WoodWeek – 1 December 2021

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Greetings from your favourite wood news source. First things first today, looking to 2022 please mark your diary now with our upcoming conferences for the first half of the year:
ForestTECH, 22-23 February
Residues to Revenues, 9-10 March
Environmental Forestry, 10-11 May

This week key players in the forestry industry are encouraged to have their say on the design of a new registration system for log traders and forestry advisors with consultation now open until mid-January. Legislation introduced in 2020 aims to raise professional standards across the forestry supply chain by requiring forestry advisers and log traders to register.

Te Uru Rākau – New Zealand Forest Service’s Director Forestry and Land Management Oliver Hendrickson says the system will provide assurances for anyone dealing with registered forestry advisers that they are receiving expert and impartial advice from people with the right knowledge and experience.

“These changes will also support a more open marketplace for the large number of new forest owners bringing their timber to the market for the first time. They also increase investor confidence in commercial forestry, support long term investment, and meet the broader objectives for land management and climate change."

“We want to ensure the registration system is fit for purpose, practical, and effective which is why we are consulting on its design. Ensuring we have an effective registration system for log traders and forestry advisers will help provide ongoing confidence, openness and certainty across the sector.”

We hope you enjoy this week’s statistic in a snapshot: SnapSTAT. It shows recent trends in export log volumes from Europe to China. Next week we will bring you more details on this. Thanks to our feature sponsors - Chainsaw & Outdoor Power and Oregon for their support.

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STOP PRESS - Carbon price pushes towards $70 - (BusinessDesk) The price of carbon reached $68 in the final auction of the year, exceeding the recent spot price of about $65 on the secondary market.

The fourth and final Emissions Trading Scheme (ETS) auction for 2021 took place on today with no contingency reserves left to increase the volume on offer. The 4.75 million New Zealand Units (NZUs) on offer sold for a clearing price of $68, netting the government $323m.

Between them, 26 participants – of which 18 were successful – made 309 bids for 9.2m units, about twice the number on offer.

The auction was notable because the cost-containment reserve – units held in reserve by the government to try and contain the price – had been exhausted in the prior auction in September when the clearing price exceeded the $50 threshold. NZUs sold for a clearing price of $54.85 in that auction.

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Meanwhile people on the East Coast are expecting a decision this week on a proposed new deepwater logging port. It is one of two East Cape projects vying this week for $45 million in government funding. The outcome could shape one of New Zealand’s most economically-deprived areas for the next 50 years.

According to the developer behind the proposal, the planned facility would take 10,000 logging truck trips off the road, put $22 million a year back into the local community and open up new economic opportunities in tourism, coastal shipping and more. Dave Fermah from Terrafermah is leading the wharf project in conjunction with the Māori owners of the land on which the deepwater port will be sited.

John Stulen
Editor

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MPI consults on registration system plans

Key players in the forestry industry are encouraged to have their say on the design of a new registration system for log traders and forestry advisors with consultation opening late last week. Legislation introduced in 2020 aims to raise professional standards across the forestry supply chain by requiring forestry advisers and log traders to register.

Te Uru Rākau – New Zealand Forest Service’s Director Forestry and Land Management Oliver Hendrickson says the system will provide assurances for anyone dealing with registered forestry advisers that they are receiving expert and impartial advice from people with the right knowledge and experience.

“These changes will also support a more open marketplace for the large number of new forest owners bringing their timber to the market for the first time. They also increase investor confidence in commercial forestry, support long term investment, and meet the broader objectives for land management and climate change."

“We want to ensure the registration system is fit for purpose, practical, and effective which is why we are consulting on its design."

Oliver Hendrickson says the forestry and wood processing sector makes an important contribution to the economy, communities, and the environment.

“These are key aspects of Fit for a Better World, our roadmap for the Food and Fibre sector to drive New Zealand’s recovery from COVID-19."

“Ensuring we have an effective registration system for log traders and forestry advisers will help provide ongoing confidence, openness and certainty across the sector.”

Consultation is open from 26 November through until 17 January 2022.

Find out more about the consultation and have your say at the MPI Website

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Registration for log traders and forestry advisers - Have your say. In 2020, the Forests (Regulation of Log Traders and Forestry Advisers) Amendment Act was passed by Parliament. This Act establishes a Forestry Authority and a registration system for log traders and forestry advisers.

The Ministry of Primary Industries is are seeking feedback on the proposed rules and regulations to create a basic registration systems for log traders and forestry advisers.

Basic registration requirements will establish:
• who is entitled to register
• matters to take into account in the ‘fit and proper person’ test
• initial obligations for log traders and forestry advisers
• processes for complaints and disputes, and information to be displayed on the public registers.

From 6 August 2022, there is a one-year transition period for log traders and forestry advisers to get registered.

From 6 August 2023, it will be an offence to operate as a log trader or forestry adviser without being registered.

More>>

Source: Ministry of Primary Industries


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Decision soon on Hicks Bay port proposal

Decision expected this week on first new port in 100 years - A proposed new deepwater logging port is one of two East Cape projects vying this week for $45 million in government funding. The outcome could shape one of New Zealand’s most economically- deprived areas for the next 50 years.

The planned facility would take 10,000 logging truck trips off the road, put $22 million a year back into the local community and open up new economic opportunities in tourism, coastal shipping and more, according to Dave Fermah whose company Terrafermah leads the wharf project in conjunction with the Māori owners of the land on which the deepwater port will be sited.

“The East Cape area has large tracts of commercial forest reaching maturity, much of it on Māori land, but commercial viability has been hurt by high transportation costs. The port solves this by putting the logs directly onto ships at a direct annual saving of $14 million to the Māori land and forest owners, compared to the barging option,” says Mr Fermah.

In addition to local community gains, taxpayers win too, with savings of $165 million a year as a result of fewer trucks on the road, according to figures from an Opus Consulting report.

Mr Fermah’s project is up against a competing bid that proposes to barge logs to the Gisborne port from a site at Te Aroha just to the west of Hicks Bay. From the barge, logs would then be loaded onto ships.

But this double-handling comes at a significant cost, both economic and environmental, says Mr Fermah. “A barge decision could set the region and its vital forest industry back for 50 years,” he says.

“From a commercial point of view, barging adds costs and provides none of the long-term economic opportunities that a general-purpose deepwater port can open up in the region, he says.

The environmental harm from the barging operation, which seeks to dredge the foreshore and cut into a pristine beach has also led to widespread opposition and protests from the Te Aroha community who are calling for an end to the barging project.

“We need this port project for our communities,” says Allen Weanga who chairs the Potikirua Trust whose land has significant forests.

This week, ministers and Crown Infrastructure Partners will make its decision on which of the two competing bids will receive the $45 million in funding.

More:
Proposed location

Further details

Opposition view

Sources: Scoop and RNZ


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New log ship sets a record

On 10 November Pacific Forest Products Ltd (PFP) completed the loading of the largest log vessel ever to load from Australasia. The Conrad Oldendorff was chartered by PFP’s subsidiary South Pacific Shipping Ltd (SPS) from Oldendorff Carriers with the aim of creating new economies of scale through the port of Tauranga.

The Post Panamax vessels have no ships cranes and so are only now possible utilising the new ISO Stevedoring Liebherr shore cranes. The vessel is 230m long compared to the average logger of 180 m. Combined with a beam width of 38m this vessel loaded twice as much as a standard log vessel.

The cargo of over 60,000 m3 was loaded entirely underdeck and went smoother than expected – especially as this is the first time a vessel such as this has been seen in NZ. It was loaded with an average of 4 “gangs” (4 holds loaded at once) which is better than the standard port average.

Ian Leslie, PFP Operations Manager, said, "This vessel needed the cooperation of the entire supply chain to bring it to fruition.“ From the outset there was a lot of effort to get this project across the line - initially from the chartering brokers Braemar AMC, Oldendorff Carriers and SPS and then with Port of Tauranga and ISO.

Our major forest owner log suppliers were on board with production as they could see the benefits of a large single port loader vessel.” With the efficient and safe loading of the Conrad Oldendorff now completed it is likely that we will see more of these vessels loaded by PFP in the future at ports that have shore crane facilities.

Source: Pacific Forest Products



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CNI Wood Council announces scholarships

Applications for scholarship in wood industry now open – Donelley Sawmillers, Central North Island Wood Council (CNI) and Rotorua Economic Development are taking applications for a newly created scholarship for those who are interested in a future in the wood industry.

This scholarship aims to support a local person through higher education (university) who is focused on developing a career in Rotorua within wood processing and manufacturing and / or wood technology and / or timber design.

The scholarship covers up to $18,000 in study fees over three years and also includes a 4 to 10 week paid summer internship and mentor support.

THE RECIPIENT WILL RECEIVE:
• $6000 a year for 3 years of their degree to help with tuition fees and living costs.
• 4 to 10 week paid internships each summer with a Rotorua-based company within the wood processing, wood technology or timber design industry.
• Mentor support from CNI Wood Council throughout the course.
To find out more about the programme and to apply for the scholarship, visit the link HERE

Applications for this scholarship close on Wednesday 15 December 2021.



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SnapStat - European log exports to China since 2017




Source: Wood Resources International ( Wood Resources Internationalhttps://woodprices.com)


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User feedback is key says John Deere

"John Deere introduced its Series-II Excavator offering to the Australian market over 12 months ago and customers enjoy the power and performance.” Kel Davison, Director for Marketing and Sales, Construction and Forestry Equipment said. The lineup included eight models ready to perform in Australian and New Zealand conditions and to deliver the quality and performance John Deere customers expect.

Through John Deere Customer Advocate Groups (CAGs), engineers and developers engage closely with customers, and respond to their feedback, at key points in the design of John Deere machines so that features and specifications deliver exactly what is needed.

Customers also help evaluate John Deere designs by putting equipment through their paces in a series of in-dirt evaluations. By understanding real-world application, our engineers have the information and insights they need to create a differential edge on John Deere products, and this critical input is the driver behind every comfort, function, and performance feature we produce.

John Deere Senior Vice President Engineering, Manufacturing and Supply Management for the John Deere Construction and Forestry Division, Brian Rauch, said this customer-focused design approach is prioritised and implemented globally, across all products.

“We study customers in our intended markets, apply their feedback to our designs, and define extensive product verification duty cycles based on the requirements they share with us. All Deere engineers, regardless of product responsibility or location of design centre, utilise the same approach, collaborating extensively to ensure we are delivering products worthy of the Deere name.” Mr Rauch said.

Click here to read the full Editorial >>


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OIO approves Mangatarata Forest sale

Ponga Silva Limited, a company owned by German and other interests, has been granted Overseas Investment Office approval to purchase the Tokomaru Bay Forest Estate. The Applicant has applied for consent under the special forestry test relating to forestry activities set out in s. 16A(4) of the Act.

The Applicant is a special purpose vehicle, established to set up a forest investment platform in New Zealand to acquire forestry assets. The Applicant is a wholly-owned subsidiary of a German company.

The Applicant is acquiring a freehold interest in approximately 3,466 hectares of land comprising four adjoining forests (known as the Tokomaru Bay Forestry Estate), including several forestry rights registered over the freehold land.

The land is currently a large scale commercial forest and pastoral farm located in the Gisborne region. The land includes Mangatarata Forest, which contains a sheep and beef farming operation of 841 hectares which will be converted to commercial forestry, with planting expected to occur in 2022. The Applicant plans to hold the Land long term and continue sustainable forest management according to best forestry practices.

The Applicant has identified 26.3 hectares, including a homestead, that it intends to subdivide and sell.

Of the total area (after subdivision) approximately 2,395 hectares will be used for commercial forestry (including 703.5 hectares of new planting). The remaining unplanted land includes native bush and scrub (394 hectares), roads and tracks (104 hectares), and buffer land, set- backs and riparian planting (547 hectares).

Mangatarata Forest (which includes the 841 hectares to be converted to forestry) is a combination of LUC Class 6 (1,116 hectares) and LUC Class 7 (913 hectares).

More>>


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Fish & Game not so game on pines

Fish & Game Supports Calls For Forestry Re-Focus - Fish & Game NZ is supporting calls for an urgent rethink on the rapid proliferation of exotic forests currently being supported by central government, and instead refocus on native plantings for better long-term environmental and social outcomes.

The Native Forest Coalition - comprising the Environmental Defence Society, Pure Advantage, Road Donald Trust, the Tindall Foundation, Project Crimson, Dame Anne Salmon and Dr Adam Forbes - recently released a statement urging a shift away from "short-term thinking and siloed government policy" in tackling climate change.

Central to the Native Forest Coalition’s concerns is current policy favouring carbon sequestering in exotic pine plantations over native forests, which is being driven by high carbon prices. This is having a myriad of adverse impacts.

"While Fish & Game is behind initiatives to address the climate crisis, the current short-sighted focus on securing offshore carbon credits ignores significant long-term environmental and social problems," says Fish & Game spokesman Ray Grubb.

"A very real concern is the effect of pines on instream flows. Research has established rainwater run-off is diminished by up to 40% by pine plantations. Widespread plantings in catchments will be in direct conflict with the Government’s current objectives to improve freshwater. Further, mass sedimentation events when exotic forests are felled have catastrophic impacts on instream biology and water quality."

Plantation forestry has a place in helping meet New Zealand’s climate change commitments, says Grubb, but the proliferation of monoculture pine plantings in recent years has clearly been "out of control" and "ill- considered. Look at what’s happening in the high country where the Department of Conservation and landowners are waging an ongoing and very costly war against wilding pines, which threaten the iconic landscape."

"We fully agree that strategies that are linked together will have far better long-term results for New Zealand, socially and environmentally." Mr Grubb says the Native Forest Coalition’s call for resolving eligibility disparities in the ETS between natives and exotics needs to be urgently addressed.



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Kaituna sawmill capacity upgrade confirmed

OneFortyOne has committed to invest NZ$11 million dollars in its Kaituna Sawmill over the next three years.

General Manager of Kaituna Sawmill Tracy Goss said the NZ$11 million investment consists of three major projects to increase the sawmill’s drying and treating capacity.

“With an improvement in our processing capability onsite, it also means 20 less trucks on the road every month, reducing our emissions by nine per cent annually,” Mr Goss said.

“In the past 10 years the sawmill has achieved a 46% reduction in the site’s greenhouse gas emissions. A suite of environmental improvements has been made, from small to significant. A state-of-the-art biomass energy system and continuous drying kiln installed in 2016 has reduced the sawmill’s carbon footprint by 934 tonnes of carbon dioxide equivalents per year.

“Reducing our footprint by another 265 tonnes annually is significant and a great example of where actively deciding to monitor and invest in reducing our carbon footprint leads to better business and community outcomes. It’s an exciting project and it represents the first major capex investment from OneFortyOne since acquisition of Nelson Forests,” said Mr Goss.

Speaking at the announcement Regional MP Stuart Smith said: “I congratulate OneFortyOne and Kaituna Sawmill for making this significant investment in our region and in New Zealand’s timber industry which will increase supply and create local jobs.”

“The majority of the timber products will be consumed by the local building and construction industry.” The project is scheduled to begin in April 2022.

Source: OneFortyOne



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Call for changed approach in forest wars

Forest scientists say new approaches are needed to address escalating Victorian forest wars - The professional association for forest scientists, growers and managers in Australia has expressed its concern at the escalating Victorian forest wars, saying changes are desperately needed in the way the State’s forests are managed.

Forestry Australia Vice President Dr Michelle Freeman said the escalating situation in Victoria shows the State’s current approach to forest management is simply not working.

“The worsening forest wars in Victoria that have been playing out in the media and in the courts over recent months highlight an untenable situation for state forest management in Victoria,” Dr Freeman said.

“Our communities are being let down and the very health, future and sustainability of our forests is being put at risk by policy failures and lack of decisive Government leadership.

“Two years ago, the Victorian Government announced its policy to end native forest timber harvesting in public native forests by 2030. The Victorian Forestry Plan was pitched as providing a pathway forward for a sustainable future for our forests, renewable timber supply and communities who rely on them.

“However, since the release of the Plan, conflict between the industry and environmental groups has only intensified and there remains no clear vision for the future of our forests.

“It is beyond time for the Government to clearly explain to stakeholders and the community how they will deliver the Victorian Forestry Plan amidst the current media furore, the use of lawfare and broader community concern.

“Genuine and effective dialogue is needed to break the current impasse, and Traditional Owners, whose voices are being drowned out by the acrimony between environmental activists and industry, must be heard.”

Dr Freeman said Forestry Australia, the professional body for forest scientists, managers and growers, strongly advocates for active management, as vital to ensuring the future health and resilience of native forests and the communities who rely on them. “Forestry Australia’s position is that active management, including timber production, is vital to the sustainability of native forests and provides many benefits to Australian society,” Dr Freeman said.

“We need new approaches and a new dialogue around forest management to deliver all forest values, including carbon, biodiversity, water and community needs, such as connection to country, climate change adaptation, fire risk mitigation and local timber supply.

“Our members work in National Parks and conservation agencies, fire services and with multiple use forest managers and we are uniquely placed to help develop landscape solutions to better manage forests.

“We stand ready to work with the Victorian Government to help achieve solutions that secure these outcomes in Victoria’s forests.

“The Government must continue to focus on and be guided by the science, including traditional ecological knowledge, to secure the future of our forests. They must step up with strong leadership that works to break the cycle of forest wars and create genuine change, working with regional communities, to ensure our forests are properly managed for all their values. The very future of our forests depends on it.

“As the only professional association for forest science, growing and management in the country we stand ready to work with Government towards reaching a solution.”

Forestry Australia’s (formerly Institute of Foresters of Australia and Australian Forest Growers) Position Paper on Native Forest Harvesting is available here


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... and finally ... something to laugh about

A judge was interviewing a woman regarding her pending divorce. He asked, "What are the grounds for your divorce?"
She replied, "About four acres and a nice little home in the middle of the property with a stream running by."
"No," he said, "I mean what is the foundation of this case?"
"It is made of concrete, brick, and mortar," she responded.
"I mean," he continued, "what are your relations like?"
"I have an aunt and uncle living here in town, and so do my husband's parents."

He said, "Do you have a real grudge?"
"No," she replied, "we have a two-car carport and have never really needed one."
"Please," he tried again, "is there any infidelity in your marriage?"
"Yes, both my son and daughter have stereo sets. We don't necessarily like the music, but the answer to your question is yes."
"Ma'am, does your husband ever beat you up?"
"Yes," she responded, "about twice a week he gets up earlier than I do."

Finally, in frustration, the judge asked, "Lady, why do you want a divorce?"
"Oh, I don't want a divorce," she replied. "I've never wanted a divorce. My husband does. He says he can't communicate with me."

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A man is recovering from surgery when the head surgical nurse appears and asks him how he is feeling. 'I'm okay, but I didn't like the four-letter word the doctor used in surgery,' he answered.
'Oh, gosh, what did he say,' asked the nurse.
'Oops!'



See you again next week.
Your good wood news team at Innovatek.

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