Friday Offcuts – 28 March 2008
Click to Subscribe - It's FREE! This week we run a story on changes to a leading Industry Association in Australia, Treefarm Investment Managers Australia (TIMA). After seven years as a special interest branch of Australian Forest Growers, a new stand-alone national organisation has been set up with the major forestry managed investment scheme (MIS) companies deciding they will be more effective in bringing the industry closer together by being an independent entity.The managed timber investments sector in Australia has become the most effective means of raising funds for investment in broad-acre plantations. Since the launch in 1997 of the national strategy, "Plantations for Australia: the 2020 Vision", the MIS Plantations sector has established around 80% of all new plantations and now has over 600,000ha under management in all major plantation forestry regions in Australia. Friday Offcuts is delighted to have TIMA come on board this week as a major industry supporter to the weekly e-newsletter. Along with TIMA, Friday Offcuts, is now being supported by Appita, the NZ Institute of Forestry, Wood Processors Association of New Zealand, A3P, the Australian Forest Growers, Timber Development Association, The Institute of Foresters of Australia, Timber Queensland and the Engineered Wood Products Association of Australasia.
Our Partners & SponsorsFriday Offcuts is made possible through the generous support of the following companies. 
This week we have for you:
NZ Commission declines to give Sumitomo clearanceThe Commerce Commission has declined to give clearance to Sumitomo Forestry Co Limited - owner of Nelson Pine - to acquire all of the medium density fibre board (MDF) assets and business operations of Carter Holt Harvey Limited (Building Supplies Division) situated in Rangiora. The Rangiroa factory employs about 200 staff and makes MDF under the Customwood brand for building products, including cabinetry, furniture and joinery.The Commerce Commission have said the merged entity would only face limited constraint from the remaining existing competitor, Dongwha Patinna NZ Ltd. The potential for imports would also unlikely constrain the merged entity's pricing. In an article in the Christchurch Press, MD of Nelson Pine, Murray Sturgeon said the Commerce Commissions decision was not a surprise because the Australian Competition and Consumer Commission had declined Sumitomo's application to buy the Carter Holt panel board assets in Australia. Commerce Commission Chair Paula Rebstock said that the Commission cannot be satisfied that the proposed acquisitions will not have, or would not be likely to have, the effect of substantially lessening competition in the national market for the manufacture and supply of raw MDF panels. Public versions of the written reasons for the decision will be available as soon as practicable on the Commission's website, www.comcom.govt.nz, under Public Registers. Treefarm Investment Managers Australia changes
Treefarm Investment Managers Australia (TIMA) has made a small change to its name, and has set up as a stand-alone national organisation after seven years as a special interest branch of Australian Forest Growers, while maintaining the same close alliances. Known as Treefarm Investment Managers Association Ltd since 1 January this year, TIMA is the national organisation representing the plantation forestry investment sector of the Australian forest industry.TIMA continues to focus particularly on the regulatory environment that underpins private plantation investment, namely tax law and corporations law, and the actions of the regulatory agencies such as the Australian Taxation Office (ATO) and the Australian Securities and Investments Commission (ASIC). TIMA also complements and supports the community relations activities of its member companies, and represents the special interests of plantation forestry investment in various forums. TIMA is committed to achieving greater cohesion in forest industry representation. Although it may seem counter-intuitive to create yet another national industry body, the TIMA members - including the major forestry managed investment scheme companies; Willmott Forests, Timbercorp, ITC, Great Southern and Forest Enterprises - decided they would be more effective in bringing the industry closer together by being independent first, and then forging more cooperative relations among the associations through a series of MOUs, which are currently being negotiated. New Zealand Log Prices - March 2008After last month's relative calm, export log markets are back in choppy waters, where volatility and uncertainty prevail. Both shipping rates and the NZD have been volatile, but overall are on a strengthening trend. As foreshadowed last month, shipping rates have firmed about $US4 to average $US68 a metre, with exporters unable to pick a clear trend from here. If a slower global economy reduces Asia's demand for raw materials, then it is conceivable that shipping rates could fall quite sharply. Not only would freight volumes fall, but port congestion would ease, allowing much faster turnaround times. Log exporters are reporting a greater willingness for shipping companies to at least consider longer term contracts at rates lower than those currently prevailing.Korean log prices are mixed. After rising early in the month they are now falling and are down about $US3 a metre on average. Chinese demand and log prices have been relatively steady, which has closed the price gap with Korea. In Japan A grade prices are steady but net returns are being hurt by higher shipping costs. As expected Indian market activity has fallen away due to high stocks and prohibitive shipping costs. In domestic log markets, pruned log prices have eased this month (down $NZ2-3/tonne on average), with the weak USD and the appalling state of the US housing market. Although there are regional differences, in general logging activity is falling away sharply and once again logging crews are being laid off. Ironically this is likely to produce regional and grade specific shortages and price volatility in coming months. The NZX Agrifax Log Price Index, which measures returns from the whole forest, gave up last months gains, falling back below $NZ71 a tonne. Further falls in both domestic and export prices are probable next month unless the NZD and shipping rates moderate significantly. Log price changes: North Island: South Island: For more detailed reports contact Agri-Fax at: www.agri-fax.co.nz/enquiries.cfm
Purpose grown energy forests for self-sufficiencyPurpose-grown energy forests if planted today could meet all of New Zealand's future transport fuel and heat energy needs, without threatening the country's important agricultural industry, according to a study completed by Crown Research Institute, Scion.This conclusion is outlined in the Bioenergy Options for New Zealand report completed by Scion as part of the EnergyScape programme. The report is the result of collaboration between Crown Research Institutes Scion and NIWA, and CRL Energy, with input from Landcare Research, Crop and Food Research, Waste Solutions and Process Developments. The study has found that if New Zealand were to plant purpose-grown forests today and introduce a programme of managed harvesting and replanting, the resulting biomass could be used to meet all of New Zealand's projected future needs for transport fuels and heat. The report also states that even the most conservative estimates show New Zealand has at least 830,000 hectares of steep, erodable, low producing grass and shrub lands that could be cost effectively used for forestry. More >> Timberland ownership moving from regional to globalAlthough the total investable timberland (forestland) universe in the United States is only a microscopic percentage of the total institutional asset base (about 0.2%); in the last decade institutional and private equity timberland investments have graduated from being an obscure asset class pursued by only pioneering investors, to rapidly becoming a semi-mainstream investment for an increasing number of pension funds, university endowments and private equity/hedge fund firms.In the United States there has been a massive swing away from C Corp company ownership of timberlands. In just three years from 2004 to 2007, the area of timberland owned by forest products companies halved, while areas managed by Timber Industry Investment Organisations (TIMOs) increased by 120%, by private investors almost 110% and T-REITS by 35%. Of the top 10 company timberland owners in 1981, only one (Weyerhaeuser) had any significant core holdings left by early 2008. TIMO-only investments have increased three-fold from $9.0 billion in 1997 to more than $29 billion in early 2008. On top of that Endowment and private equity funds have also invested - and so the total new ownership investment is perhaps more than $50 billion; out of a total timberlands investment space of $70 billion. The biggest challenge facing the investment timberlands industry in 2008 is a lack of affordable properties on the market. The excess liquidity searching for timberland deals has driven up timberland prices by 2-3 times over the last several years. For instance, timberland values in the US South, which averaged only about $500 per acre in the late 1980s, now sell for in excess of $1,500 per acre; and the most recent large- tranche transaction in February this year went for almost $1,900 per acre. Incidentally the very highly geared investment in this 900,000 acre property (purchased by TimberSTAR in mid- 2006) returned an estimated annual equity Internal Rate of Return (IRR) approaching 90%. This compares with fundamental annual returns on timberlands of perhaps 5-8% in the US PNW, and 4-6% in the US South. By early 2008, a number of TIMOs had become the largest landowners/managers in the United States. Several manage more than 1.0 million acres and some more than 2.0 million acres. One TIMO now manages more than 2.5 million acres in the USA; and the largest TIMO, counting its international assets manages more than 3.5 million acres. This compares with the largest truly private landowner in the United States (Sierra Pacific) with only about 1.8 million acres under (timberlands) management. Plans to establish a number of country specific timberlands investing funds have been developed in 2007-2008 including in Russia, Brazil, Chile, Colombia and Japan. The number of global timberlands owners, funds managers, fund of funds managers, listed vehicles and institutional funds in North America, Europe Oceania, Latin America, Africa and Asia have grown so much recently that DANA Limited has been able to identify and profile/list more than 600 global players in the timberlands business; to provide material on historic and recent trends, and on the timberlands investment risk profile outlook in a new Review: The International Timberlands Ownership and Investment Review published in March 2008. For more information visit www.dana.co.nz or contact or contact jan@dana.co.nz Forestry Minister leads wood mission to IndiaForestry Minister Jim Anderton left New Zealand on Saturday to lead a trade mission to India. Jim Anderton said that India's growing importance as a market for New Zealand products and services will be in focus during the trade mission. He said that India was New Zealand's second-fastest growing export destination and high level visits between the two countries have increased in recent times, reflecting the importance placed on the relationship. The wood and building industry, and in particular solutions for India's burgeoning housing industry, are the trade focus of the mission.The New Zealand wood industry currently generates $3.1 billion in exports (or 3.15% of GDP). India is New Zealand's fifth-largest export market for wood products, worth $65 million in 2007. While only 3% of New Zealand's total wood products are exported to India, it is an important and fast-growing market. Jim Anderton will meet ministerial counterparts and construction industry representatives during the seven-day visit. The Minister has been joined by representatives from Arbor Resources, Eurocell Sawmilling, Juken Nissho, Lockwood International, Lumberlink, Pacific Forest Products Ltd, Timberbond, TPT Forests, Winstone Pulp International, and Zindia. Practical workshops set up for NZ industry associationsThree industry associations - Forest Industry Contractors Association, Forest Industry Engineering Association and the NZ Timber Design Society are combining forces to offer a series of popular and practical workshops in April in the middle of the North Island - Taupo. The two one-day workshops are running back-to-back. Discounts are available for attending both workshops.The two workshops are Practical Leadership Workshop on Thursday, 17 April and a Negotiating -(Stage 1) Workshop being held on Friday 18 April. Employers are encouraged to send supervisors or crew bosses who have been promoted into the role in the last year to the leadership workshop. Anyone in a management position involved in doing negotiating or working in a role that involves a lot of communication with managers from other companies should be attending the negotiation workshop. Good discounts apply to people attending both days or for 2 or more people attending either workshop. Copies of the two flyers for both workshops are attached above. For further information contact Gordon Thomson at Ph: 07 921 1380 or gordon.thomson@innovatek.co.nz Structural changes to NAFIFollowing a meeting of its Board of Directors, the National Association of Forest Industries (NAFI), last week announced the election of its new President, Mr Bob Pearce. Mr Pearce will succeed Dr Douglas Head as NAFI's President, who has served in the position for over two years. Mr Pearce is also the Executive Director of the Forest Industries Federation of Western Australia a position he has held for the last 10 years. Mr Pearce was previously a Minister for the former Labor government in WA. Other changes includer NAFI and Tree Plantations Australia (TPA) merging.CEO announces departure from NAFICEO of the National Association of Forest Industries (NAFI), Catherine Murphy, has advised the NAFI Board that she will be stepping down from her position as CEO at the end of March. "I have decided for family reasons to take time out from the workforce for the coming months", said Mrs Murphy.Dynamotive to develop biofuel complexes in ArgentinaDynamotive Energy Systems Corporation has submitted plans to invest C$105 million to build two electricity generation complexes in north-eastern Argentina. Each plant will consist of a 15.7 MW generation station powered by its bio-oil product, produced from wood waste and forest residue. The bio-oil will be produced by two 200-tonne-per-day modular plants. Excess fuel will be sold to commercial and industrial markets. Once the complexes are fully operational 340,000 dry tonnes of biomass will be produced annually which will allow for further expansion to other locations. Source: Bioenergy Association Newsletter, February 2008Key comments resonate with wood audienceEarlier this week National Party leader John Key was invited to officially open Lockwood Homes new ECOSMART home series and showhome in Rotorua. There was a large gathering for the event which was the launch for a revolutionary new series of eco-friendly solid time home designs. The gullwing design home incorporates many environmentally friendly and high-tech features including solar hot water heating and energy generation with the ability to feed electricity back to the national grid.Mr Key congratulated the Lockwood team on their environmental awareness and especially the high timber content of the new home series. In his speech to the audience of invited dignitaries, officials, architects and key suppliers Mr Key made reference to his partys recognition for government to help businesses promote New Zealands advantages in being environmentally-friendly in respect to climate change issues. He added that a future negotiating tactic for the country at the Kyoto Protocol table could be to argue for retention of carbon credits when trees are felled for solid timber applications where the end-product was, in the case of a solid timber home such as a Lockwood, storing the carbon for a considerable period of time. Mr Key qualified the comment later pointing out that this would be something that would need to be negotiated by New Zealand officials for any future agreements and Protocol commitment periods. NZIF conference planned for 15-18 MayThe New Zealand Institute of Forestry Conference is running in Palmerston North, Thursday 15 to Sunday 18 May 2008. The theme for this year's conference is the sustainable use of rural land and is titled Forestry & Agriculture - Collaborating for Sustainability. For further information on the conference see www.nzif.org.nzRenowned Wood Scientist passes awayTed Hills became a world leader in the field of wood science. His specialty was understanding the useful chemicals, particularly gums, that could be extracted from timber for other use. Hills, who was born in Geelong, died last month in Melbourne, spent almost his entire working life in the CSIRO. Hills early work covered tannins in various types of tree, and included the possibilities for developing industries in Papua based on the extraction of tannin from Mangrove bark. Other recurrent interests were in the kinos (gums) of eucalypts and in antho-cyanins (coloured compounds) in wood. He undertook extensive chemical studies of the polyphenols in wood tissues, the mechanism of their biosynthesis and their use in assisting classification and identification.In 1962 Hills co-edited, and co-wrote, an influential book "Wood Extractives and their Significance to the Pulp and Paper Industries". He also co-edited a book called "Eucalypts for Wood Production" in 1978. By the end of his career Hills had published two more books and about 200 papers. An effective ambassador for Australia in the forest products field, he was president of the International Academy of Wood Science from 1978 to 1982, an honorary member of the International Union of Forest Research Organisations, co-ordinator of its forest products division and executive board member. Jobs
Buy and Sell
...and one to end the week on...the baby next door
Little Johnnie's neighbour had a baby. Unfortunately, the baby was born without ears. And on that note, have a great weekend. Cheers. Brand PartnersOur Partners & Sponsors Friday Offcuts is made possible through the generous support of the following companies.
Copyright 2004-2024 © Innovatek Ltd. All rights reserved
|
