Friday Offcuts 14 June 2013
Click to Subscribe - It's FREE! At last - some positive news for New Zealand wood producers. Building activity is on the up. Housing starts in the first three months of this year grew at the fastest quarterly pace seen in more than a decade. According to Statistics New Zealand, the growth, being driven by the Canterbury rebuild and activity around Auckland, was underpinned by a 12 percent boost in residential activity to NZ$1.1 billion, the biggest increase since September 2002. This along with continued buoyancy in key export markets like the US and a sharp drop in the NZ dollar against the US currency this week (some analysts are now predicting that the peak may have already been reached) is indeed bright news for Kiwi wood processing and manufacturing companies.From Australia, ABARE’s latest report on Australian Forest and Wood Products statistics tells us that for the first time in Australia, the volume of logs harvested from hardwood plantations has exceeded that harvested from native hardwood forests. The turnaround has been dramatic jumping from under 1 million cubic metres of wood sourced from hardwood plantations in 2000-01 to 5.2 million cubic metres in 2011-12. We've also got an update on WoodEXPO 2013 with momentum really starting to pick up (note, if wanting to exhibit at the Australian leg of this series, there are only a couple of stands left with just three months to go so you’ll need to make contact very soon if wanting to participate at this inaugural wood products show), we have an interesting story on a very public campaign in the UK on wood being supplied to existing wood processors rather than feedstock to bio-energy operations and an update on moves in the USA to introduce new rules limiting formaldehyde emissions from composite wood products (particleboard, medium-density fibreboard, hardwood plywood, and the finished products made from them), either manufactured or imported into the country. Finally, reports last week on the rapid decline for print media over on-line advertising was reinforced with the latest forecast from PwC (see story below). Even with 2012 perhaps not being a stellar year, on-line advertising grew by a very respectable 12% and the outlook over the next five years is just as upbeat. Mobile advertising with the proliferation of smartphones also jumped a staggering 175% in the same year. Advertisers in Friday Offcuts will back up the value of this medium. It's a very powerful tool to get your message out to those working in the New Zealand and Australian forest products sectors. If you’re serious about getting your message out there, finding the right person for your business or for company or product branding, then please give us a call to see how we can best meet your needs.
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NZ home building charges away in first quarterNew Zealand house building grew at its fastest quarterly pace in a decade in the first three months of the year as the Canterbury rebuild and heating Auckland property market spurred the construction effort. The volume of building work put in place rose a seasonally adjusted 5.8 percent to NZ$2.02 billion in the three months ended March 31, accelerating from a pace of 2 percent in the December quarter, according to Statistics New Zealand.That’s the highest quarterly volume since September 2008. The growth was underpinned by a 12 percent boost in residential activity to NZ$1.1 billion, the biggest increase since September 2002, and accelerating from a pace of 1.6 percent in December. The boost in residential construction was more than economists at Westpac and ASB were picking, and may have spurred more economic growth that expected in the first quarter. Figures last week showed 17,922 new dwellings have been issued building consents in the 12 months ended April 31, worth NZ$6.66 billion. That’s 21 percent more consents issued than a year earlier, at a 26 percent greater value. The building sector is seen as the driving force of the economy in coming years with the NZ$40 billion reconstruction effort in Canterbury and a heating property market in Auckland struggling to meet increasing demand, though that’s creating risks to New Zealand’s financial stability as property values threaten to reach bubble-territory. Source: Scoop Hardwood plantations exceeds native forest harvestsFor the first time in Australia in 2011-12, the volume of logs harvested from hardwood plantations has exceeded the volume harvested from native hardwood forests.In releasing Australian forest and wood products statistics, Executive Director of the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), Paul Morris, said plantation logs (both hardwood and softwood) now comprise 81 per cent of Australia's total log harvest, compared to 56 per cent in 2000-01. "The volume of logs harvested from the hardwood plantation estate has grown at an exceptional rate since 2000-01, increasing from 975 000 cubic metres to 5.2 million cubic metres in 2011-12," Mr Morris said. "This growth was historically driven by strong overseas demand for Australian woodchips." Hardwood plantations continue to be grown predominantly for pulpwood in Australia, with 98 per cent of logs harvested from these forests used for paper manufacturing and woodchip exports in 2011-12. Overall, the supply of logs harvested from both hardwood and softwood plantations in Australia was 19.2 million cubic metres in 2011-12, compared to 4.5 million cubic metres harvested from native forests. "Although exports of most wood products fell in 2011-12, woodchips remained Australia's largest wood product export by value, but at the same time recorded the largest decline in export value," Mr Morris said. The report, Australian forest and wood products statistics is available on the ABARES website. World's largest Redd project approvedRimba Raya, the world's largest REDD+ project, has finally been approved by the Indonesian government and verified under the Verified Carbon Standard (VCS), a leading certification standard for carbon credits.The 64,000-hectare forest carbon project in Indonesia's Central Kalimantan Province on the island of Borneo is expected to reduce carbon dioxide emissions by 119 million tons over its 30-year life-span. The emissions reductions will come from avoiding drainage of area's carbon dense peat lands and conversion of its forests to oil palm plantations. According to SCS Global Services, the auditor that verified the project's carbon accounting, Rimba Raya reduced emissions by 2.1 million tons between July 1, 2009 and June 30, 2010, resulting in the largest-ever number of Verified Carbon Units (VCUs) generated in a single year. Now approved, Rimba Raya may provide a green light to other REDD+ project developers in Indonesia. Meanwhile, Rimba Raya's backers, including Russian energy giant Gazprom and the insurance firm Allianz, can now sell tradable carbon credits in the voluntary carbon market. Credits in the voluntary carbon market are typically used by companies to "offset" their greenhouse gas emissions for corporate social responsibility programs, rather than complying with climate regulations. Source: The Guardian Tasmanian Forest Agreement legislation now lawThe Tasmanian Forest Agreement legislation was given Royal Assent on 3 June 2013, and is now law. The Tasmanian Forest Agreement Act 2013 reduces the high quality eucalypt sawlog supply from State forests by 54 percent to 137,000 cubic metres per year and designates 515,000 ha of future reserve land.Some 101,000 ha of this land will be made into reserves later this year subject to a positive durability report, and 291,000 ha will be made into reserves after October 2014 if Forestry Tasmania has achieved Forest Stewardship Council certification. A further 102,000 ha can be made into reserves after March 2015. A determination on reservation of a final 21,000 ha of land can be made after Jan 2022. As reported by Steve Whiteley, Acting Chief Executive Officer, Forestry Tasmania this week, the passing of the Agreement into law is not the end of the process – for FT it marks the beginning of a new set of challenges, including some significant adjustments to the way the organisation operates. FT cannot conduct native forest harvesting that requires a Forest Practices Plan in the future reserve land (except areas that can become reserves after 2022). FT cannot sell the land or transfer it to any other entity. Nor can it grant a lease or licence over the land for a period of more than 12 months without the permission of the Nature Conservation Minister. The TFA and the decision by Government that FT in future will focus on the management of production forests will see the proposed transfer over time of more than 700,000 ha of State Forest to the Parks and Wildlife Service. Source: Forestry Tasmania WoodEXPO 2013 “ups the ante”
For the first time in this region, Australian and New Zealand wood products companies are getting their LIGNA, Atlanta or Portland Wood Working Show “down-under”.When have you had the opportunity of meeting with all major technology and equipment providers for sawmilling, wood manufacturing and wood panels from around the globe – in this region – and at the one time? Sure, there have been other shows. The focus though has been across the forest products sector – or it has had a community focus – or it has been aimed at another part of the sector. “WoodEXPO 2013 running in three months’ time is purely a business-to-business event” says the Forest Industry Engineering Association (FIEA) Director, Brent Apthorp. “It’s also the first event of its type in Australasia". “Buy-in by the programme participants on both sides of the Tasman has been fantastic” says Brent Apthorp. “For the Australian and New Zealand wood producers who have – and still are – going through some painful adjustments to their operations– the opportunity of meeting with these world leaders in sawmilling, wood manufacturing, wood panels and timber machining equipment at one location over just a couple of days is also real shot in the arm”. The list of participating companies from Austria, Germany, Finland, Italy, the US, Canada, Indonesia, Australia and New Zealand signed up to date is impressive. Check out the latest listing on the event website, www.woodexpo2013.com. As well as the opportunity of meeting with the global leaders of wood processing equipment and new products, a world class series of technology workshops have been set up for local companies over the two days that the exhibitions are running. Two hour workshops covering everything from; new generation log and lumber scanning systems, developments in high performance saw-lines, improving automation in the mill, adhesive developments and application systems for finger-jointing, plywood, MDF and particleboard, new developments and troubleshooting for high speed planer operations, changes in saw design to improve sawing performance and productivity and veneer drying developments are being covered in over 25 presentations. A one-day conference, a Wood Processing Summit, will also provide something quite different for wood products companies in both countries. Rather than small incremental steps to improve how we’re currently processing our wood resource, the one-day summit is going to provide a unique look into some of the more innovative technologies out there at the moment that potentially will change our current operations. Additive manufacturing, automated and robotics systems, CT scanning, new building systems for design, construction and delivery and new chemical extractives using wood are just some of the technologies being covered. It’s a new opportunity to learn, to be inspired, to network, to meet and discuss your own company’s plans with global equipment suppliers – in your own country. Check out WoodEXPO 2013 on www.woodexpo2013.com ![]() Tree-planting could be made more 50% more efficient Progress in technology and machinery has increased the efficiency of felling operations but replanting is still a manual, time-consuming process. However, the use of modern digital technology and drones for aerial photography can lead to major gains, argues Hans Thunander. He has developed a totally new tree planting concept that envisions a 50-percent increase in efficiency within ten years. His method can be likened to a two-stage rocket: Vision 2015 and Vision 2023. The first stage, Vision 2015, involves combining GPS technology with a remote-operated flying drone, which photographs a new clear-cut area. The image is then interpreted on a computer, making it possible to plan the replanting process in detail: to decide exactly how many plants can be planted, how densely, and precisely where. Because all the facts about the terrain and soil conditions are included, it is possible to achieve the optimal plant density. For example, a three-metre clear strip can be left along a stone wall, 2,500 plants per hectare can be put on a fertile slope and 1,400 plants per hectare can be used in an area of thin soil. “Too many plants are used unnecessarily today because they are not optimally planted according to the soil fertility and type of terrain,” Thunander explains. “It’s also hard to know now precisely how densely you’re planting when you just look around as you go. GPS gives you better control.” Another important aspect of the technology involved in Vision 2015 is scarification, which he says can also be made far more efficient. Instead of the current procedure of carving out two parallel rows on the clear-cut area, the scarifier can be equipped with the same kind of autopilot as used in agriculture and be driven in a new and more efficient driving pattern designed by Thunander. If the scarifier drives along every second strip on its outward journey with precise control of the centre-to-centre distance between the plants and then takes the omitted strips on its return journey, the optimal strip density is achieved. Backing on the turn strip is also unnecessary and the total operating time is significantly reduced. “Autopilots have existed in the agricultural industry for a number of years and are cheaper now,” Thunander says. “The precision along the forest edge has not been ideal but that’s no longer a problem. A detailed image of the clear-cut area makes it easy to design such a driving pattern.” By itself, Vision 2015 can make replanting about 25 percent more efficient, Thunander says. Time and technology will then quickly work towards the next stage, Vision 2023. By then it will be possible to have 3D photos from the drone. The images will be transmitted immediately when the drone lands and much of their interpretation will already have been done automatically so the scarification and planting can begin directly. “There’s already a multitude of drones, the software is easy to use and the whole field is developing incredibly fast,” Thunander says. “Fully automatic image processing will lead to major benefits.” Not to mention fully automatic planting, which is the revolutionary aspect of Vision 2023. This involves a remote-controlled machine, which Thunander is working fulltime to develop now. The machine is not yet ready to be presented. All he can say today is that first “molehills” of loose soil are “screwed up” using a minimum of energy and then prepared for a planting tool. The tool then makes a hole in the heap and inserts a plant. A small amount of wet, fertilised planting soil is then automatically dropped along with the tree plant into its hole. He calculates that this method can make tree planting a full 50 percent more efficient. “These screwed-up molehills and the planting soil are decisive factors in my concept,” he says. “Much of the benefit depends on knowing that the plant will survive. That’s the key to progress – you’re not selling your work, you’re selling a result.” FSC introducing satellite remote sensing
Over the last three years the Forestry Stewardship Council has participated in a series of trials, financed by the European Space Agency, to assess the potential value and utility of satellite remote sensing to strengthen and increase the quality and transparency of the forest certification process. Having satisfied itself that this technology would be of significant value, FSC has now initiated TransparentForests©, a study to assess the viability of a web-based Forest Certification Information System (FCIS) in delivering an independent source of geo-spatial data to support better forest certification. The FCIS will integrate Earth Observation (EO) satellite mapping systems, global positioning systems (GPS) and global navigation satellite systems (GNSS) in a web-based geographic information system (GIS), specifically customized for the needs of FSC and its stakeholders. For Certification Bodies, TransparentForests will introduce a source of independent, up-to-date and spatially accurate data with which to plan and undertake audits. It will also offer a platform for stakeholder consultations, especially for forest communities. Environmentally-important features and assets in forests will be identifiable, and stakeholders will be able to monitor their status. As a result, TransparentForests should increase the robustness of the forest management certificates FSC issues. It should also result in greater stakeholder engagement and process efficiency for both Certification Bodies and forest operations in preparing for and undertaking audits. The feasibility phase of the study was initiated in January 2013. A review of the status and suitability of the core technologies – EO, web GIS and satellite navigation systems – has been completed. User needs have also been evaluated, based on a workshop with Certification Bodies, Accreditation Standards International (ASI) and selected forest operations, held in February 2013. The workshop allowed the project team to identify user requirements, which will be reviewed by the Certification Bodies, ASI and forest operations in coming weeks. For more information on the project, click here.
Associated Kiln Driers plans on expansionA COLAC company is the latest to benefit from the State Government's Greater Geelong Industry Fund (GGIF). Associated Kiln Driers (AKD) will receive an AU$250,000 grant towards upgrading equipment at the company's Irrewarra Sawmill, creating up to 15 full-time jobs. The AU$947,500 project will also improve AKD's capacity to become more competitive with larger European mills importing lumber into Australia."Adding a second shift at Irrewarra will enable AKD to produce an additional 20,522 cubic metres of sawn timber for the domestic market and an additional 15,000 tonnes of woodchip for export out of the Port of Geelong to markets in China and Japan" State Manufacturing Minister David Hodgett said. Source: Geelong Advertiser UK adverts campaigning against biomass subsidies
Norbord is behind a series of ads claiming that subsidised energy generators are able to pay "more than double" the price paid by manufacturers for wood. That has driven up UK prices 60 per cent in the last five years, it claims. The biomass industry prefers to cite official statistics from the Forestry Commission showing that over the past twenty years, average timber prices have fallen by 29 to 42 per cent in real terms. Norbord's financial results show its profits are up, increasing more than fivefold to the first quarter of 2013 from the same period last year. The Canadian-based company expects stable performance of its European business, which includes three UK factories. Richard Crowhurst, editor of Enagri BioenergyWeekly, which highlighted the figures, said: "With such a large rise in its profits and European output at a time when UK timber prices are falling and forestry investors are losing money on their day-to-day activities, the fact that Norbord Inc. is lobbying MPs and the public to oppose the use of biomass to generate low carbon renewable energy on the grounds that it raises wood prices is at best opportunistic and at worst deeply cynical." The Norbord campaign also cites a joint report published by the RSPB, Friends of the Earth and Greenpeace last November that claimed burning biomass could be more environmentally damaging than coal. The "Dirtier than Coal?" findings were rejected by the government and widely criticised at the time for extrapolating from an unrealistic worst-case scenario. Source: Utility Week ![]() Long Reach woodchip mill in Tasmania reopensA Gunns woodchip mill in northern Tasmania has reopened two years after it closed, on the back of new contracts with Japanese customers reports the Australian. The Gunns mill at Long Reach, near the fallen company's proposed pulp mill site in the Tamar Valley, will supply 500,000 tonnes of plantation woodchips by March next year.In a rare piece of good news for the ailing Tasmanian forestry sector, receivers KordaMentha have hired more than 100 contractors to work the plant. KordaMentha's Bryan Webster says 10 shiploads to Japan have been locked in and up to AU$3.5 million will be injected into the state's economy. On-line advertising continues to boom
Newspapers may be a dying medium, but online advertising is showing double digit-growth and will top more than half a billion dollars in 2017. The forecasts from PwC's 2013 Global Entertainment and Media outlook, released last week, suggest the digitisation of New Zealand's entertainment and media businesses is paying off.PwC's analysis shows traditional newspaper advertising's "rivers of gold" will continue to slow to a trickle, declining at an average annual rate of 5 per cent. The report shows online advertising grew more than 12 per cent in 2012 and is forecast to continue growing at nearly 9 per cent a year for the next five years. By 2015, online will become the second-biggest medium for advertising after TV, and revenues will reach NZ$543 million by 2017. The proliferation of smartphones, tablets and mobile devices is also changing the advertising landscape. "Mobile advertising is taking off in New Zealand and has grown a massive 175 per cent in 2012 as more Kiwis carry smart phones, while our broadcasters are successfully monetising online catch-up TV content by selling advertising," Brabin said. For more details on the PwC 2013 Global Entertainment and Media outlook click here Source: Stuff EPA proposes formaldehyde rules for engineered wood floorsThe Environmental Protection Agency (EPA) has proposed new rules that would limit how much formaldehyde may be emitted from hardwood plywood, medium-density fibreboard, particleboard and finished goods—including engineered wood flooring—that are sold, supplied, offered for sale, manufactured or imported in the United States.The rules are a result of the Formaldehyde Standards for Composite-Wood Products Act of 2010, which directed the EPA and other federal agencies to develop means of enforcing the emissions standards. The 2010 law was based on the California Air Resource Board (CARB) model, which aimed to regulate emissions from all sources, including the formaldehyde from resins used to create plywood and engineered wood flooring. The EPA’s standard would set limits on how much formaldehyde may be released by composite wood products. It sets standards for testing, product labelling, chain of custody documentation and enforcement. According to the EPA’s description of the regulations, it also includes “protective yet common sense exemptions from some testing and recordkeeping requirements for products made with no-added formaldehyde (NAF) resins.” The rules would also create a framework for a third-party certification system. The third parties would be responsible for auditing composite wood panel producers, conducting formaldehyde emissions tests and ensuring manufacturers’ quality control procedures comply with the Toxic Substance Control Act Title VI regulations. More information on the rules, including background and a full fact sheet, is available here. Source: National Wood Flooring Association
On-line timber course enrolments now openThe University of Tasmania’s Centre for Sustainable Architecture with Wood (CSAW) has announced that enrolments are now open for Second Semester entry into its Graduate Certificate in Timber (Processing and Building) course. The second semester starts July 15, 2013.This flexibly-structured, online course provides specialist study for those involved or interested in the design, construction, maintenance and management of timber-rich buildings and structures or the production and distribution of timber and wood products. “Because it is an online course it is accessible for students all over Australia and internationally” said CSAW Director, Associate Professor Gregory Nolan. “Students in the course are from very different backgrounds: such as architects, timber producers and sales staff, foresters, engineers, teachers, but all have a keen interest in using wood. It can be completed part-time from work, home or anywhere with an internet connection.” said Associate Professor Nolan. “Potential students without degrees working within industry are encouraged to apply. There are structured pathways for their entry” he said. For a comprehensive outline of the course by Associate Professor Nolan please see his podcast at: www.youtube.com/user/WoodArchitecture Jobs
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...and one to end the week on...no one believes seniors
An elderly couple was celebrating their sixtieth anniversary. The couple had married as childhood sweethearts and had moved back to their old neighbourhood after they retired. 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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