New wood availability forecasts for the East Coast compiled by the Ministry of Agriculture and Forestry will assist with future regional planning for the forest industry and provide infrastructure agencies with credible data for future planning, says John Vaney, Regional Team Leader with MAF Policy in Rotorua, New Zealand.

The forecasts covering the period 2007 to 2040 have been developed by incorporating harvesting intentions of the region’s large-scale forest owners through to the year ended 2015. The forecasts indicate that the availability of Radiata pine from the East Coast will gradually increase from 2007 through to 2013 from 1.1 million m3/y to around 2 million m3/y. From this point forward the East Coast regional harvest has the potential to increase to around 3.4 million m3/y after 2020 through to 2034, after which the total harvest is projected to decline if no new land planting occurs. The timing (and level) of decrease will depend on the rate at which the region’s post-1990 forests are harvested, the extent to which they are replanted, and also the level of new land planting. The forecasts are based on no new land planting. “The report confirms that the East Coast Wood Supply Region has an extensive forest growing industry with considerable potential for future utilisation and development”, says Julian Kohn, Chairman of the Eastland Wood Council. Most of the potential increase in wood availability from 2013 on will come from the region’s small-scale forest growers who established forests during the 1990s. The actual timing of the harvest from these forests will depend on market conditions and the decisions of a number of small-scale owners. Market conditions and logistical constraints (availability of logging crews, transport capacity, and wood processing capacity) will limit how quickly the additional wood available from small-scale owners’ forests can be harvested in that period. The forecasts provide a clear signal that the transport infrastructure and harvesting capacity in the region will continue to come under increasing pressure and that ongoing investment will be required in these areas. There will also be potential from that time for new wood processing investment or expansion of existing plants”, says Julian Kohn. The Ministry of Agriculture and Forestry is currently finalising a report on the East Coast Forestry Industry, in association with the Eastland Wood Council and the major growers and processors in the region. This report will contain these wood availability forecasts along with descriptions of the region’s forests, wood processing industries and infrastructure. The report will also describe the opportunities and constraints facing the forest industry on the East Coast. This report is expected to be published by June 2008. The wood availability forecasts are also available online at: http://www.maf.govt.nz/mafnet/publications/wood-availability/hawkes-bay/

There has been much reported concern recently about continuing deforestation in Amazonia. But there are of course some sustainable operations there. One reported recently by Reuters is a plantation operation on the Jari River in northern Brazil, which “is being hailed as a model for preserving the world’s largest rain forest.” Located in the heart of Amazonia, the Jari industrial complex (http://www.jari.com.br/) has an annual production capacity of 360,000 t of bleached short-fiber eucalyptus woodpulp. Jari is part of Grupo ORSA. Its forests are certified by the Forest Stewardship Council (FSC) and all the woodpulp produced by Jari Celulose comes solely from sustainable eucalyptus plantations.

“Selling certified timber harvested in a sustainable way is the only solution for the Amazon,” Augusto Praxedes Neto, a manager at Grupo ORSA told Reuters. See http://www.planetark.com/dailynewsstory.cfm/newsid/47026/story.htm Jari Celulose harvests only 30 m2/ha of timber every 30 years, just under the natural regeneration rate. Trees are felled and transported so as to cause minimal impact on the forest and are recorded in a computerised inventory. “I can tell a customer in Europe which tree his table is made of,” Operations Manager Euclides Reckziegel told Reuters. In contrast, “illegal loggers kill 30 trees to get one. These projects protect far more trees than they extract,” Ana Yang of the FSC in Brazil told Reuters. The FSC certifies and inspects the Jari project every six months. Harvesting began in 2003. Much of Para state surrounding the Jari Celulose is troubled by the kind of land disputes that cause death and destruction throughout the Amazon. In one such dispute in February 2005, Dorothy Stang, a US nun and human rights activist, was killed by gunmen hired by ranchers. Jari’s 1.7-Mha is just over half the size of Belgium. Roughly 80% of it is standing forest and one-third is managed and FSC certified. “If the government were to put the same effort into sustainable forest management that it put into developing agriculture in the 1970s and 1980s we could preserve much of the Amazon,” Judson Ferreira, a senior researcher with government farm research institute Embrapa, told Reuters. The government is taking a more cautious approach. In March it will select three companies to manage just 96,000 ha of forest, the first such tender of federal land. “Forestry management is a great alternative and ORSA is a good example of it but we want to take things slowly,” Tasso Rezende, Head of Brazil’s forestry service, told Reuters. “We need several projects doing well over a long period — private ownership in the Amazon is controversial.” For forestry management to take off, authorities need to tackle uncertainty over land ownership, crack down on illegal deforestation, and cut red tape, Yang said. “It’s still easier to get a license to cut trees than to plant or manage them,” she said.

Unprecedented levels of new investment and the ability of wood processors to fight off fierce global competition is a “major success story” for the timber industry in Scotland, according to Environment Minister Michael Russell.

In the last two years alone, investment in new wood processing projects has amounted to £250 million ($488 million), which is helping to develop a number of new sawmills and major biomass energy projects around the country. Over 40,000 jobs are now supported by the forestry sector in Scotland and the industry generates around £760 million (more than $1.48 billion) each year to the economy. Speaking at a forestry debate in the Scottish Parliament, Russell highlighted that Scottish Government support for the forestry sector was also at record levels. “Confidence in the industry is high and new investment is happening right across Scotland from the Borders and Dumfries to Irvine and Fort William,” he said.  “The unprecedented levels of investment in the processing and wood utilisation sector can only be described as a major success story. Our processors have fought off fierce global competition and managed to remain profitable through a period of historically low timber prices. This is testament to the industry’s business acumen and its ability to adapt and innovate. “In fact, our forests currently produce some 6.6 million m3 of softwood round timber each year and this is set to rise to nearly 9 million m3 by 2016. An interesting analysis of statistics suggest that timber consumption is now running at 6.5 million m3/y which could demonstrate that Scotland is currently self sufficient in wood related material. However, it is also important to realise that Scotland makes a key contribution to the UK’s timber needs, helping it to reduce its global carbon footprint. “The Scottish Government is providing strong support for the sector with £269 million ($524 million) being allocated to forestry measures through the Scottish Rural Development Program. This funding will act as a catalyst for new planting, enabling the sector to plant around 10,000 ha/y. This growth in planting will also help our aspiration of expanding woodland cover to 25% of Scotland’s land area this century. “The emergence of the bioenergy sector also represents a huge opportunity for Scotland’s forests and woodlands. The Scottish Biomass Support Scheme has been well subscribed, and 67 new projects worth £17 million ($33.1 million) will come on stream this year, assisted by £7.5 million ($14.6 million) of Scottish Government funding. “Forestry is an integral part of sustainable rural development. It creates employment, makes great use of a natural renewable resource, contributes to the local and national economy and supports community cohesion. This is why the Scottish Government is committed to helping this sector realise its full potential, firmly establishing Scotland at the heart of UK forestry. “

The co-determination negotiations at UPM’s timber components and planing mills in Luumäki have been concluded with the company deciding to close the operation.

The purpose of the negotiations was to clarify options for continuing the operations of the timber component mill in a situation where the mill has been unprofitable for a long time. Simultaneously, the competitiveness and the market situation of the mill’s component products have weakened notably. As for the planing operations, the alternatives to continue the operations at Luumäki were investigated. “Based on the negotiations, UPM has decided to close down the operations of Luumäki production units and discontinue the production of timber components in Luumäki,” the company stated. “The operations will cease during 2008. UPM has decided to concentrate the planing operations to its other mills.” UPM is actively seeking to relocate the Luumäki personnel, some 50 people, to other UPM mills.

The goal of a 38% increase in the use of renewable energy, would be extremely demanding and costly for Finland to implement. An increase of just one percentage point here is roughly equivalent to the volume of wood used by one pulp mill in an entire year, according to the Finnish Forest Industries Federation.

Emissions trading gives renewable energy sources a competitive advantage and makes wood more appealing as a fuel. Despite this, the European Commission is considering a new ‘green energy’ trading mechanism alongside emissions trading. This new mechanism is unnecessary. It must be left to the Member States themselves to decide how to promote renewable energy sources, as this is the best way to ensure that local conditions are taken into account, the Federation says. The forest industry is the largest producer of renewable energy in Finland by far. Nearly 70% of Finland’s renewable energy is generated as a by-product of the forest industry. About 40% of the wood received by the mills ends up in bioenergy production through a variety of process stages. Further negotiations must focus on scaling and focusing renewable energy promotion measures so as to encourage the bringing of wood and other biomass onto the market. The Finnish Forest Industries Federation considers it important and recommendable to increase the cost-efficient use of renewable energy. All renewable energy sources (biomass, hydropower, wind power, waste and geothermal) and emission-free energy sources such as nuclear power must be considered as options in efforts to curb global warming. Increasing the use of bioenergy in Finland and elsewhere in the EU is possible by improving the availability of wood and by increasing the collecting of wood harvesting waste. Classifying peat as a slowly renewable energy source would also improve the chances of actually achieving the EU’s objectives in the use of renewable energy.

Ponsse’s financial statement for last year showed: – Order intake rose by 49% to €361.2 million. – Consolidated turnover rose by 30% to €310.1 million. – Consolidated operating profit rose by 25% to €37.1 million. Arto Tiitinen, President and CEO: “We are especially pleased by the fact that the order intake rose by 49% from the previous year. Our order books at the end of 2007 were valued the highest in our history. Our operating concept proved that it works. We grew faster than the industry in general. Our turnover exceeded €300 million, showing an increase of 30%. Our international operations made up over 70% of the turnover. Our cash flow improved with the development actions carried out during the year.”

“Our businesses developed as planned in 2007. We reached the targets set for our key market areas. In North America the market situation was challenging throughout the year; the market is estimated to recover during 2009. Last autumn we received the first major orders from South America. The development outlook in the area looks good. “The outlook for growth in timber products is good in Asia. Our company in Beihai, China, was opened in November after we had signed the first machine delivery agreements for the area.” “Our maintenance service business grew by 34% from the previous year. Such favourable development is attributable to our increased machine stock, new maintenance service products, growing number of maintenance service agreements and the expansion of our maintenance network.” “Ponsse’s outlook for 2008 is positive. The demand for timber products is increasing, which is attributable to a rise in the standard of living and to urbanisation. The area of fast-growing planted forests will increase in the near future. The rise in timber customs duties in Russia will increase the demand for domestic roundwood and accelerate investments taking place in Russia. In addition, the share of the cut-to-length method of total harvesting volumes will increase”.

The Prince of Wales (heir to the British throne) has urged the world to form a global partnership to act against the ticking “doomsday clock” of climate change in a major speech to the European Parliament in Brussels today. In the speech, which he delivered to 150 British MEPs and representatives from the European Parliament’s climate change and environment committees, as well as representatives of his own charities, he particularly focused on rainforests. he called for a “tripartite alliance” between public, private and non-governmental organisations (NGO) to tackle the crisis.

The Prince said: “For me, the crux of the problem is – and I only pray I will be proved wrong – that the doomsday clock of climate change is ticking ever faster towards midnight. We are simply not reacting quickly enough. We cannot be anything less than courageous and revolutionary in our approach to tackling climate change. If we are not, the result will be catastrophe for all of us, but with the poorest in our world hit hardest of all.” The Prince focused on the plight of the rainforests during his speech, describing them as “global utilities” that provide “essential public services to humanity on a vast scale”. His Royal Highness said: “Unbelievable as it might seem, we are destroying our planet’s air-conditioning system. But the loss of biodiversity is also terrifying. It has been compared to burning down a library of precious knowledge without first reading the books.” The Prince added that the private sector needed to be involved in the solution for saving the rainforests. To this end, he has set up The Prince’s Rainforests Project, which aims to work with the private sector, governments and environmental experts to find solutions to ensure the survival of the world’s rainforests, which are essential to combating climate change. Speaking about his project, The Prince said: “What I am hoping we can do is to find a way to energise the capital markets to develop instruments, whether market based or not, to transfer to those countries that actually want to do something about this problem, in the most effective way, the huge sums which are needed.” The Prince also told the audience that the north polar ice cap is melting so fast scientists predict that in seven years it will completely disappear. The Prince said to the packed chamber: “Determined and principled leadership has never been more needed. Surely this is just the moment in history for which the European Union was created.” “Climate change presents such a threat that, uniquely in history, it will surely require the effort of every nation and every person to find and implement a solution before it is too late. It is a task that calls for the biggest public, private and NGO partnership ever seen.”

The Prince’s Rainforests Project was set up in October 2007 by The Prince of Wales to find practical solutions to slow tropical deforestation and combat climate change. The destruction and degradation of the tropical rainforests is the second biggest contributor to carbon emissions worldwide after power generation. It is estimated that as much as 12% of total global greenhouse gas emissions result from deforestation, and both the Stern review and the Inter-Governmental Panel on Climate Change report believe tackling deforestation may be one of the quickest and most cost effective means of reducing emissions in the short term. The Prince’s Rainforests Project aims to help the world community recognise the true value of forests by identifying ways to value, and then pay for, the crucial “ecosystem services” rainforests provide. As His Royal Highness said in a speech on January 14 to the European Parliament in Brussels: “In the simplest terms, we have to make the rainforests worth more alive than dead.” With this aim in mind, the Project is engaging with rainforest nations, governments, businesses and non-governmental organisations to find the solutions to deforestation. The Project is backed by 13 major companies: Shell, Rio Tinto Zinc, McDonald’s, Morgan Stanley, Goldman Sachs, Sun Media, Sky, Deutsche Bank, Man Group, KPMG, Barclays Bank, Finsbury and the European Climate Exchange. The Project is also being advised by a group of experts, including: Lord Stern; Steve Howard, chief executive of the Climate Group; Kevin Conrad, the executive director of the Coalition of Rainforest Nations; Andrew Mitchell of the Global Canopy Programme; Kristalina Geogieva, vice president of the World Bank; Reijo Kempinnen, head of the European Commission Representation in the UK; and Barry Gardiner MP.

New wood availability forecasts for the Hawke’s Bay compiled by New Zealand’s Ministry of Agriculture and Forestry (MAF) will assist with future regional planning for the forest industry and provide infrastructure agencies with credible data for future planning, says John Vaney, Regional Team Leader with MAF Policy in Rotorua. The forecasts indicate the availability of radiata pine from the Hawke’s Bay will remain relatively static over the next decade, aside from short-term fluctuations based on market conditions.

The key implication of this forecast is that there are limited opportunities in the Hawke’s Bay to expand the harvest in the short term. “We expect there will be a focus on improving processing efficiencies with the aim of utilising more of the volume produced within domestic sawmilling facilities”, says Bob Pocknall, Chairman of the Hawke’s Bay Forestry Group. Beyond 2015, the forecasts indicate that an increase in wood availability is possible with the potential for the Hawke’s Bay regional harvest to increase from the current level of approximately 1.7 million cubic metres to around 3 million cubic metres per year after 2021. Most of this increase in wood availability is expected to be from the small-scale forest growers who established forests during the 1990s. In the later part of the forecast period (post 2034) the total harvest is projected to decline. The forecasts are based on no new planting. “The forecasts provide a clear signal that the transport infrastructure and harvesting capacity in the region will come under increasing pressure after 2015, and that some additional investment will be required before then. There will also be potential from that time for new wood processing investment or expansion of existing plants”, says Bob Pocknall. MAF is currently finalising a report on the Hawke’s Bay Forestry Industry, in association with the Hawke’s Bay Forestry Group and the major growers and processors in the region. This report will include the wood availability forecasts along with descriptions of the region’s forests, wood processing industries and infrastructure. The report, available in June, will describe the opportunities and constraints facing the forest industry in the region. This report is expected to be available in June. The wood availability forecasts are also available online at: http://www.maf.govt.nz/mafnet/publications/wood-availability/hawkes-bay/ There is a well-established forest growing industry in the Hawke’s Bay Region (Wairoa, Hastings and Central Hawke’s Bay Districts and Napier City). Radiata pine makes up nearly 98% (129,000 ha) of the forest area, Douglas-fir less than 1% (1,000 ha) and there are nearly 2000 ha of other exotic hardwood and softwood species in the Hawke’s Bay Region. There are three large growers in the region, and a number of smaller growers that are attracted by the good tree growing conditions, developed infrastructure and access to an export port. Currently the industry is affected by a tight domestic market for timber, high shipping costs for export logs and an exchange rate at higher than desirable levels. There is also strong demand for labour, meaning a shortage of people to work in a variety of forestry jobs.

US groups Jeffrey Specialty Equipment and Rader Companies have combined their domestic sales offices in order to serve the wood, pulp and paper and emerging biomass industries with more complete application solutions including size reduction equipment, pneumatics, material handling, screen and processing, and storage and reclaim solutions.

Doug Sublett, Manager of Sales and Marketing for Jeffrey and Rader: “With the acquisition of Rader by Jeffrey in September, 2007, two great names in industrial equipment have been brought together. “Our initial focus is to combine our sales teams to ensure that our customers are fully supported.” Sublett said both organisations served similar markets and were highly respected in the industry. Beginning immediately Rick Burns (Rader sales), Chris Close (Rader sales) and Mitch Hester (Jeffrey sales) will be responsible for both Rader and Jeffrey sales. By combining forces, Jeffrey and Rader are positioned to be the premier organisation for sizing and handling biomass, wood chips and renewable fuels, according to Jeffrey. The new company has more than 150 years of combined experience in the industrial equipment marketplace. Rader makes pneumatic conveying systems, screening equipment, engineered storage and reclaim systems and truck dumpers for processing bark and wood chips for the global pulp and paper and forest products industries. Jeffrey manufactures chip sizers, wood hogs, crushers and feeders in the same South Carolina facility. Besides the domestic offices, Rader also maintains offices in Montreal, Canada and Stockholm, Sweden.

Two years after the launch of the SP 751 LF Swedish harvester head developer SP has released the “new and improved” SP 761 LF.

The latest version has a stronger frame, more efficient hydraulics and improved component protection, an excellent head has become even better. “The SP 761 LF is a sturdy and powerful harvester head designed in accordance with the SP low friction (LF) principle for minimum friction and maximum production,.” The company stated. “With its extremely strong chassis, well protected components and a maximum pulling force of 49 kN the SP 761 LF is an excellent choice for the really coarse and tough cutting work. “The SP 761 LF achieves absolute top performance handling trees up to 50 cm bhd, but is also capable of efficiently handling larger stems thanks to the LF principle.”