Friday Offcuts – 13 December 2024
Click to Subscribe - It's FREE! Welcome to this week's edition of Friday Offcuts.This week, we begin with New Zealand’s government announcement of a public-private partnership initiative to plant trees on underutilised Crown land, aiming to achieve climate targets and create jobs. Fonterra’s investment in wood pellet boilers marks significant progress toward reducing carbon emissions, while Eastland Port's twin berth consents pave the way for transformative regional infrastructure upgrades. Across the Tasman, Australia’s forestry industry is highlighted as vital to economic and environmental goals, as discussed at the recent Federal Government Forest Industry Roundtable. Coordinated policy efforts are seen as key to unlocking the sector's potential. Meanwhile, Timber Queensland’s Canopy Hub is addressing labor shortages through its upcoming training programs, and Tasmania’s ActivAcre initiative celebrates planting one million trees, showcasing the benefits of farmer collaboration. Industry insights this week include projections of New Zealand's forestry exports growing 4% to $6 billion, aided by demand from China. However, Forest360 notes weak construction demand and lower A-grade log prices. In Australia, the Timber Market Survey reports falling prices for timber and engineered wood products, reflecting broader market conditions. And finally, next Friday (20 Dec 2024) will be the last issue of Friday Offcuts for 2024. If you have any last-minute jobs or tenders you want promoted, best to get in quickly. Next Friday is also the last day for the WoodTECH 2025 super early bird savings. Exhibition space in Rotorua is now 'SOLD OUT', while Melbourne's event has only a couple of spaces left! Read these and more in another packed edition of Friday Offcuts. See you next week. Enjoy.
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This week we have for you:
New Govt initiative to plant trees on low value Crown land
Ministers responsible for Climate Change, Forestry, Conservation
and Land Information has announced that Cabinet has agreed to explore
public-private partnerships to plant trees on Crown land, supporting New
Zealand’s climate change targets and creating more jobs.
Climate Change Minister Simon Watts says that nature-based solutions is a key part to the Government’s climate strategy, and represents a significant step forward in achieving our climate targets including Net Zero by 2050. "New Zealand is well positioned to leverage its natural assets to drive progress in both climate action and economic growth. Partnerships to plant native and exotic trees on Crown-owned land represents a cost-effective approach to reducing net emissions while also delivering tangible benefits to local communities.” Forestry Minister Todd McClay says forestry is critical to New Zealand’s economic future. “These partnerships would drive economic growth by creating more forestry jobs in our regions, provide more wood for domestic processing, and over time boost the value of exports. This policy strikes the right balance between planting more production and native forests, and making better use of Crown assets without impacting productive farmland or compromising high value conservation land.” Conservation Minister Tama Potaka says potential partnerships could help improve biodiversity and water quality. “While native forests store carbon and support a low emissions future for our whenua, they’re also important for biodiversity and can strengthen environmental resilience to floods, droughts, and storms. “We will ensure commitments are upheld where land is subject to Treaty of Waitangi settlement obligations or being held for potential future Treaty settlement redress. We are also keen to explore potential Iwi collaboration through public-private partnerships.” Land Information Minister Chris Penk says the Government is focused on getting good value from Crown land. “The Crown holds significant land across New Zealand, and we have a responsibility to use it productively. Whether it’s contributing to climate goals, generating returns, or improving environmental and conservation efforts, our focus is on delivering value to the public. We are excluding National Parks, high value farming land and high value conservation land and only focusing on land which is not otherwise in use. Making full use of your assets is good commonsense.” The Government will soon release a request for information (RFI) that will help clarify the conditions under which potential partners could work with the Crown. This will help the Government understand what land may be suitable to offer for partnership. The RFI will be publicly released on 18 December on the Ministry for Primary Industry’s website (mpi.govt.nz) alongside information on how people can participate in the process. Source: NZ Government Industry Roundtable: Australia’s forest industries are the solution
Australia’s forest industries are the solution! Message from this week’s Federal Government Forest Industry Roundtable.The Strategic Forest and Renewable Materials Partnership’s Forest Industry Roundtable in Hobart has highlighted the need for a coordinated Federal Government approach to support the forestry and forest products supply chain so it can deliver the best possible economic, climate and social outcomes for Australia and the world, Chief Executive Officer of the Australian Forest Products Association (AFPA), Diana Hallam said. “Growing production trees is the foundation that supports our entire processing and manufacturing supply chain and today’s Roundtable positively reinforced the need for public policy coordination across government departments and agencies, so our sector can reach its full potential – whether it’s for construction and furnishing timber, biomass, pulp and paper or any of our other great products. Bottom line – we need policy geared in the one direction to help our sector thrive – and when we thrive, the country thrives,” Diana Hallam said. “I particularly thank Minister for Agriculture, Fisheries and Forestry, The Hon. Julie Collins MP for her enthusiastic participation in the Roundtable and for allowing a free canvassing of ideas and strategies for how forestry and forest products can provide solutions on a number of fronts. “A key role of the Strategic Forest and Renewable Materials Partnership is to inform the development of a new Timber Fibre Strategy and the Roundtable provided the opportunity for participants to discuss challenges and have their say on policy solutions for the Strategy. “As a sector we employ 180,000 Australians directly and indirectly, many in rural and regional communities that rely solely on the sector, all while providing a range of job opportunities. We contribute $24 billion to the national economy annually, we create essential products we need everyday, all while helping Australia reduce emissions and fight climate change, helping the Government work towards its net-zero goals. “Finally, it was great to see so many AFPA members involved in the Roundtable just months away from the next Federal Election – that will be very important in setting a future agenda for the sector,” Diana Hallam concluded. More >> Source: AFPA NZ forestry exports are expected to increase 4% this year
New Zealand’s food and fibre exports are forecast to hit
$56.9 billion by 30 June 2025 and climb to a record $58.3 billion the
following year, showcasing the strength and resilience of the
sector, Agriculture and Forestry Minister Todd McClay announced this
week.“The hard work and innovation of our world leading farmers, growers, fishers, foresters and processors are driving these exceptional results,” Mr McClay says. “Strong global demand and healthy prices in key markets are positioning our food and fibre exports for record growth.” Forestry export revenue is expected to rebound 4 per cent to $6.0 billion this year, recovering from domestic supply-side disruptions and slow global demand. Renewed engagement and increased building activity in China is also set to drive higher demand for logs and processed wood products. “The primary sector is the backbone of our economy and will continue to play a key role in achieving our ambitious target of doubling exports by value in 10 years. “To drive this growth the Government has moved swiftly to remove regulations hampering the sector’s success. Already we’ve rolled out a comprehensive package of changes to reduce costs for farmers, drive productivity, slash red tape, streamline approvals, and secure trade deals that increase market access and boost returns,” Mr McClay says. “Now more than ever global consumers are demanding high-quality, safe, and sustainable food and fibre products and New Zealand producers are well placed to provide this.” The export forecasts were released in the latest Situation and Outlook for Primary Industries (SOPI) report. Source & image credit: NZ Government  Canopy Hub launches next round of cutting-edge training
A recent trip to the Wide Bay-Burnett region saw the team from Canopy,
Queensland’s forest and timber industry training and careers hub,
lay groundwork for delivering the next generation of forest and timber
workers though the Cutting Edge Program, a workforce
initiative designed to address skilled labour shortages.A two-week pre-employment training and work placement program, Cutting Edge equips jobseekers with meaningful skills while giving employers the chance to assess potential hires through work experience placements. This program bridges the gap between jobseekers and employers, fostering lasting workforce connections while addressing a critical need within the industry. During the road trip, which included hosting promotion events in Gympie and Maryborough, the team engaged key stakeholders to attract a strong talent pool for the next intake of the program, with Canopy Hub Project Lead Steve Worley noting the particularly strong engagement from local employment agencies recognising the value of the program’s capacity for creating job-ready skills. “Every industry is facing a competitive employment market at the moment, so the trip created a valuable opportunity for raising the profile of roles in the forest and timber sector. It also facilitated crucial connections with organisations uniquely positioned to identify and channel new talent into our industry,” said Mr Worley. “This collaborative approach is setting a benchmark for addressing workforce challenges in a highly competitive labour market.” The trip builds on the program’s proven past successes, which has seen a number of program graduates secure long-term employment within the industry. Andrew Davies from DTM Timber, a host of past cohorts, has found the initiative a valuable opportunity for employers and program participants alike. “It’s ‘try before you buy’, you get to have a good look at your potential employees, and insight from the program trainer into what they’ll be like as an employee, and where their skills and natural abilities will be best suited within your business,” said Mr Davies. “It’s been a worthwhile enterprise - we’ve gotten good people out of it and it’s in our best interests to keep the whole industry strong.” The next round of Cutting Edge will be delivered in early 2025, with local employers in the Gympie and Maryborough regions invited to reach out for more information on participating in this and future rounds. The Canopy Hub initiative is delivered by Timber Queensland with the support of the Workforce Connect Fund, powered by the Queensland Government's Good people. Good jobs: Queensland Workforce Strategy 2022-2032. More >> Source & image credit: Timber Queensland Fonterra's NZ$64 million investment into wood pellet boilers
Fonterra is set to convert two coal boilers to wood pellets at
its Clandeboye site in South Canterbury, a crucial step in Fonterra's
commitment to exit coal by 2037. The NZ$64 million investment will cut the Co-operative’s overall emissions by nine per cent with reductions totalling 155,000 tonnes of CO2e each year, the equivalent of removing more than 64,000 cars from New Zealand roads each year. Fonterra Chief Operating Officer Anna Palairet says the project marks a significant milestone in Fonterra’s sustainability journey as it works towards a 50.4% reduction in absolute Scope 1&2 emissions by 2030, from a 2018 baseline. "This conversion project at Clandeboye is another demonstration of our Co-op’s commitment to sustainability and climate action and follows successful boiler conversions at our Te Awamutu, and Hautapu sites. "In making our largest decarbonisation investment to date, we're reducing our environmental impact – while securing operational resilience. This project represents a significant milestone in our journey towards a coal-free future." Fonterra’s Site Operations Manager – Cheese and Protein, Conrad Harle echoes this sentiment believing the investment will drive fuel diversity in the South Island by providing the demand signals to establish wood pellet supply chains in the region. "The move to wood pellets for the Clandeboye site is a great thing for the South Island as it will play a role in diversifying the country’s renewable energy options while strengthening fuel optionality at the site. The team at Clandeboye are both proud and excited to play a role in the establishment of these regional supply chains that give added resilience and further options for future decarbonisation investments at our other sites, primarily Darfield, Studholme, Tākaka, and Edendale." The conversion is co-funded as part of a previously announced EECA (Energy Efficiency and Conservation Authority) partnership. The partnership agreement includes the Co-op achieving approximately 1.2 million tonnes of CO2 cumulative reductions from its coal reduction activities this decade, enabling the Co-op to lift its 2030 target from a 30% to a 50% absolute reduction by 2030. EECA Chief Executive, Dr Marcos Pelenur, says it is encouraging to see Fonterra continue to progress their emissions reduction programme. "It is a milestone that once again highlights the central role of biofuel in the clean energy space and the use of clever technology in increasing energy efficiency." The conversion of the two boilers is scheduled to be completed and operational by September 2025. Plans to transition the site’s remaining boilers onto renewable energy will continue as part of the Co-operative's wider decarbonisation plans. More >> Source: Fonterra  Forest growers give green light to levy renewal
Forest owners have sent a clear message that the sector’s
levy provides important support to forest growers by voting to renew it
for a further six years. The Harvested Wood Material (HWM)
Commodity Levy was introduced in 2013 under the Commodity Levies Act
1990 as a way of collectively advancing the interests of all forest
growers in New Zealand.The Levy Vote, which ran from 1 to 31 October 2024, saw nearly 90% of voters supporting renewal of the levy at the proposed rate of 33 cents to 45 cents for the next levy order period. The ‘yes’ votes represented 99.63% of the total hectares of voters. The vote was conducted by independent election agency Research New Zealand in accordance with the Act. Post-voting audits indicated that some votes cast did not meet the voting or eligibility criteria. All votes that did not comply with these criteria were removed. This included some members of syndicates that cast multiple votes for the same forest, votes that were cast for non-qualifying forests and votes cast by individuals that were not the legal owner of the forest. The audited result returned 191 eligible votes and a total forest area of 610,357 hectares. Of these votes, 171 were a ‘yes’ to renewing the levy and 20 were votes against renewal. Votes in support of renewing the levy represented 608,070 hectares. Research New Zealand reported the “yes” vote was conclusive, even if the 109 ineligible votes were counted. On that basis, the 300 total votes returned pre-audit would have still returned a 70% support rate for the levy. Forest Growers Levy Trust chair, Stephen Franks, says the positive result highlights the importance of the levy to forest growers. “Forestry has faced difficult times of late and we know growers across the country are looking very closely at their costs,” Stephen says. “The fact that growers are still committed to the levy during an economic downturn shows a welcome recognition of the value of shared industry-good activity and representation. “Forest owners big and small can achieve more together than on their own.” The levy has generated approximately $10 million per annum in recent years. It will continue to fund sector representation, research and development, biosecurity, environmental advocacy and more. Ten years of the levy has helped forest owners achieve stronger biosecurity protection for New Zealand’s production forests. It has improved health and safety and helped to transform harvest operations with mechanisation. “The forest research and development programme in particular has enabled access to co-funding for growers, raising $2.50 for every levy dollar invested,” Stephen says. “The successful levy vote is a credit to the vision of those who established the levy and the continuing ability of forest growers to agree on core requirements to advance forest growing in New Zealand.” Stephen says the focus of the levy has evolved over time in response to growers’ needs. “There is now a substantial focus on cost savings and building resilience. Not only to natural challenges but to local political responses as New Zealand faces international climate change policies and market disruptions.” More >> Source & image credit: NZ Forest Owners Association  Forest360 NZ market update - December 2024
Opinion Piece: Marcus Musson, Forest360 Director
There won’t be too many people unhappy that we’re about to rule a line under this year, especially those in commodity trades that have ‘survived to ‘25’. Billy Joel could rewrite ‘We didn’t start the fire’, base it solely on 2024 and still not run out of topics. Having said that, 2025 looks like it’s ready to get going with a fist full of ammo as well. Those of us that had hoped for an early Christmas present in the form of strengthening export prices were disappointed with slight reductions of around $2/m3 into December giving A grade prices of around $125/m3 in Southern North Island ports. There’s no real surprises there though as underlying demand remains subdued with both the construction sector issues in China and the potential Trump tariffs weighing heavily on buyers’ minds. Chinese log inventory has dropped slightly and currently sits around 2.67 million m3 with uplift in the early 60,000m3/day range. Some exporters pushed November CFR prices to $US127-128/m3 in the hope that there was some sustained demand and supply imbalance, however this has been met with folded arms and a frown by the buyers who are now less interested in setting a price. This has resulted in a number of vessels sailing without a letter of credit (LC), which is never a good bargaining position and conforms perfectly to supply and demand economics 101. On the bright side, currency markets have started pricing in the Trump effect with the NZ:US firmly in the $0.58 zone and shipping rates have eased into the very low $US30’s. Both of these movements have mostly offset the drop in CFR, for now. Chinese New Year holidays begin in late January, and we will probably see a longer than usual break by Chinese sawmillers which may deal us a difficult hand pricewise in February and March. Beijing continues to try and pull all sorts of levers to stabilize their economy with the latest being a change in their monetary policy from ‘prudent’ to ‘moderately loose’. This is the first reduction in 14 years and although many would argue that their economy has been in ‘more than moderately loose’ mode for the past decade, this does signal the desire to boost domestic spending amidst an economy wracked with deflationary pressures. This is also likely a realisation that exports will be weak once ‘the Don’ pulls on his tariff robes and gets down to the business of repatriating manufacturing back into the US. With reducing export revenue, Beijing only really has domestic consumption to buoy the economy. A ‘moderately loose’ monetary policy probably won’t do much to increase demand in the construction sector, which seems to be impervious to stimulus at this point. Beijing has thrown the doctor at the property sector recently and the market still remains in a very precarious position. Goldman Sachs estimate that there is potential, without further stimulus, for Chinese property values to drop a further 20-25% before stabilizing in late 2025. Some measures to boost the market are being implemented at regional level with both Beijing and Shanghai announcing tax breaks in an effort to encourage house purchases. This has fallen largely flat with property stocks hardly noticing a change. More >> Source & image credit: Forest360 FWPA announces Jan 2025 call for research proposals
Forest & Wood Products Australia (FWPA) will open a Call for
Proposals for its Forestry Research Program on Monday, 6 January 2025.
This program supports research, development, and extension (RD&E)
activities that deliver measurable benefits to Australia’s
commercial forest growers.Research Priorities FWPA is seeking innovative proposals aligned with its 2023-2028 Strategic Plan, focusing on key RD&E priorities that reduce risk, loss and cost, and increase productivity. Specific industry priorities are identified in our grower RD&E investment plans:
Application Process The FWPA Forestry Research program uses a two-stage process:
Key Dates for Applicants
FWPA strongly encourages applicants to engage early with industry partners to ensure meaningful collaboration and alignment with industry needs. For more information visit the Forestry Research Program webpage or contact our R&D team via this link . Source & image credit: FWPA New Timber Market Survey (TMS) report
The latest edition of the Timber Market Survey (TMS) report has been
released for the September quarter 2024.Softwood timber products – Quarterly price movements Prices for untreated MGP structural timber products decreased, with price movements ranging between -0.5% and -1.5% lower. Prices for treated decking decreased by -4.0% and treated sleeper prices decreased by -0.6%. Prices for plywood products decreased by as much as -1.9%, while price movements for particleboard and MDF products remained relatively stable. Prices for LVL and I-joist/I-beam products continued to decline, with price movements ranging between -0.9% and -4.2% lower over the quarter. The TMS collects price data through quarterly surveys of a representative sample of timber market participants in eastern Australia. All quarterly TMS reports contain price movement information for softwood timber, panels and engineered wood products. The June and December quarter editions also include price movement information for hardwood timber products surveyed over a six-month period. The TMS is prepared by Indufor and funded by eight major Australian forestry organisations: Forestry Corporation of NSW; Green Triangle Forest Products; Hancock Victorian Plantations; HQPlantations; OneFortyOne Plantations; the Queensland Government Department of Agriculture and Fisheries; Southern Cross Forests; and Sustainable Timber Tasmania. Further information and the latest Timber Market Survey report is available here: Download the September quarter 2024 TMS report. Source: Indufor SnapSTAT - Imports of softwood logs into China by major sourceA picture is worth a thousand words, but this one is quite simple. Since 2005 today’s graph shows clearly how New Zealand log exports to China replaced Russian softwood logs and supply from several new country suppliers took annual volumes from 20 Mm3 to over 50 Mm3 by 2021.
More >> Landmark moment for Eastland Port twin berth consents
Eastland Port has achieved a monumental milestone in its decade-long Twin Berth Development journey, with the Environment Court issuing
the consent order for the projects Stage Two consents last
week. This development secures the necessary approvals for
one of the most significant infrastructure projects in Tairāwhiti's
history, setting the stage for a resilient, future-focused port.The consent covers 26 resource consents, including extending Wharf 8, reclaiming land, dredging operations, and modernising critical infrastructure such as the stormwater system and outer breakwater. The result: a port capable of simultaneously berthing two 185-200 metre vessels, diversifying trade and reinforcing the region's economic foundation. Eastland Port General Manager Infrastructure and Commercial, Marty Bayley, commended the extensive collaboration with the community that made this outcome possible. “This has been a decade in the making, involving robust consultation, independent advice, and tireless efforts from technical experts, iwi, hapū, and the community,” said Mr Bayley. “Reaching this milestone is a testament to the patience and goodwill of everyone who worked with us to collectively address challenges and find the best solutions possible. The outcome reflects the strong relationships we’ve built and our commitment to being a responsible operator of our harbour.” The Environment Court appeal process concluded with mediated outcomes with Rongowhakaata Iwi Trust and Bree Skinner, culminating in agreements that balance the region's priorities alongside their respective concerns “Not only have we secured consents with conditions that provide the port certainty for the next 35 years, we have also strengthened our relationships and standing throughout the community,” Mr Bayley said. “Being authentic and addressing all concerns through the process built a solid application, trust, and helped us achieve solutions that work for everyone.” Eastland Port Chairwoman Wendie Harvey said, "This achievement is a testament to the shared vision and dedication of everyone involved. “The Twin Berth project is not just about enhancing port infrastructure—it’s about ensuring Tairāwhiti remains resilient, competitive, and well-positioned for the future. “I am incredibly proud of the collective effort that has brought us to this pivotal moment, and I believe these developments will leave a lasting, positive legacy for future generations,” said Mrs Harvey. A testament to the vision The independent commissioners overseeing the application highlighted Eastland Port's collaborative approach as a standout success. “Dr. Brent Cowie, a retiring commissioner, called our application the best he had seen in his career and commended the co-operative approach to addressing issues,” said Mr Bayley. “That’s a validation of the extraordinary effort and collaboration behind this project.” Eastland Port Chief Executive Officer, Andrew Gaddum, emphasised the significance of this achievement on both regional and national levels. “This project is not only regionally significant but nationally remarkable. There are few recent examples of infrastructure projects of this scale receiving consent without the need to go right through the Environment Court process. “I am immensely proud of what we’ve accomplished. The final consent conditions and relationships we’ve built reflect the dedication of our entire community.” More >> Source & image credit: Eastland Port  One million trees planted & more farmers are needed
A Tasmanian carbon forestry initiative has marked a major
milestone, with more than one million trees planted on almost 1,000
hectares of land across the state, estimated to sequester more
than 300,000 tonnes of CO2 from the atmosphere.The ActivAcre program, delivered by Tasmanian plantation and natural asset management company SFM, collaborates with farmers to identify opportunities for them to lease land for tree planting. SFM Managing Director Andrew Morgan said the local initiative allowed farmers to optimise their land and diversify their on-farm revenue, providing them with a reliable source of income. “But of course the benefits of ActivAcre flow well beyond the farmer – plantation forestry is recognised globally as a key tool to mitigate climate change, capturing carbon in soil and vegetation,” Mr Morgan said. “Further to this, Australia currently has a $4 billion trade deficit in wood products, yet we have a skilled workforce with world-class infrastructure and high-quality governance, so we have a real opportunity to turn the situation around.” Mr Morgan said across Australia, sourcing larger parcels of suitable land was becoming harder, making aggregation essential, where multiple smaller land holdings are classed together to make one asset. “With the successful completion of our first full year of planting and our 2025 program nearing capacity, we are now seeking expressions of interest from landowners for our 2026 planting” he said. “Today we held an open ‘field’ day on the Bloomfield property in Gretna for interested landowners and farmers to learn more, ask questions and see a plantation carbon project first-hand.” Bloomfield owners Susie and Michael Parsons signed up to the ActivAcre program earlier this year. Susie Parsons said the seven-generation farming family was already benefiting from the financial return of leasing their land and could see the future opportunities it presented, both for their own property and for the environment. “The additional value proposition of planting trees is the creation of shade and shelter belts, which can increase pasture production as well as improving water efficiency, soil quality and reducing salinity, waterlogging and erosion,” Mrs Parsons said. Mr Morgan said the future-focused land management program worked closely with farmers to create unique and flexible agreements to maximises their land's potential and ensure an ongoing, reliable income every year from planting to harvesting. “ActivAcre is unique in that every aspect of the project, from initial enquiry to carbon project registration to final plantation harvesting, is managed by SFM’s local team of highly experienced foresters, land management professionals and carbon project experts, all of whom have a deep understanding of the Tasmanian agricultural landscape,” he said. Tasmanian farmers and landowners can find out more at: activacre.com.au. Source & image credit: SFM Transport leaders forum debuts in the South Island
AutoSense is excited to announce the return of the NZI-sponsoredTransport Leaders Forum, giving South Island-based transport decision-makers their first chance to attend the event at the Christchurch Town Hall on Friday 21 February next year.The sell-out breakfast event debuted in Auckland in 2024 with a line-up of inspirational speakers. Life coach and BBM Founder Dave Letele, motorsport legend Greg Murphy, and Coda Group CE Deena Clarkson will return to the Christchurch podium to address the important issues facing people in the transport industry. AutoSense CEO Charles Dawson encourages transport operators to book tables for their team, saying, “This is the perfect opportunity to kick-start the year with actionable ideas to create safer, healthier workplaces”. “We can’t talk about health and well-being without a gentle morning workout from Dave Letele, named a New Zealander of the Year Local Hero, whose business aims to motivate people to get fit and transform their lives. We encourage transport operators to book a table for their decision-makers and support them in setting initiatives for health, safety and wellbeing.” More >> Source: AutoSense Jobs
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... and one to end the week on...my work here is done
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