Friday Offcuts – 30 January 2026
Click to Subscribe - It's FREE! Welcome to this week’s issue of Friday Offcuts.The past fortnight has been a whirlwind, as this summer continues to reinforce the challenges our sector faces from climate extremes. If you are planning to attend Environmental Forestry 2026 in Rotorua, please note that early bird registrations close today. In news this week, we lead with a critical report affirming that well-managed forests are essential for meeting Australia’s emissions targets. While the New Zealand industry has welcomed a proposal to slash annual ETS charges, the sector remains caught between celebrating these cost-savings and navigating long-term policy uncertainty. Regarding market trends, Australian softwood log exports have surged 43.5%, while the NZ domestic scene is "leading the charge" with optimistic sawmillers. Finally, we explore the new mass-timber Tonsley Technical College, progress on Europe’s electric timber trucks, and the use of wearable biosensors for plant monitoring. Read these stories and more in this week’s packed issue of Friday Offcuts.
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This week we have for you:
The evidence is clear - well‑managed forests are essential
Forests, when well-managed, are critical to Australia meeting
its emissions reduction targets, according to a new evidence review
released this week by Forestry Australia.The Forest Carbon Balance Evidence Review brings together the latest science on forest carbon dynamics, demonstrating that sustainable forest management plays a vital role in carbon sequestration, emissions reduction, and climate resilience. Click HERE to view the Evidence Review The Review confirms that forests are one of Australia’s most important natural resources for capturing and storing carbon. Actively growing forests absorb carbon at higher rates, while large trees store carbon at forest sites. Yet forest carbon is not static. As forests age, carbon stocks can decline through natural mortality and disturbance events, particularly bushfires. It also highlights that accurately estimating forest carbon is complex and requires a full life-cycle analysis. This includes accounting for on-site carbon stocks, emissions from management, transport, and processing, carbon stored in wood products, and the substitution benefits gained when timber replaces more emissions-intensive materials such as steel and concrete. “Forests are dynamic systems, not permanent carbon vaults,” Dr Michelle Freeman, President of Forestry Australia, said. “How forests are managed over time significantly influences whether they are carbon positive, neutral, or negative.” Importantly, sustainable use of forest resources delivers additional climate benefits through long-term carbon storage in wood products and by enabling bioeconomies based on renewable biomass. Substituting timber for steel and concrete can reduce embodied carbon by up to 75 per cent. The Review also underscores the significant role of wildfire in driving Australia’s forest emissions. The 2019–20 bushfires alone accounted for approximately 35 per cent of Australia’s total greenhouse gas emissions in 2020. Strategic fuel-reduction burning and silvicultural practices, such as thinning, can reduce carbon losses from high-risk wildfires while improving forest resilience to drought and climate change. While protecting carbon-dense forests is important, the Review found that forest reservation alone does not necessarily deliver greater carbon mitigation outcomes than sustainable active management in many Australian forest types. Increasing risks from climate change, wildfire, and widespread tree mortality mean that unmanaged forests can become a significant source of carbon emissions. It also highlights the risk of emissions “leakage” if domestic timber production declines, and whilst an increased reliance on imported wood products may improve Australia’s reported emissions on paper, it reveals that “reductions in local timber production may cause significant leakage from Australia to other countries, potentially in the order of 70%.” Forestry Australia says the findings reinforce the need for policy settings that:
Source & image credit: Forestry Australia Environmental forestry: from case studies to applied solutions
Environmental forestry is no longer a niche discussion. Across
Australasia, forest managers are grappling with increasingly complex
challenges — from pest incursions and biodiversity protection to
wildfire risk and climate-driven extremes.One of the most encouraging developments is the growing emphasis on practical, applied solutions, shared openly through real-world case studies. In recent years, forestry professionals across New Zealand and Australia have been demonstrating how innovation, collaboration, and technology are reshaping environmental outcomes on the ground. Technology adoption has been a consistent theme. The use of remote sensing, GIS mapping, and drone surveillance is enabling more precise monitoring of forest health, pest activity, and post-harvest recovery. In one New Zealand example, drone-based surveys following harvesting led to a 30% reduction in replanting costs, while also improving seedling survival rates — a clear win for both economics and environmental performance. Equally important are the collaborative approaches emerging across the sector. Community-led reforestation projects involving industry, local government, and indigenous groups are restoring degraded landscapes while strengthening cultural connections and creating regional employment. Riparian restoration initiatives, in particular, are delivering measurable improvements in water quality and biodiversity. What ties these examples together is a clear shift in mindset: environmental forestry is increasingly about shared knowledge, applied learning, and scalable solutions. The sector is moving beyond theory and towards implementation — supported by better data, stronger partnerships, and a willingness to adapt. These themes will continue to shape industry discussions throughout 2026, as forestry professionals look for proven strategies to build resilience while meeting environmental and commercial expectation Several of these approaches will be discussed in more depth at Environmental Forestry 2026 (23-24 March 2026, Rotorua, New Zealand), where recent case studies and applied outcomes from across the region will be shared. Early bird registrations for the event close today, Friday 30 January.  Foresters welcome fairer costs for the ETS
New Zealand’s representative forestry organisations
welcome the Government’s move last week to reduce annual charges
for foresters participating in the Emissions Trading Scheme (ETS).
The Climate Forestry Association (CFA), NZ Institute of Forestry (NZIF), Ngā Pou a Tāne (NPaT) –The National Māori Forestry Association, Farm Forestry Association (NZFFA) and the Forest Owners Association (NZFOA) have worked with officials from the Ministry for Primary Industries over the last year to ensure these fees and charges were more reasonable, transparent and efficient. The consultation document proposes an annual charge of NZ$10.25 per hectare for foresters to participate in the ETS. This is a substantial reduction from the unjustified charge proposed in 2023 of $30.25 per hectare. Alongside this, many of the other fees and charges for participating in forestry in the ETS have reduced from what was originally proposed. “We’re pleased to see the government responding to concerns from forest owners by proposing a reduction in the annual ETS charge down to one-third of the original proposal. This is a positive and sensible step that will help lower compliance costs and remove some of the administrative friction in the scheme,” says NZFOA Chief Executive Dr Elizabeth Heeg. In 2023, the Climate Forestry Association, NZ Institute of Forestry, Ngā Pou a Tāne – The National Māori Forestry Association and the Forest Owners Association, along with a wide range of industry representatives and Māori forestry interests representing the owners of more than 300,000 hectares of local forest – launched a judicial review in the High Court seeking an urgent examination of the previous fees proposal, which they call excessive, unreasonable and disproportionate. “We appreciate the leadership of Minister of Forestry Todd McClay in creating this Ministerial advisory group as an alternative to continuing litigation, so that our sector could work with officials to achieve these cost savings”, says James Treadwell, President of NZIF. The organisations believe that more can be done to further optimise these fees and charges over time and have proposed to the Minister that this work continue. “Foresters are committed to working with government to create a wellfunctioning ETS that delivers climate benefits and investor confidence. We have further work to do to optimise the costs of technical platforms that the ETS runs on, and to future-proof these services so that they can continue to operate fairly over time”, says Te Kapunga Dewes, Chair of NPaT. However, the sector highlights concern with the proposal for mandatory Land Use Capability (LUC) assessments, which could add unnecessary cost and uncertainty. “Requiring foresters to fund their own LUC checks creates another barrier in front of new planting, particularly for smaller investors. It’s an unfair restriction on afforestation and creates an environmental own-goal of discouraging more carbon sequestration through forestry”, says Peter Davies-Colley, Past-President of NZFFA. “Our objective throughout this process has been to ensure that foresters are paying their fair share for efficient, reasonable and transparent administrative services. We believe the proposal released today is fairer than that proposed in 2023 and more appropriately reflects the costs of administration”, says Andrew Cushen, Chief Executive of CFA. The five organisations encourage foresters to have their say in the consultation, which is now open. Source: Forest Owners Association (NZFOA) NZIF warns risks remain despite emissions plan amendment
The New Zealand Institute of Forestry (NZIF) says the
Government’s January 2026 amendment to the Second
Emissions Reduction Plan provides policy clarity, but shifts significant
delivery risk into the second half of the decade.The amendment confirms the Government will not proceed with on farm agricultural emissions pricing by 2030, relying instead on a market and technology led approach. While NZIF supports the development of practical mitigation tools for farmers, the updated projections make clear current settings increase uncertainty beyond 2030. Updated modelling shows New Zealand remains on track to meet its first and second emissions budgets, with forestry removals continuing to play a critical role. However, projections also indicate New Zealand is off track for the third emissions budget and the 2030 biogenic methane target under current assumptions. “Removing a policy lever without a fully proven replacement increases risk,” says NZIF President James Treadwell. “Technology led approaches can work, but only if adoption is rapid, widespread, and measurable. At present, much of the success of this approach is assumed rather than demonstrated.” NZIF notes higher agricultural production and stock numbers are projected to offset a significant portion of expected emissions reductions from mitigation technologies. This places greater pressure on forestry removals and the wider ETS to carry the system, while long term signals for land use and investment remain uncertain. “Forestry continues to act as the buffer in New Zealand’s emissions profile,” says Treadwell. “This role needs to be acknowledged honestly. If forestry is expected to underpin emissions budgets, policy settings must remain stable, credible, and investment ready.” NZIF is concerned deferring difficult decisions increases the scale of action required in the next emissions reduction plan. Without clear incentives, regulatory backstops, or alternative pricing mechanisms, there is a risk emissions reductions are delayed. NZIF calls on the Government to use the lead up to the third emissions reduction plan to:
Source: New Zealand Institute of Forestry (NZIF)  Australian softwood log exports boost to A$1.491 million m3Australia’s exports of softwood logs over the year-ended October 2025 totalled 1.491 million m3, a solid 43.5% higher than the prior year, but still significantly lower than peak period that ended in 2020.In October, exports totalled 173,247 m3, at a weighted price of AUDFob136.62/m3. Formal reporting shows India received 74% of the total, while shipments to China accounted for 23%. The growth of the market to India is also a difference from the previous period when China received almost all Australia’s softwood logs. Over the year-ended October 2025, Australia’s total exports of softwood logs were, totaling 1.491 million m3. Reported monthly exports totaled 173,247 m3 in October 2025.  For exports, softwood logs are differentiated as smaller or larger than 15 cm diameter. The distinction between log sizes was previously more noteworthy, but analysis becomes challenging as monthly export volumes are increasingly erratic, as seen in the chart. If the chart retains validity in current markets, it is in part to show the contrast over time. Larger logs (diameter >15cm) are dominating Australia’s exports. From 2021, the trend shifted away from favouring exports of the smaller diameter (<15 cm) logs. Larger dimension logs are dominating export data reports and growing strongly from some regions. Although these logs are >15cm diameter at the small-end, industry reports demonstrate they are rarely sawlogs, with most <22cm diameter at the small-end. Over the year ending October 2025, exports of the smaller logs totalled 0.176 million m3 or 11.8% of the total, while shipments of larger logs totalled 1.315 million m3 (88.2%). Differentiation of exports based on diameter also allows for some price analysis. Export prices for the smaller logs have remained at a relatively stable price in recent months, moving through a narrow range, while the average price of the larger diameter logs has fluctuated. In October, exports of the smaller logs tallied an average AUDFob130.43/m3 while the larger diameter logs saw prices at AUDFob138.77/m3. More >> Source & image credit: FWPA SnapSTAT - Minimum wage around the world Recent analysis from Picodi shows how the minimum wage varies across 67 countries, as of January 2023.
NZ January report - a vibrant domestic scene
The harvesting of forests has swung back in to gear after the
holiday break with both current sales and the near future looking mostly
positive.The NZ domestic scene is currently leading the charge with some sawmill owners reporting reasonable order books. More particularly, most believe 2026 is shaping up to be a better trading year with wider out enquiries and the volume of phone traffic suggesting a general improvement in house starts and light construction in our near future. A vibrant domestic scene is good for forest growers with the associated money go round generated by log sales also good for economic vibrancy across all ranges of communities, including, of course, more jobs. This year, Chinese New Year (CNY) is later than normal at a 17 February start. The first 7 days are the main public holiday whilst festive celebrations continue up to 3rd March to include the Lantern Festival. 2026 is the year of the horse, considered generally to be positive. All of this is relevant to the log trade with NZ going in to full log export production whilst our key market is on holiday. Just to what degree the China Eastern seaboard returns to good daily usage numbers following CNY will be critical to supply/demand and therefore log prices. Recent trade numbers out of China are staggering. 2025 yielded a $1.2 trillion trade surplus, cash reserves are now in excess of $3 trillion, export sales up 6.6% with export sales to the US down 30% in 2025. All of this is critical to a NZ Forest grower. Economic growth centred on manufacturing and exports equals more wood usage. With NZ currently supplying in excess of 80% of all softwood logs in to this massive market, increased wood usage equals “you beauty”. More >> Source: Laurie Forestry  WPMA looking ahead for 2026
Although 2026 has only just begun, New Zealand’s political
landscape is already gaining momentum as the country heads toward the 7
November general election. Industry groups, including WPMA, will soon roll out policies and actions that we want political parties to support, such as value-added wood processing, market access, infrastructure development, training, and timber as a national building and construction solution. As a voluntary based industry Association, we will remain focussed on our members and what they see as the way forward for their businesses to be successful. If you are not a member and would like to know more about the WPMA, feel free to reach out to me. Your voice counts. More >> Source & image credit: WPMA Biosensors monitoring plant physiology for precision forestryDynamic, non-destructive tracking of plant physiology using wearable biosensors was one of the top emerging technologies of 2025. In research published in August 2025, Bioeconomy Science Institute researcher, Dalila Pasquini, co-led the study into monitoring potassium ions in living pine trees.Ion-selective organic electrochemical transistors (IS-OECTs), or biosensors, are miniaturised and much more sensitive to fluctuations of ion concentration than current sensors. This allows continuous detection of subtle changes with minimal damage to the plants. Potassium, the most abundant ion in plants, is important for growth and defence, its variations can be a sign of plant health. Why this research matters? Recognised by the World Economic Forum as one of the Top 10 Emerging Technologies of 2025, autonomous biochemical sensing offers unprecedented insights into plant physiology. For the first time, we can dynamically track a specific ion pattern in vivo (inserted directly into a living plant) over several weeks. The biosensors are also produced with low-cost manufacturing methods, compared with the current more complex and expensive methods. This innovative and cost-effective solution to plant monitoring has the potential for greater uptake across forestry and other agricultural and horticultural fields. This sensing technology allows for closer monitoring of trees and plants, enabling faster and more accurate decision making about what the plant might need to thrive. This work was led by the Bioeconomy Science Institute and funded by the MBIE Smart Ideas Fund, in collaboration with the University of Cambridge (UK) and Incheon National University (South Korea). Co-first author, Dalila Pasquini, has been supported by the Scion SSIF fund for her postdoctoral fellowship research. Mathias Sorieul, Alan Dickson, Stephanie Davy and Yi Chen contributed to the research. We also acknowledge Michael Watt, Donald White, Priscilla Corbett-Lad, Dean Meason, Graham Coker, Anita Wylie, Matt Dunn and Michael Robertson for their technical assistance and discussions. Read the full article here Source & image credit: Bioeconomy Science Institute Tonsley Technical College showcase mass engineered timber
The opening of the State Government’s Tonsley Technical
College marks a major milestone for South Australia’s forest and
timber industries, which have proudly grown, manufactured and
supplied much of the mass-timber material used in this state-of-the-art
educational facility.Purpose-built to train the next generation of technicians, tradespeople and innovators, the College is also a practical learning tool for South Australia’s builders, architects and developers. While mass engineered timber has featured in high-profile local projects such as the Adelaide Oval Hotel and an apartment development in Kent Town, it is still not widely adopted across South Australian construction. The contemporary design of Tonsley, designed by DAS and delivered by Sarah Constructions, demonstrates how mass timber can be used at scale in high-performance buildings. Chief Executive Officer of the South Australian Forest Products Association, Nathan Paine, said the project highlights timber’s role in decarbonising the built environment while supporting domestic manufacturing. “Tonsley shows how local architects, builders and developers can deliver future-focused buildings that support South Australian manufacturing and help decarbonise the economy by storing carbon within the structure,” Mr Paine said. “The College demonstrates the practical use of engineered mass-timber products, including cross-laminated timber (CLT) manufactured in Tarpeena, South Australia by NexTimber by Timberlink, and glue-laminated timber (GLT) supplied by Australian Sustainable Hardwoods from Heyfield in Victoria. “By choosing locally manufactured timber over more carbon-intensive materials, the project supports forest growers, timber manufacturers and regional jobs, while reducing embodied emissions and locking away carbon for decades.” According to the Association, the CLT and GLT used in the project are estimated to store more than 900,000 kilograms of carbon dioxide equivalent. When combined with local steel and concrete, the building’s total embodied carbon is 3,792,548 kilograms of CO₂-e, a 40 per cent reduction compared with a traditional build. The project also reflects a renewed focus on South Australia’s sovereign capability to manufacture essential building materials locally. The COVID-19 pandemic highlighted the risks of relying on imported products and reinforced the importance of domestic manufacturing for economic resilience and national security. As South Australian Treasurer Tom Koutsantonis recently said, “If we can’t make key building products ourselves and are entirely reliant on imports, in a changing and dangerous world that makes Australia incredibly vulnerable. COVID showed us the importance of having our own sovereign capability.” Using South Australian timber in State Government projects is a practical expression of that principle. More >> Source: South Australia Forest Products Association Image credit: DAS Studio  Clutha: 150,000 tonnes of fallen trees, NZ$1m council costs
A storm that lasted minutes has equated to at least a years'
work on their 220-hectare sheep and beef farm near Clydevale, Holly and
Todd McCammon say. The pair watched entire shelter belts
tip over on 23 October, ripping up kilometres of fencing, blocking the
driveway, and narrowly missing stock.Branches were hurled like javelins into paddocks, and while no people or animals were injured, the pair have vowed not to plant eucalyptus trees on the property again. In the months since, the McCammons have been juggling seasonal farm work with long days on the chainsaw and hammering in new fence posts. "It was just so much destruction in such a short amount of time," Holly McCammon said. "The scale of it - it was a shock looking around... knowing how much it would take to clean up," Todd McCammon said. He said the pair had spent about $25,000 repairing the farm to date - "and that's probably halfway." Like many farmers, the McCammons' insurance did not cover fallen trees or damaged fencing. The pair were still waiting for heavy machinery to deal with the largest logs. More >> Source & image credit: RNZ Horse Powertrain partners with Scania's electric timber truck pilot
Horse Powertrain has been selected by Scania to provide its
advanced range-extender system for the pilot vehicle, currently
operating as a heavy-duty timber truck in Sweden. The
collaboration marks an important step in testing hybrid powertrain
solutions for demanding transport applications such as forestry
logistics.The pilot forms part of the Scania Pilot Partner program and is currently operating in Sweden under SCA, one of Europe’s largest forestry companies. The vehicle is built to handle Sweden’s most demanding timber routes, transporting heavy loads through steep and remote terrain where access to charging infrastructure remains scarce. By combining a powerful battery-electric drivetrain with the generator designed In Sweden by Horse Powertrain’s division Aurobay Technologies, the truck achieves both long-distance capability and reduced CO₂ emissions. The test route covers approximately 16 km, with an operational target of completing 7–8 rounds per day - comparable to a diesel truck and delivering slightly higher productivity than a pure battery-electric truck due to avoided charging downtime. The configuration supports the truck’s battery packs with a 120-kW range-extender unit based on Horse Powertrain’s 2.0 liter high-efficiency multi-fuel engine. Acting purely as an onboard charger, the unit supplies electric energy when required. For instance, during long hauls, temperature extremes, or unexpected delays, Matias Giannini, CEO at Horse Powertrain, said: "Forestry logistics represents one of the toughest challenges for electrification. The forest roads of northern Sweden demand strength, range and reliability. Charging stations are few, but the timber never waits. You can think of our range-extender as a powerbank for a heavy-duty truck: silent, efficient, and always there when you need it. By partnering with Scania and drawing on our engineering excellence, we’re proving how a compact, high-efficiency range-extender enables electric trucks to operate reliably in the most demanding environments. It’s a technology that cuts CO₂ now.” Tony Sandberg, Vice President at Scania Pilot Partner added: "What we’re doing in Sweden with Horse Powertrain and SCA builds directly on the 100-day trial we ran together with a logistics partner in Germany earlier this year. That vehicle logged almost 22,000 kilometers and drove more than 90 percent of the time on pure electric power, only using the range-extender when no charging was available. The result was a CO₂ reduction of over 90 percent compared with a diesel truck. Those learnings give us a strong foundation as we tailor the system for demanding Nordic timber operations." More >> Source: Horse Powertrain via Cision Image credit: Horse Powertrain --(2022)2.jpg) The future of cities... in wood
Wood is one of the oldest construction materials known to man, and now
takes the form of mass timber. An exhibit in Detroit is
showcasing what future buildings might look like in Michigan and beyond.
“What people will see here is a variety of architectural models highlighting innovative mass timber design,” says Sandra Lupien, Director of MassTimber@MSU, a leading program at Michigan State University which promotes sustainable building practices and advancement of mass timber in construction. “They’ll see video content about safety and mass timber production.” Mass timber can help preserve the health of our forests, speed up the building process and reduce the harmful environmental impact of new buildings. Lupien says mass timber can even assist with the housing gap in Michigan, which requires almost 200,000 units of housing to be built. “When we can build large buildings like apartment buildings with wood, we can really start thinking about how to close that housing gap,” Lupien adds. More >> Source & image credit: WILX10 Jobs
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And one to end the week on... imitating wood
Darn those concrete folks; they’re at it again … trying to imitate wood.  More >>  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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