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Friday Offcuts – 21 August 2009

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A focus in this issue is new technology. The programme that's been designed by forestry technical staff on both sides of the Tasman over the last three months or so is being released this week to industry.

ForestTECH 2009 which will run for both New Zealand and Australian forestry companies in mid November will be detailing the very latest tools that have been developed for forest data capture, inventory, mapping and remote sensing, forest management information systems, forest estate modelling and wood quality measurement. In addition to an overview of new and developing technologies, foresters who have been assessing and trialling some of these new tools operationally will be discussing how they've performed and if successful, how they've been integrated into their forest management and planning. Further details on the new programme can be seen in the lead story below. Programme flyers will be sent out shortly. The full programmes can also now be downloaded from the event website, www.foresttechevents.com

In new wood technologies, saw and sawing technologies are being unveiled to sawmilling companies on both sides of the Tasman in just three weeks as part of the long awaited SawTech 2009 series. In another story in this week's issue we outline Medium Density Particleboard, an innovative new product that's making its debut in the Chilean market. One of the larger Chilean forest products companies, MASISA, after building a US$140 million pilot operation with production (750,000 m3 a year capacity) rolling off the presses less than two months ago, is already constructing another new US$55 million MDP operation. Not bad in the current environment.

Finally, at the other end of the technology scale, check out the short story this week on the Chinese farmer who has built his own flying machine, a helicopter, and it's made out of wood and a few steel pipes.


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Innovative forest inventory and mapping tools showcased

 
Geographic Information Systems GIS) and Global Positioning Systems (GPS) have both become mainstream tools used by foresters in conjunction with spatial information like maps and aerial photographs. However, recent rapid advances in remote sensing technologies have revolutionised spatial data capture in forests. It's being labelled "precision forestry".

Precision forestry incorporates a range of integrated tools such as satellite navigation systems, GIS and digital data capture. In particular, the latest generation of high-resolution remote sensing tools are having a major impact on forest planning and how today's forests are being managed.

The growing availability and reduced pricing of remote sensing tools has led to a rapid expansion in forestry applications world-wide. Forest managers in Australia and New Zealand are all now evaluating airborne optical sensors, satellite optical sensors and airborne laser scanners for applications like forest change detection, catchment hydrology studies, infrastructure mapping, biomass and carbon accounting, weed infestation assessment and forest health monitoring.

The forest technology series ForestTECH 2009 planned for November in both New Zealand and Australia will be detailing what remote sensing tools are commercially available, how they can be best used and practical management and operational considerations in applying the new technologies.

Forestry Tasmania, Forests NSW and other forestry companies and technology providers will be presenting results from recent trials on their forest estates. Forestry Tasmania has just completed a major LiDAR feasibility study that's looked at the technical and financial feasibility of applying (airborne laser scanners) LiDAR across its entire forest estate, some 300 square km of native forest and plantations. It's been used to assist in a wide range of roading, harvesting and other operations over a two-year period.

Forests NSW is trialling the use of LiDAR to estimate current wood resources in their softwood plantations. The PARIA study covers 5,000ha of radiata pine plantation in Green Hills State Forest, 20 km north of Tumarumba, in southern NSW. The remote sensing trial utilises various methods to automatically detect individual tree crowns and extract height values to predict stem volume. Key findings from the study will be presented as well as recommendations for future operational applications.

ForestTECH 2009 will include an integrated series of presentations, managed exhibitions, demonstrations and field visits. It runs in Albury for Australian forestry companies on 16-18 November and before this, in New Zealand on 10-12 November. Full details on ForestTECH 2009 - including the full programmes, can now be downloaded off www.foresttechevents.com



Australian Senate rejects CPRS legislation

As expected, the Senate yesterday rejected the Rudd Government's Carbon Pollution Reduction Scheme (CPRS) legislation. While no surprise, the rejection crystalises for Australian businesses a period of uncertainty, perhaps as long as a year. There are several scenarios that could play out over the coming months.

The Government will re-submit the legislation in November and there is a chance that after negotiations, the Liberal and National Parties will support it. But that's no certainty as a significant number of Coalition MPs oppose the legislation outright.

Climate Change Minister, Penny Wong wants to take the legislation to Copenhagen to push for the best possible global deal to reduce emissions. For this reason CarbonEdge is convinced the Rudd Government will try again in November. However, if the legislation is not passed in November, it provides the Government an election trigger which it may or may not use. If it does use the election trigger, that would most likely mean a March 2010 election and that means no operative CPRS legislation until at least the middle of 2010.

Should the Rudd Government not utilise any election trigger, some form of legislation would be back before the Parliament presumably in the first two weeks of February 2010.
Opposition Leader, Malcolm Turnbull suggests the sensible course for the Government is to wait until after the outcome of the Copenhagen Climate Conference in December 2009 and pass legislation in early 2010 with the Coalition's support. But again, there's no guarantee of that support.

It is certain the Greens have dealt themselves to irrelevance and will be praying for a double dissolution election fought over climate change. They will look to increase their representation and hold a larger balance of power in their own right. Although not into guessing games, CarbonEdge thinks what is most likely is that with adequate negotiations between the Coalition and the Government, the legislation will be passed in November, in time for the Copenhagen Climate Conference.

Amidst all these possibilities, CarbonEdge continues in its view that prudent businesses will prepare for the imminent introduction of a "cap and trade" based system with a start date no later than 1st January 2012.

Source: www.CarbonEdge.com.au

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Tree planting tough with NZ Government's announcement

 
Following on from stories on the NZ Government's announcement on emissions targets there was according to the Kyoto Forestry Association (KFA) a Radio New Zealand revelation on Sunday that the Government plans to introduce a carbon price cap and a ban on international trade of carbon credits. The KFA has come out quickly to say if applied, that there will be no private investment in new forest planting for the foreseeable future.

KFA spokesman, Roger Dickie, said the new policy made a mockery of the National Party's pledge, in its 2008 forestry policy, to see 600,000 to 800,000 hectares of eroding land planted with new forests. Mr Dickie said the policy was particularly perverse given the Government had made it clear that its recently announced emissions reduction targets of 10% to 20% are dependent on significant new areas of forestry being planted.

The Government's announcement that it plans to cap carbon prices and ban international trade will guarantee that forest investors will avoid the industry and the much needed forest plantings will not happen. Mr Dickie said it seems that Government wants the forest industry to receive artificially low carbon returns and in doing so will force the industry to subsidise the emitting power generators and oil companies. "With such a draconian policy envisaged, forest investors will simply vote with their feet and stay out of the industry," he said.

Mr Dickie said the prospect of a ban on international trading was in direct contradiction to the statement made by New Zealand's Ambassador for Climate Change
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Support service for exposed NZ timber workers

A consultation document has been released today setting out ideas for a possible support service for former timber workers who were historically exposed to pentachlorophenol (PCP), a timber preservative used in the 1950s to 1980s.

Former timber workers are being asked for their advice on what health - and other - support needs they have and what services they believe should be provided to those who were exposed.

The Ministry of Health has contracted Allen and Clarke Policy and Regulatory Specialists Ltd, a Wellington-based consultancy, to design and consult on options for a support service for those former timber workers who were exposed to significant amounts of PCP. More >>



Leaky homes bill likely to top $11.5 billion

The NZ Herald this week reported that the cost of leaky homes in New Zealand is up to NZ$11.5 billion - far more than the previous $3.5bn estimate. Building and Construction Minister Maurice Williamson met six metro city mayors on Monday to discuss options on the costs of leaky homes. Rodney Mayor Penny Webster said that a review of leaky buildings had found that the national bill was likely to top $11.5 billion, with the vast majority of this cost expected in the metro Auckland area. Mr Williamson received a report on the size of the leaky building disaster some weeks ago but to date hasn't released its findings.



Australia needs to get serious about using woody biomass

 
The National Association of Forest Industries (NAFI) this week has called on the Australian Government and Opposition to get serious about renewable energy and fully recognise the opportunities provided by wood biomass in the Renewable Energy Target legislation.

"The current legislation fails to fully include the use of biomass from forestry wood waste for electricity generation effectively ruling out a resource that could reduce Australia's greenhouse gas emissions by 3 million tonnes each year," said NAFI CEO Allan Hansard.

"We have heard a lot about the potential of wind, solar and even coal seam methane as renewable sources of energy but what has been missing or ignored in this debate so far is the key role wood biomass from Australia's sustainably managed native forests and plantations can play in assisting Australia to meet its renewable energy target and place the economy on a low emissions path."

"Australia already lags behind many other developed nations in terms of using renewable wood waste for energy generation. The European Union, Canada and USA generate a significant amount of electricity and heat from renewable resources; in Europe over two-thirds of this comes from biomass, most of which is wood waste from forestry."

"Wood-waste based renewable energy could provide as much as 7 percent of the Australian Government's 2020 renewable energy target and generate an estimated $800 million in direct investment and create 2300 sustainable jobs, many of which will be in rural and regional communities". The full release from NAFI can be seen here



New wood products appointment

Automation & Electronics has announced the appointment of Tracy Goss as President of A&E USA LLC. Tracy has had a long background in sawmilling starting out as an apprentice Saw Doctor at Tachikawa Forest Products in Rotorua, a Saw Doctor and Technical Supervisor at Waipa Sawmill, Sawmill Manager at Claymark Industries, Katikati and more recently, as the General Manager at Australian Solar Timbers' Kempsey sawmill. Tracy will commence his role based in Ruston Louisiana in early October this year.



Applications are open for the 2010 Max Jacobs Grants

The late Dr Max Jacobs was one of Australia's most distinguished foresters. At the time of his retirement in 1970 he was the Director-General of the Forestry and Timber Bureau, having worked in the public service for 44 years. He died in Canberra in 1979.

Initially in 1983 the Australian Academy of Science, in conjunction with the Institute of Foresters of Australia and the New Zealand Institute of Foresters, established a fund to commemorate his life and work. The fund is used to support worthy projects in any field of forestry research and to provide graduates within Australasia with support for professional development not readily available from other sources.

The Institute of Foresters of Australia has undertaken to support the fund the Max Jacobs Fund for at least a five-year period to 2011. The following broad categories of activity may be supported: - work or study to be carried out in or related to Australasia in any field of forestry science or forest management - field-orientated research in Australia and New Zealand, and - overseas travel to undertake research or present research findings at scientific conferences.
Applications close 30 September 2009 and further information can be found here



Extra AU$45 M funding secured by MIS receivers

 
A judge in Victoria has given permission to the receivers of troubled Australian agribusiness Great Southern Group to borrow more funds from three of its four secured financiers.

The group already owes about AU$380 million but the banks have agreed to lend a further AU$45 million, The Sydney Morning Herald reported. The money will be used to ensure that Great Southern's receivers have sufficient funding to protect and maintain the group's timber, almond, olive and vineyard investment schemes until the middle of next year.

Great Southern's receivers have no funds to pay rent for the land the crops are on, or for crop maintenance activities including fertilization, pest control, road maintenance and harvesting, the court was told. Paying the group's employees is expected to cost more than AU$6 million this year.

In a separate development, an AU$20 million rescue package has been offered to growers in six of Great Southern's failed plantation projects, Australian news service ABC Rural reported on 17 August. The package is being offered by Coogee Chemicals chairman Gordon Martin, who plans to provide working capital for the forestry schemes to bring them to harvest through another company that he chairs, Pulpwood Plantations. Source: www.forestweb.com



Getting the best out of your advertising dollar

News came out recently that print advertising revenues are taking another hit. In the US, advertising revenues are projected to decline by 14% this year and drop until an economic recovery drives an upturn near the end of 2010. The ad-buying division of Interpublic Group (IPG) of Cos. projected revenues to fall to US$161.4 billion this year after declining 7.5% to US$189 billion in 2008.

Newspapers will be the hardest hit as readers shift to the Internet, according to Brian Wieser, the firm's forecasting director. Local newspaper ad revenues are projected to decline by 27% this year, steeper than last year's 18% decline.

The trend is much the same on this side of the world. Last year, advertising revenue across all main media in New Zealand dropped to NZ$2.317 billion from NZ$2.355 billion in 2007 with newspapers the worst sector hit, according to the country's Advertising Standards Authority. Newspapers felt the biggest hit with revenue down 8% compared with 2007 to NZ$760 million. In Australia, the print media fared better with the newspaper sector posting only a slight 0.6% decline in ad revenue in 2008.

In New Zealand as print advertising dropped between 2007 and 2008, internet advertising over the same period rose almost 43% to NZ$193 million. Expenditure on online advertisements in Australia reached a staggering AU$1.7 billion by the end of 2008. The Australian arm of the Interactive Advertising Bureau has been first out of the blocks with online advertising stats for Q2 of 2009. For the three months to June 30, the IAB recorded a 9.8% jump in online spending over the June quarter in 2008, with revenue reaching AU$453 million (NZ$539). The latest IAB figure for New Zealand - for Q1 of 2009 - revealed a 7.99% increase over the year-ago quarter, with revenue hitting NZ$46.2 million.

The messages from advertisers in Friday Offcuts is that this medium - being so targeted and going out to so many directly employed within the New Zealand and Australian forest products industry, is paying huge dividends in the current economic climate. If keen on making the most out of your advertising spend this year, contact us (Kerry.apthorp@innovatek.co.nz) to discuss options that we can tailor for your own company or products.



Innovative new board mill planned for Chile

MASISA's Board of Directors have approved the investment in a medium density particleboard (MDP) mill in Cabrero, Chile. The construction of this new MDP mill with cutting-edge technology entails an investment of US$55 million. It will have a production capacity of 280,000 m3 of MDP a year, aimed at the domestic and export markets.

MASISA started to produce MDP, an innovative product that will made its debut in Chile, at its Montenegro mill in Brazil as of June this year. The US$140 million model mill has a production capacity of 750,000 m3 a year and a melamine line with a capacity of 300,000 m3.

MASISA produces furniture and interior architecture wood boards in Latin America, and has 12 industrial complexes in Chile, Argentina, Brazil, Venezuela and Mexicoas well as 238,000 hectares of pine and eucalyptus plantations in Chile, Argentina, Brazil and Venezuela.



Update on NZS 3604 timber-framed buildings standard

As advised in December 2008, Timber-framed buildings NZS 3604:1999, the foremost Standard in New Zealand for the building and construction industry in New Zealand, is being revised. The project is now well underway. The draft revised Standard is planned for public comment release in late 2009. Publication is scheduled for late 2010/early 2011.

Standards New Zealand notified key stakeholders about the revision in late 2008 and sought feedback. Many comments were received and these have been passed to the technical committee. A leadership group and a technical committee have been formed to review the Standard, and five industry-specific work groups have been set up to review specific sections of the Standard.

NZS 3604 is an important Standard in the building and construction industry, setting a minimum standard for the design and construction of timber-framed houses in New Zealand. About 90% of timber-framed houses in New Zealand feature elements of NZS 3604 in their design and construction. More >>



AbitibiBowater reducing capacity by 1 million tonnes

AbitibiBowater Inc. plans to reduce its annual production capacity in Canada by one-third, or 1 million tonnes, the union representing workers said on 6 August reported The Globe and Mail. AbitibiBowater CEO David Paterson, however, declined to confirm the state


Chinese MacGyver builds working helicopter out of wood

 
Twenty year old Chinese farmer Wu Zhongyuan built himself a helicopter using only - according to the man - what he remembers of middle school physics lessons and "relevant knowledge [found while] surfing the Internet via my mobile phone."

Well, sure looks like things worked out. His single-seater conveyance has blades made from the wood of an Elm tree, a frame reinforced with steel pipes and uses an engine from a motorcycle - all for around $1,600. Wu claims the 'copter can get him as high as 2,600 feet, though it seems he's grounded for the time being as the Chinese government has forbid him to fly because of safety reasons.

Wu, whose father pegs him as a gadget lover who would always take things apart, says that he "had this dream from childhood of not needing to climb mountains anymore. I wanted to go to school in my own flying machine." Source: TreeFrog Daily Forestry News




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...and one to end the week on...Dear God

There was a man who worked for the Post Office whose job was to process all the mail that had illegible addresses.

One day, a letter came addressed in a shaky handwriting to God with no actual address. He thought he should open it to see what it was about. The letter read:

Dear God,

I am an 83 year old widow, living on a very small pension. Yesterday someone stole my purse. It had $100 in it, which was all the money I had until my next pension payment. Next Sunday is Christmas, and I had invited two of my friends over for dinner. Without that money, I have nothing to buy food with, have no family to turn to, and you are my only hope. Can you please help me?

Sincerely, Edna


The postal worker was touched. He showed the letter to all the other workers. Each one dug into his or her wallet and came up with a few dollars.

By the time he made the rounds, he had collected $96, which they put into an envelope and sent to the woman. The rest of the day, all the workers felt a warm glow thinking of Edna and the dinner she would be able to share with her friends.

Christmas came and went. A few days later, another letter came from the same old lady to God. All the workers gathered around while the letter was opened.

It read:

Dear God,

How can I ever thank you enough for what you did for me? Because of your gift of love, I was able to fix a glorious dinner for my friends. We had a very nice day and I told my friends of your wonderful gift. By the way, there was $4 missing. I think it might have been those b*******s at the post office.

Sincerely, Edna




One more. The World's Shortest Fairy Tale?

Once upon a time, a guy asked a girl 'Will you marry me?' The girl said, 'NO!'

And the guy lived happily ever after and rode motorcycles and went fishing and hunting and played golf a lot and drank beer and scotch and had tons of money in the bank and left the toilet seat up whenever he wanted.

The end.




And on that short 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


This week's extended issue, along with back issues, can be viewed at www.fridayoffcuts.com


We welcome comments and contributions on Friday Offcuts. For details on advertising for positions within the forest products industry or for products and services, either within the weekly newsletter or on this web page, please contact us.

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