BC Coast Loggers Search for New Way Forward

The recession-hit western Canadian/BC forest industry coast is only a fraction of its former self after being hit by a series of blows — a depressed housing market in the USA, a strong Canadian dollar, the North American softwood lumber dispute and generally poor world lumber markets. US housing builders used to take up to 50% of the coast’s timber – now the timber is struggling to find a home.

Dave Lewis of the Truck Loggers Association, which represents the majority of coastal logging companies, says the industry has been working at about 35% capacity recently. Lewis says the contractors are caught by being service providers to the forest companies which hold the logging licences. Forest companies, says Lewis have not broken out of the cycle of losing markets, asking the government for help in a continuing downward spiral. The TLA convention, held last week on Vancouver Island, saw more calls for action from the BC government which fell on deaf ears.

Lewis added that some convention speakers compared the BC industry’s very negative attitude to log exports with that of New Zealand, which allows free markets to operate. Analysts say that the New Zealand approach is justified as log exports lead to developments in the markets which allow local sawmillers to gain a better appreciation of the wood properties, than if they did not get access to imported logs.

NZ Forest Investment by Phaunos Part of Bigger Plan

Recently we reported on the sale to Phaunos Timber Fund of an investment in Matariki Forests, New Zealand's third-largest forest owner with six forest estates and 132,000 hectares of productive plantation forests. Since its inception in late 2006, Phaunos has raised around US$560 million to invest in plantation forests and timber-related assets. Phaunos was also reported to have allocated US$200 million to China Green Forestry Company, a joint venture investing in poplar plantations in China; and $US150m to Eucateca SA, a joint venture partnership investing in teak and eucalyptus plantations in Brazil.

This week Phaunos Timber Fund is again in the news. It announced that it's investing US$2.5 million into its Aurora Forestal Biomass Energy Project in Uruguay, making an investment so far in this project of over US$7 million. Phaunos first announced a US$10 million investment in the Biomass Energy Project in late 2008.

Union Calls for Methyl Bromide Ban

The Council of Trade Unions is calling for the use of methyl bromide to be completely banned in New Zealand as evidence mounts that it puts worker health and safety at serious risk. Methyl bromide is used for the pre-export fumigation of logs. A University of Canterbury toxicologist, Ian Shaw, asserts that methyl bromide may have caused motor neurone disease in Nelson port workers after a cluster of deaths from the disease (reported in the NZ Herald on 25 January). Nelson’s port population has suffered a rate of motor neuron disease 25 times the international average.

The European Parliament has banned the use of methyl bromide in the EU from 18 March 2010 for environmental and health reasons. This goes beyond the requirements of the Montreal Protocol (to which NZ is a signatory) banning the use of methyl bromide, with the single exception of pre-shipment fumigation of export logs.

There is no evidence to justify any human exposure level to methyl bromide, said CTU President Helen Kelly. This neurological poison could have caused the fatal motor neurone disease in six Port Nelson workers, and its ozone depleting status means it is hazardous to us all. The CTU claims that four of New Zealand’s five major log export markets logs - China, Japan, Malaysia and Korea - will officially accept timber fumigated with phosphine. The CTU suggests New Zealand should follow the EU's lead.

Deadline for Deforestation Notification Fast Approaching

People who have deforested more than 2 hectares of pre -1990 forest land between 1 January 2008 and 31 December 2009 have until the end of this week to notify MAF of the deforestation. Deforestation after 31 December 2009 of more than 2 hectares of pre-1990 forest land must be notified to MAF within 20 working days of starting the deforestation by the person responsible (usually the landowner).

People who deforest more than 2 hectares of pre-1990 forest land become mandatory participants of the Emissions Trading Scheme (ETS) and are legally obliged to:

NZ Roundwood Removals Jump 10.2%

The New Zealand forestry production and trade Sept 2009 quarter release is now available. Key points - compared with the same quarter of the previous year (September 2008) include:

Buy and Sell

…and finally…a medical condition to watch for…

The Centre for Disease Control has issued a medical alert about a highly contagious, potentially dangerous virus that is transmitted orally, by hand, and even electronically. This virus is called Weekly Overload Recreational Killer (WORK).

If you receive WORK from your boss, any of your colleagues or anyone else via any means whatsoever - DO NOT TOUCH IT!!! This virus will wipe out your private life entirely. If you should come into contact with WORK you should immediately leave the premises.

Take two good friends to the nearest liquor store and purchase one or both of the antidotes - Work Isolating Neutralizer Extract (WINE) and Bothersome Employer Elimination Rebooter (BEER). Take the antidote repeatedly until WORK has been completely eliminated from your system.

You should immediately forward this medical alert to five friends. If you do not have five friends, you have already been infected and WORK is, sadly, controlling your life. Get help immediately!

And on that note, enjoy the rest of your week. Cheers.

John Stulen
Innovatek Ltd Rotorua Office
PO Box 6160
Rotorua 3043
New Zealand

Ph:+64 7 921 1382
Fax:+64 7 348 1420
Web page: www.innovatek.co.nz

This week's extended issue can be viewed at www.woodweek.com