The story last week on the green credentials of steel vs. wood certainly struck a chord. In addition to a large amount of correspondence with the editor, a number of you took the opportunity of contributing to the e-letters section of Friday Offcuts. Check it out. One of our readers pointed out a resource that they use, www.ecoselect.com.au, that compares wood to alternatives and their respective effect of production on the environment. It outlines the amount of carbon emissions released per kg/m3 and disclaims some of the promotions being undertaken by our competitors, steel, aluminium and concrete. Also look into www.fpl.fs.fed.us/corrim where a database of information for quantifying environmental impacts and economic costs of wood building materials through the stages of tree planting, growing, product manufacturing, building construction, and its operational use and demolition is supplied.
With Friday Offcuts you'll have noticed that job and equipment advertising has become an integral part of the industry's reading every week. The demise of classified advertising for jobs is well documented. In New Zealand for example in the third quarter of 2006 there were more than 78,000 newspaper ads and more than 92,000 jobs advertised on-line. This was a massive increase - 17 percent - from the previous quarter. On-line advertising has quickly become "main-stream".
In Australia the advertising market is now worth about AU$12 billion a year. Of that, TV comprises about one third. Newspapers make up about the same. Television is maintaining its share of the pie, but the print media is declining. The big growth area is internet advertising, which according to industry authority, the Audit Bureau of Verification Services, last year exceeded AU$1 billion. It grew 61.5 per cent over the previous year, and more than doubled over the previous two years. Online advertising in Australia now exceeds the amount spent on magazine advertising or outdoor advertising.
Seek NZ General Manager Ken Leeming describes the increases being seen as "phenomenal". He says the advantages of advertising on the internet are its immediacy and quick response effect, value for money (c.f. traditional media it's cheap) and no wait for publication dates for newspapers. "Classifieds are becoming a less relevant means" he says. "What we'll see is a continuation from the move from newspapers across to on-line. More and more people will use it".
For those who want more information on the unique opportunities open to direct advertising to the forestry and wood products in this e-newsletter, contact me on brent.apthorp@innovatek.co.nz Subscribe a friend
Rotorua scientist Russell Burton, from Crown Research Institute Scion, has been recognised for his contribution to advancing chemical engineering knowledge in New Zealand, and service to the bio-processing industries. Dr Burton, now a group manager at Scion, has been awarded the Skellerup Award from the Institution of Professional Engineers New Zealand (IPENZ) for his services to chemical engineering and to the wood processing industry.
Dr Burton says the chemical engineering industry in New Zealand is small but has an important role in the country's economy. "Our profile is continuing to grow internationally because of the work that is being done by the small number of chemical engineers we have. The work we do is quite different because our focus is mainly on adding value to the dairy and pulp and paper industries - internationally the focus tends to be on petrochemicals." More >>
The role of forestry in addressing climate change
March 21st was World Forestry Day - a day celebrated around the world by foresters and the forestry industry. It is an occasion to celebrate advances in forest science, and for recognising the ongoing need to deliver sustainable forest management.
With public awareness of climate change issues growing, the need to demonstrate the sustainable nature of Australia's forestry industry and the benefits of using environmentally friendly wood products has never been more important. As part of World Forestry Day, NAFI held a forest industry conference where its new publication, Forest industries and Climate Change, was launched. The new publication demonstrates the advantages of growing commercial forests for wood products as part of the global solution to climate change.
"As major carbon stores, forests and wood products have a significant role in addressing the challenges posed by climate change in reducing greenhouse emissions. Forestry policy needs to be a viewed as an integral part of governments' and policy makers strategies in addressing climate change," said NAFI's CEO Catherine Murphy.
"Importantly, a sustainably managed and commercially productive working forest can maximise environmental outcomes and meet many of the challenges of climate change by comparison with excessive areas of forests locked up in reserves. We need to have a balanced outcome between providing sustainably harvested timber and wood products which are carbon positive, while also recognising the benefits of well managed national reserves, Mrs Murphy said.
NAFI's new publication describes the benefits of forests as carbon sinks and also the significant amount of carbon storage in wood and wood products. It also explores renewable energy from the use of wood waste, and the significant potential for the manufacturing of bio-fuels from wood. A copy of the publication is attached here as a PDFSource: NAFI News
AU$6m mill upgrade in Tasmania
An AU$6 million upgrade over the next 10 weeks will see Forest Enterprises Australia's sawmill at Bell Bay in Tasmania more than double its softwood production. The company won a 10-year supply contract for 290,000 tonnes of pine annually in January this year. The workforce will grow to more than 50 over the next two months and annual production is expected to rise from 60,000 tonnes to 140,000 tonnes. The Launceston Examiner reports this week that the company is now expected to fast-track its plans for a new AU$50 million softwood sawmill after buying the former Carter Holt Harvey fibreboard plant at Bell Bay. FEA chief executive Andrew White confirmed that a sale agreement had been reached with Carter Holt Harvey late last week. Work preparing the 85 hectare site is expected to begin immediately.
Nick Roberts Appointed CEO Forests NSW
A3P welcomes the appointment of former A3P Chairman Mr Nick Roberts as the new Chief Executive Officer of A3P member company Forests NSW. Mr Roberts has been active in the industry - serving as the inaugural Chairman and Board Member of A3P, Managing Director of A3P member company Weyerhaeuser Australia Pty Ltd and before that as Managing Director of their New Zealand operations.
"With 27 years of industry experience, Mr Roberts has the expertise and insight to maintain Forests NSW's already high standard of environmental practice in sustainable forest management", said A3P CEO Mr Neil Fisher. Forests NSW is a public trading enterprise within NSW Department of Primary Industries and responsible for managing over 2.44 million hectares of public forests in NSW. Forests NSW has achieved certification to the Australian Forestry Standard for sustainable forest management. Mr Roberts was also appointed Deputy Director-General, Primary Industries Trading.
Tasmania's lower house passes pulp mill bill
The Premier, Paul Lennon, has welcomed the Lower House's approval of legislation providing for an assessment process for the proposed pulp mill. The legislation was passed on Friday and the Bill will now move to the Upper House.
"This is not only the biggest single private investment ever proposed for Tasmania, it is also the biggest investment in a forest project Australia has ever seen," Mr Lennon said. "The benefits for Tasmania of having this project proceed are enormous: we cannot give up on the potential for 2,000 long-term, permanent jobs and an extra 0.7 billion being added to the Tasmanian economy.
"When the economy is strong our memories are short but no-one should ever forget that 6,500 Tasmanians lost their full-time jobs over a 15 month period during 1996 and 1997. "In the mid 1990's unemployment was nearly 11% and the number of Tasmanians in jobs was 197,300. Now unemployment is 5.9% and 223,300 Tasmanians are in jobs -- the highest in 17 years."
Mr Lennon said the Pulp Mill Assessment Bill would allow the pulp mill to be assessed under Tasmania's tough environmental emission limit guidelines. "This legislation does nothing more than give the pulp mill proposal a fair hearing so all Tasmanians will know whether it is environmentally acceptable.
"The legislation ensures that the proposal will be given a full, expert assessment by independent scientific leaders in their field. "And in the end, after the proposal receives their full consideration, the final decision will be in the hands of Tasmania's democratically-elected parliamentary representatives."
Mr Lennon said the world was watching what happened with the pulp mill proposal in Tasmania. "Make no mistake, what happens here has international significance," he said. "If the proposal meets all of the guidelines we have set, Tasmania will have lifted the bar on pulp mill standards for the rest of the world to follow.
"Our requirements take the demands on pulp mill technology to new levels and we have made it clear that we will not accept a proposal that does not stand up to our demands. "The Gunns Limited proposal deserves the opportunity to be measured against those standards. Source: RISI Pulp & Paper
AU$200 million to address illegal logging in SE Asia
A3P has welcomed yesterday's announcement of AU$200 million in funding by the Australian Government to address illegal logging and deforestation in South East Asia.
"The Australian initiative will help developing countries follow Australia's world class forest management standards and create sustainable forest industries", said A3P CEO Mr Neil Fisher.
Working with both developed and developing countries the Australian Government's $200 million investment is intended to help reduce overseas deforestation, encourage the planting of new forests, and invest in sustainable forest management practices which are among the best ways to reduce global emissions now.
"Earlier this year A3P launched landmark member guidelines to exclude illegally logged products from these operations from the market", said Mr Fisher. "Our guidelines recognise the problem of illegal logging and deforestation in many countries and provide a proactive response to bring these practices to an end".
Bushfire impact on water yield
In the summer of 2002-03 an enormous forest fire burnt through a massive 700,000 ha of forests in northeast Victoria, Australia. This region supplies 38 per cent of the water that flows into the Murray-Darling River. In a country where water supplies are at a premium, it is vital to know what impact bushfires have on the water yield of major catchments.
Senior Ensis research Scientist Dr Richard Benyon and Dr Neil Sims of Ensis' remote sensing group have used Landsat images of the catchment captured before and after the fires to predict the impacts on water availability over time as the forests regrow. The model suggests that, initially, the loss of forest area after the fires will reduce the total water uptake by trees and make more surface water available to streams.
Ensis scientists estimate that mean annual stream flow soon after the fires will increase by about 40 gigalitres per year. Since 40 gigalitres is roughly equivalent to Melbourne's water requirement for a month, the increase in water flow may seem like a positive outcome of the fires. But this effect is not likely to last.
As the forest regrows, and the young trees consume more water, substantial reductions in water yield from the catchment are expected over coming decades. Richard says understanding the impact of fires on water yield from major catchments is critical to delivering security of water supply to farms and cities. For more technology and research updates, see the latest version of Ensis Link on www.ensisjv.com
New Zealand Log Prices - March 2007
Overall Log Index For export log markets, as foreshadowed in February's survey, there has been a lull in export demand linked to the Chinese New Year and prices are generally unchanged. However an expected easing in ocean freight rates has definitely not come to pass. In fact quite the opposite - shipping rates being negotiated for April could be up as much as $US10 a metre. Actual prices being paid by exporters to forest owners are mixed, but unchanged on average, except in Otago/Southland where prices are up a consistent $2 to $3 a metre.
Domestic log grades are steady to slightly stronger, especially for non structural logs, as domestic prices realign with export returns. Demand is strong and supplies are tight in most areas, especially for pruned logs, because logging crews are being moved into unpruned stands to take advantage of high export returns. Australian lumber demand is strong, but the trade is being strangled by uncertainty around grading verification issues. US lumber prices are improving slowly. Local sawmillers will be watching the Russian log export duty saga with trepidation, least this results in another export log price surge.
The Agri-Fax Log Price Index, which measures returns from the whole forest, suffered a slight reversal to slip below $84/tonne. This may accelerate next month as higher shipping rates take effect, however the medium term outlook is still very strong even without the Russian export duty wildcard.
Log price changes: North Island Domestic: Prices are generally little changed for all grades, but market sentiment varies between regions. Where log supply is tight there is upward price pressure, but lack of sawmill profitability is negative.
Export:
Export log price changes are mixed, but expected to fall next month. Pulp prices are steady.
South Island: Domestic: Pruned log prices and S1/S2 sawlogs are generally steady, with lower grade sawlog and chip prices up a little.
Export:
In the Northern regions price movements for export grades are mixed, but down slightly overall. However in Otago /Southland most export grades are up $2 to $3 per jas metre on average, with export pulp steady.
Average CIF prices for imported logs and sawn-wood rose 40% to US$146.6 per m3 and 9.4% to US$298.9 per m3, respectively, in 2006. Imported logs from New Zealand over the period increased 21 percent c.f. 13 percent from Russia. Source: ITTO TTM Report 1-15 March 2007
Termites get the vibe on what tastes good
Researchers from CSIRO and UNSW@ADFA have shown that termites can tell what sort of material their food is made of, without having to actually touch it. The findings may lead to improvements in the control of feeding termites. By offering them a choice between normal wooden blocks and specially designed blocks made of wood and other materials, the researchers found that the termites always preferred the blocks containing the most wood - even though they could not touch or see the other materials.
Mr Ra Inta, from UNSW@ADFA and CSIRO Entomology, says the ability to differentiate between food sources is based on the vibrations of the food that the termites are eating, although the exact mechanism for this ability is yet to be explored. "Scientists have known for some time that termites are receptive to vibrations," Mr Inta says. "But these results demonstrate that termites' methods of food assessment are much more sophisticated that previously thought".
"When offered a choice between blocks of their normal wooden food, and specially engineered blocks made of wood and other materials, they could tell when there was another material attached and always chose the blocks that contained the most wood." The researchers are designing further experiments to test termites' assessment methods in an attempt to determine precisely what aspect of the vibrations termites are responding to in assessing food.
Threat of massive beetle infestation in Europe
Woods affected by the Per and Kyrill storms early this year in Europe are at risk from major beetle infestation, informed Euwid. Spruce bark beetles already felled a large volume of timber last year in a number of regions, with processing frequently lagging behind the speed at which timber was being felled. Forest owners' associations have called upon forest owners to process storm-felled timber as quickly as possible and to remove or debark the timber. The crowns should not be left standing but processed into wood chips when possible using mobile choppers. Source: ITTO TTM Report 16-28 February 2007
UPM launches wood plastic composite
UPM, a Finish forest product company, is preparing to launch a new product, UPM ProFi wood plastic composite, at the Milano Salone Internazionale del Mobile exhibition in April. The product will be used in the structure and decking of furnishing systems company Artek's pavilion at the exhibition. The product is made of self-adhesive label materials of paper and plastic, which are recycled materials from UPM Raflatac's production. The wood plastic composite is reported to be strong and resistant to humidity. It can be worked as wood and its rigid surface of deck endures hard blows and mechanical erosion. The composite can be disposed of by incineration or recycling. The product development and production are located in Lahti, Finland. Source: ITTO TTM Report 16-28 February 2007
US lawmakers seek ban on illegal timber imports
A group of Republican and Democrat congressmen want to crack down on illegal logging around the world. Led by Democrat Rep. Earl Blumenauer, the group seeks support for a bill to ban US imports of wood products derived from illegally harvested timber. Lawmakers hope to make US consumers more aware of where their new furniture or hardwood floor comes from, Mr. Blumenauer said. He added that according to the US International Trade Commission, as much as 30% of US hardwood imports were from suspicious or illegal sources.
Much of the wood is sent to China, where it is processed at low cost and then exported to the USA and other countries. Mr. Blumenauer said that illegal logging costs US companies as much as US$1 billion a year in lost exports and reduced prices for timber products, according to the American Forest and Paper Association. The logging bill would extend the Lacey Act, which prohibits importation of wildlife taken in violation of conservation laws, to apply to wood and timber products. The measure would ban the import, export or sale of timber products made in violation of domestic or foreign law or international treaty. Source: ITTO TTM Report 1-15 March 2007
...and one to end the week on...the thoughtful husband
Several men are in the locker room of a golf club. A mobile phone on a bench rings and a Man engages the hands-free speaker-function and begins to talk as he puts on his golf shoes. Everyone else in the room stops to listen.
Man: "Hello?"
Woman: "Honey, it's me. Are you at the club?"
Man: "Yes."
Woman: "I'm at the shops now and found this beautiful leather coat. It's only
And on that note, have a great weekend. Cheers.
Brent Apthorp
Innovatek
PO Box 904
Level Two, 2 Dowling Street
Dunedin, New Zealand
Ph: +64 3 470 1902
Fax: +64 3 470 1904
Web page: www.innovatek.co.nz
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