Friday Offcuts – 12 June 2026
Click to Subscribe - It's FREE! Welcome to this week's issue of Friday Offcuts.This time next week, more than 250 sawmillers will be gathering in Rotorua for WoodTECH 2026 and a packed programme of technology, innovation, and industry insights. A similar number will join us for the Brisbane event the following week, highlighting the strong interest in the latest developments shaping the wood processing sector. That focus on innovation is reflected in this week's news. The New Zealand Government is backing a major mass timber initiative aimed at converting lower-grade logs into high-value prefabricated building products. We also cover growing momentum behind mass timber construction in Australia, successful seismic testing of modular timber buildings in New Zealand, and the development of bio-based packaging materials from wood bark. Supply, markets, and industry resilience also feature strongly. Timber Queensland is calling for expanded plantation investment to meet future housing demand, while rising freight costs and changing softwood market trends continue to influence the sector. We also highlight opportunities emerging from the New Zealand–India Free Trade Agreement, alongside the growing role of carbon finance in supporting Japan's forestry industry. Read these stories and more in this week's Friday Offcuts.
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This week we have for you:
Empowering forestry and wood through tech [NZ]
The Government is backing the New Zealand’s forestry
sector’s innovation and sustainable productivity, announced from
Agriculture Minister Todd McClay this week.“Greater land use flexibility results in prosperity through productivity, and new production methods and technologies are key to driving that step-change. Enabling this exemplifies the Government’s commitment to fixing the basics and building the future,” Mr McClay says. “More than 39,000 Kiwis work in forestry, a sector that contributes $6.2 billion in export revenue – supporting regional economies and jobs. “This National-led Government is committed to backing farmers and growers, including through sensible regulatory reform and cutting of red tape and costs, combined with the latest science, technology and farming methods provides the opportunity for strong returns with a smaller environmental impact.” Leveraging this, the Government is investing $3.2 million over three years in a new $8m project to assess the feasibility of producing prefabricated, fully fitted mass timber modules for the New Zealand market and potentially Australia. This will mean more timber is processed onshore creating greater value and more jobs. This work is funded in partnership with VoMo Limited, a Red Stag Investments company. The project aims to convert industrial-grade logs into higher-value timber for a range of applications, including use in the construction of hotels, student housing, apartments and offices, multiplying the logs’ value 6.7 times. It will determine if this model of construction is likely to be successful in New Zealand, which includes analysing aspects such as design, technical performance, seismic resilience, productivity gains, cost efficiency, and carbon savings. Shifting supply from export to domestic markets also offers greater stability and encourages long-term investment in forestry and wood processing. “Data and information from this and similar projects will be shared with farmers and growers to give them further confidence to innovate and grow their businesses - supporting a more productive and responsive sector that is better positioned to supply New Zealand and the world with high-quality produce,” said Mr McClay. “The primary industries are the backbone of this economy and the lifeblood of rural communities. Supporting their success is a priority for this Government.” Source: New Zealand Government Further reading: Government announces Primary Sector Growth Fund projects (RNZ) Plantations essential for QLD housing & future timber plan [AU]
The peak state body for the Queensland forest and timber
industry has highlighted the significant role plantations play in
supporting housing and construction activity while at the same
time supporting local jobs, regional economies and carbon capture and
removal.Timber Queensland CEO Mick Stephens said “Queensland has a well-established plantation base with over 190,000 hectares of high-quality softwood resources for timber manufacturing feeding directly into housing construction. The plantation resource supporting Queensland homes today is the result of investment decisions made decades ago using commercially suitable softwood species.” “As Queensland’s population grows, maintaining a strong pipeline of timber supply will require the same long-term commitment. If we want the same outcome for future Queenslanders, we need to continue investing in plantation expansion today,” Mr Stephens said. “Queensland’s plantations support timber production jobs, ancillary businesses and local communities across the state, including in such regional areas as Moreton Bay, Caboolture, Beerburrum, Maryborough, Gympie, Hervey Bay and Mareeba.” Plantations also deliver significant carbon benefits. In 2024-25, around 80 per cent of Queensland’s new detached houses used renewable softwood framing, removing almost 200,000 tonnes of carbon dioxide from the atmosphere, equivalent to over 2.3 million one-way flights from Brisbane to Sydney. Continuing to use timber to build our homes in place of more emissions‑intensive materials like concrete and steel can reduce building emissions by up to 30 to 40 per cent, making it one of the most practical ways to decarbonise new housing. “Queensland has set an ambitious target of building one million new homes by 2044. Meeting that challenge will require long-term planning not only for housing, but also for the resources need to build those homes. Plantation expansion will play a pivotal role in the new timber plan announced by the Crisafulli Government in November 2025, with the softwood sector already making a significant contribution to the state’s nearly $4 billion timber industry which supports over 23,000 jobs,” Mr Stephens said. “Providing the right incentives and removing barriers to investment will help achieve the goal of an additional 25,000 hectares of new plantation by 2050. The new timber plan presents an opportunity to align future housing demand with future timber supply. Timber Queensland looks forward to working with the Government on co-designing plantation growth and timber manufacturing initiatives under the plan.” Key measures being advocated to lift softwood supply include:
 Key freight measures climbing [AU]
Critical freight cost measures are rising rapidly as the oil crisis in the Middle East drags on, compounding already unstable freight and logistics systems that have been dramatically affected by US-led trade upheavals. Unsurprisingly, freight costs are continuing to rise, with some supply yet to be fully impactedContainer freight costs ramping up The China Containerised Freight Index (CCFI) shows the cost of shipping finished goods from China around the world. Since the February 28th outbreak of the war in Iran, the Composite Index of the CCFI – a trade weighted index using major regional routes as proxies – has increased 25.0%. That is equivalent to a doubling of container freight costs over a full year. The journey from southern China to Australia and New Zealand (the route to Melbourne is the regional proxy) saw the local index up 23.2%, but as the chart shows, that occurred primarily in the second half of the period since the commencement of hostilities. One possible explanation is that had the war been as short-lived as originally suggested, there would have been negligible impact on the southern trade routes and their access to fuel via Singapore. As the war continued and Singapore became embroiled, the Australia/NZ index has rapidly shifted to catch up with the global Composite Index. The tyrannies of distance when distance is no longer a protection! Sawn softwood freight costs yet to feel effect  Australia’s sawn softwood import freight cost averaged AUD75.30/m3 in March 2026, up 10.2% on the prior month. However, this was a return to normal duty, with the March result linking into a continuing trend of declining freight costs. The chart demonstrates the cost of freight for sawn softwood imports to Australia has largely returned to pre-pandemic levels in cash terms (the black line). Perhaps of more interest is that freight as a proportion of total landed cost continues to trend down, rising modestly in March 2026 to just 10.2% (the green bars). It may be some months before additional freight costs for shipments ordered in March and April begin to be evident. More >> Source: FWPA Red needle cast management tools for foresters [NZ]
A new management tool and guide for red needle cast was released
in May, providing much needed insights and strategies for foresters.
These tools were developed within the Resilient Forests
Programme – a partnership between the Bioeconomy Science Institute
Maiangi Taiao and Forest Growers Research (FGR).The Resilient Forests Programme has turned a poorly understood threat into something manageable, bridging the gap between research and on-the-ground decision-making for red needle cast, a relatively recent, high-impact needle disease of radiata pine. Through coordinated field trials, modelling and tool development, the programme has turned complex research on disease impacts, environmental drivers and control strategies into practical tools, giving foresters greater confidence in managing RNC. The challenge In the early 2000s, a new forest disease emerged in New Zealand – unseen anywhere in the world previously. The disease had no name, no known cause and no management strategy. After its discovery, early research characterised the disease symptoms and identified the causal agent. We now know red needle cast (RNC) is caused by the aerial pathogen Phytophthora pluvialis. Although the pathogen has since been found in the USA and very recently in Europe, it is only in New Zealand that it impacts radiata pine. As a result, there is little relevant global information to inform management strategies. Early research with US collaborators confirmed that Phytophthora pluvialis was native to the Pacific Northwest of the US and identified potential pathways of introduction to NZ – which MPI have since tightened. Research then demonstrated that there was little risk of transporting the pathogen on exported logs – reassuring our international trading partners, protecting market access and addressing a major early concern from industry. RNC can develop rapidly but then seemingly disappear. Outbreaks can be localised. This unpredictability complicates both management strategies and the research required to develop them. When the Resilient Forests Programme began in 2019, the industry had:
We redefined industry’s understanding of RNC, moving from limited site-specific observations of the disease to comprehensive knowledge of impacts, drivers and control strategies. We have quantified the growth impacts of RNC to enable cost benefit analysis of management activities, determined the environmental drivers of disease outbreaks to enable foresters to predict when and where they would occur and when intervention would be required, and identified effective controls to reduce disease severity and impact. More >> Source & image credit: Bioeconomy Science Institute Maiangi Taiao The future of Brisbane’s built environment [AU]
Timber buildings have long defined Brisbane. From the classic
Queenslander home to the bones of the Teneriffe woolstores, wood has
been at the heart of the city’s built environment for over a
century. With the eyes of the world turning to Brisbane for the 2032 Games, we have an opportunity to combine this heritage with cutting-edge construction technology to demonstrate mass timber construction to a global audience. Timber is a renewable resource, it stores carbon rather than releasing it, and when a timber building is designed and built properly, can be disassembled and reused for future projects. It is one of the few ways the built environment can actively reduce emissions. But the window to influence the design and procurement for Games construction is closing. The barriers to building infrastructure projects out of timber are no longer technical, they are commercial and procedural. Instead, the holdup is now in ensuring decision makers have the confidence across five key areas: program and delivery certainty, cost escalation and commercial risk, supply capacity and sequencing, procurement integrity and compliance, and risk allocation across design, manufacture and construction. These are problems the industry can solve but require a different approach than showcasing designs. The Australian Research Council Research Hub to Advance Timber for Australia’s Future Built Environment (ARC Advance Timber Hub) researchers are creating new and innovative ways of utilising timber to increase modularity, to be designed for better disassembly, as well as improving procurement frameworks and supply chains. The proof that timber works for major buildings already exists locally and globally. In Australia, the new Sydney Fish Market, University of the Sunshine Coast’s Moreton Bay Campus, and Boola Katitjin at Murdoch University (the southern hemisphere’s largest timber building) have been leading the way. On a smaller scale, projects like QFES North Coast Regional Headquarters – Maryborough Fire & Rescue Station and Inala Infill Apartments show modern timber construction is taking place in government infrastructure and social housing across South East Queensland. More >> Source & image credit: Advance Timber Hub  Building finds its balance in groundbreaking earthquake test [NZ]
A timber building that kept itself centred through major shaking
has aced a full‑scale earthquake test with no damage, with more than 60
industry professionals looking on.At the University of Auckland’s Structures Test Hall, engineers have carried out one of the country’s most demanding full‑scale earthquake tests to understand how modular timber buildings behave under real‑world shaking. The team, led by Dr Ashkan Hashemi and Professor Pierre Quenneville, along with PhD student Rajnil Lal, tested a two‑storey structure made from cross‑laminated timber (CLT). CLT is becoming increasingly common in modern construction thanks to its low-carbon profile and fast assembly. But despite growing interest in timber buildings, there is limited full-scale evidence of how they perform during major earthquakes. To address that challenge, the engineers developed a novel system that includes prefabricated building modules with a resilient seismic connection between floors and walls. The system allows the structure to move in a controlled way during an earthquake, reducing the forces that typically cause damage before returning the building to its original position. "This has the potential to become groundbreaking research," says Dr Hashemi. "The future of the construction industry is modular buildings, with modules fabricated off-site and assembled on-site... New Zealand’s high earthquake demands have made this less feasible, but this research provides a novel solution." The test was carried out on a two-storey timber building, with the weight of a third storey simulated on top – a set up reflecting the medium-density townhouses and apartments now common across New Zealand. Testing took place at the University’s Structures Test Hall in Newmarket, one of the few facilities capable of shaking a full‑size building using realistic earthquake motions. Over several weeks, the team ran the structure through simulations based on real earthquake records, including both horizontal shaking and twisting motions to capture the complex forces buildings experience during major seismic events. The building remained stable throughout the tests, with no damage found in the main timber elements. Many attendees were struck by the building’s low damage performance and the fact it withstood 100 strong shakes without structural harm. "They were surprised because they’re not used to seeing a building sustain even one major earthquake, let alone a hundred," says Dr Hashemi. The technology could support modular housing, mid-rise commercial buildings, schools, healthcare facilities and rapid-build projects in the future, all while reducing carbon and construction waste, he says. "This test proves that sustainable, fast-to-build timber structures can stand up to major earthquakes, and signals more seismically resilient construction is ahead." The research was supported by the Wood Industry Development and Education (WIDE) Trust and Te Hiranga Rū QuakeCoRE, along with sponsors from the timber construction sector. WIDE Trust funds a range of timber design, architecture and sustainable forestry projects at the University of Auckland. More >> Source & image credit: University of Auckland Dr Peter Stanton receives the Order of Australia [AU]
Forestry Australia congratulates Dr Peter Stanton AM PSM, the forester and landscape ecologist whose field surveys helped secure the Wet Tropics World Heritage listing, on his appointment as a Member of the Order of Australia (AM) in the King’s Birthday 2026 Honours List. Dr Stanton, known throughout his career as Peter, is among 949 Australians recognised this year by Governor-General Sam Mostyn.The national honour comes just months after Forestry Australia awarded Stanton its highest accolade. In October 2025, at the organisation’s conference in Adelaide, he received the N.W. Jolly Medal for a career spanning more than five decades advancing forest science, particularly in Queensland’s tropical forests and the Wet Tropics World Heritage Area. “Peter Stanton’s career shows that foresters have led conservation in Australia for generations,” said Forestry Australia CEO Jacquie Martin. “A respected member of Forestry Australia for 60 years, Peter has shown lifelong commitment to the nation’s forests.” “When we presented Peter with the N.W. Jolly Medal last year, we recognised more than five decades of work that transformed the understanding and conservation of Queensland’s forests and landscapes. Seeing that contribution recognised more broadly is a proud moment for the profession.” Stanton began his career with the Queensland Forestry Department before transferring to the National Parks branch in 1967. He later spent two decades as a senior scientist with the Queensland National Parks and Wildlife Service, moved to Cairns in 1979, and remained in Far North Queensland for the rest of his working life. In the 1960s and 1970s, his systematic surveys mapped ecosystems from the rainforests of Cape York Peninsula to the Wet Tropics between Townsville and Cooktown. His vegetation mapping of the Wet Tropics bioregion classified some 90,000 polygons across 4,000 aerial photographs into 250 distinct ecosystem types, each one verified on the ground. Published in 2005, the study has been described by the Wet Tropics Management Authority as the most comprehensive vegetation mapping ever undertaken in the region. Stanton was the first Australian to receive the IUCN Fred M. Packard International Parks Merit Award in 1982. He later received the Public Service Medal in 1996, the Centenary Medal in 2001, and an honorary Doctor of Science from James Cook University in 2023, before receiving the N.W. Jolly Medal in 2025 and being appointed a Member of the Order of Australia this year. The 2026 Honours List recognised 949 Australians, including Adrian John Kloeden, former Chair of HVP Plantations and Sustainable Timber Tasmania. Announcing the recipients, Mostyn said the honours system recognised people who had given greatly to the nation. “Recipients have made an exceptional contribution to Australia,” Mostyn said. Source & image credit: Forestry Australia  Webinar: Pine in India - What works, what doesn’t [NZ]
NZTE are running a free seminar on the
opportunities available through the recent India free trade
agreement. This webinar is on Tuesday, 23 June 2026.If you’re curious about the Indian market for wood and forestry, or aware of demand but unsure where to start, this practical, India-focused webinar will help you assess where the real opportunities are and where the challenges sit. Designed for New Zealand wood and forestry companies, the session brings together Indian technical, design, and buyer insights to unpack how pine is used today, which specifications work in practice, and what commercial expectations look like on the ground. Attendees will leave with a clear reality check and opportunity map, helping you decide whether India is the right next step for your business, and, if so, how to approach it with confidence. This expert‑led webinar is for New Zealand forestry companies across the value chain - including sawmills, processors, value‑added product manufacturers and log exporters. Through an Indian expert panel and NZTE facilitation, this session will provide practical insight into the technical, design and commercial realities of using pine in India. It’s designed to support informed “Go / No go / When” decision-making, and help identify clear next steps - including whether to engage through MumbaiWood 2026. More >> Source: New Zealand Trade & Enterprise  A novel wood bark-based packaging coating material
In the COCOBIN project, coordinated by the University of Oulu,
coating materials are being developed from suberin, a natural compound
found for example in birch bark. In plants, suberin acts as a
protective layer and prevents the loss of water. Up to 1500 meters of a
bio-based coating material prototype have been produced at semi-pilot
scale.The material can be applied especially in fiber-based packaging materials such as paper or paperboard as a moisture barrier, as well as in other products requiring durable and functional surfaces. One key application area is food packaging, where the role of the coating is to prevent moisture from passing through the packaging material and to protect the product. “The material can be applied especially in fiber-based packaging materials such as paper or paperboard as a moisture barrier, as well as in other products requiring durable and functional surfaces,” says professor Henrikki Liimatainen from the University of Oulu. “Suberin-based coatings can be used as a water vapor barrier in food packaging applications. Current coating materials are typically fossil-based and can present challenges for recycling. Suberin-based coatings can offer an alternative while achieving comparable performance,” adds Rajesh Koppolu, Senior Scientist at VTT. Toward more sustainable materials The development of the coating has progressed step by step toward practical applications. The starting point was birch bark, from which suberin was extracted at semi-pilot scale. The extracted suberin was received as a moist material, then dried and further processed into a fine powder. This enabled it to be mixed into a uniform coating formulation. From this powder, a water-based coating was prepared, where suberin particles are evenly distributed in the liquid. Additional components were included to help the coating spread evenly and to achieve the desired functional properties. The formulation is based on approximately one and a half years of research and development work. The work demonstrates the feasibility of the concept at semi-pilot scale. The coating was produced and tested using semi-pilot-scale equipment that represents industrial production at a smaller scale. This allowed the team to observe how the material behaves under conditions similar to real manufacturing. More >> Source & image credit: University of Oulu NZ Agri Focus: The bright side [NZ]
While log exports remain becalmed, there is likely to be upside
for treated timber domestic markets stemming from a strong agricultural
sector across the board from dairy, sheep & beef and kiwifruit.
Despite everything happening overseas, New Zealand’s agriculture sector is doing incredibly well. Farmgate prices are at or very near record levels for beef, lamb, mutton, and wool. Milk, venison, kiwifruit, and apples aren’t too far behind. It’s all systems go for these sectors. Dairy prices have been strong for two seasons running, alongside great pasture conditions. The tail end of last season and the start of the new season look positive as well, despite robust milk production globally. Wine, forestry, and grains are conspicuously missing from the above upbeat paragraphs. Those sectors are still struggling to varying degrees with oversupply, low prices, and higher production costs. Other record or near-record prices unfortunately also include those for fertiliser and diesel, although global prices seem to have peaked. As things stand, the worst of the oil shock seems to be behind us, even though the Strait of Hormuz remains effectively closed. But even if a resolution was to be found soon there will still be slow-rolling shockwaves washing up on rural New Zealand’s shores for at least the next year. Higher fuel and fertiliser prices, higher interest rates, and logistics challenges are the most pressing issues, alongside the general state of the New Zealand economy. Things remain volatile; if conflict reignites in the Middle East, all bets are off. And after taking a back seat for a few months as successful legal challenges forced a pause, US tariffs are back in the headlines. The US administration is pushing forward with its tariff agenda despite additional constraints imposed by February’s Supreme Court ruling. Adding to the unpredictable picture, a ‘super’ El Niño is expected to develop in the second half of 2026. This would likely bring hot and dry weather to eastern parts of New Zealand, which is typically negative for pasture growth. The New Zealand-India Free Trade Agreement was signed in late April and will hopefully enter into force in early 2027. Forestry, apples, and kiwifruit are the biggest winners from New Zealand’s agri sector. Source: ANZ  Supporting koala conservation through collaboration [AU]
Port Stephens Koala Hospital (PSKH) is strengthening its koala
conservation efforts thanks to a recent koala feed tree donation from
Forestry Corporation of NSW.The koala hospital (PSKH) plays a vital role in caring for and rehabilitating injured koalas in the Port Stephens region, which is home to one of the state’s most important koala populations. Over the past five years, Forestry Corporation has donated more than 10,000 feed tree seedlings to the hospital. This year, the hospital has just received 2,600 seedlings grown from seed at Forestry Corporation’s Grafton nursery. PSKH General Manager Karen Varker said the seedlings will be planted and cultivated to support koala feed tree programs. “Every koala in our care relies on access to around approximately 1,000 trees for feed and habitat, so this donation from Forestry Corporation is greatly appreciated,” Ms Varker said. “Port Stephens Koala Hospital is committed to increasing and growing its work in plantations for koala feed trees and we have planted over 8,000 trees to date across a number of plantations. “The donations that the Forestry Corporation have contributed are vital to our work in this area and we are grateful for the continued support in this important work around koala conservation.” Forestry Corporation Partnerships Leader Alex Capararo said the donated seedlings include primary koala feed tree species forest red gum, grey gum and tallowwood. “This initiative represents a strong collaborative effort, drawing on the propagation expertise of eucalyptus species at the Forestry Corporation Nursery in Grafton to supply these essential trees,” Mr Capararo said. “These plantings play a critical role in the conservation and care of koalas, and we are proud to support and contribute to the outstanding work of the Port Stephens Koala Hospital.” As the land manager for NSW State Forests, Forestry Corporation grows millions of seedlings each year to plant in softwood and hardwood plantations. Source: Forestry Corporation Can carbon finance boost Japan’s ailing forestry industry?
Japan’s forestry sector is at a
crossroads. Population decline and cheap imported timber are
driving down prices. Forest ownership is fragmented and small-scale,
further limiting profitability. The workforce is aging and
shrinking. As a result, many forests — planted decades ago, when
timber profits seemed surer — are now under-managed, abandoned, or
not replanted after being clear-cut.“Especially over the past few years, we have seen a lot of forest owners decide to give up their land,” says Akio Abe, associate director of the Ishinomaki District Forestry Association in Miyagi Prefecture. “The underlying reason is that the value of forests has dropped so much.” Roughly 40% of Japan’s total forest area has been planted. These are often dense, monoculture stands of cedar or cypress that are at risk of ecological degradation without human intervention, particularly through thinning. However, low profitability leaves many foresters and forest owners with their hands tied, unable to either manage the woods for timber or restore them as self-sustaining ecosystems. Enter a mechanism that could benefit industry and the planet Carbon credits, Abe hopes, can provide the financial backing needed to turn the Ishinomaki District woods into a boon, not a burden, for both local landowners and the environment. Together with corporate partners, the foresters are applying for credits certified by an international body, a rarity among forest carbon projects in Japan. With plans to nurture their forests in new ways going forward, the project members hope to lead by example in a sector where business as usual has become untenable. More >> Source: The Japan Times Image credit: Everimpact  Wood fuelled boiler installed at Invercargill Prison [NZ]Department of Corrections New Zealand has successfully transitioned away from coal heating at Invercargill Prison, replacing its final coal boiler with a modern renewable wood pellet boiler system delivered by Apricus Eco.The installation marks a major milestone in reducing operational carbon emissions within New Zealand’s public infrastructure sector and demonstrates how locally sourced renewable fuel can replace traditional fossil fuel systems at scale. The project involved the installation of a 1MW ÖkoFEN pellet boiler system housed within a modular, containerised “Energy Box” design. A key feature of the project is the use of locally produced wood pellet fuel manufactured just 10.4km away by Niagara Sawmilling Company Ltd. The pellets are produced using recycled wood shavings and sawdust generated through timber processing operations, creating a highly sustainable closed-loop fuel supply chain. "This project demonstrates that large-scale facilities can move beyond coal and gas today, using practical, renewable technology that delivers both operational reliability and environmental benefits,” said Marcus Baker, Managing Director of Apricus Eco. “This project represents more than renewable heat — it demonstrates how modular, containerised infrastructure can fundamentally improve the way large facilities transition to low-carbon energy." The project demonstrates how biomass energy can provide a practical decarbonisation pathway for large-scale institutional heating applications. Feedback from the Department of Corrections New Zealand, Downer Group, and Octa Project Management has been overwhelmingly positive regarding both project delivery and operational performance. The installation is also believed to be the largest ÖkoFEN boiler installation globally, showcasing New Zealand’s capability to deliver world-leading renewable energy infrastructure solutions. More >> Source: Apricus Eco  Jobs
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And one to end the week on... Not wood--but striking nonetheless
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