THE trucking industry – the vital link that ‘carries’ the $22 billion forest and the wood manufacturing sectors – is toughening its campaign against the planned extension of the carbon tax which it says would cripple many trucking businesses.Speaking at the annual JIV Hoo-Hoo convention in Mount Gambier, SA, last week, Australian Trucking Association CEO Stuart St Clair said the tax would penalise an industry already spending millions of dollars on clean energy practices.“The trucking industry has embraced new technology
including the use of Euro standard engines since 1996 – and we’re now on Euro 5 engines which are the cleanest in the world,” Mr St Clair said.
“It costs the industry many hundreds of thousands of dollars a year to upgrade to
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Cont Page 3
‘Carrying’ forest and wood sector on the road to recovery
In for the long haulon carbon tax fight
• Queensland loses giant of industry• Snags already in EUTR regulation
Hoo-Hoo convention a brilliant success• TCA in ‘caretaker’ role• Rush to hoard Burmese teak• Energy opportunity for wood waste• US housing revival drives up imports
THis issuE
Trucking industry campaign in top gear
Pushing the pedal .. trucking industry to fight carbon tax
Timber Communitiesin ‘caretaker’ role onforest peace processAFPA to review operationsMORE pressure on Tasmania’s Forest Agreement process is likely now that one of the signatory groups has gone into ‘caretaker’ mode.The board of Timber Communities Australia met on April 9, and in advice to branch presidents, the chairman Trevor Richardson said the board had accepted a proposal from the Australian Forest Products Association to fund a wide ranging review of TCA to “determine a viable future business model”.A consultant will be appointed by AFPA to engage with all stakeholders including members and branches to explore options for future structure, operation, and funding.TCA is understood to have sought funding assistance from AFPA.While it is not possible to predict the outcome, options could include winding TCA up or proposing some new structure under a new constitution.Under the circumstances, the board of TCA sees its role in the interim as effectively that of ‘caretaker’ for the duration
of the Tasmanian Forest Agreement review, which is expected to be completed by June 30.Most Tasmanian TCA branches and members were not happy with the Tasmanian Forest Agreement, and voted against TCA signing the agreement at state-wide meetings late last year.These meetings and the vote took place after the board had already agreed to sign the deal. The board decided to meet again and it decided for a second time to support the deal.A number of branches around the state are understood to have since moved and carried motions of no confidence in the board. These were discussed at the recent board meeting.As the review will potentially result in TCA adopting a new constitution and appointing a new board, it is the current board’s suggestion that Tasmanian members participate actively in the review in order to shape the outcome. It is believed none of the existing board members will seek re-election.
Bill Brett member of timber dynastyAN endeared member of the Brett timber dynasty Bill Brett snr has died, aged 89.He was the nephew of James F. Brett who with is brother B.C. Brett and Colonel J.E. Christoe founded the company in 1913 on the present site of the Bretts Timber and Hardware store at Windsor in Brisbane. Bretts started by buying and selling timbers mostly milled in the Mary Valley area of Queensland.Historically, Bretts has been timber-based and the company’s Inglewood cypress sawmill is still a major
component of the businessJ.F. Brett outlived his two partners and was the managing director until his death in 1966, aged 83.Third generation family member Bill Nutting jnr now heads the company.Bill Brett snr is survived by four sisters and two sons, Bill and Ian and their children.The service will be held on Wednesday, April 24, at Centenary Memorial Gardens 353 Wacol Station Road Sumner.Tributes, next issue.
these improved standards. We embraced low sulphur diesel during 2005-2006 in support of the government’s move to reduce pollutions put out by diesel engines.“This costs truckies another 2c a litre for every litre of diesel they buy – and that amounts to eight billion litres a year, so add that up.”In its Clean Energy Package, the federal government says the fuel used by the trucking industry will not be subject to the carbon tax until mid-2014. The government’s plan is that it would then reduce the fuel tax credits that trucking operators can claim by almost 7c a litre in the first year.“That’s a 27% tax hike,” Mr St Clair said. “It would cost the industry more than half a billion dollars a year, a massive shock for many trucking businesses that would not be able to respond.”He said the Clean Energy Package was based on the assumption that businesses would respond to the carbon tax by reducing their use of energy or switching to renewables. It assumed that businesses that could not do this would be able to increase their prices. This would, in turn, change their customers’ behaviour.“Neither of these assumptions fit the commercial reality of the trucking industry,” Mr St Clair said.“Trucking businesses only have limited opportunities to reduce their energy use; switching to renewables is not generally an option.“The government projects that the use of biodiesel will increase rapidly from the end of the decade, and that it will be the dominant transport fuel by 2030.“But the carbon tax on trucking
would take effect in 2014, not the end of the decade. “Biodiesel blends are rarely available, and gaseous fuels like LNG are not usable for long
distance operations.
“So businesses are left with trying to pass on the carbon tax.”
Mr St Clair said 72% of trucking
businesses had only one truck. They were price takers, not price makers. Their customers would tell them to absorb the cost. The pace of businesses leaving the industry would increase.
“This would be a tragedy for the people involved. It would also reduce the industry’s overall flexibility and productivity,” he said.
“Instead of making life more difficult for small trucking operators, the government should make an election commitment not to extend the carbon tax to trucking.
“It should focus on developing a road funding and planning system that would enable the industry to use more productive vehicles that use less fuel to do the same job.”
Mr St Clair said the Australian Trucking Association would continue to focus on increasing the industry’s safety, professionalism and viability under it 2013-2015 strategic plan.
Actions set out in the ATA plan aimed to increase the industry’s safety with work on the heavy vehicle national law and best practice standards through TruckSafe.
“We will need to focus on lobbying the state and territory governments to sign up to the heavy vehicle national law with as few changes as possible, which will deliver safety benefits and reduce the compliance burden on operators over time,” Mr St Clair said.
“I think we should recognise the state governments have been very proactive in this area, and that there are expected to be very few variations in the way the laws are implemented between states.”
government must help industry toproduce more productive vehicles
INDUSTRY NEWS
From Page 1
Doug Howick of Melbourne Hoo-Hoo Club 217 (left) presents a radiata pine bowl to VIP convention dinner speaker Stuart St Clair.
‘Instead of making life more difficult for small trucking operators, the government should
make an election commitment not to extend the carbon tax to trucking’ – Stuart St Clair
New president of Hoo-Hoo International Jurisdiction IV – Australia, New Zealand, Malaysia, Indonesia and South Africa – Pieter Verlinden (right) meets up with a former HHI president Andy Blackwell of Bendoura Trading Pty Ltd, life member of Melbourne Hoo-Hoo Club 217, and Doug Howick, Norton Ladkin Fellowship chairman and Club 217 life member. Report Pages 12-14
World leaders in wood processing‘game-breakers’ at industry expos
EVENTs
Business-to-business sessions at Australia, NZ eventsWORLD leaders in wood processing, manufacturing and new product technologies will converge on Australasia in September.The major draw card is this region’s first ‘business-to-business’ wood industry show, WoodEXPO 2013, which will be held in Albury, NSW, from September 3 to 5.The second event in the series will be run for New Zealand wood products companies in Rotorua the week after from September 11 to 13.“The objective of the new expo is to provide local companies – management as well as production staff – with exposure to new technologies that can improve their own efficiencies and productive capability,” Forest Industry Engineering Association director Brent Apthorp said.“By running the two expos over a short two-week period, leading technology providers from Europe, North America and Asia can join in with each of the main equipment and product suppliers from New Zealand and Australia.“It ensures local companies are accessing the very latest developments and the international technology providers participating in the event can maximise their time whilst in this part of the world.”It’s no secret that the Australasian wood products industry has seen better days. The industry has been hammered by commodity pricing, exchange rate fluctuations, supply problems and competition in key markets from other major wood producing nations. One of the industry’s main challenges is to transform its value chains and improve its market position and returns through quality, diversification
and the application of innovation.Clearly, current thinking needs to change.True innovation though is doing more than just R&D. It’s about exploring innovative approaches to new product development – from how the technology is being commercialised and transferred to industry, to how we’re producing and marketing our wood.As part of WoodEXPO 2013, a one-day wood processing summit has been designed to encourage senior managers to ‘think outside the square’, to look at global technologies that have the potential to provide a ‘step change’ to what we’re producing and how we’re processing our wood resource.The wood processing summit will be exploring strategies for future growth and, rather than small incremental steps for improving
processing efficiencies, it will be exploring the true ‘game-breakers’ that could make a significant difference to the future profitability of local companies.
Examples of technologies that have the potential to change the shape and operation of the industry include 3D printing, automation and robotics in
manufacturing; CT scanning for
log and lumber optimisation;
innovative new building and
construction systems; and a new
super wood-based material,
nanocrystalline cellulose,
projected to become a $US600
billion industry within the next
eight years.
3D printing (also known as
additive manufacturing) is
the process of making three
dimensional solid objects from
digital models, currently a hot
topic in manufacturing.
In US President Barack
Obama’s recent State of the
Union address, he referred
to 3D-printing as “having
the potential to revolutionise
the way we make almost
everything”. Advances in
computer programming, 3D
printing and robotics have
opened the door to exciting new
architectural forms made from
lightweight composite materials
such as carbon fibre, fibreglass
and Kevlar.
The race is currently on to build
the first 3D printed house within
the year and it provides real
opportunities to local companies
to diversify their current
manufacturing operations.
The wood processing summit in
September will provide a special
gathering for a very special
three-day event, WoodEXPO
2013.
Full details on the expo, summit
and technology workshops
are available on www.
woodexpo2013.com
A $US600 billion industry in the making .. Pierre Lapointe, president and CEO of FPInnovations, Canada, Jean Moreau, president and CEO of CelluForce, and John D. Williams, president and CEO of Domtar, inspect the world’s first nanocrystalline cellulose demonstration plant at the Domtar pulp and paper mill site in Windsor, Quebec.
Wood processing summit has been designed to encourage senior managers to
‘think outside the square’, to look at global technologies that have the potential to provide a ‘step change’ to what we’re producing and
WHAT’S ON?Australia’s forest, wood, pulp and paper products industry now has a stronger voice in dealings with government, the community and in key negotiations on the industry’s future, as two peak associations have merged to form a single national association.
The Australian Forest Products Association (AFPA) has been formed through the merger of the Australian Plantations Products and Paper Industry Council (A3P) and the National Association of Forest Industries (NAFI).
AFPA was established to cover all aspects of Australia’s forest industry:
- Forest growing; - Harvest and haulage; - Sawmilling and other
wood processing; - Pulp and paper processing; and
- Forest product exporting.
For more information on the Australian Forest Products Association (AFPA) or to enquire about membership , please call (02) 6285 3833.
APRIL 201320-23: New Zealand Farm Forestry Association 57th annual conference. Orewa Arts and Events Centre, Auckland. www.nzffa.org.nz/conference
22: UNECE/FAO/InnovaWood seminar on innovation in the Forest sector. Palais des Nations, Geneva, Switzerland. Visit www.unece.org/forests.html
22-24: EPAN and WoodSolutions Christchurch, NZ field trip. Review of review timber structures being used as a part of the rebuilding of the city. Open to New Zealand’s quake-hit city. Open to architects, engineers, project managers, developers and building owners. Contact Jane Letteri on1800 685 519 or email: [email protected]
23-25: 35th Session Joint FAO/UNECE Working Party on Forest statistics, Economics and Management. Palais des Nations, Geneva, Switzerland. www.unece.org/forests
MAY5-9: World Building Congress 2013. Brisbane Convention and Exhibition Centre. Triennial congress will focus on the relationship between construction and society. How can research help to maximise the contribution of constructed assets to social goals? How will the research community meet emerging social needs? Visit www.worldbuildingcongress2013.com
16-21: 3rd international Congress on Planted Forests – Lisbon, Portugal. The congress aims to investigate the contribution of
planted forests to sustainable development in the context of global changes. Topics will include the sustainability of planted forests, changing climates and the future role of planted forests in environmental protection and REDD+. Five of the major European Atlantic countries (Spain, France, Ireland, UK and Portugal) with large areas of planted forests have joined forces to organise this congress under the coordination of the Atlantic regional office of the European Forest Institute and the UN Food and Agriculture Organisation. Deadline for abstracts is February 28.
Visit www.efiatlantic.efi.int
JuNE15: Melbourne Hoo-Hoo Club 217 50th anniversary dinner (venue to be advised). Contact: Trish Waters on 0418 358 501. Email:
AugusT6-9: AWISA 2014 Exhibition. Brisbane Convention and Exhibition Centre. The Australian Woodworking Industry Suppliers Association Ltd has decided that the exhibition will move from Sydney to Brisbane next year. Inquiries about booking space: email [email protected] or call Geoff Holland on 0412 361 580
23: The Cat goes gold.Brisbane Hoo-Hoo Club 218 50thanniversary celebration. BrisbaneRiverview Hotel, Cnr KingsfordSmith Drive and Hunt Street,Hamilton, Brisbane. Tel: 0401 312087 or 0428 745 455 for bookings.
SEPTEMBER3-5: WoodEXPO 13 – Albury, nsw.
11-13: WoodEXPO 13, Rotorua, NZ. World leaders in wood processing, manufacturing and new product technologies will speak at the region’s first ‘business-to-business’ wood industry show. The new expo will provide local companies – management as well as production staff – exposure to new technologies that can improve their own efficiencies and productive capability. Leading technology providers from Europe, North America and Asia will join with each of the main equipment and product suppliers from New Zealand and Australia. Full details on the expo, summit and technology workshops are available on www.woodexpo2013.com
DECEMBER 4-5. Focus on improving transport and logistics in the forestry sector. It will build on the excellent program designed by the Forest Industry Engineering Association.Visit www.foresttechevents.com
AugusT 20146-9: AWISA 2014 Exhibition.Brisbane Convention and ExhibitionCentre. The Australian WoodworkingIndustry Suppliers Association Ltdhas decided that the exhibition willmove from Sydney to Brisbane nextyear. Inquiries about booking space:email [email protected] or call GeoffHolland on 0412 361 580
CRAFTSMEN from Tasmania’s speciality timbers industry say the forest peace deal could sound the death knell for their sector.They say an artificial and inadequate ceiling on timber production is not backed by research and a $70 million industry and more than 2000 jobs are at stake.The figure of 12,500 cub m of timber has repeatedly been quoted as being enough for the state’s renowned fine furniture, home construction, flooring, woodcraft, boat-building, musical instruments and joinery – but nobody is able to identify how the figure was established.It is a significant reduction on the 22,390 cub m cut in 1999-2000 and the 13,800 cub m in 2006-07.The plight of the timber industry in the Huon region under the flawed forest peace deal process is being emphasised by the Huon Resource Development Group.The group supports the warning raised by the Tasmanian Special Timbers Alliance that the areas set aside under the proposed agreement for special timbers harvesting do not contain sufficient wood of
appropriate quality, species mix and age profile to support a viable industry.President George Harris said his group condemned the agreement and the Bill that was currently before the legislative council.“Almost all of the previous special timbers zone in the southern half of the state has been sought for new reserves
under the peace deal, and most of that is included in the nomination to extend the Tasmanian Wilderness World Heritage Area,” Mr Harris said.He pointed out that not only is the special timbers zone affected, but so is a significant area of highly productive state forest that has been harvested several times and regenerated over the last 140 years.
“This area includes the former timber leases of Henry Jones IXL which were active over a 100 years ago, and the Heather family leases, which were being harvested during World War 2,” Mr Harris said.“The trading ketch May Queen spent many decades bringing timber from these areas to Hobart, and cable logging is still occurring in these working forests.“However, the new reserves proposals want to claim this area right back to the shack sites and private property on the edge of Recherche Bay. The area contains thousands of hectares of plantation and regenerated native forest, and millions of dollars’ worth of investment in forestry roads.“It is also home to the Ta Ann rotary veneer mill, the Neville Smith hi-tech saw mill, Forestry Tasmania’s Island Specialty Timbers depot and many smaller sawmills.“This flawed deal will affect the viability of them all.”The Huon Resource Development Group and at least a dozen other groups and individuals are challenging the
Craftsmen fear agreement couldbe death knell of special timbers
TASMANIAN FOREST AGREEMENT
Cont Page 7
Craig Howard of Heritage Furniture says he was finding it hard to find timber even before the forest peace deal. “Tasmania is world-renowned for what we do with our fine timbers,” he said. “If the government doesn’t let us have the amount we need, the whole industry will be stuffed.” The bulk of the special species timbers cut under the expected quota will be blackwood, accounting for 10,000 cub m. Just 500 cub m metres each of the highly sought after silver wattle, myrtle, sassafras and celery top pine will be the remainder. Much is exported. – The Mercury photo
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world heritage area extension nomination and have sent submissions to the committee headquarters in Paris.The group believes the nomination has substantial errors and by the committee’s own guidelines must be fully assessed as if it were a new nomination. The World Heritage Committee meets in Phnom Penh in June, where the nomination will be considered.The world heritage nomination is a key component of the forest peace deal, and a stumbling block to durability.Mr Harris asked how the Bill could be passed when such a crucial component is unresolved.“We already have no pulp mill, no activity at the Triabunna woodchip mill, and no necessary outlet for sawmill and harvesting residue from the south of the state.“Must we also have an excessive reduction in high quality saw log and peeler log processing, a strangulation of the special timbers sector with no guaranteed FSC certification, and no peace on top of that?.“As well, the amount of compensation being offered is peanuts, and many in downstream processing and in our local communities will see none of it.”The group has been encouraging members of the legislative council to support the amendments being brought forward by their colleagues Tony Mulder and Adriana Taylor. “We are doing this just in case the Bill does get up, but only because it will make it a few degrees less of a total disaster,” Mr Harris said.“It is still a very bad Bill, and while we are encouraging them to support the amendments, we still want them to vote the Bill down.”
From Page 6
Burke bungles world heritage nominationTHE federal Environment Minister Tony Burke has spectacularly bungled the World Heritage nomination of 170,000 ha of forest he bulldozed past Tasmanians in February, says Coalition Forestry spokesman Senator Richard Colbeck.He said it was well known the area included regrowth forest from clear fell and burn, along with forests that are yet to be harvested and regenerated.“Minister Burke’s nomination is broken beyond repair,” Senator Colbeck said. “The boundaries come up against future harvest zones, which removes buffer zones required under world
heritage requirements.“And we now know that the area listed includes private land.“Further, there are extensive areas where the listing area comes up against private property, impacting on the property rights of the private owners.”Senator Colbeck said the Tasmanian government had requested that about 10,000 ha be removed from the listing to rectify the problems caused.“It is our understanding that Mr Burke has refused in an attempt to save himself embarrassment, telling the Tasmanian government if area
is to be removed, it must be replaced with additional land,” he said. “Tony Burke nominated 170,00 0ha and that is what he wants.“This is hardly a systematic or scientific process.”Senator Colbeck said Tony Burke had put this up as a minor extension .. “ which we know it is not.”“He was trying to avoid any meaningful analysis of the nominated area. Because of his failure to consult and his attempts to have the listing rammed through the World Heritage Committee, it has been comprehensively bungled.”
The FWPA Statistics and Economics Reference Group will provide advice and assistance to the Program to ensure FWPA delivers on the needs of industry.
Nominations are sought for
senior representatives (CEOs
and direct reports) of member
companies to participate in
the Reference Group.
For more information:www.fwpa.com.auJim HoughtonEmail: [email protected]: (03) 9927 3260
INDUSTRY NEWS
Tropical wood trade:snags already inEUTR regulationTHE EU Timber Regulation (EUTR), which regulates illegal timber trade, entered into force on March 3 – but already there are signs from NGOs that it will operate to exclude supply of timber from tropical countries to European markets, says the Fordaq Network, a group of more than 53,000 wood professionals.Under the EUTR, the import of illegal timber is prohibited. Failure to comply can land importers with up to two years’ imprisonment or a 50,000 Euro fine, and block the timber trade.Companies importing timber into the EU are required to carry out ‘due diligence’ to ensure that the timber was logged according to the producer country’s laws, including for example, knowing the details of each logging licence under which timber is cut and taking measures to verify that all relevant laws are followed.Not only are these requirements almost impossible to meet in some countries, reducing their attractiveness as source markets, but there is the risk they will permit arbitrary discrimination against trade from countries perceived as being of ‘high risk’.Fordaq says tropical forested countries have already been singled out by NGOs as high
risk. Following a report that illegal Liberian timber was found in a French port, Global Witness campaigner Alexandra Pardal told BBC: “Almost all timber from tropical rainforests carries a high risk of illegality and should be checked out thoroughly. If there’s any suspicion at all, don’t touch it”.WWF has stated “much of the illegally traded timber comes from central Africa and southeast Asia”. A recent Greenpeace report singled out DRC timber as “clearly extremely high risk”.Timber exporting countries in Africa and southeast Asia are negotiating bilateral agreements on timber trade and forest governance with the EU that will exempt them from the EUTR. The conclusion of some, however, has been delayed. In the meantime, they must trade under the EUTR.Considerable resources are being spent on bilateral agreements that attempt to curb trade in illegal logged timber, when in fact there exists very little objective empirical data and rigorous analysis on rates of illegal logging, Fordaq says.“Apart from isolated instances, the incidence of illegal logging and exports of illegal timber is small.”
Problems .. there are signs that EU regulation will exclude timber from tropical countries to European markets.
Demand lifts .. US housing opens doors to more processed wood imports.
Problems with marine ply in UKUS imports of hardwood plywood increased to 252,379 cub m in January, up 19% from December and 29% above January 2012 on the back of a nation-wide housing revival.China shipped 148,678 cub m, 6% more than in December. Imports from Indonesia and Malaysia also increased by 6% to 30,607 cub m and 11,518 cub m respectively.Ecuador’s hardwood plywood exports to the US soared to 33,904 cub m, making it again the second largest supplier after China.Hardwood moulding imports increased to $18.2 million, up 8% from January 2012. China remained the largest supplier at $6 million.Hardwood moulding imports from Brazil increased by 49% from December and reached $5.2 million.US imports of assembled flooring panels increased to $12 million in January, up 31% from December. Imports from China were $8.7 million, accounting for 73% of total imports compared to 69% for all of
2012. China’s shipments were 31% higher than in December and 41% above January 2012.Brazil and Indonesia increased their shipments to the US at even higher rates.Meanwhile, according ITTO, plywood exporters to markets in EU are deeply concerned about marine plywood certification.Problems surfaced in 2012 over the quality of marine plywood which prompted the UK Timber Trade Federation (TTF) head of technical and trade policy to say it was not sufficient for buyers to rely on the marking of marine ply.He further said “merchants and those further down the supply chain needed to ask questions and check products properly, specifying and asking for evidence of marine plywood adhering to BS 1088:2003 (Marine Plywood)”.TTF’s national panel products division has advised members not to buy marine plywood which doesnot have third party verification of the British Standard 1088:2003.
Plywood exporters to markets in EU are deeply concerned about marine
LARGE domestic stockists have already started accumulating Burmese teak logs as the count-down starts for the log export ban in Myanmar.Myanmar’s Ministry of Forestry will scale back logging and ban the export of raw teak and hardwood from 2014 in a bid to increase exports of higher-earning finished products.Australian importers and stockists are sceptical and say the proposed ban will only drive up prices for the teak, which for well over 100 years has been the timber of choice for boat builders.While Tectona grandis is endemic to many areas of southeast Asia, it is the teak sourced from Myanmar (Burma) that is the most sought after. Burmese teak is also many times higher in oil content than its plantation grown sibling, which is the key to its longevity in the outdoor and marine environment.Stockists are paying premium prices to secure logs, anticipating a surge in demand as teak logs disappear from the international market. It is an advantage that teak is one of the most durable species and can be stored for years.Analysts say that fiscal 2013-14, which started on April 1, will be very interesting as the timber sector adjusts to the log export ban.April marks the beginning of a new fiscal year in Myanmar and Myanmar’s official New Years’ Day also falls during this month. The New Year holidays disrupt timber production and harvesting and milling operations cease for around 15 days.The International Tropical Timber Organisation says overseas log dealers have
already begun securing log quotas from local logging contractors so as to be sure to have adequate stocks.It appears that teak prices will reach new highs in advance of the log export ban. The Myanmar Timber Enterprise is expected to easily achieve its export earnings target for this year.A prominent domestic journal the Weekly Eleven reports that illegal loggers are taking advantage of the volatile situation between the Kachin and the Myanmar Army to harvest, transport and sell large quantities of timber in a neighbouring country.
The local press reports local people as saying the extent of illegal felling and logging has increased since the conflict started in 2011.The quantity of illegally removed timber is estimated to be in the hundreds of thousands of tonnes.One analyst said that the availability of cheap illegal timber has a negative impact on legally imported timber in China and prices for timber imported legally have been seriously undermined.The Minister for Environmental Conservation and Forestry U Win Tun says in the past Myanmar couldn’t export
finished products for various reasons.“But now we will try to export [finished] products and we will halt logs exports. That’s a serious aim we will carry out in the future,” he said.Under the ministry’s annual allowable cut framework, production of teak will decline by 15% in the 2012-13 financial year, while hardwood will fall by 20%.However, this reduction is higher in some areas, such as the Bago Yoma, where hardwood production will fall 30% and teak 70% this financial year.Myanmar is the only country that currently harvests quality teak trees from natural forests. Natural teak forests declined by 385,000 ha globally between 1992 and 2010, according to a UN Food and Agricultural Organisation global assessment conducted in 60 tropical countries.Natural teak forests grow only in Myanmar, India, Laos, and Thailand. In 2010, the combined area of natural teak forest was estimated at about 29 million ha, almost half of which is in Myanmar.The destruction of Asia’s old-growth teak forests along with the known human rights violations in the region have led some to refer to Asiatic teak as “conflict teak”. In 1962, the democratic republic called the Union of Burma was overthrown by a military coup and replaced by a military junta, infamous for human rights abuses and using violence to put down protests.In 1989, the Burmese government changed the country’s name to Myanmar, though teak coming from that nation is typically still referred
INDUSTRY NEWS
Rush to hoard Burmese teak astraders ready for log export banPrices for Tectona grandis in Australia expected to soar
Cont Page 16
Precious cargo .. teak logs ready for export at the river port of Yangon, an important entry point for business and commerce in Myanmar.
Burmese teak .. the timber choice of boat builders for well over 100 years.
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Governments must wake up to theenergy opportunity for wood wasteTHE Australian Forest Products Association has called on state and federal governments to promote the opportunities for woody waste to produce more renewable energy, provided these resources are sourced from sustainably managed forests.Speaking at the Residues to Revenues conference in Melbourne, AFPA strategic policy manager Mick Stephens said Australia was lagging behind much of the world in the use of woody waste from forestry and wood processing activities, resulting in potentially higher costs for emission reduction strategies and missed opportunities for value adding across the industry.“This woody waste includes the large volumes of sawdust, shavings and bark left over
from sawmill operations of which a small amount is used for low value products such as garden mulch or burned on site,” Mr Stephens said.“A major disincentive is the exclusion of wood waste from natural forests as an eligible source of renewable energy under the Renewable Energy
Target (RET) scheme. This was simply a political outcome between the government and Greens party that was not based on the scientific evidence.“Overseas experience from North America and Europe has demonstrated the important contribution woody biomass
can make to renewable energy. The use of forestry biomass is carbon-neutral, because the carbon contained in wood originates from the atmosphere as a tree grows and is released when converted to energy.“Furthermore, the link between excess fuel loads in the forest that can contribute to large scale wildfires and renewable energy is becoming increasingly apparent at an international level.“The Californian 2012 Bioenergy Action Plan, for example, has multiple goals including a reduction in the cost to the community from large scale wildfires through fuel reduction by unlocking a potential 25 million (dry) tonnes of forestry biomass a year for bioenergy production.”
Forestry biomass .. an important contributor to renewable energy.
Now for the next 50 years!Hoo-Hoo convention a brilliant successBy BRIAN PAGE
and JIM BOWDEN
MORE than 100 delegates and their wives and partners celebrated half a century of Hoo-Hoo in Australia at the 43rd HHI JIV convention dinner in Mount Gambier, SA, on April 13.Outgoing Australian president Val Fennell of G&R Logging, and a member of Mount Gambier Hoo-Hoo Club 214 which hosted the four-day event, voted the program a brilliant success.“It provided the framework for the next 50 years of the organisation’s service to industry,” she said.The Mayor of Mount Gambier Steve Perryman welcomed delegates at the ‘icebreaker’ function that included three past Hoo-Hoo International presidents Andy Blackwell of Melbourne, Ray Lamari of Cairns and Gary Gamble of the Black Bart Club in Ukiah, California, USA, and the current world president Ron Gattone of Sydney Club 215.The JIV convention installed Brisbane Club 218 member Pieter Verlinden as new president and Bob Whittle of Dunally, Tas, and Hobart Club 235 member and Brian Stewart of Timber Truss Pty Ltd, Alberton, SA, and Adelaide
Club 212 member as first and second vice-presidents respectively.A highlight of the convention was an industry tour of plantations and logging operations and other facilities with visits to Australia’s biggest plantation and wood processing centres, which showed the region is truly ‘open for business’.Two busloads visited sawmilling and radiata and blue gum logging operations, lunching at the Nangwarry Timber Museum.The first visit was to Whitehead Timber Sales at Mount Gambier east, which is now a large complex including timber treatment, sawmilling – utilising
lower grade sawlog and first grade logs – machining of components and recovery operations.The sawmill produces cut-to-order small lots such as timber for large wooden crates, pallet materials and a wide range of profit centre lines no longer produced by the major mills, along with a range of treated products including machined fencing materials.There are three second-level mills clustered near Mount Gambier – Whiteheads, N.F. MacDonnell and Sons and SE Pine which have grown into quite large (for product) and very diverse enterprises.A clear felling operation by
G&R Logging near Kongorong illustrated recent harvesting operational changes.A long drive to Kentbruck took delegates to the clear felling operations of K.C. and M. Boult Pty Ltd, now in a 13-year-old plantation with good average growth. Many trees over 30 m are producing surprising yields and about 25% of butt ends are selected for export, opening new markets.Tests on the pulping quality of blue gum logs over 16 years also offered the prospect of logging as with radiata with thinning regimes to generate more log sales.The tour also passed some younger blue gum plantations that have failed after six years of drought. These may be replaced with radiata in time. The whole blue gum industry is ‘in flux’ with the failure of MIS companies and new ownership by forestry companies, many associated with pension and superannuation funds.The buses were completely covered in fine dust billowing from the forest roads in an amazing huge cloud.Delegates finally returned to Mount Gambier to see the Hoo-Hoo Pavilion at Umpherston Cave for well-earned
Cont Page 13
Kathy Drewer and Jan Didwell of Mount Gambier.
Flag bearers at the Hoo-Hoo International JIV convention .. Harvey Strack from Western Australia, John Scholtens, New Zealand, Laurie Judd, Mount Gambier, Ray Lamari, Far North Queensland, Brian Stewart Adelaide, Ron Gattone HHI president, and at rear Gary Gamble from the US.
Anne St Clair with Ray Sanders, North East Victoria Club 236, Leon Quinn, Melbourne Club 217, and Len Lord, North East Victoria Club 236.
refreshments and drinks to remove the dust from throats, sponsored by G&R Logging.A highlight of the convention dinner was an address by Stuart St Clair, CEO of the Australian Trucking Association.Convention organiser Maurie Drewer said delegates were privileged to have Stuart as a speaker, not only because of the importance of transport to the timber and logging Industry, but because of his innate knowledge of the industry and his strong association with Hoo-Hoo.The ATA is a peak industry body representing the trucking industry and members include state and sector trucking associations, the Transport
Workers Union and some of Australia’s largest logistics companies.Stuart has a deep practical appreciation of road transport issues, gained during a working life in the timber industry. He owned and managed a sawmill in northern New South Wales, before being elected to the Guyra Shire Council in 1987, where he became Mayor, and was elected to federal parliament as the Member for New England in 1998.He was a key contributor to the House of Representatives transport committee’s report on managing fatigue in the transport sector – Beyond
the Midnight Oil – and later he became a senior adviser to the Deputy Prime Minister and Minister for Transport and Regional Services John Anderson, where he specialised in road freight issues.Start St Clair was specific about the ‘Ideals of Hoo-Hoo’.He reminded delegates that the Hoo-Hoo Code of Ethics formed part of a code of practise for the industry and everyone in it and it was pertinent to every-day business.“The code has stood strong for 50 years in Australia and it still stands strong today,” Mr St Clair said.
“I have been in Hoo-Hoo for 45 years and I still reflect on the sincerity and life’s leadership that are given through this Code of Ethics which are fundamental to Hoo-Hoo and all mankind.”J1V awards presented at the convention included:President’s Award: Melbourne Club 217. Newsletter and Charity Awards: Auckland 248. Convention Attendance: Adelaide 212. Club Meeting Attendance: North West Tasmania 272. Activity and Media Awards: Brisbane 218. Vicegerant Award: Ric Waters – Area 3 (North East Victoria Club 236).The next JIV Hoo-Hoo Convention will be held at Coff’s Harbour, NSW, from April 3 to 6, 2014.
From Page 12
Lindsay Morling of Launceston Club with Norm Forbes of Queensland and formerly from Mount Gambier.
Sue Page of Mount Gambier with Har-vey Strack of Leschenaultia (Bunbury) Club in Western Australia.
JIV secretary Trish Waters and husband Rick Waters from Melbourne.
Convention chairman Maurie Drewer (left) presents a cheque to John Smith of the Nangwarry Timber Museum while Lew Parsons, convention secretary, looks on.
Photos supplied by Brian
Page and Pieter Verlinden.
‘The code has stood strong for 50 years in Australia and it still stands strong today’
Les Parsons of Mount Gambier Club getting questions to plantation manager Simon Malseed during the industry tour.
Delegates gather on the balcony at the Main Corner convention venue in Mount Gambier.
Mount Gambier Timber Industry Club President Maurie Drewer welcomes delegates to the Hoo-Hoo JIV Convention.
Val Fennell, immediate past president JIV and Mount Gambier Club 214 and her husband Graham (Slim) Fennell catch up with Gary Gamble (Rameses 95) of Black Bart Club 181, Ukiah, California, USA.
Graham (Slim) Fenell of Mount Gambier Club 214 congratulates new JIV president Pieter Verlinden of Brisbane Hoo-Hoo Club 218
Representing Sydney Club 215 are Daniel, Angela and Heather Gattone.
Len and Pauline Lord of North East Victoria Club 236.
Leschenaultia Club 274 members Brad Barr and Harvey Strack.
District of Grant Mayor Richard Sage with Laurie Judd and Greg Richardson of Mount Gambier.
The Mayor of Mount Gambier Steve Perryman (left) with world Hoo-Hoo president Ron Gattone.
Snow-bound rail trucks freezemovement of Canada’s lumberSupply barrier to booming US housing marketFOREST companies in the Canadian province of British Columbia say they can no longer get enough rail cars to move their products to market at a time when the US housing market is going through a major recovery.US housing starts topped one million in March on a seasonally adjusted rate, more than double the low point hit during the recession, prompting a run on rail cars that Canadian mills use to get their wood products to market.And it’s not just lumber that’s affected. Oriented strand board, plywood and even pulp inventories are building at the mills, forcing companies to turn to trucks – which are also in short supply.“If you had a pickup truck, we would use it,” Bob Hayes, transportation vice-president at Canfor Corp. said.Earlier this year, Canfor came within four hours of shutting down a pulp mill because of a rail car shortage. Pulp production is also up and because it is perishable, it cannot be stored outside. Canfor has erected a big-top style tent at one of its Prince George pulp mills to store inventory but so far hasn’t had to use it.However, the rail car crunch is adding to costs, from additional trucking to causing ships to be delayed in port. “I think transportation and the lack thereof, is going to be the biggest challenge for BC forest products companies to get their product to market in 2013 and beyond,” Mr Hayes said.
“Usually economics will drive solutions, but right now, that solution is to constrain the industry.”Catherine Cobden, executive vice-president of the Forest Products Association of Canada, said the rail car shortage was systemic, with rail authorities unable to deliver enough cars to meet growing demand.“It’s very disappointing at a time when markets are rebounding and we are gearing up to support and supply, not just our traditional markets but our growing emerging markets,” she said.“Our members are saying in some cases they are only getting half the cars they need to service their marketplace. Obviously this is a very difficult and untenable position for us.”US housing starts reached
1036 million units in March on a seasonally adjusted rate, 7% higher than February and 46.7% above March 2012, according to the US lumber publication Random Lengths.March’s rate was the highest since 2008. The 2013 forecast had been for from 885,000 to 985,000 starts.Doug Routledge, acting president of the BC Council of Forest Industries, said sawmills in the province had responded by returning to two shifts. Employment in the forest industry has climbed marginally, from 51,490 direct jobs in 2009 to 56,340 in 2012, according to Statistics Canada.“Most mills are back on a two-shift capacity which would be equivalent to normal production levels,” Mr Routledge said.“A few mills, not many, have added in a graveyard shift.
But it’s being buffered by transportation issues – not just railcars – where people are not able to get rid of finished inventory. That is buffering the ability to put on that third shift here and there.“We are not able to supply the US market with quite as much product as I think they would like. It’s shortage of rail cars, a shortage of trucks and generally, a shortage of all transportation vehicles.Further, a shortage of skilled labour is hitting the supply chain.“There’s no question: There’s a shortage of drivers and a shortage of trucks, whether lumber or log, to move the product.”The rapid rebound in housing coupled with the rail car shortage has forest industry leaders wondering if the two rail companies will be able to provide enough cars on a long-term basis to meet the US appetite for Canadian wood products.In an email statement, Canadian National Railways said since January it had been challenged by extremely cold weather in western Canada, snowfall and several line disruptions.As a consequence, train velocity has declined, while terminal dwell times at classification yards have risen. These factors have adversely affected the productivity of the rail network, as well as service levels for all customers.– Vancouver Sun.
Containers mount up in Vancouver .. forest sector is feeling the pressure as housing starts jump in the US and shippers look for rail cars to send lumber south.
us housing starts reached 1036 million units in March on a seasonally adjusted rate,
7% higher than February and 46.7% above March 2012
to as ‘Burmese teak’.Along with the sale of precious stones, the Burmese government traditionally relied on the teak trade to finance its operations. Because of this, the direct importation of teak originating from Myanmar is prohibited, due to sanctions imposed by the US Treasury Department. However, Burmese teak is currently sold in the US marketplace, often imported indirectly through Myanmar’s neighbours China or
India, which bypass restrictions by milling and exporting the timber themselves.Ironically, there’s a long-standing belief that teak grown in the Burmese jungle has a longer lifespan and greater durability than timber grown in neighbouring countries such as India or Thailand. Therefore, the demand for Burmese ‘conflict
timber’ is often much higher than teak harvested under more ethical conditions.There exists a common myth that plantation teak exhibits lower densities than timber grown in old-growth forests. However, studies from the US Forest Research Institute have found no significant relationship between the growth rate of
plantation teak and its density.
However, to match the wood grain of Burmese teak, some forestry experts recommend a process called slow growth cultivation. By finding regions that closely mimic the precipitation and soil characteristics of Myanmar, plantation teak may be cultivated without irrigation or fertilisers. Thus, the growth rate is similar to that of Burmese teak, and teak plantations can produce timber that is nearly identical to Asian teak.
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Illegal loggers are taking advantage of the volatile situation in Myanmar to harvest,
transport and sell large quantities of timber in a neighbouring country
Russia to stiffen punishment forillegal loggers, 7000 receive finesPutin pledges $13m for forest industry projectsRUSSIA will earmark $US13 billion to finance priority projects in the country’s forestry industry to make the sector attractive for investment and address its long-term problems. “We must also make forestry attractive for investment,” President Vladimir Putin said.“We plan to invest in 118 projects in the sector which have received priority status,” Mr Putin told a State Council meeting which discussed measures to increase the efficiency of the forest industry.Russia’s forestry business has been in the doldrums for the past two decades, marred by poor governance, low investment potential and the growth of illegal felling and illegal timber sales.Up to 20% of timber logging or about 35 million cub m of
timber is illegal, with economic damage from illegal timber sales estimated at between $420 and $970 million annually, according to WWF Russia and World Bank data.
The existing system for forestry
project selection, which favoured large production facilities for timber processing, should also cater for small and medium businesses, Mr Putin said, adding Russia also needed universal methods
of support for all businesses which could bring economic and social benefits.
Mr Putin also said Russia needed to stiffen punishment for illegal loggers.
“First of all, we need to streamline a system of accurate monitoring and define tougher measures for those who barbarically destroy the forest,” he said.
More than 7000 people were fined in 2012 for illegal felling, with damage amounting to around 10 billion rubles. Only 2% of these funds were recovered.
“The forest also needs to be rescued from illegal felling, which has increased by 66% in the past five years and the amount of this felling remains colossal,” Mr Putin said.
Exhibitors report sales of $854 million at Malaysia furniture fairEXHIBITORS at last month’s Malaysian International Furniture Fair in Kuala Lumpur reported record orders of $US854 million.
The fair attracted 18,397 trade visitors of which 6054 were international buyers from 140 countries. The sales and visitors figures were considered very
encouraging in view of current global economic uncertainties.The MIFF was such a success that 70% of the exhibitors have confirmed their participation
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