Issue 185

6538

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issue 185 | 08.08.11 | Page 1

Carbon stoush Conflicts and agreements an uneasy balance for farming land and forests

By JIM BOWDEN

Apples ain’t necessarily apples .. plantations balancing act for Tasmanian farmers.

of environmental plantings for biodiversity and carbon offsets will accelerate the loss of land for food production.

Tasmanian farmers, who are responsible for managing 26% of the state’s forest cover – 885,000 ha supporting 5400 full-time equivalent jobs – have again been overlooked in key

• Carbon and forests hot topic at ForestWorks conference • Campaign of lies on native forests • Sayonara, Karen Johnston • Jakarta talks tackle world’s plantation esource

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developments in the forest industry, of which the sale of the Triabunna woodchip mill is but the latest.

“The whole debate around the forestry industry in Tasmania is being depicted as a battle between Gunns and Forestry Tasmania, between the Greens, the government and the Liberals, a battle fought on the future of public land,” Ms Davis said.

“The innocent victims here are farmers who are once again set to have their income and futures destroyed without thought or recompense.

“When the Triabunna woodchip plant closes, which looks likely to be sooner rather than later, the options available for these

• Malaysia proposes joint ventures on plantations • Breakthrough for better timber and eco preservation

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“We are friends – we’re the same people down here,” asserts feisty Jan Davis, chief executive of the Tasmanian Farmers and Graziers Association, the voice for private foresters who have 1600 family farms that integrate trees into their operations.

“But we’re not happy chappies; we were locked out of a process that has led to the so-called ‘statement of forest principals’ and the much lauded Carbon Farming Initiative is not attractive to carbon farmers.”

And like her counterparts on the mainland, Ms Davis shares fears that a new rush

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issue 185 | 08.08.11 | Page 1

INDUSTRY NEWS

Campaign of lies on native forests

The end goal for environmentalists is clear

The Victorian Association of Forest Industries, representing the interests of the Victorian timber Industry

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 185 | 08.08.11

ENVIRONMENTALISTS are not being truthful when they claim they do not want to close down Tasmania’s native forest sector, says Coalition forestry spokesman Senator Richard Colbeck.

“Markets for Change deliberately dodged the question when asked directly, multiple times, during an ABC radio interview,” Senator Colbeck said.

“The truth is Markets for Change is intent on closing down native forestry activities not only in Tasmania, but throughout Australia.

“The anti-forestry activists have been building up to the attack on native forestry. It began with dialogue about ‘old growth’, then expanded to ‘high conservation value’ and now they are dictating – without fact or sound science – to end native forestry completely.

“Last year I received a secret document outlining plans for a million dollar campaign to attack Australia’s native forest industry. This document made clear the end goal was to end native forest logging, first with a Tasmanian campaign, and then moving on to states such as Victoria and Western Australia.

“It included price tags for communications and media services, polling, focus groups, a national web site and advertisement production – and $1 million to buy advertising space.

Senator Colbeck said Markets for Change was a secretly funded, guerrilla-style operation that had embarked on a campaign of corporate greenmail, attacking legitimate Australian businesses and a legitimate Australian industry.

“I released the secret plan last December in the public interest and at that time expressed concern that any campaign – like all previous campaigns against forestry – would be full of propaganda and ignorant of

Richard Colbeck .. secretlyfunded, guerrilla-style operation.

the facts.

“That is exactly what we are now seeing: a greenmail campaign full of misinformation and distorted facts – like Tasmania can just switch over to hardwood plantations.

“The reality is our native

forestry businesses produce high quality products under sustainable conditions. Forest businesses and workers understand their responsibility to carefully manage our forests to ensure ongoing viability and health’.

Meanwhile, Gunns Ltd shares have plunged to an all-time low of 22c. The fall came on a day when the timber processor admitted it had “adjusted” production at its Bell Bay sawmill because of variations in demand and supply of softwood.

Industry sources say Gunns has been forced to cut production because it had been refused supply of softwood. It has also stopped taking native forest timber into its hardwood sawmills and has closed the Scottsdale softwood sawmill.

Hosted by Hyatt Hotel and Parliament House, Canberra Tuesday 13 September

Forests and Timber – Women’s Forum Industry Briefing – carbon pricing and carbon initiatives

Wednesday 14 September Conference - Productivity & Competitiveness • • •

International competitiveness Investment in productivity Carbon - the game changer for the industry

Industry Liaison Dinner at Parliament House Thursday 15 September

First Super Investors Seminar Skills and Employment Council (SEC) meeting

More information and to register Web: www.forestworks.com.au/conference Tel: 1800 177 001

Registrations Now Open

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issues

‘You can’t operate private forests on timelines of 3-5 years’: farmers From Page 1

private foresters to have their lesser trees and residues processed will be severely limited. That will make their sustainably-managed private forests uneconomic.

“Yet we have had no voice in the deals done behind closed doors by people who do not even have a direct investment in the forests.”

Private forest covers more than one-eighth of the state and contributes $450 to $650 million annually to Tasmania’s gross state product.

“We understand the Triabunna sale will result in ultimate closure of the only pulpwood processing plant in the south; most likely in three to five years’ time,” Ms Davis said.

“You cannot operate a private forestry estate on timelines of three or five years. Trees take much longer to grow than that.

“The ‘statement of forest principles’ is predicated on Triabunna and Gunns Somerset plant remaining operational.

Somerset has closed and Triabunna is all but closed.”

While the Greens, at the moment, are saying plantations are the way to go, it was just five years ago they reckoned they were the ‘spawn of Satan’ – Jan Davis “With Tribunna, we’ve got environmentalists Jan Cameron and Graeme Wood owning it, ex Wilderness Society director Alec Marr managing it – and now we hear that Sean Cadman, former national forest campaigner for the society, is to be appointed chair of the Forest Stewardship Council.

“While the Greens, at the moment, are saying plantations are the way to go, it was just five years ago they reckoned they were the ‘spawn of Satan’.

Farmer concerns .. seeking analysis on the impact more plantations will have on prime agricultural land.

Quite clearly, we have no guarantees that that won’t be their decision next week.

“No one can say we will never lose farms to plantations; if there’s enough money thrown at it, well, yes, perhaps we will.

But most farmers down here will think very, very carefully before they agree to any tree planting on their land with the current state of the industry and the uncertainty that goes with it.”

The association is seeking an independent analysis of the new federal/state heads of agreement on forests to gauge its impact on private land. The analysis will investigate: • The implications of the agreement on private forest enterprises such as the effects of any contraction of forest contracting and sawmills.

• The likely lifetime (if any) of the Triabunna woodchip mill.

• The source each year of 155,000 cub m of sawlogs.

• The impact that more plantations will have on prime agricultural land.

Ms Davis said the Carbon Farming Initiative was not attractive to carbon farmers.

“It’s Kyoto Protocol based, in which case it’s like running a

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bank account and only taking debits and not adding credits, so we’re not particularly interested in it,” she said.

The federal government’s

proposed carbon initiative is designed to unlock the potential benefits from reducing greenhouse gas emissions and sequestering additional carbon in Australia’s agricultural and forestry sectors, an international ‘first’.

Australia’s agricultural sector generates around 23.7% of national greenhouse gas emissions (including emissions from deforestation for agriculture), but it also offers significant opportunities to reduce or offset emissions through carbon sinks, land management changes and technological solutions.

Professor Annette Cowie, director of the National Centre for Rural Greenhouse Gas Cont Page 15

issue 185 | 08.08.11 | Page 3

industry news

TF plan: future market opportunities open for engineered wood, residues

Efficiency gains in plantation timber products CONVERGING trends offer a once-in-a-generation opportunity to ‘re-engineer’ Tasmania’s forest sector, says the statutory body responsible for managing the state’s 1.5 million ha of forest land.

Forestry Tasmania is seeking feedback on a draft ‘plan for the future’ presented to industry that observes: • There will be less native forest timber available for processing, as a result of more forest reserves.

• There will be more plantation

As planning authorities around the world increasingly stipulate the use of timber in buildings for carbon storage and earthquake resistance, demand for LVL will continue to grow.

WHAT DOES TABMA DO FOR MEMBERS? • TABMA, through information, advice and services, provides its members with practical solutions to improve business management, growth and profitability • TABMA members include merchants, retailers, joiners, manufacturers, frame & truss fabricators, importers, suppliers and carpenters • TABMA places trainees or apprentices that are recruited, inducted, trained and monitored by us • TABMA offers debtors control and collection through its wholly owned subsidiary, Building Trade Credit • TABMA offers trade credit insurance through, IMC Newbury, at extremely cost effective rates.

• TABMA recruitment saves you time by advertising, vetting and interviewing for new staff at competitive rates • TABMA offers industrial relations support • TABMA provides industry specific short training courses • TABMA provides OH&S auditing by specialist staff • TABMA offers Chain of Custody consulting and auditing at minimal cost • TABMA offers technical advice • TABMA offers legal advice • TABMA provides members with significant savings on fuel through Caltex and 7-ELEVEN outlets • TABMA offers general insurance advice • TABMA offers significant travel benefits • TABMA holds a gala industry annual dinner TABMA has representation in NSW, Queensland, South Australia, Western Australia and Tasmania.

If we can assist you, please contact us on 02 9277 3100.

Page 4 | issue 185 | 08.08.11

Bob Gordon .. still a strong market for Tasmanian timber products, both at home and overseas.

timber, as Forestry Tasmania identifies more efficient ways to supply its customers with resource.

• Demand will change as consumers favour the strength and versatility of engineered wood products over traditional sawn timber.

A study funded by the Cooperative Research Centre for Forestry points to substantial change in the state’s forest sector. Since 2008, a substantial downturn – driven by the global financial crisis, appreciation of the Australian dollar and other factors – has resulted in the shedding of 3500 jobs in the industry.

Based on public announcements regarding planned business sales and closures, a further 410 jobs at least will be lost by the end of July. The rate of decline in employment has accelerated, with almost 1200 jobs lost in the nine months from September 2010 to May 2011, compared to 2300 in the 24 months prior to September 2010.

These figures do not include the woodcraft sector, which in 2009 employed an estimated additional 1750 people (including those in retailing).

In 2010, negotiations between environmental nongovernmental organisations (ENGOs) and forest industry representatives, aimed at finding a resolution to ongoing conflict over the management of Tasmania’s native forests, resulted in the signing of the Tasmanian Forests Statement of Principles to Lead to an Agreement (principles statement), a document that proposed significant future change to the industry.

On July 24 this year, the federal and Tasmanian governments committed to short-term and long-term industry assistance as part of supporting substantial reduction in native forest harvesting under the principles statement.

‘The opportunity exists to develop up to five rotary veneer mills in regional Tasmania’ – FT draft plan for the future The inter-governmental agreement will see further areas of Tasmania’s native forest locked up and some cash for contractors and employees

Cont Page 10

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events

WHAT’S ON?

AUGUST

16: Australian Timber Importers Federation board meeting and AGM. Park Royal Melbourne Airport Hotel. Includes presentation

by Ric Sinclair, managing director, Forest and Wood Productrs Australia - the new Wood Solutions website. Lunch and FWPA presentation at 1 pm. AGM commences at 2 pm. Inquiries to John Halkett (02) 9356 3826 or john.halkett@bigpond.com 28-27: Vareity Club Bush Bash, Queensland. Brisbane Hoo-Hoo Club 218 has entered the event to raise funds for children’s charities.

Contact: Alan Jones (07) 3010 1823.

SEPTEMBER 2: Women of Timber High Tea. Curvee Lounge, The Sofitel, Brisbane. The aim of the event is to gather as many women of industry, representing a variety of roles and organisational sectors, to get together and share their knowledge, experience and ideas.

Ticket price $55 p.p. (inc. gst).

RSVP August 26. Tel: (07) 3254 3166. Email: karen@tabma.com.au 5, 6, 8: WoodSolutions 2011.

Bringing together leading international and Australasian exponents of timber design.

Adelaide (Monday September 5), Intercontinental Adelaide, North Terrace. Sydney (Tuesday, September 6), Sydney Marriott Hotel, College Street. Melbourne (Thursday, September 8), The Windsor Hotel, Spring Street. Visit www.woodsolutions2011.com.au 5-7: NZ Forest Industries Expo 2011. Venue: Rotorua Energy Events Centre, Rotorua. Forest industry leaders and companies

from across the world are booking their tickets to participate in the expo (FI2011) and make the most of the 2011 Rugby World Cup while they’re there. Exhibition sites have already been booked by a number of NZ and Australian companies, and inquiries being received from Canada, China, Vietnam and Austria. The expo will showcase the best that Rotorua, the wider Bay of Plenty region and the rest of New Zealand has to offer when it comes to forestry and wood products. Contact: Dell Bawden.

Email: office@bawden.co.nz Website site: fi2010.co.nz 6-7: BNZ Forest Industries Tech Clinics 2011. Rotorua, NZ www. forestevents.co.nz 7: BNZ Forest Industries 2011 Conference: Innovative products, designs and new developments for timber building. Rotorua, NZ. www.forestevents.co.nz 13: Women in Forests meeting and carbon pricing and carbon initiatives briefing – Hyatt Hotel , Canberra. Visit: www.forestworks. com.au/conference Tel: 1800 177 001 14-15: ForestWorks Annual Industry Development Conference: Productivity and Competitiveness. Hyatt Hotel, Canberra. Evening: Industry liaison dinner at Parliament House.

Visit: www.forestworks.com.au/ conference Tel: 1800 177 001.

The conference will provide an in-depth exploration of the many impacts and opportunities facing the industry in 2011 and beyond. The conference has been specifically scheduled to coincide with parliamentary sitting week, providing a great chance for industry players, union

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representatives, policy makers and MPs to gather, network and share ideas. Tel: (03) 9321 3500. www. forestworks.com.au/conference 20: Industry dinner. Brothers Rugby Club, 103 Crosby Road, Albion. 6.30 pm for 7.pm. Guest speaker Simon Dorries, general manger, Engineered Wood Products Association of Australasia - Impact of the Carbon Tax on Wood Product Manufacturers and Distributors. Supported by Timber Queensland and TABMA Queensland. Organised by Brisbane Hoo-Hoo Club 218.

Evening includes recognition of past presidents of Club 218.

Contact: Jim Bowden on 07 3266 1429. Mob: 0401 312 087 or John Muller (07) 5494 2723. Mob 0418 871 946.

October 16-19: SilviLaser 2011. University of Tasmania, Hobart. Visit www. silvilaser2011.com 21-23: Timber & Working with Wood Show. Melbourne Showgrounds, Epsom Road, Ascot Vale. Contact: (02) 9974 1393. Fax: (02) 9974 3426, Email: info@eee. net.au 28: Timber Industry Dinner, incorporating the TABMA awards. Doltone House, Darling Island Wharf, Sydney. Supported supported by TDA NSW, the Furnishing Industry Association of Australia, the NSW Forest Products Association, the Timber Trade Industrial Association, WADIC, the Australian Timber Importers Federation, TABMA Australia, and WoodSolutions. Contacts: Sydney – (02) 9277 3100. Adelaide – 0407 102 244. Perth – 0414 908 465.

Brisbane – (07) 3254 3166. Hobart – 0407 102 244.

Australia’s forest, wood, pulp and paper products industry now has a stronger voice in dealings with government, the community and in key negotiations on the industry’s future, as two peak associations have merged to form a single national association.

The Australian Forest Products Association (AFPA) has been formed through the merger of the Australian Plantations Products and Paper Industry Council (A3P) and the National Association of Forest Industries (NAFI).

AFPA was established to cover all aspects of Australia’s forest industry: - Forest growing; - Harvest and haulage; - Sawmilling and other wood processing; - Pulp and paper processing; and - Forest product exporting.

For more information on the Australian Forest Products Association (AFPA) or to enquire about membership , please call (02) 6285 3833.

issue 185 | 08.08.11 | Page 5

INDUSTRY NEWS

ITEM: BOARD LENGTH: 4489.67 MM WIDTH: 104.42 MM THICKNESS: 52.43 MM WEIGHT: 23.74 KG VOLUME: 0.02 M3 DENSITY: 972 KG/M3 MoE: 10.8 GPA WORST VISUAL DEFECT: THROUGH KNOT 20% KAR GRADE: MSG10

Sayonara, Karen POCKET-sized industry dynamo Karen Johnston has resigned as chief executive of TABMA Queensland to join Arrow Energy, one of the largest integrated energy companies in Australia.

Karen will work closely with Arrow’s media and communications manager Lisa Palu, who was media officer for the Queensland Timber Board (now Timber Queensland) in 1998-99.

Arrow has almost 500 producing coal seam gas wells across Queensland, which account for about one fifth of the state’s gas consumption.

TABMA Queensland president Steve Johnson of Five Star Timbers, Mackay, praised Karen’s professional abilities.

“She was a great communicator and helped connect a lot of people in the industry during her tenure as CEO. She left her desk and work papers in immaculate condition, which made it easy for us to continue TABMA’s administration, basically on a walk-in, walk out basis,” Mr Johnson said.

Karen joined TABMA Queensland in 2008 after two years travelling overseas. Be fore that she managed English language schools in Japan, returning on occasion to enjoy times with friends she met there.

She worked for Gunnersen Pty

Karen Johnston .. from timber to coal seam gas.

Ltd for three years and in real estate.

Joining TABMA with degrees for Bachelor of Business Management and Bachelor of Arts, she said she loved to help other people achieve success .. “and have a good laugh while doing it”.

In a restructure of the state association, Alicia Oelker, group training and recruitment manager, will take on the role of operations manager. After finishing university, Alicia completed a Bachelor of Business Communications degree, before moving to London where she lived, worked and travelled for two years.

On her return, she worked for a disability employment network, a role she says was challenging and rewarding.

David Pollard moves across to AFPA THE inaugural chief executive of the Australian Forest Products Association David Pollard will move into his new role at the end of August.

For the last seven years he headed VicForests, the commercial timber corporation of the Victorian government.

editorial inquiries ph: +61 7 3256 1779

Page 6 | issue 185 | 08.08.11

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EVENTS

Carbon a hot topic at ForestWorks conference in Canberra next month

High-profile speakers address global dynamics AN authority on carbon management says the price on carbon will create incentives to reduce the consumption of greenhouse intensive inputs, such as electricity.

“One approach is through the upgrading of plant and equipment,” says managing director of Sydney-based Corporate Carbon Matthew Warnken, who will address investment in land, forestry and forest products at the industry development conference in Canberra next month.

“In many cases the price of carbon will reduce the payback period for certain types of equipment and thus change the internal merit order of capital upgrades,” Mr Warnken says.

renewable energy projects such as biomass,” says Mr Warnken.

Cont Page 8 Far Left: Matthew Warnken .. price on carbon will introduce a new tradable commodity into the marketplace.

Left: Emily Rice .. conference convenor and environment reporter with television Network Ten.

‘There is a growing acceptance that carbon will be priced into the economy.

The focus for business must be on how to profit through this transition’ – Matthew Warnken “The investment in new capital equipment will also provide a productivity up-lift as new equipment invariably out performs old equipment.”

Mr Warnken says the debate on carbon has lifted the entire nation’s collective consciousness on issues related to greenhouse, pollution, and environment. This provides a marketing opportunity to showcase existing low carbon or sustainability aspects of any products or services that a business offers.

“Furthermore, the raft of initiatives announced by the government will create investment across a wide range of sectors. This will assist companies that supply goods and services including

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issue 185 | 08.08.11 | Page 7

EVENTS

11 high-profile speakers now booked for talks set to ‘unlock opportunities’ From Page 7

“The price on carbon will introduce a new tradable commodity into the marketplace – the carbon permit. Carbon permits can be created through a range of activities under the Carbon Framing Initiative, including forestry activities such as reforestation and re-vegetation, and avoided deforestation, savannah fire management and reduced emissions from landfill waste deposited before July 1, 2011. ”A wide range of projects will become bankable by virtue of the new carbon revenue generation associated with the clean energy future.

Furthermore, Australian business will have the opportunity to develop carbon abatement projects in the

Dr Keith Crews .. timber building products of the future.

Dr Andrew Grant .. carbon plantings are increasing in value.

Asia-Pacific region in order to create tradable permits for the Australian domestic scheme post-2015.”

Mr Warnken says there is a growing acceptance that carbon will be priced into the

economy.

“The focus for business must be on how to profit through this transition. The new price of carbon in the economy offers all business a chance to gain commercial advantage over their competitors.

Opportunities exist to use carbon as the impetus to reduce costs, increase revenue streams and develop new sources of income.”

Conference will discuss global trade dynamics, exchange rates and investment in productivity, technology, labour and forest resources

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Page 8 | issue 185 | 08.08.11

The carbon price announced by Prime Minister Julia Gillard is $23 a tonne of carbon dioxide equivalent (CO2e) emissions.

This fixed price will increase by 2.5% each year in real terms to 2015, when the price will be set by market trading of carbon permits. Demand for permits will be established by the Climate Change Authority, which will set the forward reduction targets (and hence scarcity of the permits released) in a similar operational manner to the Reserve Bank and interest rates.

Mr Warnken will address the

topic ‘Investing in land, forestry and the forest products: Values of the future’.

Eleven high-profile speakers have been locked in for the conference, organised by skills council ForestWorks from September 13 to 15.

The aim of this conference is to provide Australian and international industry leaders, decision makers, stakeholders and federal and state policy makers the opportunity to consider and discuss global trade dynamics, exchange rates and investment in productivity, technology, labour and forest resources.

“The conference provides the chance to formulate industrywide strategies that unlock opportunities and secure our future,” ForestWorks chief executive Michael Hartman said.

Emily Rice, environment reporter with televison Network Ten will act as conference convenor.

Joining Matthew Warnken on the speakers’ panel are: • David Ridley, Ta Ann Timbers – The how-to of downstream processing in Australia for international markets.

• Dr Andrew Grant, managing director, CO2 Group – Carbon plantings are increasing in value, but what about traditional products?

Can the carbon value in them be recognised?

• Julie George, general manager, management services, Hyne Timber Group – Business-wide investment in skills is more than training.

• Lisa Marty, chief executive, Victorian Association of Forest Industries – Carbon price, Carbon Farming Initiative and international negotiations: where to for carbon in wood products?

• Graeme Russell, chief Cont Page 15

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Celebrate innovation and advances in forestry, wood products and design just before the international rugby starts on 9 September. Be part of the forestry and wood processing revolution. If you have anything to do with wood you and your company must be there.

Book your place and get more information, www.fi2011.co.nz The PF Olsen Forest Industries Expo 2011 will showcase the latest equipment, technology and systems from New Zealand and around the world, to an international audience. You can book to attend or register for a display site indoors or outdoors through www.fi2011.co.nz The BNZ Forest Industries Tech Clinics will feature 14 practical and independent clinics that will cover every facet of the forestry sector, from new tools for improving efficiencies in forest management through to the very latest in timber design, construction and building practices. For more information go to www.fi2011.co.nz.

The BNZ Forest Industries Conference on 7 September will focus on innovation and design in timber construction following the tragic earthquakes in Japan and Christchurch (2011), Haiti (2010), Chile (2010) and Italy (2009).

International speakers will cover recent major advances in design, technology and construction. For more information go to www.fi2011.co.nz

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www.fi2011.co.nz issue 185 | 08.08.11 | Page 9

industry news

China pulp wood demand: contractors asked to ramp up back to full capacity From Page 4

hurt by the commercial decision of Forestry Tasmania’s major customer Gunns to exit native forests.

“There is no question Gunns’ decision, the global financial crisis and the collapse of MIS plantations has cost Tasmania a lot of jobs, and continues to cause hurt in the community,” Forestry Tasmania managing director Bob Gordon said.

“However, we need to remember that these are shortterm problems. There is a longterm that we need to plan for.

“It might surprise some to learn that we have asked our contractors to ramp back up to full capacity. We are finding customers for pulp wood in China and we expect over the

InSurAnce..

It’S All In the SelectIon

Export opportunity .. Ta Ann Tasmania’s Dr How Sing Sii watches as Tasmanian veneer is loaded in Hobart.

next month to be loading at least one and possibly two export shipments.

“This should ease some of the pressure on sawmillers who have been struggling to find an outlet for their residues.

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Page 10 | issue 185 | 08.08.11

“I do want to make the point that there is still a strong market for Tasmanian timber products, both at home and overseas. In particular, there are emerging and growing markets for laminated veneer lumber and woodchips for rayon and biomass.”

Forestry Tasmania, with its knowledge of domestic silviculture and international markets, has identified a number of opportunities beyond traditional sawn timber and woodchips.

“We believe the most exciting opportunities lie in engineered wood products and renewable energy,” Mr Gordon said.

“Future market opportunities for our products lie not just in sawn timber, but in the remarkable range of innovative products that may be created from plantation timber and residues from harvesting.”

In 2005, Forestry Tasmania was successful in securing the commitment of the Malaysianbased Ta Ann timber group to develop two rotary veneer peeling mills in Tasmania at a cost of $65 million.

The mills will process regrowth logs only and are located ‘in the forest.’ In 2007, the first of the mills opened in the Huon district and the second, at Smithton in the state’s northwest, is

under construction. When fully operational, the two mills are expected to employ 120 Tasmanians.

The Forestry draft plan suggests logs previously classified as pulpwood will be suitable for the manufacture of rotary veneer for construction grade products.

Through Forestry Tasmania’s partnership with Ta Ann, up to 25% of wood that was previously chipped is now ‘peeled’ in Tasmania for higher value veneer production These smaller, thinner pieces of wood cannot be processed into veneers using conventional machinery.

However, specialised technology that can do the job is already operational in FT’s Chinese markets.

These veneers are used to create high-strength engineered wood products, such as plywood and laminated veneer lumber.

The opportunity exists to develop up to five rotary veneer mills in regional Tasmania, according to the draft plan.

Additionally, this technology may also be used to create decorative veneers from Tasmanian special timber species such as myrtle and sassafras – a far more efficient use of a precious resource.

The report says as planning authorities around the world increasingly stipulate the use of timber in buildings for carbon storage and earthquake resistance, demand for LVL will continue to grow. In fact, there is a growing trend for multi-storey buildings to be made from engineered wood products.

Forestry Tasmania already has planning approval to develop a biomass energy station at the Wood Centre in the Huon Valley and has identified a number of other timber processing locations .

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evenTS

Conference tackles world’s developing plantation resource Global woodfibre talks in Singapore DELEGATES from 26 countries have already registered for the 5th International Woodfibre Resources and Trade Conference to be held in Singapore from October 31 to November 2.

They include representatives from the largest woodchip exporting companies in Australia, Brazil, Canada, Chile, Indonesia, South Africa, Thailand, the US, Uruguay and Vietnam.

Delegates will also be drawn from major buying countries Japan and China, along with suppliers and buyers of the burgeoning international woody biomass trade.

Conference organisers have been assured of additional delegates representing the largest suppliers in Fiji, Malaysia, New Zealand and Papua New Guinea, as well as the largest exporters from new supplying countries such as Argentina, Cambodia and Mozambique.

Woodchips and biomass for global markets The four previous conferences (Montevideo in 2005, Melbourne in 2007, Singapore 2008, Brazil 2010) were highly successful, bringing together several hundred delegates from more than 36 countries, primarily focused on plantation resource development and the international trade in woodchips and woody biofuels (wood chips and pellets).

The conference theme, ‘Woodchips and Biomass for Global Markets’, will focus on the outlook for international pulp markets, international woodfibre trends and outlook and the role for dedicated wood

energy plantations in Europe, South America and the US. Panel sessions will discuss woodfibre supply and demand, the world transportation impact on international woodchip and biomass trade and analyse biomass and pulpwood plantation investment.

The conference package includes a field trip to Cambodia and an optional visit to Angkor Wat for those wishing to stay another night in Phnom Penh/ Siem Reap.

The conference is attracting plantation and other forest owners, plantation investment fund managers, existingfuture biomass producers and users, wood pellet producers and users, bankers and investment analysts, woodchip producers, wood fibre trading companies, federal, state and shire authorities dealing with forestry, plantation and wood fibre production, utilisation and exporting sectors, pulp and paper company executives, harvesting contractors, transport contractors and port and shipping companies.

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CO2-e emitters, existing timber and carbon forestry players and equipment suppliers will round off the profile of delegates.

Conference inquiries should be directed to Pamela Richards, managing director, PR Conference Consultants, PO Box 502, Kilmore, Vic 3764.

Tel: 61 3 578 0069. Email: pam@prcc.com.au Web: www. prcc.com.au See notice, Page 14.

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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 185 | 08.08.11 | Page 11

FWpA

2011 seMinArs TechnicAl ToolS FoR you FWPA’s R&D Works seminars are part of an ongoing initiative designed to deliver technical research and solutions. Seminars will be held throughout 2011 in all major forestry regions.

ADeLAiDe, tHursDAy 18 AuGust 2011 topic

presenter

Surface checking in outdoor products (Solid Wood Initiative)

Marco Lausberg

Quantifying residual solvent levels in LOSP treated wood (Solid Wood Initiative)

Marco Lausberg

How to guarantee warp stable timber (Solid Wood Initiative)

Marco Lausberg

Best practice guidelines for drying, gluing, painting, sawdoctoring, etc (Solid Wood Initiative)

Marco Lausberg

Review of fertiliser use in Australian forestry

Barrie May

Handbook for effective and productive community engagement (CRC Forestry)

Melanie Dare

Predicting internal wood qualities with NIR (CRC Forestry)

Geoff Downes

Optimised truck scheduling – Fast Truck (CRC Forestry)

Mauricio Acuna

Onboard computer guide

Martin strandgard

Life cycle assessment of timber products (RMIT)

Andrew carre

Review and Identification of Suitable Insulation Solutions to Enhance Suspended Timber Floor Systems (The University of Adelaide)

terry Williamson

Essigella biocontrol program

richard Glatz

Venue: the Lakes resort Hotel 141 Brebner Drive West Lakes Adelaide, sA 5021 reGistrAtion: 8.30 am (coffee on arrival) start 9.00 am Finish 12.30 pm (followed by a light lunch)

rsVp DetAiLs Please register your attendance at http:// fwpardworksseminarsadelaide.eventbrite.com by 5.00pm Monday, 15 August Page 12 | issue 185 | 08.08.11

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

WORLD MARKETS

New US emission standards impact on China’s plywood, panel industry NEW laws on emissions now coming into effect in the US are beginning to have a severe negative affect on China’s plywood sector.

The US Formaldehyde Standards for Composite Wood Products Act came in to force in January this year and basically adopts standards established by the California Air Resources Board (CARB).

This Act limits formaldehyde emission to a level far below that of China and many other countries.

Products covered by this act include hardwood plywood, MDF, particleboard and finished goods containing these products; it excludes hardboard, structural plywood, structural panels, structural composite lumber, oriented

Hurricane Katrina victims in the US housed in trailers built with plywood from China tested positive for inordinate amounts of toxins and five times the normal levels for formaldehyde.

strandboard, prefabricated wood, glue laminated lumber, finger-jointed lumber, wood packaging and composite wood products.

The act clearly defines emission limits of formaldehyde which are apparently lower than Chinese levels.

China is a major exporter of wood-based panels. In 2010,

output amounted to 154 million cub m, of which plywood accounted for 46.5% (71.4 million cub m) and fibreboard 28.4% (43.5 million cub m).

Of the total plywood output, 10.6% or 7.55 million cub m was exported with fibreboard exports representing 5.6% or 1.93 million cub m.

The US Act will have a severe

negative effect on China’s plywood sector, especially on the medium and small-sized companies. Manufacturers say that to meet the new emission standards production costs will rise as they will need to invest in training, equipment and technological improvements.

The secretary-general of China’s technical committee of woodbased panel standardisation suggests that since the US is the largest market for Chinese furniture, the country should upgrade its plywood production facilities.

“Businesses must adopt new technologies and improve product quality so as to maintain its share of the US panel and wood products market,” he said.

Safer than a smoked cod

*

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Some imported plywood panels and flat-pack furniture components have tested seven times above the emission limits recommended by the federal Department of Health.

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* Australia’s formaldehyde emission classifications are close to naturally occurring levels in wood. Formaldehyde also occurs naturally in many foods. Smoked fish, for example has a formaldehyde concentration (ppm) of 1.0

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issue 185 | 08.08.11 | Page 13

TIMBER TRADING

Malaysia proposes joint ventures on plantations and carbon trading Partnership agreement to promote legal timber trade CONCERNS that Australia’s new legislation on illegal logging might adversely impede international trade in timber products – and in effect become ‘non-tariff barriers’ – were expressed by Malaysia’s Minister for Plantations during a trade mission to Sydney and Melbourne last month.

But Mr Tan Sri Bernard Dompok said he was confident bilateral trade between Malaysia and Australia would continue to flourish.

“It is my hope that both governments and the business communities will continue to work together for the mutual benefit of both countries,” he said.

“Trading has been the traditional business activity between the timber-based sectors of Malaysia and Australia. But other initiatives such as jointventures in the manufacturing of timber products, establishment of forest plantations, R&D activities and even carbontrading could also be explored.”

Malaysia timber exports to Australia in 2010 amounted to

Members of the Malaysian trade mission inspect the new $53 million, two-storey Bunnings warehouse at Chatswood in northern Sydney.

The 11,600 sq m store is the forerunner of four large, multi-level warehouses in Sydney as part of Bunnings’ $600 million rollout of 18 new format stores over the next three years.

$A258.5 million. Major items were wooden furniture, valued at $126.9 million, mouldings at $33.9 million, joinery products at $28.4 million, plywood at $28.1 million and sawn timber at $20.1 million.

Mr Dompok said legislations such as Australia’s Illegal Logging Prohibition Bill to prohibit the importation of illegal timber were becoming a global trend, especially among

developed countries.

In the US, this was manifested by the amended Lacey Act while in Europe the EU will be enforcing its Timber Regulation in March 2013.

“As a major timber producing and exporting nation, Malaysia supports such initiatives so long as they cover all timbers whether temperate or tropical,” he said.

“In fact, Malaysia is in the

midst of negotiation with the EU on a voluntary partnership agreement under its Forest Law Enforcement Governance and Trade initiative.

“This is a partnership agreement to ensure and promote legal timber trade and good stewardship of the forest sector.

“However, while such initiatives could combat illegal logging and the illegal trade in timber products, any new legislations should not be too onerous, cumbersome or impractical that can adversely impede international trade in timber products and in effect become ‘non-tariff barriers’ to the legitimate export of timber products.”

Mr Dompok said Malaysia imposed heavy penalties on illegal logging. This empowered local police and armed forces to carry out surveillance of forestry activities.

After more than 100 years managing its natural forest resources through sustainable forest management practices, Cont Page 15

The 5th International Woodfibre Resources and Trade Conference

31 October-2 November 2011 Grand Copthorne Waterfront Hotel, Singapore followed by a two-day field trip to Cambodia

Early bird Registration closes 1 July 2011 www.woodfibreconference.com

Page 14 | issue 185 | 08.08.11

Full conference details, including program/speakers and field trip are available from the conference website.

This conference will be of interest to – Plantation and other forest owners; plantation investment fund managers; existing-future biomass producers and users; existing-future wood pellet producers and users; bankers and investment analysts; woodchip producers; wood fibre trading companies; woodchip end users; federal, state and shire officials dealing with forestry, plantation and wood fibre production, utilisation and exporting sectors; pulp and paper company executives; harvesting contractors; transport contractors; port companies; shipping companies; CO2-e emitters; existing timber+ and carbon forestry players; equipment suppliers.

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issues

Scheme encouraging a real expansion of commercial timber plantations in NZ From Page 3

Research, says that in relation to the ‘straightforward Kyoto reforestation sinks’, there are many well-established opportunities to incorporate trees into farming systems including shelterbelts to protect stock and crops, riparian revegetation to reduce risks of erosion, and woodlots.

“And then there could be further possibilities of non-Kyotocompliant credits such as tree plantings that don’t meet the

Jan Davis .. farmers innocent victims.

Team of high-profile speakers From Page 8

executive, First Super (session chair) – Investing in resource and value adding.

• Bob Gordon, managing director, Forestry Tasmania (session chair) – The price on carbon: the game changer for forestry?

• Dr Bob Smith, director of VicForests and director of WA Forest Products Commission – Australian forest industry’s role in global climate negotiations.

• Jim Adams, chief executive, Timber Communities Australia – Investing in communities and regions, meeting the modern expectation.

• Dr Keith Crews, professor of

structural engineering, faculty of engineering and information technology and deputy director, Centre for Built Infrastructure Research, University of Technology, Sydney – Timber building products of the future.

• Greg Nolan, associate professor, Centre for Sustainable Architecture with Wood, School of Architecture and Design, University of Tasmania – Ingredients required to develop the uses of wooden buildings in a carbonconstrained world.

• Phil Polglase, program leader, forest systems, CSIRO Ecosystem Sciences – Forests, carbon and their future values on a global scale.

Fiona Simson .. carbon trading inefficient.

Kyoto forest definitions or land eligibility requirements,” she says.

In an emerging trend, carbon traders are starting to buy farms to generate carbon credits for sale under voluntary schemes or, assuming legislation clears the Senate, the Carbon Farming Initiative.

Storing carbon dioxide through reforestation and other techniques such as soil carbon opens up a potentially vast new market opportunity for rural Australia.

But the president of the NSW Farmers Federation Fiona Simson says while farmers support the CFI, carbon farming with a focus on forestry plantations is just another land-use conflict that’s going to take land away from food

production.

Ms Simson says farmers are telling her it will be inefficient to individually trade in the coming carbon economy.

“So we will investigate group action to boost farming incomes. It’s not going to be efficient enough for them to actually act as aggregators, counters or collectors of carbon,” she said.

“Perhaps our association, or a farmers’ group, might be better off being that middle man, and being that carbon aggregator, rather than some other consultant or middle man who’s making the money.

“And often in our industries, it is the middle men that are making the money.”

As part of the Clean Energy Future plan and to meet the emissions target for 2020, the federal government has indicated that Australia will import around 100 million tonnes of carbon credits from overseas countries. This means 62% of the emissions reduction driven by the Australian carbon price will occur in other countries, not in Australia.

The Australian Forest Products Association says that by importing carbon credits from overseas rather than rewarding Cont Page 17

Malaysia’s plantations: 375,000 ha in 15 years From Page 14

Malaysia now had 55.3% of its land area or 18.25 million ha under natural forest cover.

About 14.52 million ha of the total forested area gazetted as ‘permanent reserved forest’ had been placed under sustainable forest management.

Mr Dompok said the International Tropical Timber Organisation in its ‘status of tropical forest

management 2011’ reported that Malaysia had made notable progress towards sustainable forest management in the last five years apart from having progressive forest related policies, laws and regulations.

He said Malaysia’s forest plantation program to reduce the industry’s dependence on natural forests would see about 25,000 ha of tree plantations established annually over 15

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years to achieve a target of 375,000 ha.

“Let me assure you, the development of forest plantations will not be at the expense of natural forests as forest plantations will mainly be developed on idle lands, abandoned agriculture lands, state lands and alienated lands,” Mr Dompok said.

“The Malaysian Timber Certification Scheme was

endorsed by PEFC in 2009.

As of May this year, nine PEFC certificates have been issued to forest management units covering 4.65 million ha or 32% of total permanent reserved forest.

“A total 168 Malaysian timber companies have been awarded the PEFC and MTCS certificate for chain of custody.”

issue 185 | 08.08.11 | Page 15

FWpA

2011 seMinArs TechnicAl ToolS FoR you FWPA’s R&D Works seminars are part of an ongoing initiative designed to deliver technical research and solutions. Seminars will be held throughout 2011 in all major forestry regions.

Mt GAMBier, FriDAy 19 AuGust 2011 topic

presenter

Energy Management Tools (Solid Wood Initiative)

Marco Lausberg

Assessing cants to maximise outturn of structural timber (Solid Wood Initiative)

Marco Lausberg

Kiln drying: Dynamic kiln scheduling and reduction of post drying conditioning time (Solid Wood Initiative)

Marco Lausberg

Forest to mill RFID tracking applications (Solid Wood Initiative)

Marco Lausberg

Review of fertiliser use in Australian forestry

Barrie May

Maximising profit from nutrient management of mid-rotation radiata pine

Barrie May

Managing plantations to increase wood yields and water use efficiency

Don White

Handbook for effective and productive community engagement (CRC Forestry)

Melanie Dare

Predicting internal wood qualities with NIR (CRC Forestry)

Geoff Downes

Optimised truck scheduling – Fast Truck (CRC Forestry)

Mauricio Acuna

Onboard computer guide

Martin strandgard

Essigella biocontrol program

richard Glatz

Venue: the Barn – punt road (Also called Nelson Road or Glenelg River Road) reGistrAtion: 8.30 am (coffee on arrival) start 9.00 am Finish 12.30 pm (followed by a light lunch)

rsVp DetAiLs Please register your attendance at http://fwpardworksmtgambier.eventbrite.com by 5.00pm Monday, 15 August Page 16 | issue 185 | 08.08.11

Advertising: Tel +61 7 3266 1429 Email: cancon@bigpond.net.au

TIMBER PRESERVATION

Impregnation technology breakthrough for better timber and eco preservation REVOLUTIONARY new timber impregnation technology is expected to meet the demands of timber processors for an improved and environmentally friendly way to preservativetreat their products.

Invented by Queensland scientists, the technology was recently picked up by global timber preservation giant Osmose for further development.

Once pressure is reduced, the solvent changes back into gas, leaving the preservation ingredients in the wood, but not the solvent Department of Employment, Economic Development and Innovation (DEEDI) general manager for Horticulture and Forestry Science, and coinventor of the technology, Michael Kennedy, said further development of the technology would add value and efficiencies for the timber industry.

“Many attempts have been made to find a better way to impregnate timber with preservatives, and we believe

this technology is a potential breakthrough for the industry,” Dr Kennedy said.

“Our research has found that this new process does not swell the timber as other treatments can, and the solvent used during the process is fully recovered, which is better for the environment.”

Dr Kennedy said the new process was similar to the commonly used timber impregnation process that involved loading timber into a specially designed treatment plant and impregnating it with preservatives (fungicides and insecticides dissolved in a solvent) using a sequence of vacuum and pressure steps.

“With this new process, however, the preservatives are dissolved in a solvent that is normally a gas, but which changes into a liquid when compressed. The preservation ingredients are dissolved in the compressed liquid, and then forced into the timber,” Dr Kennedy said.

“Once pressure is reduced, the solvent changes back into gas, leaving the preservation

Michael Kennedy .. adding value and efficiencies for the timber industry.

ingredients in the wood, but not the solvent.

“It uniquely recovers all of the solvent (gas) inside the treatment plant, leaving the treated timber dry (i.e. free from solvent) and the recovered solvent available for re-use for the next batch of timber to be treated.”

Dr Kennedy said the technology was also designed to achieve better penetration of difficult-totreat timber, such as heartwood of plantation pine, plywood and laminated veneer lumber.

“We forecast that these timbers will be better protected against decay and insects using this technology,” he said.

“Preserved timber is used extensively in Australia for construction, landscaping and hundreds of other purposes.

“Finding new ways to improve the longevity of preserved timber will not only boost industry’s energy and cost efficiencies, it will also help to extend our plantation resources and lessen the impact on our environment.”

Dr Kennedy said Osmose was designing a semi-commercial scale treatment plant to further develop the new process and evaluate its potential for market use.

“If all goes to plan, the timber processing industry could be using this new process as early as next year,” he said.

The technology was invented through collaboration of scientists and engineers from DEEDI, Carter Holt Harvey and Solvents Australia.

Govt ignoring contribution of renewable forests From Page 15

Australian action to reduce emissions, the government has ignored the contribution of a sustainable and renewable forest industry.

“It seems that the government’s actions are driven by political imperatives, not science and accurate carbon accounting, as they would rather pay other countries to reduce emissions than promote Australia’s own potential to reduce its emissions through the forest industries,” AFPA’s Allan Hansard said.

“The New Zealand emissions trading scheme is encouraging real expansion of commercial

The NZ emissions trading scheme is encouraging real expansion of commercial timber plantations.

timber plantations. Integration of the Australian and New Zealand emissions trading scheme will be a fundamental first step in achieving a global approach and even this cannot be achieved unless the

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government is willing to give fair and appropriate recognition to carbon storage in commercial forests and harvested wood products.”

Tree plantations that are grown for wood as well as

carbon are excluded from the Carbon Farming Initiative; no renewable energy produced from native forest biomass will be eligible to create renewable energy credits, and the government has allocated almost $1 billion funding for ‘forest protection projects’ which could see managed production forests locked-up with no commensurate carbon storage benefit.

AFPA is seeking meetings with ministers and MPs in key forestry electorates to ensure they understand the implications of these decisions.

issue 185 | 08.08.11 | Page 17

looking back

Energy crisis: wide implication for forests A PLEA to world foresters to reaffirm their total commitment to resource conservation, renewal and expansion was made at the 8th world forestry conference in Jakarta.

The congress noted the energy crisis has a further and potentially far-reaching implication for the forestry industry – the possibility for forests to become an important source of high grade as well and low grade energy.

Because of the interdependence of liquid and gaseous fuels and chemicals, forests offer an equally exciting opportunity for providing the synthetic organic materials so indispensable to modern society and which are now produced by fossil fuels.

Delegates were concerned that if present trends continue and potential demand materialises, there is the prospect of a serious gap between the world’s needs for industrial and other wood products and the capacity of the world’s forests to supply these and other essential goods and services.

– December 1978. ** ** ** TASMANIA is the only state to receive direct forestry loan assistance from the Federal Budget.

The Tasmanian government will receive loans up to $100,000 a year

for the four financial years starting 1979-80.

This will be for the establishment of eucalypt plantations on marginal farmland and a program of land purchase of such farmland.

– August 1979. ** ** ** THE 10th All Australia Timber Congress in Sydney attracted 600 delegates from all over Australia, New Zealand, the US (including Hawaii), England, South Africa, Malaysia and Indonesia.

Opening the congress, the Minister for Primary Industries Ian Sinclair said forestry and forest products was a major industry in Australia with total consumption of products worth $2000 million employing almost 100,000 people.

“Regrettably, the industry is operating well below capacity.

The downturn in recent years, particularly in sawmilling, has been attributed largely to a decline in new house construction,” Mr Sinclair said.

“The industry’s present situation was aggravated by excessive imports of low-cost timbers.

Indeed, hardwood sawmillers who produced up to 75% of sawn timber used are particularly concerned at current market conditions.

“There is a need to regenerate

JIM BOWDEN’S

Timber Time Warp An occasional column that looks at what made news during the past three decades with images of some of the personalities who shaped the industry over that time – drawing information from the editor’s scrap book.

Australia’s eucalypt forests and other natural hardwoods.”

Mr Sinclair said there was, however, an increasing preference for softwood timber in many applications, and by the year 2010 it was estimated softwoods would supply up to 80% of the sawn timber market.

– October 1978. ** ** **

MORE than 50 delegates from all states attended the annual general meeting of the Plywood Association of Australia at Surfers Paradise in November.

Among major decisions was an agreement to convert to modular metric on July 1, 1979. This will mean standard sheet sizes will be 1800, 2100 and 2400 mm by 900 and 1200 mm from that date.

During the meeting, a dinner was held to celebrate the 40th birthday of the PAA. Guests included Ian Farquhar (a former president), Stan Hancock, Jim Nutting, Grev Sergeant, David Bletchley, Fred Thompson, Alex Vallance, Hyam Cantor, Eric Meyer, Harold Morley, Fred Cairns and Bill Capstaff.

– December 1978. ** ** ** QUALITY, beauty, durability and finish are the glowing features of the Glograin DPA (dialiyphthalate) laminated overlays on plywood, particleboard and hardwoods produced by Hancock and Gore at its Colmslie factory in Brisbane.

The patterns used are printed papers made in Japan and, when laminated on to the selected boards, present a product finish that “measures up to the best”.

– June 1978.

Chatting at the annual general meeting of the Queensland Timber Board in Brisbane are Col MacKenzie, TRADAC, Bob Dollin, Wilson Hart and Co Ltd, Maryborough, and Dr R.G. Mauldron, Industries Assistance Commission, Canberra. (October 1978).

Time out from the All Australia Timber Congress on a cruise up the Hawkesbury River for Frank Withey, Standard Sawmilling, John Stokes, Automated Building Components, Victoria, and Ken Parsons, Sterland Bros, Gosford, NSW. (October 1978).

Page 18 | issue 185 | 08.08.11

Greeting the Minister for Works and Housing Claude Wharton (centre) at the official opening of Tilling Timber’s new Brisbane premises at Springwood are Norm Tilling and his wife Judy.

The new outlet was designed entirely by Tilling Timber’s own staff under the guiding eye of Queensland manager Doug Bartlett. (September 1979).

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issue 185 | 08.08.11 | Page 19

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