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Tasmania’s largest private forest and land asset manager Forico will welcome a new Chief Financial Officer (CFO), Chris Oddie, from 24 June 2024. Source: Timberbiz Mr Oddie is a Chartered Accountant with more than 30 years’ experience in senior executive finance, commercial and operational management, gained across the agribusiness, construction, community services, financial services and logistics sectors both in Australia and overseas. Most recently he has occupied CFO and Company Secretary roles with Regional Livestock Exchanges, Li-Ve Tasmania, and Spectran Group, where he shaped business growth and successfully managed company transformation and change. “It was vital for Forico to secure a talented and capable individual who can add value in a dynamic business environment and Chris emerged as a clear stand-out,” said Forico CEO Evangelista Albertini. “Chris’s wealth of experience in CFO and executive roles positions him optimally to continue Forico’s work in placing financial management front and centre in sustainable decision making and maintaining the leadership role we have forged in this. “The approach of mandatory nature-based reporting sees increasing demands placed on finance and accounting capacity in businesses worldwide. Forico has carved a leadership niche in this new reporting landscape, and we have no doubt Chris will enable us to achieve our vision of forestry as the industry at the centre of a sustainable future.”

Building enough homes for all Australians is again at the centre of Federal policy decisions, with the Opposition’s Budget reply acknowledging the critical importance of addressing housing supply challenges, said Master Builders Australia CEO Denita Wawn. Source: Timberbiz “To solve the housing crisis, we need to see action beyond the housing portfolio with skills, migration, infrastructure, industrial relations, defence, social services, and industry portfolios pulling in the same direction. “Builders applaud the Opposition for calling out the damaging impacts of recent industrial relations reforms and commitment to remove this complex legislation and provide more certainty for business. “The Government’s recent industrial relations legislation ultimately make home building more expensive and blow out supporting infrastructure projects. “Recent modelling found under a best-case scenario, new industrial relations laws will see at least 15,000 fewer homes and almost 8,000 fewer jobs and cost the economy over $113 billion over the next five years. “Master Builders welcomes the Opposition’s decision to extend and expand the instant asset write-off for small business to $30,000, $10,000 more than the Government’s policy but more support is needed. “The viability of the building and construction industry remains key to bringing down inflation and boosting economic growth. “We must reduce the time it takes to build and minimise increasing construction cost blowouts in infrastructure, commercial and housing projects. These costs are ultimately passed on to consumers or taxpayers. “We know higher than anticipated migration levels have exacerbated an already constrained housing system, but the Opposition has rightfully not shut the door on the very tradies we need to build more homes. “The industry needs half a million new workers over the next three to five years which we cannot fill domestically alone – skilled migration represents a vital piece of the puzzle. “Both major parties have this week committed to ensuring Australia is an attractive destination for skilled migrant tradies. “With considerable numbers of older workers retiring from the construction industry each week, the pressure to replace their decades of experience and upskilling is considerable. “We welcome incentives to encourage older workers back into the workforce without reducing pension payments. “As we gear up for the Federal Election, both major parties are now on notice to produce a plan to ensure that all policy levers are being pulled in the same direction to strengthen the industry and boost housing supply,” Ms Wawn said.  

Australia’s forest products sector has welcomed the Federal Government’s ongoing support in the 2024-25 Federal Budget. Source: Timberbiz “The Budget builds on the Australian Government’s investment since 2022 to boost timber and wood fibre supply, enhance manufacturing productivity, develop strategic industry policy planning and fund training and skills,” Australian Forest Products Association CEO Diana Hallam said. “The $3.4 million provided over four years in this Budget for development of a National Timber Fibre Strategy and a review of the 1992 National Forest Policy Statement ($1.8 million) with the states and territories will help industry plan for the long-term. Additional measures announced in biosecurity and firefighting, including aerial capabilities, are also acknowledged and appreciated.” The AFPA also welcomed the $48 million over four years to implement further reforms to the Australian Carbon Credit Unit scheme, including the establishment of a Carbon Abatement Integrity Committee to oversee the new proponent led method development. The AFPA has developed a new proponent-led method to encourage timber in the built environment which can reduce embodied emissions in midrise building by around 50%. Acknowledging the Government’s $11 billion investment in housing, Ms Hallam said the AFPA would focus its attention on working with the Government to promote and integrate Australian forest products into its housing, climate and economic agendas. “You cannot build housing without materials and timber is a key climate friendly material that will help Australia meet its net-zero by 2050 goals that were recommitted to in this Budget,” she said. “As outlined in AFPA’s How Timber Can Help Solve Australia’s Housing Crisis launched in conjunction with Master Builders Australia this week, our industry has the timber ready to go right now to build the homes of tomorrow, 50,000 more homes annually in fact. “It’s therefore disappointing no immediate measures to harness this opportunity have been included in the Budget, especially in light of plans for 40,000 new social and affordable homes under the Housing Australia Future Fund and Housing Accord. “While there is also a big Budget focus on new technologies and the Future Made in Australia Strategy, there is little evidence that the Government has considered the increased role Australia’s forest products sector can play. Many countries have identified green business opportunities as they progress towards net-zero that involve forestry industries, Australia should be no different. “The forest, wood and paper products sector is Australia’s sixth largest manufacturing industry and forestry plays a unique role in climate change mitigation. Timber is an economic carbon capture and storage technology which works at scale. Not only do our trees sequester carbon whilst growing, but once harvested, the timber is a permanent, or long lived, store of carbon in the built environment. And, in Australia, every tree harvested in forestry is replaced with at least another tree,” Ms Hallam said. “The power of embodied carbon in timber and wood as a climate solution that will help Australia meet its emission reduction targets is a proven technology that can help Australia transition to net-zero.”

May’s a funny month, you’re hanging onto the autumn weather and good times that were had over summer, knowing fully well that winter is around the corner, and it’s going to get cold and ugly. This is usually the case for our industry as log prices generally start heading south in late autumn and rain is not our friend. However, winter came early in terms of southward heading log prices, with a significant drop in April that extended into May with mainly flat pricing at the NZ$106/JAS level for A grade. Thankfully the weather has played ball with reasonably dry conditions to date, but this is cold comfort if your logging gear is parked in the paddock. There were some hopes that May would see a price increase of substance but, with both the foreign exchange rate and the shipping costs having Julie Anne Genter levels of volatility during April and early May, our hopes have been dashed. There is some good news simmering away in the background as Chinese on port inventories stabilise and demand increases into the 72km3 per day range. Supply from NZ has dropped significantly following the poor April prices and a quickly slowing CNI salvage volume. This will likely not have an impact on the CFR price (sales price in China) in the short term until inventory gets to an uncomfortably low position. The Chinese economy grew at a faster rate than predicted in Q1 with GDP at 5.3% against a Reuters poll of analysts that expected 4.6% however, it looks like the growth was primarily front loaded with March data weakening. Property remains the red-haired stepchild with Reuters reporting new house prices falling faster in March than any time in the previous eight years. Sales plummeted 23.7% in March compared to 20.5% for the previous two months so it’s clear that any significant rebound in construction is still a pipe dream. A recent Chinese trade delegation to NZ was wowed at our wooden commercial construction, and there was a definite interest in understanding how NZ’s construction techniques and technology could be commercialized in China. It was clear that the aging Chinese population is reasonably cashed up and not necessarily interested in living in a 500-story concrete and steel apartment block. If we could help develop this market segment it may provide significant demand for NZ radiata by placing more wood into a smaller but differentiated construction sector. For perspective, the wood usage per capita in China is less than 0.4m3, compared to India at 1.61m3, and a global average of 0.55m3. This indicates that there is potential of an additional demand of 210 million cubic metres if China reached the global average. There’s been a significant reduction in non-NZ supply into China in the past 12 months with Europe dropping to around 250Km3 per month and the Pacific Northwest steady at 180Km3. Australian export supply is minimal and is primary headed to India, and NZ also has a couple of vessels destined for the capital of cricket. While we still have fumigation issues with Indian shipments, any vessel headed to our commonwealth partners takes supply away from China which is a positive. Domestic demand still remains solid although the indicators are not looking flash for the NZ construction sector in the short term. Although core inflation was lower than expected, non-tradable inflation was stickier than a half-sucked wine gum, which will give Adrian Orr the mandate he needs to keep beating us over the head with his interest rate bat. Understandably, until we see a reduction in interest rates, the NZ construction sector will remain decidedly average. Nothing to see here on the carbon front with NZU’s trading in the mid $50’s for the last few months. It’s the same story as previous months with plenty of supply and average demand as most large emitters have covered off their obligations in the short term and the speculators have left the building, for the time being. This price point still provides for a very tidy return of around $1,605/ha and, with current returns from sheep, there will be many farmers very thankful for including carbon in their cashflow. So, in summary, it’s been a very volatile few months in terms of export price, and we’re currently stuck on a rinse cycle. It’s unlikely that June will see us over the NZ$120/m3 hurdle, but we are forever hopeful. It will more than likely be August before returns are at a level that will stimulate increased supply. Let’s hope the spin cycle is a bit more user friendly. Marcus Musson is a Forest360 Director. He holds a Bachelor of Forest Science with Honours from Canterbury University, New Zealand, and specialises in steep slope cable harvesting, marketing and value recovery initiatives.  

In today’s world, where environmental conservation is at the forefront of global concerns, ensuring the responsible management of our forests is paramount. One crucial tool in achieving this goal is the PEFC (Programme for the Endorsement of Forest Certification) certification. This certification plays a vital role in safeguarding our forests and promoting sustainability. But what exactly is PEFC and Responsible Wood certification, and why does it matter for our forests? PEFC certification is a globally recognised standard for promoting sustainable forest management. It provides assurance to consumers that wood and paper products bearing the PEFC label come from responsibly managed forests. The PEFC and Responsible Wood certification process involves rigorous assessments of forest management practices against a set of strict criteria, including environmental, social, and economic aspects. One of the key reasons why PEFC and Responsible Wood certification matters for our forests is its focus on sustainability. Sustainable forest management aims to balance environmental, social, and economic considerations, ensuring that forests can continue to meet the needs of present and future generations. By adhering to PEFC standards, forest managers commit to preserving biodiversity, protecting water resources, and minimising the environmental impact of forestry operations. Moreover, PEFC and Responsible Wood certification contributes to the fight against deforestation and forest degradation. By promoting responsible forest management practices, PEFC helps combat illegal logging and encourages the conservation of valuable forest ecosystems. This is particularly significant in regions where deforestation poses a severe threat to biodiversity, climate stability, and local communities. Another crucial aspect of PEFC and Responsible Wood certification is its emphasis on stakeholder engagement and social responsibility. PEFC standards require forest managers to engage with local communities, indigenous groups, and other stakeholders to ensure that their interests and concerns are taken into account. This inclusive approach fosters transparency, accountability, and trust within the forestry sector, ultimately benefiting both people and forests. Furthermore, PEFC and Responsible Wood certification supports the market demand for sustainable wood and paper products. As consumers become increasingly aware of environmental issues, there is growing demand for products that are sourced from responsibly managed forests. The PEFC label provides assurance to consumers that they are making a sustainable choice, thus driving market demand for certified products and incentivising more forest managers to adopt sustainable practices. In Australia, where forests are not only valuable ecosystems but also integral to the cultural identity of indigenous communities, PEFC and Responsible Wood certification holds particular significance. By promoting sustainable forest management practices, PEFC helps preserve Australia’s unique biodiversity and ensures the long-term viability of its forestry industry. Moreover, PEFC and Responsible Wood certification aligns with Australia’s commitment to sustainable development and environmental stewardship, contributing to the nation’s efforts to mitigate climate change and conserve natural resources. PEFC and Responsible Wood certification helps foster collaboration and knowledge-sharing within the forestry sector. By bringing together stakeholders from government, industry, academia, and civil society, PEFC creates a platform for exchanging best practices, innovative ideas, and scientific research. This collaborative approach enables continuous improvement in forest management techniques, leading to more effective conservation efforts and better outcomes for both forests and communities. Additionally, PEFC and Responsible Wood certification enhances the competitiveness of forest products in the global market. With growing awareness of sustainability issues, many businesses and government agencies around the world require certification as a prerequisite for purchasing wood and paper products. By obtaining PEFC and Responsible Wood certification, forest managers gain access to these markets and can command premium prices for their certified products. This not only benefits certified forest owners but also incentivises others to improve their practices to remain competitive in an increasingly sustainable marketplace. Ultimately, PEFC certification helps drive positive change throughout the forestry supply chain, from forest management to product manufacturing and distribution, ensuring a more sustainable future for our forests and planet. PEFC and Responsible Wood certification plays a crucial role in ensuring the sustainability and responsible management of our forests. By adhering to PEFC standards, forest managers demonstrate their commitment to environmental stewardship, social responsibility, and sustainable development. Through certification, consumers can make informed choices that support the conservation of forests worldwide. As we strive to build a more sustainable future, PEFC and Responsible Wood certification serves as a valuable tool in safeguarding our forests for generations to come.