Friday Offcuts – 2 October 2026
Click to Subscribe - It's FREE! Welcome to this week’s issue of Friday Offcuts.With New Zealand’s election approaching, forestry is back in the political spotlight, with the major parties setting out their positions on the ETS, land use, wood processing, biomass and the future of the sector. In Australia, the forestry industry is preparing for another bushfire season, while in New Zealand, new investment is helping unlock previously unused forest material for industrial energy. We also look at questions around carbon credit integrity and the latest global progress on sustainability across the forest and paper industries. There’s plenty more in this week’s coverage, including a major conservation partnership in the central North Island, Australia’s timber decarbonisation pathway and growing demand for engineered wood products. We also look at New Zealand’s push into the Indian market, job concerns at the Millicent mill, a major bioenergy milestone at OneFortyOne’s Jubilee Sawmill and the latest NZ log market update. And, to finish, an interesting look at plans for a new South Island spaceport. Read these stories and more in this week’s packed issue of Friday Offcuts.
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This week we have for you:
Election year: Where the parties stand on forestry [NZ]The New Zealand Forest Owners Association (NZFOA) hosted an Election year forestry panel at the National Library in Wellington on Monday, 21 September 2026, bringing political parties together to discuss the issues that matter most to forest owners and the wider sector.Facilitated by Stuff political editor Jenna Lynch, the panel featured Hon Todd McClay (National), Hon Mark Patterson (NZ First), Hon Damien O’Connor (Labour), Simon Court (ACT) and Steve Abel (Green). Discussion covered the future of forestry in the Emissions Trading Scheme (ETS), land use change, environmental responsibility, regional roading costs, high energy prices for domestic wood processors, facilitating woody biomass, a wood first policy and the role of science, research and innovation in supporting the future of our forests. With trees planted today taking 25 to 30 years to reach harvest, the policy settings made today influence investment decisions for decades. The panel provided an opportunity to hear where the parties align and where their approaches differ and what this could mean for forest owners following the election. A scorecard has been developed summarising each parties’ position on the key issues discussed. It provides a quick reference to the parties’ positions on how they would support forestry and where those positions differ, across the issues most relevant to forest owners. Source: The New Zealand Forest Owners Association (NZFOA) Forestry industry ready & resourced for bushfire season [AU]
Australia’s sustainable and innovative forestry industry
is well prepared for the upcoming bushfire season, and plays a critical
role in preventing, managing and responding to bushfires.With the 2026-27 bushfire season starting today, AFPA joined forestry members near Bunbury, in Western Australia, to highlight the industry’s commitment to reducing bushfire risks in regional communities, as the warmer months approach. AFPA Senior Policy Manager and bushfire spokesperson Dominic Lane (pictured above left) said the well-resourced industry has a long and effective tradition of helping keep forests, assets and communities safe. “Our sector is fully committed and ready to reduce and manage bushfire risks, and invests significant resources every year on preparedness and prevention,” Mr Lane said. “We work closely with local, state and national emergency management authorities and volunteers to protect forests, farms, reserves, wildlife and communities.” A recent AFPA survey found the sector invests more than $100 million each year in bushfire prevention, mitigation and response across Australia. “This includes around $8 million on fire towers, detection cameras and other monitoring systems, almost $65 million on firebreaks, roads, prescribed burning and fuel management, and almost $30 million on more than 1,200 firefighting appliances and 1,500 personnel,” Mr Lane said. “Forestry companies also contribute around $15 million through insurance and other levies that support bushfire preparedness and response.” Mr Lane said the industry works hand-in-glove with local fire authorities, and regularly undertakes hazard reduction burning and embraces new techniques to reduce fuel loads. “For example, Wespine in WA is using cattle in plantation forests to reduce fuel loads, as part of an innovative new trial. Called pyrograzing, this biological method offers a highly customisable, low-emission approach to fire management. “Overall, we sincerely our thank and applaud the forestry sector for their strong contribution and work in this critical emergency management area.” Source & image credit: Australian Forest Products Association (AFPA) Untapped wood from forestry to help fuel NZ industry [NZ]
The country’s supply of sustainable wood fuel is ramping
up with work underway to capture previously unused forestry material and
investigate new wood energy manufacturing plants. “When businesses are looking at energy options, woody biomass could provide an economic alternative to help keep manufacturer’s processes running and jobs in regions across New Zealand,” said Richard Briggs, EECA Group Manager, Delivery & Partnerships “We know from regional analysis by EECA (Energy Efficiency and Conservation Authority) that there’s a significant, untapped supply of wood fibre from the forest that could be fuelling our industries.” Woody biomass provides lower lifecycle greenhouse gas emissions than fossil fuels when sustainably sourced and managed. Capturing forestry potential “New Zealand has 8 million tonnes of wood out of commercial forests per year that could sustainably be used as fuel,” said Briggs. “While the opportunity is there, the upfront costs of establishing collection points has been a barrier. This is the next step in helping open up opportunities for New Zealand to make better use of our resources and power industry.” EECA is investing in five new wood energy aggregation facilities to secure low-grade wood from commercial forestry alongside the private sector. Spread between Southland and Waikato. The sites will provide a central repository for nearby forestry operations to collect, store, and prepare wood that would otherwise go unused or left in the forest. “We know there’s plenty of wood available, it’s just not being collected or stored in a considered way,” said Briggs. “By capturing this material there’s an opportunity for nearby businesses, and even mature biomass operations, to ramp up their use of it as a fuel. Plus, it’s a win for the forestry industry and adds a potential additional revenue source.” Once operational, the sites will have a combined capacity to process 200,000 tonnes per year of wood chip fuel – enough to supply around 2 petajoules (PJ) of energy annually or meet the annual fuel demand of around 10–20 industrial businesses like dairy and meat processors, food manufacturers, or laundries. In total EECA is contributing $3.7M in funding, helping to unlock an estimated $11.6 million in private investment across the five projects. Turning wood into fuel – businesses look to new manufacturing facilities Following a request for proposal, an additional four projects looking to establish wood energy manufacturing facilities have received repayable grants to develop their investment case for getting up and running. “Developing robust investment cases has been a critical barrier to building New Zealand’s wood energy supply. By supporting businesses to make this detailed step, we’re helping unlock low carbon, future fuels and build out a much-needed supply chain,” said Briggs. Wood energy manufacturing plants being explored around the country could significantly expand New Zealand’s energy supply, giving businesses using coal and gas greater choice in how they power their operations. More >> Source: EECA  Saving the forest carbon method didn't fix the maths [AU]
The Senate has made a political decision to allow the Improved
Native Forest Management (INFM) Method, which credits carbon for
reducing or ending timber harvesting in native forests, to stand.
The vote reflects the environmental ideologies that drive
Australian politics.The decision does not settle the question of the Method’s integrity, nor does it verify that the maths adds up. For more than a year, Forestry Australia has raised detailed technical concerns through multiple channels about how the INFM Method calculates carbon abatement. We have the analysis that supports those concerns and have offered to work constructively with government and stakeholders to resolve the problems. Our members include some of Australia’s foremost forest carbon experts. Their independent analysis identified material accounting concerns. None were addressed in the Senate debate, and none have yet been fixed. The maths and integrity of the INFM Method should have formed the basis of the decision, but the long-standing and highly emotive debate about native forest harvesting ultimately prevailed. The problem is that a politically convenient outcome, such as ending native forest timber harvesting, does not automatically create a genuine carbon credit. Australian Carbon Credit Units (ACCUs) are the currency of climate policy. Businesses buy them to meet obligations or offset emissions. Governments rely on them to help meet Australia’s emissions targets. Landholders and investors make long-term decisions based on their value. If an ACCU says one tonne of carbon abatement has occurred, the system must be able to demonstrate that one tonne really has occurred. The Greens announced their support for INFM under the headline “Real pollution cuts, not accounting tricks,” while simultaneously announcing opposition to a Bill intended to strengthen the governance, transparency and integrity of the ACCU scheme and announcing an intention to disallow a private land method that has been transparently developed through many years of co-design involving scientists, agricultural organisations, carbon practitioners, conservation organisations, governments and land managers. At the same time, they have supported an INFM Method that has lacked transparent process, was not developed with forestry experts and has material technical issues that remain unanswered. The irony is difficult to miss. Poor-quality credits have consequences. More >> Source: Dr Michelle Freeman, President, Forestry Australia --(2022)2.jpg) Global sustainability progress report [Int]
The International Council of Forest and Paper Associations (ICFPA) released its
biennial Sustainability Progress Report which demonstrates progress in
seven key areas of sustainability. The 2026 report also
highlights the role the forest products sector can play in helping meet
global climate goals.“As the 2026 Sustainability Progress Report makes clear, the global forest products sector continues to make measurable progress toward a more sustainable future,” said José Carlos da Fonseca Jr., ICFPA President. “Across regions, our members are demonstrating that sustainably managed forests, renewable materials and paper recycling are essential to supporting communities, strengthening circularity and advancing responsible growth around the world.” The ICFPA Sustainability Progress Report tracks progress achieved in 2022-2023. The overall trend is positive – a reflection that the industry continues to improve in key sustainability areas from our baseline years. In addition to quantitative metrics that demonstrate our industry’s progress towards sustainability commitments, the report includes case studies to provide a more robust and qualitative reflection of our industry’s sustainability performance. Key progress on ICFPA’s sustainability performance indicators include:
ICFPA serves as a forum of global dialogue, coordination and co-operation. Currently, the ICFPA represents 16 pulp, paper, wood and fibre-based associations that encompass 27 countries, including many of the top pulp, paper and wood producers around the world. The 2026 ICFPA Sustainability Progress Report can be downloaded. Source & image credit: International Council of Forest and Paper Associations (ICFPA) Landmark forestry & conservation alliance [NZ]
Kaingaroa Tipu has just revealed details of a $2 million
partnership agreement with Hawke’s Bay-based Forest Lifeforce
Restoration Trust (FLRT) to support long-term ecological restoration and
protection across 11,359 hectares of indigenous forest in
inland Hawke’s Bay, mid-way between Taupō and Napier.The partnership is based on an initial 10-year commitment that will give the time needed to prove significant improvements in forest health and species recovery. Both organisations have agreed to a formal progress review after five years, with the possibility of extending the collaboration further. It is formalised through a comprehensive 10-year ecological management plan (2026-2036) that unites the proven conservation expertise of the Forest Lifeforce Restoration Trust with the extensive operational resources of Kaingaroa Tipu. Together, the organisations will manage ecological and environmental restoration work on the Trust’s Pohokura property north of the Napier-Taupo Highway, ensuring the preservation of one of the region’s most significant natural assets. Pohokura is a site of exceptional ecological value, featuring an uninterrupted sequence of indigenous vegetation progressing from lowland to subalpine bioclimatic zones. It serves as an important ecological corridor within the mountain ranges of the central North Island and provides critical habitat for many threatened and at-risk species of plants and animals. The partners will implement an ambitious work programme designed to enhance the site’s status as an area of High Conservation Value. Priorities include:
"Pohokura represents a significant opportunity to enhance our ecological footprint,” said Colin Maunder, Kaingaroa Tipu’s General Manager of Sustainability. “By partnering with the Forest Lifeforce Restoration Trust, we are not only meeting our FSC requirements but actively contributing to the restoration of this country’s indigenous biodiversity on a landscape scale." More >> Source & image credit: Kaingaroa Tipu  The timber industry’s decarbonisation pathway [AU]Australia’s energy transition is reshaping the economy. The latest Intergenerational Report 2026 and FWPA’s Building a Low-Carbon Future for Australia point in a similar direction, consistent with a transition beyond net zero. The Intergenerational Report’s projections point to a renewables-dominated electricity grid, and a declining fuel-excise base up to 2050.A grid dominated by renewables Figure 1, based on the latest Intergenerational Report 2026, shows the energy mix from 2026 to 2050 under a scenario involving significant investment in the energy transition. Coal generation, which supplied around 170 TWh in 2009–10, declines steadily and falls below 5 TWh after 2035. Generation from wind, large-scale solar and rooftop solar expands significantly, increasing total electricity generation from roughly 200 TWh to more than 450 TWh by 2049–50 as electrification spreads across the economy. This is not a business-as-usual (BAU) scenario. It depends on sustained and significant investment in generation, transmission and energy storage. As this investment occurs, the electricity used to power sawmills and other forest and wood product operations become progressively cleaner, even without changes to the industry’s own equipment. Figure 1: Australian Energy Mix Transition in the Intergenerational Report 2026  The fiscal signal from fuel excise The same transition has a budget consequence. Figure 2, also from Intergenerational Report projections, shows gross fuel excise falling from around 0.9 per cent of GDP in 2025-26 to under 0.2 per cent by 2065-66. Net fuel excise falls further, less than 0.1 per cent of GDP. This scenario assumes broad adoption of electric transport, improving energy efficiency while reducing the use of taxable fossil fuels. As fuel consumption declines, so too does the fuel-excise revenue base that has traditionally supported roads and other public services. For industries that transport heavy loads, such as forestry and wood products, the implications are significant. More >> Source & image credit: Forest & Wood Products Australia (FWPA) Australia's next timber opportunity is engineered [AU]
Australia’s housing construction market is changing with
the shift toward engineered wood products creating new opportunities to
deliver more value locally, in our regional communities.The strongest housing growth is no longer concentrated in detached homes. In 2025, townhouse approvals increased by 20.5 per cent, while approvals for four-to-eight-storey buildings increased by 70.5 per cent. By comparison, house approvals increased by just 1.9 per cent. These figures point to a construction market that is becoming more reliant on multi-residential, mid-rise and higher-density formats. That matters because these buildings require construction systems that can deliver greater consistency, precision and productivity. They create an opportunity for products that can be engineered, standardised and manufactured off site before being assembled efficiently on site. Engineered wood products are increasingly part of that opportunity. But the market data shows that Australia is currently meeting much of its growing EWP demand through imports. The latest analysis by IndustryEdge shows, in 2025–26, Australia imported $1.941 billion of major wood products, an increase of 10.8 per cent, or $189 million, on the previous year. Engineered wood products accounted for $676.9 million of that total, up 6.2 per cent. This occurred despite a relatively modest increase in housing approvals and otherwise unremarkable demand conditions. In other words, the increase cannot be explained simply by a construction boom. It points to a deeper shift in the products being specified, purchased and used in Australian construction. The clearest example is the growing consumption of Laminated Veneer Lumber - LVL. Formally reported imports reached 254,065 cubic metres in 2025–26, growing from 167,229 cubic metres in 2024–25 compared with 95,919 cubic metres in 2022–23 – a three year increase of more than 160 per cent. It’s estimated total LVL imports will exceed 300,000 cubic metres annually in the near term. The value of those imports reached $159.9 million in 2025–26. Yet the average import price fell to $629 per cubic metre, down from $821 the previous year and $1,294 in 2022–23. That combination: rapidly increasing volumes and falling prices, is significant. It suggests that overseas manufacturers are not simply supplying a temporary shortfall, they are establishing a stronger position in the Australian market. LVL is not the only engineered or manufactured wood product experiencing this pressure. Plywood imports increased to 656,014 cubic metres in 2025–26, up from 525,599 cubic metres the previous year. MDF imports reached 183,547 cubic metres, compared with 122,921 cubic metres in 2024–25. In both cases, import volumes rose sharply while average import prices fell. Taken together, the figures show an important change in Australia’s timber market. The rise of engineered wood products is not a distant prospect: they are already being consumed at significant and growing volumes. The market is rapidly forming now, but the majority of the manufacturing capacity supplying the demand is being delivered offshore. More >> Source & image credit: The Precinct NZTIF update: MumbaiWood 2026 & India markets [NZ]
NZTIF recently participated in MumbaiWood 2026 in Mumbai as part
of a wider programme aimed at developing opportunities for New Zealand
timber products in India.NZTIF President Bruce Larsen and Chief Executive Jeff Ilott travelled to India from 14 to 21 September, with the visit supported by NZ Trade and Enterprise, Te Uru Rākau and the Bio-Economy Science Institute. The programme was designed to combine the trade show with direct engagement across the Indian timber, construction, design and manufacturing sectors. MumbaiWood and the New Zealand presence MumbaiWood 2026 was held at the Bombay Exhibition Centre from 18 to 20 September 2026. NZTIF participated through the New Zealand Pavilion, which was organised with NZTE support. The Pavilion initiative was intended to give New Zealand wood and forestry organisations individual visibility while also presenting a coordinated New Zealand presence. The programme was designed around engagement with manufacturers, importers, distributors, architects and project buyers. NZTIF took a range of physical New Zealand radiata pine product samples to Mumbai, including decking, weatherboards, structural timber, clears, LVL and Glulam, enabling discussions to move beyond logs and commodity products and demonstrate the range of value-added products New Zealand can supply. Why India matters The visit was deliberately broader than attending a trade show. Before departure, NZTIF identified four objectives:
A market study circulated to the travelling group identified premium construction, commercial and hospitality applications among areas where further opportunities may develop. The market study will be circulated once finalised. This reinforces NZTIF's view that the opportunity is not simply to sell more wood into India. The longer-term challenge is to build recognition of New Zealand radiata pine as a reliable material for a much broader range of higher-value applications. Building relationships beyond the trade show A central purpose of the visit was therefore relationship-building. Prior to departure, NZTIF had identified engagement with organisations including the Indian Institute of Architects, Indian Institute of Interior Designers, Indian Society of Landscape Architects, Builders Association of India and the Association of Furniture Manufacturers and Traders as part of the programme. This approach reflects an important lesson from the work undertaken before MumbaiWood: India needs to be approached through both the commercial supply chain and the organisations and professionals influencing material choice. More >> Source & image credit: NZ Timber Industry Federation (NZTIF)  Job cut fears at South Australia's Millicent mill [AU]
Australia’s national timber union is calling on
governments to provide greater support for domestic manufacturing
following job security concerns at one of the nation’s key tissue
plants. The historic Millicent mill in regional South Australia has operated since 1960 and supplies millions of toilet rolls nationwide. It now faces uncertainty following its acquisition by international hygiene firm Arbex. While the number of potential redundancies remains unconfirmed, the Timber, Furnishing and Textiles Union is in discussions with mill management over proposed operational changes. District Secretary Denise Campbell-Burns says the union will strongly advocate for affected workers and the wider Millicent community of around 4,700 people. More >> Source: ABC News Image credit: Kimberly-Clark Australia Milestone for Jubilee Sawmill's $88m bioenergy project [AU]
Construction of OneFortyOne’s $88 million Co-Generation
Boiler project facility has reached another significant milestone, with
the project’s boiler now in place at the Jubilee Sawmill.
With crews on site before sunrise on 16 September, months of planning culminated in the successful lift of the project’s 162-tonne boiler. The operation used a 480-tonne crawler crane and a 450-tonne mobile hydraulic crane, taking just 75 minutes from lift to final placement, with the boiler now the heart of the new facility. Project manager Mick Geraghty said the successful lift followed months of detailed preparation. “Planning started back in June 2025, with multiple site visits, engineering reviews and detailed lift plans developed alongside the crane contractors to make sure every aspect of the operation was meticulously assessed,” Mick said. “On the day, everything went exactly as planned. The lift was completed safely, seamlessly, and ahead of schedule, which is a terrific outcome for everyone involved.” The boiler is a key component of the renewable energy system that will enable OneFortyOne to generate electricity using wood fibre residues from its own operations to power the entire sawmill. “This was one of the most visible and technically challenging stages of the project to date,” Mick said. “Having the boiler in place opens up a number of new work fronts across the project. We can now progress with plant and equipment installation, earthworks and civil construction in the emissions area.” “It’s a real credit to the project team, contractors, and everyone who has contributed to getting us to this point. To see something that has been years in the planning now standing on site is very rewarding.” Alongside the new office facilities taking shape nearby, the changing sawmill skyline reflects OneFortyOne’s investment in a more sustainable future for manufacturing in the Green Triangle. Once operational, the co-generation facility will convert wood fibre residues into renewable energy, moving Jubilee Sawmill off the grid and towards eliminating Scope 2 emissions across OneFortyOne’s Australian operations. More >> Source & image credit: OneFortyOne  NZ monthly market report - September 2026 [NZ]
A recent commentator suggested the current China market was like
a stagnant pond lacking life and vibrancy. The commentator may have a
short memory, given 2 years ago the pond was more like the
scene of a raging unpredictable storm resulting in severe waves of highs
and lows. I much prefer stagnant!Export log prices are just off the preferred pace making NZ forests greater than 100km to a port more challenging to yield good returns. But prices are stable. This remains an important feature of consistency and continuity which in turns creates efficiency and reduces costs. As reported last month, China continues to print good manufacturing numbers. The PMI has continued to lift, as at early September sitting at 50.4, similar to June but up on July and August. Despite the illustrious DT’s best tariffs impositions, China exports are up. This is also despite massive storms and high temperatures internally. A weaker RMB against the Green Back is also helping exporters. Some eye watering numbers out of China include industrial profits up close to 18% year on year with RMB4.58 trillion in earnings for the first 7 months this year to date. How is that working for you now Donald? A recent visit to Queensland found box stores and building sites full of China made high quality LVL framing lumber, blowing Australia Sawmill owners out of the water with lumber prices well below what they can produce for. Recent protestations to the Australia Government by the sawmill fraternity have apparently fallen on deaf ears. One worries NZ’s turn could be just around the corner. September settlements in China have been around the $130 per m3 mark, largely unchanged despite a couple of exporters pushing as high as $134. A lack of customer interest in those numbers quickly brought them to heel. Domestic prices in China have been increasing but the trading margin remains at a US$4 -5/m3 gap which is very close to about right. Month to date usage numbers have been hovering around 55,000 to 60,000 m3 per day, again largely unchanged from August. Inventory is sitting at 2.4million m3, down 90,000 m3 from July. This is a low number compared to 2 years ago, but the market appears to remain comfortable at these levels. More >> Source & image credit: Laurie Forestry South Island spaceport found to be feasible [NZ]
A study by French space firm SpacedreamS has confirmed the
feasibility of developing a major spaceport south of Christchurch to
support European rocket launches. Conducted for Tāwhaki, a Crown-iwi national aerospace joint venture, the assessment found a New Zealand launch site could help European operators manage risks associated with weather, technical bottlenecks and geopolitical tensions. Located at Kaitōrete Spit near Lake Ellesmere Te Waihora, the proposed multi-use facility would become New Zealand’s second orbital launch site after Rocket Lab’s Mahia complex. The project represents a significant step forward for Tāwhaki following earlier funding reductions, as the region looks to tap into the rapid growth of the global space industry. More >> Source: RNZ Image credit: Tāwhaki National Aerospace Centre Jobs
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