Friday Offcuts – 28 February 2025
Click to Subscribe - It's FREE! Welcome to this week's edition of Friday Offcuts.Australia’s housing crisis takes centre stage with FWPA’s More Houses Sooner report, projecting a need for 2.48 million new dwellings by 2034—where timber plays a key role. In support of future supply, the Australian government has committed A$10.4 million to new plantations, while in New Zealand, trials are repurposing woody debris into sustainable road material. Innovation and sustainability remain industry priorities, with the upcoming Forest Bioeconomy 2025 Conference highlighting emerging opportunities for the sector. A new study questions forestry’s limited role in Australia’s carbon crediting scheme, timber workers in the Snowy Valleys vote on a union split, Toi Ohomai’s timber machining apprenticeship undergoes changes, and global trade shifts impact log markets. Plus, we spotlight FSC-certified forestry, mass timber projects, and New Zealand’s evolving weed invasion challenge. Finally, the NZ leg of the WoodTECH 2025 technology series is less than two weeks away. With support from the WIDE Trust, we’re offering up to five free places for young sawmilling and wood processing professionals, under 35, who haven’t yet registered for NZ. Certain criteria apply—email gordon.thomson@ innovatek.co.nz for details. Read these and more in another packed edition of Friday Offcuts.
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This week we have for you:
FWPA launches More Houses Sooner report
More Houses Sooner is the first and only in-depth
study to project the total dwellings required by 2034 to reach
equilibrium and affordability levels. The research indicates
Australia needs to deliver approximately 2.48 million new dwellings to
keep pace with population growth and address historic unmet demand. This
equates to roughly 225,400 new dwellings per year.The report commissioned by Forest & Wood Products Australia’ (FWPA) Statistics and Economics program, provides scenarios for filling the housing supply gap by increasing timber use in multi-residential constructions and encouraging builders to adopt more prefabricated home solutions. These insights support FWPA’s members and the wider industry to make strategic decisions, and explore these opportunities to grow the market for wood products. Population growth is a key driver of housing demand, with projections showing nearly 31 million people and a decline in household size to fewer than 2.4 people per household by 2034. FWPA Head of Built Environment Programs, Kevin Peachey, says increasing timber usage in construction can help address the current imbalance of supply and demand. “There are opportunities and challenges for the industry. Leveraging prefabrication systems and factory-based manufacturing offers reduced costs and construction times compared to conventional methods. Systemic change is required, all of Australia will benefit from more efficient use of timber in the built environment, as this will help meet one of society’s most important and pressing needs of building more houses sooner.” Lead Researcher Tim Woods says the report was compiled using integrating historical trends in housing affordability, disposable income, and population data. “Other reports in the market focus on projecting ABS building activity data, such as dwelling approval, commencement, and completion, without involving other indicators relevant to housing issues. By using an integrated analytical approach, this report provides practical pathways to fill the housing supply gap.” Historically, Australia produced an average of 192,100 dwellings per annum over the decade to 2024. The More Homes Sooner analysis indicates that Australia can deliver the additional 2.48 million dwellings the nation requires over the coming decade to meet the demand. FWPA is confident that the forestry and wood products industry is uniquely placed to contribute to a future where more Australians can realise the dream of owning a home. View the Report Source: FWPA Shred wood road trial shared with industry
Converting woody debris into roading material is proving to be a
winner for the environment, both in minimising gravel use and mitigating
build-up.Managing woody debris left after harvesting is a common challenge in forestry. Once it is cleared from the cutover and safely stacked, the key issue remains—how to handle the material. Transporting it out of the forest is costly, while leaving it piled on landings can pose environmental risks during severe weather events. With funding from Forest Grower’s Research (FGR), Pan Pac and FGR have been trialling a promising solution – using it as roading material. On Friday 21 February, around 50 forest industry representatives from across the North Island joined Pan Pac and FGR in Mohaka Forest to get a first-hand look at the shred wood road trial in action. Compared to metal roads, shredded wood roads offer the environmental advantage of repurposing waste wood while reducing traditional roading material transport distances, thereby lowering the carbon footprint. Hamish Scown, Pan Pac Forests Operations Technical Coordinator, who has played a key role in running the trial, says the trial has produced some promising results so far, and has helped to identify the limitations and maintenance requirements of shred wood roads. “The results so far indicate that shred wood roads could be a viable alternative to metal roads, where the grade is not too steep in wet conditions. In any case, in dry conditions loaded stems units and 50t conventional trucks have been leaving the site uphill loaded at 11.5% with no run up. It is likely that a light spread of traction metal will help in wet conditions as per normal wet weather roading operations and that is something we will try next without too much impact on cost.” The trial is currently in Phase One, comparing different sized shred (200mm, 150mm and 200mm with 80mm ‘top dressing’). The roads are 50m long trial sections originating at the landing loadout bays. The best-performing particle size mix from Phase One will then be used in Phase Two, where roads of different depths, preparation and application methods will be put to the test. When complete, Pan Pac and FGR hope to produce a tech note (specifications, application method, and rough costings) on shred wood roads, which will be made available to the wider industry. Source & image credit: Pan Pac Forest Products  AFPA welcomes Government’s support for new plantations
The Australian Forest Products Association (AFPA) welcomes and thanks
the Australian Government for its latest round of funding
announced for the Support Plantation Establishment Program (SPEP)
that will bolster our national stocks of local timber and
wood-fibre for the decades ahead, Chief Executive Officer of AFPA, Diana
Hallam said today.Federal Minister for Agriculture, Fisheries and Forestry the Hon Julie Collins MP has announced $10.4 million for 14 new softwood and hardwood plantation projects through Round 3 of the SPEP. The projects range from 21 to 1,928 hectares – the total area around 5,500 hectares across NSW, Victoria, WA, SA and Tasmania. “While we have a surplus of building construction timber right now, we are actually forecasting shortages in the plantation timber that we’ll need in decades to come to build new homes and manufacture a range of essential everyday products. That’s why it’s important we get more timber production trees in the ground right now, to fend off those future shortages,” Diana Hallam said. “This announcement today is the latest in a reform program agenda carried out by the Federal Government over the past three years to help Australia’s forestry sector and the supply chain. In addition to funding for plantation expansion, further funding has been delivered during this term of government to enhance timber and wood-fibre manufacturing as well as establish the new Australian Forest and Wood Innovations (AFWI) – all of which was advocated for by AFPA ahead of the 2022 Federal Election. “Getting more timber production trees in the ground is critical, which is why ahead of the 2025 Federal Election, AFPA is calling for a $200 million extension to the SPEP as part of our broader Australian Timber. Australia’s Future Platform to help our sector realise its potential. “AFPA again thanks the Albanese Government for today’s announcement and will continue to work with the Government and Opposition ahead of the Federal Election to secure the best national outcomes for Australia’s forestry and timber sector – that is important for local employment, products, forest management and fighting climate change,” Diana Hallam concluded. Source: AFPA  Forest Bioconomy 2025 – New opportunities
New Industry Conference: Forestry sector set for
biomanufacturing boost – A recent report from Europe
on the opportunities for natural resources including wood fibre has been
identified by Scion Research leader Florian Graichen as a potential
industry step change for New Zealand forest owners. A recent post by Mr
Graichen highlighted key factors including:Biomanufacturing: Europe’s Industrial Edge in a Global Race — What about New Zealand? (A very insightful paper from EuropaBio – the European Association for Bioindustries) – Biomanufacturing, the application of biotechnology at an industrial scale to produce novel or substitute products, is a fast-growing and integral part of the EU’s economy. In 2018, it contributed EUR 34.5 billion to the overall GDP. Sustainable Innovation Across Industries: Industries face challenges in reducing their environmental footprint while staying competitive. Biomanufacturing is expanding its impact by providing new sustainable technologies supported by more resilient supply chains. A global race is underway to produce innovative and scalable products that will transform the health, chemical, and food industries, positioning Europe on an industrial edge. Biotech & Biomanufacturing – opportunity for New Zealand?: As New Zealand’s leading institute for industrial biotechnology, advanced manufacturing and forestry, Scion is pioneering multiple bioproduct and biomanufacturing solutions with industry partners. It is critical for New Zealand’s aspirations around transitioning to a productive, prosperous and resilient low-carbon economy, supporting high value jobs and exports. Advances in biomanufacturing and biotechnology are catalysts for creating a prosperous future. “Several key technologies are in development to use forest resources for higher value export products both locally and overseas”, says conference director, John Stulen. “Local entrepreneurs are already developing new products from sustainable resources.” Case studies include:
“We are bringing international startup leaders together with forest and wood technology innovators to supercharge new processes to complement and eventually replace pulp and paper mills to a large degree,” says Stulen. “We are also working closely with officials and the Minister at MPI/Te Uru Rakau, Scion’s bioeconomy experts and key industry leaders to showcase sustainable and potential bioeconomy export products from New Zealand’s vast forest resources.” In May 2025 leaders in business innovation and primary industries will gather at this new circular economy event – our NEW Forest Bioeconomy Conference. For further details, contact John Stulen, Innovatek Ltd, Email: john.stulen@innovatek.co.nz Mob: 027 275 8011 Source: Innovatek  Market Report for Feb 2025 - Laurie Forestry
Log prices during January and February have remained
stable across both export and domestic segments which has been
good for all involved across the forestry supply Chain.As reported last month, there are signs of weakness in both China and India, with supply to both destinations well exceeding demand. Consumption levels are expected to pick up in both, with the expectation being some current downward price pressure risk will be averted if it does. Uncertainty prevails across all international spheres of business I am hearing about. With all eyes watching the Trump mania and just how this will all play out. The illustrious Donald might have been best to study Newtons Laws of Motion. In simple terms, had he done so he would know for every action (force) there is always an opposite an equal reaction (force).” Thus, as I mentioned last month, trade is demand and supply. Whatever force may be exerted on one, the equal and opposite reaction will be continuance done differently. Erstwhile of course it will be US consumers who will pay to ensure the forces are equalised. China remains flat as all this plays out and the resulting nervousness about exports to the US dominates. Daily consumption is weak at around 10,000 m3 as at mid-February which in part reflects workers quietly returning from their homelands after CNY. Usage will need to climb quickly through 50,000 m3 per day and inventory will need to stay below 4mil m3 to retain any level of confidence. Inventory is currently sitting at 3.9million. On a brighter side, deliveries from NZ were below expectation in first half of February at 17 and that is helping retain some levels of confidence. For the moment, the market indicator A grade is sitting at CFRUS$118 per cubic metre and no one is suggesting movement either way until the usage v supply number starts to reveal its true colours. In India, A grade has fallen from CFRUS$145 to $125 per m3 over the last 4 months, although most commentary is suggesting buyers are not lining up to issue LC’s even at the new levels. Some bonded cargos are being offered at US$115 with some stock now very old and the market attempting to use that as leverage. Daily usage numbers are weak, but all expect this to increase in the next few weeks. Some India sawmill owners use bonded cargos as a mechanism to defer duty and GST payments so some of the 103,000 m3 currently sitting in bond is not distressed cargo. Quite working out which is which would be more difficult than trying to work out what is going on inside the US Presidents head. More >> Source: Laurie Forestry CFMEU faces major shake-up as timber workers vote on exit
Hundreds of timber workers in the Snowy Valleys region are set
to participate in a secret ballot on whether to leave the Construction,
Forestry, Maritime, Mining and Energy Union (CFMEU) and form a separate
entity, the Timber, Furnishing and Textiles Union (TFTU).
The ballot, overseen by the Australian Electoral Commission, will be held from 24 February to 14 April. According to Alison Rudman, Secretary of the NSW District of the CFMEU’s Manufacturing Division, the move reflects growing dissatisfaction among timber workers with their current union affiliation. “Our members have been clear—they want out of the CFMEU and are pleased to be voting ‘YES’ to becoming the TFTU,” Rudman said. She pointed to concerns among timber workers in areas such as Tumut and Tumbarumba over the association with the CFMEU’s Construction Division, which has faced significant public scrutiny. More >> Source: Australian Manufacturing Changes to Toi Ohomai timber machining apprenticeship
A Rotorua tutor’s job has been saved and 48
students can continue their timber machining apprenticeships
after changes were made to a proposal to disestablish them.Students doing the New Zealand Certificate in Timber Machining (level four) apprenticeship programme at Toi Ohomai’s Waipā Campus will continue their training on-site this year. Next year, qualifications will be moved to “on-the job”, Toi Ohomai has confirmed. However, one industry manager says a lack of on-site training “could hold back timber manufacturing in New Zealand”. More >> Source: Rotorua Daily Post Image credit: Toi-Ohomai  10 top mass timber buildings opening in 2025
As 2025 begins to take shape, the architectural community is eagerly
anticipating the debut of several innovative mass timber buildings.We’ve curated a selection of ten from over 2,000 new projects supplied by Stora Enso set to launch this year. Each building exemplifies the versatility and cutting-edge advancements in construction that significantly reduce emissions using climate-conscious materials and biophilic design. The World Expo 2025, Osaka, Japan The 2025 World Expo in Osaka promises to be a showcase of global innovation, and the Czech pavilion made from a prefabricated mass timber kit of parts (Sylva™ by Stora Enso delivered by A2 Timber) is a standout example. The breathtaking geometric design concept, rooted in the principle of raw material efficiency, ensured rapid on-site assembly. Expect to see a 260-meter-(853 ft) long educational trail, with views of Osaka Bay, and a multifunctional auditorium that will offer a rich program throughout the entire exhibition. A must-visit for anyone passionate about architecture and environmental stewardship. Timber Square, Bankside, UK In the heart of London, Timber Square, designed by Bennett’s Associates is poised to become a landmark of sustainable urban development. Landsec’s mammoth 370,000 square feet scheme reconstructs a former printworks into two office-led timber buildings (15 floors and 10 floors high) combining retail units and leafy, public space. It is set to be the largest commercial development in the UK to cross-laminated timber, delivered by Hybrid Structures and will be one of the most vibrant new hubs for work and leisure. More >> Source: Stora Enso Image Credit: A2 Timber/Apropos Architects SnapSTAT - Tariff threats: Who's most vulnerable? China is New Zealand’s top goods export destination and accounts for the largest US trade deficit – and is both of these things by a decent margin. While that makes developments in China particularly important for New Zealand, it’s also worth noting that many of our other key trading partners are also indirectly exposed to China in a similar manner.
More: ANZ Research Why is forestry being underutilised in ACCU Scheme?
A recent study published in Land has highlighted the underutilisation of
the forest sector in Australia's carbon crediting mechanism, the ACCU
Scheme. The study, titled "Options for Forest Sector Participation
in International Carbon Markets: Unlocking the Carbon Market Potential
of Australia’s Forest Sector," analysed the participation of
the forest sector in international carbon markets and found significant
disparities between the sector’s participation in those markets
compared to Australia.Despite Australia being the seventh most forested nation in the world, less than 1% of Australia's current native forest and plantation estate is eligible for the ACCU Scheme. This limited participation can be attributed to several constraints within the ACCU Scheme, primarily the limited number of methods available for the forest sector to engage in and constraints within those that is can currently participate. The study found that only 3.27% of ACCUs have been issued to forest sector projects. This is despite research showing that how forests are managed significantly impacts their carbon sequestration potential. This low level of forest sector participation in carbon markets is not mirrored in the major international carbon markets. The study identified that forest sector opportunities are prevalent in the top five international voluntary markets, being; the Verified Carbon Standard, Californian Compliance Offset Program, Gold Standard, American Carbon Registry, and Climate Action Reserve, along with the top four compliance markets by size, including; the Chinese ETS, EU ETS, California Compliance Offset Program, and the South Korean ETS. Forest sector projects, encompassing 21 types, accounted for 46% of the voluntary market share in 2021. Specifically, forest projects make up over 50% of the South Korean ETS. For the Californian Compliance Offset Program, forest offset credits account for 85% of all carbon credits issued under that scheme until 2022. These examples highlight the significant potential for forest sector participation in carbon markets, which is currently underutilised in Australia. The study also identified several options for increasing forest sector participation in the ACCU Scheme. These include revising existing methods, developing new ones through the ACCU Scheme’s proponent-led method development process, and increasing participation in international voluntary markets. By embracing lessons from international practices and addressing current methodological constraints, Australia can realise this potential. Doing so would not only bolster the nation’s climate change mitigation efforts but also unlock the co-benefits of biodiversity, water quality, soil productivity, and ecosystem resilience, ultimately contributing to a sustainable and resilient bioeconomy. More >> Source: MDPI Australian businesses gain firsthand insights at forest walk
Some of Australia’s largest retailers and manufacturers
recently gathered at HVP Plantations in Victoria for the FSC® Forest
Walk event, gaining first hand experience of FSC-certified
forestry in action.The event provided a unique opportunity to see firsthand the sustainable forestry requirements under which FSC-certified products are sourced and engage with those who uphold these standards. With over 1.1 million hectares of FSC-certified forest and more than 260 FSC-certified organisations across Australia, the commitment to responsible forestry continues to grow. Leading Australian companies, including Woolworths Group, Coles Group, Bunnings, Visy, Essity, Kimberly-Clark, Australia Post, and more, attended the event to deepen their understanding of how FSC certification supports sustainable supply chains. These organisations source FSC-certified materials for packaging, furniture, and household products, ensuring that forest resources are managed in line with their ambitious responsible sourcing commitments. Kimberly-Clark Professional, an FSC chain of custody certificate holder, reflected on the value of seeing FSC-certified forestry in practice. “Understanding the FSC system in a real-world setting was an invaluable experience,” said Julian Westcott, Account Manager at Kimberley-Clark Professional, “Seeing firsthand the commitment of forest managers to responsible practices gives us even greater confidence in the materials we source. It strengthens our ability to make informed decisions and communicate the importance of FSC certification internally and to our customers." For Coles Group, an FSC promotional licence holder, the event reinforced the significance of responsible sourcing. “Being on the ground and speaking directly with the HVP Plantations team managing these forests gave us a much deeper appreciation for the rigorous work behind FSC certification,” said Coles Own Brand Lead Sustainable Packaging Manager Emma Buchanan. “It’s one thing to read about sustainability standards, but witnessing them in action drives home why FSC certification is so important to our business and the products we offer consumers.” More >> Source & image credit: FSC (Forest Stewardship Council Australia & New Zealand)  Study explores reasons for weed invasion success in NZ
Lodgepole pine – a wilding conifer considered one of New
Zealand’s worst weeds – has evolved to grow and spread
faster here than it does in its native North America.A Scion study, the focus of a New Zealand Journal of Ecology article published on February 21, seeks to understand why, to help inform strategies for addressing the problem. This study is part of Scion’s Vive la résistance programme, which started in 2021 and has $12.85 million in funding through the Ministry for Business, Innovation and Employment’s Endeavour fund. The study investigated cone and seed traits of lodgepole pine (Pinus contorta) from several major invasion sites across NZ compared with its native range. The comparison across six sites showed the average number of filled seeds per cone was 74 – at least three times higher than that recorded in its native range and about 50 percent higher than previous NZ estimates. Scion’s researchers predict this increase in the number of seeds has likely enhanced the invasion success of lodgepole pine by allowing it to spread quickly and overwhelm ecosystems. “The average number of seed scales per cone is similar between NZ and the native range,” Scion invasion ecologist and article lead author Tom Carlin says. “Therefore we suggest this trait shift towards a greater seed holding capacity may be due to an increase in the proportion of fertile scales.” “This demonstrated trait shift is unsurprising given lodgepole pine has fewer natural enemies in New Zealand, thrives in our growing conditions and has potentially produced more invasive hybrids since its introduction.” Some sites were found to have produced fewer seeds, such as Craigieburn near Christchurch, where the national wilding conifer control programme has had some success in removing pollen-producing individuals. “Keeping the number of pollen-producing adults low slows population spread as seeds don't get fertilised,” Tom says. More >> Source & image credit: Scion NZ company behind the robotic log scaler is acquired
New Zealand-based company Robotics Plus, a specialist in
agricultural automation solutions, today announced it has entered into
an agreement to be acquired by Yamaha Motor Co., Ltd. to form the
foundation of Yamaha Agriculture, Inc., a new company focused on
delivering autonomous equipment and AI-powered digital
solutions that help growers in the specialty crop market become
more sustainable, profitable and resilient in the face of scarcer
resources and climate change.Robotics Plus specialises in developing automation solutions for agriculture, combining expertise in robotics, automation, sensing, and data analytics. With a proven track record of delivering innovative technologies to global markets, the company continues to push the boundaries of agricultural automation. Its latest development, Prospr, is a robust, autonomous, multi-purpose hybrid vehicle designed to perform a range of orchard and vineyard tasks. Built to tackle labour shortages and enhance efficiency, precision, sustainability, and safety, Prospr is capable of multiple activities including spraying and weed control, with additional attachments such as mowing in development. Robotics Plus’ innovations also includes the Āporo Fruit Packer, which automates fruit packing, and a robotic log scaler to automate log measurement for trucks and trains. Since 2017, Yamaha Motor, the parent company of newly launched U.S.-based Yamaha Agriculture has supported Robotics Plus with strategic investment to drive development of agricultural automation technologies and to expand its presence in the agtech sector. Following Robotics Plus’ acquisition, the company will continue to operate its core business at its headquarters in Tauranga, retaining high value skilled jobs and IP development in New Zealand, while benefiting from the support of Yamaha Agriculture, to grow globally. Steve Saunders, Co-founder and Chief Executive Officer of Robotics Plus says, “Robotics Plus was founded on a vision to develop state-of-the-art robotic technology to solve some of the global agriculture industry’s biggest challenges, including labour, productivity and sustainability issues. This acquisition is a testament to the strong partnership we’ve built with Yamaha over the years, driven by a shared vision and commitment to empowering large-scale growers. Innovations like Prospr are at the heart of Yamaha Agriculture’s global strategy, enabling a data-driven approach to precision agriculture. With Yamaha’s support, we are poised to accelerate our robotics innovations, significantly scale our hardware manufacturing, and expand further into key markets such as the US, and beyond.” More >> Source & image credit: Robotics Plus  Jobs
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