Australian timber industry news

  The forestry industry of Mississippi is bracing itself for a game-changing shift, following President Biden’s recent signing of the FY2024 Transportation, Housing and Urban Development, and Related Agencies (T-HUD) Appropriations Bill. Source: Forestat Global The T-HUD Appropriations Bill includes a provision that allows vehicles handling agricultural transport, such as timber-carrying trucks, to operate at weights up to the existing state limit of 88,000 pounds on an interstate highway within the borders of Mississippi. This provision was successfully integrated into the bill by US Senator Cindy Hyde-Smith. Before this change, sizeable agricultural vehicles were confined to operating only on state and county roads. The new legislation breaks down these limitations, providing a safer and more efficient environment for such transport. Ms Hyde-Smith pointed out that the provision is a significant step towards aligning state and federal laws. From a safety standpoint, it also yields the added benefit of moving traffic away from narrow, poorly lit, and often less-maintained roads. The senator emphasized that this change will not only boost public safety but also stimulate commercial activity in the state of Mississippi. Key industry bodies, including the Mississippi Forestry Association, Mississippi Loggers Association, and Mississippi Farm Bureau Federation, have been tireless advocates for this shift in transport allowances. The organizations have praised Ms Hyde-Smith’s understanding of the needs and challenges faced by the forestry and agricultural industries, her commitment to the provision, and her overall support to these vital sectors. The measure was approved as part of a comprehensive six-bill package. As the industry adapts to this significant change, the MFA promises to keep its members abreast of further details and implications. This change in transportation allowances promises to bring about a marked improvement in the safety and productivity of Mississippi’s forestry industry. Truly, a win-win for both the commercial sector and the public safety of the state. Key industry bodies, including the Mississippi Forestry Association, Mississippi Loggers Association, and Mississippi Farm Bureau Federation, have been tireless advocates for this shift in transport allowances. The organizations have praised Ms Hyde-Smith’s understanding of the needs and challenges faced by the forestry and agricultural industries, her commitment to the provision, and her overall support to these vital sectors. The measure was approved as part of a comprehensive six-bill package. As the industry adapts to this significant change, the MFA promises to keep its members abreast of further details and implications. This change in transportation allowances promises to bring about a marked improvement in the safety and productivity of Mississippi’s forestry industry. Truly, a win-win for both the commercial sector and the public safety of the state. For industry professionals, staying on top of the latest developments like the new federal truck weight limits is not just important it’s essential for ensuring competitive advantage, operational efficiency, and long-term growth. These changes can have profound implications on logistics, cost structures, and industry standards. Staying informed empowers businesses to pivot quickly, seizing opportunities and averting potential risks.

SCA is involved in a development project aimed at a remote-controlled soil scarification machine. Skogforsk leads the project and is responsible for the work in the testing environment, while SCA acts as the landowner and contributes with a base machine. Source: Timberbiz Skogforsk, the Forestry Research Institute of Sweden, has been working on remote control and automation of forestry machines for many years. So far, the work has been focused on a forwarder, but now a soil scarification machine will also be tested. The goal is to bring the technology of remote-controlled forestry machines closer to practical application. “SCA is involved in several development projects concerning forestry machines, and remote control is something we find particularly interesting. We have good experiences from the collaboration project with a remote-controlled timber loader at our timber terminal in Torsboda and are eager to participate in the work with a remote-controlled soil scarification. We contribute with a machine and land for test runs, while Bracke Forest provides the soil scarification attachment,” says Magnus Bergman, Manager of Technology and Digitalization at SCA Skog. Another reason why remote-controlled soil scarification machines are of interest is that soil scarification operators are exposed to harmful whole-body vibrations to a greater extent than other forestry machine operators. “We could create a better working environment and avoid vibrations if the machines could be remotely controlled from a separate operator station,” emphasizes Magnus. The remote-controlled soil scarification machine is gradually being developed during the spring to be tested on a clearcut on SCA land after the summer. The machine will then be operated by drivers from an operator station near the clearcut area.

As part of Business Finland’s Veturi funding for forest machine manufacturer Ponsse, Sitowise is working with Ponsse to explore the potential of artificial intelligence for smarter planning and optimization of loggings. Source: Timberbiz The aim of the project is to explore the use of AI and remote sensing data, as well as other data sources such as harvester data, to produce intelligent map data and services and to increase our understanding of potential customer needs. The main target groups are organizations involved in logging and timber harvesting. “The project will explore possible ways to produce intelligent map layers to facilitate harvesting planning, such as data describing terrain conditions, harvestability and wood quality,” says Sanna Härkönen, Product Business Lead at Sitowise. Bitcomp Oy (now part of Sitowise Oy) currently has a strong position in the market for services to the Finnish forestry sector. “We have already developed an easily scalable, cloud-based computing platform that we can use for AI-based data production. This will also allow for the convenient distribution of global map data. On top of this technology, we can explore and develop new services and products,” says Härkönen. The aim of the project is to identify and formulate tools that could help facilitate the most important work steps for customers. “The aim is also to explore the potential benefits of such map layers and tools along the entire logging value chain. The tools could, for example, help machinery companies to better optimize the use of their equipment and improve the preservation of environmental and natural values during harvesting,” says Härkönen. The benefits are expected to reach down to the operator level, as intelligent data can reduce the cognitive load on operators and improve the quality of their work. “The project will also look at different optimization methods to help plan harvesting and identify ways to take into account different forest use objectives. It also aims to test smart data in practice with test users, so that solutions can be better tailored to the needs of customers and users,” Härkönen added. Ponsse has existing international networks and activities across a wide range of regions in Europe, North America and South America, which are also the focus of this project. Business Finland awarded Ponsse’s and Epec’s FORWARD’27 program with 10 million Euro in funding in a challenge competition for leading companies. In addition, Business Finland awarded 20 million Euro in funding to the ecosystem companies surrounding the programme. The total budget of the Sitowise project is around 1.2 million Euro and the project will run for two years.  

Scientists at Scion are teaming up with international colleagues from Mexico and the USA to help Pinus radiata under threat within its native range. And, they might just help New Zealand’s native species in the process. Source: Timberbiz As part of the MBIE-funded Tree Root Microbiome program, scientists Steve Wakelin and Sarah Addison are focused on unravelling the connections between microorganisms, trees and environmental change, shedding light on how these relationships impact the health and resilience of our forests. “Like humans, trees have an extensive community of microorganisms like bacteria, fungi and viruses that live in and around them,” explains Addison. “And just like us, this microbiome plays a critical role in tree health.” Understanding how these tree-microbiome associations influence tree growth and survival is urgently needed; the world is changing. In many places the climate is changing faster than trees can adapt. Forests are recognised as one of the ecosystems that are most sensitive to climate change impacts, stresses Wakelin. “Trees are immobile and typically live for a very long time. This has implications for exotic and native forests alike. “How can seedlings of native trees, such as kahikatea or kauri that can live for many hundreds of years, continue to grow and be resilient as the climate changes around them?” A catalyst for the research was the desperate need for a system that will help everyone understand the interactions between conifer species and their microbiome, adds Wakelin. “We can’t set up trials today and come back in a hundred years and see how it has gone; the clock has been run down. We need to be smarter and look at what resources we have today to inform us so we can make decisions tomorrow.” The team’s focus for developing a model is Pinus radiata, the most widely planted conifer species worldwide. It is also a fast-growing species with a well-documented genome and established propagation methods. Scientists are visiting pine tree sites around the world to gain insights into conifer microbiome associations to inform conservation strategies and support tree health in diverse environments. Pinus radiata, while thriving in various regions globally, faces extinction threats in its native range near the central coast of California and Mexico. These fragmented native populations, existing for about 15 million years, have endured ice ages, droughts, and environmental shifts. These prolonged changes have facilitated the co-evolution of microbiome associations. The microbiomes found in these endangered populations of Pinus radiata hold crucial insights into how microbiomes can potentially support conifers on a broader scale. It is here that conservation efforts for the native Pinus radiata populations overlap with the need to climate protect conifers globally. As part of the program, Addison and Wakelin teamed up with researchers at Grupo de Ecología y Conservación de Islas (GECI), the Comisión Nacional de Áreas Naturales Protegidas (CONANP), the Universidad Autónoma de Baja California, and colleagues at Wright State University (Ohio, USA). Last November the multi-national team took samples on the Islands of Cedros and Guadalupe off the Mexico coast. For some in the group, the focus was understanding the root-microbiome associations and how these can be used to support regeneration efforts to grow populations. For others, knowledge is being combined with information from native Californian populations and samples collected from pine tree sites globally. This allows researchers to build a comprehensive picture of how root-microbiome associations vary with soil, climate, tree genetics and other factors. “These endemic trees in Mexico offer unique environments and untouched genetics,” says Addison. “The Pinus radiata we see growing elsewhere have been domesticated from these island populations. It is likely a combination of movement and successive selection of genetic material has resulted in a loss of many microbiome associations, but these may still be present within the precious populations.” Collaboration between Scion scientists, GECI and CONANP, has been fundamental to gaining access to these restricted populations and creates an important link between New Zealand and Mexico researchers. “It was through old-fashioned ‘two degrees of separation’ that we were able to connect with these researchers. It was really difficult to get to the trees and required a lot of co-ordination, but it was an amazing experience to be a part of. “The landscape was so different to New Zealand’s, with more a desert feel on Cedros Island and much colder and foggier conditions on Guadalupe Island which had very red soil in places due to its volcanic nature.” Back in the laboratory, scientists are now analysing soils and roots surrounding Pinus radiata trees to unravel their microbiome associations. This information is then linked with the environmental conditions, such as temperature and rainfall, to understand patterns of key microorganisms fundamental to radiata’s survival. “Some of the trees we sampled were over 300 years old. Can their key microbes be used to protect our trees around the world? That’s what we ultimately want to find out,” says Wakelin.

The Department of Agriculture Fisheries and Forestry sponsored six delegates from neighbouring countries to take part in two national plant biosecurity workshops recently. Source: Timberbiz The visit was part of the government’s $2.395 million commitment to Plant Health Australia as included in the Priority Pest and Disease Planning and Response program to enhance the nation’s surveillance and diagnostic capabilities. The delegates, from Timor-Leste, Papua New Guinea (PNG) and Solomon Islands, joined 150 attendees at the Annual Surveillance Workshop (ASW) and the Annual Diagnostic Workshop (ADW) in Tweed Heads, New South Wales. They also met with the department’s secretary Adam Fennessy PSM to discuss diagnostic laboratories and surveillance activities and undertook field trips in Queensland to look at programs such as the department’s vector monitoring activities. Australia’s Chief Plant Protection Officer, Dr Gabrielle Vivian-Smith said the department is working to foster collaboration and connectivity across borders and disciplines and thanked the delegates for sharing their experiences and knowledge during their visit. “The plant biosecurity workshops are hugely important in creating relationships, sharing knowledge, and ensuring that positive steps are taken to preserve and safeguard plant biosecurity in both Australia and neighbouring countries. “The workshops are a great opportunity for our near-neighbours to share their experience about plant health surveillance activities, especially around solutions for conducting remote surveillance and approaches to community engagement,” Dr Vivian-Smith said. Dr Vivian-Smith said the department works closely with Timor-Leste and PNG through the International Plant Health Surveillance Program and Timor-Leste Biosecurity Development Program. While the partnership with Solomon Islands is delivered through the Solomons Island Biosecurity Development Program. “Through these programs we can deliver annual plant health surveys and collaborate on a number of other biosecurity capacity development activities such as early warning systems, diagnostic training and border and pathway capacity. “This collaboration helps creates a more robust biosecurity system for the entire region, preserving food security and market access opportunities for our partner countries as well as supporting preparedness against exotic pest threats to Australia’s $81 billion agricultural industry.”  

The Australian Bureau of Statistics released its monthly building approvals data for February 2024 for detached houses and multi-units covering all states and territories. Source: Timberbiz “The last three months of detached house approvals remain down by 3.3% on the same quarter a year earlier, and 37.9% down from the peak three years ago,” stated HIA Senior Economist Tom Devitt. “The bounce back in detached house approvals from January disguises the continuing weakness in Australia’s housing market. “Recent leading indicators, such as new home sales, are still struggling to indicate any significant recovery in new home building. This is especially so in NSW and Victoria, where land costs are particularly burdensome for new home buyers. “Demand for new housing has been falling since the RBA started increasing interest rates in May 2022. “Multi-unit approvals also remain weak, down by 20.9% in February to record its weakest month in over a decade. This leaves multi-unit approvals 20.4% down on the same quarter last year and less than half the peak of the apartment boom almost a decade ago. “Higher density housing development is being constrained by labour, material and finance costs and uncertainties, as well as cumbersome planning rules and punitive taxes, especially on foreign investors. “This lack of new work entering the construction pipeline is occurring alongside record inflows of overseas migrants and a pre-existing acute shortage of rental accommodation across the country. “It is possible to build the Australian Government’s target of 1.2 million homes over the next five years, but it would require significant policy reforms which include lowering taxes on home building, easing pressures on construction costs, and decreasing land costs,” concluded Mr Devitt. In seasonally adjusted terms, dwelling approvals in the three months to February increased only in Western Australia, up by 36.6% compared to the previous year. Other jurisdictions saw declines in approvals, led by Victoria (-14.7%), followed by Tasmania (-14.3%), New South Wales (-13.4%), Queensland (-11.7%) and South Australia (-10.6%). In original terms, dwelling approvals declined in the Northern Territory (-45.0%) and the Australian Capital Territory (-32.3%).

Data from the FPA annual report 2022–23 show a continuing strong demand for specialist advice from the FPA about biodiversity, soil, water, geomorphology and cultural heritage, to support the development of forest practices plans on both public and private land. Source: FPA The total number of FPPs certified in the period has increased across all forms of forest practices, including native forest harvesting and reforestation, plantation operations, afforestation on cleared land, quarries and roads. The annual independent auditing and assessment program reported a high level of compliance within the industry. In order to support compliance with the system, the FPA conducted 16 training courses for the forestry sector and non-forestry participants on a range of topics. The trend of clearing forest to non-forest, primarily for agricultural use, continues to remain steady with 2,124 ha of plantations cleared and 476 ha of native forest cleared under a forest practices’ plan in 2022–23. The cumulative decrease in the area of Tasmania’s native forest cleared under FPPs and dam permits between 1996 and June 2022 is 158,670 ha or 4.9% of the estimated 1996 native forest estate. More details are in the FPA annual report 2022–23 at https://fpa.tas.gov.au/news/fpa-annual-report-22-23-tabled-at-parliament

Depending on the measures used and the grades included, 2023 saw Australia’s imports of packaging either stable (-0.2% or <1,000 tonnes) compared with 2022, or down by a more significant 8.6% or 23,000 tonnes. Source: IndustryEdge Why the two figures? It all depends what you measure. The convenient (and to be frank, the traditional) domestic proposition would be that the only materials to be measured are the raw substrates like Kraftliner, Corrugating Medium and Coated Paperboard. If that’s your preference, then in softer markets, Australia’s imports were down 8.6% in 2023, falling to 242.6 kt. The chart below show the declines over the last four years. Australian Imports of Packaging Paper & Paperboard: 2019 – 2023 (tonnes) The table demonstrates that imports of container materials (used mainly in corrugated packaging) grew in 2023, by about 17,000 tonnes. As we examine later in this analysis, much of this has come from Oji in New Zealand. A hefty fall of around 38,000 tonnes for imports of Coated paperboard is a little more perplexing. Again, most comes from New Zealand, but why the steep decline for material used for everything from cereal to alco-pops? We can anticipate that a sector rife with product substitution could be using a different grade or grades of Coated paperboard. A 25% decline is not a particularly likely scenario. Unless… the volumes of pre-converted Cartonboard imports has been rising, more or less at the same pace as the raw paperboard imports have been declining. This is where the data becomes interesting. Over 2023, imports of pre-converted packaging lifted 13.9% or around 21,800 tonnes, to total 178.7 kt. That is a clear record, and it results in the falling volume of raw packaging and industrial grade paperboard imports being replaced by the growing volume of pre-converted imports. Australian Imports of Pre-converted Fibre Packaging: 2019 – 2023 (tonnes) There are market drivers for some of the pre-converted imports – home deliveries anyone? There are also production dynamic drivers and the ever-narrowing information gap across the globe facilitates easier trade with a supplier, than ever before. Regardless, as the index chart below shows us clearly, the import trajectories are opposed to one another, while the total volume of imports is pretty-much stable. Index of Imported Packaging Paper and Converted Packaging Imports: 2019 – 2023 (INDEX) It is also important for us to recognise that imports of converted packaging have been cut, folded and printed from a larger volume of raw paperboard. That is, the 178.7 kt of ‘finished’ imports could be as much as 250 kt of raw paperboard equivalents. The suspicion must be that converted packaging imports are beginning to eat into imports of raw paperboard and perhaps doing so at an accelerating rate. That could have implications for domestic manufacturers, but especially for domestic converters. Since 2019, import prices for the main grades of Packaging and Industrial paper and paperboard have trended up. Even in the ‘sloppy’ year of 2023, when trade and markets were neither strong nor weak, the weighted average price lifted 1.7% to AUDFob1,444/t. That result was achieved mainly however by ‘non-major’ grades. Among the Containerboard (corrugating materials) grades, Kraftliner was the lone grade to experience an average price increase over the year, lifting a modest 1.2%. On the other side of the box business, Coated paper & paperboard or Cartonboard, saw import prices fall 3.7%. Australian Imports of Packaging Paper & Paperboard (Main Grades): 2019 – 2023 (AUDFob/t) On an annualised basis – despite its routine and occasionally large ups and downs – the Australian dollar was relatively stable with the US dollar. That has fed into the stability recorded for the free-on-board (Fob) price, but it is not the sole factor. The Fob price is what the goods are sold for, at the point where they are about to be lifted onto a vessel at the Port of Origin. Shipping costs therefore also play a significant role in the total or ‘landed’ price, measured in terms of costs, insurance and freight (Cif). As the chart and table below demonstrate, on an annualised basis, the weighted average CIF price for landed imports of paper and paperboard used in packaging fell 5.1% or about AUD85/t over 2023. Notably, the differential or the cost of freight specifically fell 40.7% on average across the year, declining from the record AUD268/t in 2022, to a more manageable AUD159/t in 2023. Australian Packaging Paper & Paperboard Import Prices: 2019 – 2023 (AUDFob/t, AUDCif/t & AUD/t) It is important that the patterns of imports change on a country-of-origin basis each year, especially for the cost of freight. If Australia imported solely from Indonesia (for example), freight costs would fall dramatically compared with North America. Perhaps unsurprisingly, over 2023, mainland Chinese manufacturers increased their imports to Australia, seeing a 54% lift in their contribution. However, as the chart and table indicate, New Zealand remains the major contributor, despite its volumes falling 19.0%, but still delivering more than one third of total imports. Australian Packaging Paper and Paperboard Imports by Main Country: 2019 – 2023 (Tonnes) Subscribers to the Pulp & Paper Edge Data & Information Service can sign into the IndustryEdge website and interrogate the data fully, at any time, so we will not provide country-of-origin pricing for each grade, just for each of the countries listed above. The pricing data points to the reality that price matters, even here, where the freight costs have been removed to show the ‘goods alone’ or Fob prices. As an example, a 43% increase in the average price of imports from the USA over the year has resulted in a 33% fall in imports, while a 16.8% fall in price for imports from China delivers a 15.7% increase in import volumes. Australian Packaging Paper & Paperboard Import Prices by Country: 2019 – 2023 (AUDFob/t & %) The ever-growing body of imports of pre-converted packaging appears to be playing alongside declining volumes of raw paperboard imports. That may be a matter of limited interest, but we […]

The reality is that even though wood is a renewable product, essential to the modern way of life, generally the market dictates what is valued, and for forestry this means big logs. The remaining slash (branches, stumps and offcuts) is then considered a waste product. Source: Timberbiz Forestry company OneFortyOne believes that this wood waste is both a design and a market flaw, and is putting its collective minds towards finding useful applications for this wood fibre previously only viewed as a problem. Mark Coghill, OneFortyOne Operations Manager, says the company has invested close to a million dollars into the biofuel project since late 2021. “The majority of the investment made has gone towards collecting, measuring and storing the wood fibre. Over the next five years we hope to reduce the amount of wood waste (or slash) in our forests by at least 75,000 tonnes. That’s enough wood to fill 2,000 logging trucks or cover 10 rugby pitches piled three metres high,” he explained. In a recent breakthrough, the company has signed a new five-year agreement with Canterbury Woodchip Supplies which will see wood fibre previously left in the forest now turned into biofuel, a renewable resource which can displace environmentally damaging coal. The timing of this coincides with local company JS Ewers new biomass boiler upgrade, and some of the wood will be used in their new boiler. With New Zealand committed to reaching net-zero carbon emissions by 2050, this development gives the Nelson Tasman area, where OneFortyOne manages its extensive forests – a path towards reducing its environmental footprint by choosing clean renewable fuel over environmentally damaging coal. There’s plenty of headroom for this product, as OneFortyOne’s forests cover some 80,000 hectares in Nelson Tasman and Marlborough, with a harvest of more than 1.2 million cubic metres each year. Removing such a massive quantity of otherwise unvalued material from the forests and turning it into biofuel in the form of woodchips could help local businesses avoid burning more than 22 thousand tonnes of coal over five years, says Mr Coghill, reducing carbon dioxide emissions by a whopping 50,000 tonnes. With a good deal of New Zealand’s coal being imported, there is a multiplier effect achieved, by using a locally developed product as an effective coal substitute. Furthermore, as the forests from which the wood is removed are renewable resources – currently, OneFortyOne’s plantations are in their fourth rotation, being replanted with new seedlings after every harvest – the wood itself is a regenerating asset. Coghill says slash is often regarded as a problem for the forestry industry generally, but notes that OneFortyOne decided to look at it as an opportunity instead. That led to talks with Canterbury Woodchips, a seasoned operator producing various processed wood products for use in parks, playgrounds, as animal bedding – and industrial boilers and other heating sources. Coghill notes ‘huge potential’ for the project if scaled up, adding that ‘it could be a game-changer for New Zealand in creating a sustainable source of bioenergy.’ Even as the ink dries on the contract with Canterbury Woodchips, Coghill says other avenues for turning trash into treasure are being explored. “We continually look for ways to improve slash management. Replacing fossil fuels with bioenergy alternatives can help meet emission targets and create new opportunities for the local economy,” he says. As a result of that continued work and investment, another promising emerging use for slash is as feedstock for the production of biochar. This carbon-rich solid product is produced from the pyrolysis (heating in the absence of oxygen) of biomass residues. Biochar is agriculturally useful, as a supplement added into feedstock it can reduce the methane produced from cows, it can improve soil properties, while offering further potential by sequestering carbon and mitigating greenhouse gas emissions. “As we look to the future and further innovation to help the environment, there is more wood fibre available and we are ready to work with other organisations to reduce the impact of slash, prevent climate damage, and create economic opportunities for the Top of the South region,” he says.

For more than 20 years, Sustainable Timber Tasmania’s Giant Tree Policy has been in place to protect live giant trees in Tasmania’s public production forests. Source: Timberbiz Sustainable Timber Tasmania actively searches for live giant trees in areas of forest planned for harvest. All giant trees identified during these searches of harvest areas are protected and not cut down. As part of a standard review process, Sustainable Timber Tasmania reviewed and updated its Giant Tree Policy in February 2024.  The policy has broadened its definition of giant trees to now include a diameter threshold. The policy defines giant trees as live trees that are ‘wider than 4m in diameter*’. Diameter is measured at breast height (dbh) approximately 1.3m above ground level on uphill side. Giant tree height and volume definitions remain unchanged in Sustainable Timber Tasmania’s Giant Tree Policy. As part of its review process, Sustainable Timber Tasmania considered stakeholder feedback.  Under its Giant Tree Policy, Sustainable Timber Tasmania will identify and protect live giant trees by establishing informal reserves in Tasmania’s public production forests View Sustainable Timber Tasmania’s Giant Tree Policy here.

From Sweden to Thailand, these stunning structures prove the inimitability of natural materials in architecture. Source: ArchitecturalDigest The works below explore the best designs that wood can provide, by top architects from around the globe pushing the material to its most elegant capabilities. Knarvik Community Church, Knarvik, Norway, Reiulf Ramstad Arkitekter, 2014. Nestled in the Norwegian wilderness, this dramatic angular church by Reiulf Ramstad Architects was constructed with mottled pine heartwood, which comes from the center of a branch or trunk and is known for its durability. Fogo Island Inn, Fogo Island, Canada, Saunders Architecture, 2013. Situated on the remote Fogo Island in Newfoundland, the Fogo Island Inn was designed by Saunders Architecture as part of a push to turn this former fishing community into an unexpected architectural destination. The timber hotel was inspired by the simple silhouettes of local cottages and stilted seaside properties. Fireplace for Children, Trondheim, Norway, Haugen/Zohar Arkitekter, 2010. The Oslo-based firm Haugen/Zohar Arkitekter built this wooden, igloo-like construct with materials left over from a nearby construction site in the Norwegian city of Trondheim. Intended as an intimate gathering place for fireside storytelling, the project was conceived in response to a brief that sought to create fun environments for local children. Office Off, Burgenland, Austria, heri & salli, 2013. The Vienna-based practice heri & salli got creative with this office building in Burgenland, Austria, which unsurprisingly is the HQ of a cladding company. The timber grid that wraps around the structure conveniently doubles as an abseiling tower. Timber House, Newmarket in der Oberpfalz, Germany, Kühnlein Architektur, 2014. Composed of two barn-like structures joined in the middle, this private home in Newmarket in der Oberpfalz, Germany, was conceived by Kühnlein Architektur. The entirety of the exterior is covered in untreated larch strips (that will weather to a silvery gray), concealing the home’s windows from the outside while letting daylight through to the inside. Volga House, Tverskaya, Russia, Peter Kostelov, 2009. This boxy country house on the banks of the Volga river in Tverskaya, Russia, is clad in wood panels that are angled in seven distinct ways. The Russian architect Peter Kostelov wanted to interpret Soviet era dachas (country houses) in a contemporary way by nodding to the slightly piecemeal sensibility of those historic homes. Mae Sot Dormitories, Bangkok, Thailand, a.gor.a Architects, 2012. These low-cost temporary dormitories in Bangkok, Thailand, are part of the Mae Tao Clinic, which offers healthcare and education to refugees of the civil war in neighboring Myanmar. Designed by Thai a.gor.a Architects, the buildings, which house 25 people, are made from locally sourced bamboo, thatch, and recycled timber. Barn B at Mason Lane Farm, Goshen, KY, USA, De Leon & Primmer Architecture Workshop, 2009. This striking large-scale shed in Goshen, Kentucky, was designed by the Louisville-based De Leon & Primmer Architecture Workshop. Crafted from locally grown bamboo, the structure is used for seasonal crop storage, and the airy construction allows for plenty of natural ventilation, which is required to dry hay. Liyuan Library, Beijing, China, Li Xiadong, 2011. This library’s unusual twig cladding was inspired by bundles of firewood that the Chinese architect Li Xiaodong noticed during early visits to the site in the countryside near Beijing. The sticks, sourced from local fruit trees, are aligned to allow sunlight to filter through to the interior. House K, Stockholm, Sweden, Tham & Videgård Arkitekter, 2004. The firm Tham & Videgård Arkitekter opted for black-stained plywood panels of varying widths to cover the entirety of this moody pine framework house in Stockholm, Sweden. Aspen Art Museum, Aspen, Colorado, USA, Shigeru Ban Architects, 2014 The woven wood screen façade and long-span timber 3D truss roof of this art museum make it a standout in downtown Aspen. When it was constructed in 2014, the building marked its Japanese Pritzker Prize-winning architect Shigeru Ban’s first permanent cultural structure in the United States. GC Prostho Museum Research Center, Kasugai, Japan, Kengo Kuma & Associates, 2010 Inspired by the traditional Japanese chidori toy (a grid of wooden sticks whose joints can be released with just a twist), this three-story gallery and research center for a Japanese dental prosthetics company is created with a lattice of square beams and columns made of cypress and zelkova. Kilden Performing Arts Centre, Kristiansand, Norway, ALA Architects, 2012 Comprising a concert hall, multipurpose performance spaces, and theater, the Kilden unites several regional performing arts companies within its glass-and-timber structure. Its architectural design is driven by a CNC-milled undulating oak wall, which encloses the aforementioned spaces and extends dynamically through the glass façade to the exterior of the structure. Inside, its form improves the acoustic condition of the building’s lobby. Landesgartenschau Exhibition Hall, Stuttgart, Germany, University of Stuttgart, 2014 In collaboration with Müllerblaustein Holzbau GmbH, Landesgartenschau Schwäbisch Gmünd 2014 GmbH, the forest administration of Baden-Württemberg (ForstBW), and KUKA Robotics GmbH, researchers at the University of Stuttgart designed and constructed this freestanding exhibition hall using robotically fabricated beech plywood plates, each only two inches thick. A prototype for a locally sourced, robot-built timber structure, the project explores new design capabilities of wood in combination with advanced building technologies. The Arc at Green School, Bali, Indonesia, IBUKU studio, 2021 Constructed of 46-foot-tall (or 14 meters) bamboo arches that are structurally supported by convex gridshells, this innovative gymnasium and wellness space for a school whose curriculum emphasizes sustainability is an exploration in lightweight, low-carbon design. Local architecture firm IBUKU studio conducted months of research and development in collaboration with Jorg Stamm and Atelier One to perfect its ribbed form. Though bamboo is technically a member of the grass family, it is composed nearly identically to timber, with a bark and an inner wood core.

Tropical forest loss declined last year, but other indicators show that the world’s woodlands remain under tremendous pressure, according to an analysis released by the Global Forest Watch monitoring project. Source: Reuters Destruction of forests helps drive global climate change. Because trees absorb climate-warming carbon dioxide and store it as carbon in their wood, that greenhouse gas is released when the wood rots or burns. This destruction also imperils biodiversity because of how many plant and animal species call forests home. Here are key takeaways from Global Forest Watch’s annual forest loss data. The loss of primary forests, those untouched by people and sometimes known as old-growth forests, in the tropics declined 9% last year compared with 2022. But Global Forest Watch researchers said the destruction remains stubbornly high. The world last year lost about 37,000 square kilometres of tropical primary forest, an area nearly as big as Switzerland. Global Forest Watch is a project of the Washington-based non-profit research organization World Resources Institute, using satellite imagery. Most of the data is compiled by University of Maryland researchers. Declining forest loss in Brazil and Colombia was largely offset by greater losses elsewhere, Global Forest Watch director Mikaela Weisse told a press briefing. “The world took two steps forward, two steps back,” Weisse said. Scientists consider tropical primary forests to be among the most precious as their lush vegetation is the most densely packed with carbon. These forests also are treasure troves of biodiversity. The Amazon rainforest, for instance, is home to at least 10% of Earth’s known species. Last year’s tropical primary forest loss caused greenhouse gas emissions equivalent to half of U.S. emissions caused by the burning fossil of fuels annually, Weisse said. Brazil, the Democratic Republic of Congo and Bolivia topped the ranking of tropical countries with the most primary forest loss. That is in spite of destruction in Brazil falling 36%, as President Luiz Inacio Lula da Silva pursued aggressive conservation policies, particularly regarding the Amazon. Neighboring Colombia experienced a 49% drop in forest loss. President Gustavo Petro made environmental preservation a key part of the peace process with armed groups that dominate jungle areas, Weisse noted. Forest destruction in the Democratic Republic of Congo remained relatively stable but high at around 5,000 square km. In third place, Bolivia experienced record-high primary forest loss for the third year in a row, with destruction surging 27%. Agricultural production and fires drove most of the loss. Deforestation globally rose 3.2% in 2023, according to the report. Forest loss includes natural destruction such as wildfires, pests and windstorms of woodlands that may grow back. Deforestation refers to people permanently converting woodlands to other uses such as agriculture and is harder to measure. More than 140 countries in 2021 committed to end deforestation by the end of the decade, a goal that requires huge declines in destruction each year, World Resources Institute forests director Rod Taylor said. “We are far off track and trending in the wrong direction when it comes to reducing global deforestation,” Taylor said. Brazil, Indonesia and Bolivia led in deforestation, followed closely by the Democratic Republic of Congo. Tree cover loss increased 24% in all forests globally in 2022, mostly because of enormous wildfires in Canada. Canada’s forest loss of more than 80,000 square km was three times higher than any year on record, offsetting a decline in forest loss in the rest of the world. “That is one of the biggest anomalies on record,” University of Maryland researcher Matt Hansen said. While deforestation in the tropics is a human-caused driver of climate change, the fires in Canada are more of a symptom of global warming, which leads to the hotter, drier conditions that fuel bigger blazes. “It’s a big deal, and it’s a cautionary tale for climate impacts to fire,” Hansen said.  

Paul Newman, Executive Director of Canada Wood Group/COFI returned to China after four years out of the market. He said China did not seem much changed from the one he last visited. Far fewer foreigners were evident though. Source: Timberbiz Over the course of a week, he had some very informative meetings with a number of key technical building contacts and institutions. He also participated in a workshop with the Chinese Academy of Forestry. It was obvious to him that the Chinese were eager for engagement and wanted more interaction with foreign stakeholders. Plans were made for future connections. He said it was also clear that these organizations are sophisticated and, in some respects, ahead of Canada in many work areas – carbon reduction, conformity assessment and anticipating global over-the-horizon procurement requirements. An example of the latter were preparations to comply with the EU’s future ‘Carbon Border Adjustment Mechanism’ (CBAM).  This is a European scheme (full implementation – 2026) to put a fair price on the carbon emitted during the production of non-EU carbon intensive goods entering the EU. At the moment wood is not on the list of applicable products.  It could be added in a planned expansion phase in 2030.  This was the first meaningful discussion Mr Newman said he had on the CBAM. Tensions between China and western nations are real but on the other hand China remains an engine of global manufacturing and a massive buyer. Other trading partners like the USA, New Zealand and Australia are working to shore up their China linkages. If climate change strategies are to be effective China will be central to decarbonization efforts.  

A Sydney-based detector dog from the Department of Agriculture, Fisheries and Forestry kennel was named one of the country’s top service animals at the Sydney Royal Easter Show. Source: Timberbiz Six-year-old black Labrador Retriever Vespa was honoured with The Australasian Animal Registry Service Dog Award for intercepting 1,300 biosecurity risk items across 129 commodities in 2023, the most of any biosecurity detector dog in the country. Agriculture, Fisheries and Forestry Secretary Adam Fennessy PSM congratulated Vespa’s handler, Perrie, on receiving the award at the Royal Agricultural Society of NSW’s Canine Hero Awards at the 2024 Sydney Royal Easter Show. “Congratulations to both Perrie and Vespa on being recognised for their very important work at Sydney’s International Airport and mail centre,” Secretary Fennessy said. “It takes a special type of person to train and work with our detector dogs, and Perrie and Vespa have displayed exemplary dedication to keeping Australia free from exotic pests and diseases. “The 2024 Service Dog Award is also a wonderful acknowledgement of the dedication of our biosecurity detector dog teams and the role they play in protecting Australia’s unique biosecurity status. “Vespa’s results show why detector dogs are highly regarded as a detection tool, and this year she sniffed out finds like beef burgers and smaller items, such as seeds.” Perrie, who has only worked as a handler for two years, said she was inspired to become a detector dog handler while watching the TV show Border Security. “As a handler, I can pursue my passion for animals and environmental conservation by protecting Australia from exotic pests and diseases,” Perrie said. “I feel a great sense of pride, celebrating the dogs’ successes and seeing the dogs reach new heights with their training. “I am very lucky to have such a wonderful colleague in Vespa, as she consistently brings a hundred percent to the work she does.” When she’s not hot on the heels of biosecurity risks, Vespa likes to put up her paws and unwind. “After a hard day’s work, Vespa likes to sit in the sun and play with her toy or have herself a tummy rub,” Perrie said. “When the weather is warm, Vespa loves to swim in the pool to cool off.” In the 2022-23 budget, the Australian Government committed $11.7 million to bolster Australia’s biosecurity detector dog capability and strengthen Australia’s biosecurity system by providing 20 additional detector dogs and 20 additional detector dog handlers.

Community projects in Auckland are experimenting with adding carbon to their soils, thanks to an initiative supported by Soil Pro and the Mazda Foundation. Source: Timberbiz Made by upcycling surplus forestry slash, the project was initiated by The Good Carbon Farm to produce carbonised organic matter – or biochar, as it is more commonly known. The biochar is being donated to Oke, who fund and build school gardens; and Restoring Takarunga Hauraki, a community-led organisation involved with multiple environmental restoration projects. “This project is repurposing underutilised biomass on our doorstep into something good,” The Good Carbon Farm co-founder, Joany Grima said. “When properly added to the ground, biochar becomes a long-term haven for beneficial microbes and nutrients, which plants love.” Plants are rich in carbon, so when they die and decompose, carbon is re-released into the atmosphere as carbon dioxide and methane. Converting plant waste into biochar is a circular system, capturing up to half the carbon that would otherwise have been emitted, while also creating a plant enhancing product. Oke will distribute the biochar to some of its Auckland-based school gardens. “Ever since launching the Oke Charity back in 2016, we have tried to both build school gardens and make them as sustainable as possible,” Oke founder, Paul Dickson said. “This has been achieved through ongoing relationships with the schools, working with amazing suppliers who come up with innovative products and collaborating with epic partners such as The Good Carbon Farm. Teaching the benefits of biochar gets our Mighty Kids thinking about the wider environmental impact of their school garden and helping them realise they’re learning in an outdoor classroom.” As well as enjoying international recognition as one of few negative emissions technologies readily available to reverse climate change, biochar increases yield from plants, improves soil and water quality, and reduces fertiliser and irrigation dependency. Restoring Takarunga Hauraki began experimenting with biochar in its nurseries this year, in an effort to reduce fertiliser use and decrease watering. “Our native plant nursery has been operating for a few years now and found a permanent home about a year ago in Devonport,” Restoring Takarunga Hauraki Chair, Anne McMillan, said. “We grow plants for the urban ngahere that are robust and locally eco-sourced. We were concerned about the emissions that fertiliser creates as well as their effect on fungi in the soil so this collaboration with The Good Carbon Farm was an awesome solution for us. “We are part of an Iwi and community nursery group always looking for innovation to grow better plants. We also want to look at using biochar to filter water that goes into our local streams as this is mostly runoff from roads and contains contaminants that can harm our native fish and invertebrates that live in streams. “Our mahi builds community through volunteers that manage native plantings, pest weed and pest animal control, stream and repo/wetland restoration and education. We are super excited by the potential of biochar.” Tomorrow representatives from The Good Carbon Farm and the Mazda Foundation will attend the Oke working bee at Nukumea Primary School where a new school garden is being constructed. On 9 April, Restoring Takarunga Hauraki will host The Good Carbon Farm and members of the Iwi and community nursery group at the Ngauteringaringa Community Nursery.

A new chapter has started for Forestry Corporation in Bathurst with the transformation of its 60-year-old building into a modern office space. Source: Timberbiz The original Forestry building, established by the former Forestry Commission in Panorama Avenue in 1963, has been rebuilt and renovated. Forestry Corporation Regional Manager Jason Molkentin said opening of the new building is a milestone in forestry in the Central West. “As one of the state’s key softwood locations in NSW, Bathurst has shared a long and prosperous history with Forestry Corporation over the decades,” Mr Molkentin said. “Forestry Corporation chose to inherit some of the character and charm of the original building into the new construction and the decision to rebuild enabled us to save expenditure on a total demolition cutting down on the amount of waste produced from the old building. “A key consideration with the project was hiring a local building company and using as many local suppliers and contractors as possible on the rebuild to ensure the return on investment to the local economy,” he said. Bathurst-based company Hines Constructions completed the project over a period of eight months. “We were particularly excited to be awarded the responsibility to rejuvenate and transform the Forestry Building, which is situated in our hometown of Bathurst,” Hines Constructions Managing Director David Hines said. “It’s always very rewarding to be involved in local projects, particularly the ones with historical significance. Working with Insight Projects and the Forestry Corporation was a great experience. “With enthusiasm and a collaborative approach by all parties, we successfully bought an old building back to life, improved its functionality and created a beautiful space for the staff. It’s a building that is aesthetically pleasing and one that enhances the appeal of Bathurst,” he said. The office area had several internal alterations and upgrades over the years, but largely the overall footprint remained unchanged. Mr Molkentin said the new office is around 40% larger than the original building and offers a modern office space for 46 staff members. “The challenge for our local architects Derek Moses and the team from Havenhand Mather was to create a modern workplace while maintaining the distinctive facade of the former building; maintaining this historical connection was important to staff,” Mr Molkentin said. “We were also very keen to feature timber in the new office and our architect and design teams have been able to achieve this by using timber in both aesthetic and structural application. “It was also pleasing to use products sourced from customers which Forestry Corporation supplies with its renewable log products,” he said. Forestry Corporation temporarily leased an office space in Bathurst and staff worked from home and local depots while the rebuild was underway. Given Bathurst’s changing weather extremes between summer and winter, insulation has been greatly improved in the new building for the comfort of staff. The building also has enhanced energy efficiency, modern componentry as well as solar panels generating power for the site. A purpose-designed fire room has also been installed where Forestry’s fire specialists will oversee bushfire and hazard reduction operations in state forests across the Central West.

Investment manager Cedar Pacific has joined forces with Japanese timber, housing and building materials giant Sumitomo Forestry on plans to develop a $1.2 billion portfolio of build-to-rent apartments, where much of the focus will be on sustainability. Source: The Australian Financial Review Under the deal, Japan’s Sumitomo will acquire just short of 50% equity stakes in build-to-rent projects undertaken in the JV partnership, starting with a $375 million development already under construction in Brisbane. Cedar Pacific – best known as a developer of student accommodation towers, but which flagged a move into BTR in 2020 – will retain a minority equity stake in each BTR project while introducing other investors into the deals alongside Sumitomo. Cedar Pacific chief executive Bernie Armstrong said the fund manager preferred to stay silent on the size of its BTR raising “until the capital is finalised”, but the initial portfolio of five assets and 1600-2000 rental apartments was expected to deliver unlevered yields of 5.75% to 6% on cost. The platform will establish a new BTR brand to be managed by Essence Communities, a subsidiary of student accommodation operator UniLodge Australia (which is majority owned by private equity firm Pamoja Capital, the backer of Cedar Pacific). It is the latest in an expanding pipeline of BTR platforms and projects aiming to deliver thousands of rental apartments in a market starved of supply. Salta Properties, owned by the Rich Lister Tarascio family, revealed last month it had ambitions to create a $3 billion BTR portfolio, while fellow Rich Lister Tim Gurner and his JV partner Qualitas have similar ambitions. Macquarie’s Local, Daniel Grollo’s Home and offshore players Greystar and Sentinel are some of the other prominent players in the nascent sector. BTR projects undertaken under the Cedar Pacific-Sumitomo partnership will draw on the Japanese company’s expertise in the development of timber building materials for residential construction and Cedar Pacific’s track record of developing and managing a $2.5 billion portfolio of 18 student accommodation facilities since launching in 2015. “There will be a high use of timber in these BTR projects, which will all be net carbon-neutral and aim to achieve five-star Green Star ratings,” Mr Armstrong told The Australian Financial Review. As an example of its commitment to achieving high ESG credentials, Cedar Pacific was in due diligence on the acquisition of an office building south of the Melbourne CBD for adaptive reuse as apartments, Mr Armstrong said. “We are looking at using lightweight timber on the roof to give us more storeys.” The JV partnership will be seeded with a $350 million BTR project in Brisbane already under construction by Hutchinson Builders and due to be finished by 2027. The 50 Quay Street development on the site of the former Children’s Court is part of a Queensland government BTR pilot project that will offer 475 rental apartments. Just over half of these will be available at discounted rent subsidised by the state government. The JV pipeline also includes projects in Canberra and Auckland. Savills Capital Advisors and Savills Australia and New Zealand are advising Cedar Pacific on its capital raise. Echoing the comments of others in the industry, Mr Armstrong said uncertainty over the tax regime for BTR investment was a major concern for offshore investors. “I just got back from a trip to meet with investors, and it’s the number one thing they are worried about. It just keeps changing so often. Foreign investors are worried that if they bring capital in, they won’t be able to get it out,” he said. “Large offshore institutional capital invests actively in this asset class in other markets, as do almost all the Australian super funds. But to date, their investment in BTR in Australia has been woefully low.” Mr Armstrong estimated about $400 billion of capital was needed over the next three years to deliver 200,000 apartments and keep up with housing demand being fuelled by record migration. “BTR is one potential solution, but not the only solution. I would expect it to grow in stature but not overtake build-to-sell units and single family homes. The point being that the problem is big, and we need to attract capital to fund the growth,” he said.  

The Albanese Government has introduced amendments in Parliament to strengthen laws stopping illegally logged timber from entering the Australian market. Source: Timberbiz Greater investment in timber testing technology, increased enforcement, expanded monitoring and investigation powers, as well as naming and shaming those who break the rules are all measures included in the new Bill. It is estimated that up to 10% of Australia’s annual timber and wood-based imports may be illegally logged and the trade in illegal imports reduces price of legal timber globally by 7-16%. Measures in the Bill will modernise and strengthen the Act, to better protect the Australian market from illegally harvested timber and timber products and support sustainable and legal timber trade into the future. Together, these amendments to the laws will help make Australia an even less attractive destination for illegally sourced timber and further protect Australia’s reputation in international markets as a supplier of sustainable and legally sourced timber products. This Bill will both uphold our reputation as a global leader through adopting further best-practice regulatory approaches, and help address the environmental, social, and economic harms of illegal logging and associated trade. Minister for Agriculture, Fisheries and Forestry, Murray Watt said the Illegal Logging Prohibition Amendment (Strengthening Measures to Prevent Illegal Timber Trade) Bill 2023 (the Bill) would modernise and strengthen current laws if it successfully passed through Parliament. “Australia’s illegal logging laws support a sustainable forestry industry and reduce the risk of it being undercut by illegal products.” Minister Watt said. “Australia was among the first country in the world to introduce laws targeting illegal timber and trade in 2012. “Our laws restrict the import and sale of illegally logged timber and timber products, and processing of domestically grown raw logs that have been illegally harvested. “Reforms will enable use of new innovations including cutting-edge timber identification technologies, to strengthen our ability to identify and act against those who jeopardise Australia’s legal and sustainable timber trade. “We know that Australian timber producers and environmental groups alike want to see these tools and techniques used effectively in Australia.” Minister Watt said illegal logging was a complex global problem, with significant impacts for Australia’s forest industries. “Illegal logging has devastating impacts on climate, nature, and people, and costs developing countries billions of dollars in lost revenue every year,” he said. “Australia is not immune, with trade in low-priced illegally sourced timber undermining supply chains, business decisions, industry profitability, investment, and jobs in the Australian economy. “Modernising Australia’s laws will help make Australia an even less attractive destination for illegally sourced timber and further protect our international reputation as a supplier of sustainable and legally sourced timber. “The Bill will allow us to continue to lead global efforts to combat illegal logging now and into the future.”

History is a great predictor of the future, and the log market is no different. March export prices have been released and it feels as though we’re trying to climb a barbed wire fence, but the problem is we’re currently stuck with one leg on either side, our crotch is snagged on a barb and our feet are slipping. We’re starting to feel some pain and we’re not sure how much more we’ll have to endure before our feet find firm ground. March prices have dropped around $10/M3 from February and while a drop was not entirely unexpected, the quantum is a pain point. There’s three key metrics that determine export log prices, CFR price (sales price in $USD in the export market), shipping costs and foreign exchange, and unfortunately all three are causing our feet to slip this month. It’s not unusual for CFR price to drop post Chinese New Year (CNY) holidays as the Chinese populous slowly return to work from the longest break of the year and take a while to crank the various industries back into life. Post-holiday demand has been very weak and, with NZ and other countries continuing to supply over the holiday period, inventories have increased around 1Mm3 to around 4Mm3. While historically this figure is at the lower end of the total inventory position scale post CNY, with consistently lower log demand now a new norm, 4Mm3 still represents around 65 days inventory which is similar to previous years’ when demand was significantly higher. Foreign exchange jumped a cent early in the month following the Reserve Bank Governors’ comments and a generally weaker greenback. Freight has caused our feet to slide the most with the Suez Canal scuffle increasing the bulk vessel demand in the Atlantic and resulting in a shortage of vessels in the Pacific. This has resulted in vessel costs increases of around $US8/m3 over the past 6 weeks and unfortunately, like Adrian Orr, these shipping issues are problematic and likely to be around for a while. The general outlook for China hasn’t really changed with the property market in its third year of downturn. The country’s leaders have just finished their week-long national congress with pledges to boost employment and stabilize the property market, which has historically made up around a quarter of the economy. However, much like Chloes’ recent post promotion speech, the CCP pledges are long on rhetoric and short on practical and workable solutions. There’s no hiding the demographical issues China is facing with a reducing and aging population which will struggle to fill the availability of new homes currently on the market. The IMF recently released their projections of a 45% fall in housing investment based on 2021 figures and asserted that ‘an accelerated cleanup of distressed developers and other policies will help smooth the path to a smaller, more sustainable role for real estate in the economy’. There’s no denying the need for a reduction in NZ supply to match the new level of demand in China and this is happening slowly. Volume from our cousins over the ditch has resumed into China, albeit at a low but not insignificant level, and supply from other countries has reduced to a trickle due to a myriad of issues. We have seen a couple of vessel head to India from NZ in recent months, but this isn’t a silver bullet – yet. NZ supply will seasonally start reducing as it gets wet and depending on how far into the undies the barb penetrates, the private sector supply will react accordingly. Longer-term fixed price contracts are becoming an important tool for forest managers to help de-risk the export returns for clients and provide exporters with some committed volume over the medium term with which they can plan sales and shipping rotations. Carbon continues to trade under $70/NZU with a slight rebound since the government recently announced it has changed its methodology around the calculation of the reserve price for future NZU auctions. Prior to this there had been a decline with a five-month low in early February with commentators noting a selloff likely attributed to an attempt to limit the auction reserve price. Following the changes to the National Environmental Standards for Commercial Forestry (NESCF) as a result of Gabrielle, new rules round slash management have been legislated with the requirement to remove slash over 2 meters in length and 10cm in diameter on orange and red zoned land (a large chuck of the NZ forest estate). In addition, there cannot be any more than 15m3/ha remaining in the cutover. This has created a fair degree of handwringing amongst councils and forest managers as to how to actually comply with this and how to monitor compliance. The implementation of this legislation nationally, rather than regionally, is a knee jerk reaction to the issues that doesn’t recognize the majority of the woody debris mobilized in cyclone affected regions were actually standing forests that were washed into waterways as the very unstable hillsides failed, rather than slash mobilized from the cutover. It’s going to be a very hard and costly piece of legislation to comply with, especially with the current level of mechanization which is not designed to deal with very small pieces of wood. So, it looks likely that the next few months may be a bit sticky in terms of prices. Domestic demand will keep the tiller steady, especially for pruned forests, but it may take a while to gain some solid footing on the export front. All going well, we’ll hopefully be able to replace our torn undies later in quarter 2. Marcus Musson is a Forest360 Director. He holds a Bachelor of Forest Science with Honours from Canterbury University, New Zealand, and specialises in steep slope cable harvesting, marketing and value recovery initiatives.

The expansion of one of the Clarence Valley’s largest timber factories, Big River Group, is a huge boost to the local economy and sets the bar high in supplying the sustainable manufacturing of high-quality specialist technical timber products across New South Wales. Source: Timberbiz The upgrade includes the installation of state-of-the-art machinery that will substantially increase Big River’s output, enabling them to supply an unprecedented volume of timber products. New South Wales State Nationals Member for Clarence, Richie Williamson, and Federal Nationals Member for Page, Kevin Hogan, were onsite for the official opening of the $22 million upgrade. The upgrade was supported with $10 million in co-funding from the former NSW and Federal Nationals Governments under the Bushfire Local Economic Recovery Fund to help consolidate the company’s operations. Mr Williamson said Big River Group has been part of the local landscape since the 1960s and has grown into a multi-million-dollar business that is renowned for its high-quality product and for being one of the Clarence Valley’s major industry employers. “Following the Black Summer bushfires in 2019, the long-term supply of logs for its operations was severely impacted and it became apparent there was insufficient log resources in the Tumut region to sustain the Wagga Wagga facility,” Mr Williamson said. “Big River Group made a business decision to consolidate its operations to a single site at Grafton, where a sustainable supply of both hardwood and softwood logs exist. “While this was a difficult decision for the company, it’s a positive outcome for our community and comes at a critical time after back-to-back challenges.” Mr Williamson said it was important to back projects that put people back in work, retain existing jobs and stimulate local economies, as well as deliver high-quality timber products to the construction industry well into the future. Mr Hogan said the $22 million project will increase the local workforce to 75, securing the jobs of existing employees and its 610 employees nationally. “I am focused on backing projects that are creating and retaining jobs across our region,” Mr Hogan said. “This project will enhance the production capacity for all plywood products, including high quality formply products, architectural panels and high strength plywood for civil construction.” Big River Group CEO, John Lorente, said the upgrade signifies not just an expansion of their operational capacity, but a commitment to innovation, sustainability, and the future of a timber industry in NSW. “With the support of the Forestry Recovery Development Fund Program, we are poised to make a significant impact on the availability of high-quality timber products, while also securing and creating jobs locally, regionally and nationally,” Mr Lorente said. “We are thankful for the support provided by both the Australian and NSW Governments through the Bushfire Local Economic Recovery Fund. The funding provided has been crucial in allowing us to modernise our operations and expand our team.”