in southwest Western Australia. New Forests CEO David Brand said the purchase was an ideal initial transaction for the new fund; it provided immediate cash yield from land rental and gave the fund entry into two key timberland regions of Australia. About two-thirds of the estate is under a single rotation lease to a third-party
forestry company managing Eucalyptus globulus (blue gum) plantations. The other third of the land has already come off lease as a mix of coppice crop and second rotation plantation. The estate will be retained as E. globules plantations or in some cases converted to pine plantation or returned to agriculture after harvest.
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PUBLIC AFFAIRS MANAGER Become part of a small but highly professional team which develops and manages a range of media and government relations strategies for dealing with a wide range of complex issues facing the forest and wood products industry. The Victorian Association of the Forest Industries (VAFI) is the peak industry organisation for forest and wood products businesses in Victoria. It represents forest growers, harvest and haul businesses, wood and paper processors and associated businesses and organisations. As Public Affairs Manager, you will be expected to develop strong relationships with Government, Opposition, the media and other key stakeholders, and to represent VAFI in a range of public forums. You will also be required to work closely with members and other industry organisations. Your overall goal will be to help the CEO advance and protect the interests of the Association and its members.
This role is a full time position with the opportunity to build your media, government relations and project management skills, and professional networks. To succeed in this role, you will need to have media and government relations skills with an understanding of government and politics, and strong communication, advocacy, policy and relationship management skills. Website, social media and other high level computer skills will also be looked upon favourably. Before applying please email Tim Johnston at tjohnston@vafi.org.au to obtain the selection documentation. Applications close Friday 04/04/2014.
issue 311 | Page 19
297x210mm Vertical 254x93mm Horizontal 125x190mm Vertical 125x93mm Horizontal 73x190mm Horizontal 73x190mm Vertical 140x44.5mm 110 Vertical 34x44.5mm
297x210mm Vertical 254x93mm Horizontal 125x190mm Vertical 125x93mm Horizontal 51x93mm
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