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Industry Review 2017

www.vafi.org.au

01 VAFI Annual Industry Review 2017 02

Each year seems to go faster than the one before, everyone seems busier, doing more work with less time and resources. This year, that sentiment seems particularly true.

The challenges kept coming, and at each turn it felt like there was another barrier for us to get through. Yet, in the face of adversity, the forest, fibre and wood products industry showed true resilience and spirit. This year saw the industry in the spotlight more than ever, and from this I saw the passion and dedication that makes us great.

The Victorian Association of Forest Industries (VAFI) continues to be at the forefront of the industry, being a strong voice to government, and leading us into the future. From fibre and wood supply across both the plantation and native forest sectors, wildlife management issues, and positioning the industry as the leader for the low carbon future, they have been there fighting alongside us every step of the way.

I would like to take this opportunity to thank the VAFI Executive Committee for their hard work over the year, without their support and commitment to the industry and to VAFI, life would be more difficult. I have valued their input and look forward to working with them again in the future.

Finally, I would like to acknowledge the work of the VAFI staff. Along with their tireless work for the industry, they have also undertaken major governance and structure changes as an association to ensure it stays relevant to our evolving industry.

The Victorian Association of Forest Industries has served us well for many decades now, and I know that it is well positioned to be the body to lead us into the future.

Michael Taylor President

Michael TaylorMessage from the President

Tim Johnston Message from the Chief Executive OfficerChange is a word that is used often in this industry. For years now, we have seen change coming. For me, 2017 was the year that saw the industry acknowledge that change cannot be avoided, whether we like it or not.

I see change as a positive, not a negative. It is a chance to create the industry we want, to seize opportunities that may not have been present before. A changing resource landscape, new products and markets, evolving skills and training, advances in bioenergy, and being the leader in a low carbon economy – the opportunities for this industry are endless.

In order to reflect the evolving forest, fibre and wood products industry, and the growth in VAFI membership, we felt that as an Association, it was time for us to make some changes too.

This year saw VAFI undertake major changes to our governance and structure. VAFI is proceeding with deregistering as a Registered Organisation under the Fair Work Act, and becoming an Incorporated Association. In this process, we have rewritten the Association’s rules and constitution.

This change enables VAFI to significantly free up operation and administration resources to more efficiently represent our members. It allowes us to make changes to the key areas of the Association, including our aims, objective and value proposition.

Most significantly, we used this season of change to take the Association to a new level. VAFI is no longer just sawmillers, we are growers, managers, contractors and processors. We work in plantations, and the natural forest and we live in all regions of Victoria. We are every step of the supply chain.

Tim Johnston Chief Executive Officer


Welcomes

Executive summary 4

About this report 4

Industry snapshot 5

Economy 7

Community 15

Sustainability 23

About VAFI 29

Governance and stakeholders 30

Endnotes 33


Contents

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In Victoria, we are in a unique position that sets us apart from the rest of Australia. We have a natural asset at our doorstep that has an economic value, and plays a vital role in combating climate change. Victoria is at the heart of the low carbon future – but we need to lay the groundwork now.

We have a strong and sustainable integrated forest, fibre and wood products industry in our state. Timber harvesting in Victoria works because it is highly regulated, and based on sustainable forest management that takes into

account the environmental, social, cultural and economic values of the forest. It is a sector that will continue to thrive if given the opportunity.

The world is transitioning to an economy that is low carbon and uses the unique strengths and properties of forest fibres – from their renewability and carbon sequestration capacity to their recyclability. Australia is well placed to address this global transition, and Victoria can lead the charge.

We have the building blocks for this future, and we can only go up from here. A growing plantation estate along with our strong native forest sector, and the right infrastructure, will see the growth needed for the industry to thrive in Victoria.

Together, with the sustainable raw forest fibre available at our fingertips, combined with its unique properties, industry, with its strong base of suppliers, local communities and a highly skilled workforce, can work to deliver innovative products to a market that is ready for renewable solutions.

The VAFI Annual Industry Review 2017 looks at the economic, community and sustainability aspects of the forest and wood products industry and the activities of VAFI as its peak industry body. Annual reviews have been conducted by VAFI since 2005 as a tool for dialogue, a method of recording improvements, and as a resource to support decision-making by industry stakeholders and government.

This review covers the 2016-2017 financial year; outlining key areas of the forest, fibre, and wood products industry as well

as key aspects of VAFI operations. A draft of this review was provided to a number of organisations and government agencies for data and information verification.

The VAFI Members Survey 2017, reports, studies, websites and papers of other industry participants, and the Victorian and Federal State of the Forest Reports 2013 have been lead sources of information for this report. Terms used are those defined in the Glossary to the Victorian SFR 20131.

Your commentsAll comments on this review are welcome. Your feedback will provide important input into further improvement of VAFI’s future industry reviews. Comments should be sent to:VAFI Industry Review, GPO Box 4320, Melbourne Vic 3001Email: [email protected]

About this report


Executive summary

2015-16 2016-17

Direct industry employment 21,000 20,0002

Additional jobs supported 40,000 – 50,000 40,000 – 50,000

Value of the industry3 $7.11b $7.325b4

Area of timber plantations in Victoria 433,1005 423,0006

Total forest area in Victoria 8.0 million hectatres7 7.9 million hectatres8

Area available and suitable for harvesting by VicForests 496,000 ha9 450,000 ha10

Area of public native forest harvested by VicForests 2,854 hectares11 2,965 hectares12

Volume of logs harvested (’000m3)Hardwood native 1299 1298Hardwood plantation 2834 2827Softwood 3928 4040TOTAL 8.061 million m3 13 8.165 million m3 14

Value of logs harvested ($m)In 2014–15 the value of logs harvested increased by more than 10 per cent, to above $2 billion for the first time (Australia wide).Hardwood native 109 112Hardwood plantation 197 194Softwood plantation 280 293TOTAL $586 million15 $599 million16

Area of Australian forests and plantations independently AFS: c.26.872 million ha17 AFS: c.24.05 million ha19 certified (AFS/PEFC and FSC) FSC: 1 million ha18 FSC: 1.2 million ha20

*Some areas of forest have both certifications

Number of certified sites (Australia) AFS/PEFC: 24821 AFS/PEFC: 29123 *

* Some chain of custody certified companies have both certifications FSC: 30222 FSC: 31124


Industry snapshot

*In November 2015 QDAF expanded their certified area to include a large amount of leasehold state land (about 17 mil ha) that is managed for timber production, along with other agricultural products

$8b

$7b

$6b

$5b

$4b

$3b

$2b

$1b

500,000ha

400,000ha

300,000ha

200,000ha

100,000ha

600,000ha

700,000ha

800,000ha

2014 - 2015 2015 - 2016 2016 - 2017

$

Plantation area

Native Forest harvest area

$ $

Value of Logs harvested$

Value of Industry$

$

$ $

494,000ha433,000ha 450,000ha423,000ha496,000ha433,000ha

The forest, fibre and wood products industry in Victoria is widespread and diverse. From Central, West and East Gippsland, the Central Highlands to the North-East, and Western Victoria, it spans across the state. The overall vision for the forest, fibre and wood products industry in Victoria, and Australia, is that of growth, stability and sustainability. We are an industry of the 21st century.

Just like the vast geography it spans, the products the industry delivers are wide ranging. They range from sawn and wood panel products for building, high volumes of paper for printing and packaging, and downstream products, including furniture. New and emerging technologies means we are seeing the development of new products that will see the industry ensure the most value is being extracted from every ounce of fibre.

IntroductionA successful and sustainable industry requires a holistic supply chain strategy, together with a collaborative vision and business buy-in that covers strategic, tactical and operational drivers. Each part plays an important role in the whole supply chain of the industry.

Timber is a renewable, recyclable and sustainable resource that plays a vital role in the fight against climate change. The future will see the industry grow, change and adapt. There are a range of opportunities that will help the industry flourish, and our forests thrive.

With the opportunities, there are constraints that need to be addressed, including:• Resourceavailability;• Lackofinvestmentinprocessing

facilities in Victoria;

• Skills&training;• Lackofresearchintonew

technologies etc;• Animpedingregulatoryframework.To each of these constraints there are solutions. The growth of the future of the forest, fibre and wood products industry must be underpinned by research and development, which will lead to investment and innovation.

As industry continues to work for a sustainable future, a cooperative approach is required; amongst industry and government, with strong leadership and a long-term commitment to create this future.


The forest, fibre and wood products industry in Victoria (and across Australia) integrates the whole supply chain of forests and wood resource utilisation primarily through seven industry sectors:• Forestgrowingandmanagement• Harvestingandhaulage• Sawmillingandprocessing• Pulpandpapermanufacturing• Timbermanufacturedproducts• Woodpanelandboardproduction• Timbermerchandising

The forest, fibre and wood products industry is a vital industry for Victoria and a key contributor to the state’s economy. The industry is a major driver of economic activity and jobs in Victoria,

Industry overviewgenerating $7 billion in sales and service income annually. Much of the income generated by the industry remains in local communities, particularly so in rural and regional Victoria.

Throughout the state, the industry directly employs approximately 20,000 people. Around 90% of these directly employed workers are in primary and secondary processing roles; essentially timber manufacturing applications, such as appearance product manufacturers, furniture manufacturers, and timber fabricators.

Indirectly, the industry also supports a further 40,000 to 50,000 jobs through flow

on economic activity. This includes value-adding roles, such as the nearly 10,000 people who work making timber furniture, cabinetry and in joinery manufacturing.

The forest, fibre and wood products industry is closely related to other economic sectors with cross-industry representation including management of forest reserves and parks through conservation and land management; arboriculture for provision of environmental and recreational services; indoor and outdoor timber furniture manufacturing; and emerging industries such as bio-fuels, bio-energy and bio-materials production.

Source: Radial Timbers

Forest area


Plantations

319,000 423,000

47% Hardwood (mostly bluegum)

52% Softwood (mainly radiata pine)

2000 2016

Plantation estatePlantations and farm forestry (including small scale and agroforestry) present an opportunity to increase Australia’s long-term wood supply while contributing significant social, economic and environmental benefits to regional Australia.

In 2015-16 Victoria continued to have the largest total area of plantations of Australian states and territories with 423,000 hectares of commercial hardwood and softwood plantations25, which is stable from the previous year. Hardwood plantations (mostly bluegum) continue to cover roughly 47% of the plantation estate, while softwood plantations (mainly radiata pine) covered 52%.

A strong and vibrant forest, fibre and wood products industry needs a secure, stable and sustainable resource supply across both the native forest and plantation sectors. We are a product and market driven industry, and resource certainty will underpin the innovation and investment needed to ensure the industry realises this strong future.

In a promising sign for the future of the plantation estate in Victoria, the 2017-18 State Budget featured $110 million in funding for plantation establishment in the Latrobe Valley. VAFI is working with government and industry on the details of the funding.

Whilst this announcement is a positive for the industry, to continue to have a sustainable future, there is the need for

further and continued investment in the plantation estate, including plantation establishment and ongoing development onthebackofR&Dandtrials.Optionscan be explored through farm forestry (including regulatory reform to support private forestry/Investigate the extent, species availability, location and relevant legislative instruments with regards private native forest resource), investors, traditional operations (e.g. HVP) and government investment. This will include investigation of potential sites for future

plantation (both hardwood and softwood; long and short rotation) development, including current ownership, proximity to processing capacity, transport and associated infrastructure, etc. and incentivising commercial plantation expansion by recognising the environmental and public goods they deliver.

VAFI will continue to support initiatives to increase plantation and private forest investment.

Source: HVP Plantations


Source: Victorian Association of Forest Industries

7.9m hectares

0.04%

harvested and regenerated annually

by VicForests

Native forest estateVictoria has about 7.9 million hectares of forest across both Crown and private land.

Forest in Victoria

Almost eight million hectares of Crown land is managed to provide environmental, social, cultural and economic benefits to the people of Victoria. The primary tenures of Crown land are Parks and Conservation Reserves or State Forest.26 Of the 7.9 million hectares of public native forest in Victoria, more than 90% of these forests are unavailable or unsuitable for timber harvesting operations. This includes 4.74 million hectares of native forest in Victoria which is protected in national parks and conservation reserves.

There are many forest types present in Victoria’s State forests. The main forest types are ash forests and mixed species forests. Some areas consist of other tree species such as wattle and others are grasslands or swamps. Timber harvesting is permitted within a very small fraction of Victoria’s total native forest area. The area available for harvesting is made up of General Management Zones and Special Management Zones. Areas classified as ‘reserved’ are forests within Special Protection Zones and other exclusions such as riparian buffers and slopes.

In total, approximately

450,000 hectares or

5.7% of the state’s total

native forest estate is

available and suitable to be

harvested by VicForests.

In 2016-17 VicForests

harvested 2,965 hectares

or 0.038% of total native

forest area in Victoria.

VAFI works continuously to ensure that there is a secure resource supply from this natural asset on an ongoing basis. Options for this future can include:

• Nochangetoexistingindustry,includingmaintaining current resource from native forest, and recognising the successful sustainable forest management regime already in place, by implementing an education program to reinstate social licence (help change the negative public perception of the industry through strategic policy settings).

• Changedsilvicultural/operationalapproach to native forest harvesting, options to be explored include: a whole of landscape thinnings operation to reduce fire risk and supply fibre to industry, select harvesting (a silvicultural practice of harvesting a proportion of the trees in a stand. As a silviculture system it is designed to maintain an uneven or all-aged forest of trees varying not only in age, but in size and species as well).

• Consideroptionsforholisticmanagement across the landscape (special protection zones/timber production zones), including using information from recent VEAC reports to inform debate. Any management of landscape should maintain the current native forest volume with the minimal impact on the environment.

90%

Unavailable or unsuitable for

harvesting

EconomyThe economic framework for Victoria’s forest, fibre and wood products

industry consists of government policies on investment, regulation, taxation

and trade. These settings influence the level of investment in conservation

and sustainable management of forests, as well as the sustainable production

of forest products, ecosystem service values, and access to national and

international markets. Reporting change to economic frameworks can provide

insight into the role of Government in driving trends in the sector.27



Regional Forest AgreementsThe management of Australia’s forests is guided by the 1992 National Forest Policy Statement (NFPS), which outlines agreed objectives and policies for the future of Australia’s public and private forests.28

Following the introduction of the NFPS, Regional Forest Agreements (RFA) were developed. RFA’s represent the cornerstone of native forest resource security policy, balancing the environmental and economic demands on naturally regenerated forests. In Victoria, five 20-year RFA’s were established between 1998 and 2000 to guarantee protection of the most significant biodiversity values within Victoria’s native forests.29

VAFI has been a strong supporter of the RFA process and its regional and all-inclusive approach to environmental, social and commercial forest asset interests. However, we believe that industry development has been constrained by resource reductions,

sovereign risk associated with resource uncertainty and industry consolidation which are not in accordance with the RFAs. There have been political decisions made in Victoria which have undermined the RFAs and limited the extent to which industry growth can be achieved.

VAFI also believes that there are issues with public perception of the RFA process which has led to a lack of community confidence in the RFAs. These can be addressed through communication and demonstration of monitoring, compliance and performance, driven by government.

In 2017, the Federal and State Governments extended the East Gippsland RFA until March 2018 to be in line with the Central Highlands RFA. The State Government began the delayed 15-yearly implementation review of all Victorian RFAs in May 2017.* This review will inform negotiations for renewing Victorian RFAs in 2018, and beyond. VAFI is playing an active role in all processes to ensure the best outcome for industry. VAFI continues to work for the security of resource for the industry, including the extension of RFAs. *at the time of writing, this review was not released.

Investment, innovation and growthInvestment and innovation is key to any successful industry. To continue to grow the forest, fibre and wood products industry in Victoria, investment is vital.

Stable and clear policy settings allow for investment and innovation in products, processes and technology. There is the need to drive efficiencies in the value chain to increase productivity, lower costs and increase international competitiveness.

With government support, industry will build and diversify markets, both domestically and internationally, in-line with an increasingly competitive and diversified industry. Investing in more products that are of a higher value is an opportunity to use timber in different ways that add more value to the economy and can be processed and manufactured here in Victoria. To be able to better utilise wood in this way, investment and research is needed into how, why and where best to situate so that businesses are financially viable.

VAFI takes a great interest in markets and the opportunities for our products both locally and internationally and is working with government to provide the environment to encourage investment; to better understand growth pathways, including business models and the interests and needs of potential investors. The 2017 VAFI Members survey shows that 100% of members said they planned to invest in 2017-18. Members also stated that the top 3 barriers to investment include: •Longtermsupply;•Priceoflandforexpansion;and•Returnoninvestment.


VAFI works across a wide range of policy areas. Currently VAFI is working with industry and Government on:• Markets and New Products • Resource availability• Investment, Innovation and Growth • Regulation & Policy• Skills, Training and Jobs




The new Radial Timbers Mill at Yarram, South Gippsland, officially opened in 2017. The state-of-the-art mill, opened byTheHonDarrenChesterMP,FederalMember for Gippsland, is a fantastic investment and achievement for Radial Timber, and shows the forward thinking and innovation that is happening in the forest, fibre and wood products industry in Victoria. Radial Timbers has built a mill that really is the first of its kind in Australia. They have used Australian developed technology that

allows them to triple their production capability and are to be commended for constantly looking at ways to improve their operations all along the supply chain.

The mill is a real boost for the local community, the wider Gippsland region and for the timber industry in general. With employment opportunities in regional Victoria hard to come by, it provided secure work for the duration of the build and will provide ongoing work as it operates.

Radial Timbers grows, mills and distributes a range of unique and standard products from durable Victorian hardwood timber. It is the only commercial radial sawing mill in the world, using Australian patented technologies. Radial sawmilling differs from conventional sawmilling, and cuts logs into wedges, essentially mimicking the way a log naturally splits as it dries. http://radialtimbers.com.au/

Radial Timbers – Yarram Mill

ResearchandDevelopment(R&D)drivesinnovation and improves productivity intheindustry.R&Discriticaltotheinnovation required to power the value-adding operations, productivity gains, and international competitiveness of the forest,

fibre and wood products supply chain into the future.

Forest and Wood Products Australia (FWPA) is the industry-owned research and development not-for-profit company

that provides national, integrated research and development services to the Australian forest and wood products industry. It provides a means for coordinating private and government investment in the industry.

Research and Development

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Healthy Forests Remove CO2

The Forestry Carbon Cycle Carbon Cycle

Decay & Wildlife Lost EnergyFossil Fuel

Combustion

Trees Harvested

Harvested areas Replanted


Wood is a renewable resource that stores carbon. Both the United Nations Food and Agriculture Organization and the Intergovernmental Panel on Climate Change have stated that the use of forests for energy and wood products may be one of the most effective ways to achieve sustainable reductions in carbon dioxide emissions. The practice of sustainable harvesting and regeneration stores carbon in wood products, as well as in regrowth forests.

It also allows for the production of low emissions timber products which reduce demand for alternatives, such as steel and concrete, which embody far greater carbon emissions in their production and manufacture. This role was recognised by the state government’s draft Climate Change Framework, where investment in jobs, skills and innovation in the forestry sector was listed as a potential for reducing Victoria’s carbon emissions.30

InDecember2016,theCommonwealth

Government released a draft carbon credit accounting method for plantations. If adopted, this methodology would apply to new plantations, or conversion of short-rotation plantations to long rotation. VAFI has provided formal feedback identifying a number of barriers to participation, including rainfall limitations, restrictions on water use and transparency of governance arrangements. The finalised method was released in Augsut 2017.31

Climate change and carbon

The world is transitioning to a bio-economy - an economy that uses biological resources from the land and sea, as well as waste, as inputs to food and feed, and industrial and energy production. It also covers the use of bio-based processes for sustainable industries. As the world’s

population continues to grow, the consumer expects and demands renewable and recyclable resources that will help society. Changes in technology are enabling the forest, fibre and wood products industry to be this resource.This bio-economy future will build upon

Bio-economy

Unlock the potential of wood fibre

Sawn TimberPulp

Mechanical products

Power and heat

Biorefining

Packaging and printed media

Textiles, composites

Structural products

Energy products

Chemicals

Recycled fibre

Recycled wood

LEGEND Blue: new Green: existing

Chemicals and energy products

Bark, thinnings, etc.

the unique strengths and properties of forest fibres – from their renewability and carbon sequestration capacity to their recyclability. Australia is well placed to address this global transition, and Victoria can lead the change.The goal of a bio-economy is a more innovative and low-emissions economy, reconciling demands for sustainable agriculture and fisheries, and the sustainable use of renewable biological resources for industrial purposes, while ensuring biodiversity and environmental protection. Fibres will be used and recycled to optimise the most value at each stage of production. When there are no more products, the residue can be used for energy. In Victoria, we have the building blocks for this bio-economy future already in place, and we can only grow and strengthen our resource. A growing plantation estate, with a strong native forest sector, and the right infrastructure, will see the growth needed for Victoria to be the platform for bio-economy in this country.

Image source: Australian Forest Products Association

Our year in review


VAFI GovernanceVAFI spent 2016-2017 undertaking a review of its rules and constitution, to move from a Registered Organisation under the Fair Work Act to an incorporated association. Under the new constitution, VAFI will work to provide consistent and more focused services for its members and allowing the association to grow.

Policy & SubmissionsOne of the key aspects of VAFI’s services is making policy submissions on behalf of its members to state, federal and local governments. In 2016-2017, VAFI made the following submissions:

Victoria• ReviewofFloraandFaunaGuaranteeAct1988;• ReviewofOwnerDriverandForestContractorsAct2005;• ReviewofVictoria’snativevegetationclearingregulations

andDraftPropertyVegetationPlantemplateforprivatenative forestry;

• VEACdraftTermsofReferenceforCentralWestInvestigation;

• VEACStatewideAssessmentofPublicLandrecommendations;

• IndependentreviewofOccupationalHealthandSafetycompliance; and

• InfrastructureVictoria,AllThingsConsideredoptionspaperandDraft30-yearInfrastructureStrategy.

National• ForestryStewardshipCouncil,Draft4oftheNational

Standard for Australia;

• DraftCarbonCredits(CarbonFarmingInitiative— PlantationForestry)MethodologyDetermination2016;

• RegulatoryImpactStatementonreformingAustralia’sillegallogging regulations; and

• ProductivityCommissionPublicInquiryintoNationalWater Reform.

Local• YarraRangesCouncil,LocalisedPlanningStatement

Many of the above consultation processes are still in progress and VAFI will continue to engage with them to advocate for the industry. VAFI’s advocacy has contributed to positive outcomes for the industry, such as:

• ExplicitconsiderationofeconomicforestvaluesintheTermsof Reference for VEAC’s Central West Investigation;

• Removalofrecommendationforfurtherinvestigationsof State forests in VEAC’s Statewide Assessment of Public Land;

• Expectedimprovementstotheapprovalsprocessforprivate native forestry under the revised native vegetation regulations; and

• FormalsupportforsustainableforestryintheYarraRangesLocalised Planning Statement.

VAFI staff are representatives of the Association on several committees, boards and other groups. In 2016-2017 VAFI was represented on the following:• Resources,Forestry,PulpandPaper

Industry Advisory Group• ForestIndustryTaskforce• ForestIndustryCouncil

• TimberTrainingCreswickBoard• TimberUmbrellaAdvisoryGroup• WoodProductsVictoriaBoard• KoalaManagementLeadershipGroup• LandandFireManagement

Roundtable• VEACStatewideAssessmentofPublic

Land community reference group


Representation• ForestManagementandHarvestingIRC• TimberandWoodProcessingIRC• VictorianForestryITABMeeting• WomeninForestsandTimberNetwork

Advising Committee• AUSTimber2020PlanningCommittee


CommunicationsIn what was a busy year, VAFI continued to broaden its communication offerings, from distributing more media releases to taking part in several media interviews. VAFI is active on social media, growing in followers on Twitter and Facebook.

In the reporting period, VAFI developed the Faces of Forestry campaign website, and will continue to expand the site in the coming year.

VAFIsuccessfullyrantheAnnualIndustryDinnerandcompleted another Industry Review, showcasing the Victorian forest, fibre and wood products industry.

Political EngagementThe VAFI Executive Committee, CEO Tim Johnston and staff met regularly with State Government Ministers, Opposition members and senior staff across government departments, inparticulartheDepartmentofEconomicDevelopment,Jobs,TransportandResources(DEDJTR)andDepartmentofEnvironment,Land,WaterandPlanning(DELWP).

We regularly briefed members of parliament on issues relating to the forest, fibre and wood products industry – for example, resource security, plantation expansion options and koala management.

MembershipVAFI has retained a consistent membership over the course of 2016-2017, with 21 full members and 9 associate members. With a retention rate above the national average for industry associations, VAFI is well placed to serve the forest, fibre and wood products industry. As part of the review of the VAFI constitution, individual / supporter members will be able to join the Association.

• Commencedformaltransitiontobecomean incorporated association

• Adovcatedforplantationexpansion,highlightedbytheannouncement of $110 million in funding for plantation establishment in the 2017-2018 Victorian State Budget

• HeldasuccessfulVAFIAnnualDinner

• Releaseof2016IndustryReview

• FundingforShelley-WalwaRdsecured

• Formedandcontinuedstrongrelationshipswithkeyinfluential stakeholders to further the Victorian forest, fibre and wood products industry agenda

Key Milestones

Imports and Exports


Source: Australian Bluegum Plantations

Businesses in the Victorian forest, fibre and wood products industry produce a

wide range of product types from high quality appearance and structural grade

timbers through to woodchips and paper and packaging for both Australian and

international markets. 71% of respondents to the 2017 VAFI Members survey export their products.

The international trade of products is a key influence on Australia’s forest, fibre and wood products sector. Australia’s trade in wood products reached record levels in 2015–16 with total merchandise trade (imports plus exports) exceeding $8 billion for the first time. Overall, Australia imports more forest, fibre and wood products than it exports, with an average trade deficit of $2 billion in value per year between 2002 and 2014.

Based on the first six months of 2016-17, the strong export performance of Australia’s wood product industries has continued into the current financial year. Exports increased by 7.8% to $1.6 billion, from $1.5 billion in the corresponding


quarters of 2015-16. The largest contributors to this improved export performance were roundwood and woodchips.32

In contrast to exports, imports decreased by 6.4% to $2.7 billion in the first two quarters of 2016-17, compared with the corresponding quarters of 2015-16.Declineswereexperiencedinmostimport categories, in particular paper and paperboard which fell 8.4% to $1.1 billion. These declines were partially offset by an increase in imports of wood-based panels, which rose by 15 per cent to $272 million.

Victoria continues to be Australia’s largest exporter of forest, fibre and wood products, In the year through to June 2016, the value of Victorian forest

Britton Timbers is a diversified Australian company with interests in timber harvesting, sawmilling, international timber import and export, and distribution.

The Britton name has been synonymous with quality timber and outstanding customer service for more than 100 years. From humble beginnings in Tasmania’s timber-rich north-west coast, Britton Timbers has

grown to become Australia’s largest importer of sustainably-produced exotic hardwoods and the preferred source for premium Tasmanian timbers.

Today’s most popular timbers are available through Britton Timber’s domestic and international distribution centres. Customers in Melbourne, Sydney and Brisbane, now have access to the finest Australian timbers and veneers, including Tasmanian Oak,

Blackwood and Myrtle, for cabinetry, furniture-making and flooring.

Britton’s is also Australia’s foremost importer and distributor of sought-after American hardwoods such as American White Oak, Walnut and Cherry, Accoya and the exciting Cambia modified range. Timbers are available for export to China, Singapore, USA and New Zealand. http://www.brittontimbers.com.au/

product exports increased by 4%, to $722 million.

Victoria’s major forest product exports by value are paper and paperboard, and roundwood. In 2015-16, paper and paperboard made up around 47% of Victoria’s total reported value of forest product exports, at $338 million. During2015-16,roundwoodexportsexperienced strong growth of $39 million, to total $209 million and make up nearly 30% of all Victorian forest product exports.33

To best serve the domestic forest and wood products industry, negotiated international trade agreements need to be transparent, balanced, and equitable, and contain provision for the continuation of strong anti-dumping provisions.

Britton Timbers


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New markets and products


Options for new products in the industry include:

• Compositewoodproductsandbuilding systems;

• Newstructuralandpanellingtechnologies to utilise small-wood and residues and to use in timber construction in commercial and high-rise buildings;

• Higherproductrecoveryfromharvesting, processing and manufacturing operations;

• Energyandheatproduction;

• Pulpandpaperproduction;

• Logassessmentandgradingtechnologies;

• Innovativetissue,paperandpackaging products; and

• Bio-chemicals,textiles,solvents,plastics, lubricants, fragrances, and other potential outputs from ‘bio-refineries’.


The future of the forest, fibre and wood products industry will be market driven and

see the development of many new products. To achieve this, there must be the

opportunity for diversification, value-adding and product innovation with respect to

fibre, wood and paper products.

Cross Laminated Timber (CLT) continues to grow in popularity exciting designers, architects, builders and environmentalists alike. Timber used in the manufacture of CLT stores carbon, representing one of the technologies many environmental credentials. CLT is also light and can be quick to install, is prefabricated reducing on-site construction waste and improving site safety, is durable, strong, and cost effective. Australia is fortunate that it is about to enter world of manufacturing with XLam’s new state-of-the-art CLT plant being built in Wodonga.

With support from all levels of Government, in the form of establishment grants as part of a concerted, regional development focus, XLam is bringing jobs and innovative technology to regional Victoria, and comprehensive building solutions to the Australian market.

The establishment of the plant is expected to create 54 local jobs over several years of operation, and will have a knock-on effect to suppliers and service providers throughout the region, which shall include requirements for transportation and logistics.

Currently the plant is installing various manufacturing equipment following the completion of the plant in mid 2017. At the conclusion of the project, and following the successful performance testing of the equipment, XLam will be the most technologically advanced and the largest CLT manufacturer in Australia. XLam are leading the way for innovation in sustainable construction solutions throughout the southern hemisphere.

XLam’s business model includes support of full-service offerings in design, manufacture and installation/construction. XLam have the capacity to deliver a comprehensive alternative construction solution for customers.

XLam Australia

Infrastructure




A key aspect of regional manufacturing businesses is ensuring that the associated infrastructure, such as roads, rail and port facilities, is maintained and developed in step with the growing needs of industry. Local municipalities often find it difficult to fund maintenance and upgrades of local roads utilised by many road users including the forest, fibre and wood products industry, which impacts on both the community and the industry alike. Maintenance of these roads is an ongoing concern for industry and local government, with the cost threatening to undermine future production. Strategic planning of freight infrastructure and efficient access from resource to market provides clear benefits to the whole community, including safety for all other users (e.g. school buses, tourists), regional job security, and improved access for other primary industries including local farmers.

The road infrastructure required by our industry spans across remote and rural areas as well as regional and metropolitan areas. Productivity improvements are critical to Victoria’s economic growth, and a collaborative approach to roading will result in fewer trucks on the road, fewer trips and better use of infrastructure and routes.

This also leads to improved safety, environmental and efficiency outcomes.

VAFI works closely with local councils and VicRoads to ensure that the needs of the industry are being met, while also being aware of community considerations. In 2016-2017 VAFI worked to secure funding to upgrade the Shelley-Walwa Rd in the North-East

The Victorian forest, fibre and wood products industry exports to numerous countries, predominately China and Japan, and relies heavily on the port system including Ports of Melbourne, Geelong and Portland. Issues related to ports in Victoria that directly impact the forest, fibre and wood products industry, include port capacity and on-port rail access. Government direction and support is required to increase the availability and reduce the cost associated with the on-port rail as part of ongoing transport efficiencies. This will also assist in reducing trucks on roads around port areas and is part of normal wharf operations in other areas of Australia.

In May 2017, Infrastructure Victoria published recommendations to Government on the future development of Victoria’s ports, concluding that: Capacity at Victoria’s existing ports should be optimised, with some trade diverted from Port of Melbourne to Portland, Hastings and Geelong;

($3.76 million for sealing), and roads servicing the Port of Portland in South West Victoria ($113 million to upgrade and maintain roads, including $65.8 million for a south-western Victorian roads package, $37.2 million to seal local narrow roads and $10 million for the Henty Highway and the Green Triangle around Portland).

Detailedplanningforasecondmajorcontainer port should commence in approximately 2040 to begin operation

in 2055, with Bay West the preferred location for a second port.34

Source: DN & LJ Blackwood

Roads

Ports

Figure 1.

The Victorian timber industry production chain34

Sawlogs

Pulplogs Chips

Chips

Forest residues

Hardwood & Softwood sawntimber (Structural with LOSP treatment for framing)

Initial manufacturing or processing

Joinery & furniture manufacture

Trusses & frames

Engineered wood products

Pallets & boxes

Further manufacturing

Wood panels – Plywood, Particleboard, MDF

Pulp and paper

Peeling & preservation

ProductsAppearance & structural grade

Sawdust etc

Sawdust etc

Products

Products

Products

Products

Bark & peelings

Sawdust etc

Products

Panels

Panels

Panels

Bark & Sawdust

Bark

Bark

ProductsPosts & poles

Packaging grade

Structural grade

Structural grade

Cameron Consulting, Socio-economics of the Forest & Forest Products Industry in Victoria, Report prepared for VAFI, p. 334

Hardwood native forests, Hardwood plantations, Softwood plantations

Sequestion, biodiversity, habitat, salinity abatement, catchment protection

Forest management

Environmental services

Landscape products, potting mix, chemicals, adhesives, cogeneration energy

End use by-products

Residential dwellings, commercial buildings and renovations

Furniture, doors, stairs, fittings, dwellings, buildings,renovations

Newsprint, printing & writing, fibre board, fibre boxes, tissues, hygiene products

Preservative treated posts and poles

End use products

Packaging

Fire wood


Victorian Timber Industry Production Chain

Community


$

$$

1%

Direct employment in the forest and wood products industry represents approximately 1% of the total Victorian workforce

13,000 live and employed in the suburbs of Melbourne and work in manufacturing such as cabinetry, framing and furniture making

40,000 – 50,000 indirect employees

Between 320 and 380 business operating locally

The forest, fibre and wood products industry is the lifeblood of many regional communities throughout Victoria. From Portland and Hamilton in the West, Benalla and Myrtleford in the North East, Orbost and Bairnsdale in East Gippsland, through to Powelltown in Central Gippsland, employees in our industry live and work in these communities. They are vital contributors to the local economies, and stalwarts in the community.

Industry contribution to communityVAFI members are generous supporters of their local commu-nities in a variety of ways and continued this support over the past year. More than 85% of member respondents to the VAFI members 2017 survey contributed financial and in-kind support to the CFA, local sporting clubs and charities.

Employment 20,000 directemployees


Skills and Training The forest, fibre and wood products industry in Victoria is one of Australia’s largest and most diverse, providing a broad array of career opportunities in a range of roles. Moving into the future the industry will need to have a highly skilled, stable and engaged workforce. It will be the industry of choice for employees. The sustainability of the industry is reliant upon a new generation of young workers joining the workforce, bringing with them innovative ways to increase productivity and expand operations.

Currently, the skills and training sector is undergoing a range of changes, all of which has been tied up with regulations, and is not efficient in any capacity. The industry is frustrated and falling behind in skills and training. Skill shortages in the Australian forest, fibre and wood products industry continue to be a concern. Working with industry, ForestWorks drafted a list of Victorian Skills Shortages in the Forestry and Furniture Design and Manufacturing sectors. High on the list are: forester, silviculture worker, truck drivers, saw doctor, wood machinist through to PLC engineer and paper and pulp plant operators.35

• Aregulatorytrainingenvironmentthatsupports industry and delivers training packages in a timely manner.

To further attract students to study forestry and other related courses, VAFI believes there is more room for the training to go directly to the person on site or in the field, and move away from traditional classroom style teaching. In addition, there is the need to widen the scope of forestry studies.

VAFI encourages the Federal and State Governments to work with industry in investing in the education and work experience of those working in the forest, fibre and wood products industry to address the skills and training needs of the sector.

Government has an opportunity to help shape the future of the industry by supporting the provision of training of young Australians and the re-training of older workers; to ensure industry has access to adequate levels of skilled labour and is attracting the skills needed for the bio-economy future.

To ensure a highly skilled workforce industry needs:• Unitsofcompetencythatreflects

industry demands;• Trainingthatmatchescurrentandfuture

demands for the industry;• Well-resourcedtrainingproviders;

ForestWorksForestWorks is an industry owned not-for-profit organisation offering skills development services for the forest, wood, paper, timber products and furnishing industries. With a mission to build the success of the entire industry by developing the capabilities and strengths of its people, their core focus is on skills development initiatives and programs that assist industry adapt to changing operating environments.

ForestWorks services include:• FOLSSkillsVerificationProgram• ForestryBetterBusinessProgram• Skillsstandardsandqualifications

development• Assessmentmoderation• Learningresourcesandtools• TrainingSkillsandDevelopment

Service (Tasmania)• Skillsadvice–forindustryand

government

Skills ImpactSkills Impact is a national Skills Service Organisation (SSO), funded by the Australian Government, to support the operation of Industry Reference Committees (IRCs). IRCs develop units of competency, skill sets and qualifications for use by industry and the vocational training and education sector.

Skills Impact provides support to the following IRCs for the forest, fibre and wood products industry:• ForestManagementand

Harvesting IRC• PulpandPaperManufacturingIRC• TimberandWoodProcessingIRC• TimberBuildingSolutionsIRC

Timber Training CreswickTimber Training Creswick, established in 1987, provides training for the forest, fibre and wood products industry.

The Timber Training Centre’s vision is to “be the pre-eminent centre providing a comprehensive range of training programs and services for the forest products industry in a flexible, responsive and cost effective manner.”

The centre is a unique facility in Australia featuring a modern, commercial scale sawmill, kiln drying facilities, modern wood machining facilities sponsored by Weinig Australia and a saw shop which opened in 2013.

Skills & Training

Sustainable Forest Management supports a range of environmental, social, cultural and economic values. It is important that forest management practices meet the high regulatory standards required in Victoria and are continually improved to reflect new knowledge, technology and values. The aim of sustainable forest management is to manage forests in a way that maintains their biodiversity, productivity and regeneration capacity.



Sustainability


Large high intensity bushfires are one of the greatest threats to biodiversity, timber values, water and other values in Victoria’s forests. Victoria has experienced three major landscape-scale bushfires since 2000, burning over three million hectares of land.

Forest Fire Management Victoria, whose aim is to reduce the risk and impact of

bushfires on Victoria’s parks, forests and other public land, includes staff from the DepartmentofEnvironment,Land,WaterandPlanning(DELWP),ParksVictoria,VicForests and Melbourne Water.

FFMV undertake planned burnings in parks and forests, both near communities and in remote areas. Since 1 July 2015,DELWPhasconducted437

planned burns, with a treated area of 180,958 ha.40

VAFI continues to contribute to the DELWPLandandFireManagementStakeholder Roundtable, providing feedback from the industry on fire management methods and gaining information from the Victorian Government and other stakeholders.

Fire management

Under the Country Fire Authority Act 1958, Large plantation owners in Victoria are required to fund and run Forest Industry Brigades (FIBs) if they have in excess of 500 ha of plantation within a 25 km radius. In 2015-16 there were 23 Forest Industry Brigades registered across Victoria.38 Generally, the owners

of the specific asset being protected provide much of the equipment and pay for staff members to attend. CFA sets standards, provides training and some equipment. Many of the forest managers are professional foresters with additional training in fire behaviour and backgrounds in forest fire fighting.

Forestry companies regularly attend callouts to fires on third party land and many take a shared responsibility view together with CFA, as advocated by the 2009 Victorian Bushfires Royal Commission.

Victoria’s forests (public and private) are managed within a Sustainable Forest Management System36 to meet the requirements of the Sustainable Forests (Timber) Act 2004 (Vic) including a wide range of instructions and controls to ensure the regulatory requirements are metbyVicForestsandDELWP.Internaland external audits are rigorously

undertaken to ensure compliance with the Code of Practice for Timber Production37, Management Plans, Action Statements and internal requirements.

Victoria’s criteria and indicators for sustainable forest management are consistent with the criteria defined through the 1995 Montreal Process38,

and complement the Framework of Regional (Sub-National) Level Criteria and Indicators of Sustainable Forest Management in Australia. The 45 indicators inform progress toward sustainable forest management. Performance against each indicator is reported on a five-yearly basis through Victoria’s State of the Forests Report.39

Industry contribution to fire management

Source: HVP Plantations Source: HVP Plantations

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Regeneration

27 VAFI Annual Industry Review 28

Source:Australian Bluegum Plantations

Regeneration is at the heart of sustainable forest management in

Victoria. Regrowing our forests after harvesting is a vital component

of industry operations. VicForests regrow the native forests

harvested to ensure that they can be enjoyed by future generations

of the public and sustainably managed by the forest management

leaders of tomorrow. Replacing the older, harvested forest with a

younger, growing forest ensures the maintenance of forest cover,

biodiversity and habitat across the landscape42. All commercial

forestry operators must comply with the Code of Practice for Timber

Production 201443 in order to fulfil their obligations to regenerate

harvested coupes. In 2015-16 VicForests regenerated 2,426

hectares of harvested areas. The majority was regenerated by seed,

with the rest planted by hand.44 VicForests aims to replicate

natural regeneration processes as closely as possible.

27 VAFI Annual Industry Review 28

BiodiversityConservation of biodiversity, and in particular threatened species, is vital for sustainable forest management. The Victorian forest, fibre and wood products industry is focused on ensuring forest conservation values are maintained in the forests in which it operates.

KoalasIndustry continued to lead on managing koalas during harvesting operations in 2016-17, particularly in bluegum plantations in Western Victoria. In early January 2017, the government announced changes to the koala management guidelines. It is now mandatory for bluegum plantation management companies in the Green Triangle region, whose operations may impact koalas, to apply for authorisation under the Wildlife Act 1975. Companies will alsoneedtodevelopaKoalaManagementPlan that meets minimum requirements thathavebeensetbyDELWP.VAFIcontinues to work with industry and the government on koala issues in the South West.

Forest Industry TaskforceThe Forest Industry Taskforce continued to meet in the second half of 2016, delivering a Statement of Intent to the government in lateDecember2016.

Leadbeater’s PossumLeadbeater’s Possum continued to be the subject of discussion in 2016 – 2017, with more than 600 colonies detected since 2014.InDecember2016,thegovernmentreleased ‘Supporting the Recovery of the Leadbeater’s Possum Progress Report‘. DELWPhasundertakenareviewofthe effectiveness of establishing timber harvesting exclusion zones around all new colonies of Leadbeater’s Possums. The review was released in early July 2017, and made recommendations to the Goverment,* including:

1. Continue the 200m Timber Harvesting Exclusion Zone prescription around verified Leadbeater’s Possum colonies.

2. Review how the exclusion zones are applied to reduce unnecessary indirect impacts on the timber industry while ensuring adequate protection for Leadbeater’s Possum.

3. Undertake further field studies to improve knowledge of Leadbeater’s Possum.

4. Further develop species models as the basis for improved forest planning and conservation management.

5. Review Timber Harvest Exclusion Zones and other existing Special Protection Zones in the Central Highlands to optimise for timber availability, protection for Leadbeater’s Possum, other threatened species, and other forest values.

6. Transition to landscape-scale planning for threatened species management.

*At the time of printing, government had yet to respond to the review.

CertificationForest certification has developed as a way of demonstrating the implementation of sustainable forest management practices. To have a forest certified as being sustainably managed, an audit is undertaken by an independent, third party certification body. The audit assesses the forest management practices of a forest manager or owner against the standard for certification. Both native forests and plantations can be certified.

VicForests is certified to the Australian Forestry Standard (aligned to the global Programme for the Endorsement of Forest Certification45, the world’s largest forest certification scheme), and undertakes surveillance audits every six months. Regulatory Forest Audit Program46 (“FAP”) audits,managedbyDELWP,arealsoperformed each year as well as internal audits conducted by VicForests.

More than 10.4 million hectares of Australian forest, including native forests and plantations, are AFS certified. More than 253 million hectares of forest worldwide is certified by schemes endorsed and recognised by the PEFC.47

The Forest Stewardship Council (FSC) continued to develop its National Standard for Australia and consulted widely on the third draft of the Standard, including the draft High Conservation Values (HCV) framework. There was a high level of interest in the process, with submissions from across Economic, Social and Environmental interests and productive discussion at the FSC annual meeting. The key issues of interest were: old growth forests, riparian protection, representative sample areas, sustainable yield, and industrial relations.48 The final draft of the Australian Standard has yet to be released.

2015-16 VicForests regenerated 2,426 hectares

The Victorian Association of Forest Industries (VAFI) is the peak body for the Victorian forest, fibre and wood products industry.

The forest, fibre and wood products industry in Victoria is a dynamic sector of the economy that uses wood - a renewable, biodegradable, recyclable product - to create materials for new homes, buildings and furniture, paper and fuel for green energy. VAFI represents the entire lifecycle of the forest, fibre and wood products industry, including forest growers, harvest and haul businesses, wood and paper processors, and associated businesses across both the native forest and plantations sectors.

The industry directly employs more than 20,000 workers and indirectly supports another 40,000 to 50,000 jobs. This provides a sustainable future for suburban, rural and regional communities across Victoria.

In a global economy VAFI continues to support local forest, fibre and wood products businesses, both in response to resource security and market access to the industry. VAFI continues to encourage greater uptake of productivity enhancing measures, including new technology, workforce skills and capabilities, industry collaboration and market support.

VAFI strives to protect and promote the forest, fibre and wood products industry’s commitment to Victoria’s economy and community, as well as its ongoing sustainability. VAFI works collaboratively with its members, industry stakeholders, the community and governments to achieve this goal.

Our vision is to ensure an economically, environmentally and socially sustainable future for Victoria’s forest, fibre and wood

products industry. In working towards our vision, value is measured through what we, our stakeholders and members achieve.

VAFI’s values include:• VAFI leads – it is the trusted voice for industry and its businesses• VAFIadvocates–itpromotesoutcomesthatimprovecapacity

to operate and grow• VAFInetworks–itcultivatesandmaintainsrelationshipsbased

on respect and cooperation• VAFIeducates–itcommunicateswithgovernment

and stakeholders• VAFIacts–itisprofessional,credible,andresponsivein

achieving the best possible outcomes

VAFI’s work includes:• RepresentingourmembersandtheVictorianforest,fibre

and wood products industry to all levels of government, the community, other agencies and organisations;

• Developingpolicy,inconsultationwithourmembers,andadvocating our position to support the future success of the forest, fibre and wood products industry in Victoria.

• Researching,analysingandadvocatingkeyindustryandrelated issues;

• Supportingmembersonworkplacerelations,trainingandeducation, occupational health and safety and environmental management issues; and

• Developingandmaintainingpartnershipsandcollaborationsfor continuous industry improvement.

About VAFI



Governance and stakeholdersMembershipVAFI members include organisations involved with forest, fibre and wood products processing, pulp and paper manufacturing, plantation growing and harvest and haulage.

Full membersAny person, firm or company who is or usually is an employer carrying on tree-growing, sawmilling or processing of timber, kiln seasoning of timber or independent harvesting operations in Victoria or adjacent areas.

Associate membersAny person, firm, partnership, company, corporation, association (whether incorporated or not) or unincorporated body involved in the forest, fibre and wood products industries.

Full MembersAllied Natural Wood ExportsArbuthnot SawmillsAustralian Bluegum PlantationsAustralian PaperAustralian Sustainable Hardwood (Until May 2017)Auswest TimbersBig Traffic AustraliaDindiSawmillFenning BairnsdaleHallmark OaksHVP PlantationsJacobs Creek ContractorsMidway LtdMontana Timber Holdings Pty LtdPF Olsen Pty Ltd (from January 2017)Powelltown SawmillsPyrenees TimberRadial TimberReid Bros TimberRyan&McNultySawmillsSouth West FibreWalker’s Sawmill

Associate MembersAEGibson&SonsBritton TimbersConway TransportDN&LJBlackwoodHallmark Oaks (Until June 2017)MJ&MJBradyP/LOrient ExportsPFOlsenPtyLtd(UntilDecember2016)Rubicon Cable CoStafford Logging P/L

ManagementThe VAFI Executive Committee is comprised of a President, three vice-presidents and three Executive Committee members. All Executive Committee members represent VAFI member businesses and as a body, they set the policy agenda for the Association and provide oversight of VAFI’s management activities. VAFI CEO, Tim Johnston, manages the Association on a day-to-day basis and is assisted by Jillian Roscoe, Manager Operations. All Policy issues are managed by Policy AdviserDrTimMorrissey,withpublicaffairsissuesandsocialmediamanagedbyNatalieKimber,Manager–Media&Communications. Contract staff provides IT, finance and HR and IR support.

Executive Committee MembersPresidentMichael Taylor, Midway

Vice PresidentsCraigDunn,AustralianPaperVince Hurley, Australian Sustainable Hardwoods (until May 2017)GregMcNulty,Ryan&McNultySawmillers

Executive Committee membersSimon Gatt, HVP PlantationsMalcolm McComb, Allied Natural Wood ExportsGeoff Proctor, Montana Holdings Pty Ltd

VAFI staffTim Johnston, Chief Executive OfficerJillian Roscoe, Manager Operations Tim Morrissey, Policy Adviser NatalieKimber,MediaandCommunicationsManager

VAFI Annual Industry DinnerAs the key industry event held in Victoria, the VAFI Annual IndustryDinnershowcasestheVictorianforest,fibreandwoodproducts industry and its importance to key government and political representatives and industry stakeholders. The dinner is an opportunity to continue to cultivate the strong ties with key stakeholders across all sectors, whilst recognising the hard work from everyone in the industry.The2016VAFIAnnualIndustryDinnerwasanotheroutstanding success. More than 240 government and political representatives, industry representatives, industry association representatives and media attended the event. Speakers included the Hon. Martin Pakuula MP, Attorney General, and Rachel Robertson.


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VAFI Awards


Economy Award (A) (Sponsored by First Super)Encouragement and recognition for significant innovative approaches that resulted in increased productivity, new value-added products or access to new markets for timber.

Fenning BairnsdaleFor significantly investing towards the future economy of Victoria’s Hardwood Timber Industry

Community Award (B) Encouragement and recognition for initiatives that contribute to the social and cultural wellbeing of regional communities

Arbuthnot SawmillsFor the contribution to the construction of the KoondrookWharf.

Sustainability Award (C) Encouragement and recognition for achieving significant improvements in business, health and safety or environmental sustainability.

Australian PaperFor their work to enhance the leadership and management skills of their people to provide heightened cooperation across the workforce for continuous improvement and sustainability of the business.

AwardsEach year, VAFI recognises those members who have gone beyond compliance and made strategic improvements in their business, helping to build and secure the future of the Victorian forest and wood products industry.The purpose, sponsor and recipient of each award in 2016 were:

B

A C


AcknowledgementsGPO Box 4320 Melbourne VIC 3001

T: +613 9611 9000

F: +613 9611 9011

The Australian made carbon neutral paper used in the 2017 VAFI Annual Industry Review is made with a mix of recycled waste paper and wood fibre from sustainably managed Victorian forests.

Source: Britton Timbers

printingone source

PrintingT C Printing20JellicoDrScoresbyVIC3179AustraliaT: +61 3 9763 8800www.tcprinting.com.au

Design&PrintManagementPix&WordzAdvertising2 Elphin Grove Hawthorn VIC 3122T: +613 407 322 527www.pixandwordz.com

The Victorian Association of Forest Industries (VAFI)

www.vafi.org.au

[email protected]

@VAFIOnline

facebook.com/VAFIonline

1 Victoria State of the Forests Report 2013 p.92

2. Updated employment figures to be officially released later in 2017 - Schirmer et al.

3 Sales and Service income in forest product industries = total wood products and paper + paper products, from ABARES

4 ABC Statistics - 2015-16 Wood Products & Manufacturing, 2014-15 Pulp, Paper and Converted Product Manufacturing. 8155.0 - Australian Industry 2015-16 - 26/5/17

5 Australian Forest and Wood Products Statistics: September and December Quarters 2015

6 Australian forest and wood products statistics: September and December quarters 2016 May 2017

7 VicForests via email 1 August 2016

8 VicForests via email 4 October 2017

9 VicForests via email 3 October 2016

10. VicForests Statistics 11/7/2017

11. VicForests Statistics 2016

12. VicForests Statistics 4/10/17

13 Australian forest and wood products statistics: September and December quarters 2015

14 Australian forest and wood products statistics: September and December quarters 2016 - overview report

15 Australian forest and wood products statistics: September and December quarters 2015

16 Australian forest and wood products statistics: September and December quarters 2016 - overview report

17 http://www.forestrystandard.org.au/

18 FSC Annual Report 2015






24. FSC Annual Report 2016

25 Australian plantation statistics 2017 update ABARES – 03 May 2017

26 VicForests Area Statement 2014

27 Victoria SFR 2013 p. 193

28. National Forest Policy Statement: A New focus for Australia’s Forests - December 1992

29. Department of Agriculture and Water Resources - Regional Forest Agreements - www.agriculture.gov.au/forest/policies/rfa

30 Climate Change Framework Discussion Paper 1: Jobs, Growth Skills and Innovation < http://participate.sustainability.vic.gov.au/climate-change-framework/documents>

31 Carbon Credits (Carbon Farming Initiative - Plantation Forestry) Methodology Determinations 2017 - Department of the Environment and Energy

32 Australian Forest and Wood Products Statistics - September and December Quarters 2016 (May 2017)

33 Victorian Food and Fibre Export Performance Report 2015-16

34. ‘Infrastructure Victoria Delivers Advice on Future Port Capacity 23/5/17

35 Draft Victorian Skills Shortages 2016; Forestry and Furniture Design and Manufacture

36 http://www.depi.vic.gov.au/forestry-and-land-use/forest-management/forest-sustainability/criteria-and-indicators

37 http://www.depi.vic.gov.au/forestry-and-land-use/timber-production/timber-harvesting-regulation/code-of-practice-for-timber-production

38 http://www.montrealprocess.org/

39 http://www.depi.vic.gov.au/forestry-and-land-use/forest-management/state-of-the-forests-report

40 http://www.delwp.vic.gov.au/fire-and-emergencies/reporting

41 Country Fire Authority Annual Report 2015-16

42 VicForests Sustainability Report 2015-16

43 http://www.depi.vic.gov.au/forestry-and-land-use/timber-production/timber-harvesting-regulation/code-of-practice-for-timber-production

44 VicForests Sustainability Report 2016

45 http://www.pefc.org/

46 http://www.depi.vic.gov.au/forestry-and-land-use/timber-production/timber-harvesting-regulation/monitoring-compliance-and-auditing

47 Australian Forestry Standard Limited Annual Review 2013-14

48 FSC Australia’s standards development group https://au.fsc.org/en-au/standards/national-standard-development/standards-development-group-01

Endnotes


Source: Radial Timbers

www.vafi.org.au

Industry Review 2017

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