New domestic & export markets for lower quality logs

Friday 12 Jul 2024

 
A trio of key Australian forestry industry bodies are undertaking collaborative research that will support new market opportunities for Engineered Wood Products (EWPs) using lower-quality Eucalyptus globulus (blue gum) and Pinus radiata (radiata pine) logs.

This important value-add project, funded by the Department of Agriculture, Fisheries and Forestry (DAFF), is being led by the Green Triangle Forest Industries Hub (GTFIH), with support from Forest & Wood Products Australia (FWPA) and the  Australian Forest Products Association (AFPA).

The origins of the initiative can be traced back to November 2021 when demand for this low-value resource from major importer China ceased. With little-to-no existing domestic demand for timber products manufactured using these logs, timber began accumulating in Australian plantations. New markets are needed to prevent this resource going unused.

In response, the three collaborating bodies developed a grant application to the DAFF-led Agriculture, Trade and Market Access Cooperation (ATMAC). ATMAC agreed to provide funding for an extensive program of research, which has progressed positively during the past two and a half years.

A specially assembled team is studying relevant end-use market specifications, conducting in-depth market research, and undertaking manufacturing and development trials of EWPs with potential appeal to new export and domestic markets. The ultimate objective is to create additional market opportunities and fresh income streams for industry.

FWPA sees this project as a highly significant initiative and we are committed to offering ongoing support to the Hub as the research is conducted,” FWPA CEO Andrew Leighton said. “This work is a wonderful example of three organisations with a shared commitment to creating a sustainable future for Australian forestry coming together to create new opportunities to help secure our industry’s ongoing success.

The technical aspects of the research are being conducted at the Queensland Department of Agriculture and Fisheries (QDAF) Salisbury Research Facility in Brisbane, under the direction of Principal Scientist Dr Benoit Gilbert. The market research elements are being led by Tim Woods of IndustryEdge, a consultancy that provides data analysis, intelligence and advice to the forestry industry.

After applying the industry grading system to predict the visual quality of EWPs manufactured from veneers, the researchers found veneers recovered from both log types to be D Grade – the lowest grade on the scale. This knowledge has allowed the team to focus on manufacturing LVL products intended for use in markets where aesthetic appeal is not a vital consideration for the end user, such as internal structural applications.

Another significant project deliverable is a detailed analysis of four key export markets for future trading opportunities: Japan, South Korea, Singapore and Malaysia. The team has also identified that some of these markets may provide additional opportunities for intermediate products such as veneers and lamella.

The researchers are on track to complete all scheduled activities by 30 June 2025, with key findings, progress and milestones continuing to be communicated to industry throughout the project.

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Source & image credit: FWPA



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