Friday Offcuts – 25 October 2024
Click to Subscribe - It's FREE! Welcome to this week's edition of Friday Offcuts.This week, we successfully hosted WoodWorks 2024 in Rotorua, New Zealand, bringing together over 200 leaders in engineered wood design and construction. The event highlighted groundbreaking developments in mass timber technology and showcased the latest innovations in the industry. Stay tuned for more details and insights next week. In other news, we highlight the ongoing challenges in Australia’s wood processing sector, where new statistics reveal continued mill closures despite rising revenues. The Australian Furniture Association is urging suppliers to address the growing concern of harmful chemicals in furniture, while King Charles III has visited CSIRO’s Bushfire Research Lab to explore cutting-edge wildfire mitigation technologies. Across the Tasman, the New Zealand Government has proposed a 50% reduction in ETS per-hectare annual charges, building on last week’s announcement to restore confidence in the forestry sector. Aratu Forests is also taking innovative steps to reduce storm debris by installing high-strength steel nets, showcasing the industry’s increasing focus on environmental protection. On the innovation front, research into converting pine slash into marine biofuel is set to transform the industry, while advancements in satellite truck tolling and supply chain compliance tools are making waves. Lastly, FIEA is seeking speakers for the upcoming WoodTECH 2025 event series, which will highlight advancements in timber processing, AI, robotics, and more. See below for details on how you can participate. Read these and more in another packed edition of Friday Offcuts. Enjoy.
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This week we have for you:
Australia’s wood processing sector - mills continue to close
The ABARES National Wood Processing Survey 2021–22 shows that in 2021-22 there were a total of 252 mills operating. This is a fall of 47 mills since 2016-17, continuing a downward trend in the number of sawmills operating over the past 30 years. ABARES Executive Director Dr Jared Greenville said we estimate that of the 252 mills operating in 2021-22, 146 were hardwood sawmills, 48 softwood sawmills, 13 cypress sawmills, 20 post and pole mills, and 25 wood-based panel mills. “The falling mill numbers have predominately been driven by consolidation, with a number of the remaining mills increasing their input capacity,” Dr Greenville said. Compared to 2016-17, sawnwood production fell by 8% to 4.3 million cubic metres, with softwood production down by 5%, hardwood production down by 21% and cypress pine down by 30%. Sawnwood revenue for the sector was estimated to be $3 billion in 2021-22, up 8% in real terms from 2016-17. Higher product prices have been outweighing falls in sawnwood timber production, contributing to the real increase in production value for the sector. “Survey results also show that sawmills and post and pole mills remain a strong employer in the forestry industry, with more than 7,500 employees, said Dr Greenville.” Read the full report here: ABARES National Wood Processing Survey 2021-22. Source: ABARES Plans for high strength steel nets to manage woody debris
Aratu Forests has announced plans for the first of
three Swiss-designed high strength steel debris nets which aim to reduce
the amount of woody debris flowing into catchments following storm
events.Aratu plans debris nets at private properties bordering Te Marunga, Waimanu and Wakaroa forests. These will be subject to a resource consent process. The first is planned to span a waterway near Wakaroa Forest on a site straddling two properties. These will complement a range of other measures within the forest that have already been implemented or are planned. “We’re committed to being a responsible custodian of the environments we operate in, so we’re pleased to be advancing our plans with today’s announcement,” said Neil Woods, Aratu Chief Executive. “Debris nets are one part of a toolbox of measures we are using and plan to use to minimise woody debris accumulating in plantations and migrating down waterways after storms." The nets are an extra layer of protection that have been successfully used overseas and in New Zealand. They’ve proven to be very effective at saving lives, buildings, and land from the impacts of woody debris and rock falls. “We’re proud to be partnering with Swiss-based Geobrugg, the pioneer of debris net technology," said Neil Woods. In the last 10 years Geobrugg has installed over 250 debris flow barriers of the kind proposed by Aratu in more than 25 countries including New Zealand. The planned net will be the first of its kind in Tairāwhiti. One installed in 2021 in northern Hawke’s Bay has worked well to date to trap debris after storms. The region paid a high price for the devastation caused by cyclones Hale and Gabrielle. Like all forestry companies in Tairāwhiti, we work in a very challenging environment with many trees planted on highly erodible soils on steep hill slopes. “We have learnt much from the cyclones and are determined to keep lifting our game to limit the impacts from our operations. We look forward to progressing the resource consent process with the Gisborne District Council so we can get on with doing our bit to better manage woody debris in Tairāwhiti,” said Neil Woods. More >> Source & image credit: Aratu Forests Additional coverage from Stuff: First 'slash nets' planned for Gisborne forestry blocks King Charles fuels global interest in bushfire research
His Majesty King Charles III visited CSIRO’s National
Bushfire Behaviour Research Laboratory in Canberra,
“fuelled” by his passion for the environment and interest in
climate change impacts. As the increasing impact of wildfires are being felt around the globe, The King gained insight into how Australian scientists work collaboratively to understand and predict bushfire behaviour, as well as help protect communities and fire crews during outbreaks. The visit to Australia’s national science agency was part of The King’s sustainability-themed visit to Australia and his second visit to a CSIRO Canberra site. In February 1966, a young Prince Charles visited the CSIRO Division of Wildlife Research Division at Gungahlin. CSIRO chief executive, Doug Hilton, said he was proud to show how CSIRO’s bushfire research was not just helping Australians solve a significant national challenge. It also aids an international community who are sharing learnings and building resilience to these extreme events. “The rising threat of extraordinary landscape fires has shown that uncontrollable and devastating wildfires are becoming an expected part of our seasonal calendars. Not just in Australia, but across the globe,” Dr Hilton said. Under climate change, countries are likely to see a greater frequency of conditions conducive to the outbreak of wildfires, even in places that haven’t historically experienced the impacts of these unplanned large fire events. This has been exemplified by events such as the Wennington wildfire that took place in east London, on 19 July 2022, during the 2022 United Kingdom heatwave. This luckily did not cause loss of life but still destroyed close to 20 houses. During his visit to the CSIRO bushfire lab, The King witnessed two bushfire demonstrations. The first involved him igniting an experimental fire in the ‘Pyrotron’ - a 29-metre-long combustion wind tunnel that enables the study of fires in a safe and controlled environment. He then met with CSIRO researchers, ACT Rural Fire Service Chief, Rohan Scott, and members of the Tidbinbilla volunteer brigade, to witness a ‘burnover‘ drill using an ACT Rural Fire Service heavy tanker. CSIRO Senior Research Scientist, Dr Matt Plucinski, who conducted the Pyrotron demonstration, said the apparatus was used to better understand bushfire behaviour and the factors that influence bushfires, such as wind and fuel types. It is also used to improve understanding of suppression effectiveness and bushfire emissions. “Understanding changing weather patterns due to climate change and the likelihood and behaviour of bushfire outbreaks helps to increase resilience in Australia and overseas, especially in regions that previously haven’t been that prone to bushfires,” Dr Plucinski said. “This research and the predictive models of bushfire spread we develop are used by fire agencies for planning suppression strategies and warning communities in the likely path of the fire.” CSIRO’s research into understanding bushfire behaviour and the weather that impacts the fires - as demonstrated by the Pyrotron - in turn helps scientists and fire agencies work out what protection firefighters may need in the field. More >> Source & image credit: CSIRO  NZ Government reduces Forestry ETS annual charge by 50%
The Government has started consultation on a 50 per cent
reduction to the annual charge for forest owners participating in the
Forestry Emissions Trading Scheme (ETS) Registry, Forestry Minister Todd
McClay announced.Following an independent review released last week, the Government is proposing to lower the per-hectare annual charge to $14.90. This is a 50 per cent reduction from the current charge. “It’s now clear that the previous Labour government made a number of decisions that drove up the cost of this Registry, and they expected the forestry sector to pay for their mistakes. Cabinet has agreed that the sector should not bear the brunt of Labour’s previous decisions,” Mr McClay says. “The Ministry for Primary Industries has worked hard to find efficiencies and drive down costs over the last 10 months. We’ve also been focused on improving service delivery to ensure the Registry meets the expectations of forestry users. As a result, the annual charge has reduced significantly. “Last week, we announced the formation of a Forestry Sector Reference Group to further improve outcomes for the ETS Registry and find greater cost savings over the next year. This is an opportunity for the forestry sector and government to partner to drive better outcomes for forestry," Mr McClay says. The new annual charge would begin in the 2024/25 financial year and stay in place until a full review is conducted after the current emissions reporting period. The proposal is part of the Government’s promise to rebuild confidence in the forestry sector and support its role in achieving New Zealand’s exporting and emissions targets. Consultation on the new annual charge starts today (23 October 2024) and runs for three weeks. It covers the reduced annual charge and adjustments to the Climate Change (Forestry) Regulations 2022 for participants using the field measurement approach during the 2023–25 period. Following consultation, Cabinet will move quickly to finalise the regulations, giving participants clarity and certainty on charges. Details on the consultation are available HERE. Source: Beehive  WoodTECH 2025 - Call for speakers to reshape the sector
The opportunity of a generation? Climate change and the
readiness of the New Zealand and Australian wood processing industry to
take advantage of a new future?In the first in-person WoodTECH event series since before COVID-19, WoodTECH 2025 will be run in Rotorua, NZ on 13-14 March 2025, and Melbourne, Australia, on 18-19 March 2025. This technology-led series will bring together industry leaders, wood processing and manufacturing companies, experienced energy and wood residues specialists and technology innovators. WoodTECH speakers will share their expertise, innovations, and technologies, to help businesses, from across Australasia, become more competitive. We are currently developing both programmes and are seeking people to submit a presentation proposal. We will also consider running pre-conference and post conference workshops at both venues. Topics include timber processing, mill data management, wood treatment, wood residues, manufacturing, AI, robotics, and much more. To be considered for a presentation, please send the following details to ken.wilson@fiea.org.nz.
The final programme will be released next month. Further details about the event can be found on the WoodTECH 2025 website. Source: FIEA AFA urges immediate action on PFAS chemicals in furniture
The Australian Furniture Association (AFA) is calling on furniture
manufacturers and suppliers to take urgent action in addressing the
presence of harmful PFAS chemicals, following increased media coverage
of these "forever chemicals" and their associated risks. PFAS (per- and polyfluoroalkyl substances) have been identified in numerous consumer goods, including furniture, where they are often used in fire retardants, stain repellents, and water-resistant treatments. These chemicals have been shown to persist in the environment and have been linked to health issues in humans and animals, with recent findings showing contamination of water supplies in Australia. The AFA’s 2022 government-funded study on Chemicals of Concern revealed that PFAS and other hazardous chemicals are present in a significant proportion of furniture products consumed in Australia, predominantly cheap imported ‘fast furniture’. This highlights the critical need for industry to ensure that their products do not contribute to the growing environmental and health risks posed by these chemicals. ‘With PFAS found in drinking water, it raises the question: where else are these harmful chemicals present? Are they in the furniture we sit on every day - at schools, hospitals, workplaces, and in our homes? It’s imperative that businesses take immediate steps to assess the safety of the materials they use and ensure compliance with evolving regulations’ says AFA CEO, Patrizia Torelli. Preparing for the Future: PFAS and the ESP Policy Manufacturers must act now to remove PFAS from their supply chains, particularly as the Environmentally Sustainable Procurement (ESP) Policy, set to take effect on 1 July 2025, will impose strict sustainability requirements for furniture procurement in Australia. Under this policy, any procurement above $1 million will be subject to these new standards, and businesses that fail to comply may find themselves excluded from future procurement. The AFA is urging manufacturers to conduct thorough checks on the chemicals used in their materials, such as fire retardants, water repellents, fumigants, and coatings. It is crucial to request and review detailed material data sheets from suppliers to ensure that harmful chemicals like PFAS are not included in their products. How the AFA Can Help:
For further information and guidance on removing PFAS from your products, or to learn more about the Digital Product Passport System, please contact the AFA at hq@afisc.com.au. Source: Australian Furniture Association (AFA)  Survey - Better data on NZ wood processors & manufacturers needed
The contribution of the wood processing and manufacturing sector to New Zealand needs to be better understood by government and stakeholders. The Ministry of Primary Industries (MPI) is updating a directory of commercial wood processing and manufacturing entities through a short survey.MPI has discussed the benefits of the survey with sector representatives, and we encourage you to participate. Who are we? Where are we? How much we process or produce? These are key questions continuously posed to the sector. This survey is the first step to further engagement to collate sector information and share information. If you are part of the wood processing and manufacturing sector, please fill in the survey: https://mpi.wsp-tools.app/wpd. It should take only 2 to 5 minutes to complete. You could also scan it via this QR code:  The survey has straight-forward questions about company details, processing locations and capacity. If you have any questions, please contact kyle.wills@wsp.com (WSP New Zealand).Source & image credit: MPI – Te Uru Rakau / WSP New Zealand Turning pine slash into marine biofuel
In a laboratory on the outskirts of Rotorua, scientists are
honing a process that could one day deliver a $600 million-a-year marine
biofuel industry to help with shipping’s carbon
problem. It’s world-leading technology that could
lead to the establishment of a sustainable timber-based marine biofuel
industry in New Zealand to help reduce the climate impact of shipping
our exports to the world.As a commodity exporter distant to the countries it exports to, New Zealand is exposed to a global shipping industry responsible for around 3% of human generated carbon emissions, and left unchecked could rise into double digits by 2050. There’s no shortage of ambition to decarbonise shipping. The International Maritime Organisation has challenged the marine cargo industry to go carbon neutral by 2050. More >> Source: The Press Image credit: Scion NZUs poised for upside as auction loomsOpinion Piece: Nigel Brunel, Managing Director, Marex New ZealandSpot NZUs continue to grind along and whilst there are quite good volumes still going through the market – it has been effectively a sideways market for over a month, trading a NZ$2 range between NZ$61.50 and NZ$63.50. It’s just over 5 weeks to the final auction of the year – where there is 11 million NZUs up for grabs at NZ$64. It’s likely we will see a partial clearance, given concerns are building that from 2025 we are starting to see a structural deficit in supply. Entities may also have concerns about being able to secure sufficient volumes in the years ahead. Some entities have demand that is greater or equal to the entire auction volume for 2025, and beyond. There is almost twice as much volume in this auction than all of 2025. Let’s also not forget that next year the auction floor is NZ$68 – so this auction is good value in relative terms at NZ$64 and we expect this to be a driver.  We would be surprised to see the entire auction clear but odds on we may get a third away. How will the price react? Our view is that there is NZ$5 to NZ$6 of upside on a partial clearance of around 3 million. All unsold auction volume is cancelled. There could be a short-term negative price reaction if it totally cleared (unlikely) because some may view that supply entering the market will dampen demand, but our view is that it would be short term and a buying opportunity. Our rationale is reasonably simple:
Chart credit: Carbon News  Are industry good organisations good for industry?The Common Ground is a new resource where Aotearoa New Zealand’s food & fibre sector comes together to solve our wicked problems. An extensive report, 'Are industry good organisations good for industry?', is a culmination of over 12 years of insights. Proposed by AGMARDT and KPMG New Zealand, it’s a collaboration platform where food & fibre thinkers and doers team-up, get funded and tackle our mega-challenges and opportunities.Forestry has a strong history of internal collaboration. Some principles of The Common Ground offer pathways for future collaboration with other sectors on shared opportunities. Top of mind is the tension between forestry and livestock farming – it’s feasible that a collaboration platform like this could be the forum for a more integrated approach to this issue. The Common Ground begins as a report and call for a sector-wide conversation about our collective future. Learn more and have your say at www.thecommonground.org.nz Source: The Common Ground Next generation increasing access to tree seedlings
Access to tree seedlings for commercial plantations and
biodiversity plantings has just become easier with the next generation
at Hills Transplants growing the business. From
what started 60 years ago as a humble backyard market garden at the
family home in Don, Stephen Hill has morphed what his father John
started into a multi-layered commercial enterprise.Not only do the Hills grow seedlings for the forestry industry and agriculture producers, and raspberry cane propagation, but they supply the nation’s biggest grocery chains with herbs and other leafy greens year-round using the latest techniques and technology. And now Stephen’s sons Josh and Sam are looking to diversify Hills Transplants even further and make it easier for Tasmanian landowners to access tree seedlings for commercial timber and biodiversity or riparian area purposes, trading as S & J Seedlings. “We believe there is a market out there for us to grow to order certain species for landowners and farmers to plant trees on their land,” Josh said. “The approach is customer-focused, catering to specific orders and delivering seedlings when required. “If a farmer comes to us with a particular order for a specific species, we have quality seed for, we're more than happy to pack the right amount and get them out the door exactly when they want them. Two or three years ago, we just started selling a few extra pines and eucalypts that we had surplus of at the time after we finished our pack out for the year. It was like we’d put in a hook we caught shark. It was that successful. “We’re fairly new at it, and we will be kind of relying on someone to come to us with different lines that we could potentially use so, therefore, we can trial it and get the seed and then grow it.” More >> Source & image credit: Private Forests Tasmania Netherlands announces satellite truck tolling
The Dutch transport authority, RDW, has announced that
it has awarded the contract for a new satellite-based electronic
tolling system for trucks to Triangle, a consortium led by the
Portuguese company Via Verde.Triangle, which includes partners Yunex Traffic and Ascendi O&M, will be responsible for implementing and managing the toll collection system. This system will operate on highways and select national and municipal roads throughout the Netherlands. The new truck levy is scheduled to begin in July 2026. Under this system, truck owners will pay per kilometre driven on designated roads. To facilitate this, Triangle will provide the necessary on-board equipment for trucks and manage the operational back office for the satellite-based tolling system. More >> Source: Traffic Technology Today TrusTrace unveils highly-automated deforestation compliance
TrusTrace, a global SaaS company with a market-leading platform for
product traceability and supply chain compliance, has announced the
launch of its new Deforestation Compliance Solution. This helps brands
achieve and prove deforestation-free shipments ahead of the
delayed Regulation on Deforestation Free Products
(EUDR) enforcement. While a delay may be welcome to many,
the EUDR requirements remain – meaning brands should continue to
prepare for EUDR compliance even in the case of delay. EUDR aims to prevent deforestation by ensuring products entering the EU do not contribute to deforestation or environmental degradation. To comply, companies must provide full traceability to the plot of land, and ensure their EU-bound products are free from deforestation-related practices. This is poised to have significant impacts across the retail industry, as widely used materials like rubber, wood, and leather fall within its scope. “For businesses, navigating the complexities of EUDR is daunting; they are under immense pressure to produce granular traceability data, which makes compliance practices challenging since they need to integrate new processes into existing frameworks,” said TrusTrace CEO and Co-Founder Shameek Ghosh. “This is where our new Deforestation Compliance Solution comes into play. It is designed to seamlessly integrate into the existing processes, ensuring that EU-bound products in the brand's supply chain are compliant with EUDR requirements. The solution is part of the TrusTrace platform, which harmonizes data collection and actions for efficiency and proactive compliance, enabling brands to leverage the collected data to adhere to a broader set of regulations.” The TrusTrace Deforestation Compliance Solution, which was co-designed with leading enterprise brands to validate that it meets industry needs, enables shipment-level deforestation compliance with ease. The solution employs sophisticated automation to enable users to send hundreds of data collection requests with a single click, perform geospatial deforestation analysis in real-time, and generate pre-formatted due diligence statements for instant submission. The collaboration with OpenAtlas, a leader in geospatial analysis, ensures the highest quality satellite imagery and analysis, combining multi-spectral satellite imagery with state-of-the-art AI. To aid EUDR compliance TrusTrace encourage users of the platform to obtain an FSC Certification and ensure certification of their supply chain all the way back to the forest level. Material sourced from FSC-certified forests and plantations is largely aligned with EUDR requirements, providing assurance that strict requirements for sustainable forestry have been met in the country of origin. More >> Source & image credit: TrusTrace  Jobs
Buy and Sell
... and one to end the week on... robot poops tree seeds
Dubbed the Plantolin, the bio-inspired bot is the latest winner of the annual Natural Robotics Contest, which is run by the University of Surrey and funded by the British Ecological Society. More >> Source: New Atlas  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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