Issue 166

Advertising: Tel +61 7 3256 1779 Email: [email protected] 1issuE 166 | 28.03.11 | PAgE

By JIM BOWDEN

AUSTRALIA’S two peak forest industry bodies are to merge as a single association following the unveiling of a new ‘one voice’ logo at a gala industry dinner in Canberra on World Forestry Day March 21.Parents the National Association of Forest Industries and the Australian Plantation Products and Paper Industry Council presented their offspring – the Australian Forest Products Association – to more than 300 guests gathered in the Great Hall of Parliament House.The dinner, which followed a lively cocktail party sponsored by Forestry Tasmania, was hosted by NAFI and the Institute of Foresters of Australia.The gathering included

industry leaders, foresters, political figures, government representatives and foreign embassy officials.The event also celebrated the UN International Year of Forests, which is raising awareness on sustainable management, conservation and sustainable development of all types of forests. The AFPA logo was presented to the audience by Linda Sewell, chair of A3P and transitional chair of the new association, and Greg McCormack, chairman of NAFI.The new body will be shaped over coming months by a transitional board of directors. AFPA effectively galvanises three industry sectors – native hardwoods, plantations and

pulp and paper.“We have a great story to tell of a carbon positive, renewable, natural and environmentally friendly resource,” Linda Sewell said.“A single voice is a more clear and concise way to present our industry to government, media and the people of Australia in a united fashion.”NAFI chief executive Allan Hansard will act as transitional chief executive, assisted by Richard Stanton, CEO of A3P.Mr Hansard called on government for a forward looking growth plan to guide the industry and to build on the now aging policies such as the National Forest Policy

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issue 166 | 28.03.11 | Page 1

Bouncing babyNAFI, A3P present their offspring atgala World Forestry Day celebration

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Cont Page 3

Logo launchat gala dinner

Linda Sewell, transitional chair of the Australian Forest Products Association and Greg McCormack unveil the AFPA logo during the gala World Forestry Day dinner in Canberra on March 21. The logo represents round logs and paper reams, and the green leaf standing trees. The three white pillars in the lettering represent the national, state and local level of representation

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THE devastation in Japan has hammered the country’s factories and industrial production, including mills that produce forest products and paper, and left a trail of destruction that is expected to cost more than $200 billion.As the rebuilding gets under way, demand for lumber and other products – such as plywood – is expected to climb.About 35 to 40% of Japan’s plywood production has either been completely destroyed or significantly damaged.Industry observers in the region believe the Japanese demand, combined with what is already going on in China, is going to drive plywood and lumber prices significantly higher.Already the Australian plywood industry has received a number of inquiries from Japan seeking to buy quantities of plywood.General manger of the Engineered Wood Products Association of Australasia Simon Dorries said EWPAA was a registered overseas certification body with the Japanese government.“If market opportunities open in Japan for EWPAA members we are able to certify products to Japanese (JAS and JIS) standards quite quickly,” he said.Meanwhile, the disaster in Japan has created a double dip revival opportunity for New Zealand’s $4 billion wood industry.Wood Council chairman Doug Ducker says not only will the Japanese need to import large quantities of wood and wood by-products to rebuild northern Japan but the earthquake and tsunami have also destroyed parts of Japan’s own wood

processing industry and caused other plants to stop manufacturing.Mr Ducker is managing director of Japanese-owned Pan Pac, a forest owner and sawmilling operator in Hawkes Bay.He said a mill in Japan that supplied 25% of that country’s total plywood needs had been destroyed.Pan Pac’s owner, Tokyo-based Oji Paper, has reported no major damage at its 17 mills in Japan but has shut down five plants in north-east Japan.But the National Distribution

Paul Newman .. positive element in an earthquake-ready society.

Doug Ducker .. Japan will need to import large quantities of wood.

INDUSTRY NEWS

Cont Page 11

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Statement (1992) and the Plantations 2020 Vision. “As part of this plan we are also seeking renewal and extension of the regional forest agreements,” he said.Both men have worked effectively on the same side of forest politics. Now they’re on the same team.Members of both organisations will benefit from the merger through a wider representational reach, a broader depth of services and industries and the opportunities to build on national networks and infrastructure.NAFI was formed in 1985 to arrest a declining per capita consumption of timber and timber products, and A3P

was formed in 2004 with members now employing more than 13,500 people in plantations, sawmills and paper manufacturing plants.A3P members create and sell more than $4 billion of products, produce more than 12 million cub m of logs, 3 million cub m of sawn timber and more than 2 million tonnes of paper.Educated at Australian National University, Mr Hansard has a

forestry background and was previously chief executive of Tree Plantations Australia and manager of DAFF’s taxation review into plantations.Richard Stanton has been with A3P since its formation and was appointed CEO in 2008. Prior to this, he gained substantial industry association experience with the Australian Paper Industry Council, the Plantation Timber Association of Australia and NAFI.Linda Sewell said the past decade has been a time of great change for the industry:• The transfer of large areas of native forest from production to conservation with a consequent decline in harvest level and an increased focus on adding value to sustainably sourced native products.• The growth of the plantation

From Page 1

SINGLE VOICE: A NIGHT TO REMEMBER

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estate by 1 million ha, predominantly of short rotation hardwood plantations.• The steady increase in technological change, mechanisation, computerisation and scale of manufacturing facilities.• The increased importance of corporate sustainability and the use of certification systems to demonstrate sustainable forest management to the market.• The evolution of the climate change debate from a background discussion to daily front page news which had substantial implications for all

parts of the wood and paper products value chain.Ms Sewell said the merger of NAFI and A3P had arrived after many years of discussions and many months of negotiations. “We are confident that our recommendation will be accepted by the members in an extraordinary general meeting in a few weeks’ time,” she said.She said the brief transition period would be managed by a transitional board made up of five directors from each of the two organisations. Greg McCormack said NAFI was originally established to address the rapidly declining

and insecure resource access for industry.“Today we face similar issues – the industry is craving resource security to underpin future investment,” he said.“Australia is facing a serious shortage of wood; at current growth projections, the population will require 7.1 million new dwellings. A population of 35 million will require major increases in pulp and paper consumption.“This brings me back to another key reason that NAFI was established 25 years ago – the industry had a badly fragmented voice in dealing with governments. That is why

we are announcing what we are tonight.”

“A single voice, a single association, is a clearer and more concise way to present our industry to government, media and people of Australia in a united fashion.

“This will be particularly as the development of a new industry growth plan goes ahead.

“It is time to forget the history behind why we have two organisations; we are one industry linked by our relationship with forests.

“I ask you all to get behind AFPA, and to make it the success we all want it to be.”

Past decade has been time of greatchange for industry: Linda sewell


From Page 3

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MARCH30-31: Residues to Revenues. Technologies to improve wood wastes utilisation. Rotorua, NZ. Visit www.fiea.com.nz

30: HIA Industry Outlook Breakfast. HIA Home Ideas Centre, 28 Collie Street, Fyshwick ACT 2609. Events Manager (02) 6285 7300

30: Timber Merchants Association charity dinner. Crown Complex, Southbank.www.timber.asn.au

APRIL4-5: Residues to Revenues. Technologies to improve wood wastes utilisation. Melbourne. Visit www.fiea.com.nz

5-7 Dubai Woodshow. The premier wood and woodworking machinery show in the Middle East. National supply groups from France, Malaysia and other Asian countries and USA are exhibiting, as well as key regional distributors such as Chabros and Al Nibras, major machinery suppliers from Germany and Italy including Homag and Biesse among others and specialist surfaces producers such as Danzer and Schattdecor AG. Registration information www.dubaiwoodshow.com Contact: Strategic Marketing and Exhibitions. Tel: + 971 4 28 29 299. Fax: + 971 4 28 28 767. Email : [email protected] / [email protected]

8: South Eastern Australia 2011 Farm Forestry and Firewood Expo, Bendigo, Vic. City of Greater Bendigo’s Huntly plantation, north of Bendigo. NORTHERN United Forestry Group (NUFG) - a not-for-profit

EVENTS

WHAT’S ON?community group with a focus on growing trees for sawlogs and firewood - will host the expo at the Huntly plantation, north of Bendigo. Some trees (all hardwoods) within the Huntly plantation that need to be thinned will be available for demonstration purposes. Contact: Mal Brown, Northern United Forestry Group. Tel: (03) 54352588.

Mob: 0419 108 817.

MAY9-12: 42nd annual meeting International Research Group on Wood Protection. Queenstown, New Zealand. Venue: Moonlight Country, 15 minutes from Queenstown and 8 minutes from both Arrowtown and Queenstown Airport. Contacts: New Zealand – Jeanette Drysdale +64 9 299 9435. Australia – Jack Norton +61 7 3255 4420.

25: Institute of Foresters of Australia (IFA) and New Zealand Institute of Forestry Conference (ANZIF 2011). Auckland NZ. Theme: ‘Pacific Forestry’. Visit www.anzifconference.co.nz

30-June 3: LIGNA Hannover Wood Fair.

JUNE15-17: SawTECH 2011. Sawing technologies to improve mill performance. Brisbane. Visit www.fiea.com.nz

JULY13-14: Carbon Forestry 2011. Key investment drivers and future business opportunities. Auckland, NZ. Visit www.fiea.com.nz

SEPTEMBER5-7: NZ Forest Industries Expo 2011. Venue: Rotorua Energy Events Centre, Rotorua. Forest

industry leaders and companies from across the world are booking their tickets to participate in the expo (FI2011) and make the most of the 2011 Rugby World Cup while they’re there. Exhibition sites have already been booked by a number of NZ and Australian companies, and inquiries being received from Canada, China, Vietnam and Austria. The expo will showcase the best that Rotorua, the wider Bay of Plenty region and the rest of New Zealand has to offer when it comes to forestry and wood products. Contact: Dell Bawden. Email: [email protected] Website site: fi2010.co.nz

OCTOBER 21-November 2: 5th International Woodfibre Resources and Trade Conference: Woodchips and Biomass for Global Markets. Grand Copthorne Waterfront Hotel, Singapore. Presented by DANA Ltd, Pike & Co and Wood Resources International, followed by field trip to Cambodia on November 3, 4 and 5.The field trip is an optional extra to the conference registration fee and will be limited to 80 participants. Field trip participants will fly from Singapore to Sihanoukville with an overnight stay. Transfer next day to Siem Reap which will include a visit to world famous UNESCO heritage site Angkor Wat. Return Saturday morning. Who should attend? Plantation and other forest owners, plantation investment fund managers, existing-future biomass producers and users, existing-future wood pellet producers and users, bankers and investment analysts, woodchip producers, wood fibre trading companies, woodchip end users.

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From Page 4

David Cameron, Australian Forest Growers and yforests member, Mike Ryan, forest scientist, VicForests, Melbourne, Louise Cameron, and Ross Florence, ANU Forestry, Canberra.

Enjoying the gala industry cocktail party at Parliament House are Tony Wade, regional coordinator, Northern NSW, Timber Communities Australia, Kate Melzer, secretary, yForests, Cassandra Spencer, chief executive, Institute of Foresters of Australia, and Professor Jerry Vanclay, chairman, yForests and head of school, environment, science and management, Southern Cross University, Lismore, NSW.

Federal forestry minister Senator Joe Ludwig (second from left) with Vince Erasmus, Elders Forestry, Allan Hansard, chief executive, NAFI, Greg McCormack, NAFI president and a principal of McCormack Demby Timber, Morwell, Vic, and Jos McCormack.


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Family portrait at Parliament House .. Lexie Hurford, Hurford Hardwoods, Lismore, NSW (right) with her daughter Kate Melzer of yForests, and sister Kaye Berry.

SINGLE VOICE: A NIGHT TO REMEMBER IN pICTURES

Preparing for the big announcement .. Richard Stanton, chief executive, A3P, Dr Hans Drielsma, executive general manager, Forestry Tasmania, Lynda Sewell, chair of A3P and chief executive, Hancock Victoria Plantations, and Bob Gordon, managing director, Forestry Tasmania.

Sam Riordan, adviser foreign affairs to Julie Bishop, (shadow minister for foreign affairs and trade), catches up with Judy Moon, counsellor for public affairs, US Embassy, Canberra.

Talking wood .. Matthew Wood, managing director, Stora Enso Timber Australia, Melbourne, and Ric Sinclair, managing director, Forest and Wood Products Australia.


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Political journalist Glenn Milne, master of ceremonies at the industry dinner in Canberra (centre) with Kate Carnell (former NAFI CEO), chief executive, Australian Food and Grocery Council, Canberra, and Jannette Cotterell, managing director, Executive Counsel Australia.

Charles Body, Timber Communities Australia (right) meets up with DAFF officers Ian Ruscoe and Cindy West.

Stuart West, executive director (agriculture, food, wine and forestry), Department of Primary Industries and Resources South Australia, Tony Bartlett of ACIR, Gerd Bossinger, University of Melbourne, and Brian Farmer, chief executive, Forestry Plantations Queensland.

Lisa Head of Australian Solar Timbers, Kempsey, NSW, with Spiro Notaras of Notaras Bros, Grafton, NSW.

Professor Peter Kanowski, Australian National University, Dr Hans Drielsma, executive general manger, Forestry Tasmania, Peter Kanowski snr, Brisbane, and Dr Ross Florence, school of resources and environment, ANU.

Deb Kerry, manager natural resource management, National Farmers Federation, Canberra, chats with Nicholas Harford, managing director, Equilibrium, Melbourne.



James Florent, director of forest policy, Victorian Department of Primary Industries, and Evan Rolley, (former chief executive, Forestry Tasmania) of Huon Valley Vineyards, Castle Forbes Bay, Tas.

Timber & Forestry e-news is the most authoritative and quickest deliverer of news and special features to the forest and forest products industries in Australia, New Zealand and the Asia-Pacific region. Weekly distribution is over 6,400 copies, delivered every Monday. Advertising rates are the most competitive of any industry magazine in the region. Timber&Forestry e-news hits your target market – every week, every Monday!

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Just like old times .. Philip Dalidakis, former chief executive of the Victorian Association of Forest Industries and now deputy chief of staff, office of Senator Stephen Conroy (right) catches up on forest industry matters with Bob Pearce, executive director, Forest Industries Federation (WA) Inc, Perth, and Shaun Ratcliff, public affairs manager, VAFI, Melbourne.

Enjoying the historic moment at Parliament House are Michael Hartman, chief executive, ForestWorks, Melbourne, Lisa Head, Australian Solar Timbers, Kempsey, NSW, and John Halkett, director, Forestlands Consulting, Sydney, and ATIF technical manager.






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Old mates stalk the corridors of power .. Colin Shipman, Australian Forest Contractors Association, and Trevor Richardson, director, Whittakers Timber Products, Kenwick, WA.

Gavin Matthew, manager, plantation resources, A3P, John Hayden, chief executive, AKD Softwoods, Colac, Vic, and Heather and Ron Gattone, Sydney Hoo-Hoo Club 215.


Representing the sponsors and supporters of the gala industry dinner at Parliament House are John Mackay, chairman of the board of governors, National Arboretum and Gardens, Canberra, Paul Allen, general manager, marketing, Australian Paper, and Ric Sinclair, managing director, Forest and Wood Products Australia.

Ian McArthur (centre) receives the ACT Forester of the Year award from Senator Joe Ludwig, federal minister for forests (right) and Phil Pritchard, chairman of the ACT division of the Institute of Foresters of Australia.




Workers Union, which this year said the wood processing industry was “in crisis” after 1129 job losses since 2008, is worried that more sawmills may fail before demand for wood from the Japan and Christchurch rebuilds takes off.The downturn has been caused by several pressures, including strong global log prices, which, fuelled by a dramatic lift in demand from China and India, have made it more attractive to ship logs out of New Zealand than to process them. Logs have also become too pricey for Kiwi processors without their own forests. A slump in new housing construction has also contributed.Union general secretary Robert Reid said the situation could be about to get worse with second quarter new log prices

predicted to go even higher.“My worry is that even if we secure good markets and good prices, we could have low sawn timber and manufacturing prices and high log prices. By the time new opportunities present themselves in two to three months, more could have gone out of business.”Mr Ducker said New Zealand wood supply was “under-utilised”. There would be opportunities for Kiwi companies to supply Japan with plywood and medium density fibreboard, for use in flooring. Japan was a traditional user of wood, but for appearance use rather than structural builds, he said.The New Zealand industry also had to face the risk that the logs it had been supplying to China could be turned by Chinese

INDUSTRY NEWS

Marine plywood houses .. gaining popularity in Japan.

From Page 2

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Big part of Japan’swood processingindustry destroyed


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THIRD party certification had become a market requirement in the forest industry, the federal forestry minister Senator Joe Ludwig said at the World Forestry Day celebration dinner in Canberra.

“I acknowledge the Australian forest industry has invested both time and resources in

the two certification schemes. I hope the industry uses the opportunity presented by the current review of the Australian Forestry Standard to take steps that work towards mutual recognition,” Senator Ludwig said.

“Not because one standard is superior to another, but

because market forces are driving that outcome.”

Senator Ludwig said that in comparative terms the industry would face strong challenges from producers in the region due to the high growth rates that can be achieved in tropical hardwood plantations and the lower cost structures in these

markets.Senator Ludwig said both the industry and the government had been working hard to take action to ensure the forestry sector remained sustainable and viable for the long-term.Australia’s competitive advantage in forestry was partly

AWARDS for outstanding achievement in forestry highlighted the closing hour of the industry dinner in Canberra on March 21, which marked World Forestry Day and the UN International Year of Forests.Forestry Tasmania received the Commonwealth Forestry Association regional award for excellence for Southeast Asia and Pacific region and respected forester Ian McArthur was announced ACT Forester of the Year.Forestry Tasmania managing director Bob Gordon said the CFA award recognised the outstanding work in the forestry sector at a national and regional level; FT was the first corporate recipient of this award in the Southeast Asia and Pacific region.Forestry Tasmania (formerly the Forestry Department) undertook pioneering research into regeneration in wet eucalypt forests spearheaded by the late Max Gilbert and Murray Cunningham who were both awarded PhDs for their work.“Both Max and Murray had a great love of the bush and were keen observers of the dynamics of eucalypt forests,” Mr Gordon said.“Their research showed that in wet forests successful regeneration takes place when viable seed is spread on open

areas with an ash bed created by an intense fire.“They found that fire partially sterilises the soil, kills pathogenic micro-organisms and releases mineral nutrients and this was how forests have regenerated for thousands of years.”As a result of the research in the 1960s the department implemented the clearfell burn and sow method of regeneration which mimics natural wildfire occurrences. Since that time 250,000 ha of forest have been harvested and successfully

regenerated.During the 1990s, Forestry Tasmania developed formal quality standards for monitoring all aspects of regeneration programs including site preparation, sowing using local seeds, harvesting and burning, resulting in more than 95% of areas achieving minimum stocking standards.“As a result our forests are growing more quickly than we are harvesting them,” Mr Gordon said.“In 90 years time there will be more, not less forests than

there are today.”In state forests eucalypt are regenerated without the use of herbicides or pesticides.The chairman of the ACT division of the Institute of Foresters of Australia Phil Pritchard presented the Forester of the Year Award to Ian McArthur for his lead role in promoting farm forestry and private forests and his ongoing commitment to the institute. “Ian’s achievements are many and varied,” Mr Pritchard said.“Since 1971, Ian has contributed to forestry in southern NSW and the ACT. He has operated in a range of senior roles with the ACT forest agency and in key ACT fire management roles as deputy fire controller and acting fire controller.”Mr McArthur continues to promote the development of forestry as executive officer of the southern tablelands farm forestry network and across NSW training land managers in private forest management. He is an active member of both the institute’s ACT division and the Friends of the ACT Arboreta, and is on the respective executives of both. He has also served as deputy chair of the Upper Murrumbidgee catchment coordinating committee and a member of the investment panel for the Lachlan catchment management authority.

A NIGHT TO REMEMBER: FORESTRY AWARDS

Awards recognise forestry service‘Our forests are growing more quickly than we are harvesting them’

Cont Page 13

Bob Gordon, managing director of Forestry Tasmania (second from left) accepts the Commonwealth Forestry Association regional award presented by federal forestry minister Senator Joe Ludwig. Looking on are Adrian Kloeden, chairman of Forestry Tasmania and Tony Bartlett, forestry manger, Australian Centre for International Agricultural Research.

Third party certification market requirement



mills into wood for the Japan rebuild, he said. Opportunities could come in roundabout ways. Chile, a major wood exporter, was able to use its own resources to rebuild after its major earthquake last year. But it withdrew from some of its export markets which opened opportunities for New Zealand.Meanwhile, Richard Kelertas, a forestry sector analyst with Dundee Securities Corp, says Japan has substantially increased the use of wood in housing construction because it has proven to be more earthquake resistant than concrete.A major rebuilding effort in Japan over the next six to 12 months should have a positive impact on most North American lumber, building materials and

timber stocks, he says.“Robust wood demand from Japan – coupled with already strong demand from China – might even offset the US housing slump,” Mr Kelertas added.“In fact, we believe a lumber super-cycle is now a possibility

even without a ‘normalised’ US housing market.”Canadian lumber producers are known in Japan as well-regarded exporters of high-quality, earthquake-resistant wood for housing. Engineered wood, for example, is the product of several pieces that

have been cross-laminated together in order to better withstand the impact.Paul Newman, executive director of market access and trade for British Columbia’s Council of Forest Industries, said forestry producers had been working with the Japanese to develop such innovative products ever since the 1995 Kobe earthquake.“There has been a lot of attention in Japan on earthquakes and wood construction is seen as a positive element in an earthquake-ready society,” said Mr. Newman, who was in Japan when the quake hit.He expects a sweeping post-disaster evaluation – similar to what was done after Kobe – of housing stock to see how it stood up to the 2011 tremor and what can be done to further upgrade Japan’s already stringent building code.

based on the regulatory and governance arrangements that underpin forestry activities.These arrangements included regional forest agreements which aimed to achieve security of access to wood resources along with high-level conservation outcomes.Currently there were 10 RFAs with four states – Western Australia, Victoria, Tasmania and New South Wales.The agreements had been made with three overall key objectives – to protect environmental values and a world class system of national parks and other reserves; to manage all native forests in an

ecologically sustainable way; and to encourage job creation and growth in forest based industries, such as timber production and tourism.“In order to achieve these objectives, the agreements are required to undergo five yearly reviews.”Senator Ludwig said in 2007, nine out of 10 commonwealth / state regional forestry agreements were out-of-date in terms of reporting obligations.“Tonight I am pleased to acknowledge that nine out of the 10 RFAs have completed their reviews,” he said.“The forestry sector has been keen to progress the renewal of the RFAs and create certainty

into the future. The first of these 15-year reviews is due next year.”Senator Ludwig reaffirmed the government’s commitment to ban the importation and trade in illegally logged timber and timber products.“We will make it an offence to import any timber product that has not been verified as legally harvested and we will implement a code of conduct to ensure timber suppliers undertake proper tests to confirm the legality of the sourced wood,” he said.“In addition, we will develop related trade descriptions to provide consumers with the confidence to purchase legally

sourced products.

“This week draft legislation on this will be referred to the Senate Standing Committee on Rural and Regional Affairs and Transport. The committee will undertake a public inquiry, with the final legislation to be introduced later this year.

“At the same time, the Department of Agriculture, Fisheries and Forestry will be consulting with key stakeholders on the legislation.

“The framework that the government has developed is broadly supported by importers, domestic processors, retailers and conservation groups.”

Japan has substantially increased theuse of wood in housing construction

INDUSTRY NEWS

From Page 11

From Page 12

Imports: related trade descriptions toprovide buyer confidence on legality

Japan gaining ground as a leader in earthquake-proof timber structures





Natalie Houghton, FSC Australia, chats with Sam Nalish, PNG Forestry, who is completing forestry studies at the Australian National University, Canberra.

CSIRO trio at Parliament House Dr Sadanandan Nambiar, Dr Simon Southerton, and Dr Jeremy Burdon.

Strength from the Apple Isle .. Glen Britton of Britton Timbers Australia, Smithton, Dick Adams, MP Lyons, Perth, Tas, Martyn Evans, mayor, Derwent Valley Council, and Geoff Lyons, federal Labor member for Bass, based in Launceston.

Cale Hill, adviser, office of Tony Crook MP O’Connor, David Ingham, Canadian trade commissioner, Canberra and his wife Lindy, and Tony Crook, MP.

Old friends catch up .. Jane Bartier, deputy chief executive, ForestWorks, Melbourne, Tony Wade, Timber Communities Australia, and Tammy Pavelic, Department of Education, Employment and Workplace Relations, Canberra.

Bill Bowen, principal consultant, ITS Global, Canberra, and Warren Hodgson, chairman, VicForests, Melbourne.

Celebrating World Forestry Day March 21 at Parliament House are IFA representatives Cassandra Spencer, chief executive, and Dr Peter Volker, national president.



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