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ISSUE 282 | 12.08.13 | PAGE 1
Australia now too risky for Ruskies
tHis issue • Forestry tasmania joins FsC • election campaign pushes housing
Rise of Asian markets reshapes timber industry in Siberia and far east Russia THOUSANDS of cubic metres of Siberian spruce pine destined for Australia have been diverted to blossoming Asian markets as the dollar Down Under and a lethargic building sector render the destination too risky for Russian exporters. At least two new large sawmills in eastern Siberia were considering Australia and New Zealand as possible markets for their spruce and larch plywood and structural timbers. But, in fact, it is Russia’s lack of advanced processing capacities that has seen an alarming growth in the exports of logs, rather than finished products, to Asia-Pacific
For the time being, Russia says ‘nyet’ to Australasia as an export market.
markets. There are other factors: an uncompetitive wood processing industry, weak regulation, pervasive illegal logging and export, and high energy and transport costs. But rapid increase in demand, particularly in China, is the primary driver of change. Most regions within the federal far eastern region have increased timber cutting dramatically since the start of this year. According to the Russian Ministry for the Development of the Far East, the region’s timber
$2.4m to help Forestworks training • CLt goes to air nationally • AFs calls for independent directors • Housing drives recovery in us • it’s all about sVLK at Jakarta talks • Certification drives export growth in Indonesia
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www.osmose.com.au Call: 1800 088 809 ISSUE 283 | 19.08.13 | PAGE 1
industry news
Forestry tasmania joins FsC Australia economic chamber STATE-owned resource manager Forestry Tasmania has been accepted as a member of FSC Australia’s economic chamber. The corporation manages 1.5 million ha of state forests for sustainable timber production which contains 39% of forest lands. FT operations are independently certified under the Australian Forestry Standard. “We are delighted that Forestry Tasmania has committed to support FSC’s mission to promote environmentally appropriate, socially beneficial and economically viable management of the world’s forests,” FSC Australia CEO Natalie Reynolds said. “It is important to note that membership of FSC Australia does not in any way influence the audit assessment for FSC certification, and thus whether or not the products of Forestry Tasmania can be sold as FSC certified products or not.” Ms Reynolds said membership of the organisation gave the member a voice, along with all the others in the chamber, in policy matters. “It was determined by the membership committee and endorsed by the full FSC board that Forestry Tasmania demonstrated the requisite commitment to imbed FSC in its operations such that it met the very strict criteria governed by our constitution and membership rules,” she said. “Under FSC rules, Forestry Tasmania will be assessed by an accredited independent certification body against the FSC principles and criteria in exactly the same way as any other organisation seeking certification. If FSC certification is not obtained, the membership can be revoked.” Chairman Bob Annells said Forestry Tasmania wanted to
PAgE 2 | issuE 283 | 19.08.13
Improving our industry’s capacity to develop and maintain a skilled workforce ............................
Natalie Reynolds .. delighted with commitment.
Bob Annells .. best practice management.
be recognised and respected by stakeholders, customers, end users and the community for best practice management of Tasmania’s permanent timber production zone land identified by the Tasmanian Forest Agreement. “This requires the quality of our management and practices to be certified as conforming to national and international standards,” he said. “The need for dual international certification of both forest management and wood products also is driven by commercial requirements.” FSC certification for Forestry Tasmania is a durability requirement under the Tasmanian Forests Agreement.
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forestworks@forestworks.com.au
www.forestworks.com.au
ABN: 58 006 212 693
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industry news
$2.4m federal funding to help Forestworks training program TRAINING group ForestWorks will receive $2.4 million in federal funding to help retrain Tasmania’s forestry workers. Speaking at Wesley Vale in the state’s northwest, Employment Minister Brendan O’Connor said the funds were separate from the forest peace deal and it was not an election promise. “This is something that we have costed for under the economic statement; it’s something that we determined before we went into caretaker,” Mr O’Connor said. ForestWorks has almost 700 former forestry workers on its books. The funding comes on top of a $4 million grant it received last year. The Wesley Vale area has borne much of the brunt of the forestry downturn. When the town lost its paper mill in 2010, 250 jobs went
New kick-start for forestry workers .. additional federal funds for retraining.
with it. The wood panel business that remains at the site employed 35 people until October last year. Wood Panel Tasmania’s David loone is hoping to re-employ workers. “With the downturn that has
affected the whole industry across Australia, and affected all our competitors as well, we had to start reducing our numbers, and now we’re down to six,” he said. “We have guaranteed sales for a seven-day-a-week operation, and that’ll bring our compliment
of people back to 35 or more eventually.” While the funding is not tied to the forest peace deal, Tasmanian liberal senator and Opposition spokesman on forestry Richard Colbeck has accused federal labor of trying to sway Upper House MPs who will have the final say on the future of the peace deal legislation. “The labor Party and the Greens are trying to blackmail the Upper House into passing this really, really bad forestry bill,” Senator Colbeck said. “One that locks up 52% of the state; one that leaves the forest industry without a sustainable supply of timber for the future.” But Senator Colbeck said the Coalition would consider continuing the retraining program if it won government.
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2014 ISSUE 283 | 19.08.13 | PAGE 3
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wHAt’s On?
AUGUST
20: institute of Foresters south Australia division AGM. 7.30 pm at Emergency Services Centre, Jubilee Highway East, Mount Gambier. RSVP Adrian Lynch by August 16 for catering at alynch@hvp.com.au or Jim O’Hehir at o’hehir.jim@forestrysa.com.au 21: institute of Foresters of Australia ACt division AGM. 6-7.30 pm at IFA office and conference room, Yaralumla. RSVP Stuart Davey Stuart.Davey@daff. gov.au 24: (saturday): the Cat Goes Gold. Brisbane Hoo-Hoo Club 218 50th anniversary celebration. Fratelli Italian Ristorante, 103 Crosby Road, Albion, Brisbane. $79 p.p. for three-course meal and wines. $75 p.p. for tables of 10. Payments and bookings to PO Box 3236, Sunnybank South Qld 4109. Contact 0401 312 087 or 0428 745 455 for bookings. 28: institute of Foresters of Australia nsw division AGM. Members Bar Lounge, NSW Parliament House, 6 Macquarie Street, Sydney. RSVP August 14 to Ross Peacock rpeacock@iinet. net.au 28: institute of Foresters of Australia Victorian division. 6 pm at Bushfire CRC, Level 5, 340 Albert Street East Melbourne. RSVP: Michael Ryan mfryan18@ optusnet.com.au
SEPTEMBER 3-5: woodeXPO 13 – Albury, NSW. 6: institute of Foresters of Australia wA division AGM.
4.30 pm for 5 pm at The Lake Monger Room, The Boulevard Centre, 99 The Boulevard, Floreat. RSVP ifa.wa@anu.edu.au 11-13: woodeXPO 13, Rotorua, NZ. World leaders in wood processing, manufacturing and new product technologies will speak at the region’s first ‘business-tobusiness’ wood industry show. The new expo will provide local companies – management as well as production staff – exposure to new technologies that can improve their own efficiencies and productive capability. Leading technology providers from Europe, North America and Asia will join with each of the main equipment and product suppliers from New Zealand and Australia. Full details on the expo, summit and technology workshops are available on www.woodexpo2013.com 27: FsC Friday. A global celebration of the world’s forests highlighting the importance of responsible forest management. Every year, schools, businesses, individuals, forest owners/managers and other organisations around the world get involved in spreading the word about FSC and responsible forestry. Visit http://www.fscfriday. org/index.htm
OCtOBer 11: Forest and wood Products Australian AGM. In conjunction with meeting of the Australian Timber Importers Federation and an industry value chain seminar. An industry dinner is planned for Thursday evening, October 10. Information about the AGM and seminar will be circulated at a later
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eVents
date.Time: 8:30-10:30 am. Venue: Novotel Rockford Darling Harbour Hotel, Sydney. Inquiries to Ric Sinclair, FWPA (03) 9927 3200 or ric. sinclair@fwpa.com.au 11: Building stronger value chains – Australian timber industry seminar. Time: 10.30 am5 pm. Venue: Novotel Rockford Darling Harbour Hotel, Sydney. Joint hosts: Forest and Wood Products Australia (FWPA); the Australian Timber Importers Federation (ATIF) and Timber Merchants and Building Material Association (TABMA). This will be the industry’s ‘must-attend’ event for 2013. Inquiries to John Halkett, ATIF (02) 9356 3826; Colin Fitzpatrick, TABMA (02) 9277 3100 Ric Sinclair, FWPA (03) 9927 3200 or Eileen Newbury, Leading Edge Events International (03) 9597 0948. Seminar sponsorship inquiries to John Halkett. 11: Australian timber industry annual gala dinner and awards presentation. Time 7:30 pm onwards. Timber and Building Material Association (TABMA) Doltone House, Pyrmont, Sydney. Pre-dinner drinks 6:30 pm. Inquiries to Colin Fitzpatrick, TABMA (02) 9277 3100 or colin@ tabma.com.au
nOVeMBer 23: TABMA Queensland timber industry gala dinner. Moda Events Portside Level 2, Portside Wharf Hamilton. Contact Alicia on (07) 3254 3166 or alicia@tabma. com.au
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 283 | 19.08.13 | PAGE 5
industry news
17.2 million cub m by year 2016 $13.6bn upgrade of the Trans-Siberian Railroad From Page 1
industry will have increased output by 45% to17.2 million cub m by the year 2016. According to Viktor Ishayev, the Russian Minister for the Development of the Far East, everything is in place for the projected production ramp-up. This includes a $13.6 billion government upgrade of the Trans-Siberian Railroad – the iron artery that has brought freight and passengers across the country since it was first completed in 1916. Though a rail tunnel to America has been contemplated, Russia has a plan and funding to refurbish the railroad in three infrastructure projects, including the construction of a high-speed rail line from Moscow to Kazan in European Russia. The Trans-Siberian Railroad starts in Moscow and goes across the whole country, passing through major cities to Vladivostok, the largest Russian port on the Pacific Ocean, not far from Russia’s borders with China and North Korea. It is the main rail line in the eastern part of the country, capable of handling 120 million tonnes of freight a year. In a Moscow Times report,
PAgE 6 | issuE 283 | 19.08.13
Plenty more where this came from .. rail trolleys on the TransSiberian line loaded with logs wait at Manzhouli, near Siberia, China’s main gateway for wood.
Viktor Ishayev said wood processing in Russia was nothing more than sawing logs into boards, selling the end product, leaving the debris behind and moving on. “However, projects are gradually emerging to produce parquetry, veneer wood and medium density fireboards,” he said. “The government should support such projects if it wants to boost the development of the timber industry. Of course, we must also bring our customs regulations in line with World Trade Organisation requirements.
Viktor Ishayev .. economy itself must motivate producers to turn to wood processing.
“As long as selling unprocessed lumber remains more profitable than marketing value-added timber products, we will be unable to advance the processing industry however hard we try. Economy itself must motivate producers to turn to processing.” Mr Ishayev also says AsiaPacific demand for Russian timber is set to grow. “One should understand that Russian wood is of the northern type,” he explained. “It is used for outdoor applications, including housing construction. Southern types of wood are more susceptible to the effects of temperature fluctuations and high humidity. “This is why they are used in indoor outfitting. Nothing is going to replace Russian timber. We should remember this and act accordingly. However, rather than merely ramping up production, we should aim to make better profit with our current volumes.” Russia’s Far Eastern timber industry unites 1065 enterprises specialising in lumber harvesting, processing, logistics and marketing. The sector employs 39,800 people.
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industry news
AFs calls for independent directors Promoting sustainable forest management
AUSTRAlIAN Forestry Standard ltd is seeking nominations of, or applications from, suitably qualified independent directors to join the AFS board., AFS ltd is a not-for-profit company that owns and manages the Australian Forest Certification Scheme. Membership is open to all individuals and organisations who support the objects of the organisation. A standards development organisation accredited by Standards Australia, AFS ltd promotes sustainable forest management in Australia’s forests through the development and maintenance of the Australian standard AS4708 and the associated Australian standard for chain of custody of certified wood and forest products (AS4707). AFS ltd is a member of the international Program for the Endorsement of Forest Certification (PEFC), and the Australian Forest Certification Scheme has achieved international mutual recognition as an endorsed PEFC scheme.
AFS ltd promotes domestic and international markets for sustainably produced forest products through AFS and PEFC supply chain product labelling. The organisation is governed by a board of up to nine directors, six appointed by members and up to three independent directors (not members of AFS ltd or employees of members) appointed by the board. The chair is appointed from among the independent directors. The board meets three to five times a year, with
additional meetings of board committees – audit and risk, governance, marketing and communications – as required. Independent directors are
appointed according to their skills and experience to ensure the board collectively has the capacity to effectively advance AFS ltd’s objectives. The focus will be on the forest and wood products industry; environment and the community; and management and public policy. For further information or to submit a nomination or application contact the national secretary Richard Stanton on (02) 61222 9000 or email richardstanton@ forestrystandard.org.au
Wood Protection
Wood Expo 13 set for kick-off THE scene is now set – sawmilling, wood panels and timber manufacturing exhibitors from all over the world are descending on Australia and New Zealand in just three weeks. WoodEXPO 2013 is the first dedicated wood expo to be run in Australasia. The turnout for the series along with the many technology related events looks to be attracting all major wood products companies in the region. The first of the two-show series runs in Albury, NSW, from September 3 to 5 with the NZ leg of the series in Rotorua from September 11 to 13. Visit event website, www.woodexpo2013. com
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Contact the Australian Lonza team for full details of the Lonza value package. phone:1300 650 636 issue 283 | 19.08.13 | Page 7
industry news
Greg Moriarty
John Halkett
Lynne Featherstone
Karel De Gucht
Zulkifi Hasan
it’s all about sVLK in Jakarta
International stakeholders gather for dialogue on timber legality assurance By JiM BOwden
MORE than 250 business leaders, policy makers and government officials are in Jakarta this week for a high-level review of SVlK, the legality and verification program that, together with new trade legislation signed last year, aims to ensure only verified legal timber is exported from Indonesia. SVlK now covers almost half of Indonesia’s production forests and 650 companies. Gathering at the Sultan Hotel on August 21 are representatives of the Indonesian Exporters Association – host of the dialogue – ministries of trade, forestry, industry and finance and speakers from Australia, the UK, Europe, the US, Japan and China. Australian speakers include Greg Moriarty, Ambassador to Indonesia, Dean Merrilees, Minister-Counsellor (Agriculture) based in Jakarta, and John Halkett, technical manager, Australian Timber Importers Federation. Supporting the program are British MP lynne Featherstone, Secretary of State for International Development UK, and Karel De Gucht, the EU Trade Commissioner based in Belgium. Billed as the third High level Market Dialogue, proceedings
PAgE 8 | issuE 283 | 19.08.13
will be opened by Indonesia’s Forestry Minister H.E. Zulkifi Hasan. Mr Hasan said the dialogue was a timely opportunity to discuss how the new legislation and regulations would be applied and how these might boost Indonesia’s timber products exports putting the sector back on a growth track. In the last decade, the Indonesian forestry sector and timber industry have struggled to overcome illegal logging, with its associated cost to the industry and to the economy, as well as to the environment and the people living in and around the forest. Also, timber products manufactured from illegally sourced timber undermine the competitive position of the country’s timber sector in international markets, and contribute to depress timber prices worldwide. Yet Indonesia has also led tropical timber producing countries in its political commitment, international agreements, enforcement on the ground and development of practical instruments to
eliminate illegal timber from Indonesia. This has resulted in reports [including Chatham House) of a significant drop in levels of illegal logging in Indonesia. The SVlK and the associated V-legal licensing system have been designed in accordance with international standards and 17 companies began to use V-legal documents (FlEGT license) on timber consignments during a shipment test under the SVlK to six countries in Europe. The EU is one of Indonesia’s main export destinations for timber and operates under the EU Timber Regulation which contains specific recognition of timber produced under trade deals with producer countries known as a Voluntary Partnership Agreement (VPA). Indonesia and the EU believe the technical content of such an agreement, which comes into force later this year, will include specific recognition of the SVlK as ‘zero risk’ under the EUTR. Key questions to be asked at the Jakarta forum include • How will the due diligence
the dialogue is a timely opportunity to discuss how new legislation and regulations will be applied and how they might indonesia’s timber exports
requirements of the Australian Illegal logging Prohibition Act and the EU Timber Regulation work in practice? • How will Indonesia SVLK timber be ‘rated’ by importers from Australia, China, the EU, Japan and the US? • What are the implications for the Indonesian industry and policy-makers? • How can Indonesia capitalise on the growth opportunities emerging from all this hard work, especially for small and medium-sized enterprises and with respect to green buildings and climate change? ATIF’s John Halkett is attending the dialogue under the auspices of RAFT (Responsible Asian Forestry and Trade), a five-year program funded by the US Agency for International Development which is implementing public polices and corporate practices needed to improve forest management and bring transparency to the timber trade in Asia. Mr Halkett will touch on key issues for Australia: sensitive timber harvesting with legality an essential step and the importance of frugal and valueadded utilisation of tropical timber’s on-going development of glulam and other engineered wood products. • Certification drives export growth, Page 10.
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industry news
CLt stars in ABC national tV show THE EWPAA’s laboratory in Brisbane became an impromptu television studio last week when ABC-TV’s current affairs program landline decided its national audience should know more about engineered wood, and cross-laminated timber in particular. The program will start with the rejoinder that every once in a while a product or technology comes along which is a game changer – think the microwave oven, the iPod, e-book readers or the world wide web itself. Fronting the camera, EWPAA general manger Simon Dorries (pictured) said he believed new ClT technology would have a similarly revolutionary impact on the construction industry. Talking up what has been described as ‘jumbo ply’, he said it was a remarkable idea, a remarkable product and maybe one day Australia would have its own ClT manufacturing plant. ClT is made from solid wood planks bonded together into large panels and then sandwiched into three, five or seven layers with the inbetween layers running cross directionally. “It is stronger and more resistant than typical wood frame construction. You can’t
timber & Forestry e-news is the most authoritative and quickest deliverer of news and special features to the forest and forest products industries in Australia, new Zealand and the Asia-Pacific region. weekly distribution is over 7,000 copies, delivered every Monday. Advertising rates are the most competitive of any industry magazine in the region. timber&Forestry e-news hits your target market – every week, every Monday! HEAD OFFICE Custom Publishing Group unit 2- 3986 Pacific Highway Loganholme 4129 Qld, Australia
destroy a wall easily – it is really very, very resistant,” Mr Dorries told landline. Address all correspondence to “Buildings using ClT are PO Box 330, Hamilton Central, Qld 4007 quarter of the weight of the same building using concrete. Having less mass also means they will behave better during dennis@industrye-news.com ground disturbances such as earthquakes.” PUBLISHER Panning the laboratory, the dennis Macready camera picked up shelves dennis@industrye-news.com of tested engineered wood samples – structural plywood, lVl, formwork and I-beams. landline, with more than two million viewers, and many mAnAgIng EDITOR more watching on-line and Jim Bowden on iPod, has been ABC-TV’s Tel: +61 7 3266 1429 main vehicle for current affairs Mob: 0401 312 087 coverage of regional and rural cancon@bigpond.net.au issues and events since 1991. The multi-award winning show ADVERTISIng typically features stories, Tel: +61 7 3266 1429 ranging across agri-politics cancon@bigpond.net.au and economics, business and product innovation, animal and crop science, regional infrastructure, climate and weather trends, regional and rural services, music and lifestyle. Opinions expressed on timber & Forestry e news are not necessarily the opinions of the editor, publisher or staff. we do not accept responsibility The program airs on Sundays for any damage resulting from inaccuracies in editorial or advertising. at noon, Mondays at 11 am the Publisher is therefore indemnified against all actions, suits, claims and 6 pm on ABC 1, and on or damages resulting from content on this e news. Content cannot be reproduced without the prior consent of the Publisher- Custom Publishing Saturdays at 8 am and 2 pm on Group. the Australia network.
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issue 283 | 19.08.13 | Page 9
industry news
Certification drives export growth for indonesia’s forestry products
SVLK that has helped build market confidence INDONESIA’S forest product exports recorded a three-fold increase in the first half of this year, thanks to the timber legality certification (SVlK) that has helped build market confidence, according to the Forestry Ministry. Secretary-general Hadi Daryanto said the export of forest products in the first half of this year might had rivalled last year’s total annual exports. “The market is favouring Indonesia’s legally-certified timber now that the government had obliged exporters to verify their timber products before sending them abroad,” Mr Daryanto said. Data from the ministry shows that forestry exports reached $US1.53 billion by July, increasing more than three-fold compared to the same period last year. A Jakarta Post report says Indonesia booked $417.6 million in forestry exports last year, a slump of 40.27% compared to $699.07 million during the same period in 2011. Plywood represented 68.42% out of the total exports with $1.04 billion, followed by wood mouldings with $266.74 million, or 17.6% of the total figure. “Export is skyrocketing as
more buyers seek legal timber,” Mr Daryanto said. “Our country is ahead of others in providing traceable legal forestry products now that exporters are only allowed to market SVlK-certified timber. “The certification has helped pave the way for Indonesia to penetrate global markets where countries have started imposing an audit scheme for legal timber imports.” The US introduced the lacey Act in 2008 and the European Union introduced the EU Timber Regulation this year, followed by the Illegal logging Prohibition Bill in Australia. All of the laws ban the trade of illegally-sourced timber and wood products, with penalties for importers that fail to comply. Mr Daryanto said the negotiation over the schedule to sign the Voluntary Partnership Agreement (VPA) with the EU had progressed, with the EU offering a signing date in late September or early October. The SVlK was introduced in
due diligence must be conducted to ensure the timber is legal, with exceptions for products having secured VPA licenses, which will be considered by the EU to have been legally harvested.
Hadi Daryanto.. certification has paved the way for Indonesia to penetrate global markets.
2003 to fight illegal logging, which was running virtually unchecked nationwide. The SVlK has been mandatory for industrial forest concessions and industries since 2010, as it was expected to smooth the way to the European market that, since March, requires importers and sellers to keep records of the sources of their supplies. To comply with the regulation,
‘Certification has helped pave the way for indonesia to penetrate global markets where countries have started imposing an audit scheme for legal timber imports’ – Hadi daryanto
Indonesia was among the first countries to conclude the negotiation with the signing of a memorandum of understanding in 2011, but the signing of the VPA itself was delayed twice last year and has been deferred several times this year. The necessity for translation into 22 EU languages is said to be behind the postponement. “The EU told us that with or without the VPA, Indonesia has started seeing flourishing exports,” Mr Daryanto said. “But what we need is sustainability; we need to make sure that flourishing exports will not just be a momentarily occurrence.” Indonesia saw a 43.95% increase to 3.99 million cub m of timber exports in 2011 compared to 2.77 million cub m in 2010, before dropping 34.2% to 2.62 million cub m last year.
Abbott pledges to ‘open’ forests in tasmania OPPOSITION leader Tony Abbott said the Coalition remained committed to opening up the state’s forests by tearing up the Tasmanian Forest Agreement. He was speaking in Hobart last week at the release of the Coalition’s first stage of a $230 million grand plan to stimulate the state’s economy. The Coalition’s Economic
PAgE 10 | issuE 283 | 19.08.13
Growth Plan includes a greater federal presence in the state with a commitment to establish a one-stop shop for developers wanting to set up projects worth more than $50 million. A joint Commonwealth and Tasmanian economic council – including the Prime Minister, Treasurer and representatives of Tasmanian business and the state government – would
also be established under an Abbott-led government. Mr Abbott said he would unveil further details of the four-year economic plan closer to the election on September 7. Shadow Treasurer Joe Hockey said the package focused on investment and productive infrastructure to help grow the Tasmanian economy. “It’s very much focused on
cutting red tape and green tape and facilitating faster approval processes for major investment,” Mr Hockey said. Mr Abbott’s pledge to abandon the Tasmanian Forest Agreement was attacked by environmentalists who say it is a relic from the late 1990s and contrary to what the industry wants.
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enGineered wOOd
Housing drives recovery in us
Panels, I-joists, glulam and LVL lead the charge HOUSING is beginning to lead the economy in the US and is expected to provide an economic catalyst for years to come, according to the APAEngineered Wood Association, based in Tacoma, Washington state. Taking the reins of the association at an exciting time in the US recovery is 35-year APA veteran Ed Elias who was elected president-elect of the association this month. Mr Elias will replace Dennis Hardman who is retiring later this year after 32 years with APA, eight years as its president. Mr Elias has worked in APA’s technical, international marketing and financial divisions and is currently vice-president and corporate
secretary. APA expects good growth in wood production, including a 17% boost in I-joist manufacturing, expected as economy and housing continue to improve. The small but positive uptick in the economy and residential construction closed 2012 on an optimistic note for the first time since the recession began, and that slow-but-steady growth is expected to continue through 2013. With indicators pointing to rising housing starts through the year and into 2014, APA predicts a second straight year of growth in all four of the wood product sectors it represents. “last year saw across-theboard increases in structural panels, I-joists, glulam, and
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lVl. In 2013, not only will that trend continue, but at a slightly faster pace in most cases,” says Craig Adair, APA’s market research director.
pent-up demand for housing, moderately rising house prices, and growing consumer confidence having the most influence.” Mr Adair says most of the gains will come from housing, with raised-floor construction continuing to provide a notable boost. “Increased housing starts also will drive demand for lVl, the majority of which is used for beams, headers, and rimboard. lVl production should reach 54.9 million cub ft in 2013, a 10% growth over 2012,” he said. APA says the US residential market is gaining strength from a very low bottom, and interest rates are still low. While
“Residential construction will drive much of that growth, with
Cont Page 12
Ed Elias .. enjoying uplift in demand for engineered wood.
Don’t give traders who cut corners a licence to sell wood that threatens the lives and livelihood of our workers. Face the facts FACT: All EWPAA structural plywood and Type A bond exterior plywood have an emission class of E0 or E1 certified under a JAS-ANZ accredited system. FACT: All EWPAA products have a durability guarantee and all EWPAA members carry liability insurance. FACT: All EWPAA products can gain extra Green Star rating points – one for low formaldehyde emissions (E0 or E1) and one for super E0 in office fit out. FACT: Not all imported non-certified LVL and plywood
meet these requirements. In fact, laboratory tests show many imported non-certified products are continuously failing Australian standards for emissions and bonding strength and are life threatening. FACT: Manufacturers, agents and suppliers trading in inferior quality, unlabelled and non-compliant plywood and LVL risk damage to their business, media exposure and high penalties under Australian law.
Don’t risk it. Specify EWPAA products stamped with the approved certification. Engineered Wood Products Association of Australasia Plywood House, 3 Dunlop Street, 4006 Queensland Australia Tel: 61 7 3250 3700 Fax: 61 7 3252 4769. Email: inbox@ewp,asn,au Web: www.ewp.asn.au
issue 283 | 19.08.13 | Page 11
enGineered wOOd
renewed repair and remodelling energy attaches to rapid housing growth in US plywood is expected to reach
From Page 11
housing is not immune from potential tax increases and government spending cuts, momentum is favourable for a healthy increase in starts. APA is forecasting singlefamily housing starts to reach 665,000, a 24% gain, as homeowners take a positive view toward purchasing a home, the job market improves and home prices firm up in many cities. Multi-family starts are expected to improve 35% to 330,000 units. The remodelling market is also showing small signs of life, although the outlook is brighter into the second half of 2013 and in years following. The Harvard Joint Centre for Housing Studies predicts repair and remodelling expenditures to
30.5 billion sq ft feet in 2013, a 10% rise over 2012. Glulam is predicted to see a 10% increase over 2012, reaching 248 million board ft. Growth in the I-joist market is forecast around 17% in 2013 to 651 million linear feet, slightly slower than 2012’s 22% increase. Most of the gains will come from housing, with raised-floor Residential construction will drive much of the economic growth in the US.
construction
continuing
to
provide a notable boost.
reach 2007 levels, around $145 billion, a dramatic improvement over 2008-2012 levels.
this year, down from 4% in 2012, improving to a 5% growth in 2014.
Increased housing starts also
Overall, manufacturing is expected to grow about 2%
Domestic (US and Canada) production of OSB and
million cub ft in 2013, a 10%
will drive demand for lVl and production should reach 54.9 growth over 2012.
The Cat Goes Gold! Let’s all celebrate the 50th anniversary of Brisbane Hoo-Hoo Timber Industry Club 218 Saturday, August 24, 2013
Fratelli Restaurant
$79
pp include s 3-cou rse dinner & wine . Tables of 10 $75pp
103 Crosby Road, Albion, Brisbane (at entrance to Brothers Rugby Club)
Celebrations start at 6:29 pm with pre-dinner drinks and antipasto platters on the restaurant deck under the eucalypts, followed at 7.29 pm by a three-course dinner accompanied by wines, beers and soft drinks Prizes • Special Guest Speaker • A night also to honour club fo founders unders Dress: Smart casual • Plenty of parking space Accommodation options within 10 minutes of venue:
Brisbane Riverside Hotel, Cnr Kingsford Smih Drive and Hunt Street, Hamilton. Tel: (07) 3862 1800 Airport Ascot Motel, 550 Kingsford Smith Drive, Hamilton. Tel: (07) 3268 5266 Kingsford Smith Motel, 610 Kingsford Smith Drive, Hamilton. Tel: 3868 4444 Riverview Motel, Riverview Terrace, Hamilton. Tel: (07) 3268 4666
Contact: 0401 312 087 or 0428 745 455 for celebration dinner bookings. RSVP by August 16, 2013. Bookings and payments to PO Box 3236, Sunnybank South Qld 4109 PAGE 12 | ISSUE 283 | 19.08.13
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FOrest MAnAGeMent
demand for legal timber prime driver of tracking technologies
Strengthening forest governance in the tropics FORESTERS and forest planners have always needed to know the location of timber resources, including for planning forest management and harvesting operations, for monitoring wood flows to mills and ports, and for marketing of forest products. Various systems have been developed over the years to provide this type of information. In the tropics, these have until recently been mostly based on complex paper-based forms that were often prone to error and/or corrupt practices, thereby reducing their utility and often compounding the problems they were meant to solve. Over the past decade and a half there has been a boom in electronic and other sophisticated systems for tracking logs and finished wood products. This began with the adaptation of the type of barcodes used for inventory control of packaged items in supermarkets to forestry applications and has evolved to include radio frequency identification tags, sophisticated wireless communications technologies remote sensing, stable isotope analysis, DNA profiling and othertechniques. The prime driver behind this explosion in forestry tracking technologies has been the growing demand for demonstrably legal and sustainable forest products (as laid out, for example, in the new EU Timber Regulation, the US lacey Act and other importing market requirements). At the same time, forestry administrations in several tropical countries, including many producer member countries of the International Tropical Timber Organisation,
Exposed .. an employee of Swiss monitoring company SGS checks tree trunks in an effort to use cutting-edge tracking technology in Liberia’s timber industry.
have recognised that weak governance and other problems have resulted in significant production and trade of illegally produced timber, says an ITTO tropical forest update report. This illegal production puts legitimate timber businesses at a competitive disadvantage and can also mean big losses of resource rents and other
government revenues. ITTO has been a strong supporter of timber tracking as a means of strengthening forest governance in the tropics and thereby promoting sustainable forest management. Numerous projects have been funded, through the regular project cycle and more recently through the TFlET (Tropical Forest law
On track .. DNA testing of logs in Indonesia, a system helping to pinpoint the species and origin of the timber. Until recently, the battle against trade in illegal timber has been waged with regulations and preventive measures, and has not met with much success. Now it is increasingly focused on using the criminal justice system and law enforcement techniques.
timber-tracking technologies are also playing an increasing role in independent forest and chain-of-custody certification
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Enforcement, Governance and Trade) thematic program and the ITTO-CITES program. CITES, with substantial experience in tracking of animal species listed in its appendices, was keenly interested in collaborating with ITTO to promote the adoption of timber-tracking technologies in tropical countries with CITESlisted tree species. This resulted in the 2012 joint publication Tracking sustainability (ITTO Technical Series 40), a review of currently available electronic and semi-electronic timbertracking technologies. Timber-tracking technologies are also playing an increasing role in independent forest and chain-of-custody certification, Cost issues are of course a major concern for many countries and this is part of the reason why there has been an upsurge in requests for assistance to ITTO and other partners like FAO to help to fund the acquisition and implementation of such technologies. ITTO says it is important for countries to select appropriate technologies taking into account the sophistication of their forest sectors, geographical considerations, available budgets, major markets and other relevant factors It is also important to note that many of the evolving sophisticated (and more costly) technologies such as stable isotope analysis and DNA profiling) are designed to support and work in tandem with existing tracking and forest management systems to focus on particular problem areas (or species) rather than being implemented on a countrywide scale.
issue 283 | 19.08.13 | Page 13
eVents
Brisbane Timber Industry Hoo-Hoo Club 218 has entered the 2013 Variety Club of Queensland Bush Returning to Bash from August 5 to 14 to Hoo-Hoo Clubth21e action ..Brisbane Timbe 8’s ’7 r Industry for the 20 lden King 13 raise funds for disadvantaged from Em Queensland7 Ho swood is ready Variety Cl erald in ce ub Bush Ba ntral and Mount children, travelling in the Isa, to Mis Queensland, via W sh inton sion Beac Queensla nd. h in Far N clubs’ veteran Bush Bash orth performer – a 1977 Holden Kingswood. The Variety Bush Bash in the club’s major children’s charity event this year. Please support it and show how the forest and forest products industry can enrich the lives of underprivileged children. Your sponsorship will attract wide media coverage and is tax deductible.
Members of the Bri sbane Hoo-Hoo Club 218 Bush Bash team commit tee prepare for the Variety Club’s ‘Su Queensland n, Saddles & Surf’ Variety Bash starting in Emera ld in Blackall and Stoneh central Queensland , west to enge, up to Winton Boulia, up to Mo , across to unt Isa and further north to Normanto then across to the n, coast via Georgeto wn to Mission Beach and Mareeba in North Queensla nd.
We sincerely thank the following sponsors: Major Sponsors John Crooke, Queensland Sawmills HQ Plantations Advanced Timber Systems
Sponsors (to date) Forest and Wood Products Australia Australian Forest Products Association Engineered Wood Products Association of Australasia Austbrokers Premier Insurance Beyond Blue Tim Tech Chemicals Kop-Coat NZ Timber&Forestry enews
Frank Withey Alan Jones (Hoo-Hoo Club 218 president) Spiro Notaras (Notaras Bros, Grafton, NSW) John Gill (The Timberman) Thora Wholesale Timbers Noel Griffiths (Skyline Building Services) Nigel Turvey (Gro Group, NT) David Alcock (Asia Pacific Timber Marketing) Gerry Gardiner (iTreat Timber Pty Ltd) Tim Evans (Independent Verification Services) Tableland Timbers Paul Anderson (IMEMS Pty Ltd) Peter and Carolyn Mort Ron Bell
We made it .. Brisbane Hoo-Hoo Club 218 members Peter and Carolyn Mort and Tim Evans at the Bush Bash finishing line in Mareeba.
done and dusted! Hoo-Hoo car completes 3736 km Bush Bash run
DONE and dusted .. the Brisbane Hoo-Hoo Club 218 Holden Kingswood – dubbed the national forest industry’s ‘kids care car’ – has completed its Variety Club of Queensland Bush Bash run with the vehicle and all team members intact. Along with more than 400 other drivers, the Hoo-Hoo team crossed the finish line at Mission Beach in North Queensland on August 14 after travelling for 10 days and 3736 km over long dusty roads, along property fence lines, and through some dense forests. The Bush Bash, which started in Emerald in central Queensland, raised more than $1.2 million for Queensland’s special children. After officially opening the new Mareeba liberty Swing, Bashers set off on the last day of the ‘Sun, Saddles and Surf’ Variety
Bash. The scenery changed from the dirt and dust of the Outback to some nice forestry before the very first stop on the banks of lake Tinaroo. Bashers enjoyed the green grass and vast lake before heading out on the road again, in the direction of South Johnstone. Children from the local school welcomed the drivers into their playground with open arms, providing one last reminder just how friendly country hospitality can be. The Bashers then moved into the home stretch – their final 60 km on a 10-day journey that has travelled into the west of Queensland, up into the gulf region and back to the pristine coast. Congratulations Club 218 – and thanks for contributing to the heath, happiness and long life of bush kids.
For more information and to discuss sponsorship options contact one of the committee members: Alan Jones 0419 754 681 Don Towerton 0428 745 455 Tim Evans 0417 726 741 Jim Bowden 0401 312 087
Happy smiles .. children from South Johnstone state school in North Queensland crowd around Car 253, entered in the Variety Bush Bash by Brisbane Hoo-Hoo Club 218.
PAGE 14 | ISSUE 283 | 19.08.13
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young trees shows worst effects from Chernobyl nuclear disaster Environmental stress showing up in Scots pines EXPOSURE to radiation from the 1986 Chernobyl accident in Soviet Ukraine has had a lasting negative legacy on the area’s trees, a study has suggested. Researchers say the worst effects were recorded in the “first few years” but surviving trees were left vulnerable to environmental stress, such as drought. They added that young trees appeared to be particularly affected. Writing in the journal Trees, the team said it was the first study to look at the impact at a landscape scale. “Our field results were consistent with previous findings that were based on much smaller sample sizes,” explained co-author Tim Mousseau from the University of South Carolina, USA. “They are also consistent with the many reports of genetic impacts to these trees,” he told BBC News. “Many of the trees show highly abnormal growth forms reflecting the effects of mutations and cell death resulting from radiation exposure.” Prof. Mousseau, who has been carrying out field studies since 1999 within the 30 km exclusion zone around the site of the 1986 explosion, said it was the first time that a study of this scale – involving more than 100 Scots pines (Pinus sylvestris) at 12 sites – ha been conducted. “There was one similar study conducted before but it only looked at a total of nine trees and was mainly interested in wood structure, not growth,” he said. “Another study was performed in the 1950s but it was for a
Mousseau added. “The twisted stems of Scots pines have been attributed to mutations caused by radiation exposure. “Also, based on past work and our own observations, they appeared to be a good target for radioecology as they showed signs of being impacted by the fallout.
Aftermath .. a British scientist studies trees and wildlife in the Chernobyl exclusion zone.
different tree in the US and it used a single external gamma source suspended above the ground to show growth effects for a very limited number of trees.” For this study in the Chernobyl exclusion zone, the team took
core samples from Scots pine trees for a number of reasons – the species is found across Europe and well dispersed within the Chernobyl region. “They are also a favourite for silviculture and have enormous economic value,” Prof.
Scots pines’ tree rings were also easier to read than other species, such as birch, found in the study area, Prof. Mousseau explained. The professor and his team hope to follow up this study by carrying out similar work in the Fukushima region in Japan, where logging also had considerable economic importance and pine trees were widely dispersed. “Based on our limited field observations in the most contaminated regions of Fukushima prefecture, there did not appear to be a major die off as seen in Chernobyl for Scots pines,” he said.
Time-line .. the change in wood colour in these Scots pine logs indicates the year of the Chernobyl accident.
For the study in the Chernobyl exclusion zone, the team took core samples from scots pine trees for a number of reasons – the species is found across europe and is well dispersed within the Chernobyl region
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“In fact, one of the first ecological observations at Chernobyl was the death of the so-called red forest; a stand of these pines very quickly died and turned red following the disaster.”
“However, anecdotally, we have noticed significant die off of growing tips and branches in some areas that suggests that there could be impacts on growth. “This is worth investigation.”
further
ISSUE 283 | 19.08.13 | PAGE 15
internAtiOnAL FOCus
the chips are never down for China as imports keep rising CHINA has surpassed Japan to become the world’s largest importer of hardwood chips The Wood Resource Quarterly says major expansion of pulp manufacturing capacity in China in the past five years has resulted in a dramatic increase in the importation of woodchips to supply new pulp mills. Growing demand for paper in China has not only forced the country to import large volumes of pulp to supply the country’s paper machines, but also resulted in investments in new pulp production within China. Because of a lack of competitively priced wood fibre in China, the two pulp companies with the largest operations in the country – Asia Pacific Resources International and Asia Pulp and Paper – are procuring much of their wood fibre needs from out-of-country sources. As a consequence, importation of woodchips to China has surged the past few years.
Exports of eucalyptus and acacia woodchips from Vietnam have increased at a phenomenal in the past 10 years. In 2001, the country exported only 400,000 tonnes of woodchips while in 2011 a new record of 5.4 million tonnes was reached. Last year’s shipments were 36% higher than the previous years and tripled those in 2007.
In just five years, the import value for woodchips has increased from $US180 million in 2008 to $1.3 billion in 2012, and this year the estimated import value could be close to $1.5 billion, according to WRQ. It was only been a matter of time before China became the
largest importer of hardwood chips in the world. In the second quarter this year, China surpassed Japan with the record importation of almost 2.4 million cub m of chips. Although there were sporadic shipments of chips from latin America, Malaysia and South Africa during 2012 and
2013, there are really only four countries that have been supplying China with wood fibre the past few years – Australia, Indonesia, Thailand and Vietnam, with Vietnam accounting for over half of the total import volume. Another interesting development is that the average cost of imported wood chips has declined by almost 6%vfrom the 2Q/12 to the 2Q/13. Biggest price decline has been in Australian chips, which have fallen over 11% in one year. Because of this price drop, in the second quarter of this year Australia exported its highest quarterly volume to China since 2010. With the continued plans to expand domestic pulp manufacturing in China it, can be expected that shipments of woodchips, both softwood and hardwood, is going to increase in the coming years.
weyerhaeuser Co. tests market for sale of us home-building unit worth $3.9bn
PlANS by timber conglomerate Weyerhaeuser Co. to market its US home-building unit, valued at more than $3 billion, accelerated last week as prospective bidders submitted preliminary expressions of interest in a deal, according to industry observers. Most of America’s largest home builders are expected to explore a possible purchase of the unit, which was the 18th largest US builder last year with sales of roughly 2300 homes, according to Builder Magazine. The real plums within the Weyerhaeuser unit are its thousands of lots ready for home construction or close to it,
PAgE 16 | issuE 283 | 19.08.13
especially in California. Such lots are in scarce supply since land development slowed markedly during the recession. “It’s going to move the needle for most builders,” says Michael Kahn, a home-building consultant based in Palm Coast, Florida Bankers at Citigroup Inc. and Morgan Stanley are running the process for Weyerhaeuser. Weyerhaeuser, based in Federal Way, Washington state, for several years has pared its myriad business lines to focus on its timber business. The company announced in June that it was studying strategic options for its home-building
unit and may, after it tests the market, decide to keep it. As of June, the Weyerhaeuser unit controlled 27,000 home lots, including 17,500 in California, mostly in San Diego and los Angeles. Analysts at RBC Capital Markets estimate the value of the unit at $3 billion to $3.9 billion. “I don’t think they’d put this out without already having tested the water,” says Mark Wilde, a managing director at Deutsche Bank AG. “The one thing that most home builders have been scrambling around to get is lots, and this company has lots; it biggest
preponderance of lots is in one of the most attractive markets in the country, San Diego.” Home builders’ deal activity has heated up in recent months as smaller builders strapped for financing are opting for buyouts by larger, publicly traded rivals. Public builders have completed at least eight large acquisitions in the past 18 months for an estimated $1.5 billion. Weyerhaeuser first entered the home-building market in 1969 by building homes in southern California. Since then, it has assembled an operation that builds homes under five brands in seven states.
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HOusinG
Election campaign centres on strengthening housing sector TWO days after the Australian Bureau of Statistics announced a sixth consecutive rise in housing finance figures showing a strengthening recovery in the residential housing market, Master Builders Australia launched its Strong Building Strong Economy) campaign to call for election policies that will boost confidence, economic growth and jobs. The total number of dwelling commitments rose 2.7& in June, seasonally adjusted. The number of commitments for the construction of new dwellings rose 0.9% and commitments for the purchase of new dwellings rose 0.2% seasonally adjusted. Nationally, loans for the construction of dwellings and for the purchase of new dwellings combined rose 0.6% in the month, to be up 13.3%
Central role .. Australia’s $100 billion building and construction industry a bellwether for the health of the economy.
from June 2012. Encouragingly, housing finance commitments for owner occupiers in Queensland increased by a strong 4.4% seasonally adjusted for the month of June. Master Builders chief economist Peter Jones said the figures
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confirmed the impact of lower interest rates was starting to be felt in the housing market. “The strength of the $100 billion building and construction industry is a bellwether for the health of the Australian economy,” Master Builders CEO Wilhelm Harnisch said at
the launch of the strong building campaign last week. “In the election campaign, both major parties have acknowledged the central role the building and construction sector as the industry is expected to play in the transition to a post resources boom economy,” Mr Harnisch said. “We are ready to do the heavy lifting but need whichever party that wins government do its part by providing policies that are real road maps for reform and a commitment to see their implementation through.” Policy solutions in the campaign include housing affordability; investment in more vital community infrastructure; a fairer and simpler system tax system; and a return to a balanced industrial relations system.
ISSUE 283 | 19.08.13 | PAGE 17
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