Friday Offcuts 20 December 2024Click to Subscribe - It's FREE! Welcome to this week's edition of Friday Offcuts.As 2024 draws to a close, we extend our gratitude to our readers, partners, and advertisers for their continued support, which enables us to bring you the latest in forestry developments across New Zealand, Australia, and beyond. This marks our final issue of the year—Friday Offcuts will return on 17 January 2025. Excitingly, WoodTECH 2025 exhibition spaces in Rotorua and Melbourne are sold out! The overwhelming response from the wood processing and manufacturing community has been incredible. An early programme is now available on the event website, and we thank everyone involved. Don’t miss out—super early bird pricing for registrations ends today (20 December 2024). In New Zealand, optimism surrounds the forestry sector with projected export revenue growth in 2025, driven by key markets like China and India. Meanwhile, innovation takes centre stage with the ForestInsights project enhancing resource planning, and Hawke’s Bay exploring forestry waste as renewable energy. However, a fungal disease poses a serious threat to nurseries, calling for urgent action. In Australia, sustainable timber harvesting is gaining recognition for its emissions-reduction potential, while cutting-edge AI bushfire detection systems in Tasmania lead the way in fire management. Yet, challenges persist as native logging’s economic viability is under review in New South Wales. Read these and more in another packed edition of Friday Offcuts. Thank you for a wonderful year, and we look forward to bringing you more in 2025!
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NZ Forestry exports projected to recover in 2025Forestry's export revenue is forecast to increase by four percent, according to the just released December Situation and Outlook for Primary Industries (SOPI) report. The report projects forestry export revenue to recover from a four-year low of NZ$5.7 billion, reaching NZ$6 billion for the year ending 30 June 2025. This growth is in part due to increased building activity in China, which is expected to drive higher demand for logs and processed wood products. However, global demand for wood products is expected to remain low.Log export revenue is forecast to rise by two percent, reaching NZ$3.3 billion in the year ending 30 June 2025. This will be welcome news after three years of declining log revenues. The sector’s key export market, China, was once again highlighted as a risk for forestry, with 91% of log exports heading to China in 2023/24. The report raises hope that the Chinese Government’s stimulus package will restore confidence in the building industry, driving increased demand. There is potential for increased market share in India, the third-largest market for New Zealand logs, following new fumigation rules to meet India’s phytosanitary requirements. Export volumes to India in June and September were the highest since December 2020. Rising operational costs, including log storage, handling and fumigation, were noted as factors affecting profitability. The incoming European Union Deforestation Regulation (EUDR) is noted as a possible risk for sawn timber exports. While implementation of the regulations has been delayed, manufacturers will still need to develop tracking systems to ensure compliance, which will be more challenging for those with complex supply chains. On the supply side, the closure of some wood processing plants is expected to reduce production capacity in the short term. Adding to the uncertainty are factors such as the instability of global economic recovery, potential trade barriers and continued high input costs. Forestry remains the fourth-largest export earner in the food and fibre sector, generating NZ$6 billion and sitting just behind horticulture at NZ$8 billion. Source: NZ Forest Owners Association Science needed to assess carbon impacts of timber harvestingForestry Australia has welcomed a new study published in Australian Forestry peer-reviewed journal by the former chief research scientist at the CSIRO, Dr John Raison. The paper, titled A review of the impacts of sustainable harvesting, non-harvest management and wildfire on net carbon emissions from Australian native forests, investigates the science behind claims that timber harvesting increases greenhouse gas emissions.Dr Bill Jackson, Acting President of Forestry Australia said Australian and international studies highlight the potential to lower carbon emissions by producing and using wood products from sustainably managed forests, particularly as substitutes for high-emission building materials. “This paper demonstrates the complexity in accounting for the impacts of changes to forest management on carbon stocks and greenhouse gas emissions from Australian native forests,” Dr Jackson said. “Assessing carbon impacts of forest management needs to consider the full life cycle of forest management, wood production, processing, use and disposal or reuse. The outcome depends heavily on assumptions about initial conditions, harvest intensity, timber recovery, lifetime of forest products, the impacts of wildfire and the time frame of the analysis. The paper points out that it is important to get these assumptions right, otherwise policy makers can be ill-informed about the effects of their decisions on carbon emissions. Dr Jackson said policy makers also need to consider the short, and long-term, impacts on carbon stocks of decisions to reduce or cease native forest harvesting. This includes the impacts of wildfire and reduced professional forest and fire management capacity in agencies responsible for timber production. “This paper has implications for development of new emission reduction methods under Australia’s ACCU scheme. Appropriate, landscape scale analysis using scientifically sound sampling and surveys of carbon stocks and dynamics are required to inform these methods. “The best opportunities are likely to lie in approaches that improve forest management to better integrate conservation, restoration and sustainable production and use of forest products,” Dr Jackson said. Click here to view the paper. Source & image credit: Forestry Australia Developing a forest description from remote sensingResearch recently published in the Science of Remote Sensing journal marks a major step forward for the forestry industry, showcasing for the first time how advanced deep learning and remote sensing technologies can be combined to create a detailed forest map at the regional level.Developed primarily by Scion's Remote Sensing team, in collaboration with Indufor Asia Pacific, the ForestInsights framework uses high-resolution aerial imagery and LiDAR data to deliver a detailed, accurate and updateable description of the forest resource. This study highlights the potential of ForestInsights by using the framework to map the radiata pine resource in the Gisborne region of New Zealand. Key attributes such as age classes, productivity, slope and distance to port were characterised within the mapped area. Importantly, this detailed description provided insights into potential wood flows, offering valuable information for resource planning and management. The ForestInsights methods have since been extended to most other regions of the North Island and offer a pathway towards a near real-time forest monitoring system for New Zealand’s planted forests. Learn more about the ForestInsights project and explore the most recently mapped forest extent here. More >> Source & image credit: Scion Long-term native logging in NSW questioned by reportNew South Wales's native logging industry is not "economically viable" and the state government should consider shutting it down after 2028 if its prospects do not improve, an independent economic regulator has recommended.If that happened, it would be the third state to stop logging native forests after Victoria and Western Australia, leaving Tasmania the only state with a large native logging industry. The recommendation was made by the NSW Independent Pricing and Regulatory Tribunal (IPART) in its triennial analysis of the government-owned logging company Forestry Corporation of NSW. It found Forestry Corporation's native timber operation had been steadily losing money over the past decade, in part due to delivering timber to sawmills for less than the cost of providing it. In 2028 most of those contracts binding the corporation to supply timber at certain prices are set to expire, the report says.If native logging cannot be made economically viable when the contracts are renegotiated, the "long-term feasibility" of logging native forests should be reviewed. More >> Source: ABC Connecting kids with nature: The KakaThe WIDE Trust is proud to support projects that bring together creativity, sustainability, and community engagement. One such initiative is The Kākā, a unique play structure designed and built by Wooyoung Jang, a Master of Architecture student at the University of Auckland. Supported by a WIDE Trust grant, this project exemplifies how architecture can foster meaningful connections between people and the environment.A Vision Inspired by Nature Set amidst the Summerhill Bike Trails in Papamoa, The Kākā draws inspiration from the native kākā bird, a frequent visitor to the trails. Wooyoung’s design embraces the principles of biomorphic architecture, drawing on natural forms and patterns to reflect the bird’s unique characteristics. What makes this project truly special is its use of timber sourced directly from the site. This approach not only reduces environmental impact but also enhances the structure’s natural aesthetic, making it an organic extension of the landscape. A Playful and Reflective Experience Designed with children in mind, The Kākā offers an engaging and safe space for exploration. Key features include:
Building Community Through Design This project is a testament to the power of collaboration. Working with the Summerhill Charitable Trust, Wooyoung brought a vision to life that serves the local community and aligns with the ethos of the bike trails. The Kākā demonstrates how thoughtful design can enrich outdoor spaces, fostering connections between people and the natural world. The WIDE Trust’s Role The WIDE Trust’s support for The Kākā highlights our commitment to empowering innovative projects that combine environmental stewardship with creative design. By funding Wooyoung’s work, the Trust not only supports the next generation of architects but also invests in initiatives that leave a lasting positive impact on the community. A Lasting Legacy The Kākā stands as a symbol of how architecture can nurture a bond between people and the environment. The WIDE Trust is thrilled to have been part of this journey and looks forward to supporting more projects like The Kākā, where creativity and sustainability come together to inspire and engage communities across New Zealand. More >> Source & image credit: WIDE Trust New AI cameras to detect bushfires in North West TasmaniaThe deployment of four new state-of-the-art bushfire detection stations across North West Tasmania has been announced, marking a significant advancement in fire risk management for the region. The announcement was made by Forico, Tasmania’s largest private forest manager, managing approximately 173,000 hectares across the state, who will use the cameras to enhance their capacity to quickly detect and respond to bushfires.The technology has been developed by Pano AI and offers a fully integrated bushfire detection solution that combines ultra-high-definition 360-degree panoramic cameras, satellite technology, and advanced artificial intelligence (AI) to detect new fire ignitions at the earliest stages. The cameras will be strategically positioned at Companion Hill, Guildford, Ridgley, and West Takone, with each offering a 16km detection radius, covering surrounding communities and infrastructure from Burnie in the North to Guildford in the South, including rural towns, national parks and reserves. Forico General Manager Enterprise Performance, Jim Wilson, said unplanned fires are one of the most significant risks facing Australia’s forestry sector. “Forico’s decision to install Pano AI cameras reflects our commitment to continual improvement in mitigating the threat of fire,” Mr Wilson said. “After trialling a Pano AI fire detection camera at our plantation estate in North West Tasmania for six months, we have now made the decision to invest in four new camera stations for the next three years. “The use of four stations allows for triangulation so the exact location of a fire can be pinpointed accurately. This is a significant step in our pursuit of combating bushfires, which are by far the most significant threat to our assets. “It also benefits the community and other livelihoods in the region by addressing the risk to businesses and public safety that fire represents. While this is an important first step for Forico, in the long term we would hope to see technology of this kind covering Tasmania more broadly, supported by public rather than private investment.” The Pano AI cameras’ advanced triangulation capabilities enable precise fire location detection, allowing Forico’s Duty Officer to respond immediately. Operating 24/7, the cameras provide constant surveillance, reinforcing the company’s integrated fire response system, which includes collaboration with the Tasmanian Fire Service and Forico’s team of trained firefighting personnel. Pano AI Head of Australia GTM, Andrew Prolov, said the technology is dedicated to maximising effectiveness in protecting both people and landscapes from the increasing threat of bushfires. "Our AI-powered detection network acts as a force multiplier, providing rapid, accurate fire insights that protect both communities and critical infrastructure. In simple terms, it keeps people out of harm’s way, and in the case of emergency service personnel, allows them to be deployed most effectively,” Mr Prolov said. “Forico’s investment in Pano AI is not just about safeguarding assets - it’s about strengthening the resilience of the entire region to the threat of bushfire disaster.” Broader community and environmental benefits This cutting-edge technology brings far-reaching benefits beyond Forico’s estate. By monitoring residential areas, roads, and national parks, the cameras bolster public safety and protect valuable infrastructure, including proposed clean energy developments in the region. Burnie Mayor, Teeny Brumby, said adopting advanced technology was key to safeguarding natural resources and ensuring the long-term success of critical infrastructure projects. More >> Source & image credit: Forico Safetree: The challenge for 2025 - changing our futureThree people dead, 150 people injured so seriously they need a week off work, and 1100 people hurt badly enough to need a visit to the doctor. That’s the forecast for forestry’s work-related injury toll in 2025, based on the industry’s performance over the five years to 2023.Roughly one in every eight forestry workers will make an ACC claim for an injury that requires a trip to the doctor. Two of the three people forecast to die will be manual fallers. Safety has improved enormously in forestry over the last decade - and congratulations to everyone who’s contributed to that improvement. But that forecasted injury toll for 2025 is a stark reminder that the job’s nowhere near done yet. We still have a long way to go to create an industry where people are protected from serious harm. We can’t change the past, but we can change the future. The industry’s challenge in 2025 is to prove the forecasts wrong – to ensure those three workers spend Christmas 2025 with their whānau and to dramatically reduce the number whose Christmas 2025 celebrations are marred by a serious injury. On that sobering, but important, note, we’d like to thank everyone who supported and contributed to Safetree/FISC’s work in 2024. We are a not-for-profit organisation with a FTE staff of 2.5. So, much of what we achieve is done with the help of industry participants and experts. We greatly appreciate the time, energy and resources you have devoted to this important work in 2024 and we look forward to working with you again in 2025. Source: Safetree SnapSTAT - A big thanks to our SponsorsWe hope you enjoy our regular charts to provide industry insights and thought-provoking ideas. We acknowledge the support of our sponsors who make these updates possible for you each fortnight. Thanks to the teams at Chainsaw Outdoor Power and Oregon!More >> Reduction to Forestry ETS annual charge confirmedThe NZ Government confirmed this week a 50% reduction to the annual charge for forest owners participating in the forestry Emissions Trading Scheme (ETS), Forestry Minister Todd McClay announced. “This decision delivers on the Government’s promise to rebuild confidence in the forestry sector and support its role in achieving New Zealand’s exporting and emissions targets,” Mr McClay says.The decision follows consultation on amendments to the Climate Change (Forestry) Regulations 2022, which proposed to reduce the annual charge from NZ$30.25 per hectare per year to NZ$14.90. “We have been working with the sector to ensure we get the settings right and restore confidence to the over 4,300 forestry participants in the ETS registry,” Mr McClay says. It’s now clear that the previous Labour government made a number of decisions that drove up the cost of this Registry and they expected the forestry sector to pay for their mistakes. “The new charge ensures that forestry participants still pay their fair share of the costs to administer the forestry ETS registry, while not bearing the brunt of Labour’s previous decisions,” Mr McClay says. “The work to bring costs back in line continues and we have started a wider review of cost recovery settings to be completed in 2026. “The forestry sector Reference Group was established to increase transparency across the costs of the forestry ETS registry.” The new annual charge will enter into force in January 2025, with invoicing beginning in February 2025. The amendment to regulations will be notified in the New Zealand Gazette this week. Source: Beehive Hawke’s Bay forestry waste could power renewable energyHawke’s Bay’s forestry waste could be transformed into commercial biofuel with demand for biomass set to grow as the region makes the switch to clean energy. A new report, published by EECA (the Energy Efficiency and Conservation Authority), shows the significant role currently unused forestry residues could play as the region reduces its reliance on fossil fuels. Up to 94% of the region’s energy needed for heat used in the meat, industrial and commercial sectors could be met by local biomass.The Hawke’s Bay Regional Energy Transition Accelerator (RETA) report provides insight and recommendations that will help streamline technology and infrastructure investments for local businesses and energy suppliers and cut carbon at the same time. “ Forestry owners and biomass suppliers in Hawke’s Bay can expect significant demand for wood fuel as the region looks toward new, renewable energy solutions for industrial processing,” said EECA Group Manager Delivery and Partnerships, Richard Briggs.” “Hawke’s Bay is a forestry-rich region with a lot of unutilised wood residue – it is clear there is significant commercial opportunity for forest owners. Locally sourced biomass for industry will be a win-win for the region; creating a market for the product means there will be less residue left on hillsides, increased regional energy security, and a renewable, cost-efficient fuel.” The Hawke’s Bay RETA covers 44 sites which consume 2,117 TJ of energy and produce 121,000 tonnes of CO2 each year – almost exclusively from piped gas. The report shows that those who can transition sooner will reap the benefits given the volatility of gas pricing. “Supporting these installations by 2035 will require small changes to local electricity distribution business (EDB) networks, increasing electricity demand by 23GWh per year, and demand for biomass by 160,000 tonnes per year,” said Briggs. “All of these projects and ongoing energy requirements increase opportunities for employment in the region.” Energy efficiency and demand reduction are key parts of the RETA process – which can lead to significant costs and energy savings alongside addressing the need for grid resilience to support increased electrification in the region. Investment in demand reduction will meet 16% of process heat demands in Hawke’s Bay, saving between $40M and $44M in avoided new electricity and biomass infrastructure. For businesses on the demand side, Briggs noted programmes like RETA help with an increasing expectation domestically and within export markets for cleaner products and services. “Using information from our RETA programme, businesses can prepare for the future understanding the process heat energy and carbon saving opportunities that are in the pipeline both now and beyond 2030.” The report includes input from the Hawke’s Bay Regional Economic Development Agency, Transpower, Centralines, Firstlight and Unison, local biomass suppliers and forest owners, electricity generators and retailers, and medium to large industrial energy users. More >> Source & image credit: EECA Australian illegal logging e-updateThe Illegal Logging Prohibition Amendment Act 2024 (Amendment Act) and associated Illegal Logging Prohibition Rules (the Rules) will come into effect on 3 March 2025.What does this mean for importers and processors? Your due diligence requirements will change on 3 March 2025. Until then, existing requirements remain in place. The Rules will replace the Illegal Logging Prohibition Regulation 2012 (the Regulation) and introduce changes to due diligence requirements. We will provide detailed guidance material to support you under the new arrangements, however it is up to you to understand your responsibilities as an importer or processor of regulated timber and/or timber products/raw logs. The fundamental steps of your due diligence requirements will remain unchanged. This includes a written due diligence system, information gathering, risk assessment, risk mitigation and record keeping. The requirement to respond to a request for information from the department also remains the same. However, there are key changes to some steps:
Look out for guidance material We are developing new guidance material and webpage content to assist you in meeting your due diligence requirements from 3 March 2025. Rest assured; this guidance material will be available to help you when the updated laws come into effect. We will provide updates as this new content progresses. More >> Source: Freight & Trade Alliance Nursery disease threatens NZ forest industryThe New Zealand forest industry is facing one of it’s biggest biological threats ever. The fungal disease Terminal Crook is having a severe impact on forest nursery’s ability to supply their forest clients. The disease has caused several nurseries to lose up to half their crop. It has contributed to the demise of at least one nursery and severely threatened others.Terminal Crook has been a known nursery disease for 50 years, but usually controlled with a fungicide spray program. Four years ago several Central North Island forest nurseries noticed their Terminal Crook (TC) not responding to traditional treatments, and running rampant. The question of “what has changed?” may have been answered recently when Scion scientists observed that the problem fungus had grey spore clusters, and not the known pink fruiting bodies. This may explain why nursery growers suddenly found TC impervious to fungicides, more virulent and more aggressive. This new “strain” is active nearly all year round, whereas the original was only a warm month problem during December to February. This suggests it has the potential to spread throughout the country. The new “strain” appears to be spreading to other nurseries already. The NZ Forest Nursery Growers Assn has funded research to find fungicide solutions, with limited success and still very little is known about the disease. It is now hoped that the forest industry will help fund more research before forest owners are faced with prepared planting sites and no seedlings available. Source: Rotorua Forest Nursery Image credit: NZFFA New media campaign - discover more in NZ forestsIf you’ve been to the cinema recently or watching TVNZ online you may have seen the New Zealand Forest Owners Association's latest promotional campaign “Discover more in forests”.The video campaign, which will run until the end of January 2025, demonstrates how our production forests benefit people, jobs and the environment while providing timber for construction and everyday household items. This campaign is intended to raise the profile of forestry in New Zealand by engaging with the public across a variety of online platforms including social media. It includes a new microsite which gives visitors insight into what’s inside a production forest. This campaign also launches the new Forest Growers New Zealand brand, which we will be sharing more about in the coming months. Source: NZFOA Jobs
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... and one to end the week on... Santa was very cross
Santa was very cross. It was Christmas Eve and nothing was going right. Source: How to DAD 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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