WoodWeek 18 October 2017
First up, a summary of annual achievements by the researchers at Scion. Chair Tony Nowell said a special highlight of the year was Scion’s partnership with Ngati Whare to co-develop a novel propagation technology for indigenous trees. Now Ngati Whare is using the technology in its new state-of-the-art commercial nursery in Minginui, which will be opening local employment and economic opportunities as demand for indigenous forestry increases. Another highlight of the year were the awards received recognising Scion’s environmentally friendly LigateTM bioadhesive.
We're seeking expressions of interest from potential speakers for our FIEA Woodflow Logistics Conference series running in June 2018 in both Melbourne and Rotorua. The pace of technology change is rapid just now in both transport and logistics technologies. Technologies from other industries can be valuable when applied to forest industries. Electric vehicles and vehicle tracking spring to mind. Watch this space for more exciting developments.
Next, it’s important we acknowledge when forestry people receive positive coverage in the mainstream media. So, it’s pretty neat to see the winner of this year's Northland Wood Council’s Trainee of the Year, Michelle Harrison get excellent coverage in the Northern Advocate. Michelle takes health and safety very seriously. She lives in rural Okaihau with her family and has always worked with her husband, Nigel in the bush. Two years ago the couple started their own logging crew, Wise on Wood.
This week we have the latest log and lumber export reports for you to view. Most notable changes for year-to-date 2017 vs 2016: New Zealand’s log export values are over 20% up. For the same period, log export values to India are down by 39%.
Finally, a new research report commissioned by Forest and Wood Products Australia (FWPA) examines key investment aspects across sawmills, panel plants and plywood operations.
This week we have for you:
Scion annual report releasedLast week, Scion issued its annual report for the 12 months ending 30 June 2017 presenting a successful year for the Rotorua-based Crown research institute.
Chair Tony Nowell says Scion’s 70-year legacy of delivering science impact gives the institute the confidence to think boldly about the future. “We firmly believe in forestry. Indeed, we see the power of trees as a renewable resource, coupled with our science capabilities, meeting the market needs of a low-carbon bio-based economy. “I am excited by Scion’s unique contribution to shaping a truly sustainable future for New Zealand. In our annual report, we are proud to present some of the past year’s achievements that are stepping us towards our vision as we help unleash the power of forestry to deliver prosperity from trees.” Mr Nowell said a special highlight of the year was Scion’s partnership with Ngati Whare to co-develop a novel propagation technology for indigenous trees. Now Ngati Whare is using the technology in its new state-of-the-art commercial nursery in Minginui, which will be opening local employment and economic opportunities as demand for indigenous forestry increases.
Another highlight of the year were the awards received recognising Scion’s environmentally- friendly LigateTM bioadhesive. In a world first, the Scion bioadhesives team developed 100 per cent bio-based adhesives and resins that could replace formaldehyde-emitting adhesives.
Made from natural sources, including forestry and agricultural waste, these bioadhesives and resins are petrochemical-free, have very low formaldehyde emissions and can be made and used in existing manufacturing operations. With an increasing interest in sustainable alternatives in the global wood adhesives market the opportunity for this environmentally friendly glue to become commercially successful is very promising.
Michelle is Northland's trainee of the yearMichelle Harrison takes health and safety in the forestry industry very seriously.
The 35-year-old, who won Trainee of the Year at this year's Northland Forestry Awards, also looks out for kiwi during log harvesting.
She lives in rural Okaihau with her family. She has always worked with her husband, Nigel, in forestry, and two years ago the couple started their own logging crew, Wise on Wood Ltd.
Husband Nigel said it's a balancing act for Michelle.
"Since joining the business Michelle has found time to concentrate on her own personal development and qualifications," he said.
"That's no mean feat considering she works full time, looks after me and the boys, does the bookwork, runs the health and safety programme and still helps out in the community.
"Michelle is our rock when it comes to health and safety. She spends endless hours at night researching and keeping up with others discoveries and misfortunes in the industry. This is a real asset in our crew," he said.
Michelle said being a female in the forestry industry was not always easy and to receive the Trainee of the Year award was recognition for the hard work she had put in over the years.
Her training is ongoing and she recently completed her Level 3 National certificate in business. In 2016, she was appointed a contract assessor for the industry training organisation for forestry, Competenz.
Source: The Country
Champion Freight Export ReportThanks to the great team at Champion Freight we have the latest log and lumber export reports for you to view.
Quick summary for year-to-date 2017 vs 2016: China - Year on year (YoY) log export sales values are over 20% up
India - YoY log export sales are down by 39%
South Korea - YoY log export sales are down by over 20%
Japan - YoY log export sales are down by over 40%
Quick summary for August 2017 vs Aug 2016:
China - Log export sales are up 24%
India - Log export sales are down 14%
To see the full report on log exports click here
Source: Champion Freight
FWPA report on sawmill investmentsAustralian sawmillers invest $900m in industry future – despite growing log supply shortfall - Australian saw millers and associated manufacturers have invested an estimated $900 million over the last five years in efficiency and productivity initiatives on the back of strong demand for timber fuelled by the booming housing market.
The investment comes despite uncertainty around the future availability of logs to process, with Australia’s sawn wood production set to fall increasingly short of demand – the deficit in sawn timber is likely to rise from a predicted 1.1 million cubic metres in 2025 to 2.7 million cubic metres in 2045.
These were among the findings of a new research report commissioned by Forest and Wood Products Australia (FWPA) examining the sums invested, areas of investment and benefits sought across softwood and hardwood saw millers, panel plants and plywood operations.
The data in the report by Omega Consulting shows a combined total of $473 million was invested between 2012 and 2017 by the operations surveyed – implying total investment across the entire industry of approximately $938 million.
Anecdotal stakeholder feedback suggested conditions are currently buoyant, thanks to the booming Australian housing market, and the industry’s significant expansion capacity is being recognised.
Jim Houghton, Statistics and Economics Manager of FWPA, welcomed the investment, and said technology could help industry to increase the amount of sawn timber produced from the same volume of logs, and boost the use of residues to form new and innovative materials.
“The analysis demonstrated investment is healthy and a definite priority within the industry. This level of investment can only mean positive things for the future of our industry. The anecdotal feedback from processors also suggests more could be done if there were greater certainty around future log supply,” he said.
“The uncertainty over future log supply can be attributed to the limited expansion of the softwood plantation estate during the past 20 years and resultant static availability of softwood sawlogs. Concurrently, the availability of hardwood sawlogs has declined as access to the native forest has been reduced.”
Omega Consulting CEO Peter Zed said the predicted deficit in sawn wood was due to increasing demand driven by predicted population growth.
“A whole-of-industry approach is needed to address supply issues, reduce the deficit, and help prevent it from causing a significant barrier to future investment,” he said.
“Both sawmill efficiency and productivity need to be increased if we’re going to reduce the log supply deficit and inspire industry stakeholders with the confidence they need to make optimum investments."
"This can be achieved through an increased focus on product niche and dedicated R&D around technologies to increase recoveries.”
The report FWPA Australian Timber Industry Investment Review can be read in full at http://www.fwpa.com.au/
Woodflow Logistics Conference 2018: Call for speakersExpressions of interest are being sought from presenters for next year’s Woodflow 2018 technology series. It’s being run in June next year in both New Zealand and Australia by the Forest Industry Engineering Association (FIEA).
What is it?
The Woodflow series is Australasia’s premier technology event run every two years. It provides insights into innovations and new tools being developed and employed by leading forestry, wood products and transport companies.
The objective, with 30% – 40% of delivered log costs being contributed by transport, is to profile the very latest technologies for moving wood from the forest through to the log yard, processing plant, port or market. New initiatives and operating practices being employed to improve planning, logistics & operations within the wood supply chain are also showcased.
The FIEA event is run every two years. It’s run in both Australia and New Zealand. In 2017, the wood harvesting event, HarvestTECH, was sold out. Over 450 logging contractors, forestry managers and key suppliers attended. It was the largest event of its type yet seen in New Zealand.
In September 2016, over 250 harvesting contractors, wood transport operators and planners attended FIEA’s Wood Flow Optimisation event. The 2018 event will be building on the success, momentum and feedback that's been provided by the industry over the last two years at both of these events.
What’s being covered?
- Effective tools, models and case studies for collaboration through the wood supply chain
- Remote sensing and real-time tracking of logs and wood products
- Innovative systems to integrate planning, operations, harvesting, transport & sales
- Advances in automated measurement, materials handling, packaging and distribution
- New innovations around log and wood product handling, trucking, rail and shipping
- New mobile communications and data transfer technologies for local operations
- Developments in information technology and data management
- Opportunities using robotics, automation, augmented and virtual reality, machine learning, telematics and UAV’s
- Health and safety initiatives around forestry and wood transport operations
- Resolving key skills and labour shortages
- International models adding value to supply chain management.
If you have a new technology, are currently undertaking research in this area, can recommend a topic or a speaker that you think would really add value to the event or have an interesting case-study that showcases just how efficiencies have been improved within the wood supply chain, please make contact with [email protected] before Friday 3 November.
FSC global meeting: True value of forestsDiscussions on the future of global responsible forestry under way at FSC General Assembly are underway among the 800 delegates from more than 80 countries.
A broad range of vital topics that will have a profound impact on the future of responsible forestry was discussed by delegates attending the second day of the triennial global General Assembly of the Forest Stewardship Council (FSC), the world's leading forest certification organisation.
Approximately 800 delegates from more than 80 countries are at the meeting which will shape the way FSC enhances responsible forestry practices worldwide to promote sustainability and conservation, while permitting forests to continue to supply the vital products the world depends on for many purposes.
"We are having very productive and stimulating discussions on the crucial issues that we face as we set the course for FSC for the coming three years," said Kim Carstensen, Director General of FSC. "I am very confident we will end our Vancouver General Assembly with a constructive way forward on the challenges we face in ensuring the world's forests are managed responsibly and at the same time meet multiple goals and needs."
The General Assembly's three-day High Level Forum sessions began with a discussion on "The true value of forests," with three expert speakers outlining the full contribution of forests to society. Among these Peter Lantin, President of the Haida Nation, who gave a powerful speech outlining the importance that responsible forestry has for his community. Dr. Sadanandan Nambiar, Honourary Fellow of the Forest Ecosystem Science Group, outlined the importance of forestry to develop rural communities and empower women. Finally, Per-Olof Sjoo, President of the Global Union Federation of Building and Woodworker International highlighted the benefits of industrial timber building.
New approaches for smallholders - FSC is not just about large forest holders. One of the meetings gave an update on new approaches with holders of small forests in all regions of the world to learn about issues they care about and capture first-hand information about what's missing, what they'd like to be able to do, and why they're unable to do those things with existing standards and services. The most current findings, latest developments and the FSC action plan on smallholder certification were shared with delegates.
FSC also presented to delegates new tools it has developed to help answer the challenge of enhancing responsible forest practices on a global scale. These new tools aim to increase the confidence of governments, investors, buyers and businesses in ecosystem services markets, and can be used to demonstrate the impact that investments have on preserving ecosystem services. They will offer non-certified forest owners and managers an additional incentive to become FSC- certified rather than pursue the short-term economic benefits of forest degradation, as well as an added economic support for those already certified.
The General Assembly continues with further informational sessions October 10 and 11 before moving on to members' assembly meetings October 12 and 13, at which a variety of different resolutions will be debated and voted on. The FSC and GA structure maintains the balance of voting power among different interests, ensuring effective, consensus-based solutions for forest management and the trade of forest products.
Commerce commission update on Daiken/DongwhaStatement of Preliminary Issues released for Daiken/Dongwha - The Commerce Commission has published a statement of preliminary issues relating to the proposed acquisition of Dongwha New Zealand Limited by Daiken New Zealand Limited.
The statement outlines the main issues the Commission considers important in deciding whether or not to grant clearance to the proposed merger.
The Commission invites submissions from those who consider they have information relevant to our consideration of the proposed merger. Submissions can be sent by email to [email protected] with the reference Daiken/Dongwha in the subject line. Any submissions should be received by close of business on Thursday 2 November 2017.
The Commission is currently scheduled to make a decision on the application by 30 November 2017. However, this date may be extended as the investigation progresses, and in particular, if we need to test and consider the issues identified further.
The statement of preliminary issues and public version of the application can be found on the clearances page.
Background - Daiken is the New Zealand subsidiary of Daiken Corporation, a Japanese company specialising in the manufacture and supply of wood-based construction materials. In New Zealand, Daiken manufactures and supplies medium density fibreboard (MDF) from a plant it operates in North Canterbury.
Dongwha is 80% owned by Dongwha International Co., Limited (a company incorporated in Hong Kong) and 20% owned by Laminex Group (N.Z.) Limited. In New Zealand, Dongwha manufactures and supplies MDF from a plant it operates in Southland. Its minority shareholder, Laminex (which is part of Fletcher Building Products Limited), purchases MDF from Dongwha for its own wood products business in New Zealand. Laminex also on-sells some of the MDF it purchases from Dongwha to other parties.
Documenting Taitokerau Forests successA Maori development company with a one-off, 30-year forest rotation under its belt is basking in outstanding success but shutting up shop at the same time.
Last Friday, Taitokerau Forest Ltd (TFL) directors released a mission-accomplished report about the company set up in 1986 to enable Northland Maori landowners to develop forestry.
TFL chairman Rawson Wright then led a discussion about where-to-from-here for the scheme that provided sustainable land use and incomes in remote corners of Northland where otherwise there was little opportunity.
"Once all the forests have been harvested the door is closed on this 30-year company," Mr Wright said.
Another injection of funding or joint venture investment is now needed to capitalise on the momentum and infrastructure TFL set up. That would pay for a second cycle of planting, wages, forest maintenance and ultimate harvest.
In its 30 years, TFL had repaid its initial, drip-fed $31m loan government loan and interest, to the value of $61 million, while paying for forestry development, management and wages on 14 Maori-owned blocks, totalling 4300ha.
The company made a return of $11m for its shareholding landowners, with TFL itself taking no residual profits.
As well as that return and $27m put into infrastructure and skills development, direct benefits included jobs, associated contracts and a guaranteed domestic timber supply (around 23 per cent of total tonnage from the blocks).
Full time work hours chalked up equalled 66.5 full-time local jobs - or to mirror forest rotation terms, 29 full-time workers for 34 years continuously.
Less direct benefits were economic, employment and social development in remote, under-resourced communities, business and governance experience and a reduction in dole dependency.
Accountant and TFL director Warwick Syers said the model enabled 'the most pure and economical development you can have on undeveloped land that is not being used.'
Some benefits would endure long after the scheme is wound up, the report by Business and Economics Research Ltd (BERL) said.
Source: Northern Advocate
Timely report on forestry R&D in USAIndependent commission in USA recommends new approaches to forest sector research - Report details changes needed to focus direction, advance forest health, and rebuild nation’s competitiveness
A report just released by the Commission on Forest and Forest Products Research and Development in the USC) for the US Endowment for Forestry and Communities (Endowment), calls for changes in the way forest and forest products research is addressed.
“After more than a year of study and deliberation, five members of the commission team have completed their work and released their findings,” said Endowment President & CEO Carlton Owen. “On behalf of the Endowment and all who are concerned about the health and productivity of our nation’s precious forests, as well as the myriad benefits they provide from drinking water to vital wood and paper products, we want to thank the members of the Commission for their hard work and insightful recommendations.”
Among the report’s findings are that forest sector R&D in America is unfocused and underfunded. To address shortcomings the BRC recommended changes and enhancements to spur innovation including:
2. Institution of a new model where federal scientists serve more as team leaders engaging privatesector, university, and federal researchers to increase speed, flexibility, and delivery of needed solutions.
“The timing of this report is perfect as the Administration is highlighting the importance of natural resources to achieve rural prosperity. Forest and forest products research and development are key to achieving that vision,” said Ann Bartuska, Vice President for Land, Water, and Nature Programs at Resources for the Future.
Parengarenga 3G Trust defraudedOwners of Maori land lose Trust money to fraudsters - A brother and sister have been charged in relation to a Serious Fraud Office (SFO) prosecution.
Stephen Henare (60) and Margaret Dixon (59) face Crimes Act charges of ‘Theft by person in special relationship’ in relation to their roles as trustees for the Parengarenga 3G Trust. Mr Henare faces six charges while Ms Dixon faces five charges. Mr Henare appeared in the Auckland District Court today and has been remanded on bail. Ms Dixon failed to appear.
Parengarenga 3G is a 500+ hectare forestry block of Maori land located in the Taitokerau District in the Far North. The Parengarenga 3G forest is managed by the Parengarenga 3G Trust.
In June 2012 the defendants and five others were appointed as Trustees of the Parengarenga 3G Trust, in place of the Maori Trustee.
In August 2012 approximately $1.1 million, intended primarily for the management of the land and the forest for the benefit of the owners, was transferred from the Maori Trustee to the Parengarenga 3G Trust bank accounts. A further $54,480 was also obtained by the Trust from the sale of carbon credits.
BC log exporter sues over shipment gone badBritish Columbia log exporter sues Chinese owned supplier over bad shipment, failure to pay federal deductions - British Columbian log exporter Northcrest Energy Corp is suing the BC subsidiary of a Chinese company over allegations the company duped the exporter into financing its operations to supply logs to a customer in China and delivered inferior product.
In a statement of claim filed with the Supreme Court of BC in New Westminster, Northcrest president Baljit Gill said representatives of the supplier, Richmond- headquartered Canada Forest Industrial Group Ltd., led her to believe that it was a substantial company with deep financial resources.
In August 2016, Gill said in the statement that she signed a contract to buy logs from Canada Forest for export to a company in China in a transaction that would see Northcrest pay Canada Forest’s employees and subcontractors for credits toward the purchase.
Under those terms, Gill said in the statement that she paid $3.2 million for payroll and camp services, but hasn’t received credit for that.
The logs were delivered to the port at Stewart for shipment overseas, according to the statement, however Gill said the order failed to meet the customer’s quality requirements, which Canada Forest has been unable to correct.
“Over the past months, it became increasingly apparent to Ms. Gill that (Canada Forest) et al. were not capable of fulfilling the contract that they had signed without her financial and management assistance,” according to the statement of claim.
In the statement, Gill said federal payroll deductions for Canada Forest’s employees and contractors had not been made and the Canada Revenue Agency subsequently seized Northcrest’s bank accounts as a result.
Gill, in the statement, is alleging that Canada Forest, along with a group of companies and their directors committed fraud against Northcrest through misrepresentations and argued that their intentions “were to avoid meeting their contractual and statutory obligations while unjustly enriching themselves.”
Source: Vancouver Sun
Safety Alert: Load CrowningThere have been a few log loads entering the Oji Fibre Solutions log yards that are not properly crowned when loaded. When logs on the top of loads do not have contact with a chain they are able to slip out. This creates a significant hazard or risk.
Download the PDF Safety Alert
Buy and Sell
... and finally ... the pace of technology
While trying to explain to his six-year-old daughter how much technology had
changed, a father pointed to their brand-new personal computer and told her that
when he was in college, a computer with the same amount of power would have
been the size of a house.
Later, the parents pulled their daughter aside and confessed their concern. "Dear," said the mother diplomatically, "he doesn't seem very nice."
"Oh please, Mum," replied the daughter, "if he wasn't nice, why would he be doing 500 hours of community service?"
Have a safe and productive week.
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