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issue 140 | 30.08.10 | Page 1
Productivity ‘push’ for Qld hardwoods Gympie workshop shot-in-the arm for
This Issue • Leaked document clouds forest negotiations • Timber design: the people have their say
development of freehold forest blocks
By JIM BOWDEN
sell-out raises spectre of illegal logging • Honest branding essential for engineered wood • ForestWorks assists redundant workers • 5000 km .. and the judging task is complete
Shares
It is estimated that about 2.1 million ha of ‘commercial’ hardwood and 500,000 ha of cypress native forests and woodlands are on freehold land in southern and central Queensland, providing landholders great opportunity to diversify their property income streams. Research by AgForests shows
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a large proportion of private native forests and woodlands in Queensland are underproducing timber because they have too many trees. [AgForests is a partnership that links broadacre agricultural producers and the timber and agriculture industries].
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KEY players in Queensland’s native and plantation forest sectors left a landmark workshop in Gympie last week with the instruments to chart a well-defined course for renewed development of the hardwood industry. More than 60 private forest owners, sawmillers, landholders, timber merchants, wood scientists and representatives of state government confirmed what many in the industry already knew – that native hardwoods are a sustainable, productive investor-ready and profitable resource.
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issue 140 | 30.08.10 | Page 1
GYMPIE HARDWOODS WORKSHOP
Making an impact .. Talking hardwoods in Gympie .. Jim Burgess, resource and environment manager, Timber Queensland, Stephen and Christine Bower, Peachester Sawmilling, and Rod McInnes, chief executive, Timber Queensland.
Please join us! 2010 VAFI
Annual Dinner Friday October 15 Crown Entertainment Complex in Melbourne
Watch this space! More details to follow soon
Victorian Association of Forest Industries Level 2, 2 Market Street Melbourne 3000 Tel: +61 3 9611 9000 Fax: +61 3 9611 9011 Email: info@vafi.org.au Web: www.vafi.org.au Page 2 | issue 140 | 30.08.10
Good silviculture management will ‘unlock’ resource From Page 1
This resource can be ‘unlocked’ with good silviculture management and judicial thinning offering yield potentials of 1 cub m/ha and up to 3-4 cub m/ha on good coastal spotted gum country. The total numbers of trees per hectare for best management and productivity were: ‘dry’ eucalypt dominated forest and woodland – 100 to 200 trees an acre; ‘wet’ eucalypt dominated forest and woodland 250-400 trees; cypress 250-350 trees, and outback woodland (mulga, gidgee, etc) 250-400 trees. The Department of Environment and Resource Management estimates 3.6 million ha in Queensland is covered by a native forest practice code. Since the introduction of the code in 2005, the department and Timber Queensland have worked closely with landholders to promote awareness and understanding of the code. The workshop determined industry players need to think how they will capitalise on this growth industry, concentrating on forest management, new processing technology for
smaller diameter logs, marketing and conservation issues. What is certain is that the internment of 1 million ha of western hardwoods into reserves has put the remaining industry players in the box seat. Government mill buyouts have reduced annual volumes to around 25,000 cub m with a reduction in minimum DBH from 40 cm to 30 cm, which has taken some of the pressure of the private resource. Listed casualties in hardwood operations include Burnett Sawmill, Queensland Sawmills at Allies Creek, Mulgildie, Gowanlea, Emerald Sawmill, Winstons Timbers, Dennings Sawmill at Fernvale, Hyne, Conondale Timbers and Boral. The hardwood sector enjoys a unique, unchanged and strongly guarded agreement between industry, the state government and the conservation movement, initiated as part of the federal RFA process – while RFA agreements have been revised in all other states. This expanding sector is buoyed by the Southeast Queensland Cont Page 8
across Australia’s forest and forest products industry .. since 1940
How do you employ
apprentices? At Tabma we do it all! We recruit We train We mentor We provide reports We develop We rotate if necessary Forget the drama – call Justin Dwyer on (02) 9277 3172 and find out how easy it is for us to do all of it for you.
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industry news
Document leaked to media clouds forest negotiations THE content of a leaked document on sensitive roundtable talks on the Tasmanian forests conflict fails to give the true picture of the long-running debate between the industry and environmentalists and has clouded the process. “The document reports discussions out of context, and is presumptuous of any agreed outcome,” the chief executive of the National Association of Forest Industries Allan Hansard said. A so-called draft plan, described as the final stage of negotiations between the industry, timber communities, forest contractors, unions and environmental groups, appeared in the mainstream media last week and over ABC radio Hobart. It claimed a deal
Terry Edwards .. no agreements reached.
had been reached, trading off an end to native forest logging in exchange for a green light on the Gunns pulp mill. “Our discussions have been continuing for a long time to reach eventual outcomes and
all parties have been pleasantly surprised that these talks have been kept ‘inside the tent’ until we reach a resolution,” Mr Hansard said. “The media report has clouded the issue, leading people to the wrong conclusions.” The chief executive of the Forest Industries Association of Tasmania Terry Edwards said the draft contained some issues that might be agreed to in principle but there were a number of issues that were better described as negotiating positions by one or other parties. “Certainly no agreements have been reached,” Mr Edwards said. “The leaked draft plan is what it says it is, a negotiating draft; there is much talking still to be done. “There is a suggestion in the document of a transition out of native forest over time and it also includes reference to ‘a pulp mill’. Drawing conclusion that the reference is to the Gunns pulp mill is miss-reporting.” The three peak environmental groups involved in negotiating the forest ‘peace talks’ are the Wilderness Society, the Australian Conservation Foundation and Environment Tasmania. The forest industry and its workers have been represented by senior national executives from Timber Communities Australia, the National Association of Forest Industries, the Australian Forest Contractors Association and the CFMEU. The Wilderness Society has been quick to refute the suggestion its negotiators had already traded off approval for the Gunns pulp mill in the Tamar Valley in return for protecting Tasmania’s native forests.
Book Now! 9 September 2010 Sofitel Melbourne
“Australia’s Place in the Changing Global Forest Products Market” Forest Industry Development Conference, presented by ForestWorks This major industry development conference will include speakers from global certification bodies, environmental nongovernment organisations, leading global forest products innovators and the Australian industry. Key themes: Markets: Emerging Forest Products Markets Investment: Growth for the Industry Community: Stakeholder Support for Forestry and Forest Products
Book now! Contact cday@forestworks.com.au Visit www.forestworks.com.au to download a full Registration Form
Australia’s Place in the Changing Global
Forest Products Market
Cont Page 6
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issue 140 | 30.08.10 | Page 3
industry news
Robust growth in Asia pushes demand for Aust timber products: URS report ROBUST growth in major Asian markets over the past 12 months have resulted in strong demand for Australian exports, including wood products, says the quarterly URS Asia Pacific timber market report released last week. China and India in particular have both recorded double digit GDP growth over the past 12 months. Although commodity prices have fallen over recent months due to some slowing in China’s growth and some uncertainty in the European economies, Australia’s trade outlook remains strong. The report says Australia’s economy continued its post global financial crisis growth trend in early 2010, but at a slower rate, Real gross domestic product increased by 0.5% in the March quarter, compared to 1.1% growth in the December quarter 2009, resulting in a respectable 2.7% in GDP growth over the 12 month period to date. Results from the quarterly Westpac-Australian Chamber of Commerce and Industry survey of industrial trends have shown that business confidence in recent quarters has been strong, and general activity to be well above the
Page 4 | issue 140 | 30.08.10
Australian wood products .. growth market in Asia.
decade average (-3 points) and indicative of an expansion in the manufacturing sector over the quarter, driven by growing private demand and investment growth. The URS report says the Australian wood products sector will be relying on solid domestic consumption and a ‘not too bullish’ Australian dollar to help grow the industry over coming months. The housing sector will be a key contributor to consumption. The latest ABS housing market indicators seasonally adjusted commencements grew during the quarter by 4.3% from 40,656 in December 2009 to 42,399. Total spending on alterations
and additions also rose over the March quarter by 2.6%. However, the key indicators of housing construction – dwelling and finance approvals – fell, signalling a likely softening in the dwelling construction market later this year. The volume of softwood sawn timber imports increased by 20% in the June quarter from 145,000 cub m in the March quarter, to 174,000 cub m in the June quarter 2010 . An increase in imports was due to several large volume increases reported this quarter across New Zealand (+19%), the Czech Republic (+16%), Estonia (+62%), Austria (+50%) and Sweden (+95%).
The Australian dollar, which weakened slightly against the US dollar over the June quarter, remained relatively strong compared to historic levels. {Softwood sawn timber export data was not available for the March-June quarters at the time of publishing the report]. Imports of hardwood sawn timber fell in the June quarter, continuing a decline since December 2009. This reinforces a long-term downward trend in demand for imported sawn timber. This quarter’s decline was driven by a fall in the volume of timber imported from Indonesia, which remains a major source of imports, accounting for 28% of hardwood timber imports by volume. The URS report says that after reaching a record high in the lead up to the financial crisis, the cost of international shipping fell dramatically in mid-2008. Costs since have been volatile, having increased slightly, before falling significantly from June to July 2010. Some slowdown in Chinese imports of bulk commodities such as iron ore have been blamed for the fall in shipping costs.
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events
WHAT’S ON? 3-5: Canberra Timber & Working With Wood Expo, Exhibition Park in Canberra. Contact: (02) 9974 1393. Fax: (02)9974 3426 Email: info@eee.net.au 6-12: Landcare Week. www.landcareonline.com 7: WoodSolutions 2010. Program for architects, engineers and specifiers. Dockside, Darling Harbour, Sydney. Register interest at www.woodsolutions2010.com.au 7-9: Wood Manufacturing 2010. Rotorua, NZ. Designed for wood processing operations in the dry mill and stand-alone wood manufacturing companies. View: www.woodmanufacturingevents. com 8-10: AFAC bushfire CRC annual conference. Darwin Convention Centre Australia. www.afac10.org 9: Wood Solutions 2010 program. Melbourne Convention and Exhibition Centre. Register interest at www.woodsolutions2010.com.au 9: First Super Plantation Investors’ Seminar. Sofitel Melbourne on Collins. Day prior to industry development conference – ‘Australia’s Place in the Changing Global Forest Products Market’. Contact: ForestWorks cday@ forestworks.com.au Visit www. forestworks.com.au to download a full registration form 9: Australia’s Place in the Changing Global Forest Products Market. Future opportunities for global forestry markets including renewable energy; certification and regulation of global markets; ownership and investment in Australia; industry-led solutions for a sustainable industry. Presented
by ForestWorks, Sofitel Melbourne on Collins. Note: Forest industries liaison dinner in the evening at the Regent Theatre on Collins Street. For information contact: cday@ forestworks.com.au 13-15: Manufacturing 2010. Melbourne. Designed for wood processing operations in the dry mill and stand-alone wood manufacturing companies. View: www.woodmanufacturingevents.com 15: WoodSolutions 2010 program. State Library of Queensland, Brisbane. Register interest at www. woodsolutions2010.com.au 15-16: Wood Manufacturing 2010 Profitable Wood Manufacturing - Tooling Technology & Design, Melbourne. 20-21: Wood Manufacturing 2010 Profitable Wood Manufacturing - Tooling Technology & Design Rotorua, NZ. 30-2 October: The Future of Forestry and Forest Science Conference. Celebrating the centenary of forestry education in Australia. Sydney Myer Asia Centre Carrillo Gantner Theatre, Melbourne University. Contact: Event Planners Australia forestry. Email: 2010@eventplanners.com.au September-October: Centenary of Forestry Education in Australia. Celebrated with various activities and events reflecting on the past, and preparing for the challenges of the future.
OCTOBER 2010 9: Queensland Timber Industry Awards Dinner. Sofitel Brisbane Central, 249 Turbot Street, Brisbane. Contact: TABMA Queensland. Tel: (07) 3254 3166. Mob:0438 295 136. www.tabma.com.au
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10-13: Australian Forest Growers national conference, Mount Gambier, SA. Chief executive Warwick Ragg. Contact national office: (02) 6162 9000.
SUSTAINABLE. sustainable. responsible. . RESPONSIBLE
12: ForestWood 2010. A pan-industry conference jointly hosted by the Forest Owners Association (FOA), Wood Processors Association (WPA), Pine Manufacturers Association (PMA), Forest Industry Contractors Association (FICA) and supported by Woodco, NZ Farm Forestry Association (NZFFA) and Frame & Truss Manufacturers Association (FTMA). Venue: Museum of New Zealand Te Papa Tongarewa in Wellington.
The National The National Association of of Forest Association Industries (NAFI) Forest Industries (NAFI) represents is striving for an Australian companies, ecologically sustainable individualssociety and Australian organisations involved achieved through in thedynamic, forestry and forest products internationally industries. competitive forest industries. NAFI works with state and
15-17: Melbourne Timber and Working with Wood Expo, Melbourne Showground, Melbourne. Contact: (02) 9974 1393. Fax: (02)9974 3426 Email: info@eee.net.au 19-20: MTC Global Woodmart: Gateway to International Wood Markets. The first ‘one-stop’ selling and buying platform for all suppliers and buyers of wood and wood products. Early bird discount 5%. Organised by the Malaysian Timber Council at the Kuala Lumpur Convention Centre, Malaysia. Contact: Malaysian Timber Council. Tel: +60 3 9281 1999. Fax: +60 3 9289 8999. Email: council@mtc.com.my Web: www.globalwoodmart.my
2010
SEPTEMBER 2010
29: TABMA annual dinner. LunaPark, Sydney. Incorporating theAustralian Timber Design Awardspresented by TDA NSW. Dinnersupported by TDA, NSW Forest
Products Association and FWPA. Contact: TABMA on (02) 9277 3172
federal governments to support interestsis of to its NAFI’sthemission members while the same represent theatinterests time improving industry of members by standards and practices, promoting the promoting sustainable environmental forestry management and educating the broader sustainability and community on theof the prosperity economic, environment Australian forest and social benefits of industries. a strong sustainable forest industry. National Association of The National Association Forest Industries Ltd of Forest Industries (Est. 1987) Ltd (EST.1987) PO Box 239, PO Box 239, Deakin ACT 2600 Deakin, ACT 2600 Tel: (02) 6285 3833. Tel: (02) 6285 3833 Fax: (02) 6285 3855 Fax: (02) 6285 3855 Web: www.nafi.com.au www.nafi.com.au Web:
issue 140 | 30.08.10 | Page 5
industry news
Assistance funding to help redundant workers in industry SKILLS and learning developer ForestWorks has received funding to support workers made redundant at Tas Papers’ Burnie and Wesley Vale paper mills. Chief executive Michael Hartman addressed more than 50 attendees at the community program launch in Burnie this month. Participants were able to discuss the assistance program with Sid Sidebottom, MP for Braddon, CFMEU representatives Alex Millar and Ken Fraser and O Group (Choose Employment) representative Tony Cohen. Two former mill employees Greg Short and Kelly Hunt have been employed by the program to assist workers to develop new skills and find employment.
Mr Hartman said the ForestWorks model of workers assistance was based on providing services over many years to more than 1500 workers made redundant in the industry. “It relies upon the employment of committed former workers who have also lost their jobs, but are mentored into being able to assist other workers move to new careers,” Mr Hartman said. Greg Short and Kelly Hunt are available for information, advice and job seeking guidance. Contact Greg on 0429 095 118 and Kelly on 0428 861 710 or Tony Cohen on 0408 850 030 tony.cohen@ choosemployment.org.au
Negotiations clouded From Page 3
Local Wilderness Society campaigner Vica Bayley said the negotiating agreements discussed the approval of “a pulp mill” somewhere in Tasmania, not the specific $2.5 billion Gunns mill approved by the federal parliament. Meanwhile, TAP [Tasmanians Against the Pulp Mill] has slammed the suggested banning of all the harvesting of public native forests.
“There has been no dialogue between the community and the environmental negotiators; this renders the process invalid and will not prevent massive protests against Gunns controversial pulp mill,” a TAP statement said. “The fact that high conservation value ‘old growth’ and threatened species habitat should be preserved is not disputed. But to lock up all native forest is an absurdity.”
W’haeuser dividends in cash THE majority of shareholders in Weyerhaeuser, one of the world’s largest lumber and wood products companies, have elected to receive their cut of a special $5.6 billion dividend in cash. About 138.9 million shares, or 66% of Weyerhaeuser shares outstanding, chose to be paid in cash and will receive about
Page 6 | issue 140 | 30.08.10
$4.03 a share, or 15% of their special dividend, in cash. The roughly 72.7 million, or 34%, of remaining shares will receive the dividend in stock. The average closing price at August 25-26 would determine the number of shares each shareholder will receive. The company expects to pay the dividend on September. 1.
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INDUSTRY NEWS
Timber design: the people have their say that
feature
A separate category – the Rising Star Award – is open to students and entrants aged 30 or under. Visit www.timberawards.com. au and follow links to the people’s choice award section.
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The awards are open to architects, builders, designers, engineers and landscapers – anyone in the design or building
of structures timber.
r
THE chief executive of TABMA Australia Colin Fitzpatrick and Australian Forestry Standard CEO Kayt Watts have met with suppliers, wholesalers and merchants in the Sydney region to discuss chain of custody certification. “There has been a feeling of disquiet with many over the traumas and costs of certification,” Mr Fitzpatrick said. “Kayt was able to explain that certification is not the ‘bogey’ that many anticipated and it can be achieved at minimal cost and disruption to business.” Mr Fitzpatrick said there was no doubt that chain of custody and requests for certified timber would escalate rapidly over the next 12 months. “Most suppliers and merchants should be prepared to start receiving requests for certified timber from government departments and architectspecified projects within a short space of time,” he said. Contact Tabma (02) 9277 3172.
The Australian Timber Design Awards are the premier timber
design competition in the Australasian region. Now in their 11th year, the awards claim a proud heritage of innovation and achievement.
ne ree
Cost of CoC explained to merchants
Award, the judging panel will determine all other timber design award winners. The people’s choice winner will be chosen on October 29, shortly before the announcement of the overall awards winner.
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VOTING has opened for the ‘people’s choice’ in the 2010 Australian Timber Design Awards. Members of the public can view all entries and vote online for whichever entry they like best. “We have a very eclectic field of entries this year, so we’re certain you’ll find a project that suits your taste,” said Andrew Dunn, chief executive of the Timber Development Association which organises the awards. “Voting is easy: just click on images to view the projects, select the project you like best, and click the ‘vote’ button.” Although the public chooses the winner of the People’s Choice
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issue 140 | 30.08.10 | Page 7
GYMPIE HARDWOODS WORKSHOP
Hardwood industry has access to some of the best new technology From Page 2
forests agreement and western hardwoods process to secure resource and give assurances the state will deliver on the final phase of a 20,000 ha native hardwood plantation estate. Also, the workshop was encouraged by the Hancock group’s pursuit of hardwood plantations following its recent purchase of Forest Plantations Queensland. The new FPQ Pty Ltd entity has acquired 13,000 ha of government hardwoods in its plantations buyout and has honoured a commitment to plant another 7000 ha on existing plantation land by 2024, to be managed on a commercial basis, most likely in the higherrainfall, soil-rich Brisbane-Mary valleys region, hub of the hoop pine production area. Based on early thinnings to final stocking and pruning to 6 m, plantation hardwood growth rates of around 8 cub m/ha a year are expected to produce 160,000 cub m annually from the 20,000 ha by 2025. However, the additional committed plantings nearer the coast could see annual growth rates up to 10 cub m/ha. It is likely that Hancock will be better advantaged with plantation hardwoods on a 20year rotation than softwood plantations on a 35-year rotation, especially with new technologies emerging to achieve greater recoveries from smaller diameter hardwood logs. Timber Queensland’s resource and environment manager Jim Burgess sees a need for a financially viable plantation model. The Queensland government’s 2020 plantation strategy would improve opportunities for hardwood plantations, he said. Over the next decade, the
Page 8 | issue 140 | 30.08.10
Unlocking the potential .. sound future for native hardwoods
government will concentrate on core areas to support plantations investment, new land-use planning framework, legislative and policy reform and industry development support. The new land-use planning framework will recognise timber plantations as a legitimate form of agricultural cropping for general land use planning purposes. A timber plantation development assessment code will be established to bring timber plantations more in line with long-term agricultural cropping activities.
Jim Burgess said there would be growing pressures from the government and commercial sector in the longterm for private native forests to be certified. Most major processors in Queensland had chain of custody certification and major plantation growers were already certified. Certification is not the ‘bogey’ that many anticipated and it can be achieved at minimal cost and disruption to farming and grazing operations. Hancock’s Queensland plantations are certified under AFS but the group is also seeking FSC certification, in
line with its other investments in Australia. A presentation at the workshop by Dr Henri Bailleres, wood technology engineer at the DPI forestry science unit, shows the hardwood industry has access to some of the most brilliant new technology. With 45 scientists at Indooroopilly, Salisbury, Gympie and Mareeba, the unit stands as the last bastion of forest research in Australia and deserves the support of every segment of the Queensland timber industry. The Salisbury research centre alone has invested more than $1.5 million in infrastructure such a 720 sq m composite facility, high-speed lathes, outfeed systems, veneer clippers and guillotines, splicers, glue spreaders, presses and trim saws. “Our primary focus is the establishment of a Queensland hardwood plantation industry,” Dr Bailleres said. It was achieving this by selecting appropriate species, genetic improvement for form, growth, and disease resistance, plantation and pest/ disease management systems, developing products and processing systems to best suit plantation hardwoods, and utilising options for hardwood thinnings. Dr Bailleres said the drivers for research were the phasing out of native hardwood logging from Crown lands by 2023, substitution with plantations at around 20-year rotations and the limited area under hardwood plantations, which was currently about 68,000 ha, but mostly grown for pulpwood. Industry required a further 50,000 ha for sawlogs, but this was restricted by the availability of suitable land-price-edaphic factors.
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QUEENSLAND HARDWOODS WORKSHOP
Sam Ellis, AgForward, Brisbane, with the Dale and Meyers team from Maryborough Tracy Carlson, Clinton Marstella, and Nigel Martin.
Timber & Forestry e-news is the most authoritative and quickest deliverer of news and special features to the forest and forest products industries in Australia, New Zealand and the Asia-Pacific region. Weekly distribution is over 6,400 copies, delivered every Monday. Advertising rates are the most competitive of any industry magazine in the region. Timber&Forestry e-news hits your target market – every week, every Monday! HEAD OFFICE Custom Publishing Group Unit 2- 3986 Pacific Highway Loganholme 4129 Qld, Australia
Dr Henri Bailleres, principal research scientist (product development), Innovative Forest Products-Horticultural and Forestry Science (centre) with Paul Deakin, Howard Sawmill, Howard, and Mye-Ann Slack, Slack’s Hardwood, Gayndah.
PUBLISHER Dennis Macready admin@industryenews.com.au CONSULTING EDITOR Jim Bowden Tel: +61 7 3256 1779 Mob: 0401 312 087 cancon@bigpond.net.au ADVERTISING Tel: +61 7 3256 1779 cancon@bigpond.net.au
Sessions speakers for hardwood processing .. Laurie Gardner, Mapleton, Tim Evans, Caboolture, and Owen Woodford, Noosa.
John Halkett, Forestlands Consulting, Sydney, Dr Henri Bailleres, principal research scientist, Innovative Forest Products-Horticultural and Forestry Science, and Rod McInnes, chief executive, Timber Queensland.
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PRODUCTION MANAGER Leigh Macready Tel: +61 7 3841 8075 production@industryenews.com.au
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 140 | 30.08.10 | Page 9
INDUSTRY NEWS
Honest branding, compliance essential for engineered wood: EWPAA president A NEW Zealand-based innovator for plywood, LVL and panel products has been elected a third-term president of the Engineered Wood Products Association of Australasia. Rene deVries, quality and improvement manger at Carter Holt Harvey Woodproducts, Tokoroa, served as president in 2002-2006 and 2006-2009. He returned to the position this month after Ben Sawley stepped down following management changes at Boral Ltd. Mr Sawley, who was general manger of Boral Plywood, has taken a regional management position in Boral’s building and construction division. Mr deVries has served more than 40 years in the plywood industry in New Zealand, arriving from the Dutch West Indies in 1967. His long career in the NZ timber industry started with private company HG Ply which metamorphosised over the years as Odlins, Whetstone, Fletcher Wood Panels, Fletcher Forest, Tenon and finally Carter Holt Harvey in 1996-97. His parents moved from the Netherlands after World War 2 and settled at Curaçao an island
members were at the forefront of design and innovation in engineered wood building systems, both in commercial and domestic construction. Plywood, LVL and wood panels were a $500 million industry and supported more than 5000 jobs on both sides of the Tasman.
Rene deVries .. exciting challenges for engineered wood.
Ben Sawley .. regional management position at Boral.
in the southern Caribbean Sea off the Venezuelan coast. The lifestyle and the poultry farm they established there were far more appealing than post-war conditions in Holland. Mr deVries said engineered wood was facing a number of exciting challenges and the EWPAA was positioned to expand its boundaries as a high-profile and respected industry organisation and product-testing facility.
“Our priorities in developing and strengthening markets include on-going measures to ensure all products comply with standards,” Mr deVries said. “We accept that imports are a reality – but they must comply with Australasian standards. Effectual branding and structural safety are essential.” Mr deVries is a long-time advocate of honest branding of products. “As a watchdog on building materials entering the market, the EWPAA will come down very hard on those who try to cheat the system and bring in noncompliant and unsafe products through the back door.” Mr deVries said EWPAA
“Through product innovation, consistent quality and the strictest adherence to Australasian building codes and compliance, the engineered wood products industry is committed to a ‘buy homegrown’ business belief that supports job protection and creation – vital in these times of economic uncertainty.” Mr deVries said EWP producers were continuing to invest in the future. He referred to the re-development of CHH Woodproducts Australia’s plywood mill at Myrtleford, Vic, as an example, which was transforming the existing 25-year-old sawmill into a world-class facility. EWPAA has a strong membership base in Australia, New Zealand, Papua New Guinea and Fiji.
Be SURE about INSURANCE Trusted brokers to the timber industry since 1985
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Page 10 | issue 140 | 30.08.10
Contact Alan Jones Email: alan.jones@premier.austbrokers.com (Licence No. 238123)
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CAREERS IN TIMBER
Campaign targeting summer jobs Giving students their ‘first taste’ of industry
By MELISSA HOUGHTON
MANy industry organisations employ students over the summer in a wide range of jobs including forestry, administration, manufacturing and logistics. Each student is a potential future recruit to the organisation and the industry overall. Forest and Wood Products Australia is widening this potential pool of students by increasing awareness of summer work opportunities and promoting the benefits to future employees – as well as the opportunities to study forestry at an undergraduate or post graduate level. FWPA is putting together a national summer jobs marketing campaign targeting science,
Summer jobs campaign targets students.
agriculture and environment students across 10 universities. The campaign seeks industry support to provide students
OUR WORD IS OUR BOND Look for the stamp of excellence Advertising: Tel +61 7 3256 1779 Email: cancon@bigpond.net.au
with their ‘first taste’ of the forest and wood products industry. The promotion activity will
commence mid-September and will continue until the exam period. Companies that employ students over the summer period and show them the best of what the sector has to offer will have access to a talented pool of potential recruits upon graduation. For the summer job campaign to be a success, we need a significant number of quality jobs to be listed on the new industry promotion website (www.growingcareers.com.au). These jobs will be promoted to university students by way of online display advertising, email campaign, job boards – both the major commercial as well as the university job boards – posters Cont Page 12
Don’t give traders who cut corners a licence to sell wood that threatens the lives and livelihood of our workers. Face the facts FACT: All EWPAA structural plywood and Type A bond exterior plywood have an emission class of E0 or E1 certified under a JAS-ANZ accredited system. FACT: All EWPAA products have a durability guarantee and all EWPAA members carry liability insurance. FACT: All EWPAA products can gain extra Green Star rating points – one for low formaldehyde emissions (E0 or E1) and one for super E0 in office fit out. FACT: Not all imported non-certified LVL and plywood
meet these requirements. In fact, laboratory tests show many imported non-certified products are continuously failing Australian standards for emissions and bonding strength and are life threatening. FACT: Manufacturers, agents and suppliers trading in inferior quality, unlabelled and non-compliant plywood and LVL risk damage to their business, media exposure and high penalties under Australian law.
Don’t risk it. Specify EWPAA products stamped with the approved certification. Engineered Wood Products Association of Australasia Plywood House, 3 Dunlop Street, 4006 Queensland Australia Tel: 61 7 3250 3700 Fax: 61 7 3252 4769. Email: inbox@ewp,asn,au Web: www.ewp.asn.au
issue 140 | 30.08.10 | Page 11
industry news
Norwegian investor’s shares sell-out raises the spectre of illegal log trade A DECISION by one of the world’s largest institutional investors to divest all of its shares in a Malaysian timber conglomerate accused of illegal logging has revived industry concerns in Australia over “ineffectual” anti-dumping legislation. The Norwegian Government Pension Fund has sold all its 16 million shares in Samling Global, worth $US1.2 million, following a groundbreaking decision last week by the Norwegian Ministry of Finance. The World-Wire media service reports the decision was made after a probe on Samling’s logging operations found the corporation responsible for systematic illegal logging in the east Malaysian state of Sarawak on trhe island of Borneo. The probe was conducted by the Government Pension Fund’s Council on Ethics and documented “extensive and repeated breaches of the licence requirements, regulations and other directives in all of the six concession areas that have been examined”.
Legality questioned .. some Malaysian log harvests are under scrutiny by the Norwegian government.
“Some of the violations constitute very serious transgressions, such as logging outside the concession area, logging in a protected area that was excluded from the concession by the authorities in order to be integrated into an existing national park, and re-entry logging without environmental impact assessments”, says the report. Trade observers say this brings
Summer jobs campaign From Page 11
and postcards on campus and student ambassadors who will talk to students about the summer jobs available. Students will need to visit www. growingcareers.com.au and sign up for the summer jobs program. We will then send out relevant jobs to those students that have signed up via email. Applications will go directly to your nominated HR contact and you would be responsible for managing the recruitment process and obviously the jobs themselves. FWPA simply acts as the driver to the job applications.
Page 12 | issue 140 | 30.08.10
This is a campaign where industry working together (by pooling the available summer jobs) can increase the pool of possible candidates and also promote the benefits of the sector as a career. Everyone is a winner. So if this sounds like something you would like to be involved in, contact Melissa Houghton on 0412 811 450 or melissa@ sustainabilityatwork.com.au or Tania Crosbie on 0412 149624 or tania@sustainabilityatwork. com.au by Friday, September 3. • Melissa Houghton is a director of Sustainability at Work.
into question a decision by the Australian Customs and Border Protection to reject an application by the Australian industry for anti-dumping action against Malaysian timber imports. The federal body’s finding that Malaysia was not dumping plywood was based on log pricing supplied by Samling – log costings that were roughly 60% below transparent market pricing. “Based on the Norwegian investigation, the costing provided by Samling appears to be based on illegal wood,” a Sydney timber trader said. “Customs should now be held accountable over how they could accept the Samling costings – that almost certainly were based on illegal wood – and reject the anti-dumping application.” The International Tropical Timber Organisation last year indicated domestic log prices
in Malaysia for meranti, balau, merbau and keruing were in excess of $US200 cub m and were similar to export prices. The anti-dumping application claimed that Samling’s verified prices for logs [which they considered to be about $US80 cub m] were unreliable and not representative of Malaysian domestic prices and should not be used to construct normal values. The Norwegian Minister of Finance Sigbjorn Johnsen said Samling’s forest operations in the rainforests of Sarawak and Guyana contributed to illegal logging and severe environmental damage and he had therefore chosen to exclude the company from the government’s investment portfolio. The World-Wire report says Samling is one of the companies accused of large-scale logging of Sarawak’s primary rainforests and responsible for the destruction of the livelihood of the Penan and other indigenous communities. Norway has more than 7 million ha of productive forest, all certified under a national set of criteria and indicators for sustainable forest management. The ISO 14001 certification system, in combination with the national forest performance level standards, is applied to all commercial forests in Norway and is accepted under the Program for the Endorsement of Forest Certification (PEFC) and endorsed by the PEFC Council.
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events
Three weeks, 5000 km .. and the task is complete for judges of industry awards Entrants score high points for quality, service and integrity
KAREN: “So Bill, in one word, how would you describe our experience of judging the 2010 Queensland Timber Industry Awards?” Bill: “Enlightening. And you?” Karen: “Challenging. But in a good way!” Over three full weeks we covered about 5000 km in our program of inspections and interviews to discover who in the Queensland timber industry is performing at the top level across 12 different categories. During this time we spent five hours in airports, three hours in a plane and 13 hours in our longest day in a car. We made over 75 phone calls and consumed uncountable litres of coffee. We also uncovered a deep and profound question running through a number of nominated sites – just how old IS Bill Kranenburg because he’s trained a lot of the highly skilled, advanced and respected people in the industry. (You can ask him yourself on October 9). We have taken our responsibility in the judging process very seriously; using weighted criteria for objective and measurable comparisons. However, even with these auditing tools, we regularly found the process of comparison and the need to choose one ‘winner’ to be a difficult and hair-pulling experience. Our notes and reference photos helped nut out this problem. But what a fantastic dilemma to have. The nominees included a mix of both TABMA Queensland members and non members and it was great to be able to assist various non-members with some vital information that our members are privy to. Throughout what was effectively
Karen Johnston and Bill Kranenburg report on their judging of the Queensland timber industry awards a survey of industry, we have identified both the good and the scary, and have ideas churning as to how TABMA Queensland can assist in improving the latter. Firstly though, the good – as we see it. There are some great innovations in the utilisation of IT in processing and a focus
industry. There is also a willingness to share information and the openness and friendliness of the Queensland industry is second to none. Nominees all opened their businesses to us and our questions, and those we spoke to throughout our interviews (nominees, managers and their customers) were eager to assist
on maximising the use of all available resources. This can include machinery, workflow setup, workers’ skills and organisational cultures that promote continual improvement. The application of technology for administration and advanced work practices has transformed the efficiency and safety of our industry. There is a wonderful momentum across the board in the commitment to waste minimisation and the proper utilisation of residual product. This not only benefits the bottom line but also the environmental kudos of the
and share their thoughts. The companies visited have attracted a great number of loyal customers and suppliers and some are constantly providing additional services, and high service levels, to maintain these relationships for the future. A number of lifestyle concepts have also entered the industry both in the range of products and services offered and also in the approach taken to share information and develop relationships with customers. Within the categories that compare people, we discovered there are a large number of personnel that embody the
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concepts of quality, service and integrity. Comments relating to our future workforce and the trainees who have been nominated, demonstrate there are young men and women in the next generation who really do have a work ethic, are willing to learn and are eager to build their careers within our industry. With the above, a big pat on the back is needed. Now for the kick in the pants! We have identified there are major gaps in areas relating to basic knowledge of critical concepts. This includes some misconceptions about timber properties, some instances of NO awareness of what chain of custody is about, and some serious non-compliance with Workplace Health and Safety’s legislative requirements. There is also a massive variation in the commitment to staff and career path development between organisations. On the ‘plus’ side, to address the above is just a matter of ensuring you have adequate access to the right information to keep up to date, and a commitment to educating not only your staff, but yourselves as well. We have identified some realistic needs throughout industry and are in the process of gaining more information to put together services to assist in addressing these. Now the hardest part is over, it is time to focus on the fun. The announcement of winners and presentation of the awards will be at the Sofitel Brisbane City on Saturday, October 9, during the industry’s gala ‘casino theme’ evening. We look forward to seeing you there! • See notice Page 16.
issue 140 | 30.08.10 | Page 13
QUEENSLAND HARDWOODS WORKSHOP Tim Evans, Coast to Coast Pacific, Caboolture, Karen Johnston, chief executive, TABMA Queensland, and John Halkett, Forestlands Consulting, Sydney.
Timber industry consultants Owen Woodford of Noosa and Laurie Gardner of Mapleton discuss hardwoods with Robert Tapiolas of the Parkside Group.
Bradley Petersen, DERM Forest Products, Gympie, and Emma Franks and Brad Cook, Parkside Group.
Warren Jeffrey, Osmose Australia, and Wayne Hulin, national business development manager, AustSafe Super.
Brad Crook, Parkside Group, and Peter Wallbank, and Richard Bennett of Koppers Wood Products, Takura, NSW.
Workshop speaker Ted Stubbersfield, director, Outdoor Structures Australia, Gatton, Qld (left) confers with Michael Barritt, South Bundaberg Saw and Planing Mills, and Laurence Burnett, Doyles Home Timber and Hardware, Brisbane. Stephen Walker, general manager, Department of Environment and Resource Management, Brisbane, and Clarissa Brandt, communications manager, Timber Queensland.
Page 14 | issue 140 | 30.08.10
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GYMPIE HARDWOODS WORKSHOP
Land owners must consider a harvest plan for their hardwood timber stands PROJECT officer for AgForests Sam Ellis says a lot of resources have been put into developing a generic timber harvest contract for property owners. “There is a demand among land owners to have a working template,” he said. “A timber harvest agreement has been developed to enable producers to sell their timber by way of a lump sum or variable quantity method. “Land owners are not always experienced in selling timber and often overlook important aspects of timber harvest agreements and the need for a timber harvest plan.” Mr Ellis said a timber harvest template would promote environmentally sustainable harvesting of native forests. He said Dr Justin Ryan was working on a project involving tree belts in the landscape and their effect on a number of factors including wind, moisture retention and penetration combined with biodiversity and production values. “I was able to provide research sites for Justin’s work across Queensland,” he said. AgForests has a strong network of land owners and a capacity to deliver high quality programs at workshops around the state. Mr Ellis said a code of practice applying to native forests on freehold land enabled remnant freehold country in Queensland to be sustainably managed. He said the workshops enhanced land owners’ knowledge of how to look after their timbered areas. “It also enables them to see how they can sustainably produce timber. Once producers come to the realisation that they can actually harvest timber to provide an additional income stream to complement their current farming activities there is a shift in attitudes.” Mr Ellis said.
Shift in attitudes .. field days are helping land owners develop additional income streams to complement grazing and agriculture.
“People leave workshops with a positive attitude towards sustainable timber management. With fewer than 2000 producers so far attending, there is still a very strong demand for forest practice workshops in the state.” ... ... ... GYMPIE workshop host Rod McInnes, chief executive of Timber Queensland, said it was vital to keep the hardwoods impetus moving. The range of speakers and input by participants was enough to develop a strategy to send around the troops for consideration. “Private native forests have a role to play in Queensland in the long-term. As long as we operate under the code process it’s a safe bet,” he said. Mr McInnes emphasised the importance of Timber Queensland’s ability to drive the process – to press all the right buttons – and the overall benefits of taking membership in the organisation. ... ... ... GENERAL manager of DERM Forest Products Stephen Walker said the workshop brought all sectors of the native forest and potential plantation industry up to a new level of understanding – the background and the challenges ahead. “The workshop was buoyed by the prospect of native hardwoods offsetting any cessation of harvesting from
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state lands and the potential for plantations,” he said. ... ... ... TIMBER consultant and former hardwood sawmiller Laurie Gardner of Mapleton said the workshop highlighted the need for industry players to get together more often in an environment of mutual understanding. [Rod McInnes said it was likely similar workshops would be held at least once a year]. Mr Gardner said the workshop showed there was an absolute future for the private forest sector. “It was heartening to hear positive comments from the Hancock group about the future of plantation hardwoods, although any future plantings on coastal land might not augur too well for the hoop pine sector,” he said. He said there were exciting long-term possibilities for the processing of private forest logs such as the so-called “kerfless cut” or peeling method that would maximise the use of the wood and get the most out of smaller stems. “QFRI is well-focused on this and the industry must really get right behind them. He added: “There will be some fantastic opportunities for investors in the hardwood industry, if they are patient.” ... ... ... PROPERTY owner and cattleman Owen Thompson who
has about 1000 ha under timber on the Mary River at Tiaro, near Maryborough, says the private forest sector has every reason to strengthen its market potential. “The future looks bright,” he said. “Also, people should realise that this sector was taken up in different selections and tenures and when it was freeholded part of that contract process meant you actually bought the rights to the commercial aspects of the vegetation,” he said. “This has become the only real ‘waddy’ the sector has should a government, through a political whim, or because of land management issues, decide to interrupt a property’s tree cutting operation. There are historical records and a whole bunch of receipts out there. The only option it has it to buy back the land - and the wood on it “This would represent a resumption of a commercial business, but people should realise the Crown has taken money in exchange for the rights to the commercial vegetation.” Mr Thompson said a lot of land became freehold tenure many years ago, while other blocks were converted less than 10 years ago. A recent example was a property owner on 8 ha who paid $6000 for the timber on it as part of buying out the freehold. “The timber’s his.” He said present-day owners and future generations will soon realise just how valuable this timber is. Mr Thompson said he welcomed the involvement of Timber Queensland in the process. “We are 12 years down the RFA track, so it’s encouraging to see an organisation that was for a long time the voice of the processing sector now take up the cudgels on behalf of the producer sector.”
issue 140 | 30.08.10 | Page 15
FOCUS ON SOLOMON ISLANDS
At the IFA meeting in Brisbane to present on the agro-forestry project in the Solomon Islands, a joint initiative by Griffith University and Gathering at the Irish Club in Brisbane last Thursday for the annual general meeting of the ACAIR, are Dr Tim Blumfield of the university’s Queensland division of the Institute of Foresters Environmental Futures Centre and Dr Gary of Australia are president Keith Jennings (ex DPI Bacon, adjunct professor, centre for forestry and forestry), David Doley, University of Queensland, horticultural research, with Rod Stevens (ex-DPI forestry and China consultant), and Mike Shaw, and Brian Schaumberg (ex DPI Forestry). (ex Sappi Forestry, South Africa).
Page 16 | issue 140 | 30.08.10
IFA Queensland division secretary Emma Leslie with Stephen Walker, general manager, DERM Forest Products.
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