Issue 246 Timber & Forestry

6889

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

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issue 246 | 05.11.12 | Page 1

Talks breakdown a tragedy: Crean

Forest industry holds key to growth of healthy regional communities and skills the industry liaison dinner at Parliament House – the high point of serious networking at the ForestWorks 5th annual industry development conference.

But much of Mr Crean’s talk was an uplifting reference to the keys the forest industry holds to sustainable growth in forestry, partnerships, innovation, diversification, skills and infrastructure – and the development of healthy regional communities.

“Australia’s success and prosperity in the rapidly transforming international

THE collapse of the talks to end the ‘forestry wars’ in Tasmania was not just a disappointment – “quite frankly, it’s a tragedy” – the Regional Development Minister Simon Crean said in an address to a gathering of more than 220 industry leaders, federal MPs and union figures in Canberra last week.

“It is a tragedy for the future of a sustainable forest products industry, it is a tragedy for the wider economy, because it will deny the state much-needed funding to diversify its economy, and it is a tragedy because an agreement was, and remains, within reach,” Mr Crean said in his keynote presentation at

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issue 246 | 05.11.12 | Page 1

INDUSTRY DEVELOPMENT CONFERENCE – CANBERRA

Challenging ideas .. Andrew Caddell, global practice leader with Forestry Innovations in Canada (centre) discusses his conference presentation with Ian Ruscoe, director, domestic forestry, Department of Agriculture, Fisheries and Forestry, and Ric Sinclair, managing director, Forest and Wood Products Australia.

New technology reshaping future of forest industry

ForestWorks performs a range of industry wide functions acting as the channel between industry, Government and the Australian Vocational Education and Training (VET) system

Learning Skills Research Advice Innovation

‘Everywhere in the world, regulatory environments are forcing change’

By JIM BOWDEN

BOLD and challenging ideas in technology that could reshape the future profile of the forest and timber industries were over-riding messages at the 5th annual ForestWorks industry development conference in Canberra last week.

International speakers said the forest sector had to transform itself to be an innovator – what were pulp and paper plants may now become energy generators and fuel, clothing and renewable fibre plants.

More than 220 industry leaders, federal MPs, forest workers, housing economists and union officials gathered at the Hyatt Hotel on Commonwealth Avenue to hear and network with 32 international and Australian speakers in 14 sessions.

Many delegates voted the conference the best so far and these included CEOs from every industry organisation.

Delegates shelved the industry’s economic woes for

Page 2 | issue 246 | 05.11.12

two days to exchange ideas with global experts about how rapidly transforming market demands could be met by innovative and creative players who are willing to climb the value chain.

Inspiring these ideas was Andrew Caddell, Canadian trade commissioner and global practice leader with Forestry Innovations in Montreal.

“The forest sector is becoming known as the fibre sector, with wood in demand as a carbon sink,” Mr Caddell said.

“There may come a day when there will no longer be a demand to grind down high quality long fibres for newsprint; these fibres will be used instead for a range of other modern and biodegradable products.”

Mr Caddell said everywhere in the world, regulatory environments were forcing change, whether it be in what goes into the air, or the water or the ground.

Cont Page 4

VICTORIA

PO Box 612, North Melbourne 3051 Tel: (03) 9321 3500 Email: forestworks@forestworks.com.au

NEW SOUTH WALES

PO Box 486, Parramatta 2124 Tel: (02) 8898 6990 Email: smukherjee@forestworks.com.au

TASMANIA

PO Box 2146, Launceston 7250 Tel: (03) 6331 6077 Email: edown@forestworks.com.au

BRISBANE

PO Box 2014 Fortitude Valley 4006 Tel: (07) 3358 5169 Email: bharle@forestworks.com.au

SOUTH AUSTRALIA

Unit 2/191 Melbourne Street, North Adelaide 5006 Tel: (08) 8219 9028 Email: michelle@forestworks.com.au

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INDUSTRY DEVELOPMENT CONFERENCE – CANBERRA

Reaching an agreement could pave way for another pulp mill

From Page 1

market demands we continue to be innovative, creative and ‘step up’ the value chain,” he said.

“A quick stock-take of speakers and delegates gives an indication of this world-class gathering of expertise working to position Australia’s forestry and timber industries for future growth.

“You understand what is needed to grow productivity and competitiveness is about working innovatively, cooperatively and smarter. It’s about selling expertise and technology, offering the market a more sustainable and highquality alternative to traditional products.

“And, reaching these goals takes perseverance.”

Returning to the Tasmanian issue, Mr Crean said if the deal could be done, it would allow the industry to consolidate, diversify and grow, based on a sustainable resource.

“A long-term agreement built on sustainable supply will remove concerns about sovereign risk and provide opportunities for investment,” he said.

“And if an agreement can be reached, it could pave the way for another pulp mill – a pulp mill sourced from an entirely sustainable resource, where we know there is investment interest in world’s best practice technology and using a renewable energy resource and putting power back into the grid as well as power into the facility.

“You can’t get more sustainable than that.”

[An end to the decades-long conflict over Tasmania’s forests looks as remote as ever with the talks that came closest to delivering peace collapsing.

Federal Environment Minister

Go the extra yards and end the forest war .. Simon Crean is congratulated on his presentation to the industry liaison dinner in Canberra by ForestWorks chair Jane Calvert.

Tony Burke said he would begin unwinding an agreement between the commonwealth and the state government that would have delivered $100 million if a deal had been reached between environmentalists and the forestry industry].

Mr Crean said beyond securing a sustainable forest products industry, there was also an opportunity to diversify the broader economy in agriculture, dairy, wine, horticulture and aquaculture to take advantage of surplus water, great soils and clear air with the potential of delivering up to 4000 jobs.

“We have done that with a down-payment of $20 million.

Imagine what can be delivered

with five times that amount – $100 million – only available if there is an agreement,” he said.

“That’s why I urge the parties, some of whom are with us tonight to try again and get back around the table. Everyone has to give something here. Go the extra yards. Refocus on securing an agreement, and be part of securing your future.

“It’s what the Tasmanian public really want. It’s also what I think the Australian public really want – an end to the forest wars – a lasting end and a sustainable future.

“The irony of this situation is that for all the fighting between groups, there is an opportunity to position the industry as a leader in sustainable forestry

‘Sometimes we’re so much at each other’s throats that we fail to grasp the potential for an outcome that really is economically advanced and environmentally sustainable’ – Simon Crean

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practices – not only in the products we provide but in the services that we can provide to the rest of the world.

“Hydro Tasmania provides a good model where it has been able to develop a world-leading consultancy arm in clean energy expertise. That, too, can be done in forestry management.

I think while Forestry Tasmania goes through a restructure there is an opportunity to expand into providing forestry management services.

“Sometimes we’re so much at each other’s throats that we fail to grasp the potential for an outcome that really is economically advanced and environmentally sustainable.”

Mr Crean said the clearest example of a change in culture and the importance of partnerships has been the Regional Development Australia Fund (RDAF).

He said RDAF was driving the cultural change in regional funding by focusing on projects that stacked-up, leveraging investment through partnerships and providing strong regional reach.

This partnership approach in the first two rounds had turned a commonwealth investment of $350 million in 81 projects to a total leverage investment of $1.2 billion.

“A great example in the forest sector is the $9.47 million Bombala timber precinct that will contain timber milling and particleboard manufacturing capabilities,” Mr Crean said.

“It will work in partnership with the TAFE and local schools as a link to training.

“And it’s an investment with a business return, generating a forecast $200 million in business investment over four years and 140 new full-time jobs.”

issue 246 | 05.11.12 | Page 3

INDUSTRY DEVELOPMENT CONFERENCE – CANBERRA

An invitation: share in Canada’s value-chain research programs Outstanding service recognised

From Page 2

Landfills, a simple municipal problem, would be pressing for more biodegradable material, he said.

Innovation would be driven by regulatory environments. And consumers more and more were demanding products that were sustainable and recyclable.

There was a demand for forestry innovation, for greater return in a range of areas such as nano-crystalline cellulose (biodegradable substitute for carbon in composites, medical, pharmaceutical, automobiles and aircraft); cross-laminated timber; lighter, earthquake proof buildings; rayon for clothes; lignin for carbon black, pharmaceuticals, new plastics and adhesives; and

Presenters and accepters .. special awards for outstanding long-term service to industry were presented to three conference delegates during the industry liaison dinner at Parliament House – Ron Scott, president, Furniture Industry Association of Australia, Col Shipard, Strategic Risk Assessments (for his work with the Australian Forest Contractors Association), and Bob Pearce, chief executive, Forest Industries Federation of Western Australia. Photographed on the dias, from, left, are Ken Padgett, AFCA, Ron Scott, Col Shipard, Michael Hartman, CEO, ForestWorks, Bob Pearce, Martin Lewis, Furniture Industry Association, and Ron Adams, chairman, Forest and Wood Products Australia.

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Page 4 | issue 246 | 05.11.12

Along with Professor Goran Roos, managing director of London-based Intellectual Capital Services, Mr Caddell and other speakers pressed the point that wood is cellulose and that cellulose contains the greatest potential value because it can be broken down into sugars, which are like the stem cell of chemistry.

“If you have sugar, you can convert that into almost anything,” Prof. Roos said.

[The conference presentation

by Prof. Roos will appear in a future edition of T&F enews].

In the value chain, lumber and paper are still the most valuable products made from trees. In recent years, the lumber and

‘The greatest challenge will be in educating Canadian and foreign leaders on the opportunities in the sector – and educating the people who will be filling these positions’ – Andrew Caddell

pulp and paper industries have also added bio-energy as a third value-added product – such as wood pellets.

But, according to bio-chemistry proponents, bio-refining holds the greatest potential. This is because chemical companies are keen to find alternatives to fossil fuels to make things like plastics.

Today all of it is derived from oil and those companies are all looking for alternatives to petrochemicals, and the opportunity is in sustainable bio-chemicals.

Andrew Caddell invited industry leaders to share in Canada’s research.

This invitation included sharing of best practices and valuechain research solutions; engagement with universities and other R&D providers; industry and government partnerships; competitive forestry and transportation processes; new nano products and applications; and new energy and chemical products derived from forest biomass.

“In short, a global vision of product development for the Canadian and Australian forest industries,” he said.

“My bottom line is how can I assist the industry to promote an understanding of our capability in innovative products and services as well as traditional ones, especially to emerging markets in Asia, in the Americas and in Europe?

The Natural Sciences and Engineering Research Council of Canada, Forest Innovations and Natural Resources Canada have partnered to create the NSERC Forest Sector R&D Initiative, a $34 million, fiveyear program to identify commercially relevant research that will create new market opportunities for the Canadian

Cont Page 17

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WHAT’S ON?

NOVEMBER

3: Queensland Timber Industry Awards Night – Victoria Park Function Centre, Brisbane.

9: ALCAS (Australian Life Cycle Assessment Society) roundtable – MLC Centre, Level 47, 19 Martin Place, Sydney, 9am-1pm. German Experiences in Timber Assessment and Building Sustainability Rating Tools and Directions for Australia. Keynote speaker is visiting international scientist Sebastian Rüter from Germany’s Johann Heinrich von ThünenInstitute. He will present the results of a recent LCA project of German forest products in the context of Environmental Product Declarations (EPD).

His presentation will focus on sustainable building certification schemes in Germany. The roundtable is a ‘free’ event for ALCAS members and invited guests ($50 for non-members) or join ALCAS for 2012-13 at $99 and attend for free). Agenda (and log-in details will be emailed to registrants. Email: roundtable@ alcas.asn.au 13: VAFI annual dinner – Grand Ballroom, Park Hyatt, 1 Parliament Square, Melbourne.

6:30-11:30pm. The dinner presents an opportunity for members and stakeholders of Victoria’s forest and wood products industry to network and showcase the industry, and its achievements, in a relaxed atmosphere. Special guest speaker Peter Walsh, Minister for Agriculture and Food Security

and Minister for Water. Masters of ceremonies Nick Duigan and Andrew Hart from the TV series Going Bush. Contact Jillian Roscoe on (03) 9611 9002 or jroscoe@vafi.org.au for bookings.

26: FSC Australia 6th Annual Excellence awards, Melbourne This year sees a redesign of the awards, and the introduction of three new awards categories.

Visit www.fscaustralia.org 28-29: ForestTech 2012 – Improving Wood Transport and Logistics.

Melbourne and Rotorua

30: NSW Forest Products Association annual conference and timber industry dinner.

Parkview Room, Doltone House, Darling Island Wharf, 48 Pirrama Rd, Pyrmont. Conference 9am3.30pm. Theme: Community Engagement for the Forestry Industry. Keynote speaker Troy Grant, Parliamentary Secretary Natural Resources. AGM for FPA members at 4pm. Dinner starts at Doltone House, Jones Bay Wharf, Pirrama Rd, Pyrmont, at 6.30pm. RSVP: November 2. Tel: (02) 9279 2344. Email: fpa@nswfpa.asn.au. Web www. nswfpa.asn.au

APRIL 2013

7-10: 6th International Woodfibre Resources andTrade Conference, Istanbul, Turkey.

‘Woodchips and Biomass for Global and Regional Markets’.

Hilton Istanbul Hotel. Discounted rooms for conference delegates if booked via the online process.

Book before November 2, 2012

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EVENTS

to ensure a room. Visit www. woodfibreconference.com

Residues-to-Revenues 2013 Conference and CleanTECH Expo Wood energy and ‘cleantech’ industry developments.

Crowne Plaza Hotel, Auckland, April 10-11, 2013; Bayview Eden Hotel, Melbourne, April 15-16, 2013. Event website: www. woodresiduesevents.com

April 28-May 12: EuroWOOD 13 study tour to LIGNA Hannover (May 6-10). Study tour and tourist visits to Austria and Germany, starting in Vienna and finishing at LIGNA, Hannover, Germany. Add-on tour options to Finland and UK and European destinations. The 15-day tour is supported by the Engineered Wood Products Association of Australasia (EWPAA), in collaboration with other industry bodies and companies.

Participants will have the option to attend the full LIGNA program in Hannover and join selected visits to surrounding wood manufacturing factories and a university outside LIGNA for one or two days, allowing three full days at LIGNA. Internet site available soon. Costs, program and itinerary available at eurowood13@bigpond.com

MAY 2013

8: Global Softwood Log & Lumber Conference Sheraton Wall Centre Hotel, Vancouver, BC. Sponsor opportunities available. Contact: info@ woodmarkets.com or call 1-604801-5996.

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 246 | 05.11.12 | Page 5

5th ANNUAL INDUSTRY DEVELOPMENT CONFERENCE – CANBERRA

EWPAA sticks to standards on plywood, panel products

Green label campaign launched in Canberra

A NEW product awareness campaign that delivers a ‘peace of mind’ message to wood suppliers and consumers on the safety of Australasian plywood and panel products was launched at the industry development conference in Canberra last week.

Cornerstone of the campaign is an adhesive label – a ‘green tick’ – that guarantees these products and furniture manufactured from them meet Australian and New Zealand standards and are tested to have formaldehyde levels below those required by health authorities.

The campaign, initiated by the Engineered Wood Products Association of Australasia and supported by the Furniture Industry Association of Australia (FIAA), will distribute more than 100,000 labels to EWPAA members and furniture and kitchen manufacturers.

The labels promote the safety of EWPAA member products that are tested to emission standards of Super E0, E0 and E01.

Page 6 | issue 246 | 05.11.12

When you’re on a good thing, stick to it .. Simon Dorries, EWPAA general manager (centre) rolls out the green label campaign on emissions in Canberra with Furniture Industries Association of Australia’s general manager Dean Brackell and CEO Martin Lewis.

‘Connecting with wood consumers is no longer purely about product distribution, it’s about branding and consumer awareness’ – Simon Dorries

About 5000 of the labels will be attached to products manufactured by FIAA members.

The campaign has spread to New Zealand, Papua New Guinea and Fiji where EWPAA members are distributing the labels to furniture and wood panel manufacturers and

enclosing them in packs in their own product distribution chain.

A major aim of the EWPAA green ticket campaign is to provide consumer confidence that products manufactured

by EWPAA members are tested to meet all standards for formaldehyde emissions.

Mr Dorries and FIAA president Ron Scott were at the Canberra conference to join a panel of speakers in a session focusing on competition in Asian markets.

“Wooden and upholstered furniture continue to be the industry class hardest hit by imports some of which fail emission standards,” Mr Scott said.

“More than half of all furniture imports originate from China; they mostly impact on the retail sector where about twothirds of furniture turnover is imported.”

Mr Dorries said connecting with wood consumers was no longer purely about product distribution; it was about

Cont Page 9

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EVENTS

Interest grows in EuroWood tour to LIGNA Tentative program tracks industry in Austria, Germany INTEREST is widening in the 16-day EuroWood study tour to Austria and Germany next year.

More than 20 people connected to the engineered wood sector have registered their intent to participate.

The tour, from April 26 to May 10 next year, takes in five days at the LIGNAHanover Fair in Germany.

The tour is supported by the Engineered Wood Products Association of Australasia, in collaboration with other industry bodies and companies.

The tour will study the latest technologies of factorybuilt prefabricated housing and cross-laminated timber (CLT) construction methods, revolutionary MDF processes, wood panel processing, structural timber frame housing construction, and all the machinery that puts it together.

All airfares, ground travel and most meals are provided in the tour cost, including entry to the LIGNA exhibition from May 6-10.

Contact: the EuroWood 2013 Secretariat on (07) 3266 1429 or (02) 9356 3826. Email: eurowood13@bigpond.net.au Costs, a purpose-built website and a more detailed program will be posted shortly.

EuroWood draft itinerary FRIDAY, APRIL 26 Depart – Sydney / Auckland, fling Qantas/Emirates SATURDAY, APRIL 27 Arrive Dubai. O/nite Dubai SUNDAY, APRIL 28 Arrive Vienna. Rest day.

MONDAY, APRIL 29 Breakfast*.Morning visit Dascanova, Mooslackengasse 17, Vienna The Dascanova Co.´s R&D team has developed many different concepts over the last year. Currently, the team has been working on two sub-projects – the first is new MDF panels technology; the

second, special distribution of modification agent.

A prototype of the MDF modification has been running in the laboratories in Vienna since April 2012. The goal is to start the industrial MDF modification during 2013.

[The Mendel University in Brno (Czech Republic),a research partner, has been working on the optimising the density distribution inside the woodbased material].

Dascanova technology is saving wood-based panel producers up to 30% on raw

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materials (wood particles, resin and other chemical components) as well as saving on the energy required for production processes, such as fibre drying.

CEO is Dr Tomas Joscak, PhD. Lunch at Dascanova HQ Afternoon free.

TUESDAY, APRIL 30 Breakfast*. Depart Vienna for Graz – the student city – 200 km southwest of Vienna.

Lunch stop. Dinner* and o/nite stay Graz.

Visit Institute for Timber Engineering and Wood

Technology, Graz University, a world leader in CLT building technology. CLT construction technology began in Austria over a decade ago. European manufacturers now number over 10.

University professor Dr.Gerhard Schickhofer will address a seminar on the European experience of building with the new material and the challenges met, as well as current research topics and advanced design with CLT. Cont Page 9

issue 246 | 05.11.12 | Page 7

INDUSTRY NEWS

South America eyes massive US rebuilding effort after Sandy blow

AS public officials assess the damage caused by Hurricane Sandy, North America’s building-supply sector has begun girding for the rebuilding phase following the massive storm.

Everything relates to rebuilding and lumber is in top demand – whether it is repairing woodframe homes, pouring concrete, putting up scaffolding or shoring up damaged buildings.

Traditional foreign wood suppliers like Chile and

Page 8 | issue 246 | 05.11.12

Brazil are gearing up for the impending massive demand.

Mills in British Columbia could run short of logs to feed their facilities if tapped to meet a sudden demand at a time when weather won’t permit the ramping-up of logging operations again. Many mills will have to wait until winter when the ground freezes to begin replenishing supplies.

Repair efforts could run into a supply crunch in an industry that is ramping up to meet

a nascent return of US newhome construction. Lumber inventories are running thin.

And that means higher profits for lumber companies that supply the US construction industry.

Industry observers say nobody has been stocking inventory even this year because “they don’t really trust the recovery is really here”.

Even with a modest recovery in American housing starts during 2012, North America’s lumber

markets have seen ‘very restricted supply’ conditions throughout the year. Buyers have had to order directly from sawmills rather than wholesalers.

However, order files at sawmills are already booked for two to four weeks out, at a time when they are usually preparing to slow down production for winter.

The longer out a mill knows that it has sold out supply, the higher the price is going to be.

The price for lumber futures spiked $US10 — the maximum allowed in a single day — and reached 19-month highs on the Chicago Mercantile Exchange.

November prices hit $US318 per thousand board feet of spruce, pine or fir two-byfours, an industry benchmark measure. The price on January futures reached $US331.

Reuters reported that Sandy, which made landfall on the eastern seaboard late Monday last week and has killed at least 64 people, may cause up to $15 billion in insured losses, according to one disastermodelling company.

“The widespread impact of the storm could increase demand for lumber over the next several months,” said Gary Vitale, president of the North America Wholesale Lumber Association, a grouping of 450 mills and wholesalers.

“With such devastation, it could take a month or so for any rebuilding to start.”

Trade sources told Reuters that the home-rebuilding process in the north eastern US, which bore the brunt of Sandy, could stretch well into 2013, keeping demand for lumber robust.

They also said efforts by homeowners to quickly rebuild or repair their homes could be hampered a shortage of supply.

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ENGINEERED WOOD

Furniture industry will gain strength as partner in consumer campaign

From Page 6

branding and consumer awareness – and building a product’s credibility.

EWPAA’s on-going testing is exposing emission levels up to 10 times above Australian standards and exposing massive discrepancies in product claims.

“There is a thorough code of standards in Australia for wood panels in specific applications,” Mr Dorries said.

“These requirements take into

account not only the durability and safety of a product, but also its use under Australian conditions.”

Mr Scott said the furniture industry would gain new strength by partnering EWPAA on consumer awareness.

“The campaign will help the Australian furniture industry promote the security, quality, design and style of its products and guarantee the environmental, sustainable and health benefits.”

EuroWood 2013 tour

From Page 7

Lunch at university. Dinner*. O/ nite stay Graz.

WEDNESDAY, May 1 Breakfast*. Travel to Salzburg.

Lunch* Salzburg Castle; tour of Old Town.

O/nite Salzburg. Evening free.

THURSDAY, MAY 2 Breakfast*. Travel to Stuttgart.

Visit Weinmann Group (partner and subsidiary of Homag) at St. Johann-Lonsingen in the Swabian Alps south of Stuttgart to inspect factorybuilt prefabricated housing and cross-laminated timber (CLT) construction methods. Lunch at Weinmann. Evening free. O/ nite Stuttgart FRIDAY, MAY 3 Breakfast* Travel to Black Forest. Visit the Homag Group at Schopfloch in the northern part of Germany’s Black Forest. Homag is a global player represented in more than 100 countries. It is a

leader in the field of machinery and manufacturing for panel processing, structural timber frame housing construction, producing solutions from stand-alone machines to complete production lines.

Lunch at Homag.

Return to Stuttgart. Evening free. O/nite Stuttgart.

SATURDAY MAY 4 Breakfast* Depart for Hannover.

Lunch* and tourist locations along way.

SUNDAY, MAY 5 Rest day Hannover. Day free MONDAY-FRIDAY, MAY 6-10 LIGNA Hannover 2013 Fair.

Breakfast* each day.

(Optional industry visits or visits to tourist spots during LIGNA).

FRIDAY EVENING, MAY 10: Farewell dinner* at hotel.

SATURDAY, MAY 11 Breakfast*. Depart for Australia, NZ – or other optional destinations. * = included in tour cost.

dennis@industrye-news.com

editorial inquiries

tel:

+61 3266 1429

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issue 246 | 05.11.12 | Page 9

5th ANNUAL INDUSTRY DEVELOPMENT CONFERENCE – CANBERRA

Hats off to timber .. Bob Katter, MP Kennedy and leader of Katter’s Australia Party (centre) gets an update on industry issues in both Australia and New Zealand at the industry liaison dinner from Ron Scott, president, Furniture Industry Association of Australia, and Michael Edgar, director, Asia-Pacific region, Global Forest Partners, Auckland.

Arriving early for a busy conference are Max Diamond, manager, Forest Industries Employment and Training Service, CFMEU, Michael Hartman, chief executive, ForestWorks, and Scott Whicker, mill manager, Kimberley-Clark Australia, Snuggery, SA.

InSurAnce..

It’S All In the SelectIon

Selecting the right equipment to maximise your production output is similar to selecting the right people to maximise your insurance protection.

Jane Bartier, deputy chief executive officer, ForestWorks, welcomes Michelle Freeman, director, youth and women, Institute of Foresters of Australia, and Alison Carmichael, chief executive, IFA.

Austbrokers Premier has been working with the timber industry for over 25 years and we know what insurance best suits your industry and risks. Whether it’s a complicated business interruption loss or a burnt out frontend loader we work hard to get you the right outcome.

You can expect superior outcomes from Austbrokers Premier in the following key areas: • Focus on premium value and insurer security • Expert advice for Business Interruption • Premiums + claims + deductibles – self insurance option analysis • Committed claims management & settlement negotiations.

• On-going service and advice, not just at renewal time.

Call Alan Jones 0419 754 681 or Scott Hastings 0406 382 582 today.

Freecall 1800 803 180 ABN 95 010 576 324 AFSL 238123

Insuring it all stacks up.

Page 10 | issue 246 | 05.11.12

Welcoming delegates are ForestWorks team members Antoinette Hewitt, national program manager and skills standards and resources, and Cathy Ashton, communications manager.

Sharmily Mukherjee, national program manager, ForestWorks, and Dr Michael Kimber, consultant trainer, MTO Group Pty Ltd, Cairns, Qld.

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5th ANNUAL INDUSTRY DEVELOPMENT CONFERENCE – CANBERRA

Johan Jakman, Scandinavian Forestry and Engineering Pty Ltd, is met

by ForestWorks team members Devika Mudaliar, NSW skills advisory manager, and Debbie Tickner, licensing standards officer.

Craig Lewis and Stuart Ralph, representing the Tasmanian Sawmillers Association, and Scott McLean, industry and community liaison, ForestWorks.

Breaking for refreshments are Noelene Blair, Dahlsens Building Centres, Melbourne, Kay Gerard, chief executive, Food, Fibre and Timber Industries Training Council, and Jacynta Annesley, Dahlens.

Representing Hunter TAFE, Newcastle, NSW, are Brad Holmes, head teacher, and Grant Cohen.

Safer than a smoked cod

*

ALL products manufactured by members of the Engineered Wood Products Association of Australasia are GUARANTEED to comply with Australian standards on low formaldehyde levels.

Certified E0 and E1 under strict JAS-ANZ accredited system, EWPAA products are the permanent solution to any concerns over emissions.

Don’t .

Risk It

Visit .au sn ewp.a . w w w

Be sure. Be safe.

Specify EWPAA products stamped with the approved certification.

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

Engineered Wood Products Association of Australasia Plywood House, 3 Dunlop Sreet, Newstead, 4006 Queensland Australia Tel: +61 7 3250 3700 Fax: +61 7 3252 4769 Email: inbox@ewp.asn.au

* 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 246 | 05.11.12 | Page 11

5th ANNUAL INDUSTRY DEVELOPMENT CONFERENCE – CANBERRA

A lot in common .. Trevor Smith, chairman, Southeast Forest Industry Round Table, Michelle Ingley-Smith, ForestWorks skills advisory manager, South Australia, Lexie Hurford, Hurford Hardwood, Lismore, NSW, Rob Rule, Timber Training Creswick, and Dr Hans Drielsma, non-executive director, Australian Forestry Standard Ltd.

Women in timber .. Alicia Oelkers, state manager, TABMA Queensland, Jennie Day, marketing manger, Versace Timbers, Brisbane, and Clarissa Brandt, communications manager, Timber Queensland.

Arriving for the industry liaison dinner, Jan Tierney, Home Renovations, Brisbane (left) meets up with Jon Kleinschmidt, chief executive, Hyne, and Julie George ForestWorks deputy chair and general manager, management services division, Hyne.

Exchanging view during a coffee break are Terry Edwards, chief executive, Forest Industries Association of Tasmania, Bob Gordon, managing director, Forestry Tasmania, and Todd Loydell, Loydell Consulting, Canberra.

Rod McInnes, chief executive, Timber Queensland (left) catches up with Alastair Woodard, director Wood Products Victoria.

Industry leaders .. Bob Smith, forest industry consultant, Ron Adams, chairman, Forest atnd Wood Products Australia, and David Brand, managing director, New Forests, Sydney.

Page 12 | issue 246 | 05.11.12

Graeme Russell, chief executive, First Super (second from left) and Emily Rice (conference MC), Network Ten national reporter, with panel speakers in the ‘Competing in the Asian Century’ session Simon Dorries, general manager, Engineered Wood Products Association of Australasia, Tony Price, chief executive, Australian Bluegum Plantations, and Ron Scott, president, Furniture Industry Association of Australia.

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5th ANNUAL INDUSTRY DEVELOPMENT CONFERENCE – CANBERRA

Relaxing at the conclusion of the conference are Dr David Pollard, CEO, Australian Forest Products Association, Canberra, Alastair Woodard, director, Wood Products Victoria, Melbourne, and Richard Stanton, national secretary, Australian Forestry Standard Ltd.

Earning the applause .. recipients of ForestWorks outstanding service to industry awards presented during the industry liaison dinner at Parliament House are Ron Scott, president, Furniture Industry Association of Australia, Col Shipard, Strategic Risk Assessments (for his service to the Australian Forest Contractors Association), and Bob Pearce, chief executive, Forest Industries Federation of Western Australia.

Inaugural Gottstein forest science course Simon Dorries, general manager, Engineered Wood Products Association of Australasia, Brisbane (right), talks engineered timber products with Dianne and Tim Goodall of Warnambool Timber Industries located in southwest Victoria. Mr Goodall is chairman of the Glulam Laminated Timber Association of Australia.

Industry policy session .. Michael O’Connor, national secretary, CFMEU forestry division, Michael Hartman, CEO, ForestWorks, and Dr David Pollard, chief executive, Australian Forest Products Association.

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In February 2013, for the first time, the Gottstein Trust will offer a Forest Science Course to assist in understanding the science of the growing side of the industry.

This week-long Forest Science Course, is based at Creswick, Vic,, home of the Victorian School of Forestry, and will cover all aspects of forestry including natural and planted forests, establishment, management, inventory, environmental issues and national and international market trends.

The course is aimed at middle managers and potential mangers within the forestry industry and may be particularly relevant to people who have recently commenced work with a forestry company who have no formal training in this area.

Additional information is available from Silvia Pongracic on 0418 764 954, or email silvia.pongracic@csiro.au Visit www.gottsteintrust.org issue 246 | 05.11.12 | Page 13

5th ANNUAL INDUSTRY DEVELOPMENT CONFERENCE – CANBERRA

ForestWork team members enjoying the industry liaison dinner at Parliament House are Michelle Ingley-Smith, South Australian skills advisory manger, David Rutherford, provider network manager, Sharyn Wright, skills advisory service manager, and Ashwani Mangla, project officer.

Sharing a table at the industry liaison dinner are Nick Connolly, human resources officer, training, Forestry Tasmania, Ross Connolly, relieving education program manager, TAFE NSW, and Grant Cohen, cabinet making teacher, Hunter Institute of TAFE, Newcastle.

Conference break for Ashwani Mangla, project officer, ForestWorks, Dr Georgina Dalan, research officer, ForestWorks, and Dr Mihai Dalan, Fitzpatrick Woods Consulting.

Page 14 | issue 246 | 05.11.12

New thinking: Delivering Add Values .. Allan Stewart, First Super, Jim Henneberry, chief executive, Australian Paper, Graeme Russell, chief executive, First Super, and Brett Hinbury, CEO, Industry Funds Management.

Russ Ainley, executive director, NSW Forest Products Association, Sydney, catches up with Senator Richard Colbeck, Shadow Parliamentary Secretary for Innovation, Industry and Science and Opposition spokesman for forestry, at the industry liaison dinner at Parliament House.

Editor of Timber & Forestry enews Jim Bowden shares a table with Bronwyn Bishop, Liberal member for the federal seat of Mackellar and a former president of the NSW division of the Liberal Party.

Jennifer Ranson, Australian Workforce and Productivity Agency, and Leisa Hopper, project manager, Department of Industry, Innovation, Science, Research and Tertiary Education.

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INDUSTRY DEVELOPMENT CONFERENCE – CANBERRA

WFTN gains strength Australia-wide Women’s skills recognised at Canberra workshop

A WORKSHOP meeting of the Women in Forests and Timber Network in Canberra last week attracted its highest attendance giving the network the opportunity to engage with women from all over Australia.

The gathering at the Hyatt Hotel during the 5th annual ForestWorks industry development conference comprised more than 40 women from diverse occupations and sectors within the forest, wood, paper and timber industries.

The WFTN aims to recognise the contributions of the women in the industry, to celebrate their achievements and to support their access to skills and professional development opportunities.

The capacity building session of the workshop in Canberra carried the theme ‘mentoring for success’.

Support for mentoring and peer support of women has been fundamental to the successful establishment of the network in an informal way and the Canberra meeting was a step towards embedding some practical directions for the advisory group to formalise a mentoring program for women to access through the network.

Women at the meeting volunteered and committed to

Promoting women’s skills .. delegates to the Canberra workshop of the Women in Forests and Timber Network gather at the Hyatt Hotel.

being mentors for other women in varying expertise while others indicated their interest in being a mentee or keen to access a mentor.

The advisory group will consider a best practise approach for the WFTN mentoring program.

ForestWorks hosts the network and has undertaken administration and coordination of advisory group meetings and the management of the database and website to ensure it is up-to-date with relevant information and promotes WFTN activities.

Advisory group members include Jane Calvert (first and current chair of WFTN), Kersten

Gentle, Alison Carmichael, Jan Newport,; Adele Wedding, Linda Maddern, Clarissa Brandt, Diana Lloyd, Lisa Marty, Jillian Roscoe, Michelle IngleySmith, Jane Bartier, Michelle Freeman, Denise CampbellBurns, and Jenni Day. Information about membership in WFTN is available from Michelle Ingley-Smith on (08) 8219 9028 or email wftn@ forestworks.com.au Web: www.forestworks.com. au/topics/9546 WFTN is expected to send a delegation to the National Rural Women’s Conference in Canberra from February 18 to 20 next year.

The conference will bring together women of all ages from every state – the voices of regional and rural Australia – to network, learn, share and play an active role in shaping their future.

This will be an opportunity to expand networks, make new business connections, enhance and improve skills – and be motivated and inspired by some amazing women.

Liz Davenport, leading Australian fashion designer and businesswoman and Elizabeth Broderick, Australian Sex Discrimination Commissioner since 2007, will be keynote speakers.

days, in an attempt to reach a compromise.

“From our point of view we would be very keen for these talks to be resolved within the next few days,” he said.

“I think inevitably if we don’t reach an agreement within the next few days it’s probably unlikely we will be able to.”

An ABC report says the Wilderness Society is also willing to continue talks but says a fundamental shift in position is needed from some

sawmillers.

Negotiators are expected to consider new information from Forestry Tasmania.

It is understood the information relates to the sticking points for an agreement, including new reserves and industry requirements.

The Premier Lara Giddings says she will monitor any developments.

“I still say that it’s not over until it’s over and what’s important is we still have discussions

occurring.”

But she has refused to outline plans or options.

That’s part of the problem here,” she said. “We have an absolute situation of lose, lose, lose, if we don’t get some sort of agreement through.”

Meanwhile, timber veneer processor Ta Ann has held crisis talks with the government.

The company is concerned about its timber supply after the collapse of the forestry peace talks.

Not over just yet for forestry peace talks

SIGNATORIES to Tasmania’s forest peace talks are expected to continue informal discussions after yet another deadline passing on an agreement.

The Forest Industries Association of Tasmania’s deadline for the protracted talks ended last Thursday without any progress on a deal.

FIAT chief executive Terry Edwards says despite this, he is still keen to continue informal discussions over coming

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issue 246 | 05.11.12 | Page 15

FORESTRY AND FOREST MACHINERY

Contracting: as the man said ‘life wasn’t meant to be easy’

Balancing investment and machine value a tricky exercise

AS the man said .. life wasn’t meant to be easy.

Well that certainly applies to forest harvesting and haul contractors.

In addition to the present abjectly shocking state of the building industry that has pretty much the whole industry in a state of gloom and doom – there are a number of other hurdles in front of forest contractors and not all contractors are Sally Pearsons!

According to Australian Forest Contractors Association manager David Drane, forest contractors, already low down in the forest food chain, have to confront a range of issues because of the state of the industry, its profitability and tight margins.

David points to a trend by forest owners and sawmillers to squeeze rates because of their own profitability concerns.

Then there are increases in operational cost, particularly those related to fuel, insurance and wage-rated charges.

Insurance availability and cost has become a particular bug bear in recent times. David Drane says machinery damage and repair claims – many related to vandalism – mean insurance has become a hugely difficult issue for contractors.

In fact, it is now impossible to obtain cover from some insurance providers who have worked with the industry over past years.

Insurance is an issue contractors should discuss with the Australian Forest Contractors Association and with their machinery suppliers.

Between them they should be able to offer some constructive advice.

If you are in Tassie, talk to the

Page 16 | issue 246 | 05.11.12

Staying competitive in tough market .. forest contractors need to stay up to the mark with machinery and systems innovation and development.

Tasmanian Forest Contractors Association. They are doing a good job representing the interests of the state’s forest contractors in difficult times.

They are able to offer individual contracting businesses a wide range of support services, such as insurance, industrial relations advice, safety management, benchmarking, rate calculations, and contract representation.

There is no doubt that to continue to be competitive in tough market conditions forest contractors need to stay up to the mark with machinery and systems innovation and development. To some degree this is a code for having to spend money on machinery and equipment upgrading and replacement.

It can be a tricky exercise – balancing investment with getting value from existing machinery. It is challenging both arithmetically and operationally.

Sometimes more fuel-efficient engines, lower maintenance demanding machines and improved technology can make

Deep in the Woods with ..

Cheryle Forrester the difference between getting into the draw for a contract or not.

So getting professional accounting and technical advice might be time and money well spent.

Sounds like a bit of a sermon

this time, but it’s tough enough sitting in the forest contractor’s seat, so you should never be timid or too proud about asking for another opinion or guidance.

The Australian Forest Contractors Association and the Tasmanian Forest Contractors Association are both good places to start.

I don’t want to sound all bleak and depressing this week as there are some promising prospects on the horizon for improved forest utilisation that will benefit contractors in the medium term.

Some of these benefits relate to improved utilisation of native forests and biomass production.

Both will involve increased handling and recovery of smaller, lower quality logs, particularly in native forests, but also from plantations. So more sophisticated materials handling and forwarding capacity will be key elements of at least some future forest and plantation harvesting.

This will be driven by state governments trying to stretch forest resources to meet log supply contractual obligations.

And also, God willing, we get a federal government that accepts the use of residues to fuel renewable energy production like they do in the rest of the world – a policy direction from Canberra that harvesting of residual logs presently not recovered is economically and environmentally legitimate.

So it’s still tough going in the trenches, but hang in there – get some available support – and look to catch a wave when times improve in the future.

Amen!

See you next time.

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INDUSTRY TRAINING

Tasting the ‘flavour’ of growing forests Gottstein course targets middle management and potential managers

THE Gottstein Memorial Trust has been servicing industry training needs for almost 35 years by running wood science courses about every two years.

These courses assist new entrants into the industry to get a ‘flavour’ of the science that underlies the forest products industry.

In February next year, for the first time, the Gottstein Trust will offer a similar training course to assist in understanding the science of the growing side of the industry.

This week-long forest science course, based at Creswick, Vic, home of the Victorian School of Forestry, will cover all aspects of forestry including natural and planted forests, establishment, management, inventory, environmental issues and national and international market trends.

The course is aimed at middle

Understanding the science of growing trees .. Gottstein course a combination of lectures and field trips.

managers and potential mangers within the forestry industry and may be particularly relevant to people who have recently commenced work with a forestry company who have no formal training in this area.

The course will be a combination of lectures and panel discussions with a field day included that will cover planted and natural forest operations and a native timber sawmill.

developing export markets for new products and processes such as CLT. Canada has three major CLT manufacturers, two in eastern Canada and one in British Columbia.

“Wood-first policies have resulted in more than 80 structures being built in Canada with laminated wood, and there are more to come,” Mr Caddell said.

“The market for low-rise construction in the US alone is $56 billion a year.

“A Harvard study projects 2022 million units being built in

the US in the next 15 years.

With demographic changes, and location issues, many of those units will be low-rise multi-family residential.

Changes in building codes in the US will open up opportunities for Canadian companies to take on this market.”

Referring to Canada’s performance Mr Caddell said it was the innovation side of the industry that was really exciting.

“Our exports to Asia are growing.

Whereas we traditionally export about 85% of our goods to the US, that

The course will also overview economic, social and environmental aspects of forestry. Leading academics and industry personnel will be presenting different topics and after-dinner addresses will be given by Ric Sinclair, managing director of Forest and Wood Products Australia, and Sid Sidebottom, MP, Parliamentary Secretary for Department of Agriculture, Fisheries and Forestry.

Past attendees at the Gottstein wood science courses have praised the courses and it is expected a similar level of satisfaction will be achieved with the latest forest science course.

Further information can be obtained from Silvia Pongracic on 0418 764 954, or email silvia.pongracic@csiro.au Visit: www.gottsteintrust.org

Developing export markets for new products

From Page 4

forest sector.

Research funded under this initiative will be conducted through 2014, and is expected to generate lasting impacts throughout the industry.

“This is the future of the forest sector – an array of products right along the value chain,” Mr Caddell said.

“The greatest challenge will be in educating Canadian and foreign leaders on the opportunities in the sector – and educating the people who will be filling these positions.”

He said this involved

number has declined to 75%.

Asia has taken up the slack.

“In China, our exports have grown 300% in the last few years, putting about 2500 people back to work in the forest industry.

“In India, we hold 79% of the mechanical pulp market and we are seeking out niche markets to grow the Canadian brand there as well.

“And as we seek to become part of the Trans-Pacific Partnership, forest exports will play a part in those discussions.”

Komatsu ‘heads’ for expansion with Log Max buy

KOMATSU Forest is to acquire

Komatsu

Inc., Log Max AB’s US sales

the end of November. Log

Log Max AB and Log Max, company,

from

Log

International Holding AB.

Max

is

working

to

complete the acquisition by Max

AB,

a

Sweden-based

manufacturer of forest machine

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attachments, has an extensive

generating important synergic

high-reliability

forestry machines as a result

range of simple structured, harvester

heads in small to large sizes.

Komatsu

looks

forward

to

effects in sales expansion of of expanding its range of harvester heads.

issue 246 | 05.11.12 | Page 17

Left alone, forests can bounce back after Nature blows through

NATURE seems able to take care of itself without our help, according to the results of a 20-year study at the Harvard Forest, an ecological research area of 1215 ha owned and managed by Harvard University Petersham, Massachusetts, USA. The research outlines how forests bounce back after sustaining severe damage, independent of human assistance.

The scientists studied ecological growth in a 1 ha plot where they had pulled down trees to simulate the effect of a major hurricane on a forest in order to see how forests recuperate after natural disasters.

The study looked not only at damage to large trees, but also ran experiments to investigate how climate change could affect the activity of microbes in the soil, nitrogen concentration, and plant growth.

The experiment was meant to simulate the damage done by the Great Hurricane of 1938, which toppled about 70% the Harvard Forest. After that storm, locals led the biggest forest salvage in US history, removing dead wood that researchers today say could have helped in reviving the ecosystem’s health.

The Harvard Forest study began in October 1990. Trees in the experimental plot were either uprooted or snapped by using heavy machinery, simulating the effects of a major hurricane. Compared to the older approach of chopping

Down but not out .. broken and snapped-off trees at a tornado impact area in Southbridge, Massachusetts, USA.

down trees and leaving them there, this methodology was a significant improvement, the researchers said.

Surprisingly, damaged trees in the plot not only grew back but fully uprooted trees continued to live and produce leaves for the first few years after manipulation. Within about six years, biomass production in the plot was still lagging but biological processes in the forest were back to normal.

This contrasts with prior

‘The fact that the forest recovered so effectively was not surprising but the way in which it recovered was surprising’ – David Foster

David Foster .. natural processes that forests have dealt with forever.

hypotheses that without human interference, growth would be hindered by pest infestation or fire outbreaks, neither of which posed problems in this experiment. Also striking was the discovery that the ‘new’ forest was again dominated by previously dominant saplings and seedlings, as opposed to

less prominent species that had out-lived stronger competitors immediately after the storm.

“The fact that the forest recovered so effectively was not surprising but the way in which it recovered was surprising,” Harvard Forest director and overseer of the project David Foster said.

“Normally we look at a forest that’s been burned, or a forest that’s been blown down, or an area that’s been flooded as being ruined or destroyed or damaged,” he said.

“But these are, of course, natural processes forests have dealt with forever.”

Audrey Barker-Plotkin, primary researcher on the project, shares Foster’s sentiment.

“It’s very humbling, in a way, to see a forest change before your eyes,” she said. “When you see a forest you love blown down or harvested, it’s really difficult to believe that it will come back.”

Both cited the importance of being able to conduct longterm studies such as this one.

“It’s important to see how critical it is to study ecological processes over a long period of time,” said David Foster.

He added that these results had important implications for not only the way in which scientists conducted research in forestland, but also attitudes towards treatment of natural ecosystems at large.

“If we are trying to work with Nature and accommodate and help Nature,” he said. “We have to do it on Nature’s terms.”

– Harvard Crimson News

COPYRIGHT NOTICE Items provided in this section of Timber & Forestry E news are drawn from a number of sources. The source of the item is quoted, either by publication or organizations in line with the practice of fair reporting.

Page 18 | issue 246 | 05.11.12

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