Friday Offcuts – 6 March 2026
Click to Subscribe - It's FREE! Welcome to this week’s issue of Friday Offcuts.While we remain mindful of the human and global impact of the conflict in the Middle East, its local effects are already surfacing through rising fuel and freight costs. We will continue to track how these developments shape our sector. In this week’s news, the NZ Forest Owners Association has outlined its priorities ahead of the 2026 General Election. We also preview the regulatory reset set to lead discussions at Environmental Forestry 2026, in Rotorua (23-24 March). Market signals remain mixed: ABARES data suggests flat growth for Australian forestry, though ANZ reports rising sawn timber demand in New Zealand as construction recovers. We also dive into energy and innovation, covering sustainable aviation fuel, wildfire biomass research, and freight productivity. Finally, don't miss this month's NZFOA workshops on proposed vocational training changes. Click here for full details. Read these stories and more in this week’s issue of Friday Offcuts.
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This week we have for you:
NZ Election 2026: What forest growers need
As New Zealand moves towards the 2026 General Election, the New
Zealand Forest Owners Association has consolidated a clear set of
priorities it believes any incoming government should consider to
support the stability and productivity of forest growers. As an industry body advocating on behalf of its members – commercial forest owners – our role is not to endorse political parties but to ensure that whoever forms the next Government understands the long-term policy settings required for investment certainty, regional employment and environmental performance. Our 2026 Policy Priorities span three focus areas – people, environment and trade – shaped by member feedback and the current pressures and opportunities facing the sector. People: Workforce development, safety There are approximately 40,000 people working across the forestry supply chain, at least 8000 of those in forestry. New Zealand's professional foresters and the workers that support them are a top priority for the forest industry. With the future of forestry relying heavily on a skilled and safe workforce, NZFOA’s 2026 policy priorities include:
More >> Source: New Zealand Forest Owners Association Image: Elizabeth Heeg, Chief Executive, NZFOA  New data shows flat growth for forestry and challenges ahead
AFPA has welcomed the new Australian Bureau of
Agricultural Resources Economics and Sciences (ABARES) forecast
showing agricultural production is expected to hit a record $107.4
billion in 2025-26, when combined with the forestry and
fisheries sectors.The ABARES March 2026 Agriculture Commodities Report highlighted the overall value of production for forestry is expected to remain stable with limited growth over the next five years. (Note, these figures do not include the processing of wood products for housing from Australia’s forestry industry, which is the sixth largest manufacturing sector.) AFPA Chief Executive Officer Diana Hallam said: “While these new figures confirm the vital role of sustainable forestry in Australia for essential products, the environment, exports and economic growth, the report also identified serious challenges and headwinds for our sector. “Some of these challenges and risks include high manufacturing and energy costs, greater use of structural steel in residential and mid-rise construction as well as a growing amount of imported timber products of varying quality flooding the Australian marketplace, including from China. “The report also highlighted a gradual decline in housing with new dwellings increasingly weighted towards higher-density buildings, tempering demand for timber. These figures reaffirm the importance of having policy alignment with Australia’s Timber Fibre Strategy, which outlines opportunities for the industry to make a greater contribution to achieving national goals, particularly in improving carbon, innovation and housing construction outcomes.” The ABARES figures showed the value of forestry exports was due to fall by five per cent in 2025-26 to $2.74 billion. Ms Hallam said: “It’s absolutely vital that Australia’s forest products and innovative forestry supply chain remains strong and continues to innovate, thrive and grow. “Earlier this year, we submitted our pre-Budget 2026-27 submission, which reiterated the importance of continued industry support from the Federal Government for the successful Support Plantation Establishment Program and Wood Processing Innovation Program. “We must also ensure the 80,000 Australians directly employed across Australia’s forestry industries have a strong and vibrant future, which is essential for national productivity, our environment and communities everywhere.” Source: AFPA Environmental forestry: Are you ready for the 2026 reset?With the New Zealand forestry sector facing a massive regulatory reset and intensifying environmental pressures, the upcoming Environmental Forestry 2026 conference is pivoting away from high-level theory to focus on the immediate, practical needs of forest managers and planners.While previous discussions in the sector have centered on the broad shift toward “applied solutions,” the 2026 event – taking place 23-24 March in Rotorua – is specifically designed to answer the operational question: “What will you bring back to the office from this event?”  The programme focuses on four strategic pillars currently reshaping the industry landscape:
The event is supported by Te Uru Rākau – New Zealand Forest Service, NZFOA, and a wide range of technology and research partners. More >> Source: FIEA  New SA biofuel plant to turn forestry residues into jet fuel
Leading low carbon liquid fuels company HAMR Energy has
announced that its $700-800 million sustainable aviation fuel production
facility will be located in South Australia after receiving
backing from the State Government.The project will be the first-of-its kind in Australia, utilising global engineering firm Honeywell’s world-leading technology and site selection is a key part of HAMR Energy’s strategy to produce SAF to decarbonise air travel and create hundreds of jobs in the region. HAMR Energy is now undertaking due diligence on sites suitable for major industrial developments with the support for the South Australian Government. The facility, when up and running, will convert 300,000 tonnes of low carbon methanol, made from plantation forestry residues and hydrogen into approximately 140 million litres of SAF. That is enough to decarbonise around 4.5 million economy-class passenger trips between Adelaide and Melbourne each year and will help close the estimated global SAF supply shortfall 10 million tonnes by 2030. The project will create hundreds of construction jobs and dozens of long-term operational roles, attracting hundreds of millions of dollars of investment to the state. It will support state and federal government priorities to establishing a domestic SAF industry, strengthening fuel security while helping the aviation industry meet emission reductions targets. The South Australian government and HAMR Energy have both recognised the significant contribution LCLF can make to the state’s economy. Plantation forestry residues from the Green Triangle, centred around Mount Gambier, will be converted into fuel by HAMR Energy after it signed supply agreements with local sustainable forestry firms including OneFortyOne. This in turn will provide an additional revenue source for the forestry industry, supporting the regional economy. David Stribley, Co-founder of HAMR Energy, said: “We are proud to be strengthening fuel security for the nation, while contributing to the South Australian economy and creating local jobs. Selecting South Australia as the home for our large-scale SAF facility is a strategic decision that builds on our investment in Victoria. The state’s world-class infrastructure, commitment to clean energy, and proximity to sustainable feedstock sources make it an excellent location to accelerate decarbonisation in aviation.” Hon. Joe Szakacs, Minister for Trade and Investment, said: “Once again we’re seeing South Australia at the forefront of world-leading innovation in the global efforts to decarbonise. This is a massive vote of confidence in our state and will deliver significant economic impact. But most importantly, this investment will create hundreds of secure and well-paid jobs for South Australians. An investment of this size doesn’t happen by accident. It follows persistent work and considered planning. Our Government warmly welcomes HAMR Energy’s backing of South Australia.” The announcement comes after HAMR Energy’s AUD 10 million Series A funding garnering support from partners Airbus, Qantas and thyssenkrupp Uhde. Source & image credit: HAMR Energy --(2022)2.jpg) NZ Govt to drive investment in new energy projects
The Government is leveraging public sector energy demand to
drive new energy projects and grow our national supply, Energy Minister
Simon Watts says.“As part of the Government’s Energy Package, we are pursuing possible long-term Power Purchase Agreements (PPAs) across the public service starting with our three largest energy users: Health New Zealand, the New Zealand Defence Force, and the Department of Corrections,” Mr Watts says. Following the Request for Information issued late last year, the Government is commencing discussions with the energy sector including independent generators and new entrants on opportunities to lock in long-term supply. “We are focused on one clear outcome – increasing abundant and affordable energy to put downward pressure on power bills for households and businesses,” Mr Watts says. “There is a strong pipeline of projects ready to go, from large grid-scale generation to site-specific and smaller repeatable projects across the country. We are backing all technologies that can deliver reliable, affordable power at scale, including onshore and offshore wind, solar, geothermal, biogas, woody biomass, hydrogen and battery storage. The priority is simple: get more generation built, faster.” MBIE is now working with Health New Zealand, the New Zealand Defence Force, and the Department of Corrections on potential long-term PPAs to commence when their existing contracts expire. “Locking in long-term supply will give developers the certainty they need to invest in new generation, while securing better value and price stability for taxpayers,” Mr Watts says. “Solar will also play a practical and immediate role. I have directed officials to complete a rapid feasibility study on establishing a streamlined procurement model to accelerate the rollout commercially viable solar across government properties. “The objective is to support aggregate demand, cut red tape, and bring installations online more quickly increasing supply and reducing peak demand pressures on the grid.” MBIE will report back by the end of May 2026. If viable, a Request for Proposals will be issued soon after, moving quickly from study to implementation so projects can begin delivering additional generation and cost relief as soon as possible. Source: New Zealand Government  Outlook for Australian softwood sales volumesThe latest headline CPI data showed inflation reaching 3.8% year-on-year in December 2025, prompting the Reserve Bank of Australia (RBA) to increase the cash rate from 3.6% to 3.85%. This development has implications for the outlook across multiple sectors of the economy, including manufacturing. In the RBA’s Statement of Monetary Policy released in November 2025 – when inflation for December was forecast at 3.3% – GDP growth was expected to increase around 2% before moderating in 2026 and recovering slightly in 2027.However, the higher-than-expected inflation outcome, exceeding projections by around 0.5 percentage points, has led to a reassessment of the economic outlook. The February 2026 Statement of Monetary Policy shows a significant revision to GDP growth projections. Strong spending from both private households and the Government is now expected to support slightly higher short-term growth, with GDP projected to rise from 2.0% to around 2.3% by December (with official data to be released by the ABS in early March). In the medium term, however, growth is forecast to slow, easing to approximately 1.8% by December 2026 and 1.6% by December 2027 (Figure 1).  Sources: ABS, RBA, FWPA analysis These projections are consistent with the revised inflation outlook, which indicates CPI will remain elevated until mid-2026 before gradually easing back into the RBA’s 2–3% target range. More >> Source: FWPA ANZ Agri Focus shows boosted timber demand in NZ
This summer has been eventful so far for New Zealand’s
rural sector. Several storms have rolled through, leaving chaos
in their wakes, but also strong pasture growth. Dairy prices have been
volatile while other markets continue on prior trends. And the recently
announced NZ-India Free Trade Agreement provides a reassuring
counterpoint for the rural sector to otherwise unsettling geopolitical
trends.The wet weather in January and February caused a fair amount of damage across the country, adding to the impact of other storms earlier in the season. For those farms that avoided direct damage, pasture conditions are excellent across the country. Unusually for this time of year, there’s not a single region currently at risk of tipping into drought. There are downsides to the wet weather for some sectors. Warm wet conditions play havoc with crop harvesting and add to disease pressure. South Island grain growers have struggled over the past month, and the horticulture sector will also be keen for a dry run as harvest approaches. In general, grain and horticulture crops look good in the field, vineyard, or orchard, but they need to look good in the bins and packhouses too. Dairy prices have rebounded emphatically since Christmas with the Global Dairy Trade Index rising 19.3% so far in 2026. It’s been a pleasant surprise to see market sentiment turn so abruptly, and accordingly we recently revised our 2025/26 forecast up to $9.50kgMS. This will be the second straight year of favourable weather enabling farmers to capitalise on the high prices on offer. A ‘grass market’ has developed in the buoyant sheep and beef sector. Farmers are motivated to retain stock for as long as possible, adding upward pressure to farmgate prices. This is pressuring processors despite excellent in-market prices overseas due to a general red meat shortage globally. The US Supreme Court ruled the US administration’s reciprocal tariffs unconstitutional, but President Trump has quickly reinstated global tariffs at 15% under a different law. The net result for New Zealand is unchanged: our agri exports face the same 15% tariff, except wood products at 10%. Beef, kiwifruit, and a few other products remain exempt as they have been since November. For forestry, export log prices are little changed at $123/JASm3. Domestic construction activity is starting to recover, boosting sawn timber demand, but prices have yet to respond. View ANZ Agri focus report Source & image credit: ANZ  Building a wildfire business case for biomass harvesting
Following the 2023 record-breaking year of extreme wildfires
across Canada, the topic of how to best manage wildfires came to the
forefront for many organisations within Canada’s forest
products sector, as well as all levels of government.One organisation that has been actively researching ways to mitigate the risk of these extreme wildfires is FPInnovations, a private, non-for-profit research and development organisation with expertise in the pulp and paper industry, forest operations, wood products, and bio-sources products sectors. Over the past year, FPInnovations put together a special team, which his part of its Technical Assessment Research Group. The team is comprised of two groups that traditionally didn’t work closely together. One group is the forest operations researchers comprised of foresters, technicians, scientists and biomass supply experts. The second group are FPInnovations’ wildfire operations experts, working on fire behaviour, detection, suppression and resilience. Those two groups came together to form a working team focused on wildfire risk reduction through the utilization of woody biomass and landscape strategies to mitigate wildfires. The scope of their research includes the evaluation of operational practices and forest management strategies to mitigate wildfire impacts on fibre supply to meet the existing and emerging fibre demands; while also adapting to existing and new markets and climate change. More >> Source: Canadian Biomass Image credit: FPInnovations Visy introduces recyclable Paper Bubble wrap
As part of its commitment to reducing single-use plastic, Visy
is launching an Australian-made Paper Bubble wrap. The locally
made alternative provides shock-proof cushioning for storing, moving or
shipping items. When recycled through Australian kerbside recycle bins, compared to plastic bubble wrap it:
“By using Australian paper and manufacturing the Paper Bubble locally, we’re supporting local jobs in Australia and reducing our reliance on single use plastic," said Christian Elbert. “Once you’re done with it, just pop it in the recycling bin at home and we’ll turn it into new products.” The Paper Bubble is being made at Visy’s manufacturing plant in Reservoir in Melbourne’s north with paper from Visy’s paper mill in Tumut, New South Wales. Paper Bubble joins Visy’s other locally made single use plastic alternatives, including paper retail bags and Visy Tread temporary surface protection. Source & image credit: Visy  Tumbarumba bushfire salvage gets underway
Following the recent Walwa River Road bushfire which impacted the HVPlantations Shelley softwood plantation, a coordinated salvage operation is now underway.Early indications suggest approximately half of the fire damaged plantation is of an age to be salvaged, much of which includes high quality sawlog to be processed at the Hyne Timber sawmill in Tumbarumba. Site Manager, Kristina Kaminski said the team at the Mill are ready to do their bit and salvage as much of this timber as possible over coming months, “We have been here before and the team knows what to do. We are part of a whole of industry, as well as community, coordinated effort and we will certainly be doing our bit here in Tumba. “Once we get the burnt bark off the logs, we can process this into quality, sawn timber for housing construction. We very much value the ongoing support of our customers who proudly back Aussie timber first and are very much part of our economic value-add to the Australian economy.” Ms Kaminski said. It is expected the salvage operation could take several months with the local community seeing trucks carrying burnt logs throughout this time. The Hyne Group thanks the community for their support and understanding throughout this time. Source & image credit: Hyne Timber EUDR 2026: Industry perspectives on what comes next
As the European Union Deforestation Regulation (EUDR) moves
toward its revised implementation date of December 30, 2026, industry
associations are offering differing perspectives on whether further
changes to the regulation are likely. Recent industry
discussions highlight both the evolving regulatory landscape and the
strategic decisions companies now face.While interpretations vary, one message is increasingly consistent: companies should be preparing for compliance as written, even amid ongoing policy debate. Overview of the 2025 EUDR Amendments In 2025, the European Commission introduced amendments to address concerns raised by member states and industry stakeholders. Key changes include:
Despite these changes, significant structural components of the regulation, including geolocation requirements and due diligence documentation, remain intact. More >> Source: ResourceWise New heavy vehicle tool to help Australian road managers & industry
The National Heavy Vehicle Regulator (NHVR) has released Freight
PASS, a new online tool designed to help users compare the productivity,
asset impact, safety and sustainability trade-offs of different heavy
vehicle configurations.The new web app enables users to compare a range of safety, productivity, pavement wear and sustainability outcomes when different vehicle types are used to undertake a particular freight task. Chief Safety and Productivity Officer Matt d’Abbs saidthe NHVR had invested in the digital tools to support both governments and industry in filling ‘information gaps’. “Managing a heavy vehicle fleet or road asset means balancing competing factors like safety, sustainability and productivity, which is only further complicated when the impacts of different vehicle types are unknown,” Mr d’Abbs said. “Freight PASS can make comparisons across vehicle operating costs, travel time, crash likelihood, climate change impacts, pavement wear and other measures. “For example, it can show the relative benefits of moving from a standard 26m B-double to a 30m PBS A-double, which can reduce trip volumes by about 25% alongside improved safety, health and economic outcomes. “Having merged the new tool with the Pavement Impact Comparison Calculator, this new version of Freight PASS offers better usability and a more comprehensive digital offering for anyone seeking to understand the impact of heavy vehicles.” Rather than focusing on a single trip, Mr d’Abbs also said Freight PASS was designed to allow users to consider the cumulative impacts of freight movements over time. “Trucks generally make the same trip hundreds or thousands of times, so decisions about heavy vehicle operations and network impacts are best focused on the overall freight task, rather than single journeys,” he said. Freight PASS enables a clearer understanding of how vehicle choice can influence long-term safety risk, environmental impact and economic productivity.” For road managers, the tool will offer greater road asset and vehicle insights, including the relative pavement wear and emissions benefits of an electric heavy vehicle compared to a diesel counterpart. Road managers can use Freight PASS to modify vehicle details, such as axle groups, mass distribution and tyre dimensions, to allow for clear comparisons between configurations. For industry, the tool can help operators fill information gaps, so they can identify vehicle designs better aligned with road manager considerations before applying for an access permit or expanding their fleet. Mr d’Abbs said the NHVR hoped Freight PASS would assist government and industry as the heavy vehicle landscape moved beyond traditional vehicle designs. “Using the tool can help with understanding how fewer vehicles carrying a greater amount of freight may have positive environmental and safety outcomes,” he said. “Developed under the NHVR’s Heavy Vehicle Productivity Plan 2025–2030, Freight PASS can support a forward-focused industry by allowing greater visibility of productivity, safety and sustainability metrics. Our productivity offerings in NHVR Go are designed to equip stakeholders with more information and to assist decision making.” Freight PASS is free to use and can be accessed via the digital hub, NHVR Go. More >> Source: National Heavy Vehicle Regulator (NHVR) Patchell Group expands options through Australian joint venture
The Patchell Group has always been at the forefront of design
and technology but recognises the benefits of aligning with other like-minded companies to be able to offer products that suit a range
of transport solutions, which is why the Patchell Group has
entered into a joint venture with respected Victorian
manufacturer Kennedy Trailers, a long-established Australian
company, to provide access to specialised forestry equipment where it
makes sense for local operators.Kennedy Trailers, a family owned and operated business; pride themselves on custom transport solutions with over 40 years’ experience in the manufacturing of logging, mining and heavy transport equipment. Garry Kennedy started in 1980 as a mobile welding contractor servicing logging operations through the manufacture and repair of machinery and log jinkers. Garry’s focus and passion was always trucks and log jinkers, and the business progressed from repairs to design and manufacture of its own purpose built equipment. Over the decades, Kennedy Trailers has developed and produced a wide range of custom log and folding trailers for forestry and heavy haulage applications, with more than twenty different trailer configurations built since its first log trailer entered service. CEO, Garry Kennedy, says they are very excited to be involved with this joint venture with the Patchell Group in New Zealand to offer trusted solutions for the New Zealand market. This partnership brings together Kennedy Trailers’ proven Australian engineering and manufacturing expertise with Patchell’s strong local knowledge and established reputation in New Zealand. By working collaboratively, we are confident we can deliver innovative, high-quality folding log trailers that are purpose-built for local conditions and provide long-term value to New Zealand operators. Patchell brings more than 50 years of experience in the manufacture and supply of forestry equipment, with products that have operated successfully in New Zealand conditions over many years. Patchell will continue to design, build, and sell its own range of Patchell-branded products. Through the joint venture Patchell will offer Kennedy Trailer products, such as the specialised folding trailer design incorporating proven Kennedy technology and reliability into Patchell designed and manufactured trailers that meet the tare and operational requirements unique to the NZ log transport task. While there have been some similar options tried in the past in NZ, traditionally they may not have suited New Zealand applications. Changing operating environments and customer requirements mean there may now be new opportunities for some local users. By working with an established manufacturer rather than duplicating proven designs, The Patchell Group aims to ensure customers have access to the most appropriate equipment — supported locally by a team that understands New Zealand conditions and long-term performance requirements. Brent Whibley, Patchell CEO says “Our industry is evolving, and operators and forest owners are looking for smarter, more efficient ways to do business. This partnership allows us to introduce a proven solution to the New Zealand market, backed by local support and engineering. We believe it represents a meaningful step forward in lifting productivity and performance in some specific need areas”. Click here for contact details Source & image credit: Patchell Group  Jobs
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And one to end the week on... Saveloys out, spinach in
And on that note, enjoy your weekend. Cheers.  Brand PartnersOur Partners & Sponsors Friday Offcuts is made possible through the generous support of the following companies.
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Stats NZ's consumer price index (CPI) data gives a snapshot of what New Zealanders were spending their money on over the years, because it is adjusted at regular intervals to reflect our behaviour.