All posts by IFI_admin

Worries over Bush Administration plans to open up forest areas

The Center for Biological Diversity says one-third of America’s national forests are protected from road-building and other industrial development by the Roadless Area Conservation Rule — but now the administration is working state-by-state to open these treasured places to logging, mining and other development. “As it gets ready to head out the door, the Bush government seems intent on handing the keys to our national forests over to the timber and mining industries. “Currently at stake:

•Alaska’s Tongass National Forest, where the administration has proposed to increase logging in the world’s largest remaining temperate rainforest
•Idaho’s Greater Yellowstone Ecosystem, where the administration has announced plans to open the largest swath of wild forest in the Lower 48 to logging and mining
•Colorado’s Rocky Mountains, where the administration plans to open to development a majestic landscape with trout streams, rock-ribbed trails, and diverse wildlife that make it a world-class destination for outdoor recreation.

 “The Roadless Area Conservation Rule currently protects these special places despite ongoing efforts by the Bush administration to undo it — stymied only because Americans stood tall and took action. Our national forests should be our gift to future generations, not a giveaway to corporate special interests. “In a triumph of special interests over public interest, the Roadless Area Conservation Rule, one of the most significant and popular conservation measures in U.S. history, was repealed by the Bush administration in May 2005. Issued in January 2001 following the most extensive public rulemaking in history, this landmark conservation initiative protected 58.5 million acres of wild roadless areas in our national forests from most commercial logging and road building. With more than one-half of America’s national forests already open to logging, mining, and drilling, the rule was intended to preserve the last third of undeveloped forests as a home for wildlife, a haven for recreation, and a heritage for future generations. The Roadless Area Conservation Rule was enacted following more than two decades of broad debate and three years of official review and public participation. It provided a national policy for national lands that was hailed for refocusing resources on maintaining roads while protecting wildlife habitat, clean air, and water quality. “The new roadless policy issued in 2005 left millions of acres of our last wild forests at risk from logging, mining, drilling, and other harmful activities. It replaces environmental protection with a voluntary process that allows governors to petition for protection of roadless areas in their states — or for more logging, mining, or drilling. In the end the policy does not ensure any type of federal protection for our heritage public lands. One justification of the administration’s repeal of the 2001 rule was that its fate was tied up in the courts. Defenders of the 2001 rule point out, however, that the administration has refused to defend it in court cases brought by the timber industry and its allies, breaking its promise to do so. Most conservationists were not surprised by the administration’s action. The repeal was consistent with a set of policy positions that favored resource-extracting interests through generous giveaways to corporations. The most egregious example, prior to repeal of the Roadless Rule in its entirety, was when the administration exempted the nation’s largest national forest, Alaska’s Tongass, from the Roadless Rule. As a result of the new rule, millions of acres of public forest are now at risk of being opened to development.”

Sawmill chip shortages escalate in the US

The plunging demand for lumber will lead to significant losses of residual chips, crucial input to North American pulp and paper mills. “This will likely be the worst-ever,” a company analyst has told International Woodfiber Report. “The chip slump, predicted for several quarters but realised to only a lesser degree through 2007, will arrive in earnest this year,” contacts said in March. “Most pulp and paper mills are “already preparing for the worst,” one said, “but there’s not enough available pulpwood to fill the gap.

“One recent projection by RISI indicates US softwood lumber production should slide throughout the year, ending down possibly 15-20% compared to robust levels last seen in 2006. The related volume losses in chips would total more than 14 Mt in the US. The worst hit region already is the Pacific Northwest. “Worst of all are mills in British Columbia and Eastern Canada,” which are 66% and 71% residual dependant, respectively, another source noted. “Throughout the decline, which began in earnest just in December, buyers have jockeyed to lock in sawmill chip contracts with gradually higher prices. This year, if a lumber mill will guarantee some volume, they can almost set their price,” a Northwest contact said.

Source: RISI

P&G and Domtar step up sustainable foresty committments

Procter & Gamble and Domtar Corp have joined the North America Forest & Trade Network (NAFTN) in a bid to make their wood-based products more sustainably sourced. This announcement from the World Wildlife Fund (WWF) is the second development to cast a spotlight on the issue of sustainable forest sourcing. On Tuesday, ForestEthics and Dogwood Alliance released a report card grading five major office supply companies for their paper purchasing policies.

NAFTN is the North American arm of the Global Forest & Trade Network created by WWF as an initiative to eradicate illegal logging and better the management of fragile forests. Members must agree to eliminate all trade in wood from illegal, unknown or controversial sources and introduce trade in wood from certain areas. Acceptable sources must be designated: recycled; known, licensed and complying with policy; verified legal; and certified or in the process of getting certified. Domtar already is working with the WWF to make all of its managed forest land in Canada certified by Forest Stewardship Council standards. Domtar also has committed to promote FSC-certified papers, such as its EarthChoice line. Procter & Gamble will begin by working with the group on its family care business, which includes brands such as Bounty, Charmin and Puffs.

Climate change and forest certification

The PEFC Council has issued a position paper on the carbon issue and forest certification. The paper outlines possible links between the mitigation of global climate change and carbon emission and their interactions with forest certification activities. PEFC believes that any credible mechanism of carbon credit trading must recognise and reward the carbon sink created by forests managed in a sustainable manner as demonstrated through their independent credible certification. PEFC calls on all key decision makers to recognise that:

•Forestry represents an important climate change mitigation potential
•Only sustainably managed forests should qualify for carbon credits or any other payments relating to afforestation, reduction of deforestation; forest management (maintaining or increasing stand-level or landscape level carbon density) or increasing off-site carbon stocks in wood based products
•Sustainable forest management must be demonstrated through credible certification like PEFC.

The PEFC is committed to working with others in the international community to design carbon trading facilities and other mechanism which motivate and reward people who manage their forest sustainably as a significant contribution to climate change mitigation. http://www.pefc.org/internet/resources/5_1184_1842_file.2166.pdf

Afforestation program flagged for Nigeria

The World Bank will embark on afforestation program in 12 northern states of Nigeria, an official of Nigerian Forestry Association (NFA) has been quoted as saying, according to an online report out of China on ChinaDaily.com.

The states included are said to be Kaduna, Kano, Katsina, Kebbi, Kwara, Borno, Bauchi, Zamfara, Yobe, Niger, Sokoto and Jigawa. The program, which will be jointly sponsored by the World Bank and NGO, Advance Global, will take off in the 2008 rainy season, the report stated. Alhaji Abdullahi Mohammed, NFA President and the Director of Forestry Resources under the Ministry of Environment, said the program would involve farmers in the states. He said farmers would be paid US$5 for every tree planted in their respective farms. After six months, a team would move round the affected areas to take census of the trees planted, while a workshop has already been organised for forestry officers to supervise the program’s start-up. The President said five farmers would be selected from five wards in each local government area of the participating states to ensure wider coverage.

Ruukki Group continues with Russian pursuit

Finnish wood supplier, the Ruukki Group, will continue with attempts to establish a business base in Russia after following the rejection of its previous proposal was rejected, according to Bloomberg report.

“If we’re not able to finalise the overall agreements and priority-investor status by the end of this year, I’ll be very disappointed,” CEO Matti Vikkula said in an interview. Ruukki will narrow down possible locations during the current quarter but it is understood it is targeting a location west of the Ural. Vikkula said the company had also been approached in regards to joint ventures with others already set up in Russia, Bloomberg reported. Ruukki and Finnish papermakers Stora Enso and UPM-Kymmene are seeking footholds in Russia as a reaction to the new tariffs on wood imports. Ruukki is looking to raise further capital for the project and Vikkula said the sale of homebuilding and healthcare assets in the first half was an option. “The only risk is the country, Russia,” said Pierre Moncheur, who controls about 5% of Ruukki Group through his Geneva-based investment company. “The money is still here, and if something happens before it’s invested, that’s just a delay. Everyone is very confident.”

Ponsse secures senior posts

Ponsse Oyj has appointed Dr Juho Nummela as the company’s new President and CEO. Nummela will assume his new position on 1 June 2008.

Nummela has been working for Ponsse Oyj since 2002, beginning his time as the Director of Quality and IT Department. In 2005, he became a member of the board. Since 2006 he has been a Factory Director. Ponsse has also appointed Jarmo Vidgrén to the position of Group Sales and Marketing Director and Deputy to the CEO and President. He will move to his new tasks from the position of Sales Director responsible for domestic and Northern European sales. Einari Vidgrén, Chairman: “In the past few years, Ponsse has developed strongly. As for the company’s operations, we find it very important to continue with the same strategy that has taken the company further. “We also want re-arrange managerial duties so that the CEO has a clear role in implementing the company’s strategy and developing its operations. “At the same time, we are investing more in sales and marketing by establishing the post of a Group Sales and Marketing Director to whom all regional directors will report. Within the company we have strong competence and people who can continue the development. “The appointment of Juho Nummela meets the expectations we have for the new President and CEO.”

Asian deforestation must cease: UN

A report from the United Nations has warned that the loss of more than 28,000 km2 of forest every year in Asia must be stopped and reversed immediately, according to a Reuters report.

A UN climate conference in Bali last year agreed to launch pilot projects to grant poor countries credits for slowing deforestation under a new long-term climate pact beyond 2012. “If these trends continue, land-use emissions are likely to increase until 2050; much damage will already have been done by the time they start to recede,” the report said. “Reversing deforestation is thus critical.” Experts say reversing the trend would also help reduce the impact of soil erosion and drought, protect against floods and increase bio-diversity, and thus food security. The report said governments in Asia and the Pacific were likely to face “eco-refugees” from their own countries and elsewhere in the region, seeking shelter from short term and long term environmental catastrophes. “These refugees are likely to head to cities and towns, so government needs to plan for this influx both in the short term and long term.” it said. “A regional food bank is one measure that countries can adopt for mutual assistance.” The report said it was unfair to expect developing countries to sacrifice growth to cut emissions, but it was also imperative to include them in all mitigating efforts, Reuters reported. “The solution is invest in carbon-reducing technologies,” the UN said. The UN estimates the cost of returning greenhouse gas emissions to present levels by 2030 would be about $200 billion annually through measures such as investing in energy efficiency and low-carbon renewable energy. “Top polluters” such as China and India could help other developing countries in their region develop more practical and affordable green technologies. “The countries of the region, whatever measure they undertake, need to develop policies that reduce greenhouse gas emissions.”

Ponsse increased sales by 76%

The market for forest machines has been stable in Sweden for many years. But in 2007 something happened that could turn the market upside down in the long term. Market challenger Ponsse increased its share of the forwarder market by 38 per cent.

The Finnish manufacturer Ponsse greatly strengthened its position in Sweden following Hurricane Gudrun in 2005. At that time it was vital to get hold of forest machines regardless of their colour or brand. Ponsse was in a position to deliver and sold 21 forwarders that year. The sales were small compared with John Deere’s 150 and Komatsu’s 99 but it was a clear market shift.”We decided to continue to seize market share by recruiting experienced staff and creating a good service organisation,” explains Benny Sondell, managing director of Ponsse in Sweden. In 2006 the total market shrank from 353 to 299 forwarders. Ponsse succeeded in retaining its market share and continued its challenge even though market analysts predicted that machine purchases would fall further during 2007.

Had customers all to itself “We stuck to our plans and in the spring of 2007 we implemented our biggest marketing campaign ever in Sweden,” Benny says. “We did a road show in fifteen locations from Malmö in the south to Älvsbyn in the north and finished up at SkogsElmia.”

Other forest machine manufacturers had chosen to skip the fair and focus their efforts on Nolia in Umeå and the big international gathering at Elmia Wood 2009. Ponsse could present its new products to 33,483 visitors with no competition. Statistics reveal that the venture worked. Ponsse sold 30 forwarders in Sweden in 2007. In terms of the number of units sold, that translates into a 76 per cent increase. At the same time, the total market grew strongly in contrast to all predictions. 2007 saw new registrations of 382 forwarders, or 29 more than the peak year in the wake of Hurricane Gudrun. Ponsse’s market share rose from 6 to 8 per cent, which is an increase of 38 per cent.

Both trade fairs needed In hindsight it would appear to have been a classic mistake to leave the market challenger from Finland alone with southern Sweden’s forest owners and contractors. Benny Sondell refrains from criticising his colleagues’ decision:

“We market ourselves in our own way and exhibit where the customers are. SkogsElmia is an established trade fair. Forest owners and contractors come here whether we exhibit or not.”

He sees no conflict between the two big organisers of forestry fairs in Sweden, Elmia in the south and Nolia in the north. Ponsse exhibits at both, and would do so even if they occurred soon after each other.

“Sweden is a long country from north to south. Not many forest contractors in the south travel up to Umeå to look at machines, and vice versa. Whether it’s a matter of trade fairs or the service organisation, you have to go where the customers are.”

Second biggest in the world The next big forestry fair is Elmia Wood 2009, which is indisputably a key meeting place for the international forestry industry. The debate over whether to exhibit in the north or south of Sweden will recur in 2011, when SkogsElmia and SkogsNolia are both held again.

“We don’t believe there is any conflict – we’ll be exhibiting at both,” Benny says.

It’s not just in Sweden that Ponsse is taking market share. At home in Finland the company has overtaken John Deere and is the market leader. Sales are steaming ahead in Russia and Ponsse is starting to manufacture in South America. Just a few years ago Ponsse was a niche manufacturer. Now it is number two in the world after John Deere for CTL forest machines.

UN agency appeals for data on world forests for most detailed study yet

In preparation for the most comprehensive picture ever drawn of the state of the Earth’s forests, which cover 30% of its land and are a crucial factor in mitigating climate change, the United Nations agricultural agency has put out a call for accurate data.

“Stronger support from countries and advances in communication technology will make the next Global Forest Resources Assessment the most comprehensive and reliable yet,” Jan Heino of the Forestry Department of the Food and Agriculture Organization (FAO) said of the assessment that will be published in 2010. The last survey was produced with the help of over 800 people in teams working in 172 countries and many more are likely to be involved this time around, with some 220 experts are attending a recent meeting at FAO to kick-start the process. Started over 60 years ago, the Global Forest Resources Assessment process provides information on how much forest exists, how it is being managed and how it is being lost, the FAO explains. Global forest cover currently amounts to just under 4,000 Mha. Although the rate of net loss of forest has decreased in recent years, the world is still losing about 200 km2/d of forest, FAO data indicates. Besides generating data on deforestation, new forestation and natural forest expansion, the new survey will provide insight into the land uses that are replacing forests and the forests’ role in climate change. In addition, the 2010 assessment will expand knowledge of the biological diversity of forests and will include a special study on trees outside forests, a survey of the area of forest under sustainable forest management, and data on forest policy. Among the new technologies being used is an ambitious new global remote sensing survey that uses satellite data from 1975, 1990, 2000 and 2005.