Australian timber industry news

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.”

In response to growing global concern about deforestation and its impact on the planet, the European Union has enacted the Deforestation Regulation (EUDR) to prevent deforestation in global supply chains, set to come into force on the 1 January 2025. Source: Timberbiz The regulation will prohibit the import of commodities including beef, palm oil, coffee, paper and derived products, unless their origins can be traced, using geolocation data to prove that the products do not originate from recently deforested land or have contributed to forest degradation. The use of leather within vehicle interiors makes the automotive industry a significant player in the leather market and has previously been under the spotlight for not doing enough to mitigate its deforestation risks. There are still some areas of the automotive supply chain which fall short in addressing its deforestation footprint especially when it comes to responsible and sustainable sourcing of materials. For more than two decades and through a host of multi-million-pound investments in its state-of-the-art production facility, Bridge of Weir has led the automotive leather industry with its commitment to traceability and efficient, circular manufacturing, adhering to the upcoming EUDR regulations. As a business, Bridge of Weir Leather is 100% transparent, something very few suppliers can claim. They meticulously track the journey of their materials from their source, ensuring transparency and accountability every step of the way. Its commitment offers Deforestation-free leather is not just a legislative requirement but a moral imperative. The growing support from various industries shows that the demand for deforestation-free leather is more than just a trend; it reflects an ongoing movement for ethical practices to protect the world’s ecosystem and shape a more responsible global business landscape. Bridge of Weir Leather sets itself apart by providing confidence in its supply chain. With full traceability of its rawhides, the company already adheres to the European Parliament’s regulation, ensuring its supply chains do not in any way contribute to deforestation. From sourcing over 98% of its rawhides locally from the UK and Ireland, all of which are a by-product of the beef and dairy industries, there’s no risk of deforestation with any Bridge of Weir Leather product. Scottish Leather Group’s 2023 ESG (Environmental, Social, and Governance) report is a testament to showing its progress towards achieving net zero leather production by 2025 and how the business can directly support its customers’ sustainability targets. The detailed report highlights a 90% reduction in the carbon intensity of its leather over the last 20 years, as well as 100% traceability of raw materials and 77% of waste recycled in 2022.

Tigercat has added a fifth model to its harvesting head line-up with the new three-wheel drive 573. Source: Timberbiz In late September 2023, visitors to the PLC live demo event held in the US got a sneak peak of the new Tigercat 573 harvesting head processing logs on the end of a Tigercat 875E logger. Since then, multiple units have been testing in far flung regions from Canada to Australia and the results are in. The 573 is shaping up to be a high performing, reliable head for roadside processing and harvesting. Best suited to medium and large tree profiles, the 573 has a 800 mm maximum cut capacity and offers optimal performance in 400-600 mm diameter timber. The feed rollers close down to 60 mm allowing the 573 to smoothly delimb and process smaller diameter trees and thus achieve higher value fibre recovery. The compact frame design deftly handles poor stem form and contributes to tidy delimbing performance. The triangulated feed wheel arm configuration operates in locked three-wheel drive. This, combined with timed knife arms, provide the operator with fast picking and positive stem control for high productivity in roadside processing applications. Independently mounted, trailing-arm length measuring ensures reliable tracking and accuracy. The top knife and lower/back knife pivot on the same side of the chassis frame, aligning the position and flow of each stem centrally through the head. This arrangement promotes positive contact with all three feed rollers and the measuring wheel at all times. The result is better quality and accuracy, reduced fuel consumption, and greater processing speed. The orientation also provides the operator with a clear sightline to the measuring wheel. The 573 is standard equipped with continuous rotation for ease of use and superior hose routing and protection. Quick, stable WiFi connectivity between the cab and attachment modules reduces wire routing along the boom and provides excellent command response. The Tigercat D7 control system is available with Priority or Optimization levels and is fully compatible and compliant with StanForD Classic and 2010. The 573 is a great fit for the H250D, 850 and 875E for roadside processing applications and the H822E and H855E carriers for in-stand harvesting.

Earthsight has learned that a vessel carrying some €40 million of Russian conflict timber was seized by German Customs. The ship, 23,000-tonne Atlantic Navigator II, was enroute from St Petersburg in Russia to the US east coast when it developed a fault and was forced to dock at Rostock port on the German Baltic coast in late March. Source; Timberbiz Earthsight learned of the action through industry sources; it was then confirmed by German Customs. Russian timber was banned in Europe in response to the Russian invasion of Ukraine in February 2022. The timber industry is one of the largest sources of government revenue in Russia after oil and gas. All forests in the country are state-owned, some of them by the military, and Earthsight’s research has previously shown how many of the largest timber companies are owned by billionaire oligarchs close to Putin. Though the UK and EU have banned Russian wood, the US has so far failed to follow suit, despite calls for it to do so by the Ukrainian Parliament. The vessel is one of a small fleet operated by a Canadian-owned shipping firm, Atlantic Ro-Ro Carriers (ARRC), which sail back and forth between Russia and the US, their cargoes almost entirely made up of Russian birch ply. US import records analysed by Earthsight show that the Atlantic Navigator II offloaded 9399 cubic metres of such ply at US ports in October 2023, and a further 5876 cubic metres in December 2023. The vessel halted at Rostock is believed to be carrying a similar quantity on this occasion. Such an amount of plywood, when sold at retail, is worth an estimated €40 million. Laid out, the plywood could cover an area as large as 200 football fields. According to Earthsight’s sources, German Customs have placed a ‘hold’ on the ship due to alleged violation of EU sanctions relating to the plywood on board. ARRC’s lawyers argued that the vessel’s cargo should be exempt because it only docked in Germany due to an emergency. German Customs have rejected that argument, and ARRC is set to appeal. When it last took this journey, 161 of the 192 shipping containers on board were filled with birch plywood. Thirteen of those were plywood supplied by Russian timber giant Sveza, which is part-owned by Alexei Mordashov, Russia’s richest man. Mordashov, who is the subject of EU and US sanctions, was among a select group of oligarchs who met with Putin on the day of the invasion. He has been called ‘Putin’s banker’ as a result of another of his firms, Bank Rossiya. Our sources indicate that there are at least 650 cubic metres of plywood from Sveza on board the vessel this time – as much as 10% of the cargo. “This is the largest cross-border seizure of illegal wood I have ever come across”, said Earthsight’s Director, Sam Lawson, who has been studying the international trade in illegal timber for 25 years. Petro Testov, a Ukrainian campaigner who was among those to call for a ban on Russian wood following the invasion, a call which was supported by 130 NGOs from around the world, said: “It is essential that German authorities stand firm, and prosecute this case to the fullest extent of the law. This blood-timber should be sold and the proceeds donated to Ukrainian humanitarian causes.” US Presidential Executive Order 14068 of 11 March 2022, which banned other Russian commodities, including diamonds, but omitted timber, empowers the US Treasury Secretary to add further items to the list without requiring additional legislation. However, in its latest round of sanctions, passed in the wake of the murder of Russian dissident Alexey Navalny, calls for the inclusion of Russian wood were again ignored by the Biden Administration. “This continued failure to act by the US government is shameful. They must stop profiting from this trade and finally ban Russian wood. We have waited too long”, Testov said.

For the first time in 10 years FTMA Australia took its conference out of Queensland, returning to where it all started in Victoria. The conference was held in late March at Geelong’s newly refurbished arts centre. Source: Timberbiz The conference theme was Looking Outside the Triangle and the first speaker made everyone sit up and focus. Robert Pradolin of Housing All Australians talked about the homelessness situation in Australia and showed a compelling short video. Furthermore, he touched on the role that private business has in addressing homelessness. Tim Woods presented on the latest housing and timber markets, he was then joined by a panel consisting of Karl-Heinz Weiss, Tim Newman and Nick Hewson to talk about the threats to market share, and where housing in Australia was headed. Dr Alastair Woodard who presented on the great opportunities for the Advanced Timber Framing Collective looked at what the sector needs to move forward, such as revising AS1684. Delegates were treated to a masterclass on the new IR laws by Brenda Garrard-Forster from HR Anywhere who also outlined ways in which you can avoid workplace injuries and how to handle Workcover claims. Finally, the keynote speaker was Tim Jarvis OAM, sponsored by MiTek, who spoke about leadership through adversity.

The Otago Regional Council’s proposed setback rules are an overreaction, the New Zealand Farm Forestry Association says. As part of its draft Land and Water Regional Plan, the council has proposed forestry setbacks of 20 to 50 metres from rivers, lakes and wetlands. Source: Stuff NZ Most other councils follow the regulations in the National Environmental Standard for Commercial Forestry that call for setbacks of 5 to 10 metres. Otago Regional Council’s general manager policy and science Anita Dawe said the council staff were still working through feedback on the plan, which would be refined before it was notified in June. The proposed draft calls for setbacks of 20m on slopes with a gradient of 10 degrees or lower, and 50m on slopes steeper than 10 degrees. “The plan is based on technical information including science, consents and compliance data across a range of activities, including forestry, to achieve community expectations for water quality and quantity,” Dawe said. New Zealand Farm Forestry Association President Neil Cullen called the rules “quite draconian,” pointing out that farmers would lose a lot of forestry production land over their total forest area. Many of the association’s members are farmers who have planted forests on what was often otherwise unproductive land, earning credits under the Emissions Trading Scheme. But removing this forestry would count as deforestation under the scheme, Cullen said, which meant owners would have to pay out carbon credits. “The council doesn’t understand the problem it’s created,” Cullen said. “There is no evidence that forestry is causing issues to waterways in Otago. “I think they’ve been scared by what happened on the East Coast where the land is quite unstable.” Cullen was referring to the forestry slash that caused further flooding and damage when it was washed into waterways during Cyclone Gabrielle last year. This was soon after calls for an enquiry into forestry practices sparked by the death of a child at Waikanae Beach who was struck by a floating log washed out by Cyclone Hale in January 2023. But the land in Otago was stable, Cullen said, and there was no reason why regulations in the region should be tougher. Forestry had a good track record but had received a bad reputation because of the poor farming practices in foreign-owned blocks, he said. With little other activity in forestry blocks, it could be better for water quality, Cullen said, adding that harvesting crews were making sure no sediment was going into waterways. “There’s good compliance in terms of looking after waterways and practices are improving all the time.” Cullen worried that over-regulating forestry would make it costly and less attractive to farmers only just considering it. “Landowners are going to say: ‘why bother?’” Pakihiroa Farms general manager and Ngāti Porou Agribusiness spokesperson Hilton Collier saw first-hand the damage caused in Gisborne. While the setbacks sounded steep to him, he said there was another problem with the long-term plan. “Isn’t it intriguing that we try to make decisions for 30 years, yet we can’t guarantee what will happen in 30 years,” he said. “Our councils struggle with Long Term Plans and we’re talking about planting forests that will last for 30 or 50 years.” There was a 200-hectare forest on the land he managed, Collier said, that might never be harvested because despite being planted 50m away from the river, the river moved and was now right up against the forest line. He believed regulations needed more nuance. “It has to be site specific. It comes down to: what’s the right thing for the land?” Most regional councils in New Zealand confirmed that they were using the forestry setback regulations set out in the National Environmental Standard for Commercial Forestry but said amendments could be considered when various regional policies came up for review.

WA’s Forest Product Commission’s (FPC) Farm Forestry Assist Program, established in 2018, is a one-off grant for farmers and other landowners to plant pine trees on their properties. Source: Timberbiz It is open to farmers and landowners who are interested in establishing 20 to 50-hectare pine plantations subject to criteria such as location, scale, soil, access, and management of the plantations to ensure that any resulting plantings have the capacity to help support Western Australia’s softwood industry. Successful applicants receive free, high-quality pine (Pinus radiata) seedlings from the West Manjimup Nursery and Seed Centre. The pine seedlings available through this grant have been developed through a long-running tree improvement program, with selections based on drought-resistance, productivity, and timber properties. Successful applicants can also access technical assistance to ensure the establishment process results in a healthy and productive plantation. Since the launch of the program, more than 750,000 pine (Pinus radiata) seedlings have been planted across 20 properties with total area of over 550 hectares. Established plantings have the capacity to diversify income, complement farm operations, provide landcare benefits, sequester carbon for financial gain and carbon offset, and contribute to meeting Western Australia’s future timber and fibre demand. The program complements the State’s $350 million softwood investment plan to ensure a robust and sustainable forestry industry. More information here.

Growers are increasing Australians’ confidence in homegrown forest products with a fully certified supply chain and the backing of the nationally endorsed ForestFit Standard and certification scheme. Source: Timberbiz AFPA members have signed a memorandum of understanding (MOU) with the Australian Forest Contractors Association (AFCA) to implement ForestFit to improve the management of critical risks, reduce costs and increase efficiencies for growers and contracting businesses. Lead AFPA member signatories are Forico, HQ Plantations, Midway, New Forests, OneFortyOne, Sustainable Forest Management, Timberlands Pacific and Western Australian Plantation Resources. “AFPA welcomes the ForestFit MOU and the role it will play streamlining the strategic partnership between two critical sections of the supply chain in growers and contracting businesses,” AFPA Chief Executive Officer Diana Hallam said. ForestFit Project Manager with AFCA, Dionne Olsen said ForestFit provided a national Standard for Contracting Businesses to certify their business systems and manage their operational risk whilst supporting growers to manage their commercial risk. Certification to the Standard provides assurance of performance and continuous improvement. The Standard is aligned to international management system standards ISO 9001: Quality, 45001: Occupational health and safety and 14001: Environment which have has been contextualised with criteria for operations including harvest, haulage, civil silviculture and minor forest products. ForestFit sits in alignment with the Forest Stewardship Council (FSC) and Responsible Wood, creating a fully certified supply chain for Australia. It has established a Deemed to Comply with Responsible Wood which reduces audit duplication and downtime.

Responsible Forest Management Australia Limited (RFMAL), operating as FSC Australia (FSC ANZ), is accepting nominations for six director positions to join the FSC Australia board of directors. Source: Timberbiz The upcoming board year marks an exciting phase for FSC ANZ as it embarks on the third year of a strategic plan with numerous significant initiatives in progress. Notably, the revision of the National Forest Stewardship Standard for Australia. Additionally, its Promotional Licence Holder (PLH) partnership program continues to flourish across Australia and New Zealand, and the engagement with FSC community through events like International Women’s Day, International Day of Forests, the PLH forum and FSC Forest Week campaigns foster collaboration across Australia and New Zealand, emphasising the significance of FSC certification. The momentum of FSC ANZ has reached new heights, underscoring the important role of the board directors and members in ensuring continued success. Directors serve for three-year terms. The positions are determined at the FSC Australia’s AGM either by direct appointment when the number of eligible candidates does not exceed the relevant vacancy, or voting by the FSC Australia members when there are more eligible candidates than vacant positions. The successful nominees will be determined and announced at the AGM to be held on 30 May 2024, in Canberra. The board is comprised of nine directors, three from each chamber (economic, environmental and social). This year there are six director positions available as follows: Economic Chamber – two positions available Environmental Chamber – two positions available Social Chamber – two positions available. To nominate for the board, complete and email the “Nomination as a Director of Responsible Forest Management Australia Limited” form by 26 April 2024. For more information: https://anz.fsc.org/newsfeed/board-director-nominations-now-open

Forestry Australia has welcomed the decision by the Federal Court to allow planned prescribed burns in the Strathbogie Forest. In the Federal Court, Justice Horan dismissed a move to stop four prescribed burns in the forest. Source: Timberbiz Forestry Australia President Dr Michelle Freeman said prescribed burning recognises Australia’s fire-dependent ecosystems, and fire-adapted flora and fauna that have evolved through the long tradition of indigenous caring for Country. “Decades of on ground research and lived experience has shown that prescribed burning can reduce subsequent bushfire severity through reducing fuel loads and also make bushfires easier to control when they do occur,” Dr Freeman said. “Fuel reduced forests are significantly less affected than forests carrying heavy fuel loads when unplanned mid-summer bushfires pass through them, and this is why prescribed burning is an essential activity.” Dr Freeman said fire requires three elements – fuel, oxygen, and heat – known as the “fire triangle”. “Of these, the only variable that humans can control in forests is fuel level – and well-planned prescribed burning is an effective tool for managing forest fuel accumulation. “That being said, it is imperative that prescribed burning is planned and managed appropriately, informed by evidence, with other forest values and key habitats in mind”. “Inappropriate or unnatural fire regimes are the second-most cited reason, after invasive species, for threatened species listings in Australia. “While there is no panacea for reducing the impacts of catastrophic bushfires, well-managed prescribed burning is a scientifically proven part of the solution. “Simply, reduced fuel levels in forests will reduce the severity of bushfires under all bar the most catastrophic fire weather conditions.

The Coalition, the Australian Greens and key Senate crossbenchers have stood up for Australian plantation forestry, fixing laws that would have hampered investment in much needed new forestry plantings, Chief Executive Officer of the Australian Forest Products Association (AFPA), Diana Hallam said. Source: Timberbiz The Treasury Laws Amendment Bill was amended in the Senate to remove completely unintended negative consequences on plantation forestry in Australia. “In a united front for common sense and good policy, the Coalition, Greens, Jacqui Lambie Network, and United Australia supported a Pauline Hanson’s One Nation Amendment to fix the unintended consequences of the Treasury Laws Amendment Bill on the plantation forestry sector,” Diana Hallam said. “I thank Pauline Hanson’s One Nation for moving the amendment and standing up for the Australian forestry sector. I thank the Coalition, the Greens and key crossbenchers for their support and recognition that new forestry plantations are vitally important for Australian jobs and investment. “Despite the Department of Treasury revealing that plantation forestry sector companies were not intended to be captured by the Bill and being aware of the unintended negative consequences on the plantation forestry sector, the issues remained unresolved prior to the Bill’s introduction to Parliament, or after two Senate inquiries into the Bill. “If the Bill had passed as drafted, it would have undermined prospects for jobs and investment, and the Government’s own plantation forestry expansion goals and international commitments to increase the use of timber in the built environment. “Globally, there is not enough timber being grown to meet demand. Australia is facing a long-term shortage of home-grown timber for house-frames, flooring and paper and packaging products. We need more investment in new forestry plantations to ensure in the decades ahead, we have enough resource to create these essential and everyday items that Aussies need. The vote in the Senate was a win for Australia’s sovereign capability in timber and wood supply, a win for jobs in rural and regional areas, and a win for common sense Ms Hallam said.