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DECEMBER 2012 Issue 8, Vol. 21 • P: (03) 9888 4834 • F: (03) 9888 4840 • E: l.martin@ryanmediapl.com.au • www.timberbiz.com.au

Smart Fibre plant here for long haul

By Rosemary Ann Ogilvie

S

OME POSITIVE news brightened the bleak landscape of Tasmania’s forestry industry with the announcement early in October that Neville Smith Forest Products (NSFP) was to acquire the former Forest Enterprises Smart Fibre plant at Bell Bay. Idle for the past six months, the plant – which has port access – will process FSC- and AFS-certified plantation softwood and hardwood, drawn primarily from the State’s north-east, into chip for export and conversion into fibre for high-quality paper.

The purchase means the company is again fully operational in Tasmania, having now reacquired or leased 100% of the plant it previously owned, as the Smart Fibre plant was actually built by James in 2000 and sold to ITC Limited in 2004. In December 2011, NSFP purchased the hardwood processing plant located at Launceston’s Mowbray, which it had sold to ITC in 2004.

It subsequently passed to Gunns in 2009. This plant, which processes high-quality Tasmanian Oak products (mountain and alpine ash, and messmate) into appearancegrade products, occupies the same site where James’ grandfather, who founded Neville Smith Timber in 1924, started his Tasmanian oak value-adding business during

the 1940s. Neville Smith Timber became one of Australia’s most prominent hardwood processing businesses.

“So the operations we have now purchased are all ones we sold in 2004: the value-adding processing plant, and now the chip mill,” says NSFP chairman, James Neville Smith.

A strategically valuable asset The fundamental strategy behind the purchase is the huge amount of plantation estate in Tasmania that will soon need a destination.

“This piece of infrastructure is the only independent infrastructure currently not caught in a corporate collapse and able to be operated,” says James. “We see it as being a strategically valuable asset. So it’s just another progressive investment for a group that believes in the long-term sustainability of the Tasmanian forest industry.”

With the capacity to process around 350,000 tonnes of woodchip annually, the plant will be able to process waste from the company’s hardwood processing plant.

James is under no illusions about how tough the chip market is at the moment. “Suffice to say we’ve modelled our business on this fact, and we’re prepared to stay for the long haul,” he says. “At the time we sold the Smart Fibre plant, we had

very sound relationships in place, and these existing relationships need to be reignited. We’re progressively working on this now and will continue to do so over the next 6 to 12 months. Relationships in the woodchip business take a long time to develop, and just because we’re back in the game doesn’t mean we’re assured of success in the short term. But we believe through these relationships, along with our competitiveness and professionalism, we’ll get a degree of market share that will make us happy.”

Japan and China are the markets targeted for export.

Will the use of certified timber give NSFP an edge other vendors may not have had in the past? “In some markets it might give you a look in, whereas in others it won’t,”

Neville Smith responds. “In those markets it’s all about price, and right now chips – whether certified or not – are pretty uncompetitive with the Australian dollar sitting where it is, and with the growth in fibre output from other competing nations such as Vietnam and Thailand.

“So it’s not an easy exercise, but we believe the competitiveness of Australian exports will improve at some stage, and when it does we’ll be well placed to take advantage of the situation.”

Supply of raw material, on the Continued on page 4.

The whole world’s forestry fair

Yet another anti everything group flouts the law A self-proclaimed environmental group, little more than a month old with about 130 ‘likes’ on Facebook, is trying to derail the future of Tasmanian forestry.

Coalition Forestry spokesman Senator Richard Colbeck said it demonstrated the cruel hoax about claims of peace in the forests.

“The Anti Everything Non Government Organisations (AENGOs) are part of a complex network in Tasmania,” Senator Colbeck said.

“With the so-called peace talks in a precarious position, we see the emergence of a new group we know nothing about, with no political mandate, or credibility in the spectrum of the forest talks. This group’s spokeswoman Lisa Searle says she has no faith in the peace process.

“Make no mistake, this is part of a deliberate and co-ordinated process by the environmental movement nationally,” he warned.

Senator Colbeck said Greens and environmentalists

needed to get their house in order if they wanted legitimacy. “But don’t wait for that. These organisations are supported by significant privileges and are attacking our forest industry, fishing industry, mining and farming sectors.

“We’ve already seen one of the lead environmental forest negotiators Phill Pullinger also on the board of the Tarkine National Coalition – effectively having two seats at the table. Now we have Lisa Searle heading this new group. Last year she was the spokeswoman for ‘newly formed’ protest group, Code Green.

“These groups are playing a double-game, on one hand trying to take a legitimate seat at the table and on the other running this methodical, chaotic, disruptive strategy. The Greens and their AENGOs need conflict to justify their existence, why would they stop?

“It’s time to have their legal and financial privileges revoked. It is only fair they all play by the same rules.”

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Australian Forests & Timber News, December 2012 – 3

Victorian forestry industry looks to the future MORE THAN 240 representatives from the forest and wood products industry, Ggovernment, academia and media gathered at the Victorian Association of Forest Industries (VAFI) Annual Dinner at the Park Hyatt in Melbourne.

VAFI chief executive officer Lisa Marty said it had been a difficult year for the industry, with the strong dollar, cheap imports and a depressed housing sector.

“We have moved to a new type of operating environment that is high cost with strong import competition,” she said.

“We are also changing the way we build, which presents both challenges and opportunities.

“Despite these serious challenges, our members have continued to invest in their businesses this year, putting on average nearly $4 million each on the renewal on capital equipment.

“New equipment, such as finger jointing, sanding and lamination equipment was also installed at considerable cost, and investments were made in a number of renewable bioenergy projects.

“In addition, the largest sawn hardwood processing plant in Victoria was sold by Gunns Limited to Australian Sustainable Hardwoods, ensuring it has a strong future.

“Australian Paper also recently announced a $90 million investment in a recycled paper plant as part of its paper manufacturing plant at Maryvale in the Latrobe Valley, demonstrating a commitment to the future of its business, the local economy and environmental sustainability.

“VAFI is committed to building on these investments and encourages the industry to continue to adapt and innovate by leading a project to investigate Innovation and Investment Pathways in the

Victorian Hardwood Processing Industry.

“This project provides a framework for innovation by businesses and the industry based on an analysis of our wood availability, our market dynamics and our current industry structure.”

Marty said she believed the industry was well-placed to build a sustainable future.

“Our products are the environmental choice: they are renewable, store carbon and use less energy to produce than other materials,” she said.

“We manage our forests responsibly and we support an important local manufacturing sector.”

The Victorian forest and wood products industry generates $7.5 billion in sales and services income and directly employs 24,000 people.

The dinner was surprisingly upbeat; surprising in that, once again, it has been a difficult year for the industry but the mood in the room was positive. Minister Peter Walsh (the keynote speaker) spoke of the growing acceptance of forestry and forest products as a sustainable industry of high value to both the State and the country and the growing awareness of the positive role wood can play in the carbon economy. Referencing his threat last year to take off the table a proposal to move the VicForests corporate offices into the Yarra Ranges Council's area unless it started using Reflex paper after banning it as part of a Wilderness Society campaign against Australian Paper, he said the recent local council elections saw a change in the make-up of that council meaning the government might have to revisit its threat.

In keeping with this mood of positive change, Friends of Forestry was complimented by

 Minister Peter Walsh.

a few speakers for their role in providing a voice for the people in the industry who are choosing to speak out against the misinformation being spread by opponents of the industry and the dangerous and destructive tactics they employ in their quest for media coverage. Their decision to stand up and be counted was reflected in the theme of the November issue of Australian Forests & Timber News which saw the start of a campaign in support of AFPA’s carbon economy policies aimed at bringing messages of the positive part trees and wood-based products play in meeting atmospheric carbon reduction targets. National spokesperson for Friends of Forestry, Kersten Gentle, told of the increasing number of requests for information about Friends of Forestry, its activities and its membership.

The Minister announced that a bipartisan group was being formed called the Victorian Parliamentary friendship group. Convened

by Parliamentary Secretary for Forestry and Fisheries, Gary Blackwood, and former Minister for Agriculture and Member for Ripon, Joe Helper, the group will provide a forum for members of the state parliament to meet with representatives from industry to discuss issues of interest to their electorates.

See more VAFI annual dinner details page 11.

Looking forward to 2013 AS CHRISTMAS is nearly upon us and the new year is just over the horizon, it is that time of the year when we reflect on what has happened over the past 12 months and what we might expect or look forward to in the next.

This year has been extremely difficult for our industry as the constant threat to the supply of trees and logs, a high Australian dollar and international economic uncertainty have combined to make trading conditions some of the toughest we have ever seen.

But there is a light on the horizon and it is gathering in intensity; it is the torches being carried for our industry by a growing number of people around the country who have decided that enough is enough and the truth about the importance of forest products to this nation’s carbon abatement goals and its

economy must be shone into every politician’s office and every local newspaper and radio station around the country.

Instead of being saddened and angered by the bias and lies being told against our industry, the people in the regions and cities where honest work is done and the natural environment protected and enhanced as trees are sustainably harvested are deciding that truth should win and our voices must be heard.

Next year we will have federal elections and it is in this year that our collective voice must be raised so that no politician in any electorate can use the timber industry as a cheap means of scoring “green” votes and that every politician throughout the land understands that what we do is important and a vital part of

making Australia and the world a better place to live.

Enjoy Christmas with your family and rest and recuperate over the new year – we’ve got a lot of noise to make in 2013!

EDITORIAL

Policies, please ... not platitudes!

It’s time Australia took a leaf out of the Canadian book when it comes to forestry and wood products. Canada is a world leader in policy, planning and implementation to ensure the sector is the best in the business.

Its policy-makers in Government and also in the private sector recognise the importance of the industry to the economy.

In fact, Canada invests more than $100 million annually in research; research that moves away from what is regarded as the ‘norm’ in forestry products. Canada recognises that the future for forestry is an array of products right along the value chain, including Nano-Crystalline cellulose (biodegradable substitute for medical, pharmaceutical, automobiles, aircraft); Cross-Laminated Timber (lighter, less expensive, sustainable non-residential buildings); Rayon. Lignin and other products made from cellulose and, of course, biofuels.

Why, then, is it so difficult for Australia to grasp these fundamentals?

Australian Forests & Timber News, your voice for the industry, has long been a campaigner for the whole industry. A telling example was in the last edition when, along with editorial comment, the publication highlighted three full page messages urging all to join the battle for better Government policies. These messages are clear and decisive.

They fully endorse the Australian Forest Products Association’s (the nation’s umbrella organisation for the industry) eight-point roadmap for development of the industry over the next five years.

Which brings us to the crux of the matter ... 2013 is Federal election year. All candidates should be asked for clear and unambiguous statements on where they stand in relation to forestry; whether they see the industry as one of the mainstays of the economy; whether they believe research funding for the sector is adequate; whether they are committed to science-based decision-making on forestry (rather than ideological); whether they believe in a level playing field for a sustainable, environmentally sound and socially responsible future for forestry and wood industries in regional Australia, producing rather than importing products that local consumers demand.

The time for platitudes is over.

Practical, pertinent policies to ensure the future of the industry should be demanded rather than placating the minority who would willingly see its demise.

K-Clark congratulates Govt's Illegal Logging Prohibition Bill KIMBERLY-CLARK Australia has congratulated the Federal Government on achieving a major milestone for social responsibility in Australia by steering the Illegal Logging Prohibition Bill 2012 through both Houses of Parliament concluding with the Bill passing in the Senate on19 November.

“Government has clearly listened to and acted on the concerns of stakeholders, including industry, regarding effective control of illegally harvested timber product imports into Australia,” said Ross Hearne, General Manager Corporate Services for Kimberly-Clark.

“Lower cost illegally harvested timber product imports in Australia are the result of a lack of enforced governance in exporting countries.

The Australian community rightly expects that the products they buy, particularly those from Australian manufacturers, will meet responsible standards of operation and governance. This Bill will enforce a level playing field on less responsible companies,” said Hearne.

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4 – December 2012, Australian Forests & Timber News

ISSN 1444-5824

December 2012

A coiled strip annealing furnace ... it’s all part of a new beginning. Read more on page 36 Features Annual Events .................................. 11-12 Conference Coverage ..................... 15-22 Finance & Insurance ...................... 23-27 Plantation Forestry ......................... 28-31 Harvesting Heads ........................... 32-35 Cutting Edge .........................................36

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Probe into wellbeing of workers THE CENTRE for Research and Action in Public Health of the University of Canberra is studying how working in the forest, wood and paper products industries influences the health and wellbeing of the people employed in these industries.

Supporting the health and wellbeing of workers is critical for any industry, and the forest, wood and paper products industries are no exception. Considering worker wellbeing is important not only to ensure workers are healthy, but also because industries that provide a better environment for their workers often find it easier to recruit and retain workers.

However, little is known about how workers are affected by ongoing changes occurring in

many parts of the forest, wood and paper products industries, or how their wellbeing compares to that of people working in other industries.

This study will help identify the health and wellbeing of workers, and any pressures or issues that affect their wellbeing. The study was funded by the Cooperative Research Centre for Forestry.

Anyone working for a business that depends on the forest, wood or paper products industries is invited to participate by completing a survey. The survey is open to anyone employed in these businesses, ranging from forest managers, contractors to a business in the industry, harvest or haulage operators, and people working in a sawmill, pulpmill

or paper mill, through to business managers, book keepers and administrative workers.

The survey is open to workers located anywhere in Australia.

People working in Victoria, New South Wales and South Australia are also eligible to go into a prize draw to win a $1000 Flight Centre gift card or one of 6 other prizes (unfortunately we weren’t able to extend the prize draw beyond these areas). More information can be found online at the link provided.

The survey takes about 25 minutes to complete, and closes on 31 December 2012.

The results of the study will be published in 2013 as publicly available reports and in journal papers, and anyone who completes

the survey will be sent a summary of results if they tick the box provided on the survey.

If you have further questions about this project, contact the survey team (Dr Jacki Schirmer, Professor Helen Berry and Ms Melinda Mylek) at: Freecall: 1800 981 499 or Email: melinda.mylek@ canberra.edu.au

To complete the survey online, go to:

https://www.surveymonkey. com/s/FORESTSURVEY Not able to do the survey online?

Ring freecall number 1800 981 499 to be posted a survey form or complete the survey over the phone.

Thinking pink and thinking of others!

STRIKE ME pink ... It’s an old saying but it still has meaning – real meaning, none more so than when describing a recent function in Healesville that raised funds for the Cancer Council Fund prevention programs, support services and world-class breast and cervical cancer research.

More than 100 women of all ages wearing pink – from pyjamas to cocktail dresses – opted for the colour that has become synonymous with raising awareness of cancer.

It was the Girls Night In, a special event organised by the Friends of Forestry, and was attended by 127 women and raised more than $5000 for the extremely worthwhile cause.

“The night was a huge success with great music, great food and was well attended by awesome women all keen to support the cause,” said Jan Adams, Friends of Forestry Committee spokesperson and event coordinator.

“All the women had a wonderful evening networking and with goods donated for raffles, door prizes, food, drinks and auction

items from 44 Healesville and surrounding businesses this made the night memorable and fun, but most of all raised much needed funds for the Cancer Council,” said Jan. “Women heard first-hand from breast cancer survivor Helen McKean who talked about the disease and the amazing support received from friends and the wider Healesville community, pointing out that it was inspirational to see women coming together for such an important cause.”

“The Friends of Forestry Committee only decided four weeks prior to organize the event given everyone on the committee knows someone who has been touched by cancer,” said committee member Jacqui Commans.

“A special In Memory Of sheet was set up asking women on the evening to write down the names of women they know who have fought cancer, have survived cancer and unfortunately those who have been lost to cancer. This sheet is on display in the VicForests window in Healesville’s Main Street,” said Jacqui.

 Jan Adams and Helen McKean.

“The feedback has been overwhelming with everyone commenting on the amazing spirit of the evening. Friends of Forestry will continue to support this important cause in October 2013,” she said. “Thanks to all the sponsors, the Healesville Football Club, the young girls from Healesville High School

for cleaning, serving food and making cakes, but most of all to the 127 women for joining us at the Inaugural Friends of Forestry Girls Night In and helping raise more than $5000,” said Jan. “As the brave breast cancer survivor Helen said, we are lucky indeed to live in such an amazing caring community.”

Smart Fibre Plant here for the long haul Continued from page 1. other hand, should not be a problem. “We have multiple suppliers, but it’s really going to get down to the forest owner and what they desire: at what point they’re prepared to sell their trees as opposed to leaving them in the ground,” James comments.

Operations will commence immediately NSFP takes possession of the mill on December 1.

“We’ll be chipping logs and building up stock in anticipation of a shipment. In terms of the product, certain hygiene factors have to be checked in relation to the quality, the professionalism in the way the business is run, and of course certification. So it’s really about personal relationships, and the trust and the belief in one’s business strategy.”

Business as usual The chip operation will employ 15 people directly, and many more indirectly in the bush. “Our two key employees are the original employees we recruited to the business: Andrew

Wye and Danny Peat, excellent operators who have great relationships with the market and have a very good handle on the business.

Both are professionals and have a history of delivering and doing what they say they’ll do,” says James. “So it’s really business as usual: those guys are getting on with it.”

He comments that things are going well with the hardwood-processing business, which has now been operating for a year under the NSFP banner. “The market is very tough and we’re certainly finding the downturn in the building industry is making things a bit difficult. But we’re very happy with our production; we’re very happy with the quality of the product; and we’re happy with our distributors.”

Asked for his views on the future of the industry, James responds that no one really knows. “Obviously interest rate cuts will help.

However, I think unless the dollar comes back, Australia is in for a very tough time – and this relates to all businesses, not just ours. Australia finds it very difficult to compete when the dollar is north of 100 US cents. Even if it dropped back to 90cents, which historically would have been high, this would make a significant difference

to Australia’s competitiveness. I think Australia has learnt to become a lot more competitive with the higher dollar, but we can probably compete a lot easier if it came back to that level.”

As for industry reaction to the Smart Fibre deal, James believes everyone’s happy to have a familiar face back in the sector. “We’re slowly but surely starting to participate again in industry issues. We haven’t got to a national level yet, but we’re certainly active in Tasmania.

And I’m sure at some stage we will become more active on the national scene.”

Australian Forests & Timber News, December 2012 – 5

Cumberland Forest Fair a big hit with families M

ORE THAN 4000 visitors enjoyed a bustling day out among the towering eucalypts at the Cumberland Forest Fair last Sunday (14 October).

The biennial event is hosted by Forests NSW in Cumberland State Forest in West Pennant Hills - NSW‟s only metropolitan State forest.

Forests NSW Public Programs and Community Interaction manager, Morgan Roche, said the event was continuing to grow with visitors showing a keen interest in „all things forestry‟ from animals and timber to recreational activities taking place in State forests.

“Wood, of course, was one of the main attractions with a popular wood chopping demonstration giving information about timber and race techniques,” he said.

“In other areas of the forest, timber was turned, chiselled and sanded by the various woodworking groups showcasing their skills creating fine timber products.

“A demonstration of the high ropes course, which is planned as part of the forest‟s activities, also proved very popular with 154 families signing up to win free tickets to the opening of the course during 2013.”

Forests NSW‟s Visitor Centre kept visitors informed with information on sustainable forestry, the plantation timber journey and carbon storage in forests and timber products.

Mr Roche said there were lots of free activities for children.

“The children had great fun painting and decorating timber magnets and animals, entering the colouring-in competition, decorating cardboard houses and getting their faces painted,” he said.

“The new Forests NSW wildlife detective iPad adventure game also proved very popular with the youngsters.

“Families enjoyed the „Sensory Trail‟ bush walk, while keeping an eye out for treasures along the way using a „Forest Treasure Map‟ to find such things as rough bark from a blackbutt, gum nuts and spider webs.

“As well visitors had the opportunity to get a taste of the wide variety of recreational activities that take place in State forests including driving a mini 4x4 jeep, climbing a rock wall, rally slot car driving and orienteering.”

Visitors also enjoyed the award winning Simply Bushed band and were able to get close to some furry and scaly critters educated by Australian Walkabout Wildlife Park.

Other exhibitors on the day included the Rural Fire Service, SES and community groups such as the Cumberland Bird Observers and Cumberland Bushcare Volunteers.

Mr Roche thanked Forests NSW and NSW DPI staff and the Cumberland Bushcare Volunteers for helping make the event a great success.

Gottstein Forest Science Course SINCE 1978 the Gottstein Memorial Trust has been servicing industry training needs by running Wood Science Courses approximately every two years.

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

In February 2013, for the first time, the Gottstein Trust will offer a similar training course to assist in understanding the science of the growing side of the industry. This week long Forest Science Course, is based at Creswick, Victoria, home of the Victorian School of Forestry, and will cover all aspects of forestry including natural and planted forests, establishment, management, inventory, environmental issues and national and international market trends.

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

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

The course will also overview economic, social and environmental aspects of forestry.

Leading academics and industry personnel will be presenting different topics and after dinner addresses will be given by Ric Sinclair, MD FWPA and Hon Sid Sidebottom, MP, Parliamentary Secretary for Department of Agriculture, Fisheries and Forestry.

Past attendees at the Gottstein Wood Science Courses have indicated their satisfaction with the courses run and it is expected a similar level of satisfaction will be achieved with the Gottstein Forest Science Course.

Additional information may be obtained from Silvia Pongracic, mobile 0418 764 954, or email silvia.pongracic@csiro.au.

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6 – December 2012, Australian Forests & Timber News

Upcoming

timber events If you would like to promote a forthcoming event, please email details (including contact numbers, email, etc) to: editorial@forestsandtimber.com.au or phone 08 8369 9500

2012 26-27 November Bioenergy Australia 2012. Australia’s premier bioenergy conference, Bioenergy Australia 2012, Sebel and Citigate Albert Patrk, Melbourne. Technical tour 28 November. http://www.bioenergyaustralia.org

27 November AFCA Board of Directors Meeting and AGM, Melbourne.

28-29 November ForestTECH 2012, Melbourne. www. foresttechevents.com

29 November R&D Works seminar Hobart TAS. http:// www.fwpa.com.au/upcoming-events 4-5 December ForestTECH 2012, Rotorua. www.foresttechevents.com

2013 16-18 January 70th Annual Truck Loggers Association Convention. http://www.tla.ca/

18-22 February Gottstein Forest Science Course, Creswick, Victoria www.gottsteintrust. org or contact secretary@gottsteinstrust. org

21-23 February Oregon Logging Conference and Equipment Show - Oregon, USA. http:// www.oregonloggingconference.com/

21-23 March WoodEx for Africa 2013 Expo - Midrand, South Africa. www.woodexforafrica.com

7-10 April 6th International Woodfibre Resources & Trade Conference. Woodchips & Biomass for Global & Regional Markets. Istanbul, Turkey

10-11 April Residues-to-REVENUES 2013 Conference & Expo: Wood Energy and CleanTECH Industry Developments”. Crowne Plaza Hotel, Auckland, New Zealand. http://woodresiduesevents.com/

VicForests helps children climb to success T

HE VICTORIAN timber industry has again demonstrated its community spirit by donating Victorian Ash timber to a local outdoor activity centre.

Camp Marysville, owned and operated

by Outdoor Education Group, is due to be completed by February and will be open for youth groups, schools, churches and the general public to enjoy. Wood supplied by VicForests will be used to create the organisation’s first 20 metre high climbing tower.

“We’re aware of the issues surrounding timber harvesting and it’s been really good to work with VicForests and learn much more about the process, and how they harvest in a sustainable way,” said Tony Pammer, chief executive officer of Outdoor Education Group.

“Our organisation is very environmentally minded and therefore sourcing local wood was also enormously important to us. If VicForests had not donated the local Mountain Ash, we would have had to source different wood from

close to the Queensland/New South Wales border,” said Pammer.

The 19 and 20 metre logs, weighing approximately four tonne each, were hauled by Forestree Pty Ltd with assistance from Dindi Sawmill. The huge haul required a local police escort to guide the wood to its destination, making for a dramatic entrance.

“VicForests is happy to assist local communities in whatever way we can,” said Liz Langford, VicForests Regional Engagement Manager.

“The Mountain Ash timber supplied to Camp Marysville was has come from local, sustainable harvesting operations in the Toolangi State forest.

“The timber industry is an integral part of many parts of regional Victoria, providing jobs and supporting local economies. The donation to Camp Marysville is just one example of how VicForests and the wider timber industry supports and assists regional communities.

REPRESENTATIVES FROM forestry companies across Australia converrged on Mount Gambier when ForestrySA hosted its annual research field days.

Cutting edge LiDAR technology, mobile Geographic Information Systems, herbicides, fertilisers and workplace health and safety were featured during the two-day program.

Organiser, ForestrySA Research Coordinator Wayne Richardson, said results from a range of operational field trials were presented on the first day of the field days.

“We also demonstrated the latest advances in forest management technology, before hosting a site visit field day focussing on herbicide screening and operational trials specifically for APIHRC consortium members on the second day,” Richardson said.

The event was hosted by ForestrySA in conjunction with the Australian Plantation Industry Herbicide Research Consortium (APIHRC), Forest Wood Products Association (FWPA), Australian Forest Products Association (AFPA) and PIRSA (Agriculture, Food, Wine and Forestry).

ForestrySA research field days attendees listen to ForestrySA Coordinator Research Wayne Richardson’s presentation on the Australian Plantation Industry Herbicide

“On behalf of VicForests, I would like to thank Robin McKinnell from Forestree and Dindi Sawmill. We really appreciate his assistance and applaud him for his ongoing dedication to community involvement and support.

“As well as donating timber to various causes, we also have an annual Community Support Program that provides grants of up to $2000 to regional community groups and services who make successful applications for assistance.

VicForests also provides ongoing financial support to a number of regional groups and services,” she said.

Field day highlights exceptional work

Research Consortium 2010 herbicide screening trial (P. radiata), at Caroline Forest Reserve near Mount Gambier. Photograph courtesy of ForestrySA.

Here’s a story with a real footnote PUTTING YOUR best foot forward seems to be one of the traits of Barry and Jill Foster.

They’ve just released their specially handcrafted logging boot to the Australian industry.

“A couple of years ago, after many issues with the loggers about the logging boots we were currently stocking, we searched the world for the best boot company we could find,” says Barry.

“We then worked closely with them to produce a handcrafted boot that could tough out the conditions in the New Zealand bush and would last,” he said. “That’s how and why we went about stocking Wesco Boots.”

And, as Jill says ... “after a fantastic response in the New Zealand market we decided to extend this fabulous product to Australia”.

The Foster name is widely known throughout New Zealand after its meagre beginnings back in 1973.

Fosters Outdoor Power Equipment was first established as a husband and wife business. It started off with Barry servicing and repairing machines in an old caravan in the back yard.

Since then, it has progressed from a two-person business to a 13-person retail and servicing company. This includes three retail outlets: Christchurch, Northwood and Rangiora.

Barry and Jill's two sons, Darryn and Tim, are also greatly involved in the company with both holding the managers titles at Christchurch and Northwood branches, and Lewis keeps the Rangiora branch in check.

Fosters Outdoor Power Equipment has been in association with Stihl New Zealand for more than 30 years.

“We pride ourselves in our sales as well as service. With our purpose-built workshops we have a wide range of diagnostic and repair equipment. We supply, repair and service anything from chainsaws to ride on mowers,” said Barry.

8 – December 2012, Australian Forests & Timber News

Upcoming

timber events If you would like to promote a forthcoming event, please email details (including contact numbers, email, etc) to: editorial@forestsandtimber.com.au or phone 08 8375 9827

2013 15-16 April Residues-to-REVENUES 2013 Conference & Expo: Wood Energy and CleanTECH Industry Developments”.

Bayview Eden Hotel, Melbourne. http:// woodresiduesevents.com/

3-4 May Northeastern Forest Products Expo. http://www.nefpexpo.net/

17-18 May Northeastern Forest Products Equipment Expo. http://www.nefpexpo.net/

2-5 June Forest Operations in mountainous conditions (IUFRO conference) - Bergen, Norway. http://www.skogoglandskap. no/konferanse/forest_operations_in_ mountainous_conditions

5-8 June Elmia Wood - Jonkoping, Sweden. http:// www.elmia.se/en/wood/

29 June 2013 NZIF AGM and Conference, New Plymouth.

22 July FTMA Australia National Conference 2013. Gold Coast venue. More to be released soon.

3-5 September WoodEXPO, Albury

5-7 September 68th Annual Lake States Logging Congress. The Great Lakes Timber Professionals Association is a nonprofit organization that is committed to leading the Forest Products industry

National Workforce Development Fund A program that grows and continues to deliver for industry

A

RECORD number of industry enterprises are now making use of the National Workforce Development Fund (NWDF), managed via ForestWorks Industry Skills Council, to train their workforces.

The NWDF is the Federal Government’s training fund, administered by the Australia Workforce and Productivity Agency and managed by ForestWorks for the benefit of businesses in the forest, wood, paper and timber products industry.

The NWDF provides a funding contribution towards worker training across a range of qualifications, from Certificate II to Graduate Diploma, with the aim of assisting enterprises to develop their existing workforces and upskill in anticipation of future needs.

“At ForestWorks, we hear every day about how the NWDF has delivered rewards – financial and otherwise – to enterprises across our industry. However, we are aware that not everyone involved in our industry hears this story,” said ForestWorks chief executive officer Michael Hartman.

In the last financial year, 51 new forest and forest products enterprises have moved into the NWDF program, marking the continued growth and success of the program.

The NWDF program includes a range of options for enterprises: providing formal recognition of existing skills and knowledge through nationally recognised qualifications

up-skilling existing employees for emergent job roles in the enterprise and for progression in roles with greater responsibility (e.g. participating in the management structure of the business) up-skilling existing employees for new roles created as a result of identified needs (e.g.

Harvest Contract Coordinator) or new business operations (e.g. manufacture finger-jointed and laminated products).

Hartman explained that the NWDF program had delivered funding towards diverse training outcomes across the country.

“In Queensland requests have been predominantly for timber truss and frame design qualifications, while in Tasmania the demand has been largely for forestry-specific qualifications. In Victoria and Western Australia, the demand for training has included timber truss and frame design qualifications, as well as sawmilling and processing qualifications. In New South Wales, the demand has been across a wider range of industry and broad industry qualifications, including First Aid, OH&S and Mobile and Fixed Equipment Operator,” he said.

The NWDF program delivers a range of medium and long-term outcomes to enterprises across the industry. Training activity can assist in range of areas, from helping address skills shortages triggered by a restructure, to assisting with the retention of workers by empowering them

 Forestry Tasmania.

through career progression.

“Of course, outcomes will vary on a case-by-case basis. The industry has seen productivity, product quality and efficiency improve as a result of training through the NWDF. Beyond that, a learning culture within enterprises can be stimulated and we know this can be a key driver of innovation, which, in turn, is a key driver of productivity.

“The fact is that the NWDF is a terrific opportunity for enterprises to take advantage of, as those who have engaged with it already attest.

The NWDF, as administered by ForestWorks, is capable of assisting with the development of workers’ skills across the full spectrum of jobs in our industry – from the shop floor to management.

“Anyone involved in our industry knows it is under pressure from multiple angles. That’s why we need to share knowledge of the opportunities that exist – like NWDF funding – because they can make a huge difference in this climate.”

For further information visit www.forestworks.com.au/NWDF

 Dave Hughan.

Here’s what some people say about the NWDF: “I had been building up valuable experiences and knowledge – the fund was a formal way of being recognised for these skills. This qualification will allow me to now develop new higher level skills - I feel a sense of professional achievement.”

JAMES NEWMAN Forestry Tasmania – Derwent District, TAS

in sustainable forest management.

Members include loggers, truckers, sawmills, paper manufacturers, private and commercial forest landowners, forestry professionals and outdoor recreational enthusiasts. http://timberpa. com/

11-13 September 2013 WoodEXPO,Rotorua.

2014 5-11 October 2014 - XXIV World Forestry Congress - Salt Lake City, USA. www.iufro2014.com

“I haven’t worked in forestry for the past 10 years so this training helped me to refresh my knowledge and bring it up to date. This was particularly good in the area of safety.”

DAVE HUGHAN Machine operator/log loader and truck driver – Plantation Logging, Bunbury, WA “Completing the training gave our guys the opportunity to have their skills formally recognised.”

BREE VENTURONI Director – Retreev Timber Harvesting, Wodonga, VIC “The National Workforce Development Fund is helping our business to provide training that improves the skills of our employees and our business.”

MICHAEL BRILL Manager and Owner – Stronach Timber, Scottsdale, TAS

Australian Forests & Timber News, December 2012 – 9

Elmia Wood is seeking boundary – breaking problem solvers O

VER THE years many innovations have seen their first light of day at Elmia Wood. “For the 2013 fair (5-8 June) we are highlighting all the innovators who bring with them their own concepts, ideas and solutions,” says Torbjörn Johnsen of Elmia Wood.

“I’m convinced there are many as yet unknown pioneers out there, and they have an incredible amount to offer the industry,” he says.

Forestry is a creative industry and innovations of machinery and other products are a central part of Elmia Wood. But the big companies’ innovations are not always the ones that attract the most attention. Often the very best ideas originate in the minds of forest professionals. The people who are actively working in the forest are also those who best understand what functions in practice and which machines and products will make their job easier.

At Elmia Wood innovators can meet forest contractors and investors, and ideas can be united with existing technology.

“It’s rarely easy to market an early-stage concept but we have the ability to function as that channel,” says Johnsen.

“That’s why we’re eager for innovators to contact us here at Elmia and tell us about their ideas. Perhaps we can help turn those ideas into reality. They certainly don’t need to be completely thought through – what we’re looking for is people who dare to think differently and stretch the limits!” he said. [He can be contacted at torbjorn.johnsen@ elmia.se] Sweden’s Elmia Wood is the world's largest forestry fair.

It is constructed out in the forest every fourth year and welcomes visitors from around the world. Elmia Wood offers the forest industry lots of room to showcase itself and present new products and practical solutions.

Decision-making is slower process than tree growing THE PAUL family of Gunnedah Timbers can’t seem to take a trick!

Just prior to the last NSW elections they were given an undertaking that some national parks land would be taken back into State Forests which could the be managed for timber.

That was about 18 months ago and still nothing has happened.

George Paul maintains that the industry has been struggling in the region since 2005 when then Premier Bob Carr converted a massive area of State Forests into National Parks. His plight was highlighted in the Namoi Valley Independent in an article by editor Campbell Walker.

The Carr move has seen the closure of eight sawmills and forced hundreds of workers out of the industry.

“Our business has been struggling along ever since. We are working hard to keep things afloat, but slowly becoming increasingly unviable,” George told the Independent.

Then came a glimmer of hope … A Community Cabinet meeting in Tamworth was an opportunity for the Pauls to have talks with Environment Minister Robyn Parker. It was far from a simple

mater of face-to-face talks. “When we finally got to see Minister Parker, she told us it was a decision by the Minister for Primary Industries. It was a complete run-around.”

Now, the Paul family and the futures of 55 workers remain on the line and the Government still hasn’t finished “inquiries” about the industry.

AFTN sought clarity over the issue and a reply from Parker’s office was that the long term sustainability of the timber industry was important to the NSW economy and the Environment Minister Robyn Parker would continue to work with the NSW Primary Industries Minister, Katrina Hodgkinson, on possible resolutions to issues affecting the industry.

“The Environment Protection Authority (EPA) and Forests NSW undertook a site visit to the Brigalow and Nandewar Community Conservation Area with mill owners earlier this year where it was identified that a key issue for sawmills is the size of timber being provided and its marketability.

Discussions are continuing between Forests NSW and the mill owners

regarding options to increase the mills' competitiveness.

“When the Brigalow and Nandewar Community Conservation Area was established, a $43 million industry adjustment package was provided, including $19 million for compensation for people who wanted to leave the industry. On top of that, an additional $7.63 million was provided to 41 new and existing timber businesses in the area and almost half went to sawmills, Gunnedah receiving almost $250,000 and Baradine more than $200,000 to fund upgrades. The mills were also provided long term wood supply contracts.

“Ms Parker has met with Ministerial colleagues and Members of Parliament on the sustainability of the timber industry in the past and will continue to work to find possible ways to resolve these issues,” said the brief from Parker’s office.

Likewise, Primary Industries Minister Katrina Hodgkinson could offer no timelines or guarantees. In response to queries, Hodgkinson’s office said the Government had been aware of the Pauls’ difficulties for some time through its discussions with the Pauls and through representations on their behalf by a range of stakeholders, and also that the Government was proposing to engage the NSW Natural Resources Commission (NRC) to undertake a rapid Brigalow/Nandewar resource assessment to determine key issues of resource availability and sustainability.

Following is the question/answer dialogue with the Minister’s office: Q.1. Is there a timeline for any inquiry into this matter?

Answer: The timeline is on an ASAP basis - the NRC inquiry should be able to be completed reasonably quickly given it has a very targeted focus and a lot of the technical work has already

been done, for example in the 2002 Brigalow assessment reports.

Also, the inquiry will be facilitated by the involvement of Forests NSW, the Office of Environment and Heritage and Environment Protection Authority.

Q.2. What have been the delays in getting necessary legislation through to enable the expansion of the forestry areas.

Answer: Legislation in relation to this matter has not been under consideration at this stage since alternatives to a legislative remedy have not yet been exhausted.

Q.3. Is there any government assistance likely for those who will be affected by the constriction of forestry work.

Answer: The constriction of these businesses is definitely not the Government’s preference. Instead, it is looking at options to support the Brigalow mills as businesses with long term resource security and a viable, sustainable future.

State bid to shore up sawmills SOUTH-EAST sawmills in South Australia have been offered a $27 million expansion package after Carter Holt Harvey rejected the State's offer to help deal with high log costs. In August, the Government offered the cash to Carter Holt Harvey after it complained high log costs were threatening their business and up to 1000 jobs may be lost if it were forced to close its doors. The money will now be available for any South-East sawmill which meets conditions. Treasurer Jack Snelling said the $27 million was for capital investment in the State's timber industry aimed at "creating and securing jobs in the South-East now and into the future. CHH has not responded to AFTN’s requests for comment.

New VicForests Board members Therese Ryan, Rob de Fégely and Michael Humphris have been appointed to the VicForests board. They replace Bob Smith, Trevor Smith and Alison Posa.

Corporatization complete Minister for Primary Industries Katrina Hodgkinson welcomed the passage of the Forestry Bill 2012 as representing a new era for forestry in NSW iin corporatized form! “Corporatisation will install a commercially-focussed, skills-based Board as part of NSW Government reforms to an industry which has been virtually crippled by the ALP Government’s political objectives and electoral preference dealings.”

Hodgkinson said the governance structure under the new corporation will change, but not the nature of the business and its relationships with stakeholders. “Forestry Corporation of NSW will remain publicly owned and it will continue to manage NSW’s native and plantation forest estates for the Government and for the people of NSW, with due regard to the multiple uses of the forests, including their environmental and recreational values.”

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10 – December 2012, Australian Forests & Timber News

CELEBRATING 30 YEARS

Thirty years of commitment to the logging industry T

HE NAME Forest Centre has become synonymous with the forestry industry and it’s no wonder … it’s just racked up 30 years in business.

“That’s 30 years of commitment to the logging industry,” says Forest Centre principal Lex McLean, “our focus has been purely on the forestry industry.”

From meager beginnings Forest Centre is now regarded as the one stop forestry shop.

“We have a new and modern main base facility in Tumut, NSW, and a branch office and workshop in Bunbury, WA, with more than $2million invested in supporting parts.

“Forest centre started in 1982 with a full-time sales man a Swedish guy named Carl Eric Mortennson,” Lex recalls.

“We imported refurbished Kockums Forwarders, 880 rubber tyred Feller Bunches which we fitted Skogan GP940 single grip processing heads to and Kockums Logma stroke delimbers. We also imported Tanguay shear blade felling heads and Koehring Logma booms and converted excavator bases - mostly Caterpillar 219 and 325 - and sold or put into service as

 L ex McLean, Kim McLean, Kathy McLean, Wendy Christian, Damien Ambrose, Jacky Krause, Rey Kell, Lorri Neyland, Ray Bocquet, Phil Turnbull. The little bundle of fluff is Rosie.

forestry machines.

“These units were sold to various logging contractors. In addition in 1982 we also imported and sold Hultdins grapples, Indexator rotators. In 1992 we introduced the ExTe product to the industry,” he said.

“Then, in 1999 we introduced the Tigercat products after having

first seen them working in Quebec at Demo 1996 and having followed their progress before being appointed as the Australian agent.

We have now introduced 220 Tigercats to the Australian logger,” he says proudly.

Forest Centre’s current product lines are Tigercat, ExTe, Hultdins, Baltrotor, Rotobec, and Morris Oils.

And there’s something else Lex is quite proud of … “Our current staff have accumulated over 108 years in the forest industry and have contributed and supported the industry with their specialized forestry knowledge, technical expertise and experience,” he says.

 F orest Centre principal Lex McLean.

Indication that business is on the cusp of a major revival Indication that business is on the cusp of a major revival LEX MCLEAN, principal of Forest Centre, the Tumut-based Tigercat dealer, was high in praise of DEMO International 2012 held in the forests of Quebec. A total of 8,578 visitors made their way around the approximately 2.6km long loop to take in demonstrations and to see the latest products, services and equipment available to the forestry industry.

DEMO International 2012 was presented by the Canadian Woodlands Forum and was hosted

by Gestion Solifor on its property, La Seigneurie de Perthuis, 75km from Quebec City.

According to the organizers, the enthusiasm from the nearly 100 exhibitors and thousands of visitors

alike was a sure indication that this business is surely on the cusp of a major revival.

The Canadian Woodlands Forum is now actively planning for DEMO International 2016.

Lex explained that Tigercat was in full force at Demo International 2012 featuring a full complement of machines including feller bunchers, harvesters, skidders, forwarders, the 480 mulcher and the 880 logger, and debuted its new 615C six-wheel drive skidder.

Tigercat employees interacted with customers and Tigercat dealer personnel from across Canada, the north-eastern US, Australia, New Zealand, South Africa, Russia, Chile, Brazil, Ecuador, French Guiana and Scotland.

Lex said the live demonstrations

consisted of two separate applications, a softwood clear fell and a hardwood partial cut.

On the softwood side, the felling was accomplished with a Tigercat H845C harvester equipped with a Logmax 7000XT head and forwarded to roadside with the 20-tonne capacity 1075B forwarder.

On the hardwood side, an 822C equipped with Tigercat's new FC5185 bar saw felled. A 630D skidder pulled to roadside where the wood was processed with an H855C harvester equipped with Tigercat's TH575 harvesting head.

Tigercat also pulled full tree hardwood to a CBI flail/chipper that was equipped with the Tigercat 215 loader.

Of the static machines, the big 880 logger and 480 mulcher received a lot of attention but all eyes were on the prototype 615C six-wheel drive skidder.

“With the 615C, contractors can

now have all the advantages of a six-wheel drive skidder – excellent traction, high performance in steep and soft terrain and a smoother ride – in a compact package with a lower purchase price,” said Lex. The new FC5185 fixed wrist Bar

“It’s easily serviced with quick bar and chain changes, as excellent performance in selective felling and shovel logging applications and has a spring-mounted saw unit to resist bent bars,” he said.

Lex said the new 480 Mulcher,

With the 615C, contractors can now have all the advantages of a six-wheel drive skidder Saw can be equipped on both driveto-tree and track feller bunchers.

“The FC5185 for track carriers is very versatile. It can fell, top, delimb and shovel heavy, oversized trees and is a great asset when felling and handling high value hardwood.

It features heavy-duty reinforced chassis and arms, a grapple-type arm design for maximum control, and superior control for high value trees.

equipped with a Cummins QSX15 Tier III 370 kW (500 hp) engine, was the latest offering in Tigercat's line of land clearing and vegetation management equipment.

“The 480 is a high production machine best suited to tough terrain, sensitive site applications and large scale land clearing and right of way (ROW) projects.

“Some of its standout features include low ground pressure, efficient, high capacity cooling system with variable pitch fan and automatic reversing cycle, electronic joystick steering, counter-rotate function (CRF) for 'on a dime' at the touch of a button, dedicated attachment pump, a highly refined closed loop track drive system, and highlift boom geometry for improved performance on sloped terrain.

“It also boasts a heavy duty steel engine enclosure, exhaust and pre-cleaner guard. No need for a visibility impairing canopy,” said Lex.

Australian Forests & Timber News, December 2012 – 11

ANNUAL EVENTS

Awards highlight achievements O

NE OF the highlights of the VAFI annual dinner was the award of the VAFI Lifetime Achievement Award to Ewan Waller for his many years of service to the forest and wood products industry and to fire management in Victoria. Ewan, a former Department of Sustainability and Environment (DSE) Chief Fire Officer, received the award after 35 years of service to Victoria in forest, land and fire management roles. Ewan worked as a forester from 1977 to 1983, and then, after 21 years working in other aspects of land management and for the Gippsland Ports Committee of Management, he returned to the industry as Regional Manager, East Gippsland, for VicForests.

Other award winners on the night were: Innovation Award - Arbuthnot Sawmills Environmental Sustainability Award Montana Timber and South East Fibre Exports Occupational Health and Safety Award Australian Paper Community Engagement Award Australian Paper and Ryan & McNulty Sawmillers Skills and Training Award - Ryan & McNulty Sawmillers

1

The 2012 Victorian Association of Forest Industries (VAFI) Sustainability Awards recognised Eden-based South East Fibre Exports (SEFE) for its environmental achievements.

VAFI CEO Lisa Marty said that in the past year SEFE had systematically undertaken a number of projects to improve resource efficiencies, limit environmental impacts and support renewable energy.

These initiatives included a pellet plant that converted mill processing waste into wood heater pellets, an energy audit that identified a range of power saving measures, planning for a wind farm project and a bioenergy proposal that would generate renewable energy from mill waste.

Marty said energy costs and the threat of climate change were significant issues facing Australia, and forest and wood products industry businesses such as SEFE were well positioned to take a leading role in developing renewable energy projects.

Arbuthnot Sawmills, the last remaining mill along the Murray River using high quality Red Gum sawlogs harvested from State forests, was awarded the Innovation

2

AFS’ year of consolidation COLIN FITZPATRICK, Erica Hansen and David West were appointed Directors representing the Forest and Wood Products Sector Members and Alison Carmichael was appointed as a Director representing the General Members at the Australian Forestry Standard Ltd annual general meeting.

Thanks were recorded for the work of retiring Directors Ian Tyson, Malcolm Tonkin, Jodie Mason and Wayne Hammond.

The meeting also agreed to amend the AFS Ltd Constitution to revise the current membership structure by creating five  Richard Stanton. membership categories: 1. Forest Grower Members, persons substantively engaged in the primary production of forest products 2. Primary Processors Members, persons substantively engaged in the primary processing of forest primary produce 3. Supply Chain Members, persons substantively engaged in the secondary processing of forest primary produce or in any subsequent part of the supply chain of wood and paper products 4. Employee Representative Organisations Members, persons representing the interests of workers in the forestry and forest products industry; and 5. Community, Social and Environment Members, being persons representing the interests of the community at large with respect to forestry and the forest products industry.

Under transitional arrangements the current Board will continue until the AGM in 2013 when each membership category will nominate one Director for the Board, except for Forest Growers who will nominate two. There is also provision for the appointment of up to three independent directors. The new categories more appropriately represent the nature and interests of AFS Ltd members. Membership is open to any individual or organisation that supports the Objects of the Company.

National Secretary Richard Stanton presented a brief overview of a year of consolidation for AFS.

 The team from Arbuthnot Sawmills with Minister Walsh.

Award. Presented by the Victorian Minister for Agriculture and Food Security, Peter Walsh, the award recognised the $1 million investment the Koondrook-based mill had made in new equipment to improve the efficiency of its operations, making more Red Gum products available to builders and home owners.

Marty said the award highlighted the efforts Arbuthnot had made to efficiently use as much of the sought-after Red Gum timber available as possible for high value applications.

“These investments will maximise the amount of timber going into higher value

3

applications, such as finger jointed laminated bench tops, decking and flooring, and engineered finger jointed laminated verandah posts,” she said.

1. Bob Humphreys and Ewan Waller.

2. George Kasikovic, Montana, and Minister Walsh.

3. Peter Mitchell, SEFE, and Minister Walsh.

4. Jim Henneberry, Australian Paper, and Minister Walsh.

5. Greg McNulty, Ryan & McNulty Sawmillers, and Minister Walsh.

4

5

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12 – December 2012, Australian Forests & Timber News

ANNUAL EVENTS

Forest growing is important to the local and national economies T

HE 2012 Forest and Wood Products Australia annual general meeting saw the return of two directors as well as the appointment of John McNamara, managing director of DTM Timbers, to the FWPA Board.

McNamara has more 30 years’ experience in the forest and forest products industry and enjoys a high industry profile. Until recently he was managing director of Hyne and Sons, a role he held for 18 years. He is currently managing director and a significant shareholder in DTM Timber, a company that specialises in native forest management and harvesting, sawmilling, value adding processing and distribution, and roof truss and wall frame manufacture and distribution.

At this year’s AGM, Mark Grey and Nick Roberts completed their terms as directors of FWPA. The Board Chairman, Ron Adams, formally thanked both for their valuable contributions to the Board. He also welcomed John McNamara to the Board and noted that Mr McNamara had significant experience in both the hardwood and softwood sectors.

The three directors elected at the AGM are: • Evan Rolley was re-elected for a second term • John Simon was elected by FWPA members after filling a casual vacancy as FWPA director from July 2012 • John McNamara was elected as a new director.

Adams was re-elected as Chairman at the

Board meeting that followed the AGM and John Simon was elected deputy Chairman.

In his Chairman’s address, Adams spoke about the current economic issues facing the industry and the decision by the Board to not go forward on a levy poll for the manufacturing sector. Following the Industry Forum and subsequent one-on-one discussions between the FWPA Chairman and major levy payers, the Board made the decision not to go forward on a levy poll for the manufacturing sector. However, discussions with the forest growers regarding a levy increase are still ongoing. Given these circumstances and FWPA’s lower operating budget, the company has taken a number of cost saving measures. These include reducing the number of directors to the Board by one, a reduction in permanent staff numbers and moving publications such as the annual report to an online format. It also sees a winding back of funding and effort in the Growing Careers and Tech Transfer programs. The industry promotion strategy remains a priority.

In line with FWPA’s practice of aligning its AGM with relevant industry events, the meeting was held during the 2012 Australian Forest Growers Conference in Gympie, Queensland. FWPA was the principal sponsor of the successful conference that featured a keynote address by Peter deMarsh, Chair of International Family Forestry Alliance.

Sid Sidebottom, MP, Parliamentary

Secretary for Agriculture, Fisheries and Forestry, was a notable participant in the conference. He was a featured speaker at the conference dinner where he highlighted the ongoing importance of the forest industry in Australia, particularly in the farm forestry sector in relation to sustainability. FWPA was also honoured to have him attend the AGM and subsequent FWPA research project presentations the following day.

Sidebottom said that plantation timber was still misunderstood in some sections of the conservation movement. And that, he said, simply showed a need for better communication.

"Forest growing is important to the local and national economies and this is seldom realised by urban Australia," he said.

"The Australian Government recognises the importance of the forest industry, which is a major employer in parts of regional Australia, including Gympie," he said.

"There is a good story to tell about forest management, as well as about wood and fibre products - and we should be proud to tell it."

The R&D presentations following FWPA’s annual general meeting always delivers interesting and relevant R&D information, and this year was no different.

Andrew Dunn, chief executive of the Timber Development Association, spoke about topical FWPA research into Emerging technologies and timber products in residential construction. 49 new technologies,

i n c l u d i n g construction systems, material developments, and integrated design and delivery systems, were identified that may have economic significance to the  Ron Adams.

Australian timber market.

Dr Keith Mackie, chief executive officer of Solid Wood Innovation (SWI), presented two major research projects delivering value for wood processors. The first is the Cant Tool, used by structural manufacturers to obtain more structural lumber from the forest resource. The second project is the extensive work on Drying, including steaming work and dynamic kiln scheduling.

Rob McGavin, from the Forestry Science unit of the Queensland Government's Department of Agriculture, Fisheries and Forestry, detailed the impressive capabilities of the Salisbury Research Facility. This facility can do research at a semi-industrial scale, vital for demonstrating to industry that wood science delivers financial results.

Rob also discussed recent research findings using mid rotation hardwood thinnings in rotary veneer production. These new options may increase profitability for hardwood plantations.

Equipped to meet the challenges head on TIMBER QUEENSLAND, the peak body representing the State’s $2.4 billion per annum forest and timber industry, elected a new Chair and Deputy Chair at its annual general meeting.

The Board of Directors elected Chris Hay (General Manager Northside Truss & Frame) as Chair, and Sean Gribble (State Manager, Amerind Forest Products) as Deputy Chair.

Brian Farmer (CEO HQPlantations) and Tony Moxon (Director, Moxon Timbers) were elected to the Board.

Timber Queensland chief

executive officer Rod McInnes said retaining the stable, experienced Board and complementing it with new areas of knowledge was imperative during the most difficult market conditions endured for decades.

“We look forward to the leadership and guidance Chris Hay will deliver during these tough times.“ Hay started out in the timber industry 35 years ago as a forester involved with establishment and harvesting. Since then he has been involved in sawmilling, sales and in recent years in truss and frame

manufacture. He has graduated with a Master of Commerce and a Master of Marketing (Logistics).

He is also the President of the Management Committee for FITEC Australia.

Hay says he hopes to deliver better value out of the timber supply chain in Queensland. “We now have representation on our board from growers through to users of the end product,” he said.

Directors elected were: • Chris Hay (GM Northside Truss & Frame) representing Timber Fabrication • Sean Gribble (State Manager,

•

•

• •

Amerind Forest Products) representing Timber Wholesaling Skene Finlayson (MD, Finlayson Timber & Hardware) representing Timber Merchants James Hyne (Production Manager, Hyne Timber) representing Exotic Pine Sawmilling Craig Neale (Facility Manager, CHH Caboolture) representing Exotic Pine Sawmilling Robert Tapiolas (Director, Parkside Group) representing Hardwood Sawmilling

• • •

•

•

Curly Tatnell (Chairman, DTM Timber) representing Hardwood Sawmilling Doug Simms (MD, Simms Group) representing Araucaria Sawmilling Warwick Temby (Executive Director, HIA Queensland) representing Professional Subscriber members Brian Farmer (CEO HQPlantations) representing Forest Growing & Management Tony Moxon (Chairman Moxon Timbers) representing Cypress Sawmillers

Focus on improving competitiveness at all levels FTHE AUSTRALIAN Forest Products Association (AFPA) held its annual general meeting and policy forum in Melbourne and eight board members were appointed including the returning Chair, Greg McCormack. A casual vacancy for the ninth position is currently being addressed.

The new board comprises: • Mr Greg McCormack (Chair) - McCormack Demby Timbers • Dr Hans Drielsma • Mr Jim Henneberry - Australian Paper • Mr Ross Hearne - Kimberly Clark • Ms Lisa Marty – VAFI • Mr Cameron MacDonald - HQPlantations • Mr Ron Adams - Wespine • Mr Shane Vicary - AKD Softwoods • Each of the Chambers; Resources, Processing, and Pulp and Paper also met to discuss key policy issues and opportunities for the forest, wood and paper products

industry. These meetings provided an opportunity to allocate priorities to key actions and policies for the next 6-12 months.

Despite the challenging market environment currently affecting forestry as well as wood and paper product manufacturing in Australia, the meetings were relatively upbeat and focused on the positive reforms needed to improve competitiveness at a macroeconomic and sector level. These economy-wide issues include the high Australian dollar, low productivity and costly regulation compared to our overseas competitors.

AFPA was also pleased at the opportunity for the Parliamentary Secretary for Industry and Innovation, Mark Dreyfus QC, to address the policy forum. The Parliamentary Secretary emphasised the important contribution these industries make in providing jobs and security to regional and rural communities as well as to the environment by using sustainably managed forestry resources. Dreyfus outlined

some of the exciting opportunities for the future production of a range of bio-products and recognised the recent investment by the pulp and paper sector in domestic recycling and product diversification into  Greg higher growth markets.

He outlined the commitment by McCormack. the Gillard Government to work collaboratively with industry and researchers to ensure a sustainable and competitive future for the industry.

The opportunities for the industry to contribute to a more sustainable, low carbon economy were recently outlined in the AFPA policy roadmap ‘A Renewable Future’, recognising the large scope for wood and paper products to provide renewable products with a low carbon footprint and high propensity for recycling, reuse and renewable energy production. These strengths and the scope for innovation were further outlined by industry analysts at the forum.

Australian Forests & Timber News, December 2012 – 13

What a dam good idea!

T

IMBER QUEENSLAND, the State’s leading forestry and timber organization, has come up with an idea that can only be described as a “dam good one”.

TQ’s chief executive officer Rod McInnes has suggested to the Government that rather than selling off bits and pieces of land acquired by the previous State Government for the proposed Traveston Dam and incur substantial losses due to current market prices, the State should consider leasing the land to grow timber plantations.

“Leasing the land to plantation growers for a 99 year lease would provide immediate financial returns while preserving the land in State ownership for potential sale in the future.

“Plantation trials have been done before so we know that you can successfully develop a plantation industry in the area,” he said.

“Not only would this provide extra jobs for the region in plantation establishment, management and sawmilling it would enable the land to be used for other industries that work effectively in concert with plantations for example grazing, bee-keeping and recreation.”

McInnes said Queensland was currently unable to meet its timber needs from local production and that forecasts predict consumption would double by 2040.

“Establishing plantations in this area will allow production of much needed timber resource for Queensland’s future requirements,” he said.

“It can then be processed in the Gympie region; already the centre of timber production and where all necessary infrastructures exist.”

Timber Queensland points out that growing and processing timber in the area would also deliver the State considerable environmental benefits.

“Every cubic metre of timber we can grow locally, rather than fuelling ships and trucks to bring wood to Queensland, will store carbon emissions from the nearby major transport corridor.

“We estimate there is approximately 7000 hectares of land suitable for plantations in the area, which would permanently store 1.4 million tonnes of carbon in the plantations and the wood products manufactured from the 85,000m3 sawn timber that could be harvested for Queensland’s use each year.

“It’s is a win – win – win - win situation; the State gets an income from the land use while retaining it for future use consideration, the land can support other uses while the trees are growing, jobs will be established and the environment benefits.

“This is an idea that needs serious consideration.”

However, Gympie Mayor Ron Dyne has opposed the idea.

McInnes said the outburst by Gympie’s Mayor about proposed timber plantations in the Mary Valley being a “monoculture” and bad for jobs suggests he either doesn’t know what he’s talking about or is being badly advised.

“Firstly, what’s the difference between a plantation of eucalypt trees or macadamia trees or avocado trees? They’re all monocultures; all

planted crops albeit with different rotation cycles,” McInnes said.

“Quite frankly, leasing Mary Valley Land to grow trees guarantees proper land management as timber plantations have to abide by strict Government-imposed Codes of Practice. So there is no chance of feral weeds and animals taking over the landscape which is likely under the current proposals,” he said.  Rod McInnes.

Sell-off plan to boost funds INFRASTRUCTURE AUSTRALIA believes Verve, Western Power, Fremantle Ports, the Water Corporation and Forest Products Commission in West Australia should be sold to the nation’s superannuation funds in a move that would reap the State tens of billions of dollars.

The authority believes by selling publicly owned assets, the nation's infrastructure deficit could be turned around while the assets themselves would be better run and at a lower cost.

The Infrastructure Australia report was prompted by continuing high levels of Government ownership and complaints, particularly by industry groups, that States have been unable to keep up with providing infrastructure necessary for the economy to operate productively.

At the same time, Australian super funds hold more than $1 trillion in assets. Despite the sell-off urgings, WA Premier Colin Barnett said there were no plans to sell the assets.

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66,000* people who work with wood know it’s good for the environment.

The latest figures from MAFF show there has been a reduction of about 14% in the number of people working in forests and manufacturing wood products in Australia.

These are the people who plant and harvest trees and turn them into products that avoid the use of fossil fuel and the release of carbon to the atmosphere.

Australia’s carbon emissions continue to rise.

You do the maths.

Join the battle for better Government policies For details of sensible policies for the Forest Products industry, go to http://ausfpa.com.au/site/key_policy_areas.php * DAFF - Australia’s agriculture, fisheries and forestry at a glance 2012

Australian Forests & Timber News, December 2012 – 15

Thank you participants! You have all contributed to the success of the 5th Annual Industry Development Conference 2012

PRESENTED BY ..........................

“In operation management - Australia's doing OK. Performance management - doing OK. And then comes people management where you really are bad”

Conference gives participants plenty to mull over F

ORESTWORKS has thanked all who participated in the Fifth Annual Industry Development Conference for an outstanding two days of frank, open and enlightening discussion regarding the future of the forestry, wood, paper and timber products industries.

ForestWorks chief executive officer Michael Hartman said he was pleased with the positive responses of attendees to the sessions and the manner in which key speakers didn’t shy away from confronting the issues the industry faces in the modern era.

“The theme of the conference this year was ‘stepping up the value chain’ so we were trying to unearth what it is that companies can do and what the industry can do more generally to compete in the current tough environment,” he said.

“It’s not just forestry, of course, every trade-exposed sector of the economy is struggling to compete with the high Australian dollar - if price is the thing you are competing on. That’s why we must shift to competing in other areas.

“For Australia and the rest of the world to have a smaller carbon footprint we need to be using more timber products and we know that there a variety of innovative products that are being developed that can be used in industry. We need to drive that innovation locally.

“The key to generating innovation is people – their education and their capabilities.

We need to ensure our workforce has got the highest possible skill levels and that those skills are being utilised.”

The conference flew out to a dynamic start with a dense and invigorating address by Professor Göran Roos, recently ranked as one of the world’s 13 most influential thinkers of the 21st century. Professor Roos said he

saw enormous potential in the industry globally, but Australian enterprises needed to confront some hard realities to make sure they were able to compete.

“Management in capability in Australia is second tier,” he said.

“It's not third tier… but it's definitely not first tier. If you look at the difference between first tier countries, which would be the European manufacturing belt countries, you can see where Australia is behind.”

Presenting a graph showing Australian management versus world best practice standards in other countries, Professor Roos didn't mince his words.

“In operation management Australia's doing OK. Performance management - doing OK. And then comes people management where you really are bad… Within people management there is something about managing talent – which is all about innovation – and you are absolutely atrocious at that.

This is the biggest challenge [the Australian sector faces]: improving management capability - that capable, entrepreneurial, demanding management that can lead the innovation that's necessary to succeed. Here you have a big challenge.”

Professor Roos said Australia should aim for high-value add, low volume, niche product-servicesystem offering.

“A healthy manufacturing sector is a must for any advanced economy with ambitions to maintain economic and social wellbeing,” he said.

Trade Commissioner and Global Practice Lead, Forestry Innovations with Foreign Affairs and International Trade Canada (DFAIT), Andrew Caddell, was among a number of insightful international guests with relevant messages for Australia. Caddell said Canada provided a concrete example of the way innovation

 B ob Gordon (Managing Director, Forestry Tasmania) and Tony Price (Australian Bluegum Plantations).

could drive a local industry forward.

“Canada suffered a significant downturn in its forest industry in 2008, when the US housing market downturn reduced demand for Canadian lumber, and the impact of the higher Canadian dollar, the reduced demand of the ‘paperless society’ the internet and cheaper foreign imports hit pulp and paper,” Caddell told the conference.

“The response was to turn to value-added products, including Cross-Laminated Timber, Nanocrystalline Cellulose and other cellulose products as well as research and development in lignin and biofuels. Much of this was done by FPInnovations, the largest R&D organization in forestry in the world. Canada also sought out emerging markets like China, India and Vietnam for traditional forest products.

“The result has been growth in the industry, as well as significant potential as the fibre industry grows, with the use of sustainable value-added wood products.”

Referring to the forest industry as “sustainable, innovative and collaborative” Caddell said it was a change from a few years ago when many of the naysayers in Canada were presuming it was the end of the day for forestry and calling it a “sunset” industry.

“This is one industry that is preparing for a new beginning,” he told delegates, and said its importance was recognized by policy makers in Government and the private sector alike.

“Our exports to Asia are growing. Whereas we traditionally export about 85% of our goods to the United States, that number has declined to 75%. Asia has taken up the slack.

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

“In India, we hold 79% of the mechanical pulp market. We are seeking out niche markets to grow the Canadian brand there as well. And as we seek to become part of the Trans-Pacific Partnership, forest exports will play a part in those discussions.”

Caddell told the conference that ongoing research in the sector was a key component of the work that was being done.

He explained that FPInnovations was only one of the organizations working with universities in Canada, but that it played a key part in research into traditional operations as well as new materials. “Nano crystalline cellulose was the result

 Emily Rice (MC) and Michael Hartman (CEO ForestWorks).

of collaboration between the then Paprican and McGill University in Montreal.

“This,” he said, “is the future of the forest sector -- an array of products right along the value chain.

“By 2020, the Canadian forest products industry will power Canada’s new economy by being green, innovative and open to the world. It is a place to grow and prosper.”

Although several conference attendees raised concerns about the pressure exerted on the forestry industry from environmental activism – with calls to lobby for tighter legislation to mitigate damaging campaigns - CFMEU National Secretary Michael O’Connor said stakeholders needed to keep focussed on the big picture.

"You can't legislate against passion,” he told the conference.

“Anyone who thinks the biggest problem facing our industry is environmental activism is dead wrong. The high Australian dollar dwarfs all other threats. In many ways it is the single defining challenge our industry faces today and it's unlikely to come down any time soon.

"The only way our industry can address the problem it faces today is to first acknowledge and understand it. We can't afford to be distracted by lesser issues."

Cadell was among a number of international speakers who expressed positivity about the standard of conference discussion.

“I was impressed with the calibre of the speakers, I thought the people who were speaking about the opportunities in value-added forestry products were hitting the nail right on the head,” Cadell said.

“It struck me there were many people who had a significant interest in collaborating with Canada. I also appreciated the chance to speak to so many leaders in the industry, and to dine at the spectacular Parliament House.”

 M ichael O’Connor (National Secretary CFMEU).

16 – December 2012, Australian Forests & Timber News

Thank you participants! You have all contributed to the success of the 5th Annual Industry Development Conference 2012

Australia well placed to gain traction in global markets I

AM sure this long-standing industry can and will do much more than survive – it can thrive.

That was the message from the Minister for Regional Australia, Simon Crean, to the fifth annual Industry Conference in Canberra.

Speaking at the Industry Liaison Dinner at Parliament House, the Minister told the more than 200 delegates that partnerships, innovation, diversification, skills and infrastructure would help pave the way to a stronger future for the forest, wood, paper and timber products industry.

“You understand what is needed to grow productivity and competitiveness is about working innovatively, cooperatively and smarter.

“It’s about selling expertise and technology, offering the market a more sustainable and high-quality alternative to traditional products, and, reaching these goals takes perseverance.

“Australia’s success and prosperity in the rapidly transforming international market demands we continue to be innovative, creative and ‘step up’ the value chain,” the Minister said.

Crean highlighted three key areas: Australia’s opportunities in the world economy Regional Australia’s opportunities in the national economy, and Forestry’s opportunities in our regional economies “Your industry, like every other in our economy, is challenged by transition.

“A transition required because of the greatest economic transformation the world has seen; a transition that has seen traditional

minimum wage system second to none.

“We’ve significantly increased investment in education and training to lift the standards projected in the White Paper – and committed to do more – and we’ve seen massive new investment in infrastructure – including telecommunications and digital infrastructure such as the NBN. “We’ve used the strength of our economic position to invest in both the drivers of economic growth and productivity, and at the same time, to deliver a social wage and important safety nets – all opposed by our opponents but now difficult to unpick,” he said when highlighting the national picture.

The Minister said the Federal Government had also invested in the regions, and had changed the culture of regional development.

“As the OECD has observed, the world is no longer national economies, but a series of regional economies; all with their different strengths; all with their many challenges.”

The Minister was strong in his belief that stronger regions meant a stronger nation.

“We have given greater recognition to place–based strategies --- because localism works. Through my many years of engagement with regional and rural Australia it is clear to me that regions also understand the importance of not just a strong and diversified economic base but a sustainable one environmentally as well as economically, and socially – an economy that delivers and develops liveability.

“Regional communities understand the triple bottom line approach to development and

of this change in culture and the importance of partnerships had been the Regional Development Australia Fund (RDAF).

“RDAF is driving the cultural change in regional funding by focusing on projects that stackup, leveraging investment through partnerships and providing strong regional reach.

“This partnership approach in the first two rounds has turned a Commonwealth investment of $350 million in 81 projects to a total leverage investment of $1.2 billion—that's a partnership multiplier of up to four to one.

“A great example in your sector is the $9.47 million Bombala Timber Precinct. The precinct will contain timber milling and particle board manufacturing capabilities.

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

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

Minister Crean recently announced rounds three and four of RDAF which would make available another $225 million in funding now the Minerals Resource Rent Tax had passed.

“We are spreading the benefit of the resources boom to the whole economy,” he said.

The Minister said the forest and forest products industry knew the importance of leverage and partnerships.

“Through the Australian Government’s National Workforce Development Fund, ForestWorks was able to take a Government investment of $1.89 million and leverage a further $1.27 million from industry partners.

“As a result, more than 600 workers will be trained in 14 separate projects, gaining qualifications which include Forest Growing and Management, Timber Truss and Frame Design, and Diploma of Management.

“My colleague, Minister Greg Combet, announced a partnership involving representatives from the pulp and paper industry that will form an advisory group to work with the recently announced Manufacturing Leaders Group.

This advisory group, chaired

by Michael O’Connor and Jim Henneberry, will play a key role in ensuring the concerns of the pulp and paper industry are heard and considered in the development of our manufacturing industries.

“This followed Minister Combet’s recent announcement that the Australian Government will also provide $9.5 million towards a $90 million project to install a de-inked pulp facility at Australian Paper’s Maryvale mill in

Regional communities understand the triple bottom line approach to development and change better than anyone.

 M inister for Regional Australia, Simon Crean.

markets weakened by recurring regional and global financial crises; a transition driven by the digital global economy which has created global markets and communication networks which have no limit - as our White Paper demonstrates a transition that is seeing huge opportunities in Asia – the goods and services that the rapidly growing middle classes of Asia want, from quality food and other products, to education, financial, medical and other services. All areas where Australia is strong,” the Minister told the gathering.

“We’re better placed than any other advanced economy – continuous growth over 21 years, low inflation, room to move on monetary policy, huge domestic savings pool courtesy of compulsory superannuation.... we have a national health and

change better than anyone.

“We've also secured a commitment from State Governments of different political persuasions as well as Local Government to this mutlijurisdictional place-based approach through a series of MOUs as well to a focus on key determinants of growth including investing in skills, population growth, including services and liveability as well as access to markets and developing competitive and comparative advantages.

This commitment to localism underpins a national framework that not only recognises the importance of partnerships — it facilitates them, particularly through our RDA network and the bringing together of Local, State and Federal Government.”

Crean said the clearest example

PRESENTED BY ..........................

This conference – the networks and partnerships it creates, and the innovations it can foster – is central to the success of forestry and timber products in the economy of the future.

Victoria ... that’s 140 construction jobs, which will support the jobs of nearly 900 workers directly employed there and over 4,000 other indirect jobs which rely on the mill's operations.”

Minister Crean said that earlier in October he announced the Commonwealth’s $28 million share of an $84 million investment partnership with the Tasmania Government and Norske Skog’s in their Boyer Mill.

“The investment will move that mill further up the value chain and it should not be lost on anyone that the success of this mill now and into the future is it has built a strong connection to its workforce and its community and it is based on a long-term sustainable resource.

“It’s an approach that is good for jobs, it’s good for the economy, and good for our balance of payments as the magazine grade paper to be produced will replace paper currently imported.”

The Minister assured delegates that forestry had an enduring place in Australia’s national story.

“In 40-plus years of public life – from the trade union movement to Primary Industries Minister, to Employment, Education and Training Minister, to Trade Minister, and now as Regional Development Minister – I have often worked with communities which rely on this industry.

“The same keys to sustainable growth in forestry – partnerships, innovation, diversification, skills and infrastructure – are the keys to sustainable and healthy regional communities.

“They are also the keys to sustained national economic growth – strong regions are the building blocks for strong nations.

“This is why the regional development and skills agendas are so important and why the Australian Government is pursuing them.

“This conference – the networks and partnerships it creates, and the innovations it can foster – is central to the success of forestry and timber products in the economy of the future. I am sure this long-standing industry can and will do much more than survive – it can thrive.

Australian Forests & Timber News, December 2012 – 17

Thank you participants! You have all contributed to the success of the 5th Annual Industry Development Conference 2012

PRESENTED BY ..........................

‘It’s possible to have environmental and social and economic sustainability’ T

HE TIME for Mr Nice Guy has long gone. Now, it’s time to take on the anti-forestry activists at their own game and utilise social media to ensure the voice of the industry (and reason) is heard.

According to Sid Sidebottom, Parliamentary Secretary for Agriculture, Fisheries and Forestry, the industry needs to more cleverly adopt and use every contemporary means to educate, communicate and enthuse people about the benefits of wood and its products.

“Social media campaigns are used by people who would harm this industry. Social media then must be adopted to combat this attack on this value-adding industry,” he told the more than 200 delegates at the fifth annual Industry Conference in Canberra.

“We all need to step up to spruiking the value of this industry in every which-way possible and adopt contemporary spokespeople and platforms to do this.

“Stepping up the value chain must also mean stepping up the value of the forest, wood, paper and timber industry – such a natural product is naturally better.

“This is the truth.

“This should be the message,” he told delegates.

Sidebottom said the very nature of wood and its products as well as its relevance in the new world would drive innovation.

“The wealth it creates will predominately benefit the source of its origins, namely regional Australia.

“Every time I get up to speak about the forest/wood and paper products industry I can’t help saying that the industry has a bright future and it should have.

“Indeed the Australian Government recognises the importance of the forest industry to regional Australia.

“We know that in many areas it is the major employer and that forest industry workers and families play integral roles in the community, supporting local businesses, schools, hospitals and sports clubs.

“The forestry and forest products sector is a significant part of Australia’s economy.

He said the strong Australian dollar has had a significant impact on exports and a flow-on effect to industry, and there was also continued pressure from

environmental non-government organisations around native forest harvesting, as well as opposition to plantations from some environmental, community and farming groups.

“In addition, there are some self-proclaimed anti-forestry activist groups who are using unconscionable tactics to negatively affect markets and customers of wood products which are sustainably managed and harvested.”

Sidebottom said that despite this, the Government believed it was possible to have a vibrant and successful forest industry based on sustainable forest management.

“We want environmental sustainability and we want social and economic sustainability. It is possible to have all three - they shouldn’t have to live in a permanent state of tension.”

However, Sidebottom stressed that industry needed to change and innovate to take advantage of changes in the market place. Indeed, it is crucial to know the demands and nature of the various market places presenting before the industry and the industry is presenting to.

Business as usual will not yield the results our industry needs to remain viable.

enterprises, sourced locally and using local employees - not imported.

“Emerging building systems are based on things like quick connection systems, timber concrete composite beams, posttension timber frames, cross laminated timber variations like Metsa, aluminium nailed dried dowels, along with the more familiar products like glue laminated beams, LVL etc.

“CREE Systems from Austria apparently put up an eight-storey wooden-concrete composite building – Life Cycle Tower 1 at Dornbirn, Austria – in eight days.”

He said that prefabrication meant speedy construction which results in cost savings.

“We need Australian businesses and design engineers at the forefront of this technology, a technology that already exists and is waiting for Australian adaptation and valueadding. Indeed, stepping up the value chain.”

He said he had visited some of the largest forest industry regions and met industry leaders, entrepreneurs, employers, workers and their representatives, and timber communities and had been constantly impressed with the

On the research side of things, Sidebottom said that in June he announced funding of $2.5 million for a National Institute for Future Forest Industries (NIFFI) working out of the University of Tasmania.

“NIFFI will, in addition to retaining much needed skills and knowledge already associated with forestry research in Tasmania, drive research, development, innovation, extension and training for future forest products and industries.

“NIFFI’s research activities will range from plantation management systems and productivity through to sustainable forestry, cleaner technologies and new forest economies including carbon and environmental services,” he said.

Research and development “To support industry in innovation, the Australian Government funds research and development through Forest and Wood Products Australia.

“We provide dollar-for-dollar funding for money contributed by the industry to research and development. Forest and Wood Products Australia is run by the industry and its investment priorities are determined by the industry. It funds research

Every time I get up to speak about the forest/wood and paper products industry I can’t help saying that the industry has a bright future and it should have.

“Large timber buildings are going to become more common in this region. Indeed, the next architectural trend.

“This is being led by the reconstruction of Christchurch in NZ due to their earthquake resilience. They are also beautiful buildings in their aesthetics and simplicity of construction.

“In Australia we are already seeing the extensive use of timber

by Lend Lease the Forte building in Melbourne. And I understand from consulting engineers, they are keen to use more timber and lots of it,” he said.

Focus on engineered products Sidebottom suggested the focus should be on engineered product development and building systems. For example, large format timber panels manufactured off site. Manufactured by Australian

different strategies that timber manufacturing businesses had employed to stay in business in tough economic times.

Most strategies are based on an advantage which is not price, he said.

Developing relationships His advice to the industry ...

“You need to develop and maintain very good relationships with your markets. With your customers. To communicate with your “friends” in the value chain.

“What does your buyer really want? How can you make your buyers life easier?

“Prefabrication? Everything cut to size? A groove here or a hole there?

“Speed to market reducing the need for stock?

“Can’t fit in a container but I can make it,” he suggested.

Canadian Government backs timber industry THE FOREST Products Association of Canada (FPAC) is asking the Federal Government to use Budget 2013 to continue to build on the existing momentum of innovation and transformation in the job-rich forest sector.

This should include replenishment of the successful Investments in Forest Industry Transformation (IFIT) program. The original IFIT program generated 107 applications and was oversubscribed by a factor of five, demonstrating the

significant appetite by the Canadian forestry sector to develop and commercialize innovative technologies in the areas of bio-energy, bio-chemicals and new solid wood projects.

About a third of these project applications were for world-first innovations. By investing CAD $300 million over the next three years in IFIT, the Government will continue to support the ambitious Vision2020 agenda of the Canadian forest sector.

into product development, market development, technology development, and technology transfer.

“This investment in research and development will assist in delivering the current and future wood and wood fibre demanded

by Australians. Marketing the environmental benefits of wood and wood fibre products to consumers is also important.

“The forest industry, through Forest and Wood Products Australia, has been doing great work with the ‘Wood, Natural Better’ advertising campaign conducted with Planet Ark. “As well as the need for innovation in the forest industry there is also a clear need for a skilled workforce. Despite the many varied careers available in the forestry industry, labour and skills shortages persist.

“This highlights the importance of the work being done by ForestWorks, a sponsor of this event.

“The continued encouragement of students, job seekers and existing workers to the industry is vital, as well as the development and maintenance of national industry skills standards and qualifications,” Sidebottom told the delegates.

 S id Sidebottom, Parliamentary Secretary for Agriculture, Fisheries and Forestry.

18 – December 2012, Australian Forests & Timber News

Thank you participants! You have all contributed to the success of the 5th Annual Industry Development Conference 2012

PRESENTED BY ..........................

Differing perspectives on a conference that had it all T

HE FIFTH annual Industry Development Conference in Canberra provided an excellent forum to discuss the range of challenges, market opportunities and policy settings for growth and prosperity for the industry into the future.

AFPA chief executive officer Dr David Pollard said the feedback he had heard had been very positive, reflecting the quality of national and international speakers on key topics, including Professor Goran Roos, Chairman of VTT International, on prospects for Australian manufacturing and Joseph Bachmann, Global Forest Partners, on the commercial investment environment for forests in Australia.

applicable for many businesses.

“The conference was very wellattended by industry leaders, making for excellent discussion and networking opportunities,” Marty said.

Timber Queensland chief executive officer Rod McInnes said he was pleased he took time out of his schedule to attend the ForestWorks conference.

“The networking opportunities alone made it worthwhile. The conference itself was very useful and well organised. The presentations were particularly relevant to the issues we are facing Australia-wide, the speakers who addressed forest investment issues were of particular interest,” said Rod. TFCA chief executive officer Ed Vincent said that while those associated with the Australian and particularly Tasmanian hardwood industry were finding it difficult to focus on longer term and strategic issues, the Industry Development Conference highlighted how fast and how far the range of technically advanced forest based products were advancing and how positive the future of our sustainable industry could be.

“Many of these innovations are occurring outside Australia.

the largest producer of vanillin (artificial vanilla flavouring) with over 40% of the world market, as well as a range of other chemicals used in building and construction, textile dyes, pesticides, batteries and ceramic products or as binding agents in animal feeds and briquettes.

“These are all sourced from processing the trees which it once would have turned into pulp.

“The significant required changes to the forest industry are seen by these speakers to be research and innovation lead and where all the resources of our production forest is of significant value. Examples of products developed include food flavourings, contact lenses and composite structures cheaper and much more environmentally sustainable than current technologies. It was noted that a composite car was being built in Canada, as strong and light as carbon fibre, but at much lower cost and without the high embedded energy component.

“Should this future come about, bioenergy, currently seen by many, as a panacea to the industry, may well be the lowest value product of a suite of valuable products used in almost every sphere of human existence, from specialised papers to clothing fabrics, high strength reinforcements, plastics and medicines,” he said.

Government must back research  A ndrew Caddell (Canadian High Commission).

“An interesting presentation was also provided by Andrew Caddell, Canadian Trade Commissioner and global practice leader with Forestry Innovations, who introduced some exciting applications in renewable energy, engineered wood products, textiles, food and new composite bio-products using wood resources and fibres.

“It is essential that the Australian industry adopts a forward looking agenda to future innovation and market prospects and the Conference this year provided such a platform,” Dr Pollard said.

VAFI CEO Lisa Marty described the conference as a successful event. “Despite the difficult conditions the industry is facing, the conference attracted a large crowd, high calibre speakers and strong political engagement,” she said.

“It provided a strategic focus to current opportunities and challenges facing the industry, including competitiveness and innovation.

“Leading international speakers such as Professor Göran Roos and Andrew Caddell from DFAIT in Canada provided valuable insights

 Lisa Marty (CEO VAFI)

“It is a call for wider and more strategic thought here,” he said.

Ed said that keynote speakers at the conference, Göran Roos and Andrew Caddell, each outlined a possible future for our sustainable industry. “Each challenged our current industry thinking, pointing out that Australia has become a high cost business operating environment, while much of our industry is predicated on being a low cost producer.

“The challenge for forest based businesses is how to transition from a business model that is based on that low cost producer concept, to being a high value supplier to the world. That it is possible was illustrated by the example of the Norwegian company Borregaard, previously a pulp producer. Borregaard is now

Ed said a clear message from the conference, from both speakers and participants, was the need for Government to put in place policy settings that improve research and innovation in the forest-based industry sector at a technical, entrepreneurial and managerial level, “as well as removing the artificial and political constraints which are hampering, not only our industry, but Australia achieving its climate change targets”.

Kersten Gentle, FTMA executive officer, was high in praise of ForestWorks, “not just for running a professional conference again but for sticking with it and providing a conference that brings all seven sectors of the industry together”.

Kersten said she had attended every Industry Development Conference and even though she enjoyed them thoroughly, she sometimes left a little concerned about where the industry was headed.

“Was this conference different than other conferences I have attended? Yes, in fact that after day one I felt I was part of the fibre industry and not the timber industry. Of course I have an interest in all sectors of the industry due to my passion but for those in the room involved in

 D r David Pollard (CEO Australian Forest Products Association).

the wood manufactured products industry the heavy focus on fibre was interesting but not particularly relevant but then again we can’t focus on all subjects.

Still left wondering “For years I have heard that we have a shortage of plantations for structural timber but we never really get down to the nitty gritty about how the industry can address this issue. The Australian timber producers are currently going through an extremely tough time and yes we know the Australian dollar is not helping but what can we do ‘practically’ at the ground level to change this and help the companies along? I am still left wondering.

“It was pointed out at the conference that the green protests are not the reasons businesses are going under and why businesses are struggling but I disagree as it comes back to the basics of what these radical environmental groups (or eco-nazi’s as I prefer

 R od McInnes (CEO Timber Queensland)

“It gives us all a warm fuzzy feeling to have key political leaders speak to us and spruik their words of support, but action speaks louder than words. I think it is weak for any Government to bury their heads and not explore Wood Procurement Policies. Both

 Ed Vincent (CEO TFCA).

political parties have expressed their concerns about climate change and wood is a solution so why not invest further. I’m frustrated that Government continues to ignore a study in to a procurement policy being developed like other leading countries.

“It is easy for people in the industry to get critical of these important events yet we must not forget that newcomers to the ForestWorks Industry Development Conferences see the conference in a whole new way.

(Continued on next page.)

 K ersten Gentle (Executive Officer FTMA).

to call them) do to timber workers and businesses dependent on the timber industry. Their prolonged attacks on everything timber has demonized the industry and it makes it harder for the industry to receive the true Government support it deserves like other industries and I still feel the Government approach to econazi’s who conduct illegal activities is weak.

 A ngus McMahon (Sherbrooke Tree Service)

Australian Forests & Timber News, December 2012 – 19 PRESENTED BY ..........................

Thank you participants! You have all contributed to the success of the 5th Annual Industry Development Conference 2012

Peace talks delegates urged to ‘go the extra yards’ T

HE COLLAPSE of the talks to end Tasmania’s ‘forestry wars’ was not just a disappointment; it was a tragedy, according to Simon Crean, Minister for Regional Australia (pictured).

The Minister was giving a keynote address at the Industry Liaison Dinner at Parliament House. The dinner was held in conjunction with the fifth annual Industry Development Conference.

Crean told the more than 200 delegates the key focus of the forest and forest products industry was in Tasmania and added that the industry had strong potential and was a fundamental part of Labor’s vision for the State.

“It is a tragedy for the future of a sustainable forest products industry, it is a tragedy for the wider economy, because it will deny the State much needed funding to diversify its economy, and it is a tragedy because an

agreement was, and remains, within reach.

“If the deal can be done it will allow the industry to consolidate, diversify and grow, based on a sustainable resource. A longterm agreement built on sustainable supply will remove concerns about sovereign risk and provide opportunities for investment.

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

“You can’t get more sustainable than that.

“And as we all know, sustainability in the brand for paper is a point of market difference. It’s a competitive advantage,” the Minister said.

Crean pointed out that beyond securing

 Proudly holding their special service awards (from left) Ron Scott, Col Shipard and Bob Pearce.

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

“We have done that with a down-payment of $20 million. Imagine what can be delivered with five times that amount --- $100 million --- only available if there is an agreement.

“That’s why I urge the parties, some of whom are with us tonight, to try again and get back around the table. Everyone has to give something here. Go the extra yards.

Refocus on securing an agreement, and be part of securing your future.

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

The Minister said the irony of this situation was that for all the fighting between groups, there was an opportunity to position the industry as a leader in sustainable forestry practices --- “not only in the products we provide but in the services that we can provide to the rest of the world”.

He said Hydro Tasmania provided a good model where it had been able to develop a world-leading consultancy arm in clean energy expertise.

“That too can be done in forestry management.

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

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

 Cheyane Ackroyd (Stronach Timber Industries in Scottsdale Tasmania - NWDF Ambassador), Karen Hall (Chair - Tasmanian Forest Contractors Association, and Forest Contractor, Scottsdale Tasmania), Antoinette Hewitt (National Program Manager at ForestWorks), Kay Gerard (Food, Fibre & Timber Industries Training Council, WA).

Differing perspectives on a conference that had it all (Continued from previous page.)

“For the first time FTMA Australia had eight members from four businesses attend the conference and they were all extremely impressed with the conference.

The conference opened their eyes to the wider industry which they knew little about; they were left amazed that a by-product of timber could be used to create medicines, contact lenses and fuels and they were pleased to see our industry had a voice.

“I am a volunteer with Friends of Forestry and fellow committee member Angus McMahon attended his first industry conference.

Angus is new to the forestry debate and besides being a fresh young enthusiastic participant he is our future. Following is a report Angus sent to the FoF committee following the conference: The conference was an incredible experience. The difference in tone compared to all other conferences I’ve ever attended is indescribable.

Perhaps “positive” is the best

attempt at describing it. Before I had managed to catch-up with Kersten, people were randomly approaching me with no intent other than to meet someone new.

I cannot recall a single conversation where I had to explain what Friends of Forestry was. Everyone that I met had heard of the work we are doing, and offered their unconditional support. Friends of Forestry have a lot of friends in forestry, and through the coming months I see great opportunity to interact with our supporters to help promote our cause.

One of the surprising things about the conference was the kind of people that were there.

Financiers, economists, CEO’s, directors, policy managers and investment strategists were a major segment of the attendees. Whilst there were a few ‘old saw millers’ amongst the group, the focus of the presentations wasn’t on topics I expected them to be.

Almost without exception, the talks would begin in stating how

difficult times are for our local industry. I don’t think I was naïve about the problems facing industry, but I was immensely taken back (and initially pessimistic) about the severity of the issues we’re up against. Without major innovation, industries rate of downward spiral seems to exceed the rate at which is can be improved.

So many of the people at the conference have global interests, some of the core ideologies that were put forward really challenged me.

Whilst they could well articulate the problems, I felt I was rarely offered any kind of solution other than the words ‘innovation, ‘global competitiveness’ and ‘future markets’. If that message could reach the right people, there is immense opportunity for the right people and industry – and there were people at the conference with the capability to do incredible things.

Many have the ability to ‘set the wheels in motion’ The people that united under the pressures of those problems are

strongly placed to return to their workplaces and set those wheels in motion. Communication barriers to people from all levels of industry were taken away for the two days, and the progress forward that will have been achieved will be second to none.

I still need weeks to distill and consolidate what I experienced.

The sheer volume of information through talks, conversations and reading has my heading spinning.

I need to thank ForestWorks and Friends of Forestry for the amazing opportunity and support in allowing me to attend this impressive conference.

Kersten said that most conferences were talkfests but that does not mean they don’t serve a purpose.

“Conferences such as the ForestWorks Industry Development Conference are great in opening all sectors eyes up to each other and I don’t envy the organizers in finding topics that will suit all delegates.

The highlight of the conference for me was the presentation by

Goran Roos who was great to listen to, but better if he was at the venue, and Andrew Caddell who showed what can be done with money invested in to research and development and having an industry that is truly respected by all levels of Government and the wider community.

Following the conference Kersten joined 40 other women and a few men at the Women in Forest & Timber Network meeting. “This was a great turn up with someone pointing out that 28% of the ForestWorks Conference delegates were women which is a huge turnaround from years gone by. The WiFT Network is growing and the focus at the forum was to develop a mentoring program within the industry. It is important that this involves both men and women in the industry as our industry is full of amazing people who can help each other. If you are interested in being a mentor or a mentee please visit the WiFT webpage which is linked to the ForestWorks website,” said Kersten.

20 – December 2012, Australian Forests & Timber News PRESENTED BY ..........................

Thank you participants! You have all contributed to the success of the 5th Annual Industry Development Conference 2012

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Australian Forests & Timber News, December 2012 – 21 PRESENTED BY ..........................

Thank you participants! You have all contributed to the success of the 5th Annual Industry Development Conference 2012 1. Dr David Brand (Managing Director New Forests) and Tim Woods (Principal Fitzpatrick Woods Consulting).

2. Graeme Russell (CEO First Super) and Anil Lambert (Mountain Media).

3. Glen Britton (McKay Timber) and Robert Torenius (Tasmanian Sawmill 4. David Ingham (High Commission of Canada Trade Commissioner) 5. Richard Abela (CEO, Hettich Australia Pacific).

6. Rod McInnes (CEO Timber Queensland) and Dr Alastair Woodard (Director, Wood Products Victoria).

7. Jon Kleinschmidt (Hyne CEO), Julie George (Hyne General Manager) and Scott Whicker (Millicent Mill Manager, Kimberly Clark).

8. Jon Kleinschmidt (Hyne CEO), Julie George (Hyne General Manager) and Scott Whicker (Millicent Mill Manager, Kimberly Clark).

9. Anne Astorino (LETObamboo) and Richard Brooks (Director, CMDA).

10. Debbie Tickner (ForestWorks Licensing Standards Officer).

11. Bronwyn Bishop (Member for MacKellar, NSW).

12. Michael Edgar (Director, Global Forest Partners).

13. Peter Krietals (FCJ).

14. Riham Mansour (High Commission of Canada, Intern Forestry), 15. David Rutherford (Training Package Projects & Training Provider Network Manager) and Cathy Ashton (ForestWorks Communications Officer).

16. Eva Down (ForestWorks), Rob Rule (CEO Timber Training Creswick) and Antoinette Hewitt (ForestWorks).

17. Bob Katter (Member for Kennedy, Queensland) and Michael O’Connor (National Secretary CFMEU).

18. Nick Connolly (Forestry Tasmania), Matt McCormick (Forestry Tasmania) and Mike Wilkinson (Stronach Timber Indistries).

19. Col Shipard ... proud of his award.

20. Dr Michael Kimber (MTO).

21. Craig Lewis (Tasmanian Sawmillers Association), Stuart Ralph (Tasmanian Sawmillers Association).

22. Christina Manonian, Alexandra Krummel (Department Primary Industries), Clarissa Brandt (Timber Queensland Communications Manager), Jillian Roscoe (VAFI).

23. Malcolm Garner (Managing Director GF&F Garner), Tim and Dianne Goodall (Warnambool Timber) and George Nicholls (GF&F Garner).

24. Lynn Greenwood (Departmenmt of Further Education SA) and Michelle Ingley-Smith (ForestWorks, Skills Advisory Manager SA).

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22 – December 2012, Australian Forests & Timber News

Thank you participants! You have all contributed to the success of the 5th Annual Industry Development Conference 2012

PRESENTED BY ..........................

Mentoring for success

By Michelle Ingley-Smith

T

HE NATIONAL Women in Forests and Timber Network meeting in Canberra on 31 October, as part of the 5th Annual Industry Development Conference, had its highest attendance of women thus far, which gave us the opportunity to engage with many women from all over Australia, from diverse occupations and sectors within the forest, wood, paper and timber industries.

The capacity building session of the workshop was on

mentoring for success. Support for mentoring and peer support of women has been fundamental to the successful establishment of the network in an informal way and this meeting was a step towards embedding some practical directions for the Advisory Group to progress a process to formalise a mentoring program for women to access through the network.

Women at the meeting volunteered and committed to being mentors for other women in varying expertise, while others indicated their interest in being a mentee and were keen to access a mentor. The Advisory Group will

consider best practise approach for the WFTN mentoring program.

At the meeting it was announced that Health Care Insurance would become a major sponsor of the WFTN. The sponsorship will assist and support regional WFTN meetings across Australia.

ForestWorks accepted the offer of hosting the network earlier this year and we undertake the administration and coordination of the Advisory Group meetings, manage the database, manage the website to ensure it is up-todate with relevant information and promote the WFTN activities http://www.forestworks.com.au/

topics/9546.html. The Advisory Group members are Suzette Weeding, Kersten Gentle, Alison Carmichael, Jan Newport, Adele Wedding, Linda Maddern, Clarissa Brandt, Diana Lloyd, Lisa Marty, Jillian Roscoe,

 (above): Lesia Clark and Sharyn Wright (ForestWorks).  (left): Lisa Marty (VAFI chief executive officer, addresses the meeting.  (right): Jenni Day (Marketing Manager, Versace Timbers).  (page top): All the delegates at the conference.  (insert right): Sarah Emerson.  (insert left): Sarah Emerson.

Michelle Ingley-Smith, Jane Bartier, Jane Calvert ( Jane is the first and current Chairperson of the WFTN), Michelle Freeman, Denise Campbell-Burns, Jenni Day.

Australian Forests & Timber News, December 2012 – 23

Finance & insurance

Small business insurance

By Rosemary Ann Ogilvie

R

ECENT YEARS have brought an explosion of insurance packages designed for small businesses in a range of sectors: just Google “business pack” – as these packages are dubbed – and pages of offerings from Australian insurers appear onscreen.

Very broadly, these policies are likely to include: Public and products liability insurance Protection for your physical business assets against fire, theft, accidental damage and malicious damage.

Separate optional covers (see sidebar) that enable you to tailor the policy specifically to the risks and exposures applicable to your business so you don’t pay for cover you don't require.

In some instances, coverage for motor vehicles used mainly for business.

Essential property cover Scott Condren, national property-underwriting manager with Vero, says the primary thing business owners think of when it comes to insurance is cover for their property, which can include buildings, machinery, stock, office equipment and other business contents. While other forms of cover such as liability and business interruption are also important, property cover is crucial.

He says insurance companies will look at the risk profile of a particular business and set a premium accordingly. Each insurer has its own specific risk appetite, which means it may not offer to insure a business if it falls outside its risk appetite. “Timber manufacturing and sawmilling business are generally seen by insurers as high-hazard propertyinsurance exposures due to the fire risk, and the processes typically involved in running the business,” Condren says. “This relatively

high level of risk will be reflected in the insurance premium.”

As an example, timber mills may have dangerous goods on site, and it’s imperative these are identified with a Material Safety Data Sheet (MSDS). Hazardous chemicals are often used in the timber industry, and businesses must ensure that a register of hazardous chemicals at the workplace is prepared, maintained and readily available.

Risk management culture A strong culture of riskmanagement procedures and adherence to risk-mitigation practices will assist a business in the process of obtaining insurance cover. Risk management procedures may include: Sound housekeeping practices such as ensuring the premises are kept clean and free of hazards.

Maintaining a high quality of work.

Training employees well.

Maintaining equipment properly.

Installing strong locks, security systems, smoke detectors, and fire extinguishers.

Regularly backing up computer data (an easy task these days with cloud computing).

Storing key records securely offsite.

“An insurer will tend to look favourably on a business that has recently conducted a formal risk survey, as this provides the underwriter with a better understanding of the risks involved in the business,” Condren adds.

“Businesses that demonstrate a strong risk-management culture and show a willingness to work with their insurer are viewed more favourably when an insurer is assessing whether to offer cover to a business.”

An important component of business insurance is business interruption. This covers loss of profits resulting from events such as a fire or storm, which can severely disrupt production for an extended period and transform a profitable business into one making a significant loss.

Condren stresses the importance of continuity planning for a business. Consider things such as:

Business Insurances Here is a broad list of risks that business packs may cover. However, they will vary between companies, and also business sectors or occupations.

Broadform Liability Covers against the potentially devastating cost of liability actions for both property damage and personal injury. Cover is also available for liability arising from defects in your products.

Burglary Protects your assets against loss or damage due to burglary.

Business Interruption Covers interruption to trading following a fire or some other insured event: these can often have more serious financial implications for your business than the damage itself.

Cash Theft Protects your money at your business premises, in transit, and at your home, against loss, destruction or damage.

Computer Systems and Electronic Equipment Protects against fire and peril, accidental damage (including theft), and breakdown relating to computer systems and electronic equipment. It can also cover against business interruption caused by these issues.

Fraud or dishonesty Dishonest employees are a workforce reality.

This cover protects against fraudulent or dishonest acts by your employees up to the sum insured for such cover.

The ramifications if critical machinery is down for a length of time.

The impact if a supplier of raw materials fails.

How to pay and retain staff while the business is not operating.

How to restore the business to the position it was in before the loss was incurred.

Insurance brokers An insurance broker can help source an appropriate insurer and ensure the level of cover is adequate. They also assist when a business needs to lodge a claim.

Be sure to advise your broker of all activities your business is involved in as there may be certain endorsements or exclusions in your

General Property Covers your stock in trade, tools of trade, plant and equipment, and customers' goods while in transit against fire, flood, earthquakes, explosion or collision or overturning of your motor vehicle, and burglary from your residence or securely locked car.

One hint with tools: you need some proof of ownership in the event of a claim, so keep a file of relevant invoices, or take photographs of the items.

Glass Provides cover for replacement cost of either external or internal glass, or both, and advertising signs.

Machinery Cover is available for damage to machinery caused by mechanical, electrical or electronic breakdown.

Personal Accident and Illness This cover offers a cash benefit to assist you financially if you become sick or are injured.

Property Provides protection for buildings, contents and stock against fire, explosion, earthquake, storm and tempest, impact, vandalism, riots and strikes, water leakage and accidental damage.

Tax Audit Covers costs incurred by your accountant or registered tax agent in conducting an ATO audit in relation to your liability to pay tax.

Underinsuring Underinsuring is a trap for the unwary that could cost you dearly.

If your policy contains an average clause, settlement payouts will be reduced by the percentage of the underinsurance. As an example: take an item with a value of $50,000, which you insure for $25,000 as you believe that is the maximum amount of damage that could occur. If a fire does cause $25,000 damage, the payout will be just $12,500 as only 50% of the risk was insured. policy that can affect the complete protection of your business.

A broker works for you, not for the insurer. Look for a member of the peak body, the National Insurance Brokers of Australia (www.niba.com.au), which also operates the Need a Broker Website (www.needabroker.com.au).

Finally, whether you use a broker to arrange your insurance or do it yourself, always read the PDS (product disclosure statement, or policy brochure) so you understand what is covered, what is not, and whether there are special requirements, such as having a monitored alarm system.

Forestry export earnings on the way up AUSTRALIA’S EXPORT earnings from agricultural, fisheries and forestry sectors are forecast to remain strong in 2012–13, according to the Agricultural commodities – September Quarter 2012.

Released by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), the report finds that exports earnings from the agricultural, fisheries, and forestry sectors are forecast to be around $38.9 billion in 2012–13, which is a 1% decline on 2011–12 exports but 21% higher than the average over the previous five years (to 2010–11).

For forest and fisheries products, export earnings in 2012–13 are forecast to rise by 5.2 per cent and 4.6 per cent to $2.3 billion and $1.3 billion, respectively.

Log supply from Australia's timber

plantations is set to increase substantially according to a report released midway through the year by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

Australia's plantation log supply 20102054 forecasts the volume of plantation logs available for timber production will increase from nearly 26 million cubic metres per year in the 2010-14 period to reach an annual peak at 33 million cubic metres in the 2030-34 period.

ABARES Executive Director, Paul Morris, said the forecast continues a recent trend in Australia, which has seen the volume of plantation logs harvested grow in recent years, now accounting for 74% of all logs harvested in Australia.

"In order to understand likely future

changes, this report provides forecasts of the future supply of logs from plantations nationally and by the major plantation regions," Morris said.

"The report also forecasts the volumes of broadleaved and coniferous logs produced in each region, as well as the volumes of sawlogs and pulp logs."

Significant growth is forecast in the availability of sawlogs and pulp logs from broadleaved plantations, increasing to about 13 million cubic metres per year by the 2015–19 period.

"In the 2025–29 period, the total national supply of broadleaved plantation sawlogs is forecast to average 1.3 million cubic metres a year, up from 136 000 cubic metres in 2009–10," Morris said.

"By comparison, total broadleaved

sawlog production from native forests in 2009–10 was around 2.5 million cubic metres."

The National Plantation Inventory has been collecting data and reporting on plantations established primarily for timber production in Australia since 1993.

24 – December 2012, Australian Forests & Timber News

Finance & insurance

In-house finance is now available M

ARUBENI EQUIPMENT Finance (MEF) is the inhouse finance supplier for Hitachi Construction Machinery Australia. Hitachi Construction Machinery (Australia) Pty Ltd (HCA) is a subsidiary of Hitachi Construction Machinery Co., Ltd (Japan) and part of the global and diversified Hitachi Ltd group.

In June 2011, Hitachi Construction Machinery Co., Ltd Japan and Marubeni Corporation Japan formed a joint venture company called Marubeni Equipment Finance (Oceania) Pty Ltd to provide equipment finance services to customers who purchase Hitachi earthmoving equipment, John Deere forestry and earthmoving equipment and Bell articulated dump trucks.

Hitachi Construction Machinery Co., Ltd. Japan, established in 1949, is a leading global manufacturer of mining and construction equipment. Its annual sales exceed A$9.6 billion, and they hold strategic global partnerships with John Deere and Bell Equipment.

They are wholly owned by Hitachi Ltd., one of the world’s largest companies, with annual sales exceeding $A100 billion.

Marubeni Equipment Finance is a registered finance company which obtains funding through Japanese financial markets. Thus it offers clients the opportunity to

both increase and diversify their funding sources.

Marubeni Corporation was formed in 1858. It is a global trading company with sales exceeding A$112 billion per annum. The company is involved in forestry, food production, chemicals, power generation, mineral resources, transport/infrastructure and machinery trading.

Marubeni Corporation has significant global forestry interests. The company owns more forests than any other trading company (390,000 hectares), has pulp-processing plants, and manufactures paper for printing, cardboard containers and boxes.

In Australia, Marubeni has a 50% interest in WA Plantation Resources Pty Ltd, managing 30,000 hectares of planted blue gum forest in Western Australia, and a 57.1% interest in Southern Plantation Forest Pty Ltd (6,500 hectares of eucalypt hardwood in Victoria and SE South Australia).

Marubeni Equipment Finance can provide Chattel Mortgage, Hire Purchase, Finance Lease or Operating Lease finance on new or used Hitachi and John Deere forestry equipment.

Financing is tailored to suit the individual requirements of each customer. For example, repayments can be structured to match the seasonality of forest harvesting

cashflows, or finance contracts can be structured so that the customer has the option of either buying or returning the equipment on expiry.

Finance is competitive, customisable, and always focussed on delivering the best outcomes to customers. It aims to deliver the best finance solutions to customers whether financing for single machines or entire fleets.

For the forestry industry, equipment that can be financed by Marubeni Equipment Finance includes John Deere feller bunchers, harvesters, forwarders & log skidders as well Hitachi excavators with logging attachments such as those pictured.

MEF’s head office is based in the Sydney branch of Hitachi Construction Machinery Australia, and Account Managers are located in several branches across the country.

See www.marubenifinance.com. au for more information

Australian Forests & Timber News, December 2012 – 25

Finance & insurance

No business should be without a policy Management liability insurance T

HESE DAYS it is getting harder and harder to raise “finance” especially as the economy slows down. The last thing that a business needs right now is a bank loan with interest to defend an expensive lawsuit against an OH&S issue or employment issue.

Quite often in business, there is insurance in place for items that have an obvious value to the business – for example, Mill equipment, logging machines, log trucks etc, but then have no policy in place to pay the legal costs and sometimes the huge fines for

OH&S issues. Such a lawsuit could become a financial disaster for most companies.

“In recent years litigation has been on the increase and while most businesses will have a Public & Products Liability policy to give them some legal protection, many businesses do not have an all important “Management Liability” policy that can provide peace of mind against risk of prosecutions by relevant OH&S Authorities and employment issues,” says Joe Diamente, a director of McNair Hurle Latrobe Insurance Brokers Pty Ltd.

Wellbeing of workers under the microscope THE CENTRE for Research and Action in Public Health of the University of Canberra is studying how working in the forest, wood and paper products industries influences the health and wellbeing of the people employed in these industries.

Supporting the health and wellbeing of workers is critical for any industry, and the forest, wood and paper products industries are no exception.

Considering worker wellbeing is important not only to ensure workers are healthy, but also because industries that provide a better environment for their workers often find it easier to recruit and retain workers.

However, little is known about how workers are affected by ongoing changes occurring in many parts of the forest, wood and paper products industries, or how their wellbeing compares to that of people working in other industries.

This study will help identify the health and wellbeing of workers, and any pressures or issues that affect their wellbeing.

The study was funded by the Cooperative Research Centre for Forestry.

Anyone working for a business that depends on the forest, wood or paper products industries is invited to participate by completing a survey. The survey is open to anyone employed in these businesses, ranging from forest managers, contractors to a business in the industry, harvest or haulage operators, and people working in a sawmill, pulpmill or paper mill, through to business managers, book keepers and administrative workers.

To complete the survey online, go to: https://www.surveymonkey. com/s/FORESTSURVEY Not able to do the survey online? Ring freecall number

Joe said many businesses were not be aware of the “heavy fines” that could be imposed by such authorities on companies and directors and that these fines could ultimately put you out of business and then put your hard earned commercial and personal assets at risk.

“In Victoria, for example, a company can be fined up to (approx) $1,100,000 “per breach” and a Director or supervisor/ employee can be fined up to (approx) $220,000 “per offence”.

(Note: One incident can be made up of multiple breaches).

“We have seen cases where employees have been killed or seriously injured at worksites and WorkSafe has successfully been able to fine the employer for certain breaches. As employers we all know that it is difficult to always be watching staff and even though there are good employment practices and procedures in place, workplace accidents still happen and the WorkCover Authority can impose heavy fines.

“To make matters worse, the “legal costs” to defend such cases usually costs thousands of dollars. What is also important to understand is that even if an employer wins the case, legal expenses cannot generally be recovered from the WorkSafe Authority and so the employer is left with a “huge” legal expense

bill especially given that most cases can take years to settle.

“A Management Liability Policy is designed to protect you against these kind of events that can basically put your assets at risk and put you out of business.

Such a policy would generally include: • Directors & Officers Liability – (which would also cover your legal defence costs) • Statutory Liability cover – To cover the actual OH&S fine & Legal defence costs • Employment Liability – (legal costs to defend claims of unfair dismissal, harassment etc.)

• Crime Investigation Liability – Embezzlement by staff • Tax Investigation Costs – Covers your accountants costs to spend hours with the ATO

Discussing your tax returns “Obviously, the policy does have certain conditions that need to be met such as, you must have an OH&S procedure in place and of course an employee’s safety is still “paramount” and this policy does “NOT” replace the

We have seen cases where employees have been killed or seriously injured at worksites and WorkSafe has successfully been able to fine the employer for certain breaches. need for an employer to “protect employee’s” against workplace accidents,” Joe said.

McNair Hurle Latrobe Insurance Brokers Pty Ltd has operated since 1977 and is the largest locally owned Insurance Brokerage in Gippsland. It is also part of an Australia-wide network of Insurance Brokers [IBNA Ltd] & [AIMS] that control in excess of $2billion in premium and who have access to Lloyds Of London for those more difficult to place insurances.

“In today’s age of increased litigation, heavy fines and penalties, together with high legal defense costs, can you really afford not to have a Management Liability Policy to give you protection and peace of mind?”

 Dr Jacki Schirmer

1800 981 499 to be posted a survey form or complete the survey over the phone.

The survey is open to workers located anywhere in Australia.

People working in Victoria, New South Wales and South Australia are also eligible to go into a prize draw to win a $1000 Flight Centre gift card or one of 6 other prizes (unfortunately we weren’t able to extend the prize draw beyond these areas). More information can be found online at the link provided above.

The survey takes about 25 minutes to complete, and closes on 31 December 2012.

The results of the study will be published in 2013 as publicly available reports and in journal papers, and anyone who completes the survey will be sent a summary of results if they tick the box provided on the survey.

If you have further questions about this project, contact the survey team (Dr Jacki Schirmer, Professor Helen Berry and Ms Melinda Mylek) at: Freecall: 1800 981 499 or Email: melinda. mylek@canberra.edu.au

Member of National Insurance Brokers Association

We insure the timber industry • Business Insurance • Public Liability • Trucks / Transport / Machines • Management Liability including OH&S & Employment Practices • Personal Insurances • Income Protection

With over 20 staff and 35 years of experience dealing with loggers, truckies and timber millers, we not only understand the industry, we also know the difficulties you are facing. For a no-obligation review of your insurances to ensure you are covered against all the threats working in this industry throws at you, contact Peter Hurle, Joe Diamente or Rocco Gaudiano.

Phone: 1300 645 645 AFS Licence No.: 237844

(1300 MHL MHL) Email: insure@mhl.com.au Web: www.mhl.com.au

26 – December 2012, Australian Forests & Timber News

Finance & insurance

The risk of doing business

By Matthew Cummins

N

OBODY GOES into business to fail but unfortunately the stark reality of doing business is that the risk of failure comes with the territory and can sometimes be only one poor decision, debtor collapse, internal conflict, contract dispute or act of Mother Nature away. The reasons for business failures are wide and varied and sometimes can be due to no fault of the owners and operators, so if a worst case scenario eventuates and your business is in a position of possible failure how do you protect yourself and everything you have worked so hard for from being swept up in a creditors settlement and getting left with nothing?

The simple answer is to make sure you have adequate, and

setting up or changing a business structure).

Putting all of these factors aside and taking a generalist view the most protective structure to trade from would be one which is protected by a Pty Ltd company, whether this be trading directly out of a company itself or trading from a trust (discretionary or unit trust) with a Pty Ltd company as trustee.

Why is a Pty Ltd company more protective than trading as a sole trader or partnership? A company is viewed under corporations law as a separate legal identity to those which own (the shareholders) or control (the directors) the company. This means the owners and controllers of the company can be isolated from the actions of the company, of course there are circumstances such as insolvent trading, acts of negligence, illegal

There is no “one size fits all” business structure multiple, protections in place now in the hope that you never will require to use them.

What type of precautions and protections should a business owner put in place to protect themselves, their business and their personal assets, two of the most important considerations are to ensure that you as the business owner: • Set up your business in the correct structures • Have adequate insurance policies • What is the correct structure for your business?

Whilst there is no “one size fits all” business structure and there are various factors such as taxation, succession planning, business ownership, etc., to consider meaning that potential business owners will need to consider (and get professional advice before

activities or legislation noncompliance which can mean that the directors of a company can be personally liable for the company’s debts, taxation liabilities and breach or penalty notices, but in general terms if the directors do not do anything untoward and abide by the various legislative and corporations law requirements which come with the position of director then if the company was to be placed into liquidation or receivership the at risk assets would be limited to those assets held by the company (of course any directors guarantees given to banks etc., will still have the directors liable for those obligations the guarantees where given for).

Trading in a structure protected by a Pty Ltd company should in most cases protect the directors’ personal assets but in the case of heavy machinery reliant industries

such as forestry and transport, the businesses have usually built a substantial amount of equity in plant and equipment as a result of paying off equipment finance liabilities.

If the Pty Ltd company was to be forced into receivership the equity built up in this machinery would be at risk, without these critical pieces of machinery the business simply would not be able to continue or restart. One possible way to mitigate this risk is by adding another level of protection to the business by owning the plant and equipment separate to the trading entity. The trading entity would then simply hire the plant and equipment from the separate entity to use in its trading activities. The diagram demonstrates how such an arrangement could work.

The major benefit of holding your equipment in a separate entity to the one which your business trades from is that should something happen in the trading entity, for example an accident or legal action which places the trading entity at risk, you would have a greater chance of being able to retain your vital pieces of equipment to restart your business activities.

The example has the equipment holding entity a Pty Ltd company but due to this entity being a none trading entity it inherently has lower risk so it feasible to use other types of entities such as trusts or partnerships to hold these assets and to give the whole structure more flexibility and open up some other possible advantages such as profit distribution, tax minimisation or succession planning benefits which a purely company based structure can have limitations.

One extremely popular strategy of isolating business assets from the risk of a trading entity is to hold the commercial business premises within a Self Managed Superannuation Fund (SMSF).

I will not go into any of the technicalities of how this works or

what you can or cannot do within a SMSF as it can be pretty complex and could fill a whole other article itself. I will say that at Easdowns we have successfully introduced this strategy into a number of our clients’ businesses in which the asset protection outcome has really been secondary outcomes to the wealth creation, provision for retirement and tax minimisation outcomes which can be quite substantial given the high value of these types of assets and the period of time these strategies can run for.

We have discussed above a couple of ways to protect your business from an external event causing complete failure but businesses should also be prepared for those internal events which may not cause the business to fail but would still have a highly detrimental financial impact on the business.

Two such events are the loss of key personnel and the incapacitation of a business owner.

Loss of a key employee can severely impact on the financial performance of a business through loss of vital skills, leadership and knowledge. This could certainly lead to a drop in production not to mention the actual cost of finding a suitable replacement and covering the skill loss in the interim.

Although it’s not recommended you take out an insurance policy to cover all your employees, it may be beneficial to take out a key person policy for those employees integral to the operation of your business.

The last and arguably most vital piece of business protection relates to those who are in business with partners or co-owners. Although

Trading Company Pty Ltd

RENT

USE OF EQUIP

Equipment Holding Company Pty Ltd

 Matthew Cummins [CPA BBus (Acc/IT)] is Client Service Manager, Easdowns Business Specialists

it is not a particularly pleasant or comfortable topic to discuss should one of the co-owners of the business be permanently incapacitated or worse and unable to fulfil their role in the business there are two major implications; firstly, how is the co-owner and family going to cope with the loss of income and, secondly, if the remaining owners of the business are required to pay out the value of the other owners interest how will this be funded?

Again a piece of protection for both the business and the families of the business owners which should be seriously considered is a buy/sell agreement which outlines how the owners and their families wish to deal with such a situation should a worse case scenario eventuate, part of these plan could also include the taking out of insurance policies on the owners to potentially fund any buy out of the incapacitated owners’ family.

All of the above advice is based on generic scenarios and you should obliviously seek professional advice on what is the best way to protect your business from potential risks.

Finance Payments

Foreign ownership register ‘half-baked’ IN A scramble to catch-up to the Coalition’s policy reforms on foreign purchases of agricultural land and agribusinesses, the Prime Minister has finally announced a foreign ownership register.

Her announcement is a long way short of what is necessary to convince anyone that the Government has got the message that Australians have real concerns about the growing level of foreign ownership of agricultural land and agribusiness, according to Warren Truss, Leader of The Nationals.

“This is Labor’s third attempt to catch up on a land register and looks like a desperate bid to be seen to be doing something for the Prime Minister’s audience at the National Farmers’ Federation National Congress,” he said.

“First, Labor defended their inaction by claiming foreign ownership levels have not changed for 30 years, then they promised an ABS survey in 2018 – now at last they admit we need a national register.

“Like border protection where Labor pursues failing half-measures, a register of

agricultural land ownership sometime in the future is only part of what needs to be done.

“The Coalition welcomes the important contribution genuine overseas investment has made and will continue to make to Australian agriculture, adding capital growth, innovation and the development of new agricultural regions.

“Nevertheless, the public expects Governments to be vigilant in ensuring Australia’s national interests are paramount and the Coalition has led the debate with the release of its foreign ownership policy paper earlier this year.

“For starters, a national register of all foreign acquisitions – both land and agribusinesses – needs to be established so that Australians have access to accurate information on what land and agribusiness is owned by foreign interests.

“It seems the Gillard Government is oblivious to the avalanche of takeovers of major Australian agribusinesses, making no reference to agribusiness in the latest announcement.

“It’s a bizarre oversight when Australia’s

largest listed agribusiness, GrainCorp, is currently under a takeover offer from US food processing giant Archer Daniels Midland. The result of this purchase would see almost total foreign ownership and control over eastern state grain export facilities.

“The Prime Minister repeated the myth that the amount of farmland in foreign hands in Australia has only risen by 0.1% over the past 30 years. That’s despite Queensland, the only State with a register of foreign land ownership, showing land owned by foreign interests tripled to 4.45 million hectares between 2008-10.

“A well-constructed register will put those issues to bed.

“But without lowering the threshold for Foreign Investment Review Board (FIRB) assessment of proposed farm and agribusiness purchases, a land register is a token gesture.

“For farm purchases the Coalition wants the trigger for scrutiny reduced from the current $244 million threshold to $15 million. Importantly, we propose to also

capture creeping acquisitions so that those buying multiple farms that add up to $15 million would be subjected to FIRB scrutiny.

“For agribusiness the trigger would apply where the investment represents 15% in an agribusiness valued at $244 million, or exceeds $53 million, whichever is the smaller sum. This recognises the key role agribusinesses can assume in farm profitability through market dominance and price and supply settings.

“By lowering these thresholds we can be sure that the national interest test is applied to purchases that currently go through to the keeper. Labor still has no plans to change these arrangements.

“We are also proposing to extend the FIRB skills-set to include agricultural expertise, increasing its size from four to seven members. This would ensure the Board can make informed decisions about farm and agribusiness acquisitions in the national interest.

“Without the Coalition’s full suite of reforms a land register is just window dressing.”

Australian Forests & Timber News, December 2012 – 27

Finance & insurance

Merry Christmas Australia!

S

will be available to buyers and the equipment itself will be the collateral for the loan.” said Turunen.

“We’ve been surprised just how difficult lending institutions in Australia have made it for loggers wanting to borrow for capital equipment to improve their productivity.”

Now, just in time for Christmas, Logset has announced it is ready to offer finance in Australia. This is an area the company has been active in over the years in its headquarters country, Finland, so see it as a natural extension of its customer service approach of providing the equipment and back-up needed to help customers stay productive.

At the time of going to print, details of interest rates, etc. weren’t available but Turunen said they would be competitive.

 Logset chairman Tapio Nikkanen with Australian representative Markku Turunen wishing Australian contractors a Merry Christmas.

statiivi.fi

INCE INTRODUCING the Logset forwarder to the market in time for AUSTimber2012 earlier in the year, local representative Markku Turunen has spent considerable time meeting contractors to see what they think of the unit.

He has also overseen the introduction of some novel approaches to selling and servicing this equipment from providing buyers with a fully equipped service trailer for in-forest maintenance with minimum delays to establishing a service training centre in Griffith for owner personnel. The new training centre will allow people responsible for servicing and maintaining Logset forwarders to undertake training from Logset factory technicians so they are completely up to the mark when it comes to keeping the gear productive.

In another move designed to meet Australian contractors’ needs, Logset is now offering finance to approved buyers.

“Naturally, there are the usual credit history requirements to ensure the buyer won’t be embarrassed, but Logset finance

Logset brings a better logging experience to the forest machinery market. Logset 10F Titan 18 ton forwarder offers better efficiency, better durability, better usability and better productivity.

Logset is simply better – for a logger who demands more.

– way to improve performance!

Logset offers its customers a totally new way to keep the fleet up and running. Logset’s FAST -program allows contractors to achieve considerable cost savings by optimizing the service process and making maintenance more efficient.

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www.logset.com

28 – December 2012, Australian Forests & Timber News

Plantation forestry  S ound establishment and protection of growing stock is a key management objective.

Independent forest management opportunities growing T

HERE IS an increasing frequency of plantation estates changing ownership in recent times throughout Australia. The trend has been a move from traditional integrated corporate owners and managers to new owners that look to outsource forest management.

This is the case for both large and small forest estates. A new

more focused management policy of risk mitigation and return on investment for both land and forest resource is required within the management of these estates.

SFM Forest Products has identified these industry changes and offers a diverse range forest management services to a broad range of clientele across Australia.

SFM’s independent management

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Cant & Peavey Hooks

Haglof Tree Calipers Strong, lightweight Swedish made aluminium tree calipers 40cm - $175, 50cm - $185 65cm - $195, 80cm - $230 102cm - $280 127cm - $310

US made Logrite Cant and Peavey hooks - aluminium handles stronger and easier to use than timber.

42” - $214, 60” - $245.

Log stand to suit - $70

Spencer Logging Tapes Tough US made logging tapes 15m - $95, 25m - $115 30m + diameter - $154

Diameter Tapes

Large range of steel and fibreglass diameter tapes from $19

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services ensure estate owners’ investments are managed to maximize returns at minimal risk.

By undertaking all property and forestry management aspects, SFM is able to offer a fully integrated fence to fence solution to suit the estates requirements.

Managing Director Andrew Morgan has been with the company since its inception in 2001.

“SFM is an innovative business that offers bespoke forestry solutions to estate owners, each estate is different, each owner wants different outcomes, different returns, we provide a management regime to fit those requirements,” said Andrew.

SFM carries group forest certification under the Forestry Stewardship Council and the Australian Forest Standard.

This system allows for SFM to certify eligible estates under one or both forest certification schemes at highly competitive rates.

“We developed these systems with flexibility in mind, certification is and will continue to be a very important factor in being able to sell plantation resource, it is a key aspect of our business,” Andrew said.

With Asia’s ongoing need for wood fibre a properly managed plantation today will yield monetary benefits to the resource owners in the future and provide environmental benefits for the life of the plantation.

For small to medium estate owners a third party forest manager offers independent service provision to maximise value from the forest resource (both monetary and nonmonetary) while ensuring

 The end result of good silviculture management.

compliance and economies of scale for certification, contracting capacity and engaging with markets.

By focusing on long-term profitability through sound silvicultural practices, divestment strategies and value adding opportunities SFM is well placed

to continue its growth in a rapidly evolving sector.

SFM is an independent forest management company offering establishment, stand management, harvesting and marketing services to forest owners Australia-wide. Visit SFM’s website at www.sfmes.com.au

Australian Forests & Timber News, December 2012 – 29

Plantation forestry

Hardwood plantation industry needs new model to drive future

By Jon Lambert

A

U S T R A L I A ' S HARDWOOD timber requirements are derived from three main sources.

Historically, the majority of our solid wood products have been sawn from native forest resources however, in recent years, these needs have increasingly been topped up by imported hardwood (particularly from countries in Asia and the Pacific region) as conservation of public forests increases. Australia also has approximately 1 million hectares of hardwood plantations - that were established at a rapid rate over approximately 15 years - that are primarily supplying chips to domestic and export markets.

As our Governments come under increasing pressure to minimise commercial forestry from public resources, our country faces a dilemma about how we will supply our future hardwood for the solid wood products market.

With inevitable growth in carbon markets and population increases, Australia’s hardwood needs are only set to increase.

Research points to the fact that pulpwood plantations are unlikely to provide significant resources for solid wood markets, given the absence of thinning and pruning.

In addition, pulpwood plantation managers have made species choices on the basis of pulp yield and growth rates rather than desirable solid wood traits such as strength, durability and appearance features. Therefore, our industry really has only three options; (1) we can continue to import hardwood timber to make up the deficit; (2) we can increase the amount of public forests we cut; or (3) we can develop a viable hardwood sawlog plantation industry.

The first option is not a longterm solution given that Australia already has a wood products trade deficit of more than $2 billion and pressure continues to mount on the Federal Government over imports of hardwood timber from Asian and

Pacific nations with poor forestry practices and questionable chain of custody.

The second option is also unlikely to occur given Australia’s direction in the last 10-15 years to vastly reduce commercial activities in public forests.

The final option - to develop a viable hardwood sawlog plantation industry - is the most likely scenario. However, important questions remain unanswered as to what format it should take and how can it be developed to succeed in what is now an extremely fragile industry?

Historically, Australia has opted for large industrial formats for our plantation forestry. Both our softwood and short-rotation hardwood pulpwood industries are testament to this. This format is highly cost-effective because of the economy of scale. In addition, it enables large areas to

several harvesting operations in a day. They will also negotiate with hundreds of landowners to achieve sawn timber volumes that could otherwise be achieved under an industrial model in a single clearfall. Notwithstanding, there are some significant advantages to having so many forest owners. The most important being that these countries do not have the polarized political battles that have dragged down the Australian forest industry for so long. The reason is simple.

A large percentage of people in the community own and therefore, participate in and understand forestry.

Attempts have been made in Australia to create smaller private forestry resources across a broader ownership base. This format is known as “farm forestry”. Broadly defined, it is the integration of forestry with agriculture to achieve a dual objective of

A forestry model that attempts to find the middle ground is the growerbased format being used by Heartwood Plantation (HP) in Victoria. be developed in a relatively short space of time. The industrial model also enables easier coordination of wood flow. This occurs because the management decisions for thousands of hectares can be made by one organisation.

In contrast, many European countries source their timber from a vast number of very small private forest lots (often only a few hectares). In countries like Finland and Sweden, this has led to a very different forest industry to Australia. As a result, most of the forestry in these countries is defined by high efficiency and advanced technology. This has been driven by a need to maximise yields and reduce the high costs associated with having so many forest owners. It is not uncommon for forest managers in these countries to coordinate

conservation and profit. Although farm forestry has many forms and has been encouraged by a range of Government schemes and incentives over more than 25 years, it has failed to make any significant contribution towards Australia’s timber needs. Like the notorious Managed Investment Schemes (MIS), many of the farm forestry initiatives undertaken by Governments have failed in the long run because they attempted to create new resources by providing up front financial incentives (usually in the form of grants) to encourage participation.

A forestry model that attempts to find the middle ground is the grower-based format being used

by Heartwood Plantation (HP) in Victoria. In this format, the rural landowners have a stake in the industry. They maintain ownership

of the land and participate in the forestry investment (either funding it entirely or via a joint venture).

HP has been facilitating this format since 1996 and now manages over 1,500 hectares of hardwood sawlog plantations in Victoria. The average size of these plantations is 15-20 hectares and up to three species are grown in each plantation depending on the site characteristics. It is important to note that this model does not have the speed of expansion of industrial models and it requires time to seek and educate new investors about the benefits of forestry. The result is a gradual build up of resources grown for a specific market (in this case durable hardwood predominantly for outdoor feature markets), where timber demand is the primary driver of the investment. Other drivers, such as conservation and aesthetics, are also more prominent because landowners are making some of the decisions about what species to grow (within a small range) and how to design the plantations on their properties. Unlike farm forestry however, the management of these plantations is guided by professional foresters to ensure the right species are established and the highest quality timber is achieved.

From a catchment perspective the HP format has advantages over the industrial model. Key challenges such as salinity, biodiversity, improved agricultural productivity and water quality, all benefit far more from, for example,10 wellplaced 20-hectare HP plantations across the catchment compared to a single 200-hectare industrial plantation. In addition, the land ownership is retained and therefore socially, there are less dramatic

changes occurring in the rural areas.

Whether the HP forestry model could be replicated and expanded in other regions to gradually build a robust hardwood sawlog sector of the forest industry will be known in the coming years as the first plantations reach maturity and are harvested, processed and used for their purpose.

Perhaps the more important question for the immediate future however, is how to return confidence to an industry that has been shattered by so many company collapses and the bitter debates over native forest utilization.

A return to an honest forestry format that is demand driven and directly involving a greater proportion of the community will be a good start. Although it will take more time to develop and a greater investment in education, the result will be worthwhile if it stands the test of time and financially rewards those who participate.

Jon Lambert is General Manager of Heartwood Plantations

Are you looking for an Investment that is tax deductible or that can be owned by your self-managed superannuation fund?

Looking for a suitable block of land to grow a timber Investment?

Talk to Heartwood Plantations, Victoria’s largest durable hardwood sawlog company! We’ve been growing beautiful hardwood timber plantations since 1996. Peace of mind is yours. You own the land and the trees but we make sure you get the maximum return from your investment. Cheap land now available fro timber investments from $1,000/acre. Operating in beautiful Gippsland, Victoria.

Call Jon 0418 504 010 or Clinton 0408 604 010.

www.heartwoodplantation.com.au

30 – December 2012, Australian Forests & Timber News

Plantation forestry

More ‘elite’ stock now available for forest growers H

VP PLANTATIONS’ Gelliondale and Cowwarr Nurseries are continuing to produce 3 to 4 million open rooted Pinus radiata cuttings each year but with the added capacity to produce 8 million containerised plants, HVP Plantations has altered the dynamics of its business and can now offer more of its elite and highly sought after planting stock to other forestry growers.

The benefits that this strategic move to containers has afforded HVP Plantations are many which is the result of undertaking the following tree improvement process: Selection • Progeny and gains trials are planted each year on HVP’s estate, often in areas that have been set aside for research. From these trials, selections are made in conjunction with the Southern Tree Breeding Association on the performance of individual trees in the trials.

• Trees which perform well are selected for inclusion into the breeding and deployment programs. These trees are known as ortets and they are the original trees from which improved selections are made.

Grafting • Grafting is one way in which new genetic material is introduced into the nursery for the breeding program.

It is a way of vegetatively reproducing already identified good performers Seed orchards • The seed orchards are where the breeding and deployment

crosses program is conducted each year.

• They are areas where a number of trees or ramets (individual members derived from the ortet) are planted for the purpose of breeding and producing identified seed.

Controlled pollination (cp) • 2012 saw the placement of 5000 bags in HVP’s C/P orchards • The flowering and pollen production period begins in mid June and lasts until mid August. During this time pollen is collected and extracted from individual catkins. It is then cleaned and decanted into vials and placed in a freezer where it is stored for use in future deployment production programs.

• A “flower” is what female strobili are often mistakenly called. It is actually a group of flowers. Each individual bract in a conelet (a fertilised strobili) is actually an individual flower.

• The trees outlined in the breeding strategy are checked on a regular basis for the development of strobili.

Once the strobili begin to mature individual leaders are “bagged” to isolate the strobili from any pollen before they mature. This process involves placing a cellulose bag over the leader and pollen is applied to the strobili by HVP staff.

• It takes around 12 months for a grain of pollen to develop and grow a pollen tube of sufficient length to fertilise an ovule in a flower.

• It takes approximately two

Pinus radiata and Eucalypt Plant Supply.

HVP Plantation’s Gelliondale Nursery located near Yarram in Victoria has available limited amounts of improved Pinus radiata and Eucalypt stock for planting in 2013.

Containerised and open rooted P radiata cuttings and containerised P radiata and Eucalyptus nitens seedlings are all available.

HVP Plantations Gelliondale Nursery PO Box 10 Alberton 3971.

Phone: 03 5184 0000 Fax: 03 5184 1360 E-mail: NurserySales@hvp.com.au

The containerised stock is propagated in a container that has been designed specifically for Pinus radiata plantation establishment stock.

Open rooted cuttings grown in Gelliondale’s peat soils develop a vigorous and fibrous root system encouraging better survival and growth rates after establishment.

Considerable savings are available for large orders. Transportable to any region in Southern Australia

 Seedlings being irrigated

years for seeds to develop and mature within a cone. The seeds actually mature before a cone ripens. The cones can, therefore be picked green and cured to extract the seed.

Rapid multiplication (rx) • The rapid multiplication process involves multiplying seed generated from controlled pollinations into a number of stool plants. In this program a seed is propagated and grown to around 10 to 12cm in height.

A tip cutting is then taken; this tip is then set into a tray and placed in the polyhouse.

• This process is repeated several times with additional tip cuttings taken from the mother stool (the plants originally sown from seed).

This process enables a number of parent plants to be generated from a single seed within 14 months. It also allows a rapid introduction and bulking up of new and improved material into the annual crop.

• The plants that are generated are to be planted out in August of the year they were multiplied. They become the future stool plants for the annual nursery crop for the next four years.

Stools • The stool or mother plants are where the cuttings are taken each year for the annual cuttings crop.

• The stool plants are generated from seed, the RX program or identified cuttings that may have been brought in to expand the breeding population.

• These mother stools are retained for four years and are then replaced. By hedging the plants annually and replacing them on a regular basis the juvenility of the material the crop cuttings are taken from is maintained. This juvenility of cuttings material is important.

If the material becomes aged then it becomes harder for the cuttings to initiate roots and initial growth rates are often reduced.

Annual crop • The annual cuttings crop is

TRIALS

CAPTURE

SELECTION

ORTETS NEW MALES GRAFTING

RAMETS

ORCHARDS

CROSS

CONTROLLED POLLINATION

OPEN POLLINATION

NEW SEED

SEED STORE

POLLEN STORE

RAPID MULTIPLICATION

REVENUE

STOOLS

NEW CUTTINGS

MULTIPLY ANNUAL CROP

SEEDLINGS

OUT-THE-GATE

DISPATCH PLANTATION

TIMBER PRODUCTION

set each year between April and mid-July. In 2012, 9.5 million tip cuttings were set for establishment in 2013.

• In October the seed crop is sown. This year around 3.0 million seed stations will be sown for the annual radiata seedling crop.

• During the life of the crop the plants are irrigated and fertilised with slow release prills and foliar fertilisers according to the requirement generated from regular foliar sampling.

The nursery produces a range of cuttings selected for improved traits such as Growth and Form, which is planted on the bulk of the company’s estate; Aphid or Dothistroma Resistance, for use in areas prone to the infestation of these pests and diseases; and High Fertility Select, which has an emphasis on stem form so that trees will perform on high fertility sites.

Eucalypt and P radiata seedling stock is grown at the nursery from seed produced in HVP Plantations’ seed orchards, sourced from other

seed suppliers or supplied by the customer themselves. Gelliondale Nursery has also commenced production of new clonal varieties of radiata pine not previously available in Australia.

These plants have been extensively tested in New Zealand, and more recently across a range of Australian sites by the New Zealand-based company Forest Genetics. These elite clonal plant varieties have been selected for their elite performance across many traits, and will produce more uniform plantations in traits of growth, form and wood quality.

HVP’s Nurseries now have the capability to take their expertise into the market place by providing elite planting stock to other forest growers. All of its plants must reach stringent plant quality specifications before they are despatched.

With a reliable transport network capable of delivery anywhere in eastern Australia and a wide range of material to choose from, customers can also enhance their establishment programs and take advantage of our volume based discounts.

Australian Forests & Timber News, December 2012 – 31

Plantation forestry

Industrial plantation forestry needs carbon price to be profitable A

NEW study conducted by researchers from CSIRO and the Department of Agriculture and Food (DAFWA) suggests industrial plantation forestry could potentially contribute towards Australia’s national target of reducing greenhouse gas emissions (GHG) if a carbon price is in place.

The study found the expansion of new plantation estates into cleared agricultural land is not economically viable without a carbon price, largely due to the high costs of purchasing land.

Study co-author and principle scientist at DAFWA, Dr Peter Ritson, says to stimulate the wood product forest planting, there needs to be a carbon credit benefit in place.

“An Australian forestry company that establishes a plantation forest

may not get an adequate return on investment without the carbon price because there isn’t enough profit that it can acquire from wood products.”

One of the benefits of having a carbon price is that it increases forest growth and encourages commercial forestry companies to establish forests, Dr Ritson says.

He said that unless new plantations were established timber for construction and commercial use would have to be increasingly imported.

“Another alternative will be to use other building products such as steel, aluminum and concrete. But these products have a higher carbon footprint as compared to timber.”

One of the risks to the forestry industry, he suggests, has to do with the Carbon Farming Initiative, which was recently introduced by

the Federal Government. “The CFI enables forest growers who decide to put their forest into the Carbon Farming Initiative to obtain carbon credits for storing carbon on that landscape. However, they are required to maintain the carbon store for over 100 years.

“Under the CFI, forest growers can opt out of the scheme any time but will be requested to relinquish the credits that they were paid in the first place.

Dr Ritson says that if they had already sold these credits to companies, they may be faced with the prospects of having to buy them back in.

However, he warns that if the carbon price escalates, this could potentially become a very expensive exercise for forest growers.

Dr Ritson believes the expansion

of new plantations will help Australia reduce GHG emissions by 5% by 2025.

The paper, titled ‘Economic and employment implications of a carbon market for industrial plantation forestry’, can be found in the Journal of Land Use Policy, due to be released in January 2013.

Native forest production helps get the ‘gas’ balance right A PAPER entitled ‘Greenhouse gas balance of native forests in New South Wales, Australia’, recently published in the scientific journal Forests, presents modelled estimates of the greenhouse gas balance for two key native forest types managed for wood production and other values in New South Wales for a period of 200 years, and compares them to the option of managing for conservation only.

The report shows that forests managed for production provide the greatest ongoing greenhouse gas benefits, with long-term carbon storage in products, and product substitution benefits critical to the outcome.

It is well understood that forestry and wood based industries can provide significant carbon emissions abatement through the carbon stored

in forests and harvested wood products, their substitution for higher emissions intensive materials such as steel and concrete and the renewable energy produced from wood waste.

This potential was recognised by the International Panel on Climate Change (IPCC) in their 4th Assessment Report, when they stated: In the long term, a sustainable forest management strategy aimed at maintaining or increasing forest carbon stocks, while producing an annual sustained yield of timber, fibre or energy from the forest, will generate the largest sustained mitigation benefit.

While these multiple mitigation benefits are known, there has been limited information to date quantifying them for native forests in Australia. The study is important as it shows

that native forests can play a significant part in climate change mitigation when sustainably managed for production of wood and non-wood products including biomass for bioenergy.

The potential role of production forestry in mitigating climate change, though substantial, has been largely overlooked in recent Australian climate change policy.

Australia’s leading forestry and timber advocacy body, AFPA, has long advocated the mitigation benefits from plantation and native forestry activities and has had ongoing discussions with officials from the Department of Climate Change and Energy Efficiency (DCCEE) with respect to these opportunities under the Carbon Farming Initiative (CFI).

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32 – December 2012, Australian Forests & Timber News

HArVESTING HEADS

Heads ... you win!

LOG MAX harvesting heads have been given more than just the thumbs up for being solid, robust and reliable ... they’ve been one of the reasons for a turning point in a south coast NSW business!

Mike Clunie contemplating how to pay for this 10000XT on day one.

Kevin Clunie, managing director of Eden-based Cempac, has been high in praise of the harvesting heads and of Scandinavian Forestry and Engineering (the Australian distributor).

“We started with a Log Max 7000XT three years ago,” said Kevin. “Then we got a 10000XT and this year we got a 7000B which is working in second thinnings.

bec s o t o e R tinuou h t h wit w con mage e l ilab to allo ing da a v a ator isk r w t t o u N 03 ro itho es. s 5 o w T h R tion nd rota ables a to c

Heads above the competition

▶ Low Weight

▶ High Production

▶ Fuel Efficient

For all the details about how the 10000XT can handle wood up to 90cm in diameter without needing a tank to drive it, visit our website www.scanforestry.com or call Log Max Australia on 02 6947 4505 or 0408 614 503 and ask for Johan.

“We put that on a machine with a squirt boom se we could keep the weight down and swing it on the squirt boom and that’s the only reason we didn’t go for an XT. There’s about 300kg difference in the weight,” he said.

Kevin explained that the heads were used in “pretty rough pine”.

“The XTs are both working in a fair bit of unthinned clearfall, which is about 34 years old, and there’s a lot of big branches; pretty hairy stuff, but they handle it with no problems.

Kevin is an engineer by trade so he’s well qualified to offer an opinion on the heads.

“I built forestry gear. I did my apprenticeship many years ago with a company that was making sawmilling equipment; I’ve always been attached to the forestry industry,” he says. In latter years he’s built some small cable haulers and worked on thinning and chipping equipment.

“We also operate a very large softwood chipper down here and we do all the pine export chip for

Australian Forests & Timber News, December 2012 – 33

HArVESTING HEADS

Aussie ingenuity highlighted A 7000XT on a 425EXL working in T2 at Bombala.

the whole region -- about 200,000 tonnes a year through a chipper we virtually built together; built the drum debarker and everything else. It’s onsite at Fibre Exports in Eden,” Kevin said.

But, back to the Log Max heads and Kevin says he can’t praise Log Max enough. “The connection with them was pretty much the turning point in our business. They really are a bloody good thing. They’re a fantastic bit of gear; robust, very well put together.

“It’s not just the one factor, though,” he says. “It’s the availability of service too. When you’ve got harvesting crews all based in the Bombala region and have trucks that go to Tumut pretty much on a daily basis spares are readily attainable. However, if you have to pick another standout thing it’s just the willingness of Johan (Jaktman principal of Scandinavian Forestry and Engineering) to drop everything if you get an issue then he concentrates on it.

“They’ll meet part way with parts if needed. They can do a lot of stuff over the phone. They’re very hands on with the service side, both David (Wakem) and Johan,” said Kevin.

USTRALIAN DESIGNED and made Pulpmate harvesting heads have been specifically aimed at the tough hardwood harvesting market. With proven reliability, toughness, full backing and spare parts/service, Pulpmate is a popular choice for the hardwood harvesting industry.

“It’s definitely a product of Australia,” says Scott Ferguson, one of the partners in the Victorian-based Hardwood Forest Products which is the company behind the heads.

Steve Garrett, the other partner in the business, and Scott have been working on Pulpmate for quite a number of years.

As Scott explained ... “The Pulpmate is based on the concepts of the original LogMate MkIII and Mk IV but the Pulpmate forestry head supersedes these as it is a more compact design and weighs slightly less.

“The Pulpmate 650 takes over from the LogMate, and from this two smaller, lighter forestry heads were developed for a smaller base machine,” said Steve.

“All Pulpmates share 80% of the internal parts in areas such as the saw, beak cylinders and hydraulic components. They all now incorporate a 210 degree cut saw which is driven via hydraulic motor.

“This head was primarily designed for the tough conditions of hardwood harvesting,” said Scott.

“It’s sSuitable to be fitted to purpose built forestry machines, hybrid excavator forest machines, and basic excavator bases,” Scott said.

Specs on the Pulpmate forestry heads:Continuous 360 deg rotation in both directions; Powerful rotate motors; 210 deg cut chain saw with ¾” pitch chain; Manufactured from high tensile steel; Heavy duty slew bearing; 45cc saw motor.

The Pulpmate comes in three sizes: Pulpmate 450 – suited to a 20-25 tonne base machine Rexroth MCR5 rotate motors x 2 36” saw bar 3” bore beak cylinders Max tree size (clamping) – 700mm Approx weight 2000kg Pulpmate 550 – suited to a 25-30 tonne base machine Rexroth MCR10 rotate motors x 2 43” saw bar 3” bore beak cylinders Max tree size (clamping) – 950mm Approx weight 3000kg Pulpmate 650 – suited to a 30-35 tonne base machine Rexroth MCR20 rotate motors x 2 52” saw bar 4” bore beak cylinders Max tree size (clamping) – 1200mm Approx weight 4200kg

10000XT on 450EXL. Russ working in unthinned clearfall.

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34 – December 2012, Australian Forests & Timber News

HArVESTING HEADS

Keeping a-head with research and development!

P

INE HARVESTERS was first approached by Komatsu Forest to trial a Komatsu proto harvester head, according to Tony Ferguson. This proto head is referred to as the 398.

Pine Harvesters decided to install the 398 head to one of its existing Timbco’s 445EXL and had both the prototypes working in the Green Hills and Carabost areas South West of Tumut.

“There ended up actually being two proto 398s as the first 398 was considered to be a little too heavy coming in at 3250kg. The first 398 was trialled for 916 hours prior to being replaced with a modified version weighing approximately 250kg lighter. We worked the second 398 proto for 2,560 hours.

“We trialled the 398 in a range of applications, clearfall, second thinnings, and some first thinnings. We found the head to work very well in all these conditions but it was just a little too big for the first

thinnings. In this application a smaller 2 tonne class head is far more productive.

“The Swedes spent a lot of money in development and research to make the 398 what it is,” Tony said. “It has everything on it. It’s very well designed in the hydraulics, has a good computer system being the new Komatsu Maxi Xplorer system PC X30; real user-friendly.

“We found this head to be very reliable.

There was a lot of technology in it and it was very, very strong. We didn’t have any cracking issues in the time that we had it and we had very little trouble for a proto.

“Overall, it’s quite a good head,” said Tony.

At the beginning of this year the 398 was removed and transferred over to Paul Rosin’s 475FXL. Paul has been operating his 475 with the 398 in a range of clearfall operations in the Bondo region North East of Tumut.

New head punches way above its weight KOMATSU’S NEW 398 head has been put through a gruelling test period in typical Australian conditions and, according to one tester, “it has handled everything I’ve thrown at it”.

Paul Rosin, principal of Rosin Developments which operates in the Tumut area, says the head “punches way above its weight”.

Rosin has a close affinity with harvesting heads having been involved in the design and manufacture of heads in the past but says his main focus now is harvest and haul.

The 398 head has been attached to a Komatsu 475EXL and has been put through its paces for about six months.

“The thing that impressed me most was its ability to handle trees you would normally expect of a head of a bigger size.

“We’ve got it in mature clear fall. Basically it was deigned to go

a bit smaller but it’s handling the wood fine.”

Rosin said the all-round package of the latest head stood testament to Scandinavian know-how in fabrication and manufacturing.

“A lot of people criticise the Swedes and Scandinavians for building equipment that’s too light for our conditions and obviously over the years that’s been the case because the gear we have been buying from Sweden is basically made for Sweden.

“However, this head is probably the first head that’s been designed primarily for our conditions.

“The thing that surprised me the most was the ability to handle the conditions. It handled them better than I expected. The head weighs 3 tonne and it’s doing the same job to a comparable head that weighs 3.6 or 3.8 tonnes.

“It gives us the extra ability to harvest at longer reach because

we’re not carrying that dead weight.

“We’ve basically improved our productivity per hour based on the fact that we’re not carrying as much dead weight around and yet it still has the same ability as the larger heads. Primarily that’s the biggest thing I’ve noticed.

“Probably another point is its ability to handle pretty rough trees; bendy trees. The head’s very compact in length. Whatever I’ve thrown at it (I’ve actually been driving the machine myself, driving harvesters is my forte) it has handled it.

“It has really given Komatsu a good insight. I’ve looked at the product from a real critique perspective; someone who knows what to expect. I’m mot listening to what an operator is telling me; I’m driving it myself, and look at it from that perspective.

“The head is lighter, has more ability to reach out further and cut bigger trees at greater d i s t a n c e and makes the machine

performance a lot better because it’s not carrying dead weight around,” he said.

The 398 is designed for use with the MaxiXplorer head control system and this was something of a first for Rosin. “Our background has basically been data computers but I found the Maxi, once I got used to it, to be equally as good if not better than the data system. Really impressed with the computer system. We’ve had no downtime due to computer glitches or anything like that,” Rosin said.

Another innovation with the 398 is the EcoOiler system which controls the amount of lubricant fed to the chain and bar.

This, according to Rosin, is another plus. “The EcoOiler has been fine. We are using (the head) in mature clear fall for 10 hour shifts and we’re using 5-7 litres of bar lube per day which compared to conventional systems is probably at least a 50% to 80% saving .

That’s been a real big surprise to me. In general harvesting we used between 10 and 15 litres a day. With the EcoOiler I’ve found that whenever I’ve changed the

chains etc they’ve always been wet. No sign of starvation of oil or anything like that.

“In the first three months of operating we used 15 litres of hydraulic oil, and that was with one hose failure on the feed rollers.”

“This head had only been used in smaller wood before we got it and Komatsu wanted to see how it would perform in the bigger wood so I said I’d give it a go.

“It certainly has surprised me,” he said.

“We’ve put some pretty rugged trees through the head and I’ve expected failures because of what I’ve been doing to it but its come up trumps every time.

“It has surprised me that way,” Rosin said.

And just to put the record straight ... “It’s not like I went out there to try and damage it but from my perspective as a customer it’s good to see what its limitations are and so far I haven’t found many situations when I would say it hasn’t proved itself.

“The 398 has all the bells and whistles; color marking; top saw.

A nice compact package,” he said.

Komatsu acquires Log Max KOMATSU HAS acquired Log Max AB and Log Max Inc but as far as the Australian scene is concerned it will be a case of “business as usual”.

Harvester heads made by Log Max and Komatsu are mutually complementary in terms of the type of harvesting as well as tree sizes and this was the primary reason for the transaction.

Log Max chairman Stig Linderholm said that Komatsu confirmed it had no intention to restruc­ture at Log Max and Log Max Inc., and had no intention to change the current relationship with distributors.

“I think that Komatsu is a fair and reliable company backed by an established management team and technologies,” Linderholm said.

Johan Jaktman, principal of Tumut-based business Scandinavian Forestry and Engineering, has been the Australian agent for Log Max for over 20 years. Speaking after the sale announcement Jaktman said that loggers could be assured that it will still be business as usual for them, and the company will continue to supply Log Max heads along with technical support and service for the Australian market.

Australian Forests & Timber News, December 2012 – 35

HArVESTING HEADS

Continuous innovation gives you a ‘head’ start W

ARATAH IS the world’s leading manufacturer of forestry attachments with a comprehensive range of products including cut-to-length, full-tree, and processing harvester heads.

“The 200-, 400-, and 600-Series heads can be fitted to a variety of carriers to ensure the right combination for your environment, and extensive head options make them customizable to your application. Whatever the choice, Waratah harvester heads are known for outstanding productivity and measuring accuracy,” says Jules Larson, general manager, Waratah Forestry Attachments.

Feeding: Jules explained that the 200-Series tworoller harvester heads were adaptable machines that were built to work in more sensitive applications. “The small-profile head is excellent for tighter areas and thinning applications while the lighterweight construction allows for use with smaller carriers and longer reach booms.

The wide-feed rollers allow for multiple diameter applications; high-feed force and speed ensure productivity for multiple stem sizes.

These two-wheel-drive harvesters provide a large contact area with reduced friction allowing efficient feeding and highly productive processes,” said Jules.

“The 400-Series is the next generation of Waratah harvester heads; building on the features of the 200-Series while increasing power with additional feed rollers. Continuous four-wheel drive rollers allow slip-free, fast feeding for additional delimbing capability with greater traction. The 400-Series heads combine maneuverability and excellent stem control for safety. “Waratah 600-Series threewheeled harvesters are tough machines with superior grab arms and body design to make them the best head for processing decked wood, tree-length falling, or cutto-length applications. The synchronized three-wheel design provides the traction and stem alignment needed without slipping or damaging valuable wood fiber. These heads come standard with thumbnail steel drive wheels or, for sensitive applications, Waratah also offers rubber wheels with steel chains,” said Jules.

The 600-Series’ hydraulic design is a basic and efficient approach. “Service is trouble free with standardized components.

The valve bank has identical individual sections for each function, so there is no

need to keep an abundance of spare parts on hand. The innovative hydraulic hose swivel design keeps hoses and electrical cable from twisting and increases uptime.”

Delimbing: Waratah harvester heads feature delimbing knives shaped for quality delimbing of various-sized stems. Knife geometery and long cutting edges provide excellent delimbing quality for multiple diameters while minimizing damage to the stem.

“State-of-the-art proportional hydraulic control quickly adapts the positioning of the knives to the diameter of the stem.

Hydraulic pressure adjustments can be easily made from the cab with the Waratah automation and control system, ensuring fuel efficient and precise hydraulic control at all times. The wide opening of the knives allows fast grabbing for the felling cut, reducing processing time and improving productivity,” he said.

Cutting: Waratah harvester heads are equipped with the SuperCut 100 saw unit that efficiently manages the frequent cross-cutting of stems required in cut-to-length logging.

The latest sensor technology together with the TimberRite control system provides outstanding pressure control and an array of settings throughout the tree-diameter range.

The saw unit’s automatic chain tensioning reduces maintenance efforts and prolongs the lifetime of the bar and chain improving productivity and extending the life of the components. Fully integrated chain lubrication is economical, ensuring low operating costs.

The patented chain catcher is a standard safety feature of all Waratah harvester heads. The saw unit can be customized with a variety of options, including Parker or Bucher saw motors, bar and chain kits, and several types of lubrication pumps.

Multi-Tree Handling: Jules said Waratah was a pioneer in multitree handling (MTH) and provided superior bundle feeding and precise delimbing with our MTH option.

“MTH ability increases productivity and can easily be installed between the rotator and hanging bracket – even on existing heads.

This MTH configuration can be especially useful in thinning and regeneration, as well as in energy wood harvesting applications.

Productivity is increased even further when used in conjunction with our optional MTH feed rollers.”

He said harvester heads could be customized for different applications with a variety of factory options, including feed motors of various power levels and choice of feed-roller types.

Why Australia is an important part of Waratah innovation The Australian plantation forest industry is an important part of Waratah’s innovation and development. The broad landscape of various tree species, sizes, and harvest management programs provide a wide scope for discovering and developing new innovations.

These innovations are born of various aspects of the industry.

Harvester operators are the largest contributors to new innovations offering suggestions and ideas that have an important impact on the final design of our products.

Machine owners desire simpler and smarter ways to measure machine performance and health, leading our engineers to focus on better ways to provide this information.

The Australian softwood plantation forest owners are among the most advanced in the world in driving further efficiency in wood logistics and supply chain management from the forest harvester. “Waratah works very closely with our customers every day to capture their innovative ideas and focus on moving these ideas up the line to our product marketing manager and beyond to ensure our customers’ voices are heard,”

said Jules. “We are particularly fortunate to be located in Australia and to have the opportunity to take full advantage of the diversity of the country’s forest harvesting practices. At any one time, Waratah Forestry Attachments may have up to 10 controlled product feature and performance studies taking place within the Australian plantation forest industry. These studies can be in part or complete evaluation for real-world product testing, operator feedback, machine owner utilization and forest owner wood logistics,” Jules said.

36 – December 2012, Australian Forests & Timber News

cutting edge

The passing of a sawmilling icon ... the birth and rise of its successor A

MAJOR decision was made earlier this year when the Swedish company Sandvik decided to exit the wood bandsaw steel market due to the world wide downturn in the sawmilling industry making this product line uneconomical for Sandvik to continue to produce.

Tony Ratcliffe (General Manager – Contracts at Thode Knife & Saw Ltd) said this decision brought down the curtain on a very successful 30-plus year partnership between Sandvik and Thode.

“When one door closes, another one will open,” said Ratcliffe, “so Thode was very proactive in finding an alternative supplier and product to fill the void.

“Thode Knife and Saw Ltd is now extremely excited to announce to the sawmilling industry that recently they secured the Australasian Agency for Böhlerstrip Wood Bandsaw Steel a division of the Böhler Steel Company.”

Ratcliffe added that Böhler had been involved with wood bandsaw steel for a long time as it currently owns Uddeholm, another wellknown Swedish manufacturer for wood bandsaw strip, and the old Martin Miller facility in Austria which produces bandsaw strip more widely used in the European market.

A recent trip to Europe allowed Ratcliffe the opportunity to visit Böhlerstrip’s brand new steel cold rolling plant in which all of the Böhlerstrip wood bandsaw steel product will be manufactured. This new mill is situated in the town of Kematen which is approximately 150km from Vienna, Austria.

Böhlerstrips Erik Berger (Sales Manager Saw Steel) is proud and excited about the new production facility. “Böhler Steel has invested approximately €120 million into

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this facility which includes all the latest technology to ensure that product quality is second to none, he said.”

Berger said he and his company were looking forward to the opportunity to establish a long term successful partnership with Thode Knife & Saw Ltd. Ratcliffe said that Thode already had several steel orders placed with Böhlerstrip with the first shipment

due shortly.

“All our customers can be at ease as the transition from Sandvik to Böhlerstrip will simply see Sandvik stock being replaced by Böhlerstrip.

“Thode is looking forward to the journey with Böhlerstrip as we offer our customers a new quality product, but with the same Thode excellence of service,” said Ratcliffe.

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Australian Forests & Timber News, December 2012 – 37

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38 – December 2012 , Australian Forests & Timber News

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Kenworth C500 1987 Reg WUY498 With McKee Tri-Axle Jinker $50,000 + gst ONO

Caterpillar 324DL Excavator 2008 Hyundai R290LC-7 HC

2006 Model, 7000 hrs High Wide Chassis Hyd Thumb Price $65,000 + GST

1300 727 520

www.onetrak.com.au

FOR SALE

DJM Log Grab & Cut Off Saw 6,500 Hrs $160,000 + gst ONO

Timbco 445D Harvester 1999 With 980 Rosin Head $75,000 + gst ONO

Samsung SE280 Excavator 1998 With 980 Rosin Head $35,000 + gst ONO

Contact 0428 691 359

FOR SALE Band Re-saws: Robinson 48" and 54", Wadkin RR 1000, Holytek HB800.

From $8,000.00+GST Dust Extraction: 50hp motor, 800 diameter inlet, complete with filter unit & ducting. $30,000.00+GST Moulders: 4, 5 & 6 head up to 300 wide, Weinig, Wadkin, SCM, Ledamac.

From $15,000.00+GST Edgers/Multirip: Gibson, SCM, Sicar.

From $11,000.00+GST Picket shaping machine: Semi-automatic. $3,500.00+GST Docking Saws: Spida, underbench and chalk line docker.

From $1,800+GST Contact: Jim Wills Ph: 02 9907 3699 Mobile: 0418 646 440 Email: jim@sawmillservices.com, www.sawmillservices.com

FOR SALE

1999 Timberjack 480C with grapple and winch. Needs some repairs to articulation otherwise GC. 15,000 hrs $18000.00 (incl. GST) ONO Romsey Victoria Brad 0428534943

Australian Forests & Timber News, December 2012 – 39

TOTAL SAWMILL EQUIPMENT/LAND AUCTION 8th December. Start 9am, on site Lester St Bundaberg www.auctionsrenow.com.au

T O T A L C L E A R A N C E R E Q U I R E D

5 BLOCKS LAND LESTER & HAZZARD ST AUCTION ON SITE MILL EQUIP: Green chain timber conveyor, Chipper 3 blade, & conveyor, Grey 2000 series one man bench, 5x Dehumidifiers kilns 22m3, Dust extraction unit near new, Gibson lionbar break down saw, Screw compressor, Champion marathon cse45 screw compressor with tank, Full power chalk line docker soc-100 (brand new still in wrapper) Aluminium Copper Mobile dust extractor full power 240v Electric motors gearboxes, Trolleys Air compressor, Hydraulic power pack, sharpener head, Grinding machine, Scales, Nylon strapping machine x3, 2x metal strapping machines, Steel roller bench, Off cut timber grinder Reinbold, 3x transfer decks,1 full power manual docker, 2 transfer decks, Roll bench, Full power fm623c 6 head moulding timber machine, Automotive indeed deck Convoys Transfer decks x 2 Manual docker, 5Xstripping bays on wheels, 3X stripping bays with no wheels.

MACHINERY: Triaxle semi-trailer, Dozer, JCB 4x4x4, Logging Trailers, John Deere Tractor 6600 International Crane Truck, TS9 Scraper.

TOOLS: Tool safe, Lathes x 3, Saw blades tungsten tip 42inch, Hydraulic presses, Profile cutter, 2x Tool chests, Goldsmith saw grinding machine, Compressor pilot air 60cfm, Drying ovens, chipping blade, Drills, Vice, Lots workshop gear, Manual tungsten saw sharpener, Saw storage unit, 3200psi pressure cleaner, Chainsaws, Electric hacksaw, Invertor welder, Welders, Bench grinders, Drill presses, Lath tooling, Tool boxes,10x mig Welders, Oxy set, Drop saw metal.

MISC. GEAR: Timber sealant,3 bins, Stripping sticks 1.1 long, Aircons kelvinator, Steel, Steel mesh trailer, 1 docking saw antique, Asst. tyres light truck, Electric motors, 1000lt tank, Timber (see list on web).

Owner reserves the right to withdraw any lot or lots from auction.

FIREWOOD MILLS

New model BigX50 coming soon!

Visit www.timberbiz.com.au/dtn to sign up today.

Different sizes of mills with optional feeding table. Tractor, Diesel Power Pack or Electric Power Pack driven models.

2002 CATERPILLAR 924G Wheel loader 11500 hrs

• Moulder Infeed • Weinig 22B 9 Head Moulder • Metriguard Machine Stress Grader • High Temp Kilns • Solar Kilns • Outfeed Docking Line and Inspection Table • CCA/ACQ Treatment Plant • Semi Auto Packing Line • Semi Auto Stacker • Sundry Plant & Equipment Enquiries Phone Peter

0407 473 688

TIMBER TREATMENT CYLINDER Ex CCA plant 1.8mt diameter 10mt long KOCKUMS FORWARDER 85-35T No grab Good engine, hydraulics, transmission and tyres PRECISION CHIPPER 66inch with 1000hp electric motor and debarker

BRUNNER HIGH VAC KILN 45m3 capacity Hot water boiler All trolleys, computer system, manuals, etc Great hardwood drying kiln RANDALL’S PRENTICE 150 LOG GRAB ON EX-ARMY INTERNATIONAL 6X6 TRUCK Mounted on back with own diesel motor and hyd pack SMITHS TWIN EDGER 2 x 75hp motors Will cut 700mm diameter x 6100mm log ASSORTED RIP SAW BENCHES

LARGE STAINLESS STEEL TANK 3.05mt diameter 4.8mt high Some damage

LARGE STEEL TANK 3.6mt diameter 9.2mt high

38FT CHIVER LOG JINKER TRAILER 1984 X1

WOODCHIP SCREENS 8FT X 8FT X2

38FT TTE LOG JINKER TRAILER YEAR UNKNOWN X1

6INCH VICKERS RUWOLT RECHIPPER X1

For all enquiries and offers please call Damien on 0417 570 616

Volvo L90 Loader

Comes complete with quick release, large chip bucket and log grapple forks.

Valen Kone VK26 Debarker In and out feed conveyors.

$88,000+GST $37,000+GST

Robinson 54” wheels heavy duty bandsaw

50hp motor, Hydraulic feed. $12,500+GST $9,800+GST

Forano Twin 60” Bandsaw Log Breakdown line

Top dogging. Log handling. Remote operator.

Log diameter 60cm – 12cm, 6m - 2.4m.

Hydraulic sizing 30cm – 7.5cm. $188,000+GST

optimising docker complete with in feed and unscramble, and 4 station kick off outfeed. $38,000+GST

FOR SALE

FOR SALE

Softwood Bandsaw Processing Mill For high recovery sawmilling

OPTIKOP 2002

Ph Katrina 0428598997, Mark 0428598969, Office (07) 41500100 More photos & info on website at www.auctionsrenow.com.au

For Information, please, call 0419-536 804 or email your postal address to info@firewoodmills.com.au

AVAILABLE NOW

Moreen Johnston 50” Horizontal Band Wing line

With roundabout and wing transfer deck.$44,000.00+GST

Windsor board twin edger

With laser guides, pneumatic sizing and conveyor waste transfer.

Biesse twin head

point to point automatic machine centre.

$37,000+GST

$28,000+GST

Austral Timber Group Contact Ken Baker 0438 643 992 kjb@agnew.com.au

Timber Mill Equipment Sawmiller going into retirement but a collection of highly productive equipment that has worked well as part of his overall production system is now available to boost productivity in your mill.

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Complete docking & moulding precision trim & fault, plate & gangnail press, straightline edger, green chain $10,000+GST Shaft & track wheels $200+GST Electric motors & blowers $500+GST Bolinda board edger,2 saws hyd sising, outfeed blowers, laserline complete $6000+GST Buzerwolf siser $500+GST Various poly pipe 150mm-250mm $1000+GST Ball mill 1.8 x1.8mm, guards, rubber liners, complete, $5000+GST 250 H/P with starter,6 saws, will cut 1mtr slab, multi saw edger $2000+GST 2 x Large diesel tanks & stands (10,000 gallon ea) $5000+GST ea, Various tanks & stands 1000 ltr, $250+GST each Fire pump tank & engine $600+GST 50 H/P Martec Boiler complete $7000+GST 50 H/P Alfarel Boiler complete $5000+GST Huge log debarker 1mtr,adj lengths $15,000+GST 2 x Safetec 4.8mtr x 1.5 mtr scissor lift as new, one $5000+GST, one at $15,000+GST Compressor bought and never used $250+GST Bull blade to suit a CAT D4 dozer, $1500+GST H/D rolling gantry, chain block, $1000+GST 4 x Heat exchangers $250+GST each Various steel, some scrap, some good, NEG Reconditioning chamber. All marine grade aluminium.

20m3 capacity. $6,000+GST

Photos and video available. Call George 0408 514 595

// N O T H I N G R U N S L I K E A D E E R E

John Deere forestry equipment. Advanced technology. Proven reliability.

And a team that knows productivity is a commitment, not a bullet point.

Sold and supported by Hitachi Construction Machinery Australia.