All posts by Jo English

Seedling

Australian forest research breakthrough

Australian researchers have developed a world-leading genetic DNA testing system that can predict key commercial attributes of an adult eucalyptus tree from a single seedling leaf, and provide a strong return on investment to forest growers.

With research funding from Forest & Wood Products Australia (FWPA) and industry to validate the technology, this breakthrough could enable foresters to dramatically reduce the breeding cycle of Eucalyptus globulus (blue gum) and Eucalytpus nitens (shining gum) trees, significantly speeding up improvements to log quality.

Traditional breeding cycles are typically a decade or more, but modelling suggests the time can be halved with the new system and the genetic gains per year doubled or trebled, with a financial return of $8 for every $1 invested.

Unlike traditional crops, which have been bred over thousands of years and no longer resemble their wild forebears, eucalypts are genetically diverse, have long breeding cycles and are still close to their wild states – meaning the potential for gains are large.

The new system assesses the quality of a tree or seedling by DNA testing a 5mm hole punch of a leaf for thousands of genetic markers developed by CSIRO and correlated with commercial attributes. This project identified new genetic markers for wood density, and validated those, along with using previously-discovered markers for growth and pulp yield.

The researchers tested the DNA and commercial attributes of parent trees, and the DNA alone of their adult offspring. They used the DNA of the offspring to predict the parent’s commercial attributes – and the results proved to be highly accurate. Robert Southerton, the Managing Director of Gondwana Genomics, which was founded in 2014 and licensed the genetic markers from CSIRO, said researchers had not expected the high degree of accuracy of the genetic testing.

“Surprised is an understatement. We couldn’t believe it. We had to go back and check again and again, and the results held up,” he said. “In the past, we’d done similar research with a smaller group of genetic markers, and with slower testing techniques, and we’d had only mixed results.”

To make the breakthrough, the Gondwana Genomics research team developed a new method of cheaper, faster genetic DNA testing which enabled them to test over a thousand samples a day for less than $50 each instead of only 200 a day for over $100 each.

“If I’d known at the outset how many challenges we’d have to overcome to make this work, I would never have staked my house on setting up the business. The accuracies we have achieved would be considered very good in crops and it is phenomenal to get this in trees,” he said.

Trees, he explained, were exceptionally difficult to breed in the traditional manner for better genetics due to: a long cycle that means errors can creep in over time; difficulty separating out whether tree characteristics are genetic or environmental; and accidental pollination in planned cross-breeding.

Leveraging industry for ground-breaking trial
In total, the project screened over 11,000 seedlings from industry partners Forico, Australian Bluegum Plantations and HVP Plantations. Forico planted several hundred seedlings selected from almost 7000 screened – making for one of the first ever sizeable applications of marker assisted tree breeding in the world.

Research and Innovation Manager, Andrew Jacobs, said Forico had planted some seedlings identified via DNA as elite performers, as well as others at the middle and bottom end for comparison.

“At the moment, the DNA is predictive of quality, but the actual quality traits don’t start to really show until the tree is around the five-to-seven year mark,” he said. “In the meantime, we’ll continue to use this new technology in conjunction with our current methods. Down the track, when we’re more comfortable, I could see us moving further into this space.”

Forico decided to participate and invest in the trial because of its large and independent breeding program in nitens, he said. “We felt this technology could keep us at the forefront in terms of our breeding program given the success of the approach in other plants, and in animals.”

Maintaining genetic diversity, and other uses
In addition to identifying quality seedlings, the genetic profiling has a number of other potential applications including:

– Identifying seedlings that are genetically diverse for breeding – as inbred trees have greater pest and disease risk
– Accurately identifying a seedling’s parents
– Estimating inbreeding
– Creating a DNA fingerprint for a particular tree, eliminating the risk of mis-labelling
– Helping with ‘due diligence’ in valuing plantations
– Auditing existing tree improvement programs
– Breeding trees to combat specific risks, such as being disease-resistant.

Next steps
According to Robert Southerton, the next steps are demonstrating genetic differences within siblings in tree families, industry adoption of the new technology, exports and the potential to use their DNA testing method in other crops and, potentially, human research. Forico’s Andrew Jacobs also sees opportunities to identify DNA markers for other traits such as disease resistance, fertiliser use and resistance to stressors such as frost, heat and drought – and to further validate existing markers.

R&D Manager at FWPA, Chris Lafferty, congratulated the researchers and industry participants. “This is leading edge science, of great potential value to industry – and we’re proud to have played a part in terms both of funding and of facilitating this collaboration. It’s a prime example of the type of work we do at FWPA, investing industry levies and Commonwealth matching funds towards the generation of solutions to current and future challenges the industry will face.”

Photo: Credit: Andreachinn (Creative Commons)

Prue Younger

New CEO for FICA (Forest Industry Contractors Association) NZ | 23 Feb 2018

It’s being announced that Prue Younger has accepted the position as Chief Executive for FICA (Forest Industry Contractors Association). Prue will commence this role on April 1, 2018 in a part time capacity for the next 12 months, as she will continue as Eastland Wood Council CEO until a new appointment is made.

Prue has an extensive background in marketing, promotions & event management. She has several governance roles and chair positions in sport, health and community trusts. As director of Public Impressions Ltd, she has also been instrumental in the establishment of several forestry award campaigns around the country.

Eastland Wood Council (EWC) would like to thank her for her great efforts over the past 2 ½ years, she has really moved EWC forward and set the benchmark for what a wood council can achieve so it will be a great loss to the organisation. However, we congratulate her on her appointment with FICA and am sure they will benefit from her skill base and knowledge now in the forest industry.

KiwiRail

Forestry a success story for KiwiRail | 23 Feb 2018

KiwiRail is reaping the benefits of an innovative growth strategy for its NZ forestry business designed to make the best use of its wagon fleet. Its financial result released this week shows an 8% revenue increase in its overall forestry business in just the six months to December. That is being driven by strong growth in the volume of logs.

“We have been working closely with the industry to maximise our ability to meet the wall of wood now coming on stream, as the result of the large volume of trees planted in early 1990s,” says KiwiRail Chief Executive Peter Reidy.

“Our log wagon fleet has grown by 40% since 2011. We have some very clever thinkers on our team and have been able to do this in an innovative and cost-efficient way by converting wagons retired from our container fleet.”

“This is happening as fast as possible, and we are running trains up to seven days a week in all our key forestry routes. However current demand is so strong we could be doing more.”

“There are more than 130 additional log wagon conversions coming on stream over the next six months, which will allow us to meet further demand this year; and a further 200 wagon conversions are planned for the 2019 financial year”.

“In the Bay of Plenty alone KiwiRail runs 60 forestry trains each week to the Port of Tauranga, from Murupara-Kawerau and Kinleith. Those trains are taking the equivalent of up to 340 trucks a day off eastern Bay of Plenty roads”.

“KiwiRail is continuing to work with the industry to identify further opportunities to take more logs off the road and onto rail. We have already worked successfully with industry to develop log hubs in key locations on the network where local forests are not directly served by rail”.

“This sees significant volumes of logs now moving to Napier Port and CentrePort from log hubs in Masterton, Whanganui and Palmerston North, rather than travelling by road. Consolidating volumes and running to export ports by train is a cost-effective option for forestry owners/harvesters.”

“Rail also generates 66% fewer carbon emissions compared to heavy trucks for every tonne of freight moved”.

Source: Scoop

Shane Jones

NZ – Billion Trees land approaches 50,000 hectares | 23 Feb 2018

The NZ Government says it is close to securing 50,000 hectares of land for new forests under its Billion Trees programme. The programme, to see a billion trees planted over 10 years, is part of the coalition agreement between Labour and New Zealand First.

The government-owned forestry organisation Crown Forestry is writing to landowners offering to go into joint ventures to plant un-forested land with radiata pine. The Crown would pay for the cost of establishing the forests, and landowners would get the carbon credits.

Forestry minister Shane Jones has told Parliament that 12,500ha has already been secured, with negotiations under way over another 30,000ha. “The Crown is now engaging with Mâori landowners and other categories of landowners, and the size of the land package, reflective of that engagement, is now up to 30,000 hectares,” he said in response to questions from National Party forestry spokesman Nick Smith.

“When one adds the nigh-on 12,000 hectares that we have already secured, and in the event that the 30,000 is successful, I am but a small step away from 50,000 hectares.”

Smith told Jones that the Director-General of Conservation, Lou Sanson, had told Parliament’s environment select committee that his department had very little land available for planting trees, and asked Jones whether he agreed with conservation minister Eugenie Sage that only native trees should be planted on conservation land.

Jones said that native and exotic trees would be part of the Billion Trees programme. “The percentage and the mix of trees that might be grown on the DOC estate has yet to be settled,” he said.

Source: Carbon News 2018

480B-Mulcher

Tigercat 480B Mulcher

The 480B mulcher is built for the toughest terrain, soft soil conditions and the most demanding duty cycles. It is the ideal carrier for large scale clearing and right-of-way projects.
The key benefits are:

  • Powerful and efficient Tigercat FPT C13 Tier 4f engine
  • Efficient, high capacity cooling system with variable pitch fan and automatic reversing cycle
  • Large, dedicated attachment pump
  • Highly refined closed loop track drive system
  • Oscillating track system with heavy duty track frames and mounting system
  • Counter-rotate function (CRF) for ‘on a dime’ at the touch of a button
  • High-lift boom geometry for improved performance on sloped terrain
  • Ergonomic electronic joystick steering
  • Heavy duty steel engine enclosure, exhaust and precleaner guard; no need for a visibility impairing canopy
Chinese flag

Analysts on China’s imported wood future | 21 Feb 2018

Imports of logs, lumber and woodchips have been growing at such a rapid rate, and to such lofty heights, that it’s been close to unbelievable at times.

Between 2012 and 2017 (estimated), Chinese imports of logs (softwood and hardwood) have increased by 42 percent, hardwood chip imports have jumped 59 percent and lumber imports (again both hardwood and softwood) have soared 81 percent.

Over the past 15-20 years, the excessive and often very wasteful surge in construction activity in China was made possible by lax lending standards, including the rise of the “shadow banking” sector, corruption between banks and local authorities, a lack of concern for environmental impacts or maintaining land for agricultural production, and a rapidly growing mountain of debt. President Xi has been promoting policies to address these issues for several years, but RISI believes that the 19th National Congress sets the stage for him to make major reforms in the years ahead. This means that the out-of-control construction binge seen in China for the last decade is going to quickly come to an end.

RISI’s new forecast of Chinese timber demand projects a decline of about 18 percent in softwood log imports and 10 percent in hardwood log imports over the next decade, relative to estimated 2017 levels. Of course, it isn’t just changes in Chinese demand that will drive this decline, but also RISI’s expectations on what is happening in the supplying countries and competition from other markets, such as the decline in availability of tropical hardwood logs and an increase in demand for softwood log imports in India.

And demand in China is not driven only by construction activity. A significant share of logs and lumber are imported to make value-added products for export. And it has seemed like China’s exports of furniture, plywood, flooring, etc. have been doing nothing but increasing for more than a decade. But recently this picture has also changed. And the trend in exports hasn’t just slowed, it’s actually gone negative in a number of cases. Export values of plywood and flooring began shrinking in 2015, continued on their downward trend last year, when they were joined in retreat by wooden furniture and door and window exports.

Even China’s exports of paper and paperboard, which had been growing at a 19 percent CAGR from 2000-2015, have had zero growth over the past two years. Increasing labor rates in China, as well as various trade restrictions by importing countries, have largely been to blame, but the point is that the period of never-ending growth in forest products exports looks to be over.

Source: RISI.com

Brendan Slui

New leadership for Rayonier Matariki Forests | 21 Feb 2018

Brendan Slui has been appointed Managing Director of Rayonier Matariki Forests following the resignation of Paul Nicholls who is stepping aside after 25 years service.

Brendan has held a series of roles during his 18-year tenure with Rayonier Matariki Forests, joining as a Senior Forester and progressing to Resources Manager, Regional Manager and most recently, Director of Operations. Brendan also spent six months in the USA working with Rayonier’s operations there.

“I’m thrilled to be taking over the reins. It is an exciting time be leading Rayonier Matariki Forests and working towards the continuing success of the New Zealand operation.” “However, I’d like to take this opportunity to recognise the huge contribution that Paul has made to both the company and the industry. His ongoing commitment to improve our industry has been tireless and we wish him well for his future.” said Brendan.

H-3060

Precision Husky H-3060 Horizontal Grinder

H-3060’s innovations start with the large diameter infeed roll that is sensitive enough to permit grass clippings, brush, limbs, pallets, slabs, logs and stumps to be fed at variable speeds for continuous rather than batch feeding.

The H-3060 Horizontal Grinder Includes:

  • Caterpillar C-15, 565 HP [373kw] Diesel Engine
  • 30″ Diameter “Double-Cut” Hammermill
  • 60″ Wide Variable Speed Steel Infeed Belt
  • Dual Shear Protection for the Hammermill
  • Remote Control
  • Magnetic Head Pulley for Metal Seperation
  • Fold Down Infeed Tailgate for Increased Bed Length and Closes for “Hopper” Style Feeding.
  • Enclosed Engine Cover with Dual Access Doors for Ease of Maintenance.

Double- Cut Hammermill

Engineered with several cutting surfaces at varying depths which virtually elimates the frequent jamming characteristic of more conventional type grinders. Rotating downward, the double cut hammermill momentarily wedges the incoming material securely between the cutting heads and the shredder feet, which limits the depth of cut preventing wide items from lodging between the screen and the hammermill, providing a more efficient cut with a self-adjusting hydraulic clutch. In contrast, shredders using an upward rotating hammermill are reported to be significantly less efficient.

Chairman & CEO
Bob Smith (205) 640-2111 bobs@precisionhusky.com

President
Scott Smith (205) 640-2112 scotts@precisionhusky.com

Vice President / Engineering
Billy Daniels (205) 640-2159 billyd@precisionhusky.com

http://www.precisionhusky.com/contact_us.html

Kari Jordan

Metsä Group’s comparable operating result in 2017 was EUR 566 million | 21 Feb 2018

JANUARY–DECEMBER 2017 (1–12/2016)

  • Sales were EUR 5,040 million (4,658)
  • Operating result was EUR 581 million (442). Comparable operating result was EUR 566 million (439)
  • Result before tax was EUR 506 million (361). Comparable result before tax was EUR 491 million (357).
  • Comparable return on capital employed was 12.3 per cent (10.2). Comparable return on capital employed excluding investments related to the bioproduct mill was 15.3 per cent (11.6)
  • Cash flow from operations was EUR 905 million (504)

OCTOBER–DECEMBER 2017 (10–12/2016)

  • Sales were EUR 1,328 million (1,175)
  • Operating result was EUR 184 million (110). Comparable operating result was EUR 185 million (107)
  • Result before tax was EUR 161 million (85). Comparable result before tax was EUR 162 million (82)
  • Comparable return on capital employed was 14.9 per cent (9.8)
  • Cash flow from operations was EUR 294 million (206

EVENTS DURING THE FOURTH QUARTER OF 2017

  • In December, Metsä Group and Metsä Board raised their result guidance for the fourth quarter due to the stronger-than-expected pulp market.
  • The foreign currency-denominated market price of long-fibre pulp and the market price of short-fibre pulp increased by 7 per cent and 8 per cent, respectively, compared to the previous quarter.
  • Metsä Wood decided to construct a new Kerto® LVL line at its Punkaharju mill in Finland
  • Sales prices of paperboard rose, but deliveries were at a lower level than in the previous quarter, mainly due to the seasonal decline in December
  • Difficult weather conditions had an effect on Metsä Forest’s fourth quarter result
  • Metsä Group announced its intention to build a visitor centre at the Äänekoski mill site
  • Metsäverkko, an online service for Metsä Group’s owner-members, was recognised by an innovation award from European agricultural cooperatives
  • The President of Finland, Sauli Niinistö, inaugurated the Äänekoski bioproduct mill on 18 October 2017
  • Metsä Group’s future President and CEO, Ilkka Hämälä, was elected Chairman of the Finnish Forest Industries Federation

EVENTS AFTER THE PERIOD

  • Due to suspected information security breach, Metsä Group and Metsä Board announced preliminary information of their sales and comparable operating result and Metsä Board’s earnings per share for the fourth quarter of 2017 on 9 January 2018
  • The suspected information security breach has not had financial impacts

RESULT GUIDANCE FOR JANUARY–MARCH 2018

Metsä Group’s comparable operating result is in the first quarter of 2018 expected to be roughly at the same level as in the fourth quarter of 2017.

THE BOARD OF DIRECTORS’ PROPOSAL FOR THE DISTRIBUTION OF THE PROFIT

Metsäliitto Cooperative’s Board of Directors has decided to propose that, due to the good result in 2017, 7.0 (6.0 per cent in 2016) per cent interest be paid on the statutory capital invested by its members for 2017, on additional members’ capital A 6.5 per cent (5.5) and on additional members’ capital B 2.5 per cent (2.5). The Board of Directors has furthermore proposed that EUR 250 million of retained earnings be transferred to the reserve for invested unrestricted equity.

The Board’s proposal will be discussed in March by Metsäliitto Cooperative’s Supervisory Board, which will issue a statement on the matter to the Representative Council convening in May.

President and CEO Kari Jordan:
“Metsä Group’ profitability in 2017 was good. Our result compared to the previous year improved particularly due to an increase in the price of pulp and positive development in the paperboard business. Our growth phase achieved many important milestones in 2017.

The world’s first next-generation bioproduct mill started up at Äänekoski, Finland, in August 2017. We followed the schedule and budget exactly. The mill’s start-up phase has progressed even better than we expected.

Last summer, we laid the foundation stone of the plywood mill in Estonia, set to be completed in the summer of 2018, and started up a new Kerto® LVL line at Lohja and an extrusion coating line at Husum paperboard mill. Converting the old paper machine hall at Äänekoski into a birch veneer mill and the renewal of the baking paper machine at the Düren mill proceeded well. Late last year, we also made the decision to increase Kerto® LVL production at the Punkaharju mill. The new line at Punkaharju will start up during the first half of 2019.

The volume of wood purchased has grown according to our plans. In 2017, we delivered approximately 32 million cubic metres of wood. We set another record in forest owners’ customer satisfaction and made plenty of new forest asset management agreements. In 2017, more than a quarter of wood trade and an even higher proportion of orders for forest management were made through digital channels. The value of the wood trade conducted in Metsä Group’s digital Metsäverkko service over a period of roughly two years totals more than EUR 200 million.

The responsibility for Metsä Group’s profit transferred to Ilkka Hämälä at the beginning of 2018. I will retire in April 2018, when Hämälä will take over as the President and CEO of Metsä Group. I began my work in Metsä Group in 2005. The transformation we began at the time translated into exiting printing and writing paper fully and, over the past five years or so, increasing investments in selected business operations. The transformation process has been significant, even on a global scale, and has resulted in a clear improvement in profitability and a strong balance sheet. Thanks to our growth investments, annual demand for Finnish wood has increased by roughly six million cubic metres.

The current outlook for the global economy is good. Finland’s economy has also picked up. The forest industry’s role as the backbone of the Finnish economy remains strong.”

https://www.metsagroup.com/en/media/all-news/Pages/News.aspx?EncryptedId=348DA0FB6D09D822&Title=MetsaGroupscomparableoperatingresultin2017wasEUR566million

NEAR-TERM OUTLOOK

  • Wood demand will focus on felling sites to be harvested when the ground is unfrozen and, in terms of energy wood, on crown wood. Difficult weather conditions will have an effect on the wood supply in the entire Baltic Sea area. This will increase the mill prices of wood at the beginning of the year.
  • Demand for forest management services is expected to remain good.
  • The demand for wood products is expected to remain good, which is reflected in order book levels higher than last year in both Kerto® LVL products and plywood products. The UK market is marked by uncertainty due to the effects of Brexit.
  • Global demand for, and the global prices of, pulp have continued to rise in January 2018, and there are no signs of significant negative changes to the market situation in the near future.
  • Overall demand for sawn timber is expected to remain good in most markets.
  • Growth in the demand for high-quality consumer packaging paperboard made from fresh fibre is expected to continue in market areas important for Metsä Board.
  • Metsä Board’s paperboard deliveries in January–March are expected to grow from the previous quarter. The market prices of folding boxboard and white kraftliners in local currencies are expected to rise as a result of the announced price increases in 2017.
  • In the tissue and cooking paper markets, demand is expected to remain stable in all market areas. Demand for tissue paper is expected to increase particularly in eastern Central Europe, and demand for cooking papers is expected to grow in Asia.
  • The weakening of the US dollar against the euro, including the impact of hedges, will have a negative effect on Metsä Group’s operating result in at least the first half of the year. Production costs in 2018 are expected to rise from the previous year.