WoodWeek – 30 March 2022

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Last week’s storms clearly had a major impact on our forest industry workforce and families across the East Coast region. There have been some learnings as a result. Eastland Wood Council’s Philip Hope says, “In the past few years forest owners in the Tairāwhiti region have implemented a number of measures to ensure that harvesting debris from our forests is managed and mitigated. This extreme weather event has provided us with confidence that we are on the right track, and the changes we are implementing are having a positive effect in reducing the amount and size of harvesting debris emanating from our forests. Of course, there is more to be done, and we are committed to that.”

This week we've got our monthly update from the team at Champion Freight. With statistics for log export reporting just in for the February month, the slowdown we've seen in log exports to China has continued through this month. Exports for the month were well down on the same month in 2021.

Turning to carbon markets, recently the Government announced the New Zealand Aluminium Smelter (NZAS) will no longer receive emission units for its electricity consumption under the contract - perhaps a 60% reduction based on details in the cabinet paper. NZU prices have firmed slightly following this proactive release.

We hope you enjoy this week’s statistic in a snapshot: SnapSTAT. on this. Thanks to our feature sponsors - Chainsaw & Outdoor Power and Oregon for their support.

In Australia, the Future Foresters Initiative (FFI) is looking for new leaders for their national committee. If you are an early career forester or forestry student and would like to help pave the way for the next generation of foresters in Australia, the FFI committee is the perfect opportunity for you.

Finally in other news, road-user charges (RUC) will be cut by 36 per cent across all rates for three months from late April after the government revealed full details of its transport package in response to the “global energy crisis”. (not covered in today’s news).

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EWC: Storm mitigation measures on track

(Eastland Wood Council) New mitigation measures on right track -The damage and impact this March 2022 weather event has had on whānau, communities and infrastructure in our region has been terrible, and we first and foremost extend our thoughts to those impacted.

In the past few years forest owners in the Tairāwhiti region have implemented a number of measures to ensure that harvesting debris from our forests is managed and mitigated. This extreme weather event has provided us with confidence that we are on the right track, and the changes we are implementing are having a positive effect in reducing the amount and size of harvesting debris emanating from our forests. Of course, there is more to be done, and we are committed to that.

What is noticeable after this event is the predominance in the woody debris of poplar, willow and other species of trees not associated with pine forests.

We have a number of methodologies in place, and while no one solution is a ‘silver bullet’ we believe it’s taking a much more informed approach to forestry in general, and using a number of methodologies in unison, that is having an impact. That includes things like reassessing where and how we are planting, excluding some areas that are high risk, and planting other species like natives on land that is vulnerable. We also prioritise carting away logs from unstable areas of the forest.

An environmental focus group, consisting of Eastland Wood Council members, has been established to ensure we are iteratively looking at solutions to reduce the risks from flood events. This includes a Memorandum of Understanding, containing forestry practises that EWC members will undertake to mitigate mass mobilisation of harvesting debris. It is in the process of being peer reviewed by environmental planners and Professor Rien Visser at School of Forestry, University of Canterbury.

We are currently keeping all our heavy vehicles off the road to prevent further damage and allow contractors to repair the roads. We are committed to supporting the community to recover from this emergency and are offering our services with machinery and personnel. At the moment, our members are in planning mode, having undertaken aerial and ground assessments, and now planning for the clean-up phase, supporting our neighbours and community as required.

Philip Hope
Eastland Wood Council - Te Kaunihera Pororākau o Te Tairāwhiti





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Champion Freight Log Export Market Update

This week we've got our monthly update from the team at Champion Freight. With statistics for log export reporting just in for the February month, the slowdown we've seen in log exports to China has continued through this month. Exports for the month were well down on the same month in 2021.

For the month ended February our log exports to China saw shipments dropped by 15 percent, compared to Feb 2021, dragging overall log exports down 12 percent. Notably, logs to South Korea were up 64 percent for the month.

Year-on-year the chart shows total log export values to China to the end of February were up 27 percent contributing to overall log exports being buoyed by 20 percent across all export markets. Log exports to South Korea were up for the year by 14 percent up while volumes while logs to Japan were up 10 percent and to India were down 75 percent.



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FY2021: China imported more NZ Lumber

Rise in China’s sawn softwood imports from Brazil and New Zealand ~ According to Customs data sawnwood imports from Russia and Canada, the two main source countries of China’s dropped 13% and 45% respectively in 2021. The volume of sawn softwood imports from Russia accounted for 66% of the national total in 2021 which has been the case for 7 consecutive years. The market share of China’s sawn softwood imports from Canada has declined steadily since 2014 and was just 8% of total imports in 2021.

Source: ITTO TTM Report 26:5 (15Mar22)



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SnapStat - Carbon market update graphs




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C3: Big is good for loading log ships

It’s been a while since ‘that Mitre 10 guy’ came on our TV screens shouting “Big is good!” but it does stick with you. On that theme we have some massive news from C3 and Page Macrae Engineering on the log grapple front:

Built in collaboration with LINX Cargo Care Group, C3 Limited’s new Log Vessel Grapples (LVG) are New Zealand made and owned and are set to revolutionise the domestic industry.

“The entire PME team is proud to be involved in this project with C3. Although we have innovated a number of products for customers in the past, the C3 LVG’s are a real step forward for PME given the level of automation and ‘smarts’. We look forward to building on our already strong relationship with C3 through assisting them to effectively meet their customer’s needs,” said Dave Body, Page Macrae Engineering CEO.

More >>

Source: C3 Ltd



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Carbon Match: Carbon market update

Big changes to industrial allocation for smelter ~ Late last week, the Ministry for Environment proactively released a Cabinet paper which sought agreement to set a new electricity allocation factor for the New Zealand Aluminium Smelter (NZAS). This will reduce its emission unit allocation under the NZ ETS.

To date the NZ ETS has imposed direct (emissions from aluminium smelting) and indirect (emissions from electricity consumption) costs on NZAS. But industries that are emissions intensive and trade exposed (EITE) receive free allocations from the government each year to mitigate these costs.

In 2020, NZAS accounted for 1.56 million NZUs of a total free allocation to industry of 7.7 million NZUs (20%). However, NZAS and Meridian Energy Ltd renegotiated the main electricity contract in 2021, and following on from that Cabinet has now agreed to set NZAS’s electricity allocation factor to 0.0 tCO2-e/MWh for the electricity consumed under this contract.

So NZAS will no longer receive emission units for its electricity consumption under the contract - perhaps a 60% reduction based on details in the cabinet paper. NZU prices have firmed slightly following this proactive release, last trading at $74 on Carbon Match.

While the impact on supply is not enormous, it is still significant, and the bigger question for NZU holders is what this might herald for other recipients of the industrial allocation.

To that end, the Ministry for the Environment has also today released a its summary of submissions received during the public consultation on proposed reforms to industrial allocation in the New Zealand Emissions Trading Scheme, which you can find here.

Watch this space - there's more to come.

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Source: Carbon Match


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Carbon offset values questioned

Useless carbon offsets sold - Seller calls for change Lyme Timber CEO Jim Hourdequin wants to fix a broken system to create a market that actually helps slow climate change.

Jim Hourdequin is one of the planet’s biggest sellers of carbon offsets—the widely used instruments that are supposed to act as a balm for the rapidly overheating climate. His company earned $53 million from these environmental transactions over the past two years.

But now the 47-year-old timber executive is calling out the entire system, including some of his own projects, as broken and shortchanging the climate. Although critics for years have revealed how carbon markets fail to deliver their intended climate benefits, Hourdequin is likely the first major industry participant to admonish the market from the inside. By speaking out, he says, he hopes he can help repair the flawed system: “We don’t think that forest carbon markets can survive and grow if they do not deliver real climate value.”

More >>





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East coast road repairs

East Coast: Truck Movements Limited For Road Repairs - Logging trucks are limited to movement between only Dunstan Road and Eastland Port and others are being asked for patience, as contractors work hard to inspect and repair a very sodden and rain-affected network.

While an immediate access route is being established to maintain critical services, Waka Kotahi is working to have a temporary fix in place by 13 April for the Maungahauini Bridge at Tokomaru Bay to restore the vital Coast link until a permanent solution is completed. Council is working closely with Eastland Wood Council, forestry contractors and the Port on a prioritised plan to progressively open access to more roads and forests. Mata, Ihungia, Tauwhareparae and Fernside roads are closed to all vehicles except emergency services vehicles – and only between the hours of 7am and 6pm – until further notice. Some emergency service providers have received permission from Tairāwhiti Civil Defence group controller David Wilson to access these roads. These vehicles had a maximum weight of 16 tonnes on Ihungia Road.

“Limiting traffic like this will allow our contractors and emergency service providers to be able to safely and efficiently assist our communities,” said Mr Wilson. “We know some people are using the Mata/Ihungia as a bypass route with the bridge at Tokomaru Bay out, but last night our contractors had to help a motorist who got stuck. It just isn’t safe.”

He said it could be necessary to introduce security at the start of the Mata/Ihungia road to make sure those who needed could access the route. “There is still a historical earth movement at the 3km mark on Ihungia Road,” said Mr Wilson.

Mata Road had to be closed for a short period on Friday for contactors to remove a log jam from the Pauariki Bridge.

The forestry industry has offered its support to contractors working on the damaged roads with heavy machinery, trucks, radio communications and people.


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Future Foresters seek new members

(Australia) The Future Foresters Initiative (FFI) is a committee of Forestry Australia comprising eight students, researchers and early career forestry professionals who are passionate about forests, forestry and leadership in the sector. We are currently looking for new committee members to help us achieve our objectives for 2022 and to define new goals for the future of our vibrant committee.

What are we looking for? The FFI committee is planning to meet in person in May 2022 for a planning day where we will set our objectives for the year ahead—we want you to be part of this! We conduct monthly video conference meetings to discuss progress on our objectives and other relevant matters and opportunities. If you are an early career forester or forestry student and would like to help pave the way for the next generation of foresters in Australia, the FFI committee is the perfect opportunity for you.

How to apply Please send a 200 word expression of interest which details why you want to join the committee and an up to date CV to futureforesters@gmail.com by Friday 8 April 2022.

About the FFI The FFI was established as a platform for young and emerging forest scientists, professionals, managers and growers to connect with each other and the broader Australian forestry community. FFI committee members have regular conference calls to discuss how Forestry Australia and the forest sector as a whole are addressing issues of importance to emerging foresters.

In particular, the FFI aims to support professional development by facilitating access to networking, mentoring and career development events. Additionally, a key role of the FFI is to engage broadly with Forestry Australia’s staff, board and volunteers, advising them on issues that are critical to the future of forestry and providing guidance on the direction of Forestry Australia strategies and activities.

The FFI is committed to representing the communities in which we live and work. Diversity of thought, experience and background is acknowledged and celebrated and we welcome and encourage applications from everyone across our community.

If you require further information, please contact us at futureforesters@gmail.com and visit our website for more information click here >>





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Carters IPO on the cards

Graeme Hart’s Rank Group has hired brokers Barrenjoey and Forsyth Barr to start briefing investors about a potential A$1 billion float of its Carters building products manufacturing and distribution operations in New Zealand, the Australian Financial Review reported on Monday.

Citing fund manager sources, the AFR-$$$ reported the spin-off would be dubbed Building Supplies Group and had about $1.55b of revenue per year, along with EBIT of about $150 million. It reported the float would be expected to raise over A$500m with a valuation of over A$1b.

Source: BusinessDesk


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Jobs



Buy and Sell



... and finally ... Conflicting Proverbs

Actions speak louder than words.
The pen is mightier than the sword.

Look before you leap.
He who hesitates is lost.

Many hands make light work.
Too many cooks spoil the broth.

Beware of Greeks bearing gifts.
Don't look a gift horse in the mouth.

Clothes make the man.
Don't judge a book by its cover.

Nothing ventured, nothing gained.
Better safe than sorry.

What will be, will be.
Life is what you make it.

What's good for the goose is good for the gander.
One man's meat is another man's poison.

The more, the merrier.
Two's company; three's a crowd

Is it any wonder we're all confused.



That's all for our mid-week wood news roundup.

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