Australia Hardwood Market Research Report

Transcription

Australia Hardwood Market
Research Report
Prepared by
Dr Peter Volker
Forestry Tasmania
for
Chile Nitens P.I.T.
Australia Hardwood Market
Research Report
Prepared by
Dr Peter Volker
Forestry Tasmania
for
Chile Nitens P.I.T.
August 2009
Correspondence should be addressed to:
Dr Peter Volker
Forestry Tasmania
PO Box 207
Hobart TAS 7001
AUSTRALIA
Email: peter.volker@forestrytas.com.au
Tel: +61 3 6233 7444
All Rights Reserved
This report is for the exclusive use of the Chile Nitens PIT group members. No part of this publication may be reproduced or
transmitted in any form or by any means, electronic or mechanical, including, but not limited to, photocopying recording or
otherwise, nor may any part of this publication be distributed to any person not a full-time employee of a member of the Chile Nitens
PIT group without prior consent of the author. Chile Nitens PIT group members agree to take all reasonable measures to safeguard
this confidentiality.
Disclaimer
Although great care has been taken to ensure accuracy and completeness of this report, no legal responsibility can be accepted by
Forestry Tasmania for information expressed within.
Cover photo
E. nitens small sawlogs being delivered to FEA sawmill at Bell Bay to produce EcoAsh® lumber.
Forestry Tasmania report for Chile E. Nitens P.I.T. Group
Commercial-in-confidence
ii
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Table of contents
1
2
Introduction_____________________________________________________________ 1
1.1
Purpose of this Report ________________________________________________________ 1
1.2
Background of Chile hardwood forest and processing ______________________________ 1
Overview of the Australian macro–economy and Forest Industries __________ 3
2.1
Australia Macro-economy _____________________________________________________ 3
2.2
Australia's Forest Industries ___________________________________________________ 4
2.2.1
2.2.2
2.2.3
2.2.4
2.2.5
2.3
3
4
Economic and social contribution ____________________________________________________
Wood production and consumption___________________________________________________
Trade __________________________________________________________________________
Australia – Chile Free Trade Agreement_______________________________________________
Outlook ________________________________________________________________________
4
4
5
6
7
Australia Relevant Timber Industries – growing and processing _____________________ 8
Australia Hardwood Market _____________________________________________ 10
3.1
Demand and supply of hardwood products ______________________________________ 10
3.2
Forecast in the future years ___________________________________________________ 13
3.3
Product Sourcing ___________________________________________________________ 14
3.4
Role of plantation eucalypts___________________________________________________ 15
Issues Analyses and Market Opportunities _______________________________ 16
4.1
What are macro-economic variables in Australia economy in term of hardwood products?
16
4.2 What are the driving forces of the demand for the hardwood products in Australia
market?_________________________________________________________________________ 16
4.3
5
What is situation of opportunities in term of Chile hardwood products in Australia? ___ 16
Learning from previous experience in Australia, Chile and elsewhere ______ 18
5.1
Processing plantation eucalypts________________________________________________ 18
5.1.1
5.1.2
5.1.3
5.2
Silviculture of eucalypt plantations for high value timber __________________________ 22
5.2.1
5.2.2
5.2.3
6
Sawing________________________________________________________________________ 18
Veneer production _______________________________________________________________ 19
Drying ________________________________________________________________________ 20
Thinning and pruning ____________________________________________________________ 22
Tree breeding __________________________________________________________________ 22
Protection from pests and diseases __________________________________________________ 23
Conclusions and Recommendations _____________________________________ 24
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Australian Market Research
Peter Volker
1 Introduction
Dr Peter Volker (Field Services Manager) and Mr Sandy Chen (Export Manager) from
Forestry Tasmania were engaged by the Chile E. nitens PIT Project. A visit to Chile was
conducted from April 21 to May 1, 2009 to inspect E. nitens plantations, processing factories
and transport infrastructure. This has provided background information, which has led to
recommendations to develop the industry in Chile (see below).
This report provides an overview of the Australian forest industry with particular focus on
the eucalypt plantation industry in the context of management for high value products (ie
products other than pulpwood). This aspect is relevant to the participants in the Chile Nitens
PIT project. Comparisons are made with the Chile E. nitens plantation sector.
1.1 Purpose of this Report
This report is to be read in conjunction with the report on General Market Strategy (Chen
and Volker 2009)1 which outlines a proposal for future development of the nitens industry
to support silviculture, harvesting, processing and marketing of the E. nitens pruned and
thinned plantation resources in Chile.
1.2 Background of Chile hardwood forest and processing
We visited Chile in April 2009 to meet with members of the Chile Nitens PIT project. We
held discussions with senior managers at timber processing plants and inspected their
factories. We also inspected a number of plantations in Regions IX, X and XIV that had
been managed with thinning and pruning regimes to produce clear, defect-free timber.
Our observations included the following:
- Three major companies control 70% of the log supply
- These three companies have not shown any interest in processing E. nitens for veneer
or sawn timber, however should they decide to do so they have resources and will exert
a strong market pull.
- Prices for E. nitens in the pulpwood market are lower than E. globulus and while nitens
is preferred for some pulp grades it is not likely to gain attractive prices for smaller
private growers.
- E. nitens non-industrial private growers have made significant investment in thinning
and pruning with a total of about 8,000 ha treated in this way.
- Pruning has been done to a high standard and thinning has been carried out on time as
far as we could observe.
- E. nitens growth rates are exceptional and in some cases match the highest productivity
for eucalypt plantations anywhere in the world.
- There appears to be a substantial amount of the resource that is ready to utilise in high
value processing; finding markets for this is becoming urgent.
- There are very few threats to the E. nitens resource at the moment from pests and
diseases, droughts or fire. Protection efforts are very important. A single incursion of
a pest or disease could be disastrous.
- Labour costs are low which enables intensive manual operations such as pruning and
manual thinning to be carried out economically – this situation may change as the
economy grows.
1
Chen, S. and Volker, P.W. 2009. General Market Strategy. Report for Chile E. nitens PIT Group. Forestry
Tasmania. 16pp.
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Peter Volker
Chile needs regional development to sustain communities and economies outside the
major urban centres.
Road and transport infrastructure is good and forests are generally accessible. Winter
logging is a problem where there are no established roads, especially on private
property.
The railway system is not in operation at the moment.
Concepcion is the only major shipping port with sufficient infrastructure for container
handling. Average trucking distance from Region X and XIV is about 600km.
Chile has strong international trade.
Chile imports goods from China and there is opportunity to utilise shipping capacity
and containers for return shipping of forest products.
Corral port is used for bulk shipping of woodchips relying on barge transport from
various storage facilities on Rio Valdivia. There is no infrastructure for container
handling and road access is a problem.
There are a number of processors in from Puerto Montt to Concepcion who have been
utilising eucalypts, however primary production is generally with radiata pine.
Timber processing technologies used in Chile are comparable with major timber
processing infrastructure in developed economies.
We visited a number of factories producing highly value-added products such as doors,
furniture components, decorative panels, flooring with a range of native forest timbers
and locally grown plantation species, all these factories expressed a desire to use the
eucalypt resource.
Low labour costs make Chile highly competitive in commodity products.
Problems have been encountered where equipment, sawing patterns, peeling thickness
and drying techniques used for radiata pine have been applied to eucalypts.
Considerable technical difficulties with processing of eucalypts as veneer or sawn
timber has had a negative effect on confidence although there is a willingness to
overcome these problems.
Experiences with processing of E. nitens have been both positive and negative.
Appearance and uniform colour are viewed in a positive manner. Strength is also
better than radiata so there are applications which can use these characteristics.
Problems in drying sawn timber and veneer have contributed to negative perceptions
and low recovery rate of high value products.
Fast growth rate of Chile E. nitens has resulted in reduced basic density which can lead
to reduced surface hardness – an issue for flooring products and furniture.
Sawmills tended to produce backsawn timber from eucalypts and then encountered
difficulties with drying, making the wood only suitable for low grade use such as pallet
timber. This is a common problem with eucalypts and more care needs to be taken
with drying back sawn timber.
Where quarter (radial) sawing has been used, combined with low temperature kiln
drying, such as the Stück factory in Tome, products have been of high quality, similar
to high quality timber in Australia.
There has been a significant amount of work undertaken in Chile on the E. nitens resource and
how to add value to it over the past 5 years with INFO/CORFO Informes Técnicos Nos 164,165,
166, 172 and 175. These form the basis of moving forward with industrial processing of the
resource. There is a good core of people with technical knowledge and others with commercial
experience. The people within Chile E. nitens PIT are well placed to take advantage of these
resources to move the industry forward to create jobs and economic development for this region
of Chile.
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Peter Volker
2 Overview of the Australian macro–economy and Forest
Industries
2.1 Australia Macro-economy
The following paragraphs are taken from a recent IMF Article IV Consultation in
Australia2. It points to a strong economy, which is in a good position to cope with the
global financial crisis.
1.
2.
Box 1: Summary of Australian economic outlook
Following a prolonged expansion, reflecting sound macroeconomic policies and favourable terms of trade,
global events have slowed Australia’s economic growth well below trend. Declining commodity prices,
tightening credit conditions in global capital markets, and slowing world growth have reduced activity as well
as household and business confidence. However, the downturn has been milder than in most other advanced
countries. This is because of strong commodity exports, a flexible exchange rate, a healthy banking sector, and
a timely and significant macro policy response.
With growing evidence that the global slowdown would have a significant domestic impact, the Reserve Bank
of Australia’s (RBA) early and substantive reduction in the cash rate helped support domestic demand as the
external environment deteriorated. Further, the RBA’s measures to provide liquidity and the government’s
introduction of guarantees on deposits and wholesale funding enabled the financial system to continue to
provide credit. In addition, the enviable fiscal position, resulting from a string of surpluses that had eliminated
Commonwealth net debt, created fiscal space that allowed a sizable stimulus to be delivered.
The Outlook and Risks
3. The near-term growth outlook remains weak and highly uncertain. Real GDP is projected to decline by ½
percent in 2009, as lower commodity income, rising unemployment, and weak confidence reduce domestic
demand. The recovery will likely be slow. Growth is projected to rebound to about 1½ percent in 2010, led by
government spending, as households and businesses deleverage. Output will likely remain below potential for a
number of years, reducing core inflation. The current account is projected to remain in deficit, with net foreign
liabilities relative to GDP rising, as Australia will remain an attractive destination for foreign investment,
especially in the resource sector.
4.
In our view, risks to the outlook are balanced. On the downside, the world economy could take longer to
recover, with significant spillovers to Australia through commodity sector incomes, external demand, and
international capital markets. Domestically, a sharper than expected deterioration in banks’ asset quality,
possibly stemming from lower house prices, could constrain credit and deepen the downturn. A high impact tail
risk would be a decline of investor confidence in the banks or the sovereign. However, this is highly unlikely
given the low level of public debt and track record of sound macroeconomic policies. On the upside, a key risk
is stronger-than-expected demand from China. A further upside risk is that domestic and foreign economies
could be more responsive than expected to the considerable policy stimulus currently in place.
Australia’s economy has been relatively stable over the past 10 years with reasonably
strong economic growth, low interest rates and low inflation. Australia is reliant to a large
extent on its wealth of mineral resources, coal, primary industries (forests, fisheries and
agriculture) to provide export commodities and support its manufacturing industries.
Compared with Chile, Australia has high labour costs. Therefore resource extraction and
manufacturing industries must rely on a high degree of mechanisation to improve
productivity and reduce unit labour costs. The current Australian minimum wage is AUD
$14.31 per hour3.
2
3
See http://www.imf.org/external/np/ms/2009/062309a.htm
See http://www.fairpay.gov.au/fairpay/WageSettingDecisions/
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Peter Volker
Table 1: Australian main macroeconomic indicators
GDP Growth
Interest rates (%)
Inflationc
Consumer
a
b
(%)
(%)
Price Indexd
Short term
Long term
2000-01
2.0
5.8
5.8
6.0
132.2
2001-02
3.9
4.6
5.9
2.9
136.0
2002-03
3.2
4.8
5.4
3.1
140.2
2003-04
4.1
5.3
5.7
2.4
143.5
2004-05
2.8
5.5
5.4
2.4
147.0
2005-06
3.0
5.7
5.4
3.2
151.7
2006-07
3.2
6.3
5.8
2.9
156.1
2007-08
3.7
7.3
6.2
3.4
161.4
a
90 day bank bills, b10 year Treasury bonds,cPercentage change in the Consumer Price Index, d1989-90 =
100
In many respects Australia and Chile have similarities. Population size is similar 21
millions and 16 millions respectively. Both countries have diversified economies with
primary industries such as mining, fisheries, forestry, agriculture and manufacturing
industry. Chile has the advantage of lower labour costs but our impression is that
productivity is probably lower.
Chile and Australia have high degree of urbanisation of the population with increasing
wealth. Housing construction is a big driver for consumption of forest products in both
countries. Increased wealth brings higher demand for high quality products such as
furniture and appearance grade products for walls, joinery products and floors.
Both countries have large population to their north, which provide significant market
opportunities. Transport infrastructure is very important in both countries for efficient
movement of goods through the country and export from shipping ports.
2.2 Australia's Forest Industries
2.2.1 Economic and social contribution
Forest industries contribute significantly to the economic and social well being of rural
and regional Australia. These industries occur across a range of sectors including forest
growing and management, timber harvesting and haulage, timber saw milling, processing
and manufacturing, pulp and paper manufacturing and timber merchandising.
Forest industries are Australia's second largest manufacturing industry with an annual
turnover of AU$21.4 billion. The industry contributes around 0.6 per cent to Australia's
Gross Domestic Product and 6.7 per cent of manufacturing output.
Approximately 76,800 people are directly employed in Australia’s forest and wood
products industry, including 13,200 people in the forestry and logging sectors and 63,600
people in the wood manufacturing sectors. The yearly wages paid are AU$3.57 billion or
an average of AU$46,484 per person.
2.2.2 Wood production and consumption
In 2007-08, 28 million cubic metres of logs were harvested from Australia’s production
forests for a gross value of around $1.9 billion (Table 2). Around two-thirds of this log
harvest was from plantations with the reminder from native forests. Australia’s total log
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Peter Volker
harvest has increased by 35 per cent over the past ten years consisting of a 75 per cent
increase in logs harvested from plantations and a 10 per cent decrease in logs from native
forests over this period.
During 2007-08, Australia’s log harvest produced:
- 5.4 million m3 of sawnwood
- 1.8 million m3 of wood based panels;
- 1 million m3 of roundwood;
- 1.1 million tonnes of softwood woodchips;
- 5.0 million tonnes of eucalypt woodchips; and
- 3.3 million tonnes of paper and paperboard.
2.2.3 Trade
Australia has traditionally carried a deficit in the trade of its forest and wood products.
While total exports of wood products in 2007–08 were AU$2.4 billion, imports were $4.3
billion, representing a trade deficit of AU$1.9 billion (Table 2). Most of
this deficit is in paper products as they account for around half ($2.2 billion) of
Australia’s imports in 2007–08.
Sawn wood is also a significant import valued at AU$492 million in 2007–08 (Table 2).
Nearly half of all imported sawn wood comes from New Zealand mostly in the form of
softwood timber. Significant wood product imports also come from countries such as
China, Malaysia and Indonesia.
The main export from Australia is wood chips with 6.2 million tonnes exported during
2007–08 with a value of over AU$1 billion (Table 2). This represents 43% of Australia’s
wood product exports. Of Australia’s total woodchip exports in 2007-08, 87% was to
Japan.
In 2007–08, exports to Japan made up 39% of the value of Australia’s total wood product
exports, while exports to New Zealand and China accounted for 15% each of the total
value.
In 2007-08 imports from Chile were mainly in the form of dressed sawn wood amounting
to 34,200 m3 with a value of AU$20 million. This compares with imports from New
Zealand 297,100 m3, Canada 84,100 m3, Czech Republic 77,300 m3 and Germany 40,100
m3. All of these imports were either rough sawn or dressed softwood lumber.
Other major imports to Australia in 2007-08 were veneer 31,500 m3 (AU$1048 million),
plywood 237,000m3 (AU$645 million) , particle board 100,000 k m3 (AU$340 million),
hardboard 32,000m3 (AU$875 million) and MDF 68,000m3 (AU$33 million) (Table 2).
Figure 1: E. nitens plantation timber
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Peter Volker
Table 2: Overview of the Australian forest industry
Unit
1997-98
2002-03
2006-07
2007-08
Percentage change from:
10 years
5 years
last
ago
ago
year
Plantation area
Broadleaved
Coniferous
Total
'000 ha
'000 ha
‘000 ha
335
936
1272
676
988
1666
883
1010
1903
950
1014
1973
183%
8%
55%
40%
3%
18%
7.5%
0.4%
3.7%
Plantations established
Broadleaved
Coniferous
Total
'000 ha
'000 ha
'000 ha
54
12
66
31
11
42
76
11
87
66
6
72
23%
-46%
10%
110%
-42%
71%
-13.2%
-40.0%
-16.5%
Logs harvested
Native broadleaved
Plantation broadleaved
Coniferous
Total
’000 m3
’000 m3
’000 m3
’000 m3
9937
206
11 016
21158
10314
1594
13911
25819
8551
4052
14580
27182
8940
4607
14913
28461
-10%
2134%
35%
35%
-13%
189%
7%
10%
4.6%
13.7%
2.3%
4.7%
Gross value of log production
Broadleaved
Coniferous
Total
$m
$m
$m
516
586
1102
699
777
1476
843
869
1713
976
895
1872
89%
53%
70%
40%
15%
27%
15.8%
3.0%
9.3%
Volume of production
Sawnwood
Wood-based panels
Paper and paperboard
’000 m3
’000 m3
kt
3851
1554
2542
4668
2030
3061
5163
1743
3192
5371
1800
3281
39%
16%
29%
15%
-11%
7%
4.0%
3.3%
2.8%
Apparent consumption
Sawnwood
Wood-based panels
’000 m3
’000 m3
kt
4589
1530
3466
5378
1900
3784
5348 b
1800
4183
5806
1981
4338
27%
29%
25%
8%
4%
15%
8.6%
10.1%
3.7%
Employment
'000
78
83
83
77
-1%
-8%
-7.8%
Housing activity
Dwelling unit commencements
'000
148
170
152
159
7%
-7%
4.2%
784
423
227
144
1339
1697
3071
810
505
369
206
1466
2158
4086
611
418
430
276
1796
2270
4271
784
492
483
284
1847
2248
4412
0%
16%
112%
97%
38%
33%
44%
-3%
-2%
31%
38%
26%
4%
8%
28.4%
17.7%
12.4%
2.8%
2.8%
-1.0%
3.3%
310%
71%
-46%
-42%
6%
1%
13%
33%
18%
-18.6%
-17.1%
-11.5%
-13.5%
-1.8%
-2.3%
3.6%
12.8%
4.9%
Imports
Sawnwood
Wood-based panels
Total
’000 m3
$m
’000 m3
$m
kt
$m
$m
Exports
Sawnwood
’000 m3
38
82
416
338
778%
$m
30
70
145
120
302%
Wood-based panels
’000 m3
215
503
309
274
28%
$m
81
188
126
109
35%
kt
415
742
805
790
90%
$m
318
630
650
635
100%
Woodchips
kt
4315
5437
5952
6166
43%
$m
646
808
950
1072
66%
Total
$m
1348
2091
2355
2471
83%
(from: ABARE 2009, Australian forest and wood products statistics, September and December quarters 2008)
($ = Australian Dollars; $m = millions of dollars, kt = 1000 tonnes, ‘000m3 = 1000 cubic metres)
2.2.4 Australia – Chile Free Trade Agreement
Australia and Chile entered into a Free Trade Agreement, which came into force on 6
March 2009.
The A-C FTA covers trade in goods, services and investment and is truly liberalising
with commitments that go beyond both countries’ WTO commitments.
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Peter Volker
The A-C FTA delivers the most comprehensive outcome on goods in any such agreement
negotiated with another agricultural producing country since the Closer Economic
Relations Agreement with New Zealand.
Tariffs on all existing merchandise trade, in both directions, will be eliminated by 2015.
The vast majority of Australian goods exported into Chile – and Chilean goods exported
to Australia - will enter duty free from entry into force of the FTA on 6 March 2009.
Two-way trade between Australia and Chile is growing fast – up from A$574 million in
2006 to A$856 million in 2007. Australia is the 4th-largest foreign investor in Chile, with
around US$3 billion of direct investment.
2.2.5 Outlook
Australia is well placed to take advantage of the long-term expansion of wood and fibre
markets in the Asia-Pacific region. Australia's domestic market also provides a solid
investment platform for strategies to replace imports and develop export opportunities.
The high quality of Australia’s production forest resource and world-competitiveness of
supporting infrastructure, such as transport and manufacturing, make Australia’s forest
sector an attractive investment opportunity.
As such, there is a range of future investment planned in Australia’s forest industries
including investment in hardwood and softwood sawmills, pulp and paper mills, wood
product export facilities and engineered wood product mills.
The reliance on Japan for export of hardwood woodchips has caused considerable
problems during the past 12 months. Demand is down by 40% and stockpiles are
building up. Prices for export plantation blue gum have held steady at AUD$207.40 per
bone dry tonne, free on board. Native forest chips are at about $160/bdt FOB but price
varies with quality, based on pulp yield. Spot sales of chips at reduced prices have been
made into Chinese markets.
There is still strong demand for hardwood sawn-timber and other products in Australia.
Domestic production is supplemented by imports from near neighbours. There has been
some concern that at least 30% of imported hardwood products in Australia is the result
of illegal logging practices. Timber sourced from Indonesia, Malaysia and China is
thought to originate from illegal logging operations in Pacific Island countries (Papua
New Guinea, Solomon Islands), internal illegal activities in Indonesia and Malaysia and
operations in other south-east Asian nations. The Australian government is taking
actions to address this issue and there is also a strong consumer led push for chain of
custody certification.
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Peter Volker
2.3 Australia Relevant Timber Industries – growing and processing
The timber processing industry is undergoing significant change in Australia. As
discussed before softwood timber is replacing hardwood timber in the market. In addition
the native-forest hardwood sawmilling industry is undergoing significant change. Table 3
demonstrates the decline in number of small sawmills taking less than 15,000 m3 of log
intake per annum in both hardwoods and softwood sectors.
Table 3: Number of sawmills in Australia, by log intake
Log intake (m3/yr)
Less than 3 000
3 000 to less than 15 000
15 000 to less than 45 000
45 000 to less than 75 000
75 000 to less than 100 000
More than 100 000
Total
1996
-97
672
160
40
10
4
0
886
hardwood
1999
-00
602
180
59
12
4
5
862
2006
-07
337
101
55
7
1
1
502
1996
-97
146
61
26
1
7
15
256
softwood
1999 2006
-00
-07
151
13
68
41
27
21
8
8
3
3
22
22
279
108
1996
-97
818
221
66
11
11
15
1142
total
1999
-00
753
248
86
20
7
27
1141
2006
-07
350
142
76
15
4
23
610
There is an increasing shift to larger sawmills with high log input. Since these figures
were published there has been two softwood mills opened in Australia with log inputs
about 1 million m3 per annum. These new mills have a high level of technology with
such improvements as three-dimensional log scanning, improved cutting patterns to
maximize sawn recovery and minimum kerf. The technology has been taken up in the
softwood sector more than the hardwood sector.
Most of the hardwood sawing in Australia is from native forest eucalypts. Sawmills are
generally based on large circular break-down saws for large diameter logs in excess of
100cm LED. Further log breakdown is usually done by stationary bandsaws with logs
passed through in a reciprocating motion. Modern mills use high-tension, thin-kerf saws
and are fully automated (eg ITC Sawmill at Huon in Tasmania visited by Chile group in
2007).
The native hardwood resource is changing to a smaller diameter regrowth resource where
the average LED is around 60cm. In some ways this resource is easier for sawmills to
handle and is suitable for increased automation and higher throughput with high-speed
saws.
There are other outside influences on the availability of native forest eucalypt resource
including increasing ENGO pressure to stop native forest logging, increased area of
native forest taken out of production through declaration of national parks. There is also
evidence of declining international customer interest in woodchips from native forest
sources due to low pulp yield and more availability of high pulp yield plantation
resources throughout the world.
The move into plantation resources and away from native forests also means that large
timber beams and larger dimension boards are no longer being produced from native
forest resources. Engineered wood products such as LVL made from plantation
resources then replace these lumber products. As markets develop there is also increased
production of plywood, MDF, particleboard and other reconstituted wood products to
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Peter Volker
utilise residues from plantation operations. In the past two years a significant biofuel
industry has emerged to produce wood pellets from plantation residues.
Figure 2: Tasmanian oak flooring
Figure 4: Eucalypt veneer and plywood press
Figure 3: E. nitens boards from HewSaw
Figure 5: Tasmanian oak parquetry flooring
Figure 6: Rotary peeled eucalypt veneer
Figure 7: Recently thinned E. nitens plantation in
Tasmania (8 years old).
Figure 8: Demonstration of pruning on clearwood
production (E. nitens)
Figure 9: Cutting clearwood from a pruned log (E.
nitens)
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Peter Volker
3 Australia Hardwood Market
3.1 Demand and supply of hardwood products
The area of plantations in Australia increased from 1.63 million hectares in 2003 to 1.82
million hectares in 2006. Nearly all the increase was in hardwood (mostly pulpwood)
plantations, from 503,000 hectares in 2000 to 807,000 hectares in 2006.
4500
New South Wales
Victoria
Queensland
South Australia
Western Australia
Tasmania
4000
3500
Volume ('000 m3)
3000
2500
2000
1500
1000
500
0
2002-03
2003-04
2004-05
Year
2005-06
2006-07
2007-08
Figure 10: Australian softwood sawn timber production
Growth in sawn-timber markets has been filled entirely by softwood (Figure 10). The
demand for hardwood sawn-timber has remained relatively static for the past 20 years and
is showing signs of declining (Figure 11). In Australia most of the hardwood logs for sawmilling and veneer processing are sourced from native forests. Increased areas of native
forest in Australia are being removed from production as they are put into conservation
reserves. Existing production is being sourced from regrowth native forests where log
sizes are generally smaller than previous experience from older native forests.
The softwood timber has replaced hardwood in structural applications in the housing
market. Hardwood timber is now used mostly for floorboards, decorative panels and
furniture. Hardwood beams are also used as structural elements in buildings, but face
increased competition from laminated beams using softwood.
Australia and Chile have similar softwood processing industries, based predominantly on
radiata pine. These include sawn timber, plywood, MDF, particle board and engineered
wood product manufacturers. Chile has a greater area of softwood plantations spread over
a smaller geographical area than Australia. Much of Australian softwood timber use is for
domestic markets and imported timber also comes from New Zealand.
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Peter Volker
1400
1300
New South Wales
Victoria
Queensland
South Australia
Western Australia
2005-06
2006-07
Tasmania
1200
1100
Volume ('000 m3)
1000
900
800
700
600
500
400
300
200
100
0
2002-03
2003-04
2004-05
2007-08
Year
Figure 11: Australian hardwood sawn timber production
In Australia there is no substantial use of plantation eucalypts for sawmilling. Forestry
Tasmania is the only enterprise that has established substantial area of thinned and pruned
plantations. The estate size of these plantations aimed at high value timber products is
approximately 20,000ha with most of the estate planted since 1993. From about 2020
onwards it is expected that this estate will yield 150,000 m3 per year of pruned logs, which
meet sawlog specifications.
There is only one company producing sawn timber from plantation eucalypts. Forest
Enterprises Australia (FEA) produces EcoAsh (Figure 12) which is aimed at the house
construction market (see http://www.fealtd.com/ecoash/index.php). EcoAsh is produced
from E. nitens plantations
Box 2: Forest Enterprises Australia eucalypt sawmill
The new FEA sawmill in Bell Bay, Tasmania has potential capacity of 1,000,000 tonnes of timber a year. It
is amongst the few sawmills in Australia that is capable of processing both hardwood and softwood and, of
these, it is the only one that is commercially processing plantation grown hardwood.
Logs up to 6.2 metres long by 750 millimetres in diameter first enter a high-speed 150 metre per minute
Nicholson A8 de-barker which is installed with the green mill to eliminate most double handling of logs.
The full scan and set greenmilling line was supplied by Optimil of Canada.
It scans, rotates and angles the logs and a computerised chipper gives each log two flat faces. The line also
incorporates a four-band breakdown saw, an edger and a 'cut on the curve' profiling and ripping saw. This
high-tech facility optimises the number of boards which can be cut from each log, without a requirement for
'batching' logs of similar diameter.
Ultimately, the result is much higher sawn timber yields than traditional mills, with FEA aiming to achieve
over 56% useable sawn timber.
The remaining timber after sawing becomes woodfibre for export by SmartFibre.
The Bell Bay Sawmill also includes three high-temperature 140 cubic metre Windsor kilns, which can dry
softwood in less than 24 hours and a low temperature Windsor kiln for hardwood. Heat for the kilns is
supplied by the complex's own 20 megawatt steam boiler fuelled by sawdust and planer residue. This
provides 70% of the mill's operating energy requirements.
(Source: http://www.fealtd.com/feat/index.php)
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Peter Volker
The single pass chipping and sawing process described above may have benefits for
relieving growth stress normally encountered with sawing of young, fast-grown eucalypts.
The drying process for eucalypts is also different to that required for radiata pine.
One of the advantages of EcoAsh over softwood is better nail holding capacity, which is an
advantage for builders during construction. However, there are issues with drying young,
fast grown eucalypts. The market and production is small so it will take some time to get
market acceptance. The price is relatively cheap (Table 4) but this is possibly due to
attempts to gain market confidence by offering a lower price than competing softwood
products.
In Australia the common house construction method is a timber frame, clad with
plasterboard on the inside and bricks, concrete or timber on the outside. Up until the 1980s
the most common framing material was air-dried eucalypt timber. This has been replaced
by kiln-dried softwood timber over the past 30 years. This explains the growth in softwood
lumber sales and the decline in hardwood production. In recent years steel framing has
entered the market.
Retail prices for hardwood products are relatively low (Table 4), which reflects strong
competition. In the flooring market there is strong competition from laminated flooring
with timber veneer, plastic and paper over veneer finishes, these are laid on MDF,
hardboard or plywood bases. In structural timber there is competition from softwood and
LVL. Hardwood timber is expensive to produce due to low recovery rates in sawmills (30
to 35%), long drying times (one year air dried +17 weeks kiln dried) and quality degrade
during drying.
Sawmills are adding value by prefabrication of roof trusses, floor trusses and wall-frames.
The advantage of hardwood over softwood is that smaller dimension timber can be used
for the same application and hardwood is suitable for outside use.
Figure 12: EcoAsh® timber from plantation grown E. nitens
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Peter Volker
Table 4: Retail prices (per lineal metre) of common timber grades in Australia
Product
Flooring
(dressed,
tongue and groove)
Structural
Source
Tasmanian Oak
Flooded gum (standard)
(E. grandis)
Flooded gum (select)
Spotted gum
(Corymbia maculata)
Tasmanian oak
(E. regnans, obliqua,
delegatensis)
EcoAsh (4.8 m length)
Radiata pine
LVL (softwood)
Dimension
85 x 19
130 x 19
80 x 19
130 x 19
80 x 19
130 x 19
80 x 19
130 x 19
70 x 35
90 x 35
115 x 35
190 x 35
110 x 45
120 x 45
140 x 45
190 x 45
240 x 45
90 x 35
90 x 35
240 x 45
Price (AUD)
$5.12
$7.72
$4.99
$9.35
$5.83
$10.54
$6.29
$9.35
$3.49
$4.99
$7.19
$12.99
$7.89
$9.99
$11.99
$16.99
$21.99
$2.99
$3.70
$24.99
3.2 Forecast in the future years
Softwood plantations produce about two-thirds of Australia's log supply; that proportion
has been increasing steadily for several years because native forest hardwood supply has
declined, while softwood plantation supply has increased. Based on current plantings:
• softwood sawlog and pulpwood supply is expected to plateau by 2010
• hardwood pulpwood supply will increase substantially by 2010, providing
increased opportunities for exports and paper manufacture
• the supply of hardwood sawlogs from plantations is considerably lower than the
supply from native forests and, while increasing, is expected to remain
considerably lower for many years
Figure 13 : Forecast supply of logs in Australia
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Peter Volker
The projected pulpwood supply from eucalypt plantations in Australia could be as high as
15 million green tonnes per year in the period 2015-19, whereas sawlog supplies from
eucalypt plantations will only reach about 258,000 m3 per year at the same time (Figure
13). The increased quantity of pulpwood from eucalypt plantations has the potential for a
strong negative impact on prices through a significant oversupply.
There is interest in expanding the area of eucalypt plantations managed for sawn timber
and veneer with thinning and pruning regimes. However, it will be difficult as softwood
sawn timber has gained significant market share and there is a lack of confidence in the
hardwood sawmilling sector that plantation timber will be of suitable quality to replace
existing sawn timber sourced from native forests. Any change in log supply would
require substantial restructure of the hardwood sawmilling sector.
3.3 Product Sourcing
Forestry Tasmania has pioneered the production of rotary peeled veneers from eucalypts
aimed at container floor and house flooring markets in China and Japan respectively. The
standard of logs required for producing this type of veneer is not too high, with logs
diverted from the pulp stream. Plantation grown logs would be ideal with pruned logs able
to produce face grade veneers and unpruned logs suitable for core veneer.
At the moment there are two rotary peeled veneer factories operating in Tasmania with a
total log intake per factory of 150,000m3 per year with veneer billet recovery of 120,000
m3 with veneer recovery of about 80%.
Most of the logs for these rotary peeler operations are sourced from regrowth native
forests. These forests are in the order of 100 to 300 years age and are very slow grown.
Thinnings are taken from forests at about 30 years age. They are of mixed species
including E. regnans, delegatensis, obliqua and E. globulus. The logs that are used are
taken from the supply of logs, which were destined for the woodchip export market.
Therefore the rotary peeled veneer market has increased the value of these resources.
Sawn timber in Australia is sourced from a number of eucalypt species depending on
location. In Tasmania and Victoria the main sources of native forest timber are E.
regnans, delegatensis and obliqua which are all sold as lumber under the generic name of
Australian Oak. In NSW the majority of timber sold is Corymbia maculata (Spotted gum),
E. nitens (Shining gum) and E. grandis (Flooded gum). In Western Australia the main
species are E. diversicolor (Karri) and C. marginata (Jarrah). In Tasmania E. globulus
(Tasmanian blue gum) is preferred for high strength structural or engineering uses such as
large beams, bridges and decking, put in place in a green state. Once it is dry it is very
hard and difficult to work with.
The majority of plantations in southern Australia are E. globulus aimed at the pulp market.
These stands have no thinning or pruning and many of them are committed to be harvested
at age 10 years. In Tasmania and Victoria E. nitens has been planted mostly for pulpwood
but as stated before there is a small area of thinned and pruned plantations aimed at sawn
timber and veneer. Not many of these stands have direct sawlog regimes, most are
managed on commercial thinning regimes which produce pulpwood or small sawlogs from
the thinned trees.
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Peter Volker
Unless there is a dramatic change in forest policy in Australia, the majority of eucalypt
sawn-timber will continue to come from native forest sources. The characteristic of this
resource is changing as the old-growth and older regrowth stands are being replaced by
regrowth stands with smaller trees. This is also leading to a change in the industry with
more modern, high throughput multi-saw technology being adopted in sawmills.
3.4 Role of plantation eucalypts
Plantation eucalypts will continue to be a minor source of hardwood sawlogs in Australia
for some years. In Tasmania, the first substantial volumes of pruned sawlogs will be
harvested from about 2020 onwards.
There is increased interest in the private sector in growing eucalypts on sawlog regimes.
The main areas of activity at present are in Tasmania, with E. nitens and northern NSW
and Queensland with E. dunnii, E. pilularis and Corymbia maculata among a number of
other species. Plantations of African mahogany (Khaya senegalensis) and Teak (Tectona
grandis) are also being established in tropical Australia on sawlog regimes. Timber from
these is expected to appear on the market in the 2020s.
Figure 14: Eucalypt seedling nursery.
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Peter Volker
4 Issues Analyses and Market Opportunities
4.1 What are macro-economic variables in Australia economy in term
of hardwood products?
The main driver of timber consumption in Australia is domestic housing construction.
This is measured in terms of new housing starts and renovation or extension of existing
buildings. Household spending capacity is also a strong driver of demand for high quality
furniture, doors, flooring and appearance grade products.
4.2 What are the driving forces of the demand for the hardwood
products in Australia market?
Materials used in domestic house construction are driven by a combination of fashion,
industry standards, performance and price. Australians have used eucalypt timber for 200
years in domestic house construction, industrial buildings and engineering structures.
There has been gradual replacement over the past 20 years with softwood sawn timber in
housing and cheaper furniture. Engineered wood products (LVL, structural plywood) are
replacing solid eucalypt timber in engineering applications and reconstituted wood
products (MDF, particle board, hardboard) are gaining increasing market share in utility
applications. Steel frames for houses are also gaining market share, especially in regions
where termite damage to timber poses a high risk.
In recent years there are also environmental and regulation disincentives emerging for use
of traditional eucalypt hardwood products. For example in Victoria, a new green energy
rating for new house construction places an energy penalty on the traditional timber
“floating floor” method of construction (ie timber floorboards placed on floor joists) in
favour of solid concrete slab construction.
4.3 What is situation of opportunities in term of Chile hardwood
products in Australia?
Chile hardwood products in Australia face competition from the existing products already
available in Australia. The biggest concern is the established prices for products available
in Australia from domestic timber supplies or imported timber, especially from south-east
Asia.
There is market acceptance of eucalypt timber for a range of uses. Plantation grown
timber, especially from Certified (FSC or PEFC) forests, is accepted although there is no
clear market preference as yet. Consumption is determined on performance and price.
Marketing of Chile hardwood products would require considerable effort to differentiate
the produce from other products available. The positive factor is that Chilean hardwood is
plantation grown and it is from eucalypts, which Australians are familiar with. It will have
the same characteristics as locally grown plantation timber and if market acceptance is
strong, could add to availability of limited local production. The existence of a free-trade
agreement between Chile and Australia is an advantage.
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Peter Volker
Disadvantage is transport distance and cost and possible quarantine measures required.
Lyptus imports from Brazil were stopped for this reason. Australia is a relatively small
market with established supplies of domestic eucalypt timber which is facing increasing
competition from imported tropical hardwoods, domestically produced softwood,
engineered and reconstituted wood products.
In terms of Australian markets it would be better to produce value-added appearance grade
products such as furniture, doors, flooring, panels and joinery products. There is strong
competition in Australia for products from many domestic and imported sources.
The question for Chilean timber producers should be – is it worth the effort? Chile
producers need to consider if their resources are better spent in establishing other markets
including domestic, Latin American and North American markets.
Chile E. nitens growers who have invested in pruning and thinning have a unique resource.
Manufacturers in resource deficient countries like China would be interested in sourcing
logs, but it would be better for Chile to do as much processing and value-adding on-shore
as possible.
Figure 15: Nico Brack and Peter Volker with pruned E. nitens at Fundo El Trebol.
17
Peter Volker
5 Learning from previous experience in Australia, Chile and
elsewhere
5.1 Processing plantation eucalypts
Innes et al. (2007)4 studied the economics of processing plantation grown eucalypts using
existing sawmill technology in Australia that had been designed for native forest resources.
Washusen and Innes (2008)5 provides a more comprehensive discussion of processing
plantation grown eucalypts. Their major findings are summarised in the following
discussion.
5.1.1 Sawing
The major constraint to processing plantation-grown eucalypts appears to be growth
stresses. These can result in poor sawing accuracy, board distortion and end-splitting (de
Fégely 2004)6.
Single-saw systems commonly used in older mills in Australia and observed in older
mills in Chile can be used effectively applying either back-sawing or quarter-sawing
strategies.
- As log length increases, sawing performance falls away as the bending of logs
and flitches during sawing increases. This phenomenon is common for native
forests as well as plantation grown material.
- Sawing accuracy is difficult to control.
- Saw kerfs can be quite large.
- Sawing strategies have been designed to allow for the lack of sawing accuracy
and estimated shrinkage of boards during drying. In quarter-sawing the thickness
shrinkage can be high (tangential shrinkage is usually higher than radial
shrinkage) the target size will be 31 mm to produce a dried board of 25 mm.
- In the worst case scenario where: (i) a quarter-sawing strategy is applied;(ii)
large-diameter circular saws are used for log break-down and re-sawing; (iii) no
line-bar is applied; and (iv) the target green thickness is 31 mm; recovery can be
poor and performance deteriorates as log diameter declines. Consequently mills
prefer logs over about 40 cm mid diameter.
- Back-sawing can increase yields (see work of Juan Carlos Valencia).
- The reciprocating action (repeated back and forward movement of logs) is
inefficient, especially for short-length, small-diameter (<60cm), plantationgrown logs.
Multi-saw technology combined with appropriate log rotation produces cutting patterns
that release growth stresses far more symmetrically around the log than is possible with
single saws.
- These systems increase volume throughput, improve sawing accuracy and with
twin-saws reduce saw kerf.
4
Innes, T., Greaves, B., Washusen, R. and Nolan, G. 2008. Determining the economics of processing plantation
eucalypts for solid timber products. FWPA Report PN04.3007. 80pp. (Available from www.fwpa.com.au).
5
Washusen, R. and Innes, T. 2008. Processing plantation eucalypts for high-value timber. In: Plantation Eucalypts
for High-Value Timber: Enhancing investment through research and development. (Eds. A.G. Brown & C.L.
Beadle) RIRDC Publication No 08/113. 92-109. (https://rirdc.infoservices.com.au/items/08-113)
6
De Fégely, R. 2004. Sawing Regrowth and Plantation Hardwoods with Particular Reference to Plantation
Hardwoods. Part B Survey Results. FWPRDC Report PN02.1308. FWPRDC. 19pp (Available from
www.fwpa.com.au).
18
-
-
Peter Volker
Systems have relatively high throughput for their cost.
Sawing accuracy is improved especially with back-sawing techniques.
A limitation is strict log diameter requirements, which can be maximum 45cm
sed. Could be overcome by purchasing equipment suitable for the resource
supply.
Programming of log turning is critical to avoid degrade from splitting due to
growth stresses especially in smaller diameter logs.
Linear multi-saw systems with chipper profilers are usually associated with softwood
mills where longitudinal growth stresses are not a constraint to sawmilling.
- In Australia, trials with HewSaw 200 and 250 mills have given good results.
- These systems apply chippers to remove wood from around the log to produce
a profiled cant simultaneously with or just ahead of small diameter circular
saws (Figure 16).
Figure 16: HewSaw chipping, sawing and profiling process
-
-
-
The HewSaw R200 and R250 have log-diameter ranges of 14-25 cm and 1434 cm respectively. Total log volume input is upwards of 120 000 m3 per
year in a single shift.
In E. nitens the most important characteristic related to growth stress in these
systems is bow in boards near the log periphery. This could be eliminated
during drying.
These systems can produce longer boards as product value is related to board
length.
FEA has used an Optimil system to produce EcoAsh® from larger diameter logs of pine
and E. nitens.
5.1.2 Veneer production
Rotary peeling of eucalypts has been proven to be effective by Forestry Tasmania. There
are specific technical issues with rotary peeling which can be the difference between
success or failure. Trials in softwood peeling mills are useful to determine the process
but eucalypts are harder and knife angle needs to be adjusted to cater for this. In addition
veneer thickness is very important to the success of follow-up drying processes and
eucalypt veneers need to be thinner and cater for shrinkage during drying.
19
Peter Volker
The E. nitens pruned log resource is ideally suited to produce face-grade veneer, which
has much higher value. Unpruned logs can be used for internal veneers and plywood
backing sheets.
Incorporating eucalypts into plywood products increases strength and durability. Eagon
Plywood informed us that concrete form work plywood made from pine only has five
repeat uses, whereas with eucalypt they can get 25 repeat uses.
Forestry Tasmania has developed eucalypt rotary peeled veneer for the shipping
container floor market as well as domestic house floor market in Japan. E. nitens could
be important for this market due to its light and uniform colour.
5.1.3 Drying
Drying degrade in plantation grown eucalypts is similar to that experienced with native
forest grown timber.
Degrade is value limiting for appearance grade timber but not for structural grades. Thus
control of drying degrade is much more important when processing high-value pruned
logs for appearance products than when converting unpruned logs to produce structural
or pallet-grade material.
In E. nitens the most common form of drying degrade is surface and internal-checking
(Figure 17). Forestry Tasmania is examining the feasibility of breeding to reduce or
eliminate this problem.
Figure 17: E. nitens floorboard showing internal checking
Drying regimes for eucalypt timber require a high degree of control of temperature and
humidity, but can be done with equipment with minimal capital outlay.7,8, such as solar kiln
technology9 (
Figure 18).
7
Nolan, G and Innes, TC and Redman, A and McGavin, R, (2003) Australian Hardwood Drying Best Practice
Manual Part 1, University of Tasmania, Launceston, pp. 219 (available from www.fwpa.com.au in pdf)
8
Nolan, G and Innes, TC and Redman, A and McGavin, R,(2003) Australian Hardwood Drying Best Practice
Manual Part 2, University of Tasmania, Launceston, pp. 312 (available from www.fwpa.com.au in pdf)
9
http://www.solarkilns.com/home/index.htm
20
Peter Volker
Figure 18: An example of a solar kiln for drying eucalypts
21
Peter Volker
5.2 Silviculture of eucalypt plantations for high value timber
5.2.1 Thinning and pruning
These topics have been well-researched and are reported in Valencia and Cabrera
(2008)10. The main issue is to determine how much of the thinned and pruned resource is
available and over what time period it can be supplied.
Thinning and pruning requires significant investment in the early stage of the plantations.
While labour costs in Chile are relatively low this is a relatively cheap operation.
However, it is important to consider the impact of increasing labour costs, especially in
thinning operations and move towards mechanical thinning operations using fellerbunchers and forwarders in future.
There should also be consideration of direct sawlog regimes if the market for pulpwood
or other residues is not profitable.
5.2.2 Tree breeding
The implementation of a tree-breeding program needs careful consideration. The major
companies in Chile have their own internal breeding programs. At the moment they are
focussed on pulpwood production. Therefore their priority is on pulp yield and quality
characteristics associated with the customers for their pulp. The members of the E. nitens
PIT need to consider if there is value in running their own breeding and seed production
program or whether the output of the major company programs will provide adequate
qualities for their requirements.
The focus on high-value, solid-wood products such as sawn timber or veneer may require
a different focus in breeding. First, it must be determined which traits are most important
to increase value of the resource. Probably the most important trait to increase the
suitability of E. nitens for these uses is an increase in strength and hardness, which is
probably related to basic density. This needs to be studied.
The approach to breeding E. nitens in Australia is reviewed in Hamilton et al. (2008)11.
Forestry Tasmania has adopted a breeding objective of maximising pulpwood production
per hectare whilst maintaining or enhancing recovery of logs for solid-wood products
(Kube and Raymond 2001)12. FT has now incorporated an objective to reduce checking
in solid timber as an important trait.
Tree breeding programs require long-term commitment of funds. They can generate
huge amounts of data, which is complex to manage and analyse. In many parts of the
world, breeding co-operatives have been formed to manage these programs. In Australia
10
Valencia B., J.C. and Cabrera P., J.A. 2008.Eucalyptus nitens en Chile: desarrollando silvicultura de alto valor.
Informe Técnico 175. INFOR, CORFO. 108pp.
11
Hamilton, M., Joyce, K., Williams, D., Dutkowski, G. and Potts, B. 2008. Achievements in forest tree
improvement in Australia and New Zealand. 9. Genetic improvement of Eucalyptus nitens in Australia. Australian
Forestry 71, 82-93.
12
Kube, P.D. and Raymond, C.A. 2001. Genetic parameters for Eucalyptus nitens solid wood traits and
relationships with pulpwood traits. In: IUFRO Symposium on Developing the Eucalypt for the Future. CD-ROM.
INFOR, Valdivia.
22
Peter Volker
the Southern Tree Breeding Association Incorporated is an industry co-operative which
runs a radiata pine and Eucalyptus globulus breeding programs.
Figure 19: Collecting seed from E. nitens at
Forestry Tasmania Oigles Rd Seed Orchard
in Tasmania (Dec 2008)
Figure 20: Chile E. nitens delegation visit
Forestry Tasmania Oigles Rd E. nitens
Seed Orchard (2007)
STBA has provided services, through a subsidiary company, PlantPlan Genetics Pty Ltd,
to E. nitens breeders to assist with analysis of 20 years of data from many tens of trials
belonging to a number of companies. In this analysis the companies all contributed their
data, but could only see the results for their own material. The pooled data, from across
Australia’s main E. nitens breeders gave much more power to the analysis. Pedigrees of
all material were important to the analysis. In most cases there were good records of the
original seed collections from the native forest sources. It is likely that seed exported to
Chile is from the same seed collections.
It would be possible to incorporate any suitable data that is available from Chile based
trials, provided that pedigree information is available. This would allow a comparison of
performance across the two countries and could also provide genetic linkage to predict
performance of material currently not planted in Chile.
In the short term growers who are interested in solid-wood products and producing pulp
should consider purchasing advanced generation seed from Australia.
5.2.3 Protection from pests and diseases
There is significant risk to the Chile Eucalyptus nitens resource from invasion by exotic
pests or disease. The exotic nature of the species with lack of natural predators for any
introduced insect pests makes the current plantations vulnerable. A feature of the Chile
E. nitens is there is very little defoliation from any pests or diseases. This contrasts with
plantations in Tasmania where annual defoliation by Chrysoptharta bimaculata can result
in loss of about 50% of the crown foliage. In this case up to 97% of the potential
defoliator population is controlled by natural predators, before severe defoliation occurs.
The example of New Zealand E. nitens is a classic case. In the late 1970s E.nitens grew
very well and plantation programs commenced. The introduction of a Paropsis beetle
soon spread rapidly and most trees were killed as soon as they reached adult foliage.
There was a lot of work done on biological control and it wasn’t until the early 1990s that
there was sufficient confidence that the problem had been overcome to recommence
23
Peter Volker
widespread plantations of E. nitens. However, recent introductions of other eucalypt
pests have been a cause for concern in New Zealand.
Therefore it is very important that forest health is constantly monitored. It is important to
set up a system of checking exotic planting of eucalypts especially near shipping ports,
airports and storage facilities for containers. This is effective if it can be done in
collaboration with quarantine authorities, managers of parks and gardens and experienced
forest entomologists and pathologists. If insect or pest incursions are found in these areas
they should be addressed immediately. Once such incursions are detected in large
plantation areas it may be too late to act.
6 Conclusions and Recommendations
6.1
6.2
Conclusions
•
Chile E. nitens PIT growers have a unique and valuable resource that is ready for
market in the form of a large quantity of pruned logs.
•
There are processors within the group who could take advantage of this resource but
they need to overcome some technical issues with processing and markets are not
developed.
•
In terms of processing facilities for timber, Chile and Australia are similar in the
softwood sector. Chile has much greater internal pulp processing capacity and does
not rely on export woodchips as does Australia.
•
In terms of market for timber products, Australia is well served from domestic and
international suppliers. Most of the trade deficit in timber products is due to imports of
pulp and paper products.
•
Plantation eucalypt products from Chile would be viewed favourably especially if there
was a certification stamp (ie FSC or PEFC).
•
There is not much experience with processing or utilising plantation eucalypt timber in
Australia. Until now the only commercial experience is by FEA with their EcoAsh®
product.
•
There were sales of Brazilian sourced eucalypt timber marketed as Lyptus, but it has
not made a huge impression on Australian market. The importation was stopped due to
quarantine issues.
•
The Australian market for timber products is highly competitive, and due to local
supply, prices are not high.
•
There is strong competition from imported hardwood products coming from SE Asia.
Recommendations
•
In the short term Chile E. nitens PIT members should focus on a production system
that:
a) is achievable, utilises the positive characteristics of the existing E. nitens resources,
b) learns from experience of other processors of plantation eucalypt logs (eg Lyptus
from Brazil, EcoAsh from Australia) including those producing veneer products,
c) is sustainable in terms of log supply and consistency of quality,
24
Peter Volker
d) is at a scale that is achievable and affordable but can be rapidly expanded when
required,
e) is aimed at the high quality end of the market to utilise the unique pruned log
resource and benefits from added value, and
f) protects the PIT growers and processors from competition from the three major
companies (strategy outlined in Chen and Volker report), especially in commodity
markets.
•
Chile E. nitens producers should consider joint venture partnerships with Australian
producers such as Forest Enterprises Australia and Forestry Tasmania to establish a
brand for E. nitens products in international markets. This would assist with scale of
supply from both regions and help establish markets in important areas like China and
USA.
•
Chile E. nitens processors need to overcome technical difficulties in processing
eucalypt timber and develop markets (addressed in Chen and Volker report).
•
There may be a quarantine issue with selling Chilean eucalyptus timber in Australia.
This should be investigated further before effort is spent on market development.
•
Chile E. nitens growers should consider the most efficient arrangement to either:
a) establish their own tree improvement program; or
b) secure supply of genetically improved E. nitens seed which meets their
requirements to improve the wood quality of the resource which will supply their
processors.
25

Australia Hardwood Market Research Report

Transcription

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