Issue 112

6391

AFS/01-10-01 www.forestrystandard.org.au

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issue 112 | 15.02.10 | Page 1

Gaining ground

This Issue • ITC Ltd changes to Elders Forestry • Environment report ignores forest facts

Read the signs: international market conditions have never looked better

By LAWRIE HALKETT Chief Executive NZ Pine Manufacturers Association

ALL the economic gurus are predicting a much healthier economic environment this year.

Worldwide it would seem that most supply chains were cut to the bone and inventories were run down massively. That, in itself, will contribute to rising growth throughout 2010.

The pundits are picking one of the major economic drivers in New Zealand and Australia to be residential construction.

Since house prices peaked in 2007, construction in

for labelling certified timber • Global view on forestry finance • Boral tracking sustainability of hardwoods • Report soon on illegal timber • FSC Australia workshops look at labelling, trademarks • Events – what’s on in 2010?

 Yardstick

Time to play hardball .. all the wood players ready to gain lost ground.

New Zealand has declined significantly, falling below what was needed to meet normal population growth. That, along

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with a surge in net migration in 2009, has only exacerbated the Cont Page 2

issue 112 | 15.02.10 | Page 1

industry news

US is predicted to begin picking up and emerging markets will go gangbusters From Page 1

housing shortage.

In actual growth terms, NZ economists are straining at the leash, outbidding each other with GDP forecasts for 2010, ranging from 3% to 3.71%, which after a negative 1.4% for 2009 is pretty impressive. The growth is expected to be driven by strong growth in construction and consumer spending, with the export sector (especially dairy) also kicking in.

What is exciting for the wood products industry is that the forecasters are picking the pro-cyclical sectors, like construction and its related industries (non-metallic minerals and wood), to be the relative winners.

Westpac commentators looked at which sectors had been

hardest hit in the recession and estimated which were most pro-cyclical. Wood is seen as one such product. It is forecast to recover most strongly from recession and be among the best performers over the next couple of years.

So, where in the world is the growth going to materialise?

Well not in Europe, the UK or Japan which will remain subdued. The US is predicted to begin picking up and the emerging markets (e.g. India) will go gangbusters.

Australia will continue to perform strongly, as will the inexorable rise of China.

Another story that caught my eye over the last couple of weeks suggests strong wood consumption: ‘China’s wood appetite hots up as industry moves to house millions’ as

Turning hardwood thinnings into plywood and profits A NEW TIMBER RESEARCH FACILITY IN QUEENSLAND IS EXPLORING WAYS TO TURN PLANTATION THINNINGS INTO SALEABLE COMPOSITE PRODUCTS The FWPA funded project will solve challenges such as those associated with processing the more dense, durable subtropical and tropical species suitable for Queensland plantations.

On the rise .. residential building construction.

quoted in Timber & Forestry e-news (Issue #108). The article reported: “In one projection, the mass urbanisation of China over the next 10 years could see lumber prices soar by more than 300%.

Additionally, recent clarifications to Chinese building codes have stoked rejoicing.

“On the final trading day of 2009, when commodity performance for the past decade was totted up, lead, sugar, gold and copper were unsurprisingly high on the list, having delivered huge returns in the region of 300%. Lumber lost 32% over the period.

Wood is forecast to recover most strongly from recession and be among the best performers over the next couple of years

www.fwpa.com.au for more information

Email: info@fwpa.com.au

Page 2 | issue 112 | 15.02.10

“But lumber bear markets have always been followed by price rises above 100%. And, if the commodity is on the verge of a new bull run the good news, Barclays Capital analysts say, is that the shortest upswing for lumber since 1900 lasted 12 years”.

The same strong growth forecasts apply to Australia with pent-up housing seeing

Lawrie Halkett .. strong growth in construction and consumer spending.

new house starts needing to run at 190,000 per annum over the next few years [Harley Dale, HIA].

All the signs are right for the wood products industry to gain lost ground. Industry participants have wailed loud and long that we operate in a long margin industry.

So, I guess it’s up to all wood processors to read the signs, toughen-up and play hardball.

International market conditions have never been better. The forecasters are saying it’s boom time for wood, so good margin recovery opportunity exists as long as wood processors have strength to act. Make hay while the sun shines.

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INDUSTRY news

ITC Ltd changes to Elders Forestry

Strong commitment to hardwood plantations AGRIBUSINESS giant Elders has announced the re-branding of its wholly-owned subsidiary ITC Ltd to Elders Forestry Ltd. Elders chief executive Malcolm Jackman said the re-branding was consistent with Elders’ strategy of one company built around the iconic Elders brand.

“It sends a clear message to customers, suppliers, and investors that forestry is part of Elders,” Mr Jackman said.

In November last year, the ACCC approved the sale of ITC’s timber processing division to Gunns, exclusive of ITC Timbers’ stake in SmartFibre, a woodchip export facility in Tasmania. Elders retained ITC Forestry with an expectation of growth in the sector.

The name change reflects a commitment to Elders Forestry’s chosen role of being the lead supplier of certified plantation pulpwood to international

Malcolm Jackson .. clear message on forestry

Vince Erasmus .. plantations offer lot of potential.

customers.

Elders Forestry manages 175,000 ha of diverse hardwood plantations across Australia including pulpwood, red mahogany, teak and sandalwood.

Elders Forestry chief operating officer Vince Erasmus welcomed the announcement as a significant chapter in the

forestry giant’s history.

“The name change is enormously exciting for everyone at Elders Forestry as it clearly identifies our organisation as part of Australia’s most famous rural brand and heritage in primary

production,” Mr. Erasmus said.

“Plantation forestry is a relatively young industry in Australia compared to wool, for example, but holds the same potential.

Through our commitment to continual improvement and responsible management of a sustainable plantation estate we are working to realise that potential as the industry matures and international demand grows.”

Elders Forestry began in 1990 as Integrated Tree Cropping in Western Australia. ITC publicly listed in 2004 and was subsequently acquired by majority shareholder Futuris Corporation in 2006. Futuris adopted the name of its principal business Elders in 2009.

Report ignores forest facts THE forest industry is disappointed Environment Tasmania has chosen to make media comment about its forestry report ahead of its public release.

“It is ironic that this report makes recommendations about good governance, and calls for more openness and transparency in the forest industry,” Forestry Tasmania’s managing director Bob Gordon said.

“Environment Tasmania has had the advantage of making public statements about their report before key stakeholders could obtain and absorb the information to make a considered response.

“The report also ignores the fact that one million hectares of former state forest, which was once managed for multiple uses, has now been put into reserves.

By definition, Tasmania’s high conservation value forests are already protected in reserves.

“The report’s recommendation to separate Forestry Tasmania’s conservation obligations from its wood supply functions does not take into account the more than $5 million annually in unfunded community service obligations for which FT is responsible.

“Contrary to the implications of the Environment Tasmania report, Forestry Tasmania takes its environmental and social obligations seriously.

As detailed in our recent Stewardship Report, we fund essential services such as conservation research, management of forest reserves, fire fighting and roads from the sale of wood products.”

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issue 112 | 15.02.10 | Page 3

industry news

A balanced diet of wood fibre produces healthier, more productive food basket NAFI explodes report that forestry threatens agriculture AN Australian National University report on financial assistance measures across the agriculture and forestry sectors is flawed, says the National Association of Forest Industries.

“The report leads to incorrect conclusions about the level of assistance provided to forestry managed investment schemes compared to other sectors,” NAFI chief executive Allan Hansard said.

The ANU report says the Federal Government subsidy to forestry plantation managed investment schemes cost around $1 billion over the five years ending 2008 and reduces land and water available to food growing.

The research by ANU economist

Juditrh Ajani .. report on forestry flawed.

Allan Hansard .. inconvenient truth uncovered.

Dr Judith Ajani suggests that, far from being an attractive investment proposition, plantation managed investment schemes are high cost to both the government and investors.

Her study, which was presented at the national conference of the Australian Agricultural and Resource Economics Society last week, includes evidence that many investors may recoup

just 25% of their funds.

Mr Hansard said that in the report ‘Climate change policy distortions in the wood and food market’, Judith Ajani attempted to show that forestry received substantial assistance through tax concessions compared to other agricultural sectors.

“She uses the analysis to raise concerns about the impact of forestry on food production.

However, closer examination of the data reveals a fundamental flaw in her argument, with the data proving the contrary finding – forestry does not receive substantial assistance in comparison with other agricultural land uses,” Mr Hansard said.

Cont Page 6

Connecting the pieces Industry supply chain seminar Radisson Hotel, Melbourne, Tuesday, May 18 Free entry to members of TMA (Vic), ATIF and WADIC This special one-day seminar will cover key aspects of the timber industry supply chain, together with wider aspects of the timber industry’s business environment, wood-based product marketing and matters related to company-level business success.

Top field of speakers representing federal government, FWPA, HIA, transport industry, Canadian forest products and many other sectors associated with the timber supply chain.

Seminar speakers will include leading timber supply chain experts, marketing specialists, technology providers and regulatory authorities.

‘The seminar will appeal to the broad cross-section of companies and organisations in the timber supply chain, their suppliers,supporters and related businesses and interests. Leading experts and specialists will cover a range of topics, including the changing nature of housing construction and the

timber industry; product innovation and marketing activity; the ‘drivers’ for change; and the emerging factors that will impact on future timber supply chain business performance’ Peter Roberts, CEO, Timber Merchants Association.

Registration and sponsorship inquiries: Ingrida Matulis on (03) 9875 5000 Email: ingridam@timber.asn.au

Page 4 | issue 112 | 15.02.10

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events

WHAT’S ON? www.abare.gov.au

21-24: Green Cities Building Conference. Venue: Melbourne Conference Centre. A joint initiative of the Green Building Council of Australia and the Property Council of Australia. Contact: HI Event Management (07) 3210 1646 or greencities@hievents.com. au Program available at www. greencities.com.au

9: Sydney Timber Industry Institute and TABMA golf day.

Arthur Clegg Timber Trade Cup. Muirfield Golf Club, Perry St, North Rocks (off Barclay Road).

Golfers $90 p.p., includes sausage sizzle, light lunch, buffet dinner and presentation. Diners $45 p.p., includes buffet dinner and presentation. RSVP February 26.

Contact: Maurie Parsons.

Tel: (02) 9871 1219

21-27: Truck Week. Contact Australian Trucking Association, 25 National Circuit, Forrest ACT 2603.

Tel: (02) 6253 6900. www.atatruck.net.au 23: American Hardwood Export Council (AHEC) free half-day seminar. The International of Brighton, Melbourne. Keynote speaker: Luke Hughes, international furniture and interior designer.

AHEC will also launch its sustainability Green Card at the seminar. Seminar registrations: Email events@neilsonpromotions. com 25: American Hardwood Export Council (AHEC) free half-day seminar. Fale Pasifika, Auckland University, NZ. Keynote speaker: Luke Hughes, international furniture and interior designer. AHEC will also launch its sustainability Green Card at the seminar. Seminar registrations: Email events@ neilsonpromotions.com

MARCH 2010 1-2: Future Forestry Finance Conference. Novotel Brighton Beach, Sydney.

Contact: 1800 125 388 (free call in Australia) or web sties www.fiea.org.nz or www. forestryfinanceevents.com 2-3: National Outlook Conference (ABARE) Canberra, ACT.

15-17: Industry bus tour of Northern New South Wales.

Contact: Karen Johnston at TABMA Queensland.

Tel: (07) 3254 3166.

Email: karen@tabma.com.au 16-17: 4th Global Wood Fibre Trade Conference, Sao Paulo, Brazil. Visit www. pulpwoodconference.com 21: World Forestry Day 22: World Water Day 24-26: International Wood Products Association annual convention Miami Beach, Florida, USA www.iwpawood.org 25: Annual Timber Merchants Association charity dinner supporting the Burns Unit of the Royal Childrens Hospital. Keynote speaker: Joe Helper, Minister for Agriculture and Forestry. Venue: River Room at the Crown Casino, Southbank, Melbourne.

Cost (GST inc) including predinner drink, 3-course meal and beverages: $165 pp (members); $175 (non-members). Payment no later than February 25.

Non-members who book a table of 10 will be eligible for member pricing of $1650. Bookings to Ingrida Matulis on (03) 9875 5000 or email ingridam@timber.asn.au

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31: International wood composites symposium and technical workshop 2010 Seattle, Washington, USA. www. woodsymposium.wsu.edu

SUSTAINABLE. RESPONSIBLE.

APRIL 2010 7-10: Australian Trucking Convention. Gold Coast Convention and Exhibition Centre.

Tel: (02) 6253 6900. Email: ata@ atatruck.net.au Download full program from www.ataevents.net.au

The National Association of Forest Industries (NAFI) is striving for an ecologically sustainable Australian society achieved through dynamic, internationally competitive forest industries.

15: Dubai International Wood and Wood Machinery Show Dubai. www.dubaiwoodshow.com 18-21: APPITA Annual Conference and Exhibition/Pan Pacific Conference Melbourne. www.appita.com.au

MAY 2010 18: Victorian Timber Industry Supply Chain Seminar: Connecting the Pieces for Business Success. Radisson Hotel, 380 William Street, Melbourne.

Contact: Peter Roberts, Timber Merchants Association on (03) 9875 5000 or John Halkett, Australian Timber Importers Federation on (02) 9356 3826.

2010

february 2010

19-20: Wood Supply Chain Optimisation 2010. Bayview Eden Melbourne. Technical seminar details successful strategies that have been adopted to improve planning, logistics and operations through the wood supply chain.

Contact FIEA +64 3 470 1902. www.woodsupplychain.com 21-23: Timber and Working with Wood Expo, Brisbane Showgrounds, Fortitude Valley.

NAFI’s mission is to represent the interests of members by promoting the environmental sustainability and the prosperity of Australian forest industries.

National Association of Forest Industries Ltd (Est. 1987) PO Box 239, Deakin ACT 2600 Tel: (02) 6285 3833.

Fax: (02) 6285 3855 Web: www.nafi.com.au

issue 112 | 15.02.10 | Page 5

industry news

Forestry practices enhance agriculture From Page 4

“For a long time some commentators have been trying to argue that forestry is highly advantaged through tax arrangements compared to other sectors. However, in her attempts to prove this, Judith Ajani has uncovered an inconvenient truth; the Government’s data used in her analysis actually shows that forestry has a lower level of assistance compared to other agricultural activities.”

For 2007-08, the Productivity Commission reported the combined assistance for forestry at $49.6 million. This compares with $438.7 million for dairy farming and $1028.9 million for grain, sheep and beef cattle farming over the same period. In total, the combined assistance measures for primary production were over $2.3 billion.

[The ANU report estimates that government assistance to forestry and logging is equivalent to 42% of the industry’s unassisted value added. Tax-based subsidies through plantation managed investment schemes are estimated to make up 77% of

the assistance.

Assistance to forestry is substantial, says the report, especially when compared to assistance to food growers competing for agricultural land and water. The report says the Productivity Commission estimated that assistance to grain, sheep and beef growers, which includes drought related payments, was equivalent to 7.2% of the industry’s unassisted value added in 2008].

“It is clear that claims by some commentators that forestry will take over high productivity ‘food growing’ land are unsubstantiated,” Mr Hansard said. “To the contrary, there is growing evidence that well targeted forestry practices integrated with agriculture can produce substantial economic, social and environmental benefits, including enhanced agricultural productivity.

“This goes to prove what many farmers and foresters have known for a long time – we can have a healthier, more productive food basket by incorporating a balanced diet of wood fibre.”

FSC workshops look at labelling WORKSHOPS in Sydney and Melbourne next month will examine changes to the standard for using Forest Stewardship Council (FSC) labels and trademarks.

There will be presentations on the major changes in the new standard and how the new label generator will work The session in Sydney will be on Tuesday, March 9, and in Melbourne on Thursday, March 11.

Formalities will finish at about 7pm and refreshments will be

Page 6 | issue 112 | 15.02.10

available.

Costs and venues will be announced later this week.

FSC Australia will again be represented

at

the

annual

Sustainable Living Festival in Melbourne from February 19 to 21 n Federation Square. Last year the festival attracted more than 124,000 people.

Members are invited to come along and help out answering questions about FSC.

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events

Structure of the supply chain for forest products has been a major issue in maintaining international competitiveness.

Seminars focus on reducing costs in wood supply chain AS physically remote countries, the quality of New Zealand and Australia’s international supply chains have a significant impact on the ability of companies to compete in global markets.

The structure of the supply chain has been a major issue for the forest products sector in maintaining its international competitiveness. Volatile wood fibre costs, increasing energy prices and shifting product demand have all created significant pressures on forestry and wood products companies to reduce their costs and take advantage of demand opportunities.

In Australasia, the supply chain tends to be horizontal rather than vertically stratified between each of the major players; forest owners, wood processors, manufacturers and distributors. As a result, there is a high degree of separation between each of these operations.

Rather than maximising the overall net return to each company, companies look to access margins at each

stage of the supply chain. The result is an overall process that’s maximising returns and a fragmented industry with few end-to end supply chain participants.

A technical seminar series – Wood Supply Chain Optimisation 2010 – will detail successful strategies that have been adopted to improve planning, logistics and operations through the wood supply chain.

“Harvesting and transport costs for example are 4060% of the delivered costs of logs yet it’s only recently that new optimisation tools have being researched, designed and adopted by leading forest products companies to improve their efficiencies,” says Brent Apthorp, director of the Forest Industry Engineering Association.

“Profitability has been improved, from the forest right through to market.”

The technology series runs in Melbourne from May 19 to 20 and in Rotorua, NZ, from May

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Brent Apthorp .. improving profitability from the forest through to the market.

24 to 25.

They build on two well supported programs – Value Chain Optimisation – that ran in Rotorua and Melbourne in 2007 and the Forest Industry Strategic Summit which was run in New Zealand focusing on improving wood supply chain competitiveness.

The Wood Supply Chain Optimisation 2010 series will include: • Analysis of successful international models for supply

chain optimisation.

• Optimising value recovery through improved harvesting systems.

• Remote sensing and realtime tracking of logs and wood products.

• Materials handling, packaging, freight forwarding and distribution developments.

• Key issues facing the freight, shipping and transport industries.

“In the current environment with increasing pressures on the profitability of forest products companies, domestic and global markets are requiring more sophisticated approaches to the every-day routines of manufacturing and doing business,” Mr Apthorp said.

“Sourcing and purchasing materials, manufacturing products, and getting them to market means companies are looking much more closely at solutions to make supply chain improvements.”

Further information: www. woodsupplychain.com

issue 112 | 15.02.10 | Page 7

industry news

Conference takes global view on developments in forestry finance Gearing for market growth in bio-energy, carbon credits KEY finance company leaders and risk specialists are going to be treated to a unique and insightful view of the Australian forestry sector in early March at a national forestry finance event.

The Forest Industry Engineering Association bringing together local and overseas experts for the inaugural Future Forestry Finance Conference at the Novotel Brighton Beach Hotel in Sydney on March 1 and 2.

The conference will focus on strengthening ties between the finance and forest products industries. Many of the major players in forestry have already registered their leading managers for the event.

Page 8 | issue 112 | 15.02.10

Eva Greger

Russell Taylor

Bob Flynn

“Globally, the Australian forestry sector is in a unique position right now with a new phase set to begin including potentially major changes in ownership,” FIEA event manager John

Stulen said.

“Forestry is also poised to capitalise on potential new rules for the next Kyoto Protocol commitment period which could make for huge change

and growth,” he said.

“Forest products opportunities are set to grow massively in bio-energy and carbon credit Cont Page 10

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industry news

Boral tracking sustainability of hardwoods BORAL Timber has re-affirmed its commitment to providing sustainable, certified timber, passing its latest audit to retain its Australian Forestry Standard (AFS) chain of custody certification for its hardwood products.

The company first achieved chain of custody certification (AS 4707–2006) for its hardwoods in early 2009 and, as part of the ongoing certification process, is audited by a third party every 12 months.

Visiting Boral’s Narooma, Herons Creek, Koolkhan, Nammoona and Sydney offices, the auditor certified that the company’s practices meet the relevant criteria to track timber from its origin in a certified forest, through each processing element and on to the consumer.

With specifiers and builders increasingly seeking certified products for projects, sourced from sustainable forests, certification is an important issue for the industry. Boral Timber is able to transparently show that its hardwood products have adhered to sustainable practices from the forest source, through the company’s manufacturing process, and its delivery to the point of sale.

“With the building industry beginning to encourage the use of certified products, Boral Timber is able to offer a sustainable, certified solution for projects,” says Steve Dadd, general manger of East Coast Hardwoods, a division of Boral Timber.

“Boral Timber follows the rigorous framework laid out by the AFS, assuring our customers that they are supporting good environmental practice and

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From the forests to processing ..

Boral Timber’s hardwoods retain AFS certification.

helping to preserve Australia’s forests and resources,” he said.

The company’s hardwood business operates 14 timber manufacturing plants in New South Wales, with sales and distribution centres in all major Australian cities.

Flooring and structural products are produced for residential, renovations and commercial projects in Australia and the USA and small quantities of woodchips are exported.

Boral’s softwood manufacturing facility at Oberon, NSW is operated through Highland Pines Ltd, a joint venture with Carter Holt Harvey, processing more than 725,000 cub m of plantation softwood annually.

A Queensland industry bus tour will be visiting Boral’s Koolkhan hardwood mill, near Grafton, and the Murwillumbah overlay flooring facility during a threeday visit to Northern New South Wales next month.

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Opinions expressed on Timber & Forestry e news are not necessarily the opinions of the editor, publisher or staff. We do not accept responsibility for any damage resulting from inaccuracies in editorial or advertising.

The Publisher is therefore indemnified against all actions, suits, claims or damages resulting from content on this e news. Content cannot be reproduced without the prior consent of the Publisher- Custom Publishing Group.

issue 112 | 15.02.10 | Page 9

industry news

Wood markets: the Russia-China factor From Page 8

markets and finance company risk managers, industry specialists and investment managers will all benefit from local and international market updates at the conference.”

The conference is being organised by FIEA in partnership with the Australian Plantation Products and Paper Industry Council. Other panindustry association supporters include Timber Queensland, the Institute of Foresters of Australia, Australian Forest Growers and the Forest Products Association of NSW. Conference sponsors include leading global forest products industry information providers USA-based RISI, Willmott Forests and DAFF [Department of Agriculture and Fisheries and Forestry].

Keynote speakers include: Eva Greger of GMO Renewable Resources, Boston, USA – speaking on international forestry investment comparisons to Australia.

Prior to joining GMO in 1997, Ms Greger was responsible for evaluating and structuring acquisitions for Resource Investments, Inc. Over a period of 12 years, she completed purchases involving $1 billion of forestry assets in three countries, as well as analysing

International Wood Markets Group, Vancouver, Canada –international wood markets and future competition from Russia and China.

Mr Taylor’s 25-five year background in the forest industry encompasses forestry, manufacturing, marketing and consulting positions. He has been responsible for various mill management activities, such as log purchasing, custom cutting, value-added remanufacturing and new product development.

Forestry is poised to capitalise on potential new rules for the next Kyoto Protocol commitment period which could make for huge change and growth Competition .., biomass and woodchip markets.

single transactions valued up to $1 billion, and led RII’s efforts in the drafting and negotiation of joint venture partnership structures.

She founded GMO’s timber group along with Eric Oddleifson, and holds the position of managing partner.

She has a BA in Economics from Harvard University and has studied timber economics at Duke University and the University of Georgia.

Russell Taylor of

He also has valuable woods experience gained through his position as operations forester for Northwood Pulp Ltd. Bob Flynn, director, international timber for RISI – international biomass and woodchip markets and future competition from South American forest industries.

Mr Flynn has more than 30 years’ experience in the forest industry, including nine years as a forester for Champion International in Oregon. He has spent the past 20-plus years as a consultant to the industry, with a focus on analysis of

timber supply and demand trends outside of North America; international trade of logs, woodchips, and biomass and trends in international timberland investment.

He joined RISI in April 2006, and has published two reports on China’s timber supply and demand; a global comparison of planted forest economics and investment attractiveness for tree farm development; a profile of India’s forest products industry; an analysis of the impact of Russia’s log export tax on Asian log markets; annual reports on international trade in woodchips and biomass; and most recently he published a report on South American plantation forestry and bioenergy markets.

Mr Flynn has a BA degree in geography from the University of Texas, a BS degree in forest management from Northern Arizona University and an MS in economics from the University of Oregon.

Further conference information from association websites including www.fiea.org.nz and www.a3p.asn.au and the main event website www. forestryfinanceevents.com Registrations can be made directly online via the event website by phoning 1800 126 298 in Australia.

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Tel: (07) 3010 1823 Mob: 0419 754 681

Page 10 | issue 112 | 15.02.10

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industry news

Setting a yardstick for merchants in labelling of certified timber products NATIONAL guidelines that will allow timber merchants to easily categorise and label certified wood are being prepared by Australian Forestry Standard Ltd following a ‘hands-on’ inspection of timber yard operations in Melbourne last week by chief executive Kayt Watts.

Ms Watts visited timber wholesalers before addressing an industry breakfast seminar convened by the Timber Merchants Association of Victoria.

“With the endorsement of timber certification by governments, timber traders must be aware of the processes in place and the impact certification will have on their businesses,” Ms Watts said.

“But the last thing we want is a labelling system that disrupts or adds unnecessary cost to the normal business operations of a timber yard.”

Ms Watts was introduced to large and medium-sized wholesale merchants around Melbourne by TMA chief executive Peter Roberts.

“Thanks to Peter we have a better understanding of the logistics of timber tallying, packaging and warehousing and believe we can devise a simple method of labelling that will identify products produced under different certification schemes as well as products that are not certified.”

Ms Watts said it was definitely not about increasing the size of timber yards or separating wood into three separate stacks – AFS, FSC or uncertified products for example.

“It’s not going to be the big dilemma some thought it might have been, but we will work to make the system efficient and effective,” she said.

“We will work with the TMA, auditors and certification bodies

Kayt Watts

Not so difficult .. labelling of certified wood in timber yards.

and standards to ensure we get it right without ‘over-managing’ any adopted system.”

TMA members at the certification seminar agreed an easy labelling method for house lots and bulk packs of timber could be achieved and that any wood broken down to smaller packs could be re-labelled.

Kayt Watts said AFS would assist any TMA member who wanted to become a certified timber merchant.

But some seminar participants suggested certification of their businesses was unnecessary if they are selling a product supplied by a sawmill that was already certified to an accepted standard.

The seminar closed with an update by TMA’s Emma Watt on OH&S management systems and the services the organisation offered at competitive rates.

Editor’s note: Under growing pressure from consumer boycotts, timber importing and retailing companies have begun to appreciate the need to identify timber products with environmental ‘acceptability’.

Several types of labelling schemes have emerged for

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forest products in recent years.

Some are based on third-party certification, while others on selfdeclarations; some refer to the quality of forest management, others to the country of origin only. Wood-based products are also included in multi-issue (life cycle-based) environmental labelling schemes. A certain degree of proliferation of certificates and labels is foreseen which has the risk of creating confusion among buyers and consumers and undermining the credibility of

Peter Roberts

claims. On the other hand, the industry is keen to have options in giving information on its environmental performance as part of marketing strategies.

Report soon on illegal timber THE federal government is expected to release the final version of a report it commissioned from the economics firm the Centre of International Economics on the best approach to stop illegal timber entering Australia.

It is believed the centre’s report recommends Australia consider only ‘’non-regulatory’’ policies, such as capacity-building programs in developing countries and relying on existing voluntary industry codes.

The report finds that illegal timber makes up 15% of the world’s timber trade and that Australia’s share is 0.34%.

The centre argues that as Australia receives only a fraction of the world’s illegal timber, a ban on its import would do little to stop illegal logging globally.

The report also said the additional costs to consumers of timber products would be disproportionate to the benefits a ban would have.

issue 112 | 15.02.10 | Page 11

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DIRECT PENETRATION via email.

WEEKLY opposed to monthly alternatives.

NEWS that is up to date that will ensure readership.

COST EFFECTIVE advertising rates.

S

Display Ads

Display Ads Minimum 4 issue booking

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

Rate per Issue + GST $330 $182 $182 $143 $120 $72 $176 $77

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

Classifieds

Classified Ads per week

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

$182 $120 $72 $330

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

Extras: Video and Animated ads - Add 20% per issue Artwork Specifications: Please supply all artwork as High Resolution (300dpi) Pdf’s or jpegs.

Send artwork to production@industryenews.com.au

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

All prices quoted plus GST and based on Art being supplied.

We can create artwork if required – Eighth/Quarter $44 Half $66 which will be billed if complete art is not supplied to our specifications.

Video: Maximum 3 meg swf file. Animation: gif file Due to the regularity of timber & forestry e news and the tight deadlines no customer proofs can be sent.

Advertising Sales

Production

T: (07) 32561776

e: production@industryenews.com.au

9810Email: cancon@bigpond.net.au Page 12 | issue 112 | 15.02.10 Custom Publishing Group Advertising:T: Tel(07) +61 73392 3256 1779 e: cancon@bigpond.net.au

www.industryenews.com.au