FOREST TALK

Trade disruptions set to continue

NEW ZEALAND IS LIKELY TO FEEL THE IMPACT

of slowing global trade well into 2023 despite a strong initial recovery from the effects of COVID-19 in 2021, according to ASB’s latest Trade Disruption Report.

The report investigates the impact of international and domestic forces on supply chain and global trade, and forecasts what lies ahead for businesses and consumers for the remainder of 2022 and beyond.

ASB International Trade Consultant Paul Gestro says, “Six months ago, shipping and manufacturing interruptions, paired with growing consumer demand, created the perfect storm for major supply chain disruption. Now factors such as rising inflation, labour shortages and Russia’s invasion of Ukraine are adding to the COVID melting pot, crippling global supply chain growth.

“Global forecasts have been downgraded, and with New Zealand’s economy susceptible to international frictions, we can expect to see reduced demand for our exports coupled with shrinking demand for imported goods and lessened availability.”

Consumer price inflation is currently tracking at an annual rate of 7.3%, the highest in more than 30 years. Much of this rise is due to higher costs for imported consumer goods, having risen by 15% since late 2019, and this is expected to rise further.

Higher import prices are hitting businesses as well as consumers. Prices for imported intermediates (oil and other raw materials) are up close to 25% on pre-COVID levels and prices for imported capital goods, which have moved considerably to date, look likely to climb given the rising cost environment.

Export demand slow

Businesses and consumers in New Zealand and internationally, are facing increasing costs at a time when global growth is slowing. In 2021, the country’s key trading partners recorded 6.1% growth and this figure is expected to slow to just 3.5% in 2022 and 3.4% in 2023.

As the rising cost of living continues to bite consumers in New Zealand’s key export markets such as the United States, Europe and the United Kingdom, demand for the country’s high-end commodities like wine and seafood has taken a hit.

Meat and dairy exports remain the country’s strongest players, though exports for both are down on previous years. Labour constraints and bad weather have impacted export volumes.

Despite global forestry supply being hampered by the absence of Russian logs, New Zealand logging producers are facing turbulent times, says Mr Gestro. Around 87% of the country’s forestry exports are sent to China where a cooling property market is curtailing demand.

He adds, “At a national level, exporters are being plagued by rising input costs and widespread labour shortages which are being exacerbated by the Omicron outbreak and constraining outputs, therefore it’s unlikely export volumes will make a return to their 2020 peak until 2024.

Import demand plunges

With New Zealanders tightening their belts as the cost of living soars, demand for imported goods is set to slow as Kiwis reduce discretionary spending.

ASB Senior Economist Mark Smith says, “The early onset of the pandemic significantly changed spending patterns. With the borders closed and COVID restrictions set in, Kiwis while stuck at home splurged on imported consumer durables, including new cars. This spending is now tailing off as high inflation crimps household budgets.

“Higher costs, slowing demand and elevated uncertainty is impacting the business sector, with firms signalling they intend to cut back on investment, including imported capital equipment. This will weigh on economic activity this year and the cutbacks will not help in addressing widespread capacity constraints within the economy.”

Shipping disruptions continue

Shipping costs remain at historic highs but are beginning to cool somewhat, potentially bringing some reprieve.

With some main ports congested and facing skilled labour shortages, reliability continues to be one of the biggest issues impacting businesses, having worsened since the height of the pandemic in 2021.

Mr Smith says, “Being unable to rely on timely deliveries of stock is putting a strain on business cash flow as it becomes harder to stagger supplies.

“Despite falls of late, it is unlikely shipping costs will drop to pre-COVID levels. Smaller businesses could be more impacted as they’re less likely to have well-established trade relationships and are more sensitive to geographical exposure.” NZL

Investment law tightens

A LAW CHANGE TO ENSURE THAT FORESTRY

conversions by overseas investors “benefit New Zealand” has passed its final reading in Parliament.

Previously, overseas investors wishing to convert land, such as farm land, into forestry only needed to meet the “special forestry test”. This is a streamlined test, designed to encourage investment in production forestry.

Associate Finance Minister, David Parker, says the Overseas Investment (Forestry) Amendment Bill requires overseas investors to show their conversions will benefit New Zealand, by meeting the stricter “benefit to New Zealand test”.

“The existing rules did not give decisionmakers enough discretion to determine the appropriateness of investment in a forestry conversion and whether it benefits this country,” says Mr Parker.

He acknowledges rural communities’ concerns about the potential environmental, economic and social impacts of farm land conversions to forestry.

He also acknowledges the economic importance of the forestry sector: “I want to be very clear to the sector and to investors: production forestry is and will remain important, both to the regions and to support our climate change goals.”

“This Bill is not about stopping investment in the forestry sector. It ensures that any investment is beneficial to the country. Productive and sustainable investment is and remains welcome.”

The law change applies only to conversions and does not affect overseas investments in existing forestry land, which will continue to go through the special forestry test. Broader work is underway to investigate the impacts of forestry conversions more generally.

The Bill also includes minor and technical changes to improve the operation and effectiveness of the Overseas Investment Act’s forestry provisions. NZL

Forestry Transformation Plan a ‘game changer’

THE FOREST OWNERS ASSOCIATION (FOA) SAYS THE FORESTRY

and Wood Processing Industry Transformation Plan (ITP) has the potential to drive New Zealand’s biggest step yet to increase domestic value-add to forest products.

The FOA also says the ITP is a vital tool to combat climate change through materials substitution.

The ITP was launched in Christchurch last month by Forestry Minister, Stuart Nash.

The plan sets out ambitious targets for exporting more finished wooden products, increased wood construction in New Zealand and a huge transformation from oil and coal fuels, and materials, to instead using wood-based sources.

FOA President, Grant Dodson, says that while the ability of plantation forests to sequester carbon from the atmosphere is well known, the role of wooden buildings to continue to store that carbon is less appreciated: “Once we get into the full scale of modern engineered timber construction, the volume of long-term wood use in this country will increase markedly. Laminated Veneer Lumber and Cross Laminated Timber buildings can be made much bigger than wooden buildings previously. You can already see this technology at a number of our airport terminals, such as Nelson and Wellington.”

The ITP envisions an increase of added-value wood product exports to $3.1 billion a year.

International investment agency, Gresham House, predicts worldwide consumption of timber will rise from 2.2 billion mᵌ per year to 5.8 billion mᵌ a year by 2050, driven by the need to decrease concrete and steel construction.

Mr Dodson says there is at least as much potential in wood fibre as an energy source and for use in an emerging global bioeconomy: “Dairy companies throughout New Zealand are converting their milk powder driers to using wood chips or pellets as fast as they can. There is a risk though at the moment that we won’t be able to supply the wood from forests fast enough.

“These dairy conversions are driven by overseas market demand. Dairy customers in Europe in particular have made it clear that they will go elsewhere for their supplies if New Zealand continues to use carbonemitting coal in milk powder production.”

He says there is even greater and longer-term potential in using wood fibre as a raw material for producing items currently made from a range of plastics.

“There are two major downsides from plastics. They generally are very slow to break down in the environment, and they are also derived from fossil carbon which is best left in the ground. Wood is biodegradable and versatile,” he adds.

“The challenge now is to implement it. It’s great to have such a positive plan and we look forward to the next steps to attract the investment which is necessary to make the plan an economic and environmental reality.” NZL

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Red Stag and TimberLab collaborated on the just-completed Clearwater Quays luxury apartment development – an exemplar for sustainable, low-carbon, earthquake-resistant construction.

Merger to boost mass timber

SURGING INTEREST IN SUSTAINABLE CONSTRUCTION HAS SEEN

one of the country’s oldest mass timber businesses combine with one of the youngest. After 64 years under McIntosh family ownership, TimberLab Solutions has joined the Red Stag group following a share sale completed last month.

TimberLab has been the company behind many of the iconic largescale glulam and laminated veneer lumber projects in New Zealand’s history. The company also has a significant portfolio of international projects.

Recognising the need from external investment to develop and grow TimberLab, discussions were initiated with Red Stag in late 2021.

“The purchase of TimberLab was a logical fit,” says Red Stag Group CEO Marty Verry. “In many ways, it brought the missing pieces of a puzzle that Red Stag has been building over the last two decades.”

Red Stag runs the country’s largest sawmill, Cross Laminated Timber (CLT) factory and a frame and truss operation, while TimberLab brings mass timber glulam, LVL and CLT capacity and expertise.

While TimberLab has been operating in Auckland since 1958, Red Stag only opened its CLT factory in Rotorua last year.

“The merger allows Red Stag to get a jump-start on its growth path by combining two very capable teams and leveraging off TimberLab’s long history and institutional knowledge in the mass timber space.

“This is an exciting merger for the New Zealand building design and construction community,” adds Mr Verry.

“It means building designers and developers will be able to work with a single source for the entire building structure, and benefit from early supplier engagement to fully optimise the engineering of wooden structures to maximise advantages.

“This will make design and supply far simpler and more efficient than dealing with multiple suppliers.”

Mr Verry says the group is seeing strong uptake of mass timber, driven by the desire by government and private developers to address climate change and build sustainably.

“The property sector is starting to recognise the damage caused by high-emission building materials such as steel and concrete, and take a lead in doing something about it.”

There are also other considerations driving uptake, says Mr Verry. He points to the imminent Building for Climate Change regulation which will require buildings to measure and reduce their embodied carbon emissions. Embodied carbon from building materials makes up an estimated 10% of New Zealand’s emissions. He notes that steel prices having increased 58% in the last two years is also helping.

The name of the company will become ‘Red Stag TimberLab’. NZL

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Waka Kotahi’s Brett Aldridge presenting at the 2022 Trucking Industry Summit.

No silver bullet for transport

MORE THAN 360 TRANSPORT OPERATORS, INDUSTRY

representatives and Government officials descended on the newly opened Te Pae Convention Centre in Christchurch at the end of July for the 2022 Trucking Industry Summit to discuss the big issues facing the industry over the next few years.

Issues such as decarbonisation, deteriorating roads, under-investment in infrastructure, labour shortages, and increasing compliance costs were a focus, but there was recognition that finding solutions will not be a quick fix.

NZ Trucking Association (NZT) CEO David Boyce said, “The focus at the Summit was decarbonisation, infrastructure, and regulation – all of which need to work hand-in-hand to ensure the New Zealand economy can prosper now and in the future. Looming large is the fact that New Zealand has a target of a 35% emissions reduction by 2035, while at the same time the national freight task is set to increase 40% by 2052.”

Minister for Transport, Michael Wood, opened the Summit emphasising that Government and industry need to understand each other to work effectively to achieve common objectives. He confirmed that through the Government’s Low Emission Transport Fund, administered by the Energy Efficiency and Conservation Authority (EECA), operators have access to funding to support vehicle and technology projects, and public charging infrastructure. Following the success of the Clean Car Discount initiative, work is underway to identify incentives to support and drive change in heavy freight.

National Road Carriers (NRC) COO, James Smith said, “Industry and Government recognise the status quo is not working. Despite increased investment and funding, the roads are in a worsening state of disrepair – largely because the capacity to deliver the work is just not there. And this is being exacerbated by global issues such as inflation forcing the cost of everything up and significant labour shortages.

“There is no silver bullet to solving the degrading transport infrastructure across New Zealand. A collaborative public-private partnership approach is needed to solve these significant challenges, and NRC and NZT are here on behalf of the industry to help make that happen.”

On decarbonisation, Mr Boyce said, “Consensus from the Summit was that decarbonisation of the national heavy goods vehicle fleet will need to be a combination of EV, biofuels, and hydrogen. Barriers for adoption will need to be overcome through a range of incentives including Government funding support for early adopters and upgrading of the electricity and power infrastructure to facilitate the fast charging of heavy goods vehicles.

“Support needs to be given to New Zealand businesses investing and innovating in this space – not all will succeed but every venture will contribute to the solutions. There was widespread agreement at the Summit that industry and Government will work together to support the decarbonisation journey.”

NRC’s Transport and Logistics Advisory Group Chair, Simon Bridges commented, “One of the standout quotes from the Summit was from Waka Kotahi’s Brett Aldridge, who said ‘commercial transport must be successful for New Zealand to be successful’ closely followed by ‘the only way we will achieve the outcomes we need is by working closely together in partnership’. Powerful words that are 100% on the money.”

“The theme of collaboration remained with discussion around the regulatory ownership of solutions sitting with industry especially in terms of harm prevention programmes and compliance monitoring,” he said.

He also observed that while the challenges facing the industry are clear, the solutions are less so. “The industry must focus on the positives and opportunities – there is a heap of innovation happening in the trucking sector with EV and hydrogen trucks leading the way. Additionally, the industry must focus on partnering with Government and Government agencies.”

Mr Bridges had a word of warning to the industry. “Effectively if we don’t engage, collaborate, and partner, the change will happen without us and to us.” Mr Smith added, “It’s also time for individuals in the industry to do some heavy lifting, we are no longer in a passive environment, where you can just get carried along. NZL

‘Find Your Fit In Forestry’

“THERE IS AN ONGOING SHORTAGE OF SKILLED WORKERS across the sector, so we’re hoping that by targeting young people we can capture hearts and minds from the get-go and place people in roles that fit their interests,” says FICA CEO and Project Lead, Prue Younger of the new recruitment campaign, ‘Find Your Fit In Forestry’.

The campaign aims to draw attention to the varied career opportunities available in the forestry industry. A sector-wide initiative, it has just launched in an effort to attract more young people into the industry and fill worker shortages being felt throughout the sector.

Designed to demonstrate the huge range of roles and opportunities available in forestry, the mostly digital ‘Find Your Fit In Forestry’ campaign is primarily targeted at school leavers and young people.

Showcasing everything from machine operation, silviculture and harvest management to science-based roles and wood processing, the campaign attempts to match a candidate’s areas of interest with suitable jobs.

A range of videos have been created, featuring real people working in forestry. In addition, a digital platform prompts those interested to answer a quick-fire survey about their interests, before suggesting the areas of forestry that might fit them best.

Over the next six months the campaign will appear across media channels including the NZ Herald, Google and social media (Facebook and Newstalk ZB and ZM).

‘Find Your Fit In Forestry’ is funded by the Ministry of Primary Industries (MPI), Forest Industry Contractors Association (FICA) and Forest Owners Association (FOA) and actioned by the Forest and Wood Processing Workforce Council.

Ms Younger says the aim is to showcase the dynamic and diverse forestry industry and to attract more people into the many roles that are available.

“This campaign is unique in that it is a collaboration within the wider forestry industry. We’ve made it broad enough that we hope people will see that no matter what your skills or passion, there’s a place for everyone within the industry,” she says.

‘Find Your Fit In Forestry’ is live now. Visit www.forestrycareers.nz to see more. There is also a ‘Find your Fit in Forestry’ YouTube channel. NZL

New awards for Central North Island

NEW ZEALAND’S LARGEST FORESTRY

region celebrated its workers last month with the inaugural Central North Island Wood Council Awards. Just close on two years old, the Central North Island Wood Council is already making great headway.

MC, Pio Terei, kept the 450-strong crowd at the Energy Centre Rotorua formal dinner bubbling along as the heroes of the region were toasted for their professionalism, dedication and effort.

It’s the last region in the country to establish awards but sports a real point of difference with quite different categories, including forest engineering, best native forest enterprise and best farm forester. The Generation Programme, which creates a pathway and training for those keen to get into the industry, was also celebrated.

Fast Harvesting won four categories – the South Waikato Investment Fund Trustsponsored Silvicultural Excellence Award, the Taumata Plantations-sponsored Outstanding Health and Safety Management Award, the Timberlands-sponsored Female in Forestry, and the Competenz Trainee of the Year Award.

Taking out the First Security-sponsored Hero of the Year was Timberlands’ Leesa Haimona, with Fast Harvesting’s Lorraine Uatuku the runnerup. Those who know Leesa say her community involvement and promotion of the industry is exemplary. Her passion and knowledge of tikanga, her openness about anything health and safety-related, and understanding of systems and rules, is second-to-none.

Fast Harvesting’s Mereana Tobenhouse was honoured as the Female in Forestry Award winner. She started in logging as an apprentice in 2001, working in skid crosscutting and quality control. Since those early days, she has progressed into operating skidders, haulers and mechanised processing machines, with a keen focus on health and safety.

She runs a tight ship for Fast Harvesting as their Health and Safety Coordinator, general operational support, and fill-in processor operator and crew foreman. She represented the company on the Safetree Technical Advisory Group and is on the Central North Island Health and Safety Forum Committee.

Running alongside her busy career are her four children and sport. She’s a former New Zealand softball representative, has competed in the World Masters Games, and until recently coached junior level local teams. She’s described as one who is never afraid to roll up her sleeves, and as a shining light to other women in the forestry industry.

Te Waa Logging took out the Wildlandssponsored Best Native Forestry Enterprise Award. This is a company known to walk its talk. Led by Waa Owens, its focus is all about the community and ensuring the natural and cultural values of any whenua being restored, are understood, protected and respected. Their meticulous work ensures that only targeted species are controlled, with no damage to existing native flora and fauna. NZL

Fast Harvesting’s Mereana Tobenhouse was honoured as the Female in Forestry Award winner.

The Winners

Training Excellence, Generation Programme Graduate of the Year (sponsored by South Waikato District Council): Rawiri Te Hiko (Brown Logging). Excellence awards: Connor Wallace and Olive Williams. Trainee of the Year (sponsored by Competenz): Jayme Walker (Fast Harvesting). Skilled Professionals; Silvicultural Excellence (sponsored by South Waikato Investment Fund Trust): Glenn Fountaine (Fast Harvesting). Forest Protection and Services Excellence (sponsored by Scion): Evan Rarere (Timberlands). Harvesting Excellence (sponsored by Manulife Investment Management): Rob Davy (G White Logging). Distribution Excellence (sponsored by RFH): Jody Reti (Trimble Forestry). Log Processing Excellence (sponsored by AB Equipment/ Tigercat): Desmond Williams (Progressive Harvesting). Runner-up: David Hatcher (Fast Harvesting). Log Truck Driver Excellence (sponsored by Patchell): Raymond Bradshaw (Aztec FTD). Runner-up: Josh Fisher (Green Transport).

Forest Engineering Excellence (sponsored by Ontario Teachers/Manulife): Campbell and RJ (J Swap). Wood Processing Excellence (sponsored by Oji Paper Company): Heath McMurtrie (Donnelly Sawmillers). Outstanding Environmental Management (sponsored by Tiaki Plantations Company/Manulife): Crew 14 (Loggabull). Outstanding Health and Safety Management (sponsored by Taumata Plantations/Manulife): Fast and Evans Logging – Crew 26 (Fast Harvesting). Outstanding Regional Service Award (sponsored by PF Olsen): Ritz (Retina) Ellis (Ellis Forestry Training and Assessing). Female in Forestry Award (sponsored by Timberlands): Mereana Tobenhouse (Fast Harvesting). Runner-up: Sarah-Jane Luoni (Manulife Forest Management New Zealand). Best Farm Forester Award (sponsored by Rotorua NZ): Vivian Barr (Te Tiringa Farms). Best Native Forest Enterprise Award (sponsored by Wildlands): Waa Owens (Te Waa Logging). Hero of the Year Award (sponsored by First Security): Leesa Haimona (Timberlands). Runner-up: Lorraine Uatuku (Fast Harvesting).

NZ firefighters excel

ONE HUNDRED AND FIFTY FIRE AND EMERGENCY

New Zealand personnel and 145 members of the New Zealand Defence Force (NZDF) have been awarded the Australian National Emergency Medal, with Bushfires 19/20 Clasp, as part of a group of 384 New Zealanders who travelled to Australia to fight the massive bushfires over the 2019/20 summer.

The Australian National Emergency Medal is awarded by the Australian Government for sustained or significant service during national emergencies in Australia. It has a clasp for each event, to indicate which national emergency a person responded to. The medal has been awarded to Australians for five specific emergencies since 2009, the first being the 2009 Victorian Bushfires.

“The award of this medal is recognition of the efforts of all these personnel in an arduous and often dangerous environment,” says Minister for Internal Affairs, Jan Tinetti.

“Their outstanding contribution to fighting the massive and catastrophic fires that engulfed many thousands of hectares of bushland from late 2019 reflects the quality of our people and their training.

“Our Fire and Emergency team were accompanied by 89 others from longstanding partners that are so important to international and domestic wildfire deployments, including 27 personnel from the Department of Conservation and representatives of more than a dozen forestry companies. “As Minister responsible for Fire and Emergency New Zealand, I’m proud to acknowledge, alongside my colleague the Minister of Defence, Peeni Henare, this cohort of 384 as being the largest group of New Zealanders by far to receive the Australian National Emergency Medal.” This is the first time personnel from Fire and Emergency and the NZDF have been awarded the Australian National Emergency Medal, with the only previous occasion it has been awarded to New Zealanders being to nine New Zealand Police who assisted with victim identification in response to the 2009 Victorian bushfires. Minister Henare says the NZDF played a multifaceted role, with NZDF firefighters and other personnel, including combat engineers and health support, assisting Australian authorities and the Australian Defence Force during what became known as ‘Black Summer’. NZDF NH90 helicopters and crew were also deployed to assist.

“The work of our personnel varied from firefighting to transporting fuel and water and supplies such as hay for livestock, clearing routes, removing trees which were blocking roads, and creating critical fire breaks. Our personnel also contributed to the massive efforts to support wildlife that survived the fires,” he says. NZL

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Opportunities and challenges in carbon forestry

FOREST INDUSTRY LEADERS FROM ACROSS AUSTRALASIA JOINED

local and international carbon investors for the fourth Annual Carbon Forestry Conference held last month, hosted by Innovatek.

Over 320 industry leaders, forestry managers, professional foresters, policy drivers and sustainable investment professionals gathered to network and hear over 15 subject matter experts as speakers.

The timing was opportune, as Carbon forestry continues to be a highly sought after investment class alongside other climate change mitigation options like New Zealand units in the Emissions Trading Scheme. Carbon forestry is well-recognised as a new asset class which is key to mitigating climate change and providing diversified forest investment options.

The Innovatek team used feedback from last year’s delegates alongside key carbon forestry industry experts to bring a wide range of speakers with expertise and key insights into the many aspects of the carbon forestry sector.

Experienced forestry and associated investment leader, David Brand, CEO of New Forests Asset Management was the keynote speaker. The company he founded in Sydney in 2005 now manages about $AU9b of assets on behalf of institutional investor clients, including commercial forestry plantations, wood processing and infrastructure, agriculture and dozens of carbon offset projects.

Mr Brand outlined how forestry investment as an asset class is changing in the face of climate change as it provides both opportunities and the ability to diversify risks in the forestry investment sector. He outlined that increasing physical and policy risks are balanced by opportunities in carbon markets, bio-economy feedstock demand and landscape optimisation investment.

He explained how investment managers now need to deliver increased granularity in decision-making, using and increasing sophisticated analytical tools to create opportunities to manage complex option value for higher returns, much like the infrastructure sector.

Keith Woodford of Agrifoods Systems, outlined the challenges arising with the growth of carbon forestry so closely linked to rural communities and the use of marginal farmland. His agricultural and rural community insights and expertise were highly valued by delegates. Several other speakers focused their attention on the win-win aspects of farmers diversifying their assets with forestry on land-use class 6, 7 and 8 for generating income from rising carbon credit values.

Sean Weaver, CEO of Ekos Kāmahi and a founding member of the new “Climate Forestry Association”, spoke passionately about the best path forward for the private investment industry to take the lead in mitigating climate change with sustainable forest projects.

All speakers made clear indications that the business case for mixed ‘exotics-to-natives’ forest establishment is well on its way to attracting investors and delivering both short- and long-term benefits to rural communities and carbon investors alike.

Colin Jacobs, General Manager of Lewis Tucker & Co, outlined how their team is now focused on facilitating carbon forestry investment projects on farms where they work proactively with neighbouring farmers to ensure the right assets are devoted to the best future use, with land swaps allowing neighbours to buy the relatively flatter land of farms being purchased mainly for carbon forest establishment.

With the final word, leading carbon forestry investment manager, Matt Walsh, Managing Director of the New Zealand Carbon Farming Group used several case studies to demonstrate how carbon investments with practical business feeding from their establishment actually generate more local community employment than conventional large farms. The company has proven this in several regions and both their investors and the communities they have made investments into are reaping the benefits.

Each speaker session included a lively period of questions for expert speaker panels. These were followed by plenty of time for networking with the event format of two half days making up the full conference.

Other key speakers provided technical and expert insights into the intricacies of carbon trading, including He Waka Eke Noa recommendations, advice from the Climate Commission to Government and policy implementation from the team at Te Uru Rākau. NZL

Above: Keynote speaker, David Brand, CEO of New Forests Asset Management. Below: Ekos Kāmahi CEO, Sean Weaver.

Wood fuel supply market strong

Story: Brian Cox, Executive Officer, Bioenergy Association of New Zealand

THE RECORD ATTENDANCE AT RESIDUES2REVENUES 2022

reflected the growing recognition amongst forest owners and those involved in log harvesting and transport that the demand for alternatives to fossil fuels has the potential to transform the forestry sector. Biofuels, bioenergy and a range of renewable bioproducts are increasingly being added to the industry’s more traditional wood products. The economics of better-utilising forest residues, bin wood, offcuts left on landings, short length or malformed logs that won’t meet MDF, pulp-mill or chip export log specifications and sawmill residues are finally starting to stack up.

Low emissions energy to replace fossil fuels with electricity or solid biofuels is top of the Government’s agenda. Large industrial-scale heat and energy users throughout the country are firmly following the Government’s lead. The move to transition from fossil fuels is already well underway. Significant conversions have been made across the country with major announcements on new investments being made now almost every month.

With this burgeoning demand for biofuels, at a regional level, there’s considerable potential for forest owners and suppliers of wood residues to aggregate and coordinate the collection, transport and processing of woody biomass. For industrial heat users looking to convert from fossil fuels, they want to easily secure their new fuel supplies. But it has to be simple to specify, simple to order, the delivery of the fuel has to be easy, it has to be timely and the feedstock has to be of a known quantity and reliable quality.

This changing landscape means that forest owners, those involved in logging operations and those with surplus waste from sawmilling and wood manufacturing operations are looking at satisfying this current and projected future demand. Is the forestry sector in a position to supply? The answer from those attending the Residues to Revenues 2022 event was a resounding yes.

However, there was recognition that the current supply models are not ideally suited to meet market demand and production efficiency, nor in many cases do they deliver consumer confidence. Discussions at the event centred on changing the prevailing supply model to progressively drive scale and supply chain reliability. It was felt that growers, processors and, in some cases consumers, all needed to be part of the supply contract model and that greater volumes of wood biomass are needed to meet the current and projected future demand.

The event was able to showcase with practical case studies and commercial insights from those involved in biofuel harvesting, transport and delivery, just how the forestry and wood processing sector could best capitalise on this opportunity.

The conference also encouraged forest managers and contractors to consider collecting residues which are often wasted, and making them available to be processed into wood fuel. A number of presenters showed how collection of residues can be done efficiently and it is expected that there will now be greater volumes of biomass recovered from plantation forests, and made available to wood fuel suppliers.

The signs are that the wood fuel supply market is in good health and growing as demand for wood fuel increases. NZL

Grooved Drums and Sleeves

Mechanised planting key theme for ForestTECH 2022

FOR THE FIRST TIME IN THREE YEARS IN AUSTRALIA, AND TWO years in New Zealand, the ForestTECH communities will finally be able to attend the annual ForestTECH conference in person this November.

Starting in 2007, every year, over 300 forest resource managers, remote sensing, GIS and mapping specialists, inventory foresters and technology providers to this part of the industry from throughout Australasia (and more recently, North and South America, Europe and SE Asia) have met up for the annual ForestTECH conference.

For 15 years now, it’s been the one forest technology event every year that’s run in both New Zealand and Australia. For the last few years, foresters from 15-20 different countries have also been participating, albeit virtually.

Since 2020, the crossover between new data collection technologies for forest estate reporting and operational planning and precision forestry innovations around forest establishment, mechanised planting and tree crop management have meant that these two major themes have been combined into the one single event. The same split is being used this year, for ForestTECH 2022.

Virtual opportunities are still being set up for the growing number of international foresters, forest managers and tree establishment and silvicultural operators outside Australasia that are linking in each year.

Some key presentations scheduled for ForestTECH 2022 include: 1. Trial results and key lessons from 2022 commercial mechanised planting operations with pine and eucalypts in Australia. 2. Results from 2022 trials using hydrogels at the time of planting to extend the planting season. 3. Insights into how mechanised planting machines are being employed across steeper slopes in South America. After developing and improving the equipment in Brazilian conditions in eucalyptus forests, a fleet of mechanised planters are expected to be operational this year. 4. How GPS planting spades being used commercially this year have performed. 5. New Scandinavian mechanised planting systems being used in Sweden and North America. Opportunities in switching from the traditional excavator to forwarder base units. 6. Innovations in Global Navigation Satellite Systems (GNSS). Recent advances in satellite-based corrections to assist in field mapping, data capture and activity reporting. 7. Commercial use of hyperspectral imagery (SWIR and NIR) in Forestal Arauco Chilean forests and nursery operations.

Full details on the programme for ForestTECH 2022 can be now found on the event website: www.foresttech.events/ft22. NZL

Obituary

A forestry legend passes

ONE OF NEW ZEALAND’S TRUE FORESTRY LEGENDS HAS passed. JJK (Jim) Spiers passed away peacefully at the age of 99 on 10 August in Rotorua. He first began working for the Forest Service in 1941 and his interest in forest harvesting technologies led to his being part of the group which started the Logging Industry Research Association in the 1970’s (LIRA, and later LIRO). He was always passionate about learning and developing the New Zealand forestry industry and was a long-time member of the NZ Institute of Forestry.

Not only was Jim part of the group which started LIRA, but he served as Inaugural Director for a decade. His enthusiasm and vision created a research entity second to none, with combined industry and state support.

A man who deserves his place at the forefront of the history of our industry, he was honoured as the oldest former State Forest Service employee at a Centenary Dinner on 24 September 2019 at Parliament. At the function, New Zealand’s forestry heritage was well represented with former employees and their descendants among the 120 guests.

Father to Mike, Julie, Pete and Lisa, Jim made an indelible mark on the New Zealand Forestry industry. NZL Jim Spiers (aged 95 at the time) telling a tale from his new book, When Forestry Was Fun, to some 500 delegates at the Forest Industry Engineering Association (FIEA) HarvestTECH 2019 Conference, pictured here with FIEA Director, John Stulen.

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