Friday Offcuts – 15 November 2024
Click to Subscribe - It's FREE! Welcome to this week's edition of Friday Offcuts.This week, the forestry sector faces a mix of challenges and advancements. The big one is the proposed cuts at Toi Ohomai. If the proposal goes ahead, it may result in the closure of the Waipā campus – a dedicated training facility that currently operates a working wood manufacturing plant. If it closes there will be no timber machining or saw doctoring block courses left in New Zealand. Following Aratu Forests' recent slash net initiatives to mitigate severe weather damage, Ernslaw One is stepping up with their own plans for debris traps in Tairāwhiti forests. In South Australia, KSI Sawmills has partnered with Greenhill Energy to supply biomass for the upcoming Riverbend Energy Hub, supporting clean energy and local economic goals. Hyne Timber's Tumbarumba Sawmill extension boosts timber protection and regional job growth. Market shifts are also making waves, as Donald Trump’s return may see the U.S. surpass Canada in softwood lumber production, driven by trade tensions. Meanwhile, changing U.S. policies could impact China’s demand for New Zealand logs, affecting export dynamics. On the innovation front, FWPA’s upgraded Data Dashboard offers crucial market insights, while their draft Exterior Timber Wall Cladding Standard is open for industry feedback. Lastly, we’re excited to host ForestTECH 2024 in Rotorua next week, followed by Melbourne a week later. Registrations are still open—join us for the latest in forest technologies! Read these and more in another packed edition of Friday Offcuts. Enjoy.
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This week we have for you:
Toi Ohomai cuts threaten one-of-a-kind campus
Te Hautū Kahurangi | Tertiary Education Union is slamming cuts
currently proposed by Toi Ohomai that, if confirmed, would see up to 20
jobs lost and the end of highly valued courses that industry leaders say
they can’t do without.Courses at risk across campuses in Taupō, Tokoroa, Rotorua, Tauranga and Whakatāne include Apiculture; Makeup and Skin Care; Forestry; Forest Management; Timber Machining; Hairdressing; Health and Rehabilitation Studies; Health and Wellbeing; Sterilising Technology; Pest Operations; Social Work; Youth Work; Whānau Ora; Secondary Tertiary Exploration Programmes; Primary Industry Skills; and Supply Chain Management. If the proposal goes ahead, it may result in the closure of the Waipā campus – a dedicated training facility that currently operates a working wood manufacturing plant. Kerry Parker, a Senior Academic Staff Member in Forestry and Wood Manufacturing says “our Waipā timber industry training centre is the only facility of its kind in the Southern Hemisphere, and once it’s gone it will never come back. If it closes there will be no timber machining or saw doctoring block courses left in Aotearoa.” “Industry leaders are distraught. They strongly prefer the on-campus delivery we provide over on-the-job training. They describe Toi Ohomai graduates as highly trained and qualified tradespeople who bring essential skills, experience, and value to the industry. And they are angry there has been no consultation or communication with them.” “I train students who have come from Invercargill right up to Kaitaia. About 40 of them are currently part way through their qualifications, some with 3 years to go to complete their trade, and they are really upset about the possibility of being left out to dry.” Additional proposals have the rumour mill spinning that Taupō campus, in the heart of the North Island, is also at risk of closure. TEU’s Te Pou Ahurei Takirua – Ahumahi | Assistant National Secretary – Industrial, Daniel Benson-Guiu says "educational provision across Aotearoa is at risk - and campuses outside the big cities, like the Taupō campus, is a case in point. We need institutional leaders to come clean about their plans - and importantly they should be consulting early with Iwi, industry, local councils and affected communities. These campuses, and the training that comes out of them, are the lifeblood of regional New Zealand.” “These proposals also come at a time when there is no clarity from the Minister of Tertiary Education and Skills about what the future holds for Te Pūkenga. So decisions like this being made now will be inherited by future institutions and will result in a weaker vocational education and training system.” TEU has received 18 letters of support from timber and forestry industry leaders, strongly advocating for the retention of the current course offerings at Waipā. Source & image credit: Toi Ohomai  Tumbarumba Sawmill extension officially completed
Hyne Timber has officially marked the completion of their
new 4700m2 storage facility with a ribbon cutting
celebration held at the Tumbarumba Sawmill. The event
marked a new era in the protection of timber from the weather, while
also reflecting on the devastating impact of the 2019/20 bushfires. The
Hon. Michael McCormack MP, the new Mayor of the Snowy Valleys Council,
Councillor Julia Ham, and several other key stakeholders also attended.
Jim Bindon, CEO of the Hyne Group, addressed the gathering, congratulating those involved on this successful milestone, “Many team members and contractors have been involved in the delivery of this storage facility including local companies, Joss Constructions and Wagga Fire. You should all be proud of the smooth project management and successful completion. This facility is a critical asset to protect our products from adverse weather exposure to extract the maximum value from our pine log feedstock since the bushfires." “Operational efficiency for this Mill has never been more important, and I thank both the Australian Government and NSW Government for their support with bushfire recovery funding, which contributed towards the delivery costs. This support made our investment viable," said Mr Bindon. Now complete, the new storage facility can store 4000m3 of timber known in the process as ‘Rough Sawn, Kiln Dried’ (RSKD) material. Albury based Joss Construction was appointed to undertake the build with official occupancy granted in October 2024. The project prioritised utilising local trades and suppliers and injected over $5,000,000 directly into the regional economy. The project is jointly funded through the Australian and NSW Government’s Bushfire Local Economic Recovery Fund and the Australian Government Forestry Recovery Development Fund. Minister for Agriculture, Regional NSW and Western NSW Tara Moriarty said the Tumbarumba Mill Optimisation project is an example of the Australian and NSW Government’s commitment to building stronger, more resilient regional economies. “The increased storage capacity at Tumbarumba Mill will ensure this important timber processor can maintain its production of timber supplies for the building sector while securing those local jobs the community relies on,” Ms Moriarty said. “The Australian and NSW Governments are backing projects in the Snowy Valleys region that will boost preparedness for future disasters, encourage economic recovery, aid tourism and bring people together.” While the Hon. Kristy McBain MP, Minister for Regional Development, Local Government and Territories was unable to attend the celebration, she sent a message of support. "I would like to apologise for not being here with you in person to mark this wonderful occasion. Thank you to Hyne Timber for the invitation to attend today - this new storage facility will prove critical in assisting Hyne to protect its products from weather exposure. I'm proud that it was jointly funded by the Australian and NSW Governments as part of the Bushfire Local Economic Recovery Fund and the Australian Government Forestry Recovery Development Fund - it's build alone creating 30 additional local jobs during the construction." More >> Source & image credit: Hyne Timber  KSI Sawmills to supply residues to new Riverbend Energy Hub
Greenhill Energy and KSI Sawmills have signed a Memorandum of
Understanding (MOU) to support both company’s commitment to
sustainability and underpin supply of sustainable biomass at scale to
Riverbend Energy Hub.Under the MOU, subject to regulatory approvals KSI Sawmills will supply Greenhill Energy’s Riverbend Energy Hub, with timber residues from its proposed new sawmill site at Monarto, in South Australia’s Murraylands region. The sawmill is currently progressing through local government development approvals and subject to receiving these approvals, is expected to commence construction in 2024 and operations in 2025. Timber for the sawmill will come from sustainably certified plantation grown sources, primarily throughout the Mt Lofty Ranges. Timber residues from sawmill operations will be available for sustainable biomass supply in multiple tranches, over time, to match the planned development stages of Riverbend Energy Hub™. Greenhill Energy Managing Director, Nicholas Mumford, said the proposed sawmill development would be a welcome nearby Murraylands regional partner in Greenhill Energy’s circular economy supply chain, importantly with the potential to supply certified renewable and sustainable biomass feedstock at scale. “We’re looking forward to working with KSI Sawmills. As we progress the development of Riverbend Energy Hub™, we’re securing sustainable biomass sources to meet our targets to manufacture clean hydrogen, urea fertiliser and other high value products such as synthetic fuels,” said Nicholas. “The timber residues from a sustainable timber plantation will be another ideal and consistent source of sustainable biomass for our manufacturing plant, and will provide security as we grow production in line with our staged development program. KSI Sawmills joins our portfolio of key supply partners including Solo Resource Recovery and Peats Soil and Garden Supplies, which together broadly meet our initial feedstock design capacity requirements." KSI Sawmills’ Managing Director, Victor Kyriakou, said Greenhill Energy was also the perfect fit for their business. “We’re really excited to work with another sustainably driven business in the rapidly developing Murraylands region, and Greenhill Energy’s Riverbend Energy Hub™ shares the same commitment to the environment as we do,” said Victor. “We source one hundred percent sustainable plantation timber for our operations and the potential to have off cuts and timber residue be upcycled to assist in the production of green hydrogen is a pleasing result for our business.” Both Greenhill Energy and KSI Sawmills are working closely with Regional Development Australia to progress their projects and ensure local communities also benefit from these large-scale business investments. Regional Development Australia Murraylands & Riverland Chief Executive Ben Fee said companies working together in the region creates more opportunities and connects our region to a resilient and sustainable future. “The partnership between Greenhill Energy and KSI Sawmills is exactly the type of lateral benefits we want to encourage in the Murraylands and Riverland.” “We’re attracting some great new companies to this vibrant region and this new partnership offers great circular economy opportunities with significant social and environmental benefits. Greenhill Energy and KSI Sawmills will progress under the MOU towards more detailed feedstock supply and other arrangements as they continue to move through regulatory approval processes for their respective projects. More >> Source: Greenhill Energy Image credit: KSI Sawmills More 'debris traps' planned for Tairāwhiti forestry
Another major forestry company is planning to construct debris
traps in its Tairāwhiti/Gisborne forest areas.These debris traps are installed in riverbeds to capture woody material flowing downstream while allowing water to pass through or over them. Similar to slash nets, these traps aim to prevent, or reduce damage, like that caused by Cyclone Gabrielle. This weather event resulted in large amounts of forestry debris washing out of Tairāwhiti forest blocks, damaging bridges, roads, farmland, and the city's water supply, as well as causing widespread flooding. Last month, Aratu Forests announced plans to install the first slash nets in Tairāwhiti. These Swiss-designed, high-strength steel cable nets will be placed on private properties adjacent to its plantations in the Te Marunga, Waimanu, and Wakaroa forests over the next few years, with resource consent applications expected to be submitted this month. Now, Ernslaw One Ltd has announced its own plans for debris traps. Ernslaw One, which manages over 95,000 hectares of forest across New Zealand, has held resource consents to build debris traps in its West Ho Forest since 2020 and its Uawa Forest since 2019, though neither has been constructed yet. More >> Source: Stuff Image: Darren Mann, Ernslaw One Launch of the new FWPA Data Dashboard
Forest & Wood Products Australia (FWPA) is pleased to
announce the public launch of the new FWPA Data Dashboard, now
accessible for anyone interested via a subscription model. This enhanced
platform provides valuable insights and data specifically tailored for
the forestry and wood products sector, empowering businesses to make
informed decisions based on trusted, impartial information."We are excited to make our upgraded FWPA Data Dashboard available to a broader audience. This platform not only enhances FWPA’s member experience but also empowers all users in the forestry and wood products sector with critical data and insights." said Erick Hansnata, Statistics and Economics Program Manager at FWPA. “Our commitment to providing reliable, impartial information supports effective decision-making, helping businesses navigate an ever-changing market landscape.” For the past decade, FWPA has collated and made available a wide range of data on the forestry and wood products sector. The public domain and industry data included in the FWPA Data Dashboard is designed to enable users to respond effectively to market trends, and has applications for a variety of business functions including leadership, business development, occupational health and safety, and human resources. The upgraded Data Dashboard is available as a complimentary benefit to full levy-paying FWPA members. FWPA Associate members and the wider public can now access this comprehensive resource for an annual subscription fee of just $950 (including GST). Key features of the new FWPA Data Dashboard:
Learn more and purchase access to the FWPA Data Dashboard. Through innovation, research, reliable data and insights, FWPA strives to enhance the competitiveness and sustainability of the Australian forest and wood products industry. Source & image credit: FWPA  FEA Update: China softwood log inventoriesChina’s Softwood Log Inventories at Ocean Ports – FEA industry sources in China, report that softwood log inventories at the country’s main ocean ports totalled 2.72 million m³ on 2 November 2024, a decline of 4% (-112,000 m³) from late September. Key details:
 Additionally, the price of logs suitable for finger-jointed/edge-glued panel production adjusted downward, with a cumulative decline of RMB 40-50/m3 during the month; this contributed to price reductions on other grades of logs. Moreover, end-users remain highly sensitive to price changes. In addition, the dispersion of stocks, along with the destocking by some inventory holders, have acted to hinder a steady rise in prices. In terms of overall sales, the average daily sales volume decreased from 75,000 in the first week to just 63,000 in the fourth week, resulting in an average of 70,900 m³ for the month. This compared to 63,125 m³ in October 2023 and 66,000 m³ in October 2022.  For more information on FEA’s China Bulletin where this data is reported monthly, please visit https://getfea.com/publication/china-bulletin, or contact Matt Robertson at mrobertson@getfea.com. Source & charts: Forest Economic Advisors (FEA) Forest360 NZ market update - November 2024
Opinion Piece: Marcus Musson, Forest360 Director
Interesting times. Trump’s in, and resoundingly with the senate, electoral college and populist votes. It looks like Elon is going to take the knife to as many government jobs as he can, tariffs will skyrocket, and democrats are top of the list in googling ‘how to move to New Zealand’. Those that understand the US economy and politics and, don’t pay much attention to media, will understand that there needed to be some major structural economic and social change if the US is to remain as a viable superpower, and this may be what is needed – only time will tell. What does this mean for our forest industry? China is our largest purchaser of logs, and it has been pretty well documented that the main sector our logs have previously been used in – construction – is about as popular as Rieko Ioane at the Sexton dinner table. Exports of logs to China in 2023 totalled 18 million cubic metres, and 2024 is looking to be slightly under that. Luckily, China has a massive wood-based furniture industry accounting for around 39% of total global furniture production, making it the largest in the world. In addition, exports of wood furniture from China have risen 24% in the first 7 months of 2024 – great news, then along came the Don. The US accounts for around 27% of the furniture exports out of China, which totalled $20 billion in 2023. The current tariff for Chinese furniture into the US is 5.4%. A report commissioned by the US National Retail Federation explored the impacts of proposed tariff increases on demand in the US. Trump hasn’t set any definitive tariff as yet, but the expected range for furniture is between 32.8% and 54.3% which the report predicted to result in a reduction in demand for Chinese manufactured product of between 73% and 87% respectively. If we assume the mid-point of 80% is likely, this will result in a total demand reduction of around 350 million pieces of furniture, a $16 billion drop in revenue and an overall 20% drop in total Chinese furniture exports, which is all a bit untidy. NZ radiata is a favoured product for the Chinese furniture industry due to its versatility and availability and as such, a reasonable volume of our log exports is utilised in this sector, therefore any reduction in demand for Chinese furniture products is going to directly impact us. What does the quantum of this impact look like? We won’t know until the tariffs have been set, but it’s very likely we will feel the impact in the medium term in the way of reduced supply volumes from NZ. More >> Source & image credit: Forest360  FWPA releases Exterior Timber Wall Cladding Standard for comment
To support the use of timber in construction, Forest & Wood Products Australia (FWPA) is introducing a new industry standard aimed at streamlining compliance for exterior timber wall cladding. The current complex regulatory landscape often leads to increased time and costs for projects, making timber a less attractive option for builders and designers.The proposed FWPA Standard introduces a non-mandatory Deemed-to-Satisfy (DTS) solution specifically for exterior timber wall cladding systems. This innovative Standard provides a clear compliance pathway for meeting the condensation and weatherproofing provisions of the National Construction Code (NCC). “By simplifying compliance requirements, we’re not only reducing costs and project delays but also empowering builders and designers to choose timber as a preferred material.” said Boris Iskra, National Codes and Standards Manager at FWPA. For commercial projects under NCC Volume One, this standard provides the first-ever compliant DTS solution, significantly reducing reliance on costly customised Performance Solutions where external timber cladding is permitted to be used. For residential projects under Volume Two, it accommodates modern cladding systems and updated installation methods, further streamlining the compliance process. This new standard aims to minimise project delays, reduce construction costs, and promote the broader adoption of timber as a sustainable material, enhancing its appeal and opening new market opportunities. FWPA is committed to industry-wide engagement in developing this standard. Consultations are being held with timber cladding manufacturers, suppliers, distributors, and building associations. To achieve NCC recognition, the standard is being developed in alignment with the Australian Building Codes Board’s Protocol for the Development of National Construction Code Referenced Documents. An open public comment period from November 13, 2024, to February 7, 2025, invites industry members to provide feedback and help shape the standard. Key Benefits of the New FWPA Standard If referenced in the NCC, the new Standard will deliver several benefits to industry stakeholders:
Through innovation, research, reliable data and insights, FWPA strives to enhance the competitiveness and sustainability of the Australian forest and wood products industry. Source & image credit: FWPA SnapSTAT - Forest to spareForest to spare: Despite making up less than one percent of the planet’s forested land, Sweden is the world’s second-biggest exporter of pulp, paper and sawn wood products. Sweden’s total land area covers 40.8 million hectares, on which Swedish forest comprises manage 22.5 million hectares of productive forest land.
More: Here. Are new UN climate credit rules rushed?
At the UN Climate Change Conference (COP29) in Azerbaijan, new
rules for the trade of carbon credits were swiftly agreed upon,
allowing wealthier nations to invest in cheaper climate action projects
abroad instead of cutting emissions domestically. This agreement ends
years of deadlock on carbon credit trading, marking it as an early win
for the conference hosts. However, critics argue that the decision was
rushed, lacking proper transparency and discussion.The new rules aim to establish quality standards for carbon credits, enabling a UN-backed global carbon market to finance projects that reduce greenhouse gas emissions. This falls under Article 6 of the Paris Agreement, which has faced challenges in past negotiations. While the agreement could accelerate carbon financing for developing countries, critics express concerns over the potential for misuse and lack of safeguards, which could undermine the integrity of the Paris Agreement. Additionally, COP29 is overshadowed by the absence of key world leaders, such as US President Joe Biden and French Prime Minister Emmanuel Macron. There is also uncertainty following Donald Trump’s victory in the US presidential election, which raises fears of a potential US withdrawal from climate commitments. More >> Source: Stuff --(2022)2.jpg) Australian hardwood timber prices double
On a former dairy farm in Western Australia's south, a small
fortune is growing in plain sight. "That's about $2,000 worth of
wood," Geoff North said as he placed a hand on the blackened
bark of a towering eucalyptus tree.Mr North is reaping the rewards of decades of patience at his Walpole plantation, 400 kilometres south of Perth, with prices for his timber doubling in the past 12 months following the state government's ban on logging in native forests. Unlike blue gum plantations that grow trees destined for the pulp mill, Mr North grows hardwood trees including blackbutt, spotted gum and Sydney blue gum that are sold to sawmills. The timbers are prized for their durability and aesthetic appeal making them useful as both a building material and a finishing wood for architectural cladding and floorboards. More >> Source: ABC News Image credit: Farmed Wood USA set to end Canada’s lumber dominance
The southern U.S. is on track to overtake Canada as the leading North
American region for softwood lumber production, marking a shift driven
by long-standing trade challenges and environmental factors. For the
first time since at least 1970, the U.S. is expected to surpass
Canada’s capacity for producing softwood lumber, according to
Fastmarkets. This change reflects the impact of U.S. tariffs and
additional pressures on Canadian forestry, including wildfires,
regulatory limits on land use, and pest infestations.The U.S. recently raised duties on Canadian softwood lumber by nearly 81% in August, intensifying a decades-long trade dispute. Currently, these tariffs stand at 14.54%, but analysts warn that rates could climb even higher next year, pending the Commerce Department’s review. This dynamic underscores a dramatic reshaping of the North American lumber landscape. More >> Source: Yahoo Finance World’s first wooden satellite built in Japan launched to space
The world's first wooden satellite, called LignoSat, has arrived
at the International Space Station (ISS) aboard a SpaceX Dragon
cargo capsule. This tiny Japanese satellite, measuring just 4 inches (10
cm) on each side, could pave the way for more sustainable space
technology.Traditional satellites are made of aluminum, which, when burned up in Earth's atmosphere, produces harmful aluminum oxides that can affect the planet's thermal balance and deplete the ozone layer. This environmental concern is growing as the number of satellites in orbit increases, especially with the rise of mega-constellations like SpaceX's Starlink network. LignoSat, developed by Kyoto University and Sumitomo Forestry, uses magnolia wood instead of aluminum, offering a greener alternative that reduces atmospheric pollution upon re-entry. If successful, wooden satellites could potentially replace metal ones in the future, according to retired Japanese astronaut and aerospace engineer Takao Doi. The wooden cubesat will soon be deployed from the ISS' Kibo module to test its durability in space. Over the next six months, it will send back data on temperature, strain, and its reaction to space conditions like atomic oxygen and radiation. Researchers, including student scientists, will analyse this data to see how well the wooden structure withstands the harsh space environment. More >> Source: Space.com Image credit: Kyoto University  Jobs
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