Friday Offcuts – 9 October 2009
Aside from the issue of escalating exchange rates in New Zealand (breaking US73 cents mid week and predicted to go higher as the US Federal Reserve keeps its interest rates at near zero - and scary to think that the turbo-charged Kiwi has risen 47 percent against the US dollar since February/March of this year), there have been a string of positive reports that have appeared in the media over the last month or so. Results from a September survey released this week by the New Zealand Institute of Economic Research shows business confidence has surged to its highest level for almost a decade. In Australia, similar news is being reported. Based on solid increases in both trading and profitability, the NAB has reported that business confidence in Australia is also heading skywards surging to its highest level since October 2003. This of course was topped off by the announcement this week by the Reserve Bank of Australia that surprisingly raised the cash rate by 25 points to 3.25%. To go with this increased optimism by the business community, we have a number of good news stories appearing in this week's issue. In a story on wood production, as those involved in wood harvesting and transport will be able to tell you - if they had the time of course - log exports from New Zealand jumped a whopping 60 percent over the previous quarter - led by log exports to China that have increased almost 80 percent over the same period. In timber design, there's an amazing mix of entries in both the 2009 NZ Wood Timber Design Awards and the 2009 Australian Timber Design Awards. If you want to see how wood is being integrated, used and showcased in design, read the story on the two awards. Take a few minutes to check out the links that will show you images of some of the really stunning entries to both Awards this year. Finally, for all of you that haven't yet made the decision to be involved in the new forestry technology series, ForestTECH 2009, running in mid November, today is the last day to access those discounts and make a significant saving with early-bird registrations. Remember, THEY FINISH TODAY. The full programme can be downloaded from www.foresttechevents.com
This week we have for you:
Wood Supply Chain Optimisation 2010
Forest to Market - Innovations to Improve Logistics & Operations This technology programme is being set up for Melbourne, Australia on 19-20 May 2010 and again in Rotorua, New Zealand on 24-25 May 2010. What is Wood Supply Chain Optimisation 2010? This technology programme will provide practical updates on innovations being used by forest products companies and leading technology providers working in the wood supply chain. Strategies and technologies that have been adopted to improve planning, logistics and operations within the sector will be outlined and include; - Analysis of successful international models for supply chain optimisation - Optimising value recovery through improved harvesting systems - Remote sensing and real-time tracking of logs and wood products - Innovative systems that integrate planning, operations, harvesting and sales - Materials handling, packaging, freight forwarding and distribution developments - Key issues facing the freight, shipping and transport industries - Radio frequency and electronic identification technologies - The latest international trends in logistics and supply chain management. As the programme is being designed, we are at this stage asking for Expressions of Interest in presenting - to either the New Zealand or Australian forest products sectors - or both. This is your chance to be part of this major forestry event in 2010. Local and international technologists, key suppliers' to the industry and researchers will all be involved in this Australasian programme. For those interested in logistics and wood supply chain management, a pdf for EOI in presenting is attached.
59% rise in NZ log exports recorded
Compared with the June 2008 quarter, China has increased consumption from 30.5 percent of total log export volumes to 60.8 percent in the June 2009 quarter. Sharp increases from the previous quarter's exports are also noted for Korea (up 47.2 percent to 631 000 cubic metres) and India (up 125.3 percent to 231 000 cubic metres). In this latest quarter Japan is the only major trading partner to have recorded a decrease in export volumes. When compared with the March 2009 quarter, New Zealand log exports to Japan were down 59.2 percent (to 66 000 cubic metres) and down 63.5 percent compared with the level recorded in the June 2008 quarter. New Zealand's log market has continued to be driven by China's growth. China's central government has, so far this calendar year, allocated 270 billion Yuan (NZ$62.6 billion) to infrastructure development. Combined with uncertainty around Russian log export taxes, log pricing and supply, this allocation has supported a steady increase in log demand. Average export log prices continued to fall from the December 2008 quarter high of $132.32/Japanese Agricultural Standard cubic metres (JAS m3) to the June 2009 quarter average of $102.88/JAS m3. However, total export earnings from logs for the June 2009 quarter were NZ$290 million - an increase of 66.2 percent compared with earnings in the March 2009 quarter. The latest earnings increased 98.3 percent on the log export income in the June 2008 quarter. This information and the full June quarter forestry production and trade statistical release is now available from www.maf.govt.nz
New surplus parts & components website launchedTISPAC (Timber Industry Surplus Parts and Components), a new, simple and cost effective way to market Surplus Parts and Components has just been launched. In this modern era of awareness, we're constantly talking about recycling, improving cash flow and reducing inventories. The basic concept is about providing an industry based platform to offer timber industry type parts to like minded individuals, basically a site that is dedicated wholly to the sale of parts within our own industry.TISPAC is a new concept and new Australian website. You the advertiser, are the seller, negotiate direct with your customer and all monies are paid directly to you. All transactions are completed online, with payment details being handled with 128 bit VeriSign Security. Items can be advertised from anywhere in the world and delivery point shown from anywhere in the world. The new site is catering for a demand from individuals and companies from across a wide spectrum of the wood products supply chain - wholesalers, sawmillers, logging contractors, seed growers&. Click here for further information.
NZ & Australian Timber Design Awards 2009
Forty-eight entries have been received in the categories of: Residential Architectural Excellence, Residential Engineering Excellence, Commercial Architectural Excellence, Commercial Engineering Excellence, Sustainability, Outdoor Infrastructure, Cladding Building Envelope, and Interior Fit-out. The awards will be announced in Auckland on Tuesday 27 October. In Australia, entries to the 2009 Australian Timber Design Awards, Australasia's most recognised stamp of excellence in timber design have now closed. For the 10th anniversary of the Australian Timber Design Awards and for the first time ever, presentation nights in several state capitals are going to be held. There will be awards for each category in every region and an overall regional award. The winners of the overall award will go on to compete for the National award. The regional awards will be presented to the winners at an evening in each region (Perth, Sydney, Melbourne and Brisbane) between the 16 and 22 October. The National award will be announced in November. For more information - including photos of some of the stunning entries and purchasing of tickets top the regional awards nights, visit www.timberawards.com.au
Determining Radiata pine value and log product yields
Terrestrial laser scanning (also known as terrestrial LiDAR) is receiving a large amount of attention in Europe, New Zealand, Australia and the USA as a new approach for gathering detailed descriptions of individual stems and their location. Interest in the technology is also expanding in other parts of the world (e.g. South Africa and Uruguay). Progress and the very latest results on how the technology is being employed operationally by forestry companies will be a major part of the upcoming ForestTECH 2009 series being run for Australasian forest owners, managers and technical foresters in mid November. Recent research evaluating the use of terrestrial laser scanning technology and an optimal bucking algorithm to determine log product yields and tree value in South Australian radiata pine plantations will be part of the ForestTECH 2009 programme. Results comparing terrestrial LiDAR with manual measurements, harvester with manual measurements, and terrestrial LiDAR with harvester measurements will be discussed. For those wanting to get the very latest updates on forest data collection, sampling and inventory tools and remote sensing technologies, remember today is the LAST DAY for EARLYBIRD registrations to ForestTECH 2009. Full details on the New Zealand and Australian programmes can be found here
NZ pulp mill facing up to falling demandThe Norske Skog Tasman pulp and paper mill in the central North Island is reported to be planning "significant downtime" next year in the face of falling demand. The droip in demand has been put down to general economic conditions from the recession and the effect of rising use of electronic media on the newspaper industry. Norske Skog Tasman produces about 26,000 tonnes of paper a month, it manufactures newsprint for all of the New Zealand market, with the balance of production exported to Australia and Asia.A statement from general manager Ernie Hacker referred to continuing market uncertainty for the Kawerau mill's newsprint product. The company estimated that if the mill continued to produce at current levels that it would have to cut back production by between 25,000 and 50,000 tonnes. A spokeswoman suggested that could involve two shutdowns of two weeks each. The company is seeking 69 redundancies among its 399 workers, though a union plans to contest them. The mill closed for 10 days in August because of over-production and falling demand. Other Norske Skog paper mills in Australia had already cut jobs this year.
Scion announces positive financial resultA strengthening of research and commercial partnerships has helped New Zealand's Crown Research Institute, Scion, post a $2.3 million net profit, with a $1.5 million dividend heading back to the government. The profit for the year ending June was up from $1.1 million in 2008, with total revenue up 5.4% to $43.97 million.Scion chairman Dr Russ Ballard said the year has seen improved results for Scion, in terms of scientific achievements, financial performance, and reinforcement of the company's strategic direction. He said this was "particularly gratifying" when viewed against the background of local and global economic uncertainty. Members of the NZ forestry sector have applauded the strong performance. Future Forests Research Chair Phil Taylor says that Scion's success as an organisation is extremely positive, because a strong, vibrant and well-focused forestry CRI is critically important to the industry. "Forest growers in New Zealand are well served by Scion as our key research provider, and we should not forget that their success is our success". More >>
Wood fuel classification guidelinesThe variability in the quality of wood fuels is perceived as a barrier to those that could potentially be users of wood fuels. The lack of any classification system for wood fuel in New Zealand creates concern over fuel quality and uncertainty in regards to the burning of wood at a regulatory level. Its been proposed that quality issues are addressed through the publication of a set of classification guidelines for wood fuels. The Wood Fuel Classification Guidelines will be subject to ongoing development and feedback on these new guidelines is welcomed. Click here to download the new guidelines.
Australian wood chip exports decline 28% in 2009Australia, the world's largest chip exporter, has reduced Eucalyptus and pine chip exports substantially in 2009 due to weak pulp markets in Japan. In the domestic market, pulpwood prices have increased over 13% in US dollars this year as the Australian currency has strengthened, reports the Wood Resource Quarterly.Australia, the world largest exporter of wood chips reduced shipments by 28% during the first half of 2009. The biggest decline was that of softwood and hardwood chips to Japan, which were down 31% and 36%, respectively, compared to the same period in 2008. As a result of the reduced production of pulp in Japan the past year, demand for imported wood fibre has fallen and countries that export, such as Australia, have had to try to find alternative markets. In 2009, Eucalyptus chips destined for Japan were down to 74% of all Australian hardwood chip exports as compared to 86% in the previous year. Other increasingly important markets include Taiwan, South Korea and China. The brightest spot for chip exports the past year has been China, which has more than doubled the import volumes from Australia this year, reaching over 470,000 tons during the first eight months (some softwood but most hardwood). Although Eucalyptus exports have declined, the domestic consumption of plantation Eucalyptus wood fibre in Australia has been increasing steadily as fast-growing plantations have matured. In the 2Q/09, there were 21% more Eucalyptus chips traded compared to the same quarter last year. Domestic prices for both softwood and hardwood fibre were slightly lower in the 2Q in Australian dollars, but substantially higher in US dollar terms as a result of the strengthening Australian currency. Eucalyptus pulp log prices were up 14% in the 2Q and Eucalyptus chip prices for domestic pulpmills increased by 13%, according to the Wood Resource Quarterly. The export price for Eucalyptus chips going to Japan for the remainder of the year settled at the same level as in the 1H/09 and 2008. Softwood chip export prices for chips shipped from Portland, Victoria fell US$19/BDU to US$140.50/BDU (US$129/odmt) in the 1H/09. Australian softwood chips were close to the lowest cost chips delivered to Japan in the 2Q/09, only slightly higher than the price for Douglas-fir chips from the US. Radiata pine from New Zealand and spruce-pine-fir chips from Canada are currently the highest cost fibre delivered to Japanese pulp mills. Source: Wood Resource Quarterly
Device analyzes trucker's state of alertness
"They can then arrange plans for the driver to get some rest," said Yves Cournoyer, spokesperson for Axyomm Technologies, a company founded to market and distribute the Driver's Mate. The technology of the device has been under development since 1998 and underwent testing at Montreal's
Ship owners back expensive global trading net
BC City now owners a pulp mill
Along with the ownership comes maintenance and upkeep on the 270 hectares and the mill, which chief financial officer Dan Rodin said is estimated at approximately $100,000 per month, until council decides what direction to go with it. "The ultimate result would be an operating mill, but I think the community gave up on that some time ago" said acting mayor Kathy Bedard. Sun Wave purchased the pulp mill on June 15, 2006, and was offered relief from property taxes and the taxes owed to the City provided the mill was operational by the end of 2007. However, the mill was never restarted and taxes never paid. Source: Tree Frog Daily Forestry News
Victoria - world's first state to inventory forestry carbonThe South Australian state of Victoria has become the first in the world to effectively inventory the amount of carbon stored in its public forests, parks and reserves using a carbon accounting system proposed by the Australian government's cap-and-trade system."This new information will help Victorian landowners to enter the carbon market, identify reforestation sites and measure carbon on their own land," said Victoria Environment and Climate Change Minister Gavin Jennings. Releasing the research in Los Angeles at the California Governor's Climate Change Summit, Mr. Jennings encouraged his own government to consider this new evidence about the carbon storage and emissions from public land in the design of Australia's Carbon Pollution Reduction Scheme and international climate change negotiations in Copenhagen in December. The modelling results show that Victoria's public land holds the equivalent of 3,031 million (U.S.) tons of carbon dioxide - or 23 years of Victoria's total greenhouse gas emissions. The Vic LandCarbon project takes into account how bushfire, fuel-reduction burning and harvesting impact levels of carbon stored on public land. "In the past we have estimated the carbon dioxide emissions from large scale bushfires, but we now can pinpoint how much carbon is emitted by bushfires compared with the carbon that is captured during the regeneration process," Mr. Jennings added. From this Australia-first modelling, Victoria officials now know that carbon dioxide emissions generated from the February 2009 bushfires on public land exceeded 9.4 million (U.S.) tons. "The modelling also shows that bushfires in Victoria over the last decade have emitted over 70 million tonnes (77 tons) of carbon dioxide," Mr. Jennings added. The results found that over an extended period of time, planned burning can reduce the severity of bushfires, lessening the amount of emissions generated by bushfire. The Victoria government is building information and science to consider the carbon asset of its public land to drive green jobs and future investment in carbon storage on both public and private land. For more information visit: www.climatechange.vic.gov.au
Stora Enso and Arauco aquiring plantationsChile's Arauco and Finland's Stora Enso last week established a share contribution and framework agreement to move ahead with their acquisition together of 140,000 ha of owned land and plantations, and 6,000 ha of leased lands and other operations in the central and western areas of Uruguay from Spain's Grupo Ence for US$343 million. Source: RISI
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...and one to end the week on...the dead duck
A woman brought a very limp duck into a vet. As she laid her pet on the table, the vet pulled out his stethoscope and listened to the bird's chest. After a moment or two, the vet shook his head sadly and said, And on that note, have a great weekend. Cheers. We welcome comments and contributions on Friday Offcuts. For details on advertising for positions within the forest products industry or for products and services, either within the weekly newsletter or on this web page, please contact us.
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