Friday Offcuts 4 April 2025
Click to Subscribe - It's FREE! Welcome to this week's edition of Friday Offcuts.The big story this week is the impact of new U.S. tariffs on global markets. While New Zealand timber and lumber exports remain exempt, Australia could see an increase in foreign timber imports. The wider industry’s future will depend on how key players—including the EU, India, and Asia—respond. An extended trade war benefits no one. On a more positive note, Tasmania has unveiled a world- class sawmill following a A$14M upgrade of NSFP's Southwood facility. The Green Party is pushing for stricter regulations to curb misleading environmental claims in forestry, and Timber Queensland has launched a new website and magazine promoting industry resources. In research and innovation, Finnish robotics technology is set to enhance NZ’s forest tree propagation and breeding, while a new report on gully erosion in Tairāwhiti should provide valuable insights for land and forest management in NZ. Finally, we highlight key industry events and achievements, from the Forestry Hub’s success at Central Districts Fieldays, to the launch of new nature-based tourism initiatives in the Snowy Valleys. Read these and more in another packed edition of Friday Offcuts.
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New tariffs, but not yet on NZ timber and lumber![]() Exports of radiata pine products from New Zealand to the United States were estimated at $358 million, making the United States our third largest export market for forest products behind China and Australia. Our timber and lumber products are highly valued in the United States for their quality and appearance within the domestic DIY and home building market. The exemption comes about through internal United States lobbying, by the likes of the American Building Materials Alliance and National Association of Home Builders, who have been speaking with White House advisors and providing formal letters to the President urging him to rethink placing a tariff that would weaken a critical supply chain. As a response, the administration has recognised that raising costs on timber and lumber would hurt housing affordability, disrupt construction, and weaken an important supply chain. An on-going challenge facing home builders in the United States is the cost and availability of building materials such as lumber, with price increases of just over 30 percent over the last few months. Further supply chain disruptions from increased tariffs coupled with increased demand for materials could also hinder rebuilding efforts in areas affected by natural disasters, which the administration has pledged to rebuild as quickly as possible. Given this temporary tariff exemption, we thank our kindred Associations in the United States for making this happen. We now wait for completion of the s. 232 investigation. Source: WPMA US tariffs and its impact on Australian timber imports![]() AFPA’s Chief Executive Officer, Diana Hallam said, “Aside from obvious and very real impact on our direct exporters to the US, we’re concerned the ricochet effect of the tariffs will mean some countries could resort to dumping their large export volumes intended for the US, to markets like Australia. There is the real prospect that Australia could experience an influx of dubious, imported timber and wood-fibre products – impacting a local industry already under pressure from the depressed housing market." It’s difficult to forecast the full impact of these tariffs, but it signals that we’ll need to be more vigilant at our borders. Two key requests in AFPA’s Australian Timber. Australia’s Future Election Platform are country of origin labelling, so consumers know where the timber product they’re buying comes from, Australia or otherwise, and ongoing Commonwealth funding to crack-down on illegally logged timber. We know the illegal trade is an increasing problem for Australia because a Commonwealth Department of Agriculture, Fisheries and Forestry’s (DAFF) testing trial last year found a quarter of tested imported products were found to be inconsistent with declared species, origin, or both. Ahead of the Federal Election, we call on all sides of politics to commit to our Election Platform in full, but in light of today’s tariff announcement, especially the country of origin labelling measure and increased support to crack-down on the illegal timber trade at our borders. “While waiting to see how global trade will shift in reaction to today’s US tariff decision, the Federal Government can act to help inform consumers of timber and wood-fibre through country of origin labelling and making sure there’s as much vigilance at our borders as possible to catch illegal product,” Diana Hallam concluded. Source: AFPA ![]() NZ log market report - March 2025![]() The At Wharf Gate (AWG) prices for export logs remained flat in March. Demand has only recently started to increase in China, and daily log demand is now 60k m3 per day. AWG prices in New Zealand in Quarter 1 2005 have benefitted from relatively low shipping costs and a weaker NZD. Quarter 2 is shaping up as a more difficult quarter, with shipping costs increasing and the NZD strengthening against the USD. Log exporters cannot obtain price increases in China to cover these increased costs. Indeed, market prices seem to be softening. The domestic log and timber market in New Zealand remains quiet, with building consent approvals trending at multi-year lows. The PF Olsen Log Price Index remains at $123. The Index is now $5 above the two-year average, and $2 above the five-year average. Domestic Log Market Demand for timber in New Zealand remains weak, reflecting the broader slowdown in the construction sector. Building consent approvals have been trending at multi-year lows, with residential and commercial construction projects facing delays or cancellations due to high financing costs and reduced government spending on infrastructure.
China softwood log inventory has reduced to just over 3.7 m m3 and log demand has increased over the last month with port off-take of logs currently about 60k m3 per day. The CFR price for logs is softening with a widening price range achieved by exporters. Towards the end of March, most exporters are selling A grade logs in the range 115-117 per JASm3. There are very recent reports of two exporters offering 113 USD per JASm3 for A grade logs. The Caixin China General Manufacturing PMI rose to 50.8 in February 2025 from 50.1 in the previous month, surpassing market expectations of 50.3. This marked the highest reading since last November, with output and new orders growing the most in three months. Foreign sales also increased for the first time in three months. The Chinese government has maintained its economic growth target at approximately 5% and is implementing stimulus measures to mitigate the impact of rising U.S. tariffs. Export Log Market - India India is abuzz with the possibility of a New Zealand - India Free Trade Agreement. The Indian and New Zealand governments have set some optimistic timeframes for these discussions. While there is doubt this timeframe is realistic, it does show good intent from both parties. If New Zealand’s logs get import duty exemption in India, it will place New Zealand logs at parity with Australian logs. More >> Source: PF Olsen ![]() A$14M upgrade delivers Tasmania a world-class sawmill![]() Located in the heart of the Huon Valley, NSFP Southwood will process up to 100,000 GMT of Plantation Hardwood annually, setting a new benchmark in sustainable timber processing and manufacturing. The facility integrates cutting-edge technology to process Plantation Hardwood E-Nitens sawlogs efficiently to produce high-quality shipping pallets for CHEP Australia—an essential element in securing Australia’s logistics network. The Honourable Julie Collins, Federal Minister for Agriculture, Fisheries and Forestry, officially opened NSFP Southwood on Wednesday, 19th March 2025. “We can now take a certified Plantation Hardwood log and in under 30 minutes transform it into a fully manufactured, painted pallet. This seamless process—from cutting the log into pallet components to final assembly—makes NSFP Southwood one of the most efficient facilities of its kind,” said Andrew Walker, CEO of NSFP. “This investment ensures we maximise the value of our Plantation resources while maintaining a firm commitment to responsible forestry practices.” A Commitment to Sustainability The expansion of NSFP Southwood aligns with NSFP’s dedication to sustainable forestry. Plantation timber is a renewable resource that supports carbon sequestration and reduces pressure on native forests. By investing in cutting-edge technology, NSFP Southwood enhances efficiency, minimises waste, and strengthens Tasmania’s reputation for world-class sustainable timber production. Strengthening Australia’s Supply Chain Beyond timber processing, NSFP Southwood’s advanced manufacturing facility plays a crucial role in Australia’s supply chain security. By producing hundreds of thousands of CHEP Australia shipping pallets annually, the facility helps keep industries such as agriculture, retail, and logistics operating smoothly. “The investment in NSFP Southwood is not just about growth—it’s about resilience,” added James Neville-Smith, NSFP Chairman. “By manufacturing shipping pallets locally, we are reinforcing Australia’s logistics infrastructure and reducing reliance on imported materials.” The transformation of NSFP Southwood marks a major milestone for Tasmania’s timber industry, supporting local jobs, boosting the regional economy, and demonstrating the potential of sustainable Plantation forestry. More >> Source & image credit: NSFP ![]() Greens plan to stamp out misleading environmental claims![]() “While we disagree with a number of aspects of the minor party’s Green Australia policy, including its outdated and longstanding plans to cease sustainable native forest harvesting, the announcement that the Greens want to crack-down on misleading and ambiguous environmental claims – is very much welcomed and refreshing,” Diana Hallam said. “Radical activists consistently create and promote disinformation about Australia’s forest industries and particularly the sustainable native forest harvesting segment of the sector – and we’d welcome action on that.” Common disinformation pedalled about our sustainable forest industries includes:
“I look forward to working with the Greens on cracking down on activists pedalling ‘misleading’ and ‘ambiguous’ environmental claims and call on the other parties to support the initiative,” Diana Hallam concluded. Source: APFA March review of NZ's international markets![]() A weakness in demand in China is being primarily driven by a combination of tariff concerns, domestic prices dropping and manufacturers lacking confidence. This is having a broader cumulative impact with most export agents experiencing buyers starting to refuse to issue contracts and Letters of Credit. Most are saying they believe prices will drop and they are waiting to see where the bottom is. Whilst we might otherwise have a sense of history repeating, this time any movements being quoted appear to be suggesting a few dollars only. All are quoting the Trump factor as causing as much nervousness amongst China manufacturers as any single element. Increases in shipping costs are starting to be the order of the day with up to US$10 per cubic lifts for some voyages. The Red Sea Conflict is not helping. With Houthis rebels attacking commercial shipping, hundreds of vessels are diverting to the longer route around Cape Horn to get to the UK and Europe. Some commentators have suggested shipping costs are returning to slightly above where they were pre COVID. This is not good news for those with an expectation the new levels could be short-lived. Erstwhile back in China, the total softwood log inventory has remained unchanged at about 3.9mil m3 and off port sales have been running along at around 60,000 per day. Again. the market fundamentals are not entirely unfavourable, so we do not expect the market to crash as it did in Q1 2024. Recent stimulus packages announced by the China government are not thus far adding economic revival to the extent of fixing a massively over stocked housing market. Some commentary has suggested there will be better times ahead as a consequence of the Government targeted spend. In India the signs are more promising. February log vessel arrivals totalled 7 with the same number predicted in March. This is about the right number with inventory falling and some of the distressed cargo held in bond also starting to move. Whist we can expect to see better price stability in India, shipping remains the most significant challenge, both in terms of cost and availability. The net impact of the current tariff on NZ logs is being quoted as the largest ticket item currently preventing us from growing our market share. At present, NZ logs sold to India customers attract effectively a US$7 per cubic metre tariff. Thus, many forestry eyes are focussed on our Prime Minister and Trade Minister Todd McClay as they attempt a Free Trade Agreement. More >> Source: Laurie Forestry ![]() Rural groups call for FENZ review![]() The change gave the new entity - referred to as FENZ - the legal mandate to respond to a wider range of emergencies and weather events - something it was previously doing outside of its legislation. The change also promised better co-ordination across the country, centralised training and funding and better support for volunteers. More >> Source: RNZ The Forestry Hub - a highlight at Central Districts Fieldays![]() With good interest, across the forestry industry, the hub allowed attendees to learn more about the forestry sector and to have their questions answered while free children’s books and resources were handed out to the crowd by Discover Forestry. Erica Kinder stated, “A highlight was the running of the Golden Loader competition for the third year, the chance to find the best loader driver in forestry. We had entrants from as far away as Murupara, Turangi and Hawkes Bay. One of the best bits for me was seeing the brother and sister due Tracey and Jacob Keefe from McCormack Logging Ltd in Rotorua fight it out for sibling bragging rights. Both awesome loader drivers who had many whanau supporting them in Fielding. Congratulations to the 2025 champion, John Tuckey from Graham Tuckey Contracting in Masterton, our new Log Loader Legend!” John beat out 18 competitors to take home the trophy, $500 in vouchers and bragging rights, to the delight of the large crowds at field days who gathered to watch the competition run over two days. CD Field Days has been running for over 30 years and is the largest regional field days in New Zealand, generating over $50 million in sales revenue, the Field Days has now grown to more than 500 sites. This is the first time the Golden Loader Competition has been run at the regional field days and there is now appetite to take the competition to other areas potentially at regional shows or field days to showcase forestry skills with machinery and allow the public to witness forestry activities outside of the bush. Source & image credit: Southern North Island Wood Council Finnish robotics technology to support NZ forest research![]() A robot jointly developed by Luke and Xamk at the latter’s Electronics 3K Factory uses AI and machine learning to sort somatic embryos (developed from non-reproductive cells), which enables faster and better selection of embryos for germination. The robot’s suitability for radiata pine somatic embryogenesis has been successfully tested. Somatic embryogenesis induces immature embryos to produce cell masses containing many tiny somatic embryos. These are encouraged to form mature embryos to develop into seedlings. The agreement is part of a research programme funded by FGR – Tissue Culture Techniques for 21st Century Forests – that aims to scale up propagation and automate processes of somatic embryogenesis for radiata pine. Scion New Value from a Digital Forest and Wood Sector portfolio leader, Michael Watt, says this international partnership shows what can be achieved when research and technology unite to resolve global forestry issues. Upcoming research stages will concentrate on advancing the robot’s capabilities and developing a commercial system for sorting somatic embryos. Additionally, the partnership aims to explore opportunities for commercialising the processes of somatic embryogenesis. Developing robotics through international cooperation supports sustainable forestry goals and improves forest management efficiency. Sharing knowledge about tree species and technology use may lead to important innovations also in other forestry areas. The programme aims to expand and automate the use of somatic embryogenesis of radiata pine for the commercial forestry industry. Scion is the science lead for the programme, which aims to create a reliable and cost-effective propagation method to boost productivity and ensure consistent results. Sorting mature somatic embryos before germination is time-consuming and subjective, which prompted Scion and FGR to explore the Finnish robotics system. Luke and Xamk jointly developed a robot prototype and software to automatically pick mature somatic embryos for germination. It uses automated image capture using machine learning and artificial intelligence to determine if the embryo is likely to germinate or not. The robot was initially programmed for use on Norway spruce, and the tissue culture programme is exploring its suitability for radiata pine. In September 2023, Scion staff, including scientist Jana Krajňáková, visited Luke and Xamk to explore if the machine could be used for radiata pine embryos. Successful trials led to FGR purchasing it in October 2023. In May 2024 the robot arrived at Scion with Xamk engineer Elmar Bernhardt, who assembled it. Scion also hosted Luke scientist Sakari Valimaki while he taught the Tissue Culture laboratory team how to work with the robot – and trained the robot on working with radiata pine. More >> Source & image credit: Scion ![]() New QLD website & magazine promoting facts and resources![]() Strategic Relations & Communications Manager Clarissa Brandt said as the public face for Timber Queensland the new website echoes the organisation’s mission to represent the State’s forest and timber products industry to government, specifiers, timber traders and the wider community. “The website provides up-to-date facts and resources to inform the community about the role forestry and timber plays in tackling climate change and the environmental benefits of well-managed forests and timber products,” said Clarissa Brandt. “From posting a new role on the free industry job board, accessing research and development reports to registering for an upcoming event and contacting us for technical advice the new website makes it easier to interact with the services we provide,” she said. “We’re always working on projects to build a proud, self- sufficient and expanding industry, a refreshed website makes it easier for members and other stakeholders to access the outputs of these initiatives.” Clarissa Brandt said that Timber Queensland’s our annual partner magazine, Grounded, is another communications channel that highlights the association undertakes to drive innovation, foster collaboration, and advocate for the interests of our members and the broader industry. Available to read online in an interactive flipbook format, the magazine explores some of the behind-the-scenes details of the people and projects working to help Queensland's forest and timber industry thrive. “This publication is a great read, either online or print out and leave in your lunchroom to learn more opportunity and directions for our industry, available scholarships and meet the companies that support our industry.” Access the Grounded magazine here, and Timber Queensland’s new website here. Source & image credit: Timber Queensland Research measures extent of gully erosion in Tairāwhiti![]() The report gives spatial analysis results, current assessments on gully activity, provides historical and current causal factors, and makes observations for next steps and further analysis. Key findings in the research include:
“The report will help inform government policy and land management decisions on future land use around gullies,” Ms Ward says. “This includes supporting identifying options for a Land Overlay 3B, (an extension of the current land overlay framework in the Tairāwhiti Resource Management Plan), where the worst eroding land across the region will need to transition out of plantation forestry and/or pastoral farming and into permanent vegetation cover.” The report was in response to a recommendation by the Ministerial Inquiry into Land Use (MILU) following the widespread damage by cyclones Hale and Gabrielle in 2023 to mitigate the effects of future storms events. Click here to read the report Source & image credit: Te Uru Rākau – New Zealand Forest Service ![]() New Snowy Valleys nature-based tourist attractions![]() The program of works includes: A new Sugar Pines visitor area replacing the iconic stand of Sugar Pines lost in the 2019-2020 Black Summer Bushfires, a new Wellness Walk at Pilot Hill Arboretum, a reinvigorated Alpine Ash Walk, environmental and visitor improvements at Paddys River and Paling Yards and upgrades to the Lochinvar Rest Area on Batlow Rd in Green Hills State Forest. The new Bago Sculpture Forest, forming part of the larger Snowy Valley Sculpture Trail, is a key feature of the new Sugar Pines, Pilot Hill and the Alpine Ash Walk with Stephen King’s Sculpture Grid Study IV funded by the project. Forestry Corporation received $2 million in grants and contributed significant in-kind resources. Minister for Agriculture, Regional NSW and Western NSW The Hon Tara Moriarty MLC said: “The NSW Government is committed to delivering tourism projects and infrastructure that unlock growth in our regions by building on regional visitor economies,” Ms Moriarty said. “The Bago State Forest project is one of these important projects, delivering tourism and environmental outcomes designed to build the Snowy Valleys visitor economy.” Forestry Corporation of NSW Chief Executive Officer Anshul Chaudhary said: “The forest and timber industry has always been an important part of the local community in the Snowy Valleys. Our Pine plantations and Alpine Ash forests were devastated by the Black Summer Bushfires and together with our staff, the timber industry, partners and community we have rebuilt and reinvested in our forests,” Mr Chaudhary said. “This program of forest-based environment and tourism works has helped the community to reposition as a regional tourism destination and has brought visitors back to the beautiful Snowy Valleys. Sculpture by the Sea Founding CEO & Artistic Director David Handley AM said: “The Bago State Forest and the Ash Walk are places locals will want to visit and share with their friends. We are grateful for the shared vision by many to achieve this great result,” Mr Handley said. “It has been a humbling privilege to create the Bago Sculpture Forest in partnership with the local communities across the Snowy Valleys and Forestry Corporation. We welcome visitors from near and far to wander the three sites in Bago Sculpture Forest to experience artworks by artists from Iceland to England and the Czech Republic to around the corner in Batlow.” “The feedback we are getting from visitors and locals about the sculptures, especially at Pilot Hill Arboretum and the 1.5km Alpine Ash Walk has been really positive with a considerable increase in visitation.” More >> Source & image credit: Forestry Corporation of NSW Timber Queensland tribute to Colin MacKenzie![]() Timber Queensland CEO Mick Stephens said “It is with heavy hearts, we note the passing of Colin MacKenzie, a visionary in timber engineering, a dedicated contributor to the built environment, a legendry dry-humoured colleague and a friend to so many in our industry nation-wide. His loss will be particularly felt by the many former and current Directors and staff of Timber Queensland who have known and worked with Colin over many decades, as well as the hundreds of member companies and technical bodies that relied and benefited from his advice.” “Timber Queensland, the broader timber and building industry and the community all owe a great debt to Colin MacKenzie. His tireless work and reputation to develop and educate the industry on relevant timber codes for structural integrity and safety is unquestionable.” Colin passed away on the morning of 24 March in Brisbane aged 75 following a period of illness and is survived by his loving wife Christine and daughters Aleisha and Trina. His influence on the timber and building industries will be felt for generations to come. Affectionally known as ‘The Timber Expert’ due to his skills and experience, his enthusiasm and commitment to timber product education will be hard to replicate. Colin’s journey in engineering began in Melbourne, where he graduated from the Caulfield Institute of Technology in 1974. With over 40 years of experience in all facets of timber and wood product design, use, and application, he became a leading authority in the field - particularly where timber was used in building and construction. His expertise was built from his early days as a Technical Officer with CSIRO’s Divisions of Forest Products and Building Research through to his leadership roles as Technical Director, TRADAC and later Manager of Timber Application and Use with Timber Queensland. Colin’s contributions were instrumental in advancing timber construction standards, ensuring structural integrity, and promoting innovative applications for wood products. Beyond his professional achievements, Colin was recognised with the ‘Stanley A. Clarke Medal’ from the Institute of Wood Science in 1999 - an acknowledgment of his outstanding contributions to timber technology. Colin’s legacy is not only in the structures that stand strong today because of his work but in the numerous generations of people he mentored, the standards he helped establish, and the industry he loved and gave so much. Timber Queensland and Colin MacKenzie’s family will honour his life and significant contributions to the forest and timber industry at a memorial event in Brisbane on 21 May 2025. All Timber Queensland members, along with Colin’s friends and colleagues from across the country, are warmly invited to attend. To assist with planning an appropriate venue please register your interest in attending by Friday 11 April to assist with arrangements. Source & image credit: Timber Queensland Jobs
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... and one to end the week on... Lunar base proposed
Engineered Timber Lunar Base proposed for 2035... ![]() As the gravity on the moon is significantly less than on earth, the size of the spacecraft required to escape the moon’s gravity for the return trip is also smaller. Usually, excess spaceship is jettisoned in space to be burned up in earth’s atmosphere. Architects are collaborating with space agency engineers to develop a mass timber spacecraft designed to be partially dismantled, leaving its lower stages on the moon to be reconstructed into the lunar habitat. Click here to read more ![]() And on that note, enjoy your weekend. Cheers. ![]() Brand PartnersOur Partners & Sponsors Friday Offcuts is made possible through the generous support of the following companies.
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