Friday Offcuts – 21 June 2024
Click to Subscribe - It's FREE! Welcome to this week's edition of Friday Offcuts.Last week brought significant developments in the forestry sector, with New Zealand's Forestry Minister unveiling a comprehensive plan to revitalise the industry. The plan aims to boost onshore wood processing, expand access to international markets, encourage sustainable forestry practices, and streamline regulations. Additionally, the Minister announced adjustments to the ETS fee structure. Meanwhile, in Australia, concerns were raised about the Queensland budget's failure to address the growing demand for timber in the housing sector. The budget reportedly lacks long-term investment in farm forestry and new plantations. In other news, we cover plans for the world's first biomass- fuelled ship, insights from Indufor's latest Australian Timber Market Survey, the Queensland Government's decision to convert more state forest into national parks, and potential changes to Gisborne District's forestry levy and rates. Stay turned for post event details on FIEA’s Environmental Forestry 2024, which is running next week in Rotorua, and July’s upcoming Resdiues2Revenues 2024. Finally, due to the Matariki public holiday in New Zealand, Friday Offcuts will be released a day early, on Thursday, June 27th. All new classifieds must be submitted by 1pm, Wednesday NZST. Read these and more in another packed edition of Friday Offcuts. Enjoy.
Our Partners & SponsorsFriday Offcuts is made possible through the generous support of the following companies. 
This week we have for you:
Growing the potential of NZ’s forestry sector in partnership
Forestry Minister Todd McClay, has announced the start
of the Government’s plan to restore certainty and confidence in
the forestry and wood processing sector.“This government will drive investment to unlock the industry’s economic potential for growth,” Mr McClay says. Forestry’s success is critical to rebuilding New Zealand’s economy, boosting our GDP and providing regional jobs in a highly productive sector." The Government’s vision to grow the forestry sector includes:
“This includes working with the industry to increase onshore wood processing, opening new and improving access to existing trading markets, supporting sensible planting, easing burdensome regulations, enabling and supporting the development of new and innovative wood products, adjusting investment settings and supporting New Zealand’s climate change goals. “Nearly 60% of New Zealand’s harvest is exported. Increasing our domestic processing will grow the economy, create more regional jobs and help us double our exports by value in 10 years. “Alongside domestic reforms, the Government is working to expand access to overseas markets for producers to export high-quality wood products, also by addressing non-tariff barriers. This will provide the market certainty wood processors need to expand and innovate.” The Government is also considering how to get the balance right for New Zealand’s wider forestry system. “It is important to ensure there is sufficient pipeline of logs to support domestic wood processing as well as encouraging the planting of new trees on suitable land to meet our international climate change commitments,” says Mr McClay. An independent review of the operational costs of the forestry component in the ETS was launched earlier this year and will be followed up with a separate assessment of cost recovery fees to be considered for the 2024/25 financial year. “We want to ensure the ETS is cost-effective and efficient for participants. We are also working swiftly to remove unnecessary regulatory burden on forest businesses, recently announcing the repeal of legislation requiring the registration of log traders and forestry advisers. This will remove the pressures of unnecessary costs on forest businesses.” Source: NZ Government WPMA's response to announcement ‘With only 40% of New Zealand’s harvested trees processed within New Zealand, this announcement by the Minister provides a positive way forward to grow our domestic processing, create more jobs in the regions and increase our export revenue through producing high quality value-added wood products,’ said Mark Ross, Chief Executive of the wood processors and manufacturers association. Specific initiatives for wood processing and manufacturing announced include mandating resource consenting for new and established site developments to a 1-year maximum, removal of unnecessary barriers for using New Zealand wood products, opening export markets for wood products, and development of a scheme that recognises the critical role Long Life Harvested Wood Products play in the storage of carbon. More >> Source: WPMA (Wood Processors & Manufacturers Association of NZ) QLD budget weak on future timber material needs for housing
Queensland’s peak body for the forest and timber industry is
warning of a looming building materials crisis, caused by a lack of policy and
budget measures, for increasing future timber supply to help meet the
state’s rising housing demand.“While we support the critical need to accelerate housing and building projects for a growing population, the 2024-25 budget is weak when it comes to supporting essential supply chains such as timber for meeting the future construction of houses,” said Timber Queensland CEO Mick Stephens. “Up to 90% of homes in Queensland rely on local plantation softwood for timber framing and Queensland native hardwood and cypress is used extensively for structural beams and posts, flooring, cladding and decking products as well as for furniture and cabinetry.” “With high forecast housing demand, the state budget does not address longer term measures to expand investment in farm forestry and new plantations for future timber supply while the government is dragging its feet on securing future hardwood supply from state-owned and private native forests,” Mr Stephens said. “Back in 2019 the Queensland Government committed to a Native Timber Action Plan to secure jobs and a long-term future for the hardwood industry. It’s now 2024, and we have no action other than one line in the budget papers to implement the plan with no funding commitments.” “Lack of action on the plan is putting in jeopardy an ability to guarantee essential building materials from a $700 million hardwood industry supporting 6000 jobs across the state,” Mr Stephens said. “Over $140 million in new mill investment is stalled as hardwood supply contracts from state forests expire at the end of 2024.” Key measures to increase future hardwood supply we have recommended to Government include:
A shortage in native timber will put additional pressure on the housing and construction sector, which is struggling to keep up with demand in the middle of a housing crisis. More >> Source: Timber Queensland  Conference to showcase innovators in renewable forest resources
Encouraged by iconic New Zealanders like keynote speaker Sir Ian Taylor, many young innovators are creating new
opportunities for converting forestry fibre to renewable resources for
new chemical solutions and to fossil fuel replacements. As their ideas
move from being start-ups to succeed commercially, more of our New
Zealand forest resources feed into higher value products. Bringing these new ideas to businesses happens at a popular industry conference from the Forest Industry Engineering Association. Business leaders and innovators have a keen eye for turning wood residues into revenues. The very latest technologies and results from up and down the country will be showcased in Rotorua, New Zealand on 30-31 July 2024. Leading our line-up at the FIEA Residues2Revenues 2024 Conference, keynote speakers Steve Wilson and Sir Ian Taylor from the New Zealand Product Accelerator will expand on this opportunity: What is the Potential Value of Bio-Products from New Zealand Forests? All of our speakers are championing change in one way or another. They are all working closely with foresters to lift the value and volumes of forestry renewables to help move our economy onto a more sustainable footing. Who else is speaking at this Residues2Revenues 2024 event?
Source: FIEA  Forestry Minister announces ETS fee change
Annual service charges paid by forest owners with trees in the Emissions
Trading Scheme (ETS) will be cancelled for the 2023/24 year. Forestry Minister Hon Todd McClay announced the ETS change while outlining the Government’s vision to grow forestry as part of his address to the Fieldays Forestry Hub. Minister McClay said the government wanted to rebuild confidence in forestry, noting that the charges imposed on growers for administering the ETS felt excessive, with insufficient transparency around them. “We want to ensure the ETS is cost-effective and efficient for participants,” said Minister McClay. Participants will continue paying for specific services, but they won’t be charged the $30.25/hectare. New Zealand Forest Owners Association chief executive Dr Elizabeth Heeg welcomed the news removing the ETS charge and supported a more collaborative relationship with the Government to grow forestry in New Zealand. “We look forward to working with officials to ensure that the setting of ETS charges is done with transparency, efficiency and reasonableness,” Elizabeth said. “It has been a challenging time for forest owners. The encouragement from government to add more value domestically and address the climate crisis will go a long way in helping the sector grow revenue and jobs for New Zealand. More >> Source: NZFOA Climate Forestry Association's response to announcement The Climate Forestry Association (CFA) has praised the Government’s recognition of the forestry sector’s potential to play a major role in meeting New Zealand’s climate commitments. Chief executive, Andrew Cushen, says the Government has shown a thorough understanding of the importance of the forestry sector. “Climate forestry is currently the most successful means we have of meeting our climate commitments at the scale we require, while also increasing the climate resilience of our landscapes, community and economy,” says Andrew Cushen. More >> Source: Climate Forestry Association Ekos's Response Ekos is welcoming today’s statement by Forestry Minister Todd McClay on supporting the forest sector and the government’s removal of a service fee on all forests registered in the New Zealand Emissions Trading Scheme (NZETS). “This is a good day for native forests. By removing this crazy service fee on native forests in the NZETS we can now restore more habitat with carbon funding”, Ekos CEO Sean Weaver said. More >> Source: Ekos  Australian Timber Market Survey report - March quarter 2024
Softwood timber products – Quarterly price
movements
The TMS is prepared by Indufor and funded by seven major Australian forestry organisations: Forestry Corporation of NSW; HQPlantations; OneFortyOne Plantations; the Queensland Government Department of Agriculture and Fisheries; Green Triangle Forest Products; Sustainable Timber Tasmania; and Southern Cross Forests. Further information and the latest Timber Market Survey report is available here: Download the March quarter 2024 TMS report Source: Indufor Plans to construct the world’s first biomass-fuelled shipA consortium of Japanese shipping companies comprising NYK Line, NYK Bulk & Projects Carriers, Tsuneishi Shipbuilding Company, and UK- headed renewable energy group Drax Group, have recently signed a new Memorandum of Understanding, to develop both the world’s first biomass-fuelled ship and the tech that could power it.Biomass is playing a growing role in Japan’s transition from fossil fuel power generation to low carbon and renewable electricity, and the country’s demand for biomass pellets, sourced primarily from North America and composed of sawmill and forestry residues, is increasing.  Drax produces biomass pellets in both the US South and Canada. The company has a longstanding relationship with NBP which transports its pellets to Japan. These pellets are currently shipped through smaller handysize bulkers, which, due to the limited size of their fuel tanks, have proved challenging to switch to lower emission fuels, such as ammonia. Through the MoU, which was signed at the British Embassy in Tokyo, the companies will initially conduct research to develop the new shipping technology, an on-board biomass fuel plant, which would be required to power a bioship. The four companies are exploring how other renewable technologies could be used to reduce both the emissions and fuel costs of shipping biomass. The biomass fuel plant would use a gasifier to combust biomass at high temperatures and create and contain gases including carbon monoxide, hydrogen, and methane. These gases would then be used to power a generator which could propel the bioship and also provide a proportion of its internal power. The installation of a biomass fuel plant could see a 22% reduction in well-to-wake carbon emissions in bioships compared to using fossil fuels. If this development is successful, the companies will jointly explore building a bioship by the end of 2029. More >> Source and image credit: Drax More Queensland state forests becoming national parks
The Queensland Government will dedicate more than 12,000 hectares of
land currently declared as state forest as national and conservation
park. The process to dedicate the land began in the State Parliament.The dedication of the various areas of state forest as national park and conservation park aligns with the government’s commitment to transfer 20,000 hectares of state forest to the protected areas estate under the Native Timber Action Plan. This move will bring the total area of state forest added to the protected areas estate under the plan to just over 13,000ha. The land being protected includes:
More >> Source: State of Queensland Celebrating excellence - SNI Forestry Awards 2024Ernslaw One is proud to be working with some of the best in the industry following the recently announced winners of the Southern North Island (SNI) Forestry Awards.Moutere Logging who has been working with Ernslaw for 13 years picked up the Contractor of the year award by its Moutere 2 crew which is a fully mechanised ground-based crew working in Karioi Forest. Dale Ewers, Moutere Logging owner, says he and his team are ecstatic about the win. “We’ve got an awesome team on the ground in SNI and this award is great acknowledgement of their continually outstanding performance. But we couldn’t do this without Ernslaw - working with good people who share common values such as zero harm, innovation and strong teamwork makes for a great partnership,” says Dale. The Forestry family of the year award was won by the McCarthy’s of McCarthy Transport, who has been working with Ernslaw for three generations. Starting out with four trucks between Mark senior and his sons, they now run 134 trucks and employ over 200 people.  Managing director, Mark McCarthy, says he and his boys were thrilled and humbled with the award. “Getting such recognition for just doing what we do was wonderful. It has been very gratifying to see the boys take an interest in the business, working in it as kids. They have taken on the same love for the industry that I have always had and they are now making the business their own.” More >> Source: Ernslaw One  Council debates forestry levy and rate hikes
Forestry companies could face a rate hike to cover
legal costs as well as a “pay as you go” levy to cover road
damage, under a Gisborne District Council proposal. While
committing to investigate these funding options from forestry to help
cover sector-related costs, the council has also adopted a higher
roading-targeted differential of 13.75, up from 12.5, and a new woody
debris-targeted rate.Mayor Rehette Stoltz said during deliberations for the three-year plan on Tuesday: “Part of our job is to investigate whether we are doing our jobs in the best possible way. Are our rate systems fit for purpose? At this stage, if we prosecute a company, we do not cover our costs with the small amount under the law that they are allowed to be fined,” she said. Council chief executive Nedine Thatcher Swann said for every $1 million spent on legal and investigation fees, “you may get $250,000 back”. If the Resource Management Act changed, the additional targeted rate for court and prosecution costs might not proceed, she said. If there were changes, Thatcher Swan said fines from successful prosecutions might cover council costs. The council will also investigate introducing a forestry levy for road repairs. For forestry companies, this would more likely align the charges for road damage with when they received revenue, compared with the targeted rate based on property values. “A forestry levy would be a ‘pay as you go’ or ‘user pay’ principle,” a council staff report said. More >> Source: Scoop Image credit By Nurg - Own work, CC BY-SA 4.0 link DC Equipment Canada returns Madill to BC
DC Equipment has announced the opening of its new manufacturing facility in Prince George, marking the return of Madill equipment production to British Columbia. The first machines to be produced at this facility will be the Madill 3000B Log Loaders, heralding a new chapter in Madill’s rich history and strong heritage in BC. “We are excited to bring Madill manufacturing back to its roots in British Columbia,” said Dale Ewers, Owner and Managing Director of DC Equipment. “This is more than just a strategic move for us; it’s about preserving and continuing the legacy of Madill, which has been a cornerstone of the logging industry for over a century.” Economic Impact The establishment of the new facility in Prince George is set to have a significant positive impact on the local economy, creating numerous employment opportunities and fostering job growth within the community. “Our commitment to local manufacturing is also a commitment to the local economy,” Ewers emphasised. “We are creating jobs in which we hope contribute to the economic development of the region. It’s a win-win for everyone involved.” A Strategic Move for Global Markets DC Equipment’s expansion into British Columbia is part of a broader strategic initiative to enable manufacturing at a local level whilst catering for global demand. DC Equipment now have facilities in South America, North America, and Oceania which ensures that the company can meet the growing demand for high-quality logging equipment worldwide while maintaining strong production capabilities at home. “This new facility positions us perfectly to serve our global markets more efficiently,” noted Ewers. “By manufacturing locally, we can ensure faster delivery times and maintain the high standards of quality and innovation that our customers expect from Madill and DC Equipment.” More >> About DC Equipment Started by Dale Ewers, DC Equipment was established after witnessing several accidents in the logging industry, with the mission to revolutionise and enhance safety in steep-slope logging operations. Known for its Falcon Forestry Equipment brand, DC Equipment offers a comprehensive range of logging equipment, renowned for safety and reliability across more than a million operational hours with a record of zero harm. Currently, DC Equipment manufactures and exports equipment to North and South America, while supplying the New Zealand and Australian markets. Source: forestnet  Forico releases a fourth Natural Capital Report
Forico has released a fourth Natural Capital Report, now free to download free from the company’s website. Forico also has a
strong commitment to Natural Capital and believes it to
be a fundamental requirement for a sustainable global
economy. Recognised worldwide, the report is a leading
illustrative example of nature-based reporting.CEO Evangelista Albertini has said the Natural Capital Report ‘represents a vanguard for Financial and Sustainability Teams everywhere, encouraging them to embrace and lead the change to direct decision-making in new, essential, and increasingly urgent, nature positive and planet friendly ways.’ The company is motivated to play a key leadership role in this opportunity for the sector, through the production of its Natural Capital Report, production of sustainable wood fibre and championing new methods and markets in carbon and biodiversity. The 2023 Natural Capital Report can be downloaded from the Forico website. In addition, Forico is sharing their insights on the management of native vegetation within plantations, with Ann La Sala, Forico's Sustainability Advisor, speaking at next week's Environmental Forestry 2024. Source: Forico VicForests conducted thousands of night surveys
We are responding to more false claims, this time on behalf of our
dedicated staff who accumulated 1000s of hours conducting night surveys.
Recently multiple publications have claimed VicForests did not conduct night surveys. This is demonstrably false. VicForests undertook surveys both at night and during the day given the differing needs of the array of species that make up the valuable biodiversity of our forests. Since 2017 VicForests staff and contractors have been responsible for:
These surveys resulted in over 27,000 species detections being made. VicForests uploaded all survey results to the publicly available Victorian Biodiversity Atlas (the VBA). VicForests is a major contributor to the VBA, which provides vital information about species location and habitats. VicForests surveys were performed in accordance with recognised survey standards, usually those developed and issued by the Department of Energy, Environment and Climate Action and its predecessors. We reiterate that false claims do harm. This includes the impact on the mental health and wellbeing of people who have dedicated themselves to managing forests for future generations. Source: VicForests The Walking Tree wins 2024 Tree of the Year NZ
The New Zealand Arboricultural Association (NZ Arb) is
delighted to announce The Walking Tree as the winner of the 2024 Tree of
the Year New Zealand award. This extraordinary northern rātā
(Metrosideros robusta), located near the Karamea Cemetery,
captivated the hearts and imaginations of New Zealanders with its unique
appearance and fascinating life story.The Walking Tree was nominated by Bryan Bell, who highlighted its remarkable form and captivating presence. With its twin trunks stretched as if in mid-stride – and seemingly wearing high heels – this tree is a striking natural wonder. Its resemblance to one of Tolkien’s sentient, tree-like Ents has earned it the affectionate nickname, The Walking Tree. The tree was the clear favourite in the competition, running off with over 42% of total votes. The northern rātā is one of New Zealand’s tallest flowering trees. Surprisingly, it begins life as an epiphyte growing high in the forest canopy upon another host tree. Over time, its roots reach the ground, and it eventually envelops the original host. Northern rātā can live for up to 1,000 years, and it remains a mystery just how long this windswept walker has been strutting its stuff north of Karamea. The 2024 Tree of the Year campaign, run by NZ Arb, is proudly sponsored by Delta and supported by the NZ Notable Trees Trust and the New Zealand Tree Register. This annual event celebrates the incredible trees that are an integral part of New Zealand’s natural heritage and part of our communities. Richie Hill, president of NZ Arb, stated, "The Walking Tree is a prime example of the remarkable trees that we, as New Zealanders, are fortunate to experience. This award recognises the significant role that trees play within our communities, not only enhancing our local environments but also providing a sense of place for past, present, and future generations. The Walking Tree is an exceptional feature and a must-see destination, highlighting the uniqueness and diversity that exists within New Zealand’s notable tree population." For more information on The Walking Tree and other historic and notable trees in New Zealand, please visit the New Zealand Tree Register. Source: Tree of the Year NZ Image credit: Gareth Andrews Jobs
Buy and Sell
... and one to end the week on… World Brewing Convention
At a World Brewing Convention in the United States, the CEOs of various brewing organizations retired to the bar at the end of each day's conferencing. 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.
Copyright 2004-2024 © Innovatek Ltd. All rights reserved
|
