Friday Offcuts – 23 August 2024
Click to Subscribe - It's FREE! Welcome to Friday Offcuts.This week, the Australian Government marked National Forestry Day with a A$5.65 million investment in new plantations and industry training, improving future timber supply across NSW, Victoria, WA, and Tasmania. The 2024 National Forestry Day theme was 'Celebrating Nature’s Carbon Store', and highlights how the sector plays an important role in fighting climate change. In New Zealand, Climate Change Minister Simon Watts announced reforms to the Emissions Trading Scheme (ETS), on the eve of the Carbon Forestry 2024 event, bolstering market confidence and support the forestry sector. Unsustainable energy costs, however, continue to threaten NZ wood processors, with several mills facing closure. Addressing the national energy supply shortage is critical, and increasing the use of woody biomass for industrial heat could be a sustainable solution. On the innovation front, we explore the use of generative AI in organisations and the test flight of a rocket-powered aircraft intended for satellite delivery. FWPA also launched projects to improve plantation productivity, while a global report warned of record-setting forest fires becoming the norm. Read these and more in another packed edition of Friday Offcuts. Enjoy.
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This week we have for you:
Australian Govt announced A$5.65 million funding
The Albanese Labor Government is marking National Forestry
Day with the delivery of new opportunities and support for the
forestry sector. The Government has announced
funding worth A$5.65 million for 8 new plantation projects
through round 2 of the Support Plantation Establishment program. The projects will provide long-rotation softwood plantation forests, bolstering Australia’s future timber supply while contributing to meeting Australia’s carbon emission targets. The projects will establish softwood plantations ranging from 40 to 1671 hectares in size located across NSW, Victoria, Western Australia and Tasmania. These 8 new projects are in addition to the 19 projects from round 1 worth over A$10 million, bringing the total funding awarded to date through the program to more than A$15.7 million. The Government is also announcing today that ForestWorks Ltd will deliver the Forestry Workforce Training Program. The Government has invested A$10 million to deliver the Forestry Workforce Training Program. ForestWorks Ltd will deliver a suite of activities over the next two years to improve access to required qualifications and credentials for the forest and wood products sectors. The program will include a number of pilot projects and trials including developing and applying stackable micro credentials, a new school-to-work traineeship transition program, creation of specialised mentorship for Indigenous Australians and women, and improved ways to deliver training to employees in remote and regional Australia. The government is providing this new support to help grow the plantation forest estate after more than a decade of reduction. Recently, there have been signs of renewal in Australia’s plantation forest estate. In 2022–23 new plantation establishment doubled when compared to the previous year, with 4,500 hectares of new plantations established. "Australia’s forestry industry is a key part of the Australian economy, providing jobs and development for people across the country," said the Hon Julie Collins MP, Minister for Agriculture, Fisheries and Forestry. "National Forestry Day is an excellent time to highlight the importance of our forestry workforce for the economy, as well as remind us that timber is the ultimate renewable and has an important role to play." More >> Source: Department of Agriculture, Fisheries and Forestry, Australian Government Updated ETS - A positive step forward
The New Zealand Institute of Forestry (NZIF) welcomes the Government's recent announcement regarding the updated settings for the Emissions Trading Scheme (ETS) as a crucial move in restoring confidence within the market and the forestry sector.This week, Climate Change Minister Simon Watts confirmed the Government's decision to retain the current auction price floor, the cost containment reserve price, and the existing reserve volumes in the ETS. Additionally, the number of units available will be reduced between 2025 and 2029, signalling a commitment to strengthening the ETS framework. James Treadwell, President of the NZIF, expressed optimism about the Government's approach, highlighting its importance in stabilising the market. “This announcement is a clear signal from the Government, that they are committed to restoring credibility to the ETS,” said Treadwell. “The stability provided by maintaining the current settings, along with the reduction in units available, should help rebuild market confidence, which has been shaken in recent years.” Treadwell noted the previous suggestions of lowering the price floor had significantly undermined the market, leading to a decrease in carbon prices and a drop in planting and investment intentions. However, he believes today’s announcement is a step toward restoring trust in the climate forestry sector. “There is still more to be done, but this move is a positive start. It’s crucial the Government continues to support the ETS and allows it to operate effectively without further disruptions,” Treadwell added. “With a stable ETS and a rising price for carbon units, we expect to see increased investment in the actions necessary to meet New Zealand’s international climate commitments. Forestry, as outlined in the Government’s climate strategy, will play a critical role in achieving these goals in an economically and environmentally sustainable manner. For the sector to make the long-term decisions required to meet the Government’s afforestation targets, maintaining stability and confidence in the ETS is essential.” Media release Source: The New Zealand Institute of Forestry (NZIF)  Australia's National Forestry Day
Australia's National Forestry Day on 20 August 2024, saw several
releases highlighting efforts and developments in the country's forestry
sector. These updates emphasise the ongoing importance of forests to
Australia's environment and economy.Australian Forest Products Association Today is National Forestry Day – a time to celebrate the importance of Australia’s forest industries and the benefits they provide for our country and the rest of the world! Without forestry, timber, wood-fibre – the jobs and products they create – and the communities they support – Australia would be poorer and our lives harder. The 2024 National Forestry Day theme is Celebrating Nature’s Carbon Store. As trees grow, they absorb carbon from the atmosphere. When those trees are sustainably harvested, the timber and fibre is made into essential everyday items. Australian Forest Products Association (AFPA) Chief Executive Officer, Diana Hallam said, "Today is a day to celebrate why Australia’s forest industries are so important for our lives and I commend everyone across the sector for marking National Forestry Day in their own way! "Timber and fibre products are visible in almost every facet of our lives – if people look around for just a few minutes they are likely to spot several timber and fibre products, from hardwood flooring and kitchen benches to the desk at work or dining table and backyard deck at home, not to mention books and tissues. " More >> Source: Australian Forest Products Association Australian Forest Contractors Association National Forestry Day is a chance to celebrate Australia’s renewable forest industries and the thousands of people who manage, protect, sustainably harvest and regenerate our working forests. Australian Forest Contractors Association General Manager Tim Lester said forestry is a ‘yes and’ industry that promotes sustainable land management, thriving rural and regional communities and renewable resources for essential everyday items. “This year’s National Forestry Day theme is Celebrating Nature’s Carbon Store. This is a great reminder that trees are the best, most efficient and only commercially-viable technology at scale to take carbon from the atmosphere and sequester it into stable and useful forms,” Mr Lester said. “Australia’s working forests for softwood and hardwood are well regulated and well managed. Our forest contracting businesses and workforce are highly skilled and experienced, providing a vital link in the supply chain. “We should all be rightly proud of this amazing industry that provides so many benefits and that touches the lives of every one of us every single day. Source: Australian Forest Contractors Association Forestry Corporation of NSW NSW’s forest sector is this week celebrating timber - the ultimate renewable product. Tuesday, August 20 marks National Forestry Day recognising Australia’s forest sector while celebrating the natural advantages of wood and the contribution timber makes to reducing the effects of climate change. Timeless in its building appeal and universal in its application, timber produced from our sustainably managed forests is a strong pillar of the national economy driving employment. Forestry Corporation Chief Executive Officer Anshul Chaudhary said forests also store carbon from the atmosphere for life and create the essential and sustainable products Australians love, need and use every day. “In producing sustainable timber products, forests are nature’s carbon store meaning the forestry sector is hugely important as a climate change solution,” Mr Chaudhary said. More >> Source & image credit: Forestry Corporation of NSW --(2022)2.jpg) Mayors meet PM to find solution for WPI and energy costsCentral North Island district mayors from Ruapehu, Kawerau and Taupo whose forestry mill operations are threatened by soaring electricity prices, have met with Prime Minister Hon. Chris Luxon and Regional Development Minister Hon. Shane Jones to discuss urgent actions to prevent the closure of mills and other export manufacturers.Ruapehu Mayor Weston Kirton, Kawerau Mayor Faylene Tunui, and Taupo Mayor David Trewavas together with local iwi expressed united concern for the central North Island economy and its communities following Winstone Pulp International (WPI) announcement of plans to shut down its Tangiwai Sawmill and Karioi Pulpmill due to unsustainable energy costs. They warned that this impending closure is only the 'tip of the iceberg' unless an urgent solution is found for other New Zealand export manufacturers facing similar pressures from unsustainable energy costs. The mayors were 'cautiously optimistic' about the prospects of keeping WPI operational after their meeting with the Prime Minister and the Regional Development Minister. "There is no doubt that the Prime Minister and Minister Jones are acutely aware of what is at stake. They share our concerns for the economy and our communities, and want to find a workable solution," said Mayor Kirton.  "The government has demonstrated its commitment by inviting us to collaborate with WPI and present a proposal outlining what it would take to keep the mills operating. We are now working with urgency on developing a solution to put to them. We are grateful for the government's attention and support in addressing the immediate crisis facing WPI. The government has committed to considering whatever short-term solution we can put forward while they work to establish a long-term fix to prevent such a situation from arising again in the future," he said. Source & image credit: Ruapehu District Council See also:
 Forest owners concerned about new land use report
Forest owners are concerned that the environmental and socioeconomic
benefits of pine forests have been
misrepresented by rhetoric in a new land use
report.The report, Why Pines?, produced and published today by Our Land and Water (Toitū te Whenua, Toiora te Wai) National Science Challenge (OLW), details the results of four research programmes which looked at future land use under the current economic incentives and policies. In each of the programmes, all modelling indicated that increasing areas of exotic pine forest and decreasing areas of sheep and beef farming would be the most viable way of improving New Zealand’s environmental performance while achieving an acceptable level of economic return in future. New Zealand Forest Owners Association (NZFOA) chief executive, Dr Elizabeth Heeg, says while the sector welcomes the science and modelling behind the report, a more critical examination of land use evidence is needed. “The recommendations lack scientific evidence and the narrative fails to frame forestry as an important land use,” Elizabeth says. Water quality was a core focus of the research programme, with forestry found to outperform other land uses, particularly where farmland had been converted to pine. “Well managed pine is hugely beneficial to water quality, improving water nutrient levels and sediment yields,” Elizabeth says. “The report’s findings mirror years of credible science analysing water quality in pine forests. “Paradoxically, that evidence doesn’t seem to be the outcome the OLW were looking for, with the authors raising more concern over forestry’s water quality than other land uses detailed in the report. It is disappointing to see the results interpreted in such a dramatic way when pine is evidently a tool New Zealand can use in its policies and practices tool kit.” Elizabeth says concerns over a loss of biodiversity from conversion to pine is also unfounded. “New Zealand’s pine forests house incredibly rich and healthy ecosystems that should be considered a valued part of New Zealand’s landscape,” Elizabeth says. “They’re home to many invertebrate communities and 120 native fauna species, which have been documented using pine forests as habitat. Species, such as the kiwi, are well protected by the high degree of pest management and monitoring carried out by forest owners too. “Pine forests support a rich mosaic of biodiversity, including protected areas of indigenous forest within the estate and riparian planting.” A mosaic approach to land use will be increasingly important, given modelling indicating that around half the sheep and beef farming area will convert to forestry by 2050. New planting is also expected to expand the forest estate to an estimated 3.5 million hectares. More >> Source: New Zealand Forest Owners Association (NZFOA) Log exports to China: First half of 2024 update
The latest ITTO Tropical Timber Market Report shows that New Zealand continues to be the top supplier of logs to China. In the first 6 months of 2024, NZ accounted for 56% of the national total, up 5% year-on-year. China’s log imports from New Zealand reached 9.21 million cubic metres, valued at US$1.139 billion. China’s log imports from Australia in the first half of 2024 surged more than 400% to 330,000 cubic metres over the same period of 2021, ranking 11th among the top suppliers. Australian imports fell to zero in 2022 because of a ban on imports, as the quarantine service in China detected pests in log shipments. In the first half of 2023, China resumed importing Australian timber. Globally, there is a decline in log imports into China. According to China Customs log imports totalled 18.82 million cubic metres valued at US$3.268 billion in the first half of 2024, down 7% in volume and 8% in value over the same period of 2023. The average price for imported logs was US$174 (CIF) per cubic metre, down 1% from the same period of 2023. More >> Source: ITTO The latest data shows forest fires are increasing
The latest data on forest fires confirms what we've long feared:
Forest fires are becoming more widespread, burning at least
twice as much tree cover today as they did two decades
ago. Using data from researchers at the University of
Maryland, recently updated to cover the years 2001 to 2023, we
calculated that the area burned by forest fires increased by about 5.4%
per year over that time period. Forest fires now result in nearly 6
million more hectares of tree cover loss per year than they did in 2001
— an area roughly the size of Croatia.Fire is also making up a larger share of global tree cover loss compared to other drivers like mining and forestry. While fires only accounted for about 20% of all tree cover loss in 2001, they now account for roughly 33%. This increase in fire activity has been starkly visible in recent years. Record-setting forest fires are becoming the norm, with 2020, 2021 and 2023 marking the fourth, third and first worst years for global forest fires, respectively. Nearly 12 million hectares — an area roughly the size of Nicaragua — burned in 2023, topping the previous record by about 24%. Extreme wildfires in Canada accounted for about two thirds (65%) of the fire-driven tree cover loss last year and more than one-quarter (27%) of all tree cover loss globally. More >> Source: World Resources Institute Blindly electrifying everything is not working
A blind commitment to electrification is only likely to leave New Zealand well short in its energy needs, says the head of Bioenergy New Zealand’s solid bioenergy group.Rob Mallinson says the wholesale push for “electrification of everything” in New Zealand, including industrial process heat and transport, has painted the energy source as a silver bullet to deal with decarbonisation. “This ignores New Zealand’s unique opportunities from the extensive availability of wood waste for bio-heat, bio-gas and liquid biofuels. Such an approach undermines our energy resilience and our productive sectors, and is ultimately costing real jobs.” He points to New Zealand’s extensive wood residue availability, often the co-product of forestry, sawmilling and the construction sector. “Using residues as a fuel avoids the problems we have seen from slash. In some parts of New Zealand, the slash is recovered and used to replace fossil fuels. There is no reason why all our wood residues can’t be used as a fuel. If we did that, then electricity and fossil gas would be freed-up for those businesses which really need them.” Biomass can be used to generate our industrial heat at a much lower cost than electricity or natural gas, leaving those to be used in their higher value applications. “And wood fuel costs have remained at about the same cost for the past 15 years, in contrast to the soaring cost of gas and electricity.” As New Zealand struggles to hang on to affordable base load electricity supplies, wood fuel offers a 24/7 source of stored energy. “Biomass is nature’s best battery – let’s take advantage of that. For industrial heat users, there is no more reliable and cost-effective solution. With Dry Year risk only increasing – it’s a no-brainer.” Electrode boilers, popular recently, need more wind turbines or, if it’s not windy, Huntly to run harder on coal. So biomass boilers, when compared to the alternative of an electrode boiler, are effectively virtual power stations – but ones that use stored energy that can be released 24/7 year-round. “As gas reservoirs decline further and the proportion of wind and solar grows, these virtual power stations will be increasingly valuable.” “And when Genesis Energy starts using wood fuel at Huntly power station, the need for coal to manage electricity supply in dry years will disappear.” He says that the volume of raw logs that New Zealand currently exports every year is staggering, and the equivalent to 150 petajoules of natural gas. “We would only need to divert around 30% of those export logs to decarbonise every single industrial gas and coal boiler in New Zealand.” Using low value export logs for bioenergy would provide another market, a market that is consistent & reliable, protecting jobs. While there are regional supply/demand imbalances, Mallinson says the reality is that wood fuel can be trucked over 300km and the CO2 from that truck’s diesel would only constitute around 2% of the abatement delivered by the wood fuel in the back of the truck, meaning it would still be around 98% carbon-neutral. More >> Source & image credit: Bioenergy Association of New Zealand  FWPA data insights for healthy & productive plantations
Three recently completed, FWPA-funded projects, using data spanning 30
years in Australian forestry plantations, have resulted in actionable
recommendations and guidance for improving productivity, profitability
and health of plantation forests. Reports
Findings have provided insight into nutrition and environmental factors that limit plantation productivity. Existing tools such as ProFert, a fertiliser decision support tool, have been updated and enhanced with this long-term data and are providing immediate value to the industry. “Consultation with our grower members revealed a clear need and appetite for significantly increased investment in plantation nutrition – both through RD&E and capacity building”, said Jodie Mason, FWPA’s Head of Forest Research. “Investing in better calibration of decision support tools such as ProFert goes some way to bridging the gap left as industry experts retire. Some of our new nutrition and physiological modelling projects also have a stronger focus on capacity building to strengthen expertise.” The three projects presented here were developed to support increasing productivity from Australia’s plantation estate, which has remained static or in decline, in terms of area, for the past decade. “There is a strong desire within the industry for increased output to keep in-line with increased demand,” said lead researcher and McGrath Forestry Services Principal, John McGrath. “Land in Australia, especially high-quality land, is very expensive. That means the best option for foresters is to make sure they get the best out of the land they currently have.” The importance of long-term data and insights “One thing all three projects have done is to create new insights from pre-existing historical data,” John McGrath said. “We’ve taken the results of nutrition and silvicultural trials conducted across Australia from as far back as 30 years. So, while our involvement in these three relatively short-term projects has been recent, in many ways the projects themselves have been in development for much longer.” “Obviously, the climate has a massive influence on the growth rate of trees, but also the scale of their response to fertiliser and nutrition management. That interaction between the environment and the management of the plantations has been a core theme throughout all three projects.” The research teams also recognised that climate change is an important consideration, particularly considering rotations in softwood plantations can be 30 or 40 years. So, response to fertiliser is likely to change over long rotations alongside the changing climate. More >> Source: FWPA Generative AI deployment surges
Organisations are rapidly increasing their deployment of generative AI, according to a new report from the Capgemini Research Institute. The study, titled "Harnessing the value of generative AI 2nd edition: Use cases across sectors," highlights noteworthy growth both in investment and utilisation of this technology across various functions within businesses. The report indicates that nearly a quarter of the organisations surveyed are integrating generative AI into some of their locations or functions, a significant rise from 6% in 2023. Chief Innovation Officer at Capgemini, Pascal Brier, commented, “Generative AI is starting to transform business and organisations are already seeing concrete growth in revenue, whilst also accelerating innovation. As a result, rather than solely focusing on cost optimisation, businesses are actively exploring new avenues to leverage its capabilities and drive value creation." A striking 80% of organisations have increased their year-on-year investment in generative AI. Three-quarters of the companies surveyed agree that generative AI is helping drive revenue and innovation. Benefits reported by early adopters include improved operational efficiency, enhanced customer experience, and boosted sales figures. Specifically, organisations experienced an average 6.7% improvement in customer engagement and satisfaction in areas where the technology has been piloted or deployed over the past year. The report underscores the potential of advanced AI systems to significantly impact business operations. Brier elaborated, “As investment increases, the rise of more complex, autonomous AI systems signals a new era of generative AI that could impact the way companies operate. To propel their AI journeys forward, organisations should establish strong data foundations with clear processes to manage siloed data and enable data integration across functions.” The transition of AI chatbots into multi-agent systems is expected to further accelerate value creation. These systems are designed to function independently, plan, reflect, and execute complex workflows with minimal human oversight. “Almost three quarters of organisations (74%) agree that generative AI is helping them drive revenue and innovation," the report states. "As AI technology progresses, it will transition from the role of supportive tool to that of independent agent with increased execution capability.” Trust and ethical transparency remain vital as businesses continue to integrate AI into their operations. Despite the rapid growth, only 3% of organisations have imposed a ban on the use of public generative AI tools in the workplace. Nearly all organisations (97%) allow employees to use generative AI in some capacity, with over half enforcing specific guidelines for its use. The survey suggests that embracing generative AI responsibly will be crucial. The report advises organisations to proceed with a sense of responsibility by establishing clear guardrails to validate AI-based decisions. "Clear guardrails to validate decisions made by multi-agent systems are essential to ensure transparency and accountability in operations and to mitigate the future risks that public tools may pose to their organisation," the Capgemini Research Institute advises. The comprehensive survey from Capgemini included 1,100 executives from organisations with more than USD $1 billion in annual revenue across 14 countries. Organisations across 11 sectors participated in the survey, nearly all of which (96%) have commenced the exploration of generative AI's potential. Executives surveyed held director-level positions or higher and represented various functions within their organisations. The full study is available to download free of charge. Source: itbrief  Highest-performance vehicle to take off from a runwayDawn Aerospace has announced the completion of another flight test campaign of their Mk-II rocket-powered aircraft. The campaign (dubbed Campaign 2-2) saw three flights completed in late July. In flight three, they achieved a maximum speed and altitude of Mach 0.92 (967 km/h) and 50,000ft (15.1km). That is 3x and 5x of what they had achieved in the previous campaign – a massive jump in demonstrated performance.They are now poised to fly supersonic in Campaign 2-3, scheduled for September. But that is just the beginning. In many respects, the Mk-II is slated to be the highest-performance vehicle to take off from a runway. By the end of 2025, they’re looking to:
They have spent about US$10 million on the program to date, and plan to complete it for under $20 million total. So why do they think they will be able to achieve such high performance, with such modest investment? And how are they able to progress through flight testing so quickly compared to other rocket development programs? In short, they realised they were building aircraft with the performance of a rocket, not a rocket with wings. More >> Check out this amazing footage from Dawn Aerospace’s test flight in late July (with their aircraft climbing to 50,000 feet, taking off from Glentanner aerodrome near Mt Cook, NZ) and Kiwi ingenuity in making all this happen. Source: Dawn Aerospace SnapSTAT - How our exports have changed since the 60'sHere's a snap of how New Zealand's exports have changed in composition and destinations from 1963 to 2018.
Source: Economic Transformation by Ganesh Ahirao on Substack
New Chair for WPMA
Wood Processors and Manufacturers Association of NZ
(WPMA) is pleased to announce the appointment of Don
Hammond to the role of independent Chair effective 9 September
2024.Hammond is the current Independent Chair of Phytos, a Fonterra Cooperative Council member, was a shareholder and Chair of a sawmilling and value add timber business, the inaugural Government appointed chair for the Game Animal Council, an independent director of the Bioprotection Centre of Research Excellence at Lincoln and has been chair on the board of various private companies with many of these in the forestry space. Don has interests across forestry, aviation, property, horticulture and dairy farming. He says ‘I believe my knowledge of and experience within the forest side of the sector has the potential to bring a different paradigm to WPMA and assist in creating synergies which will allow greater benefit for all parties’. Mark Ross, WPMA’s Chief Executive, said, “On behalf of the board we are delighted to have Don as our new Chair. He is a highly reputable governance professional with experience in various industries, including wood products and forestry. With the sector having a significant role to play in New Zealand’s future direction, Don’s leadership, strategic thinking and clarity of purpose will assist in steering wood processing and manufacturing into our next stage of economic growth and sustainability.” The WPMA Board would like to acknowledge and thank the outgoing Chair, John Eastwood, for his outstanding contribution to WPMA. Media Release Source: Wood Processors and Manufacturers Association of NZ (WPMA)  Jobs
Buy and Sell
... and one to end the week on… problem solving
According to a news report, a certain private school was recently faced with a unique problem. A number of girls were using lipstick in the school bathroom. That was fine, but after they put on their lipstick, they would press their lips to the mirror and leave dozens of lip prints. 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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