WoodWeek – 17 February 2010

This week we have for you:

• Contractors' Key Indicators
• Cash Available for Tree Planting
• Forestry's Bright Future Subject of Finance Conference
• Chinese New Year Sees Dip in Freight Index
• Loggers & Sloggers Golf Tournament
• $70m Sustainable Agriculture Flagship Launched
• Bioenergy Workshop Held to Inform Forest Owners
• Thanks to FICA Sponsors
• Wood Chips Replace Grit and Salt on Icy Roads
• Financial Support for Tasmanian Forest Contractors
• Email Footer with Novel Environmental Message
• Buy and Sell
• …and finally… the atheist and the bear…

Contractors' Key Indicators

Our Key Indicators remain fairly stable this week - check out the latest figures here.

NZ CONTRACTORS' KEY INDICATORS 17th February2010
Interest Rates		Diesel Price Watch
	90-day bill rate = 2.72%	NC	Average (excl GST / all regions) = $0.99
Exchange Rates		NC	Change (month) = +3%
	NZD/USD = 0.6966		Change(quarter) = +7%
	NZD/Yen = 62.69		Change (year) = +7%
Labour Cost Index - Ag/Forestry/Fishing		Consumer Price Index
	Dec 09 quarter = 1006		Dec 09 quarter = 1093
	Change (quarter) =+0.4%		Change (quarter) =-0.2%
N/A	Change (year) = N/A*		Change (year) = +2.0%

*Note:The LCI has been re-expressed on a June 2009 quarter base (=1000).

AUSTRALIAN CONTRACTORS' KEY INDICATORS 17th February 2010
Interest Rates		Diesel Price Watch
NC	90-day bill rate = 4.19%	NC	VIC (excl GST) = $1.07
Exchange Rates		NC	NSW (excl GST) = $1.05
	AUD/USD = 0.8937	NC	TAS (excl GST) = $1.16
	AUD/Yen = 80.39	NC	SA (excl GST) = $1.08
Wage Price Index - All Industries		Consumer Price Index
	Sep 09 quarter = 102.0		Dec 09 quarter = 169.5
	Change (quarter) = +0.9%		Change (quarter) =+0.5%
	Change (year) = +3.4%		Change (year) =+2.1%

Cash Available for Tree Planting

Northlanders are being urged to apply for a share of a multimillion dollar Government fund that will pay them to plant forests to help meet New Zealand’s obligations to reduce greenhouse gases. The ‘Afforestation Grant Scheme’ was set up as an alternative to the Emissions Trading Scheme (ETS) to encourage greater levels of greenhouse gas absorption by increasing the area of Kyoto-compliant forest.

The Northland Regional Council (NRC) is one of nine Regional Councils and one unitary authority working with MAF to distribute a $3.5 million pool of funds for planting in the 2011/12 financial year. NRC Land Programme Manager Dean Evans, says applications for a share of that pool are now open and Northlanders have until Friday 19 March to apply.

Mr Evans says a major objective of the Regional Council funding pool is to establish Kyoto-compliant forest in areas where it will not only help reduce the likely impacts of climate change, but offer other benefits including reducing erosion, nutrient leaching and flood peaks.

In return for the establishment grants, the Government gets the carbon credits for the new forest for the first 10 years. However, once those 10 years are up, the landowner can choose to take part in the ETS or the Permanent Forest Sink Initiative which would then enable them to claim the credits.

While the scheme is aimed largely at small landowners with unproductive land, it’s also open to individuals, multiple landowners, business entities and local government, provided they own the land or have the right to use it for planting forest species.

Mr Evans says the NRC will work directly with landowners to administer
and fund planting projects. “Grant rates will be disclosed annually. The 2010/11 rates for high carbon capture and storage plantings is $2200 per hectare and for slow rate forests $900 per hectare.”

Northlanders wanting to know more about the scheme can contact Land Management Staff at the Northland Regional Council on (0800) 002 004 or visit the Council’s website: www.nrc.govt.nz/treegrant

More details on the national scheme are also available from the MAF website.

Forestry's Bright Future Subject of Finance Conference

Financing future forestry growth is the focus for a new forestry conference which is drawing a wide audience from both the finance sector and many new participants in the industry. "Many people in both the finance industry and the investment sector are waking up to the real opportunities which are happening now in New Zealand forestry", said conference organiser John Stulen of the Forest Industry Engineering Association.

"Annual forestry exports were up over 6 percent during 2009 compared to the previous year when the rest of the NZ economy was in decline. In fact the forestry sector had excellent export shipments throughout 2009 and with growth prospects through 2010 looking even better", he added. Many of the countries that are key wood export markets are now rebounding from recession with resulting increases in demand.

"Key finance companies, Maori trusts and investment managers are three key groups that have recognised the importance of forestry now to the export economy of New Zealand" said Mr Stulen. "Both groups have been signing up for this conference in droves - which will make for a wide cross-section of people at this event and a great networking opportunity for everyone involved." Two of the key topics on the agenda are global developments in bioenergy markets, particularly the potential in Asia-Pacific, as well as commercial realities for carbon credits for forest owners.

The conference is led by Forest Industry Engineering Association working with the New Zealand Forest Owners Association, Wood Processors Association, Forest Industry Contractors Association, Federation of Maori Authorities, Resource Management Law Association, the Southern Wood Council and the Institute of Finance Professionals. Event sponsors include bnz partners and RISI - a major USA-based international forestry adviser.

"Important structural changes in forestry ownership through treaty settlements have added significant Maori ownership of the timberlands. With Maori communities now making up a big percentage of the workforce in traditional forestry their new land ownership role bodes well for the industry's future" said Stulen. A similar programme has been set up with forestry companies, industry associations and financial institutions in Australia which runs on 1 and 2 March 2010.

Further information on both events can be found on www.forestryfinanceevents.com

Chinese New Year Sees Dip in Freight Index

The Baltic Supramax Index (BSI) closed closed on Friday at 2048 points, a decrease of 19% or 479 points since last months report. Far East celebrations for the Chinese New Year, will be over this coming week, so it is expected that shipping activity will pick up again after that.

The BSI (Baltic Supramax Index), published by the Baltic Exchange, is the weighted average on 5 major time-charter routes. It is based on a 52,454 mt bulk carrier carrying commodities such as timber.

(Source: Cotzias Shipping)

Loggers & Sloggers Golf Tournament

WHERE: Waiotapu Golf Course, East Road, Reporoa
WHEN: 10.00AM Sunday 18th April, 2010
COST: $25.00 per head includes lunch

There will be heaps of prizes (any donations are appreciated) for all golfers and non - golfers and the trophy will be on offer again

Don’t worry if you can’t make up a team of 4 – we will match you up on the day.

Registrations must be accompanied by entry fee by 6th April 2010 so we have numbers for catering etc.

Download a registration form here.

Phone Paula 0274 517 956 or Diane (07) 376 5508
Fax: 07 376 8504
Email: paula.safetworks@xtra.co.nz
Or post to P.O.Box 2360, Taupo

Look forward to seeing you there !

$70m Sustainable Agriculture Flagship Launched

The Rudd Government have launched a new multi-million dollar research initiative to boost productivity and reduce carbon emissions across the Australia’s agricultural and forestry sectors. Unveiling the new $70 million CSIRO Sustainable Agriculture Flagship last Friday, Innovation Minister Senator Kim Carr and Agriculture Minister Tony Burke said the research will aim to strike a balance between environmental concerns and the need for ongoing prosperity in the agriculture and forestry industries.

“This important public sector research initiative will help drive innovation across the economy by addressing the critical productivity and carbon management challenges facing Australia’s agriculture and forestry industries,” Senator Carr said. “The Flagship’s goal over the next two decades is to support growth in productivity by 50% and to reduce the carbon emissions intensity of agriculture by at least 50%. This will effectively position Australia as a world leader in this field.”

Mr Burke emphasised the collaborative approach the flagship teams will take working with government, rural R&D corporations and peak agribusiness bodies and companies to produce practical, science-based policy. “The big challenge is that we need to achieve significant levels of carbon abatement as well as substantial increases in global production of food and fibre,” Mr Burke said.

“This research agenda will promote better understanding of soil carbon, biochar and methane emissions from livestock, improved farm management leading to greater productivity, and better management of our natural resources and ecosystems.”

More information on the flagship can be found at the CSIRO website.

Bioenergy Workshop Held to Inform Forest Owners

A workshop was held in February for those forest owners interested in the opportunities for expanding the use of bio-energy so that it becomes a significant contributor to New Zealand’s energy supply. More than 90 participants including representatives from government agencies, forest owners, wood processors, users of wood energy and liquid biofuels producers attended.

The meeting was part of the Bioenergy Options for New Zealand project, initiated and managed by SCION, was a catalyst for the workshop. This project is the most comprehensive assessment to date of how bioenergy can contribute to the energy supply in New Zealand. Results indicate that bioenergy can increase from its current 8.5% to around 30% of total consumer energy. Beginning with this project, the workshop detailed current bioenergy use and research in New Zealand, looked at the potential and where individual sectors may develop.

From the workshop there is a plan to develop a New Zealand Bioenergy Development Strategy. A draft strategy was presented to workshop participants. Over coming months discussion will focus on progressing this strategy.

Thanks to FICA Sponsors

We would like to thank all of the organisations who support FICA, which in turn works to promote business growth and improved safety and efficiency amongst forestry contractors for the benefit of New Zealand's Forestry Industry.

STRATEGIC PARTNERS






MEMBERS' BENEFITS – BUSINESS PARTNERS
Blackburne Group (ACCOUNTANCY & MANAGEMENT SERVICES)
UDC Finance (BANKING & ASSET FINANCE)
Sweeney Townsend & Associates (INSURANCE SERVICES)
TLC Insurance (INSURANCE SERVICES)


GOLD SPONSORS
Goughs CAT
Cableprice NZ Ltd
Mini-Tankers (Shell)
Komatsu Forests NZ
Shaw's Wire Ropes (John Shaw NZ Ltd)


SILVER SPONSORS
FITEC
Ensign
Liebherr
Timbersaws (Levin Sawmakers)
Taupo Rigging & Safety Services
Trinder Engineers
Pirtek

Wood Chips Replace Grit and Salt on Icy Roads

Specially prepared wood chips, marketed under the name Stop Gliss Bio, are claimed by the maker to be both more efficient and more environmentally friendly than either the salt or the gravel traditionally used for de-icing. The chips were pioneered two years ago in the western Swiss town of La Chaux-de-Fonds, which, at an altitude of about 1,000 metres, is known for its cold weather. Since then more and more villages and even cities have been taking an interest.

The CPAG firm which makes the chips was originally a manufacturer of industrial chemicals. But its markets crashed in 2005 and it faced closure. It was when he was looking around for a replacement product, that the idea of Stop Gliss Bio was born.

It uses small, slim rectangles of wood, impregnated with magnesium chloride. They are cut to a specific size so that they can be spread by all European standard salt spreading machines. “It’s like a coin: it always falls flat,” company owner Bernard Konowal explained. “And it has a surface five or ten times greater than a piece of gravel”

The trick is that the chip slowly releases the magnesium chloride trapped in its fibres, making itself a “nest” in the ice, from which it will not move. The experience of the past two years in La Chaux-de-Fonds has shown that the surface will not refreeze for five days if it does not snow again heavily. This contrasts with salt, which melts the ice faster, but at temperatures under about minus ten will not keep the surface unfrozen for more than a few hours. So salt may have to be reapplied several times a day...more...

(Source: www.Swissinfo.ch)

Financial Support for Tasmanian Forest Contractors

The Tasmanian State Government and State Opposition have agreed to provide a $600,000 support program for forest contractors. The Minister for Energy and Resources, David Llewellyn said both parties recognised the need to provide immediate assistance to forest contractors hardest hit by the current downturn in woodchip markets. “We expect this allocation will be sufficient to meet the urgent interest requirements based on information and calculations supplied to us by the industry representatives at our meeting yesterday,” he said.

Under the Forest Contractors Support Program, forest contractors will be able to apply for assistance to help them meet interest payments on existing loans for a period of three months. It is expected that the program will be operating by the end of the week and that contractors will be able to contact the Department of Economic Development then to apply for assistance.

“Both the State Government and Liberal Opposition recognise the issues currently facing some Tasmanian forest contractors, and I am pleased we have been able to agree to this position, which will help ease the financial burden on contractors and keep them working through this downturn,” added Mr Llewellyn.

Email Footer with Novel Environmental Message

Sick of the usual ‘think of the environment’ footers on emails these days? Here is an email footer we here at WoodWeek found worthy of mention. You may even like to add this to your own personal email signature.

Congrats to the folks at Waiariki Institute of Technology for coming up with this one.


Please consider our environment... as paper is a permanent store of atmospheric carbon print multiple copies, single sided, doubled spaced ... and save the planet.

It’s a myth that the paper industry causes deforestation. In fact, for every tree cut down to make timber or paper products, three or four are planted in its place. The world’s forested surface is actually increasing by 340,000 hectares a year.

There are around 140 million hectares of farmed trees around the world. Each of those trees spends its life gobbling up the CO2 by-products of fossil fuel use, storing the carbon and releasing vital oxygen. And products made from trees, like timber and paper, lock away that captured carbon for the lifetime of the product.

Buy and Sell

…and finally… the atheist and the bear…

An atheist was walking through the woods.

'What majestic trees! 'What powerful rivers! 'What beautiful animals! He said to himself.

As he was walking alongside the river, he heard a rustling in the bushes behind him. He turned to look. He saw a 7-foot grizzly bear charge towards him.

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