Import:Export Wood Purchasing News - February/March 2018

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Business Trends Abroad Continued from page 27 proval by New Zealand’s Overseas Investment Office, and will allow for the exchange of best forestry management practices between the two countries. Nelson Forests is a vertically integrated plantation and mill operation in New Zealand’s Nelson/Marlborough region, while OFO is a leading company in the Australian forestry industry. The Nelson plantation, which is more than 60,000 hectares, sits in a region with annual log processing capacity of 1.4 million cubic meters. OFO, which has 80,000 hectares, holds longterm harvesting rights to a softwood plantation estate in the Green Triangle region. After the acquisition, OFO plans to increase processing activities in the Nelson region. Global Forest Partners LP, a U.S.-based timberland investment management organization, currently owns Nelson Forests. Campbell Global, Gresham Partners and MinterEllisonRuddWatts served as advisory partners to OFO on the acquisition. SOUTH AFRICA—Importers are facing an uphill battle to lift wholesale prices as the country is affected by a weak rand, causing traders to only order wood they need the most. As a result of the depreciated currency, traders also are working to secure price increases for Meranti and U.S. and African hardwoods to offset the rand’s drop in value. Demand for panels is low since most of the shop-fitting work in the malls has been finished, leaving fewer projects coming down the pipeline. The furniture market here is also moving slowly, despite a slight improvement in disposable income levels that lifted retail sales in the third quarter. Still, consumers are cautious about making purchases that can be delayed, including household items. Last year was a tough one for sawmills, although one expert wrote in Sawmilling South Africa there is hope for this year, thanks to significant change of ownership in the sector, which could bring renewed interest in the industry. In recent years, many sawmills had considered the feasibility of converting biomass into electricity, but a stabilization in the national power grid means sawmills will return to focusing on modernization and mechanism of mill operations. Sawmill workers will also work to increase productivity, especially since the government plans to introduce a National Minimum Wage this year. EXPORTERS OF VENEER AND SAW LOGS MANUFACTURER OF QUALITY BAND SAWN NORTHERN APPALACHIAN HARDWOODS RED OAK WHITE OAK CHERRY SOFT MAPLE POPLAR WHITE ASH HARD MAPLE 500,000 B.F. Dry Kiln Capacity Container Loading S2S, Ripped to Width, Cut-Length & Finger-Joint Lumber Measured & Inspected after Kiln Drying WALNUT 2 Million B. F. Dry storage Mixed TL’s 2240 Shermans Valley Road, Elliottsburg, PA 17024 Phone: 717-582-4122 Fax: 717-582-7438 Toll Free: 1-800-253-0263 E-mail: sales@tuscarorahardwoods.com Website: tuscarorahardwoods.com INDONESIA—The Ministry of Environment and Forestry (KLHK) has decided to allow plantation log exports, since the volume produced is more than the domestic market can absorb and the log quality is suitable for the export market. Critics of the decision, including the Association of Sawn Timber and Processed Timber Manufacturers Softwood Producers (ISWA), argue Indonesia shouldn’t open the door for log exports, especially after more than 30 countries have banned them. They also have expressed concern that poor export oversight could cause the illegal lumber trade to grow. The KLHK said permitting log exports will create competition, yielding better prices for local log producers, which in turn will encourage plantation owners to invest more in advanced harvesting systems to increase productivity. BRAZIL—According to recent reports, a forest concession system of management can help preserve the Amazon and reconcile job and income generation with forest conservation. According to published reports, a forest concession system can help deliver verified, legal timber to the market. Currently, efforts are underway to make the Documents of Forest Origin (Documentos de Origem Florestal, or DOF) system more transparent, since the DOF is responsible for oversight and control of forest product transportation throughout the country. Better transparency will help create strong public and private systems to combat illegal timber activities. The Ministry of Environment says many Amazon wood products come from illegal harvesting, largely in protected areas such as conservation units (UCs) and indigenous reserves. Improved transparency in issuing DOFs also will legitimize forest products exchanged between traders and consumers, all of which is crucial to ensure the timber trade from the Amazon is legitimate. Brazil has 29 forest concession areas, in which nearly 1 million cubic meters of wood have been sustainably produced. ITALY—Italy is now the third country to publish a national forest stewardship standard (NFSS), which will become effective Feb. 21. The NFSS is based on version 5 of the FSC Principles and Criteria, and Continued on page 29 Page 28 Import/Export Wood Purchasing News February/March 2018
Business Trends Abroad Continued from page 28 is applicable to forest operations seeking FSC certification in the country. The standard’s primary aims are to promote, disseminate and support responsible forest management at the national level and enhance forest functions from environmental, social and economic viewpoints. The NFSS applies to all forest types, including non-timber forest products (NTFP) and ecosystem services. The development of the Italian standard began in January 2015, when a national approach was adopted to develop a forest management standard for all the different types of Italian forest. More than 80 countries are currently transferring their national standards from version 4 to version 5 of the Principles and Criteria. Ten countries have finished or are near finishing changing standards. Of the remaining 70 countries, about 40 countries have a chamber-balanced standard development group, which is usually supported by an FSC national or regional office. In the 30 countries where there is no FSC presence, certification bodies are developing interim national standards. Forested areas cover about one-third of the country, or 9.2 million hectares. Only 93,000 hectares are classified as primary forests, and 8.5 million hectares are considered naturally regenerated forests. Almost 0.64 million hectares are forest plantations, mostly Poplar. Sixty-five percent of Italy’s forests are in mountainous regions, and sit above 500 meters altitude. About 42 percent of the country’s forests are managed as coppices, 36 percent are stand (high) forests and the rest consist of riparian and rupicolous forests and shrubs. Coppice forests are primarily in central southern Italy, while most of the productive high forests are main coniferous located in the northeast. The main coniferous species are Pine, Spruce and Larch. Broadleaved species, such as Beech, Oak, Poplar and Chestnut make up two-thirds of the national growing stock. NORWAY— Moelven Industrier ASA will build the world’s largest timber building in Mjøstårnet. It will stand more than 80 meters tall, more than 30 meters taller than the current record-holder in Vancouver, Canada. The building will have more than 18 floors and include apartments, an indoor swimming pool, a hotel, offices, a restaurant and several common areas. Moelven, a Scandinavian industrial group, will supply the timber from local spruce forests. The record-breaking building will sit on the edge of the northeastern tip of Norway’s largest lake, Mjøsa, in the small town of Brumunddal, an hour and half north of Oslo. Construction is slated for completion in December. Arthur Buchardt, an investor and contracting client working with the project, said the building exemplifies “world-class engineering,” and despite its height, will be done without external scaffolding. Buchardt said they will primarily use cranes, supplementing with lifts as needed. At the time of publication, 33 meters of the building were completed. Moelven Industrier ASA is an industrial group that supplies products and services to the Scandinavian construction market. The group’s businesses employ more than 3,600 people and has an annual turnover of NOK 11 billion. The group’s production units are organized into timber, wood and building divisions. UNITED KINGDOM—More than £111 million of forestry was sold here in 2017, 40 percent more than 2016, according to forestry investment reports. The report is based on commercial forest properties sales between Oct. 1, 2016 and Sept. 30, 2017, demonstrating the market bounced back after a quieter 2016. The increase is thanks to a buoyant market, high-value properties and portfolios, steady demand and an influx of new investors. A total of 87 forest properties were sold, compared to 67 in 2016, for a total of £111.04 million. Sales were up £31.8 million from 2016, and were higher than the five-year average of £104 million annually. A total of 17,272 hectares were traded, 78 percent in Scotland. Forestry in England accounted for 18 percent of the market, and just 4 percent in Wales. The report backs up MSCI IPD index findings that the industry is in good shape with strong annual returns. While demand for large-scale commercial plantations was strong, supply was decreasing. With some exceptions, no commercial plantations have been established for almost 30 years, as many of the larger private plantations are now owned by collective funds and portfolios. Experts say in the changing world of Brexit, generational succession will play a big role in the forestry market. Also, new afforestation opportunities may arise as a result of existing farmland owners planting areas, or from changed ownership to forestry investors. Engaging in afforestation and promoting the need to plant trees will help safeguard the British forestry industry. ■ BOX 111 SPARTANSBURG, PA 16434 PHONE: (814) 654-7111 FAX: (814) 654-7155 E-MAIL: pennsylvanusa@aol.com WEBSITE: www.americanhardwoodexport.com Advancing To build acceptance international and demand trade in wood in North products America through education and leadership in business, environmental and public STAY CONNECTED Follow us on Twitter, Facebook, Linked in and Blogger. WWW.IWPAWOOD.ORG Tel: 703/820‐6696 Fax: 703/820‐8550 info@iwpawood.org WHY IWPA? Grow your business. Informing your business decisions: IWPA lobbyists keep you updated on laws, regulations and compliance. Creating business opportunities: IWPA’s website and publications drive business to you. IWPA’s World of Wood Convention expands your business network and delivers bottom‐line results. ATTEND WORLD OF WOOD IWP Annual Convention March 14-16, 2018 Hotel Monteleone New Orleans, LA Import/Export Wood Purchasing News February/March 2018 Page 29
Page 1 and 2: www.woodpurchasingnews.com Vol. 44
Page 3 and 4: Table of Contents FEATURES: 2018 IB
Page 5 and 6: Import/Export Wood Purchasing News
Page 7 and 8: Log Prices, Exports, Lumber Demand
Page 9 and 10: Rainey Millworks: Imports Contribut
Page 11 and 12: WASHINGTON SCENE Proposed Bill Woul
Page 13 and 14: BV-COC-016615 TRANSPORTATION - Cont
Page 15 and 16: HHP- Continued from page 4 Jeremy A
Page 17 and 18: SOUTHWEST CLUB - Continued from pag
Page 19 and 20: Import/Export Timber Products’ St
Page 21 and 22: Who's Who - Stoufflet Continued fro
Page 23 and 24: Ontario Continued from page 22 perc
Page 25 and 26: Northeast Continued from page 24 be
Page 27: West Coast - Continued from page 26
Page 31 and 32: NEWSWIRES - Continued from page 30
Page 33 and 34: NEWSWIRES - Continued from page 31
Page 35 and 36: A guide to U.S./CANADIAN SOFTWOOD F

Import:Export Wood Purchasing News - February/March 2018

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