Friday Offcuts – 26 April 2013
Click to Subscribe - It's FREE! This week’s issue is crammed full of new technology; poles with holes where preservative chemicals are applied from the inside out, wood welding where instead of using traditional glues a wooden dowel is inserted at high speed into the wood being joined (with the welded bond line being achieved in just a few seconds) and study results from a cut-to-length harvesting system operating in Radiata pine in southern Tasmania.In another story this week we have issues in Canada – not of pine beetles nor mills closing. Instead, it’s a transportation shortage (and skilled workers) that’s really beginning to bite and constrain the industry. U.S. housing rates as you know have been booming. They reached 1.036 million units in March on a seasonally adjusted rate, seven per cent higher than February and 46.7 per cent above March 2012, according to the U.S. lumber publication Random Lengths. March’s rate in fact was the highest since 2008. As markets rebound, most mills in B.C. are back on a two-shift capacity with a few mills even adding in a graveyard shift. The problem now though is that forest companies can’t get their products to market. There just aren’t enough rail cars or trucks to shift the increased production. Who would have predicted it 12 months ago but transportation (and increasingly skilled workers) are new issues that B.C. forest products companies are now facing. In forest products transportation and logistics we’ve added this week a number of the key presentations given to around 300 forestry managers, forest owners, harvest and transport planners, transport companies and harvesting contractors at FIEA’s ForestTECH 2012 series that ran in Australia and New Zealand late last year. These can be now downloaded by FIEA members from the Tech Updates section of the website. This now comprises one of the largest collections of technology presentations and papers for forest products companies in Australasia. Finally, to finish the week, take a quick look at this week’s last story. If you think you're busy around your office or work site check out the "Musik Superba". It will set you up for the remainder of your work day. Enjoy.
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Wood transport & logistics resources now on line
At the end of last year close to 300 forestry managers, forest owners, harvest and transport planners, transport companies and harvesting contractors attended FIEA’s very popular ForestTECH 2012 series. It was the largest gathering of forestry operational staff seen for some time. The theme for the technology series was “Improving Wood Transport & Logistics”.ForestTECH 2012 covered: Analysis of successful international models for supply chain optimisation • Remote sensing and real-time tracking of logs and wood products • Innovative systems that integrate planning, operations, harvesting & sales • Materials handling, packaging, freight forwarding and distribution developments • Key issues facing the freight, shipping and transport industries • Innovations for improving harvest optimisation FIEA members can now download selected presentations from the event by clicking here. Resources on this page now total 600 presentations from recent technology events which can be accessed exclusively by FIEA members. It’s now one of the region’s most comprehensive forestry and wood products technology resources. Presentations include; - Fast Truck Now and the Way Forward, Mauricio Acuna, Senior Research Fellow, Australian Forest Operations Research Alliance, Australia - Cable Harvest Planning Solution , Philip Elworthy, Forest Services Manager, Rayonier NZ, New Zealand - Designing & Implementing Low Cost Solutions for Transport & Delivery Efficiencies, Adrian Hatch, GM Sales, ForestrySA - Developing the Climb Max Steep Country Harvester, Kerry Hill, MD, AW Trinder Engineering and Nigel Kelly, MD, Kelly Logging, New Zealand - Cloud Computing for Forest Inventory and Harvest Planning, Enda Keane, CEO, Treemetrics, Ireland - Innovative Tools to Improve Integration & Planning through the Wood Supply, Dr Luc LeBel, Professor, Laval University, Canada - Evolution and Use of Central Dispatch in Australia, Cameron MacDonald, Chief Operating Officer, HVP Plantations, Australia - Exploring the Operational Realities of Applying Optimised Transportation, Damien O'Reilly, Regional Manager, Forests NSW, Australia - Transport Logistics Solver, David Robinson, Chief Operating Officer, Nelson Management, New Zealand - Working with High Productivity Motor Vehicles, Warwick Wilshier, Managing Director, Wilshier & Williams, New Zealand If as an FIEA member you have forgotten your access code, please contact: Jeannette.dekker@fiea.org.nz New Zealand Log Prices - April 2013In-market log prices have received a healthy boost this month to be up by around 6%. Prices of over US$146/JAS for A-grade logs and over US140/JAS for K-grade logs have not been seen since June 2011 and have now increased by 16-17% year-on-year. Pruned logs are selling for an average of US$184/JAS, up US$7/tonne from last month.Prices are continuing upwards based on the stronger data on housing in the US which has been driving up lumber prices. This is causing many sawmills in the US to increase production in anticipation of a rapid rise in demand for timber. In China sawmills are increasing imports to secure volume, which is lifting import prices, though this hasn’t been flowing through to its domestic market. This means that prices may not continue to rise at the same pace, though for now there is high confidence within China and New Zealand and this is contributing to an increasing price trend. As China is still importing high volumes from the Pacific North West as well as New Zealand there is a huge influx of supply and is leading to busy ports and queues for port access. Currently though there is no inventory building and demand is well balanced. So unless there are any large price changes from here there should be a soft landing into the quieter rainy season in the third quarter. The Agrifax log price indicator is up by 4 points to 94 this month due to large increases in both export and domestic log markets. As expected this month the domestic log market has had to increase prices in order to secure supply in the face of rapidly increasing export log prices. Structural prices are up the highest, moving $7/tonne on average across the country. There has been a large increase in the in-market prices in China, though this has been reduced slightly at the wharf gate by a slight increase in shipping prices and a strengthening New Zealand dollar. K-grade logs have had a $9/tonne increase on average to be at NZ$103/tonne. This has seen the unpruned log index gain 6 points this month to reach 102 which, along with the combined indicator, has reached the highest level it has been since May 2011. North Island
NZ Super Fund sells forestry blocksThe New Zealand Superannuation Fund, which on Wednesday said the value of its portfolio topped NZ$22 billion, has sold the bulk of 11 forestry blocks in the North Island to China National Forest Products Trading Corp for an undisclosed sum, with the remaining going to local investors.The Chinese company, a subsidiary of state-owned China Forestry Group Corp, bought the majority of the portfolio, subject to Chinese regulatory approval, after getting the thumbs up from New Zealand's Overseas Investment Office, the super fund said in a statement. The Cullen Fund, so-called for its architect former Finance Minister Michael Cullen, was looking for a buyer for the blocks last year, when it valued the estates at some NZ$91.1 million as at June 30. General manager investments Matt Whineray said the sale would let the fund focus on other domestic and international investment opportunities. The Cullen Fund recently upped its stake in the Kaingaroa Forest, which is still the fund's single biggest asset worth NZ$945.1 million as at March 31, and recently bought a $NZ140 million stake in local IT company Datacom and 11 local dairy farms. The Super Fund's timber assets, which accounted for 6 percent of the fund as at March 31, will still exceed NZ$1 billion after the sale. FITEC merges into Competenz
The Forest Industry Training and Education Council (FITEC) in New Zealand has announced their merger into Competenz. The merger will be effective from May 1, 2013.Ian Boyd, CEO of FITEC, said the main drivers of the merger have been decreasing numbers of trainees (and therefore funding) in FITEC and a push by Government for less industry training organisations (ITOs). FITEC is New Zealand’s industry training organisation for forestry, wood manufacturing (sawmilling, wood panels, and pulp and paper), furniture and biosecurity. Competenz is the ITO for manufacturing, engineering and food and beverage industries. The rationale of the merger with Competenz is based on the strong links between manufacturing and wood processing where there are already overlaps with training qualifications. There are also links with forestry where increasing mechanisation, in-forest log manufacturing, and use of heavy equipment provide a ready relationship with engineering and manufacturing. In addition, the forest and wood industry are keen to keep the wood supply chain intact and industry associations have expressed support for the merger. Importantly, Competenz has provided assurances around maintaining the forest and wood industry training profile and the Rotorua operating base. Competenz and FITEC are aligned on a skills based Board governance model where a Board position will be available for forest and wood industry skills. There will also be an opportunity for the forest and wood industry to have an additional representative attend Board meetings for 12 months on a transitional basis. The FITEC team (RTAs) will remain intact (except for some rationalisation as a result of lower trainee numbers which would have occurred with or without a merger) so there will be little change with the industry interface. The back office functions will merge with their respective Competenz functions with rationalisation taking place where necessary. John Blakey, CEO of Competenz says they are looking forward to working with the industry and Competenz has committed to maintaining FITEC operations in Rotorua; to maintaining sector identity for the industry within its brand; to maintaining the FITEC sector advisory committee structure; and to engaging with the wider industry stakeholder groups. The outcome is expected to be enhanced training services and a stronger financial base to expand future services to the forest and wood industry. Australian Solar Timbers blames carbon tax for job cutsThe managing director of an Australian hardwood flooring manufacturer said the country's carbon tax introduced in July 2012 has contributed to the company's decision to reduce the workforce by a further 30%, after downsizing 11 months ago.Douglas Head said Australian Solar Timbers (AST) in West Kempsey, New South Wales, was shedding 15 jobs - around 30% of the remaining workforce - because of deteriorating sales in 2013 and an increase in its electricity bill of AU$10,000 per month, The Macleay Argus reported. When the company downsized 11 months ago, 20 employees lost their jobs and the log intake was reduced by 75%. Head said that decision came after the company failed to gain a change in the law that would have allowed it to reduce its electricity costs by using wood waste to generate its own electricity. Head said the significant effects of the carbon tax on electricity prices had been an unnecessary handicap, accusing the government of squashing AST's attempts to move into energy as a result of its deal with the Greens. He described the situation as "disheartening" and accused the government of "political hypocrisy." The higher energy costs had combined with the high Australian dollar and flat demand from the building industry due to February rains to result in the latest round of lay-offs, Head added, a decision he described as difficult but unavoidable. Source: The Macleay Argus Cut-to-length harvester productivity researchNew research in Australia has quantified the productivity and fuel consumption of various machines operating in Pinus radiata. The cut-to-length logging system analysed included a tracked feller buncher, processor, forwarder and grapple loader.The system was producing pine pulp logs from 30 year old Pinus radiata trees. Stocking was 204 trees per hectare and the average tree size was 2.58 m3. The terrain was relatively flat. The large trees size resulted in good productivity levels, with the feller buncher achieving 122.2 m3 per hour, the processor 84.3 m3 per hour and the loader 100.8 m3 per hour. The logging residues remaining infield after harvesting was determined to be 237 tonnes per hectare. Stem wood constituted the largest component of the residues, and this was mainly due to a large thin-end diameter of 10 cm. Fuel consumption for the feller buncher was 41.4 l/hr (10.9 gal/hr), the processor was 39 l/hr (10.3 gal/hr), the forwarder 24.9 l/hr (6.6 gal/hr), and the loader 36.6 l/hr (9.7 gal/hr). The title of the research was “Machine productivity and residual harvesting residues associated with a cut-to-length harvesting system in southern Tasmania”. The research was published in Southern Forests: A Journal of Forest Science, 2012, 74(4): 229 to 235. The authors were M Ghaffariyan, J Sessions and M Brown. For a more complete account of the research please access the journal here. For more information on this story, check out this month's R&D Works Newsletter
Wood welding as a gluing alternative
Gluing is a valid and extensively used alternative to paneling in the furniture industry. However, adhesives, which are generally produced by the petrochemical industry, require curing times and multiple handling, which limits the production flow and flexibility required for customized production.Rotational wood-dowel welding has been shown to rapidly produce wood joints of considerable strength without any adhesive and provides a promising alternative to gluing. The process consists of inserting dowels into smaller-diameter pre-drilled holes at rapid rotation. The friction between the dowel and substrate during insertion combined with high speed dowel rotation causes high temperatures that induce the lignin to soften and the wood to weld. A recent study conducted at the Centre de recherche sur le bois, Laval University, Quebec, Canada, examined the suitability of wood welding technology for producing composite panels for furniture applications. The results showed that wood-dowel welding could be suitable for producing panels. The technique could then help improve production flow and flexibility by eliminating curing times for adhesive polymerization as well as multiple handling. Research into wood welding is currently being undertaken at the University of Melbourne. For further information, contact benoit.belleville@unimelb.edu.au . Difficulty in shipping B.C. wood products
B.C. forest companies say they can no longer get enough rail cars to move their products to market at a time when the U.S. housing market is going through a major recovery. U.S. housing rates topped one million in March on a seasonally adjusted rate, more than double the low point hit during the recession, prompting a run on rail cars that Canadian mills use to get their wood products to market. It’s not just lumber that’s being affected. Oriented strand board, plywood and even pulp inventories are building at the mills, forcing companies to turn to trucks – which are also in short supply.“If you had a pickup truck, we would use it,” Bob Hayes, transportation vice-president at Canfor Corp. said. Earlier this year, Canfor came within four hours of shutting down a pulp mill because of a rail car shortage. Pulp production is also up and because it is perishable, it cannot be stored outside, Hayes said. Canfor has erected a big-top style tent at one of its Prince George pulp mills to store inventory but so far hasn’t had to use it. However, the rail car crunch is adding to costs, from additional trucking to causing ships to be delayed in port, he said. “We were trucking this week from Prince George to Squamish terminal. We have never done that before. We had to find emergency trucks this weekend to go from Prince George to Squamish to keep the product flowing to the vessels and to keep the warehouses from overflowing,” Hayes said. “I think transportation and the lack thereof, is going to be the biggest challenge for B.C. forest products companies to get their product to market in 2013 and beyond. Usually economics will drive solutions, but right now, that solution is to constrain the industry.” Source: Vancouver Sun EU biofuel subsidies providing only minor gainsEuropean taxpayers and consumers spent between 9.3 and 10.7 billion euros subsidizing biofuels in 2011 with relatively small gains for the environment and the economy, according to research issued by the International Institute for Sustainable Development.The European Union and its member states provide financial support to the biofuels industry with the intention of reducing carbon emissions, improving rural incomes and strengthening energy security. The support is mainly provided by setting mandates for consumption (which guarantees a market for producers, and raises prices for consumers) and exempting the industry from excise taxes. A new report by IISD’s Global Subsidies Initiative ( www.iisd.org/gsi) — an independent not-for profit research group — assesses the costs and benefits of EU biofuel subsidies in reaching their policy objectives. The government support granted to biofuels in the EU is striking when compared with the size of the biofuels industry and the number of jobs it creates. The 9.3 to 10.7 billion euros provided in 2011 is roughly 60 per cent of the entire turnover of the European biofuels sector, which was 13 to 16 billion euros in the same year. It also far outweighs the 6.5 billion euros the private sector has invested in biofuel production facilities from 2004 to the present. The small contribution that biofuels make to tackling climate change also throws EU support policies into question. Biodiesel emits more greenhouse gases than its fossil-fuel-based equivalent when taking indirect land-use change into account (the carbon emissions that result from clearing land to produce biofuel feedstock). Ethanol results in some emissions savings, but at a high price. Each tonne of avoided CO2 emissions costs between 432 and 493 euros — more than a hundred times the current price of a tonne of CO2 emissions in the EU’s Emissions Trading System. “In many cases the EU is actually doing more environmental harm than good by subsidizing biofuels. And where there is a reduction in carbon emissions, it’s very far from being cost-effective,” said Mark Halle, international vice-president of IISD. More >> Modified wood selected for technical project
The demands of a highly technical architectural project in the Netherlands have been met by Accoya. Reconstruction of the Pro Persona medical clinic on the outskirts of rural Stuwwalbos, Nijmegen, was designed in a joint project by BogermanDill in Amsterdam and SBH Architects and Consultants in Arnhem. The impressive plans for a distinctive wooden superstructure required curved boards as long as 4.4 kilometres - the equivalent of 2.7miles - to be created out of sustainable timber.It is almost impossible to create the curved shape out of most wood species, but Accoya was able to rise to the challenge, thanks to the technical process and the wood’s flexible and durable makeup, which is modified through to the core. Following the acetylation process, the pieces were curved into specially shaped blades that were steamed and bent by De Jong’s Houtwaren in Drogeham, the Netherlands. Unlike other timber treatments on the market, acetylation does not affect the flexibility of the wood’s cells. Dating back to the early sixties, the original clinic buildings had failed to meet current quality standards and had to be demolished in order to make way for new buildings. The new clinic building in Nijmegen, with a rough masonry substructure and a distinctive wooden superstructure, forms part of the master project for Pro Persona and the extensive use of Accoya has resulted in a bold and inspirational exterior. The finished wooden cladding, which from a distance gives a copper like appearance, stands in striking contrast to the rough texture of the brick and concrete basement. BogermanDill Architects commented: “Accoya was chosen as it has proved to be the only timber product that would meet the demands of this complex technical design, and the unusual curves created from such long timber pieces help to reduce the typical regimental appearance of a stone building." Poles with holes add value for customers
We all know that we’d prefer to export more than just a log of pine to overseas markets. At the same time, the NZ Inc desire to add value to our raw commodities such as trees is almost tiresome through over-use.So, it is a pleasure to be able to highlight a company and person doing something different and in their case, making a better pine pole. The firm, TTT Products, isn’t a small firm. Its North Island headquarters at Tuakau covers 20ha, specialising in creating pine poles of many different sorts. It may even seem to be a coals to Newcastle scenario, but TTT exports a fair number of these poles all around the Pacific and even to Europe and North America. This is partly because only some softwood species like pinus radiata can take up the anti-insect, anti-corrosion chemical preservatives that then guarantee a longevity when buried in the ground. However, the other clever product from TTT, partly ‘inspired’ by the recent Christchurch earthquakes, is what is called a MultiPole. It is a pole that’s actually a tube – TTT managing director John Reelick having perfected (and is keeping secret) a means to drill a long 50 – 150mm diameter hole in a pole. The pole is no weaker, and indeed, because the preservative chemicals can also be applied from the inside out, even more protected against rotting when in the ground. To see the product details click here and here. (Source: StickNZ.net) Earth day's top 10 forestsIn honour of Earth Day on 22 April, online travel adviser Cheapflights.com has picked its top 10 favourite forests from across the planet including New Zealand’s Waipoua Forest and Australia's Daintree Rainforest. More >>.NZ export log market update New Zealand exportsAt-Wharf-Gate (AWG) prices have risen by around 3-5% in the North Island in the last month, as the AWG price rises have been tempered by the rise in shipping rates and in the exchange rate. Prices for A-grade logs are up 5% in the Northern North Island and this is now a 37% rise year-on-year. Pruned logs are now up by 46% year-on-year, although the rise in pruned log prices occurred some months ago and have been mostly flat since July 2012. The value of export logs will now be nearing the record highs of mid-2011. A-grade logs are just $9/tonne less than the highest average price of NZ$120/tonne in April 2011 and the K-grade logs have kept a high value relative to the A-grade logs, just $1/tonne lower than the 2011 peak. Exports to China continue to trend upwards, with just under 1.3 million m³ exported in February. Exports to South Korea are also trending upwards with the 12 month average increasing month-on-month since September, aside from a lower month in February. Exports to India however still remain patchy and have varied from over 200,000m³ in November down to 57,000m³ in January. There was 71,180m³ exported to India in February, though the 12 month average is around 110,000m³. China China’s imports of New Zealand logs have been strong for the start of the year, with the rolling quarter total to February up by 40% year-on-year. In February a total of 412,100m³ of logs was imported into China from New Zealand, representing 30% of China’s total log imports for the month. February is typically the lowest month for imports to China due to the Chinese New Year. The percentage of China’s imports that is lumber has increased recently to around 35%. Logs are still the largest import but there has been an increasing trend away from logs since around 2008, when just10% of wood was going into China as lumber. The last significant log price rise in 2010/11 saw the lumber percentage lift from 26% to 32% as the higher value of wood was attracting the higher value lumber from the Pacific North West. It resulted in New Zealand’s supply of lumber decreasing from 7% of exports to 4%, as the higher prices for logs saw more supply diverted into log exports. It will be interesting to watch these figures to see the effect of the US lumber price rises and China’s log price rises. South Korea South Korean imports of New Zealand logs trended upwards at the start of 2013. Total shipments for the rolling quarter to February were up 11% year-on-year and only 1% below the previous quarter, despite the typically low February volumes. Total imports into South Korea are down by 3% in the same period year-on-year, due to huge drops in volume from the Pacific North West (PNW). Apart from two separate months where South Korea was flooded with logs from the PNW, overall, 2012 saw reduced volumes of wood from Canada and the US and the start of 2013 is continuing in this trend. The rolling quarter to February total import volumes were down by 24% year-on-year. Due to this, New Zealand’s market share for logs to South Korea has risen from 58% to 67% in the last year. Lately the South Korean won has followed the Japanese yen down which will be hurting log importers. The price pressure from China means that they will have to increase prices to match the currency falls. Source: www.nzxagri.co.nz/agrifax Jobs
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...and one to end the week on...Musik SuperbaAnd you reckon you can multi-task. Check this guy out. Amazing.  And on that note, have a great weekend. Cheers. Brand PartnersOur Partners & Sponsors Friday Offcuts is made possible through the generous support of the following companies.
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