Friday Offcuts – 9 August 2024
Click to Subscribe - It's FREE! Welcome to this week's edition of Friday Offcuts.The New Zealand forestry sector is currently facing significant challenges, with the potential closures of the Penrose Recycle Pulp Mill, the Karioi Pulp Mill, and the Tangiwai sawmill making headlines. The impact extends beyond forestry, as manufacturers nationwide grapple with soaring energy costs that have surged over 600% in recent years—an unsustainable trend, sparking urgent calls for government intervention. These issues are further compounded by declining domestic timber demand and uncertainties in key export markets like China. On a brighter note, Australia’s upcoming National Forestry Day will celebrate the industry's critical role in combating climate change, promoting sustainable practices, and supporting the economy. The integration of AI technology continues to advance, with the ForestTECH 2024 conference set to showcase cutting-edge developments and applications for foresters in New Zealand and Australia. In other news, the Canadian government is investing in wildfire-detecting satellites, Timber Queensland has announced its 2024-25 growth scholarships, and OneFortyOne NZ is constructing a sustainable timber headquarters. Meanwhile, Rocket Lab continues its innovative work, launching geospatial data satellites from New Zealand. 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:
Lifeline needed for Winstone Pulp Mill
Ruapehu Mayor Weston Kirton has emphasised the urgent need to support
the Winstone Pulp Mill near Ohakune, the largest employer in the Ruapehu
District, amidst soaring electricity costs. The Mill’s potential
closure due to the high cost of electricity has sent shockwaves through
the community and could have severe local and national repercussions.
“The Winstone Pulp Mill is crucial to the central North Island economy and New Zealand’s overall economic health,” said Mayor Kirton. “The high cost of electricity, which has surged by 600% over the past couple of years, is jeopardising its operations. In September 2021, a Megawatt hour cost $100; it now stands at $700. Despite significant investments in new equipment and a 30% reduction in electricity use to boost productivity, Winstone is ‘up against the wall.'” The potential closure of the Mill would be a devastating blow, not only to the local and regional economy but also to New Zealand’s already limited value-added manufacturing base. “In a country where most of our electricity is produced from renewable resources, mainly rain, this situation is unacceptable and highlights systemic and policy failures,” added Mayor Kirton. Mayor Kirton expressed his approval of Finance Minister Hon. Nicola Willis’s actions in seeking urgent advice from the Treasury on possible interventions for spiking electricity costs. He also supports Regional Development Minister Hon. Shane Jones’s call for a substantive inquiry into electricity pricing to push down prices. “As Minister Jones pointed out, New Zealand has recently experienced the highest electricity costs in the western world, and we cannot allow our businesses to be destroyed by this.” Mayor Kirton calls on the government to act with urgency to ensure the Mill remains operational. “The importance of the Winstone Pulp Mill to the central North Island economy is comparable to the Tiwai Aluminum smelter’s significance to Southland, which also faced closure due to long-term energy costs. With the government focused on growth and employment, a major export-earning employer should not be allowed to fail due to internal policy settings.” Source & image credit: Ruapehu District Council Australia to celebrate National Forestry Day - 20 Aug 2024
On National Forestry Day – Tuesday 20 August 2024 –
I encourage everyone to recognise the excellent work
Australia’s forest industries do for us all fighting
climate change, supporting the national economy and creating the
essential and sustainable products Australians love, need and use every
day, Australian Forest Products Association (AFPA) CEO,
Diana Hallam said.“Australia’s forestry supply chain is responsible for renewable and vital everyday items from timber house-frames to home furnishings and paper and packaging products like cardboard boxes and paper cups. These are climate-friendly items we cannot live without! We provide 80,000 highly skilled and direct jobs across Australia’s workforce, along with another 100,000 indirect jobs, many in rural and regional areas. The sector contributes $24 billion to the economy annually and is Australia’s 6th largest manufacturing sector,” Diana Hallam said. “This year’s National Forestry Day theme is Nature’s Carbon Store, which highlights how important the sector is as a climate change solution. As production trees grow they absorb carbon, which then continues to be stored in timber and wood fibre products and the built environment, long after the trees are sustainably harvested. We are a big part of the answer to Australia reaching its net zero goals. “With demand for timber and wood fibre expected to quadruple by 2050, the Australian forest products sector plays a significant role leading the world in sustainable forest management. Our careful environmental management practices are an example to other nations looking to maximise the potential of their forest sectors, through active replanting and prudent regulations. “Whether it’s the timber house-frame inside the walls of your home, the cardboard boxes your latest delivery arrived in, or the hardwood dining table in your living area, without Australia’s sustainable and renewable forest products sector, we wouldn’t have these locally made products. “I strongly encourage everyone across industry and the consumers of all of our wonderful products to celebrate National Forestry Day on Tuesday 20 August,” Diana Hallam concluded. Source: Australian Forest Products Association (AFPA) AI technology – seriously impacting on how we do businessAttached is a recently released video detailing just how AI technology is changing the way we work and interact. The ability to merge real-world data with virtual environments and collaborate in real time is breaking down barriers that used to limit what companies could do. It’s not just about making things easier or faster, it’s about creating new possibilities for working, learning and even building things that we haven’t thought of yet.The impact of these technologies goes beyond just making existing tasks more efficient. They open up new ways of thinking about design, engineering and collaboration. NVIDIA, an American multinational corporation and technology company that, in mid-June, became the world’s most valuable public company, is seriously shaking things up with how factories and production lines are put together and managed. A team in California can now change the setup of a factory that’s over 9,500km away. They’re doing this through the NVIDIA Omniverse. As part of showcasing the very latest technologies impacting on how we manage our forests, ForestTECH 2024 this year running in Rotorua, New Zealand on 20-21 November, and again in Melbourne, Australia the following week on 26-27 November 2024, will be highlighting to local foresters the opportunities, benefits and challenges of AI technology in our own industry. In Australia, we’re pleased to announce that Simon Elisha, Director & Chief Technologist - Australia & New Zealand for Amazon Web Services will be presenting as part of the ForestTECH 2024 series. Simon Elisha is a visionary technology leader known for his ability to transform technology innovation into tangible business advantages. He has over three decades of experience encompassing hands-on development and influential business leadership. His unwavering commitment to innovation is demonstrated by his nine cloud technology patents, establishing him as a trailblazer in this field. Simon is a captivating communicator, challenging conventional thinking and empowering organisations to drive real change through technology. As a global technology personality, Simon founded and hosts The Official AWS Podcast, attracting a global audience with over 22 million downloads and five million listening hours to date. Simon's career includes senior positions at organisations such as Pivotal Software, Cisco, and Hitachi Data Systems. To capitalise on expertise being brought into the annual forest technology series in November, early-bird discounted registrations to the ForestTECH 2024 event can be made directly online by clicking here 
OjiFS proposes penrose mill closure
75 workers at OJI Fibre Solutions Penrose Pulp Mill in Auckland
learnt this morning that the mill is likely to close by mid-December.
They were provided information at a meeting of all staff called by the
company at 8.00 am this morning. Union representatives are calling on
the Government to urgently step in and save the mill by reducing
wholesale energy costs in any way possible.“This has come like a bolt out of the blue for workers and was completely unexpected,” said Justin Wallace, organiser for FIRST Union, which represents production workers on site. Joe Gallagher, E tū industry organiser, said workers have been repeatedly told by the company over the years that the Penrose mill, which turns recycled paper and card into pulp, was the most efficient site OJI had in the country. “They are gutted that the company has now told them that, pending consultation, the site will close,” said Mr Gallagher. “We understand wholesale energy costs are way too high but this can’t be the end of the story for Penrose, and there has to be a way to save these jobs and the recycling capacity of the mill.” More >> Source: Scoop Image credit: Oji Fibre Solutions  RPBC develops new Radiata pine SNPchip
Radiata Pine Breeding Company (RPBC), in collaboration
with AgResearch and GenomNZ, has
developed its latest iteration of the Radiata Pine
SNPchip for routine operational Genomic Selection. It provides
rapid, less expensive, and highly accurate genetic information of tree
DNA sampled in the RPBC breeding programme.A SNPchip is a sliver of glass with very small pits etched into it. These pits each hold a sequence of genetic information called single nucleotide polymorphisms (SNP) or DNA markers. When a tiny amount of DNA is passed through these pits, usually extracted from substances such as plant matter, DNA fingerprints of each individual are recorded. Such DNA fingerprints from SNPchip technology is seen as a ‘go to’ tool for collating and preserving genetic information in a range of sectors. “The new SNPchip underwent a robust development and proving phase with close to 1,000 radiata pine seedlings revalidated with the new and old SNPchip,” says RPBC’s R&D Manager and Geneticist Sai Arojju. “The results were consistent between both the platforms, producing high call rates with low missing DNA markers, a key success indicator.” The number of unique DNA markers on the new SNPchip platform sits at around 8,000, which is more than sufficient to perform routine operational genomic selection. Using the new SNPchip, operational genomic selection of 10,000 seedlings in 2024 has been completed successfully. “Achieving an operationally efficient and reliable genomics pathway is a significant and important milestone in the 70 years of Radiata Pine tree breeding which we are celebrating this year,” says RPBC’s General Manager Darrell O’Brien. “Our collaboration with Crown Research Institutes Scion and AgResearch, who were instrumental in developing the new SNPchip, has assisted us to rapidly move closer to achieving our overall objective of reducing the radiata pine tree breeding cycle from the traditional 17 years to a 9-year breeding cycle, thus increasing the rate of genetic gain over time. Deployment of genetic gain over time has a favourable influence on forest growers’ profitability.” Source & image credit: Radiata Pine Breeding Company (RPBC) Forestry firefighters train for bushfire season
Forestry Corporation firefighters on the North Coast
are preparing for the bushfire season, refreshing skills
and planning for the fire season they will face in spring and summer. As
one of the state’s four fire authorities, Forestry Corporation
staff serve in firefighting capacities as part of their job roles to
protect the native and plantation forest estate.North Coast and Far North Coast firefighters have attended preseason fire days near Grafton for training refreshers on equipment, fireground procedure, command, control, communications and safety. Forestry Corporation’s Fire Training and Operations Officer Adrien Thompson said firefighters across NSW are currently testing equipment and procedure in preparation for the coming season. “We get to see all of our firefighting staff across the state for this part of the year and discuss how we can best prepare for the bushfire season and manage our estate when it comes to fire,” Mr Thompson said. “It’s one of the core parts of our business to protect the forest estate and each year we run preparedness events including training new recruits, upskilling existing staff and Pre Season Fire Day refreshers to get people thinking about the way we communicate, the interactions between the incident ground and the incident management support teams and the collaboration across agencies to effectively and efficiently manage bushfire across all tenures. Forestry Corporation also conducts hazard reduction burns as part of the prevention phase of incident management while also meeting sustainable forest management objectives. “As a firefighting authority and a land manager we enjoy working in collaboration with the NSW Rural Fire Service, National Parks and Wildlife and NSW DPI across emergency management situations,” Mr Thompson said. Forestry Corporation trains its firefighters to a world-class standard with four staff members this week deploying to British Columbia to assist with Canada’s wildfire emergency. In managing 2-million hectares of native and plantation state forests across NSW, Forestry Corporation uses the latest technology and systems to detect fires early and provide a timely bushfire response. Source & image credit: Forestry Corporation  PF Olsen NZ log market report – July 2024
Market SummaryAt Wharf Gate (AWG) prices around New Zealand increased by about 4 NZD in July. Log demand has softened in China during July, with some nervousness around August pricing. Wet weather events are causing a drop in log demand, while the underlying problem of high local government debt and low consumer spending levels continue to create a pessimistic market. Domestic demand for logs remains weak as we continue through the New Zealand winter. The PF Olsen Log Price Index increased from $116 to $118 in July. This is $1 below the two-year average, and $2 below the five-year average. Domestic Log Market Sawn timber demand remains very low in New Zealand. Many mills have already supplied all their orders and report forward orders are very sparse. Difficult decisions will need to be made about production levels. Less log supply due to much lower harvest volumes around New Zealand means log prices have remained stable. The New Zealand property market is facing more headwinds than just high interest rates. The property market overhang is the difference between the total number of properties on the market and the number of properties sold at the end of the month. This overhang has been growing over the last three years. At the end of May 2021 there was an overhang of 7,254 properties. At the end of May 2024 the overhang was 28,242 properties. This increase of 289% in overhang is a result of properties for sale increasing 119% while sales have decreased 43%. New Zealand recorded a net migration loss of 52,500 citizens in the year ended March 2024. This is the first time an annual net migration loss of NZ citizens has exceeded 50,000. Previously, the record annual migration loss of citizens was 44,000 in the February 2012 year. There was still an overall net migration gain of 111,000 (citizens and non-citizens combined) driven by the arrival of non-New Zealand citizens, mainly from India, the Philippines, China and Fiji. In May this year, there was a total provisional net loss of over 2,000 people. The general economic slowdown in New Zealand combined with reduced migration numbers means the level of new housing starts will remain low. Export Log Markets - China China radiata pine log inventory is about 2.7m m3 and log demand is drifting along at about 55k m3 per day. Rain and wet conditions in Northern China have reduced activity. The modest increases expected in log prices in July were hard to come by. Even as CFR prices for imported logs were rising in June and early July the wholesale log prices were not. The range for A grade is currently $118-124 USD per JASm3 for A grade. More >> Source: FP Olsen  Don’t miss the 2024 NZIF conference in Nelson!
Get ready to be inspired at the 2024 NZIF Conference, themed "
Sowing Tomorrow's Forests - Sustainable Practices for a
Resilient Future." Join us in Nelson from Wednesday, 4th to
Friday, 6th September, and discover the latest innovations shaping our
future.Why Attend?
This is your chance to connect with professionals, explore new ideas, and be part of shaping a sustainable future for our forests. The Conference Organising Committee are excited to welcome both members and the public to this must-attend event. Secure your spot today! For more information on field trips, speakers, and CPD sessions, visit NZIF Conference Details. Don't miss out on this opportunity to be at the forefront of industry innovation! Source & image credit: NZIF Rocket Lab deploys latest satellite
Rocket Lab USA, a global leader in launch services and space systems, successfully launched its 51st Electron rocket and deployed a single satellite to low Earth orbit for Synspective, a Japanese Earth-imaging company.The mission, named “Owl For One, One For Owl” in a nod to Synspective’s StriX satellites named after the genus for owls, lifted off at 04:39 am, August 3rd NZT (16:39 UTC, August 2nd) from Launch Complex 1, Rocket Lab’s private orbital launch site on New Zealand’s Mahia Peninsula. The mission deployed the fifth of Synspective’s StriX SAR-imaging satellites to low Earth orbit. In addition to the launch service, Rocket Lab provided a custom Electron fairing to encapsulate the StriX satellite and also performed an advanced mid-mission manoeuvre with Electron’s Kick Stage to shield the satellite from the sun and reduce radiation exposure on its way to orbit. Rocket Lab has been the sole launch provider for Synspective’s constellation to date. This mission was the fifth launch of a total of 16 launches booked on Electron for Synspective and the second launch for the Japanese company this year, after the “Owl Night Long” mission launched in March 2024. Most recently, Synspective booked ten dedicated Electron launches as part of a new multi-launch agreement announced in June 2024, with the launches in that new deal set to take place across 2025-2027. Rocket Lab founder and CEO Sir Peter Beck says: “It’s wonderful to have launched our second mission for Synspective in five months, as we continue our long-standing launch partnership. Electron is the ideal rocket for providing flexible, tailored, and direct access to orbit for constellation builders like Synspective, and I’m proud of the team for delivering this latest mission success. About Synspective’s constellation: Synspective's small SAR satellites, StriX, are equipped with a synthetic aperture radar (SAR) sensor, which can observe the Earth's surface in any weather condition day or night. Not affected by clouds or rain, SAR is suitable for persistent monitoring of disasters and detailed changes to secure critical infrastructure and other facilities. Example use cases include:
 SnapSTAT - Log exports affected by China consumer cautionWith log exports to China being a vital part of our forest harvest here's a clear graph of a driver of that demand: property.
Source - ANZ Research: NZ Insight -China consumer caution impacting NZ exports Download the ANZ Data Wrap PDF Here For further insights and commentary see our story from 6 July Friday Offcuts issue. Spotting wildfires from space
As wildfire seasons intensify, the Canadian government is investing $170 million to install fire-detecting satellites. At 10:30 p.m. on Monday night, residents of Jasper, Alberta, were told to evacuate as a forest fire crept closer to their town. Despite firefighting efforts, photos and video now show many buildings in the National Park townsite have been burned to the ground. Wildfires are becoming more frequent and intense, and fire behaviour can be hard to predict with current technology. Evacuations can be ordered with just hours’ notice to spare. In Canada’s vast northern boreal forests, wildfires are often started by lightning and can grow for days or weeks undetected. But three federal agencies are working on a satellite system that could help to detect fires earlier and map their behaviour with more accuracy. The Canadian Space Agency hopes to launch WildFireSat in 2029. Data from the specially designed satellites will then be fed to Natural Resources Canada and Environment and Climate Change Canada. The federal government has committed $170 million for the project. Ellen Whitman, a forest fire research scientist with Natural Resources Canada, said satellite data from NASA’s MODIS and VIIRS satellites are already used to track fires in Canada. But the new satellite system is being designed for the sole purpose of detecting and tracking wildfires. “Essentially it would always be facing Canada, instead of getting a glimpse in the morning and a glimpse in the evening, which is what we get with the other satellites that weren’t designed for this,” Whitman said. “And then we can choose to focus it on that particular window of time where that fire behaviour is the most severe.” Wildfires often pick up speed and intensity from 4 to 7 p.m. — a period that is not captured by current satellites. WildFireSat will be the first permanent satellite installation designed specifically for fire monitoring and will carry an instrument that measures Fire Radiative Power — “the rate of outgoing thermal energy from an active fire.” The satellites will be able to measure the rate of fire spread and should help to improve smoke forecasts, as well as the carbon emissions from wildfires. The fire season of 2023 was the most destructive on record in British Columbia, with over two million hectares burned, tens of thousands of people evacuated and hundreds of structures lost. Wildfire costs soared to over $1 billion, compared to $718 million in 2021, the next most costly year. Source: The Tyee Timber QLD Growth Scholarship recipients announced
Timber Queensland is pleased to announce the recipients of the 2024-25
Growth Scholarship Awards Program. Timber Queensland’s Strategic
Relations Manager, Clarissa Brandt, said the judging
committees were impressed by the range of applications received
from every part of the industry supply chain.“Given we receive applications from people in academia to those working on the tools, our judges have to carefully choose recipients that demonstrate a strong sense of purpose, are focused on their career development and have designed a learning activity that will be beneficial individually and for Queensland’s forest and timber industry,” said Clarissa Brandt. The recipients of the 2024–2025 Awards are:
Trinh has a busy program of webinar presentations, field visits and knowledge acquisition that will assist both her career trajectory and make a significant contribution to the development of silvopastoral practices in Queensland. “Silvopastoral systems integrate trees, pasture and livestock, providing environmental and economic benefits,” said Trinh Huynh. “The aim of my learning activity is to acquire practical knowledge and first-hand experience to enhance the development of silvopasture in Queensland, drawing on practices from the South East Climate Hub in the United States,” she said. More >> Source & image credit: Timber Queensland --(2022)2.jpg) New headquarters for OneFortyOne NZOneFortyOne NZ Forests is building a new headquarters in Hope, Tasman. A key feature was to show how timber can be used to achieve a cost-effective carbon-neutral build. All the components that you would normally make from concrete and steel have, where possible, a timber alternate – with the aim that we sequester more carbon than was released.The sheer volume of timber in this building is a real statement around what the company, and industry, stands for. Construction has been undertaken by Irving Smith Architects, Scott Construction New Zealand and Network Tasman Limited. Design highlights include:
Source: OneFortyOne Jobs
Buy and Sell
... and one to end the week on… Tetris packed timber
This was too good not to share. Credit to Transport NZ.   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
|
