Forest Products Industry

Every five to seven years, Skogforsk, the Swedish forestry research institute, carries out its comprehensive Timber Value Test – the forest industry’s most established and independent assessment of how well harvesters preserve timber value. Source: Timberbiz In the 2025 test, several leading machine manufacturers took part, including Komatsu Forest with a brand new 951 equipped with the C144 harvesting head. The test focuses exclusively on timber value, not on productivity or fuel consumption. Evaluated areas include positioning accuracy, measurement accuracy, cross-cut quality, and functions for value and assortment optimisation. A new parameter in this year’s test was the accuracy of stem and log positioning. Here, Komatsu demonstrated very strong results. Stem positioning showed an average deviation of 16 cm; the highest precision recorded in the test. Log positioning also showed high accuracy, although in that test Komatsu Forest was the only participating manufacturer. The results reflect Komatsu’s long-term commitment to precision within Smart Forestry, where reliable positioning data is becoming increasingly important for the future of digital forestry. Measurement accuracy is a key factor in preserving timber value. In the test, the Komatsu harvester measured diameter with 83% of logs within ±4 mm, placing it among the top performers. Length measurement was also at a high level, with particularly strong accuracy for saw logs. This, in turn, provides solid conditions for consistent bucking and stable value recovery over time. The Timber Value Test provides the industry with an objective and comparable picture of how different solutions contribute to preserving timber value. For Komatsu Forest, the results show strong performance in several key areas, not least precision and measurement accuracy. At the same time, the test offers valuable guidance for continued development, with a focus on long-term, value-driven harvesting.

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Indonesia is opening its forestry carbon market to communities and private players under a new regulation designed to accelerate emissions trading and unlock the economic value of its vast tropical forests. Source: Jackarta Globe The government has officially launched a new rule governing carbon trading in the forestry sector, allowing companies to offset emissions by funding forest conservation, while enabling local communities to earn income from protecting ecosystems. Forestry Minister Raja Juli Antoni said the regulation marks a shift toward a more inclusive and transparent carbon market after years of slow progress. “This regulation is a concrete step to strengthen governance in forestry carbon trading, so it becomes more credible, transparent, and inclusive. We want to ensure that the economic benefits of carbon are felt by communities while supporting national emissions reduction targets,” he said at the launch in Jakarta. The rule, Forestry Ministry Regulation (Permenhut) No 6/2026, sets out the mechanism for carbon trading through an offset scheme, allowing emitters to compensate for greenhouse gas output by investing in sustainable forest management and protection. Beyond market development, the policy is aimed at reshaping who benefits from conservation. The government said communities living around forests will no longer be passive observers, but active participants in carbon management. Raja Juli said that the forestry carbon market must not become exclusive to large corporations, highlighting expanded access through social forestry and customary forest schemes. “Indigenous communities and forest farmers who protect forests, maintain forest cover, and preserve ecosystems will now have the opportunity to gain economic benefits from carbon,” he said. “This is a form of state recognition for frontline forest guardians and a tangible expression of social justice in the transition toward a green economy.” Presidential envoy for energy and climate Hashim Djojohadikusumo said the policy reflects Indonesia’s growing role in global climate action. According to Hashim, Indonesia’s carbon pricing framework has been presented at international climate forums, including in Brazil, and received positive responses, signaling rising confidence in the country’s potential as a carbon market player. “This is a concrete demonstration of Indonesia’s commitment to balancing economic development with environmental protection. The international community sees strong potential in Indonesia’s forestry-based carbon trade,” he said. The government expects the regulation to accelerate the formation of a transparent and accountable carbon market, while helping meet Indonesia’s Nationally Determined Contribution (NDC) targets.

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Forestry has long sat at the margins of the insurance market, often folded into broader property portfolios and lightly scrutinised. That position is becoming harder to sustain. The class now requires a level of focus and expertise the market has not always applied, said Daniel Longden, head of forestry at Orvia Underwriting. Source: Insurance Business The sector differs from traditional property risks in one fundamental way: it is constantly changing. Trees grow, are harvested and replanted, altering the risk profile year by year. That dynamic sits alongside an exposure to catastrophe events that can erase entire areas in a single incident. “When you look at a forest fire or a hurricane, for example, they can just flatten entire areas or burn entire areas of forestry,” Mr Longden said. “It’s a truly cat-exposed business.” Even neighbouring forests can behave very differently. Variations in species, management practices and geography mean that no two risks are alike. “One of my favourite things that I always say about forestry insurance is that no two submissions are the same. Everything is entirely different.” This variability complicates underwriting and limits the development of standardised data sets, helping explain why the class has remained relatively niche despite growing investor interest. The way forestry risk is assessed has shifted markedly in recent years. Where underwriters once relied heavily on historical loss data and third-party reporting, satellite technology now offers a more direct view of exposure. “We review a 25-year history of what’s called burn scar data: the scar map of a burn over 25 years around the plantation and the surrounding areas,” Mr Longden said. “That has been a huge influence on the way we price, because we can see the data without relying on the client to tell the truth, or on fire associations to provide meaningful, accurate data.” Yet improved data has not removed uncertainty. Climate change is reshaping loss patterns, rendering long-term historical data less reliable. “Traditional pricing is backward-looking,” he said. “The issue with climate change is that it’s forward-looking and getting worse.” The response has been to shorten data windows and apply additional catastrophe loadings, particularly in regions already experiencing heightened fire and wind activity. Events once considered rare are occurring with increasing frequency. “One of the biggest things we’ve seen in recent years is that the one-in-250-year events are becoming one-in-100-year events, or even one-in-50-year events,” he said. Despite advances in modelling, underwriting retains a strong human element. “We’ll have all the data in front of us, we’ll have looked through everything, but it comes back to the team to sit down and work out what we know about that region, what we know about the risk, and what we’re comfortable with,” Mr Longden said. Interest in forestry as an asset class has expanded rapidly, driven in part by carbon markets and the search for long-term, stable returns. Investors range from small landowners to large timber investment management organisations overseeing millions of acres. “It’s an area that is drawing investment from the biggest investors around the world,” Mr Longden said. Forestry’s appeal lies partly in its insulation from geopolitical and financial volatility. “Trees don’t fight with people. Trees don’t make people angry. People don’t want to invade someone for their trees,” he said. “It’s a very safe asset class.” Yet insurance capacity has not kept pace. A history of poorly understood risks, often written within property treaties, has left some reinsurers wary. This retrenchment has contributed to a supply imbalance. Many forest owners remain uninsured, with self-insurance acting as the market’s primary competitor. High-risk regions dominate the insured pool, reinforcing elevated pricing and limiting broader uptake. Advances in technology are reshaping how forestry risks are analysed and priced. Satellite data, global weather models and internal pricing tools now allow underwriters to assess risks in regions that were previously difficult to evaluate. Artificial intelligence has also begun to play a role, particularly in assessing unfamiliar markets and geographical locations. “AI gives you the ability to go in and really dig deep into what the actual feelings on the ground are about forestry, what regulations they have, what management practices they tend to observe, and how it behaves as an area from a forestry perspective,” he said. Even so, he remained clear about its limits. “That final sit-down and discussion will never be replaced by technology, as it does not see the full picture,” he said. The challenge now is less about access to better tools than the ability to use them well. Without that depth of expertise, forestry risks will continue to be misjudged or sidestepped, even as climate volatility makes them harder to ignore.

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The City of Perth is set to celebrate its fourth annual Tree Month this May, with a vibrant program of more than 30 free community events designed to connect people with nature and support a greener, more sustainable city. Source: Timberbiz Tree Month has become a much-loved fixture on the city’s annual calendar, raising awareness of the importance of preserving and growing Perth’s urban forest while encouraging the community to take practical action. “Tree Month returns this May for its fourth year, and we’re proud to once again deliver a program that brings our community together to celebrate and grow our urban forest,” City of Perth CEO Michelle Reynolds said. “This month-long program highlights the importance of protecting and expanding our tree canopy, while encouraging people to take simple steps towards more sustainable living. “The 2026 program offers a diverse range of activities designed to help people connect with nature, including community planting days, kids’ nature play, educational workshops, stories in the park and yoga under the trees, as well as organic growing sessions and sound meditation. “It all kicks off on Friday 1 May with Music Under the Trees, a special lunchtime performance in Council House Gardens, followed by a community planting at Matagarup (Heirisson Island) on Saturday 2 May,” he said. As part of Tree Month, the city will plant 60 trees and more than 3,500 plants across key locations, including Matagarup (Heirisson Island) and Arden Hill Reserve. School planting events will also be held in partnership with Mercedes College and Trinity College. The City of Perth is home to 43 parks spanning 116 hectares, located along the picturesque Swan River and neighbouring Kings Park, making it a natural haven for residents and visitors alike. Initiatives like Tree Month support the City’s ongoing commitment to sustainability, as outlined in the Urban Forest Plan (2016–2036), which focuses on protecting and enhancing tree canopy coverage. This year’s program builds on the success of Tree Month 2025, which saw the community plant nearly 1,000 trees and plants across the city.

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At its core, the preference for PEFC-certified timber is about confidence and accountability. Architects are responding to growing expectations around sustainability, transparency, and compliance. Source: Timberbiz Across Australia’s leading architectural projects, a clear trend is emerging architects are not only choosing timber for its performance and aesthetic appeal but increasingly insisting on PEFC-certified materials. The 2025 Timber Design Awards, sponsored by Responsible Wood, the PEFC national member for Australia, highlighted how certification has become integral to delivering credible, future-ready architecture. Certification provides independently verified assurance that timber is responsibly sourced and traceable throughout the supply chain, critical in meeting ESG requirements and aligning with green building frameworks. For many projects, this decision is closely connected to environmental sensitivity and place-based design. At the Nebraska Residence on Bruny Island, certification was essential due to the site’s ecological significance. “Choosing certified timber was particularly important because of the site’s high ecological value, surrounded by protected white gum forests and habitat for the Forty-spotted Pardalote. Using certified timber allowed the building to sit lightly within its environment, demonstrating that thoughtful design can coexist with conservation and protect natural habitats,” Lara Maeseela, of Lara Maeseela Architect Hobart said. This reflects a broader shift: certification enables architects to translate environmental intent into verifiable action, ensuring design decisions support conservation outcomes. Certified timber also strengthens regional supply chains and local industry. Projects such as KROSS HOUSE and the First Building at Bradfield City Centre in New South Wales prioritised locally sourced materials, supporting domestic forestry while reducing transport emissions. At Bradfield, certification enabled scale and flexibility. The design team said it prioritised locally sourced timber, with the aspiration of using 100% Australian product, to help build capacity in the local industry. Certification provided a framework to integrate both Australian and international timber within a single trusted framework, demonstrating how PEFC supports large, complex projects without compromising sustainability standards. Performance is another key driver. Certified timber is not selected at the expense of technical requirements, it enhances them. In projects such as Boot Factory, engineered timber systems improved structural performance, fire resistance, and acoustics, while enabling prefabrication and construction efficiency. Certification ensures materials meet both technical and ethical expectations, giving architects confidence in their specifications. PEFC-certified timber also plays a vital role in low-carbon and circular construction. Timber stores carbon, reduces embodied emissions, and supports prefabricated systems designed for disassembly and reuse. Certification ensures these benefits are grounded in responsibly managed forests, directly linking climate performance with sustainable forestry practices. Combining sustainability with cultural value Beyond performance, timber carries strong cultural and experiential value. In the Consulate General of Malaysia in Melbourne, it is central to the architectural narrative. According to Cheah and Saw Architecture certified timber ensured the project’s use of timber was both culturally meaningful and environmentally responsible, aligning this symbolic material with contemporary sustainability expectations. It ensured traceability, durability, and ethical procurement, reinforcing the project’s broader commitment to long-term environmental stewardship. Here, certification reinforces not only environmental outcomes, but also the integrity of architectural expression. Together, these projects show that the choice of Responsible Wood/PEFC-certified timber is driven by a convergence of factors: verified sustainability, supply chain transparency, performance reliability, carbon accountability, and cultural relevance. For Australian architects, certification is no longer optional – it is essential. As timber construction continues to scale, PEFC certification ensures this expansion remains grounded in responsible forest management, supporting a built environment where design excellence and environmental stewardship go hand in hand.

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Koondrook–Perricoota Forest is an internationally important site and a New South Wales Central Murray State Forest Ramsar site recognised for its genetic and ecological diversity. Source: Timberbiz It contains rare wetland types–floodplain lakes, meadows and reed swamps. Koondrook–Perricoota Forest represents a substantial proportion of the total river red gum forest in New South Wales and, when flooded, supports large numbers of waterbirds. Report cards provide scores which represent the percentage of site-based ecological objectives met in the year. Overall, the Koondrook–Perricoota Forest ecosystem health remains poor. The 2022–23 wet years and natural high flows provided a small improvement in the overall health of the forest. However, without the ability to deliver managed environmental water to the site, improvements have not been sustained and targets for ecological condition for the site are still not being met. Regular delivery of water for the environment – complimented with natural flooding – is critical to recovery and restoration of the forest. Pollack Swamp is in better condition than the rest of the forest due to regular delivery of water for the environment. More information is at https://www.mdba.gov.au/water-use/water-environment/progress-and-outcomes-improving-system/koondrook-perricoota-forest-report  

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New Forests has partnered with NatureHelm to standardise nature measurement and provide transparency across its nature-based investment portfolio. Source: Timberbiz This collaboration aims to scale nature intelligence to support the delivery of nature positive outcomes and emerging natural capital financial opportunities. New Forests leveraged NatureHelm’s biodiversity intelligence platform, underpinned by deep biodiversity expertise, big data and machine learning to successfully deliver the world’s most expansive Nature Positive Initiative (NPI) pilot project. This project involved calculating seven state-of-nature metrics in accordance with NPI guidelines across more than 400,000 hectares in Australia, the United States, and Africa. It also analysed nature metrics across more than 34.8 million hectares surrounding these assets. This included a diverse range of forest assets managed by New Forests, as well as agricultural landscapes within Western Australia’s South Coast Natural Resource Management’s Frankland region. As global investors increasingly demand sophisticated, comparable data to meet their ESG and impact reporting requirements, and companies are increasingly reporting against the Taskforce on Nature related Financial Disclosure (TNFD) recommendations, NatureHelm offers a solution to a long-standing industry challenge: quantifying the state of nature and associated impacts at scale without prohibitive costs, while also providing a strong foundation for natural capital accounting. “Until now, measuring nature-positive outcomes across our global portfolio has relied on project or species-specific outcomes and has not facilitated a portfolio wide and balanced view,” the Global Head of Sustainability and Impact at New Forests Jo Saleeba said. “The NPI State of Nature Metrics are changing that, bringing a consistent methodology to compare the state of nature on our assets across time, location and asset type and how our management decisions impact that state,” she said. Ms Saleeba said New Forests’ participation with NatureHelm and partners in the pilot was just the beginning. She said that while it provided valuable early insights, opportunities to further improve the data and methodology had already been seen. “We look forward to continued collaboration with NatureHelm and other key stakeholders to strengthen the measurement and achievement of positive outcomes at scale.” Co-founder and CEO of NatureHelm Dr Debbie Saunders said NatureHelm was proud to support a visionary leader like New Forests in demonstrating that ‘nature positive’ is not just a slogan, but a measurable financial and ecological reality. “By providing a standardised lens through which business operations can be linked directly to biodiversity extent, condition and species across millions of hectares, we are enabling the financial sector to move from ambition to actionable, risk-adjusted investment in the planet’s future,” Dr Saunders said. By ingesting ground-truthed data, NatureHelm’s platform allows for the connection of specific management activities, such as invasive species control and habitat restoration, to measurable state of nature improvements. This data-driven approach enables comparability and prioritisation across diverse geographies and has the potential to support the monetisation of nature. New Forests and NatureHelm are now looking to expand this work across New Forests’ global asset portfolio covering 4.4m hectares, setting the benchmark for state of nature assessment. The NPI is a global initiative aimed at halting and reversing nature loss by 2030, against a 2020 baseline, and achieving full recovery by 2050.  

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The price of diesel has led to some forestry harvests being halted around the country. In the worst cases, managers say forest owners would make no return – or a loss – because heavy machinery has become so expensive to run. Source: 1News Farm Forestry Association president Dougal Morrison told 1News the latest figures from ports today showed a 30% reduction in log volumes compared to previous months. “That’s huge,” he said, attributing the drop to diesel prices. “Fuel is used in the harvesting equipment and you’ve got the transport – the logging trucks on the roads – and the ships exporting the logs as well.” Northland company Tree People has no more felling booked after this month, as all clients halted harvesting work. “It doesn’t make sense for them to harvest on the day that high fuel prices means that their forest isn’t worth anything,” Director Peter Davies-Colley said. His staff would do tree maintenance instead but there were concerns other employers wouldn’t be able to keep workers on. “The major crisis for our industry is when you lose that skillset because you don’t build these teams quickly.” Morrison said: “Even though [workers] might have gone through all the formal training and qualifications, suddenly they’re not able to use them. It makes it very hard for them.” Hundreds of millions of dollars were estimated to have been spent in recent years, across the industry in Aotearoa, on upgrading machinery for safer work and efficiency. Forest Industry Contractors Association chief executive Rowan Struthers said: “Since about 2013, probably NZ$300 million or so has been invested, capital has been invested, and most of that investment has come from contractors. “These contractors are family-owned businesses… That might own two to three crews, anywhere from 10 to 30 employees. These are the group that are most at risk during this fuel crisis because of the level of capital investment that they’ve made.” While electrification would be part of the future, it was still being tested here, he said, with trials of electric loaders, and electric log trucks, and hybrid harvest machinery. Otago logging contractor Steve Jones told 1News his work was still continuing currently but he had “sleepless nights” watching the US president’s decisions – and diesel spiking up to NZ$4 a litre – while trying to manage forest contracts. “Because you just don’t know, when the guy over there mentions a word, and the price goes up 30 cents.” Forest360 director Marcus Musson said beyond logging crews, he was also concerned for mills. “There are a lot of sawmills out there that are having to take shifts out because they simply don’t have the log availability anymore.”

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The Forestry Centre of Excellence in the Green Triangle will host its first Annual Showcase next month which formally marks the public opening of the new $6.8 million centre, highlighting its role as a national platform for applied research, technology demonstration and commercial pathway development. Source: Timberbiz To be held on Wednesday 13 and Thursday 14 May 2026 at the newly established FCoE building in Mount Gambier, the event will bring together a national cohort of growers, processors, contractors, researchers, technology providers and policymakers to explore how industry-led, locally delivered, research is shaping the future of Australia’s plantation forestry sector. Hosted by Professor Jeff Morrell and Centre manager Dr Jim O’Hehir, the showcase will cover themes including new technology for grower management, timber processing innovation, silvicultural innovation, forest health monitoring, and workforce safety. Professor Morrell said the showcase reflects the centre’s ambition to deliver impact at scale, working in close collaboration with the local forestry sector. “This event aims to demonstrate the national capability available from our regional base,” he said. “The Forestry Centre of Excellence exists to solve real problems for industry, accelerate innovation and support the long-term competitiveness of Australia’s forestry sector. These themes will be explored across the two-day showcase, headlined by many of our talented researchers, amongst other industry leaders.” The two-day program includes: Wednesday 13 May – Field Demonstrations and Networking An optional field-based program will showcase silvicultural trials and applied research in action, alongside hands-on demonstrations of emerging technologies including drones, LiDAR, water monitoring, virtual reality and advanced forest assessment tools. The day will conclude with an informal networking dinner at the Bob and Gayle Cowan Auditorium at the Adelaide University Mt Gambier campus. Thursday 14 May – Industry Research Showcase The main showcase will feature keynote presentations, applied research case studies and parallel breakout sessions focused on: technology-enabled forestry and data-driven decision-making timber processing and next-generation engineered wood products grower productivity, climate resilience and silviculture forest health, biosecurity and long-term surveillance.   Presentations will span topics such as climate-ready tree breeding, biochar and circular economy opportunities, artificial intelligence, immersive analytics, worker safety systems and advanced forest health intelligence. The event will conclude with a panel session, exploring industry’s long-term vision for the centre. Professor Morrell said the Centre’s success depend on collaboration. “We are deliberately industry-facing. This Showcase is as much about listening as it is about presenting – so industry can help shape the Centre’s priorities over the next decade and beyond,” he said. The Forestry Centre of Excellence is a partnership between the South Australian Government, Adelaide University, the Green Triangle Forest Industries Hub and the SA Forest Products Association. To learn more about the Annual Showcase visit www.forestrycoe.com.au  

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April has been a month of some amazing highs and lows. Uncertainty prevails with the forestry sector sitting firmly with food and fibre growers throughout the mighty NZ as we all attempt to grapple with how we manage elevated fuel prices. As at mid-April, diesel prices are coming off some ridiculous highs as the sentiment driven brent crude consistently remains below US$100 per barrel. Nice to see fuel companies only badly gouging us rather than royally gouging as they were March to mid-April. Another good news story is some reports suggesting some of those closest to the Red one in the White House are concerned he might be mentally challenged. They appear to be slow to learn in that neck of the woods… The forestry supply chain has had to dig deep in April to ensure as little as possible impact on forest growers. Loggers and truckers look to be the ones digging the hardest, accepting rate increases to do work that do not cover diesel cost increases. Ultimately the forest owners have the ability to call a stop harvest if their net returns fall below acceptability, so everyone has had to recognise that he/she who owns the wood calls the shots and they need to be kept happy. In April, domestic log prices have had to lift and for the most part sawmill owners have recognised the need to keep the saw blades turning. We have also seen lifts in log prices in China and India, with customer concerns NZ supply will slow if they do not accept increases. In NZ, despite the drive to keep going, many harvest operations, particularly those at some distance from ports, have been suspended. This is the direct consequence of the heighted cost of a litre of diesel. Despite market forces remaining in reasonable alignment, a decrease in total forest harvest is the current order of the day, with a 7 to 10% volume drop compared to March depending on who you talk to. Ultimately that will positively impact the wider market where oversupply would otherwise quickly see selling prices drop. International shipping continues to be the biggest talking point. Ships use a fuel product called Bunker. In early April we saw Singapore Bunker rates drop from US1,200 per tonne to currently about US$700 per tonne. High charter rates were being resisted, but the key driver appeared to be market sentiment. Fortunately for us, the fuel companies put their handkerchiefs back in their pockets and log vessel daily hire rate negotiations swung back to the charterers. A key driver here was for almost 2 weeks, there was one only charter confirmed for a vessel for NZ logs where there is typically 50+ per month. Clearly charterers were collectively put fixing vessels on hold until supply/demand 101 kicked in and rates quickly dropped USD 3 – 4 per m3. Out of the mire of uncertainty, the one stable element has been log usage in China. Despite the doom and gloom merchants suggesting the China economy experiencing all sorts of problems, daily usage of our wonderful Radiata pine logs has been chugging along at 65,000 m3. This is above expectation resulting in an inventory drop to around 2.7mil m3, down 400K from February. Most expect consumption rates to drop as the hotter months approach and RMB/USD exchange rates have started to negatively impacted China exporters. On balance, most commentators have suggested CFR rates (the cost of logs landed in China) have reached a high point at/about USD128 per m3 A grade basis. Some are suggesting the market egg is just starting to show some minor cracking at the current levels. This confirms NZ exporters certainly do not want to be pushing higher. In India market prices have been improving, as at mid-April sitting around USD152 per m3 A grade basis. The major challenge for the India market right now is shipping, with very stiff competition for other bulk cargos and the cost much higher than China voyages. Some ship owners are resisting log cargos with some stating the Strait of Hormoz is just 1500km from Kandla port entrance where NZ logs all head to. I suspect this is a tool for negotiating rather than any sort of real safety concerns. As always, please remember the thoroughly important message. “It remains, as always, fundamentally important, the only way forward for climate, country and the planet, is to get out there and plant more trees.” Allan Laurie, Managing Director, Laurie Forestry.

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