issue 108

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AFS/01-10-01 www.forestrystandard.org.au By JIM BOWDEN INDUSTRY leaders have exited a rocky 2009 with plenty of optimism at the start of a new decade. Most companies surveyed are expecting better profits and sales in the first few months of the year, as confidence about Australia’s economic outlook grows. The expectations of timber traders are at their highest level in more than six years. As we enter 2010, the economy is rebounding, the credit markets thawing and the housing sector recovering. It is the International Year of Biodiversity, which is of critical interest to forest growers. The challenge before the Australian Government – as with world governments is striking the right balance between biodiversity while, at the same time, ensuring that the industry is able to increase timber production to provide shelter for a world population projected at nine billion by 2050. Threading through the optimism of Australia’s timber industry, however, are nagging concerns about the lack of skilled workers, higher interest rates, wage growth pressures, green building issues, forest agreements and resource security. But in the Year of the Tiger – and the year for federal and Victorian state elections – the timber industry is starting with a roar; east coast timber traders, buoyed by a nation- wide clamour for new housing, Advertising: Tel +61 7 3256 1779 Email: [email protected] ISSUE 108 | 18.01.10 | PAGE 1 6371 Cont Page 2 China’s wood appetite hots up • Little substance in climate change gabfest • International flavour for industry bus tour • TIS gives promise of strong future for Victorian forest industry • Dave Angus leaves Boral Timber ThIS ISSue Climate change a road industry must travel Big opportunities for forest industries in next decade Bring it on Industry set to roar in the Year of the Tiger as leaders prepare for challenging decade

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Advertising: Tel +61 7 3256 1779 Email: [email protected] 1issuE 108 | 18.01.10 | PAgE

AFS/01-10-01

www.forestrystandard.org.au

By JIM BOWDEN

INDUSTRY leaders have exited a rocky 2009 with plenty of optimism at the start of a new decade.Most companies surveyed are expecting better profits and sales in the first few months of the year, as confidence about Australia’s economic outlook grows. The expectations of timber traders are at their highest level in more than six years.As we enter 2010, the economy is rebounding, the credit markets thawing and the housing sector recovering.It is the International Year of Biodiversity, which is of critical

interest to forest growers. The challenge before the Australian Government – as with world governments – is striking the right balance between biodiversity while, at the same time, ensuring that the industry

is able to increase timber production to provide shelter for a world population projected at nine billion by 2050.Threading through the optimism of Australia’s timber industry, however, are nagging concerns about the lack of skilled workers, higher interest rates, wage growth pressures, green building issues, forest agreements and resource security.But in the Year of the Tiger – and the year for federal and Victorian state elections – the timber industry is starting with a roar; east coast timber traders, buoyed by a nation-wide clamour for new housing,

Advertising: Tel +61 7 3256 1779 Email: [email protected] issue 108 | 18.01.10 | Page 1

6371

Cont Page 2

China’s wood appetite hots up• Little substance in climate change gabfest• International flavour for industry bus tour• TIS gives promise of strong future for Victorian forest industry• Dave Angus leaves Boral Timber

ThIS ISSue• Climate change a road industry must travel• Big opportunities for forest industries in next decadeBring it on

Industry set to roar in the Year of the Tigeras leaders prepare for challenging decade

Advertising: Tel +61 7 3256 1779 Email: [email protected] PAgE | issuE 108 | 18.01.10 2

expect the uplift in sales experienced in late 2009 to continue well into 2010.And there will be no pussy footing as national and state producer organisations seriously confront – and cohesively attempt to resolve – crucial issues on all fronts in what will be their most challenging decade ever.

“There’s been a definite upturn in our markets, both domestic and international, but in a planning sense the next decade is going to be very important for

the industry,” chief executive of the National Association of Forest Industries Alan hansard told us.“We are at a new threshold with issues such as RFAs, climate change, carbon, plantation estates and environmental building specifications,” he said.“We have to seriously look at the policy foundations of the industry, like Vision 2020, in the context of population growth which will drive housing starts. We are facing a very different demand scenario as we assess future wood consumption out to 2040.“And the carbon life-cycle of trees will be another important ‘push’ for us.” Mr Hansard urged some caution on “the rhetoric” of the Green

Building Council of Australia and its acceptance of the AFS standard – “two points at best so there’s still a long way to go.”He said NAFI this year would be pushing for a review of organisations that imposed environmental specifications on wood and how they were possibly misleading the public.NAFI deputy chief executive Michael Stephens is optimistic about the prospects and opportunities for the forest industry over the next 10 years.“It will be an opportunity to provide further domestic value adding, job growth and innovation to an expanding industry,” he told Timber&Forestry enews (See

story, Page 13).“The taxation environment has facilitated rapid development in the plantation resource base in recent years. A secure resource base will help lay the foundation for industry growth and domestic value adding over the next decade.“With the right policy settings, the forest industry could generate an additional $19.2 billion worth of industry investment by 2020 with 4500 new direct jobs and an additional 81 million tonnes of carbon emissions abatement per year.“However, this will require a range of policy settings to enable the industry to take full advantage of the resource base and the favourable outlook for ‘climate-friendly’ wood products in a growing world economy.”Andrew Dunn, chief executive of the Timber Development Association, is confident 2010 will be a happier and more prosperous year for industry.“We’re very positive on this,” he said, speaking from TDA’s new all-timber offices at St Leonards (“no plasterboard walls here.”)“The timber trade in New South Wales has been in a deep trough for about four years but it’s finally coming out of this,” Mr Dunn said.“One challenge is the pent-up demand for housing in a sector that has been at least 20,000 homes short of requirements every year for four years.”In fact, Mr Dunn reckons the industry could be embarrassed by a shortage of timber, particularly flooring, that won’t satisfy the state’s new building growth.“This is starkly evident in the NSW public schools building program where the demand for timber flooring will exceed the

industry news

Cont Page 3

From Page 1

‘We have to look at industry policyin the context of population growth’

www.fwpa.com.aufor more information

www.fwpa.com.auwww.fwpa.com.aufor more information

Sawmills of every size will be able to improve their products and their profit margins by adopting the results flowing from the SWI program.

Email: [email protected]

Access to technical reports for Australian SawmillersFWPA’S CONTRIBUTION TO THE SOLID WOOD INITIATIVE (SWI) PROVIDES LEVY PAYING MEMBERS ACCESS TO PROJECT REPORTS AT NO COST

Alan Hansard .. new threshold for industry.

Andrew Dunn .. lot of positives in 2010.

Next decade will be an opportunity for further

domestic value adding, job growth and innovation to an

expanding industry

Advertising: Tel +61 7 3256 1779 Email: [email protected] 3issuE 108 | 18.01.10 | PAgE

supply.”More than 700 projects will be completed in NSW public schools over the next two years as part of the state’s $150 million Principals Priority Building Program. This is in addition to $878 million to be spent on building new and improving school facilities this financial year.On the positive side, Mr Dunn said a new state code of standards for compliance was cutting through the logjam of house renovation approvals.“If you are inside the envelope, you can get approval for that extension or extra room within 10 days using a certified authority or agency. But there are still a lot of regulations out there hurting the industry.”Mr Dunn said the acceptance of AFS forest certification by the Green Building Council of Australia had already resulted in an increased specification of timber by engineers and specifiers.

“Only just a few weeks after the GBCA decision on AFS, there was was a sudden re-awakening. At least two engineers who wanted to use timber but couldn’t find enough FSC certified products were about to specify alternative building materials, but quickly switched the projects back to a wood design, using AFS material.”Mr Dunn said Wood Council Australia, the umbrella group for major timber industry technical bodies, would gain more prominence in 2010.“As the technical arm aimed

at rationalising activities and preventing duplication, the council will be happy to fit within the framework of any national industry body.”Mr Dunn said this year’s Australian Timber Design Awards were well into the planning stage and he flagged announcement early this year of a new international wood promotion network.“TDA has been partnering this concept for about two years and it dovetails well with the Winter Olympics that start in Vancouver in February and feature some spectacular timber structures. Watch this space!”In Queensland, a decade of unprecedented population growth makes the state the barometer for national building activity. And although many timber merchants say they are still ‘flat out’ on orders in January, a chronic shortfall of 50,000 houses by the middle of next year is a real concern.The shortfall is likely to present the state with significant problems as demand continues to outstrip supply and first-home buyers risk being priced out of the market.Official figures from the Urban Development Institute of Australia show housing approvals dropped 25% on

average for the decade while net overseas migration – the big mover – is running at six times the rate of 1990 levels.Developers blame the imbalance on a council go-slow in approving land releases but

local governments insist there is enough land available to meet housing demand.The Queensland housing industry is facing a skills shortage of 16,000 workers this

From Page 2

industry news

Engineers switching to wood designafter gBCA decision on AFs standard

NSW industry could be embarrassed by a shortage of timber that won’t satisfy

the state’s new building growth program

Cont Page 10

Rod McInnes .. focus on sale of FPQ.

Phillip Dalidakis .. big elections year.

Peter Roberts .. more joy for merchants.

Advertising: Tel +61 7 3256 1779 Email: [email protected] PAgE | issuE 108 | 18.01.10 4

LOCKED in a 16-year down-cycle and ending the decade as the most dismal commodity performer, lumber is poised to become the crude oil of the new decade.It all depends, analysts say, on Chinese building codes and the financial mathematics of 150 million new kitchen tables.In one projection, the mass urbanisation of China over the next 10 years could see lumber prices soar by more than 300%, driven by a combination of unprecedented demand and the same flood of speculative money that gave the world $150 per barrel oil in 2008.However, recent clarifications to Chinese building codes have

stoked rejoicing.The new calculations about lumber demand come at the end of one of the commodity’s longest and worst bear markets

for a century.On the final trading day of 2009, when commodity performance for the past decade was totted up, lead, sugar, gold and copper

were unsurprisingly high on the list, having delivered huge returns in the region of 300%. Lumber lost 32% over the period.But lumber bear markets have always been followed by price rises above 100%. And, if the commodity is on the verge of a new bull run, the good news, Barclays Capital analysts say, is that the shortest upswing for lumber since 1900 lasted 12 years.Beleaguered Canadian lumber producers, writes David Watt of the Royal Bank of Canada, have long hoped for a catalyst that would raise demand for a range of wood products in

China’s wood appetite hots up asindustry moves to house millionsTimber framing codes key to market access

industry news

Cont Page 12

You can rely on EWPAA certified products

– other certifications are just not the same

EWPAAEngineered Wood Products Association of Australasia

Plywood House, 3 Dunlop Street,Newstead 4006, Queensland, Australia

Tel: 61 7 3250 3700. Fax: 61 7 3252 4769Email: [email protected]

Web: www.ewp.asn.au

They meet Australian standards that are tested, certified and

GUARANTEED

Look for these brands(EWPAA LVL producers)

Carter Holt HarveyWesbeam Pty Ltd

Juken New Zealand LtdNelson Pine Industries Ltd

British Columbia Minister of Forests Pat Bell (right) visits a school construction site in southern China where BC wood products and pre-fabricated timber frames are the main building components.

Advertising: Tel +61 7 3256 1779 Email: [email protected] 5issuE 108 | 18.01.10 | PAgE

20

10

feBruAry 2010 3-5: Australian International furniture fair Sydney Exhibition Centre, Sydney, NSW www.aiff.net.au

11: Timber Certification: Are you ready? Timber Merchants Association (Vic) industry breakfast. Venue: Hotel Bruce County, 445 Blackburn Road, Mount Waverley, just off the Monash Freeway. Time: 7.30-9.30am. Cost: $55 pp (members); $60 pp (non-members). Guest speaker: Kayt Watts, CEO, Australian Forestry Standard. Contact: Ingrida Matulis on (03) 9875 5000 or email [email protected] RSVP: January 28.

21-24: Green Cities Building Conference. Venue: Melbourne Conference Centre. A joint initiative of the Green Building Council of Australia and the Property Council of Australia. Contact: HI Event Management (07) 3210 1646 or [email protected] Program available at www.greencities.com.au

MArCh 20101-2: future forestry finance Conference. Novotel Brighton Beach, Sydney. Contact: 1800 125 388 (free call in Australia) or web sties www.fiea.org.nz or www.forestryfinanceevents.com

2-3: National Outlook Conference (ABAre) Canberra, ACT. www.abare.gov.au

5-17: Industry bus tour of Northern New South Wales. Contact: Karen Johnston at TABMA Queensland. Tel: (07) 3254 3166. Email: [email protected]

16-17: 4th Global Wood fibre Trade Conference, Sao Paulo, Brazil. Visit www.pulpwoodconference.com

21: World forestry Day

22: World Water Day

24-26: International Wood Products Association annual convention Miami Beach, Florida, USA www.iwpawood.org

25: Annual Timber Merchants Association charity dinner supporting the Burns unit of the royal Childrens hospital. Keynote speaker: Joe Helper, Minister for Agriculture and Forestry. Venue: River Room at the Crown Casino, Southbank, Melbourne. Cost (GST inc) including pre-dinner drink, 3-course meal and beverages: $165 pp (members); $175 (non-members). Payment no later than February 25.

Non-members who book a table of 10 will be eligible for member pricing of $1650. Bookings to Ingrida Matulis on (03) 9875 5000 or email [email protected]

31: International wood composites symposium and technical workshop 2010 Seattle, Washington, USA. www.woodsymposium.wsu.edu

APrIL 201015: Dubai International Wood and Wood Machinery Show Dubai. www.dubaiwoodshow.com

18-21: APPITA Annual Conference and exhibition/Pan Pacific Conference Melbourne. www.appita.com.au

MAy 201018: Victorian Timber Industry Supply Chain Seminar: Connecting the Pieces for

Business Success. Radisson Hotel, 380 William Street, Melbourne. Contact: Peter Roberts, Timber Merchants Association on (03) 9875 5000 or John Halkett, Australian Timber Importers Federation on (02) 9356 3826.

19-20: Wood Supply Chain Optimisation 2010, Bayview Eden,Melbourne, 6 Queens Road, Melbourne. www.vafi.org.au

21-23: Timber and Working with Wood expo, Brisbane Showgrounds, Fortitude Valley.

24-25: Wood Supply Chain Optimisation 2010, Rotorua, NZ.

www.vafi.org.au

JuNe 20103-4: AfCA Conference and Trade expo, Novotel Resort, Coffs Harbor, NSW. www.afca.asn.au

18-20: Timber and Working with Wood expo, Sydney Entertainment Centre, Sydney.

June 28-July 2: 18th Commonwealth forestry Conference, Edinburgh, Scotland. www.cfc2010.org

JuLy 201014-18: Interforest 2010 Trade fair for forestry Technology Munich, Germany. www.interfrost.de

21-22: Wood energy 2010 - reducing energy costs and improving energy efficiencies. Rotorua, NZ.

26-27: Wood energy 2010 (World reducing energy Costs & Improving energy efficiencies) Melbourne.

events

National Association ofForest Industries Ltd

(Est. 1987)PO Box 239,

Deakin ACT 2600Tel: (02) 6285 3833.Fax: (02) 6285 3855

Web: www.nafi.com.au

SUSTAINABLE.RESPONSIBLE.

The NationalAssociation of Forest

Industries (NAFI)is striving for an

ecologically sustainableAustralian societyachieved through

dynamic,internationally

competitive forestindustries.

NAFI’s mission is torepresent the interests

of members bypromoting theenvironmental

sustainability andthe prosperity ofAustralian forest

industries.

WHAT’S ON?

Advertising: Tel +61 7 3256 1779 Email: [email protected] PAgE | issuE 108 | 18.01.10 6

WIDELY experienced timber industry identity Tim Evans has been appointed Australian representative for Visdamax (M) Sdn BHd, a Malaysian-based manufacturer of timber drying systems and boiler equipment.Specialising in turn-key projects, Visdamax produces a complete range of equipment including burners/incinerators and electrical power generation plants.Mr Evans brings 40-plus years’ experience in the timber industry in Australia and the Pacific Islands region.Visdamax have been a leading supplier to projects in Southeast Asia, Japan and, more recently, to the burgeoning Siberian timber Industry. Many repeat orders have been supplied to satisfied clients as their businesses have expanded over the past 17 years.As a single entity, the company has the ability to supply turn-key projects involving fuel handling and storage, burner/incinerator, boiler/heat exchanger, power

co-generation and complete timber drying systems including low and high temperature and vacuum kilns. Located at the Kulim Industrial Estate at Kedah in West Malaysia, the modern Visdamax factory has manufactured products to exacting International standards since 1993 and offers independent certification.

Tim Evans .. marketing timber drying systems and cogen plants.

industry news

Advertising inquiries

ph: +61 7 3256 1779

Visdamax appointsTim Evans Australiansales representative

FsC extends time for commenton high conservation frameworkFSC Australia has extended the period for comment on the proposed framework for assessing high conservation values in Australia until the end of February. The Framework for Assessing High Conservation Values in Controlled Wood Risk Assessments was drafted

by a technical committee comprising experts nominated by FSC’s social, economic and environmental chambers. The controlled wood risk assessment team completed the draft in September. The proposal can be downloaded from the FSC Australia website. Contact: [email protected]

Advertising: Tel +61 7 3256 1779 Email: [email protected] 7issuE 108 | 18.01.10 | PAgE

VICTORIA’S Very Large Aerial Tanker has been given immediate approval to be operational for the current fire season.

The water bomber can hold 45,000 litres of water or 42,000 litres of retardant and can lay a continuous line of retardant or water 30 m wide for 1.2 km.

The DC10-30 aircraft joins the Elvis and Elsie Erickson skycranes, which are capable of dumping up to 9000 litres of water or fire retardant.Premier John Brumby has welcomed 15 forest firefighters from the US and Canada who have arrived to boost the state’s fire-fighting capacity. They join 700 seasonal firefighters, 2700

Department of Sustainability fire staff and 59,000 Country Fire Authority volunteers, including 3100 who have joined since the Black Saturday fires.“There has never been a greater effort to make our state as fire-safe and as fire-ready as possible and while Victoria already has very skilled CFA and DSE fire fighters, we know we

can benefit from working with international experts through the sharing of knowledge,” Mr Brumby said.“Our Government and fire agencies have been rolling out new measures and improvements to better protect Victorians and our emergency services are backed by a record budget.”

THE head of one Scandinavia’s biggest exporters of sawmilling machinery and equipment has joined the timber industry bus tour of Northern New South Wales.Hans Jansson, managing director of UJ Trading in Sweden, swells the tour tally to 47 participants who represent a wide diversity of industry interests in Victoria, New South Wales, Queensland and New Zealand.The industry tour from March 15 to 17 will visit hardwood and plantation pine sawmilling operations, kiln drying and floor production, plywood manufacture, hardwood pole treatment facilities and forest operations in the Murwillumbah, Grafton and Lismore regions.UJ Trading at Gusselby, Sweden,

is a supplier of new and used sawmilling equipment and part of the Moelven Group, Norway’s largest wood processing group that operates more than 20 sawmills in Scandinavia.Mr Jansson will be a guest of John McLachlan of Skookum Technologies Ltd, Auckland, NZ, who is also joining the tour.“The response to our second industry bus tour has been nothing short of fantastic,” the instigator of the event Don Towerton said.“Attendees represent all industry sectors – forestry, sawmilling, manufacturing, wholesale merchants, specifiers and engineers.”The tour itinerary includes Ford Timbers, Urbenville, Boral Timber, Murwillumbah, Grafton and Kyogle, Tarmac Pine,

Rappville, Big River Timbers, Grafton, Koppers Wood Products, Grafton, and Forest Enterprises Australia, which has more than 32,000 ha of plantations under management in Northern NSW, southern Queensland and Tasmania with a growth target of 50,000 ha.Coach ‘captains’ for the tour include Colin MacKenzie, Timber Queensland’s timber application and use manager, Bill Kranenburg, formerly of Kranenburg International Timber Training, John Macgregor-Skinner, Private Forestry and Resources Industry and Investment NSW, Don

Towerton of Thora Wholesale Timbers, Norm Forbes, formerly of Hyne, Karen Johnston, TABMA Queensland, John Muller, formerly of Tasbeam, and Jim Bowden, Timber&Forestry e-news.

The tour supports Brisbane Hoo-Hoo Club 218 children’s charity projects and has been supported again this year by TABMA Queensland and Timber Queensland.

A number of seats are still available so interested parties should contact Karen Johnston on (07) 3254 3166 or email: [email protected]

events

international flavoras industry bus tournears ticket sell-out

Checking the program at Timber House .. Colin MacKenzie, Karen Johnston and Don Towerton (seated) and Jim Bowden, John Muller and Norm Forbes.

Aerial water bomber ready for take-off to fight Victoria’s forest fires

Advertising: Tel +61 7 3256 1779 Email: [email protected] PAgE | issuE 108 | 18.01.10 8

WHILE a number of news reports and activists hailed a positive outcome for the world’s forests at the negotiations at the United Nations Climate Change Conference last month, the decisions at Copenhagen will not have a significant impact upon forested nations in the immediate future.“This is a far cry from the Green ambitions for the conference,” says Alan Oxley, managing director of trade and environmental strategies group ITS Global.“Green campaigners had hoped that binding commitments from developing countries would prompt REDD schemes (reduced emissions from deforestation and forest degradation) and an injection of billions of dollars of public and private money into forest conservation projects in the developing world.“The newly-minted ‘Copenhagen Accord’ is not legally binding; countries can sign up to it (or remove themselves) as they please. It merely mentions the need for implementing REDD and calls for finance for developing countries to address deforestation.“REDD, however, remains yet to be adopted by the UNFCCC [United Nations Framework Convention on Climate Change].”The two-week event which attracted 15,000 delegates (90 state, federal and local government politicians from Australia alone) yielded little substance. Negotiators agreed to continue negotiating. Green campaigners expressed disappointment with the lack of outcome, and the world’s leaders attempted to make the best of a difficult negotiating environment.The negotiations for longer-

term, legally binding ‘post-Kyoto’ commitments made slow progress, Mr Oxley observed.Despite public comments that the group working on forestry and land-use was making headway, much of the negotiating text is still up for grabs, and it is very much dependent upon the progress of other negotiating groups.The inclusion of sustainable forest management in REDD can almost be considered a certainty. It is considered equally as a means of mitigating greenhouse gas emissions as avoided deforestation and afforestation or reforestation. The trick, however, will be in the strings that are attached to any REDD funding.

These found their way into the negotiations through the adding of safeguards to the text in earlier negotiating sessions. The ‘no conversion’ safeguard – which would effectively prevent the conversion of forests to more productive uses – was objected to by a number of African states and removed, only to find its way back in after Green lobbying of European governments. The ‘no conversion’ safeguard is still in the text, but has not been agreed upon.

Mr Oxley believes the failure at Copenhagen was the result of fundamental divisions between the industrialised economies, which wanted formal commitments from China and India and other major developing countries to reduce emissions and the outright rejection of that by those developing countries.“This means that no binding

global commitments to reduce emissions are foreseeable,” Mr Oxley said.“Without that there cannot be a globally regulated system of emissions trading and thereby the grand global system upon which the original REDD idea was based (developing countries would be able to secure significant income from selling carbon credits into this global scheme) remains a pipe dream.”Outside the media circus surrounding the release of the Accord, one decision was approved by the UNFCCC that will affect forestry and economic development.SBSTA, the UNFCCC body that directs scientific and technical advice for the Secretariat, approved a way forward on methodological issues surrounding deforestation.“There are no commitments to curb deforestation or any other similar actions,” Mr Oxley said. “There is, however, a request that developing countries undertake work that will:• Identify the drivers of deforestation and forest degradation and how to address them.• Identify activities which will reduce emissions, increase carbon removals and stabilise carbon sinks.• Use the IPCC guidelines as an appropriate basis for estimating forest-related emissions.• Establish transparent monitoring and reporting systems.“On the surface, this doesn’t seem like much. Numerous developed economies – particularly Norway – have outlaid large sums for ‘REDD readiness’ programs through aid agencies, which will provide similar information on forest

copenhagen

Little substance in climate gabfestForest industry negotiations ‘still up for grabs’

Frustration, indecision at climate change talks.

Cont Page 9

Alan Oxley .. strings attached to REDD funding.

The inclusion of sustainable forest management in reDD

can almost be considered a certainty. It is considered

equally as a means of mitigating greenhouse gas emissions

as avoided deforestation and afforestation or reforestation

Advertising: Tel +61 7 3256 1779 Email: [email protected] 9issuE 108 | 18.01.10 | PAgE

stocks. Pressure to implement either REDD-readiness or respond to the UNFCCC request – with the promise of aid dollars attached – is likely to continue.”Half way through the conference, a number of developed economies – Norway, Australia, France, Japan, and the US – announced that they would assemble $US3.5 billion of REDD finance for the next three years, from 2010 to 2012.Yet the statement released by all countries on how and where the funding will be spent or even approved is vague at best.The US pledge of $US1 billion has come from the US Department of Agriculture, not USAID, the US aid agency. Similarly, the Australian statement on the pledge refers simply to pre-existing programs.Interestingly, the US statement on the fund featured glowing testimonials from US-based NGO The Nature Conservancy

and Gabon’s president. One NGO campaigner said publicly that, “The US announcement was timed to influence the tropical forest negotiations at a critical point”.

Yet the pledge, particularly from the US, may ring hollow. The $US1 billion that the US has put up will require approval through the US Congress. Getting a sum that large past a US public that is becoming increasingly sceptical of the current administration’s spending initiatives will be difficult at best. The US has committed more than $275 million to the protection of tropical forests this financial year.

The business presence of forest-based industries at Copenhagen was muted compared with previous years. Representatives from the industry in Brazil and Europe were visible, but few industry representatives were putting forward their case.

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industry news

us commits $275m toprotect tropical forestsFrom Page 8

Dave Angus leavesBoral Timber tojoin Hettich groupWELL-KNOWN timber identity Dave Angus has left the industry. He has resigned as marketing manger for Boral Timber and vacates his recent appointment as chairman of the Timber Development Association.South African-born Mr Angus this month takes up the position of marketing manger Australia and New Zealand for Hettich, one of the world’s largest producers of fittings for the kitchen, cabinet and building industry. His new role will see him continue a close

association with engineered wood products.Hettich’s history goes back to German inventor Karl Hettich who found a better way of making parts for cuckoo clocks and set up a small company in the Black Forest in 1888. Today the Hettich Group employs around 5500 people worldwide and generates annual turnover of more than 700 million euros.Sydney-based Robyn Barnes has taken charge of Boral Timber’s marketing operations.

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financial year with a national gap of up to 65,000 by 2012.The Housing Industry Association says the industry lost more than 4000 building apprentices in the financial crisis and fewer people were taking up a career in any of the critical trades.With about 190,000 dwellings a year required to meet underlying demand for housing, the residential construction market is almost certainly going to face a skills crunch.Chief executive of Timber Queensland rod McInnes says the big issue, in a general sense, is where the economy is going in relation to interest rate movements.“Our members were busy up until the Christmas break and are still going well. But the Rudd stimulus money had been spent or made available, so we hope there’s no slow down in the new year,” he said.“Looking at long-term economic processes, the country is in good shape. From a specific Queensland point of view, the sale of Forest Plantations Queensland is the big issue in 2010. We expect the Government to have at least its first cut of buyers by the end of January.”Expressions of interest in the

sale have been received from the Hancock Timber Resource Group, based in Boston, USA, and Global Forest Partners, one of the largest timber investment management organisations with a diverse $US2.1 billion global portfolio of closed-end commingled timberfunds.Australian producers and plantation owners are not likely to be major players in any deal the state makes on the sale of its 203,000 ha softwood and hardwood plantation estate.“They have enough on their plate without chewing off another half million dollars on forests out there,” Mr McInnes said.He said the understanding was that the Queensland Government was not selling the forest; it was providing a 99-year lease with conditions – that the land can only be used for forestry and that the buyer must re-plant and harvest the resource and provide timber to the state’s wood processsors.“The Government is going to insist that there are some significant caveats on the deal and that the buyer won’t be able to simply harvest the logs and sell them all off to anyone it chooses.”Alied to this, Mr McInnes said the state was about 80% self-sufficient in timber, but without

a significant planting program, this would drop to 60% by 2030.“The questions for industry in Queensland are will it remain a significant producer of timber products or become part of a bigger global market where there is some processing but not as much as in the past?”An industry-confident Philip Dalidakis, chief executive of the Victorian Association of Forest Industries, said key state issues for industry in 2010 included:• The federal and Victorian state elections: “We must be sure there are no adverse election policies that impact on our industry.”• The Timber Industry Strategy: “This must be implemented as quickly as possible.”• Standards: “We must keep a watchful eye on standards and codes and environmental regulations and their impact on our members and the industry at large.”Mr Dalidakis said thankfully there had been no real major forest fire outbreaks so far this year despite the most extreme temperatures. “There has been good rain and this is a concern as it will promote heavy vegetation growth (fuel) under tree canopies. It’s a powder keg out there.

“We pray that when we have this conversation in March, there have been no serious fire outbreaks.”Mr Dalidakis said the Victorian bushfire royal commission proceedings were continuing and the subjects of forest and fuel management would be reviewed in February-March.Acceptance of the Victorian Timber Industry Strategy has shone a bright light over the state’s $3 billion timber industry, according to Peter roberts, executive director of the Timber Merchants Association.“We believe there will be more joy for merchants in the year ahead; 2009 finished well and federal stimulus packages have helped the building sector,” he said.“The big merchants are very busy with new home builders and there’s a lot of confidence out there.”He said this was reflected partly in the growth of TMA membership which had grown from 47 to 81 members in recent months.“We’ve still got to get the industry talking together as one, and there are encouraging signs that 2010 will see a more united industry approach to the challenges of the next decade.”

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skills shortage gap: 65,000 workersFrom Page 3

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RELEASE of the Victorian Government’s 2009 Timber Industry Strategy (TIS) on December 18 was a great pre-Christmas gift for an industry that contributes in excess of $3 billion to the state economy and supports more than 32,000 jobs.“Development of the strategy has been a long time in the making and the Government must be praised for the extensive investment of time and energy that has been put into it,” the chief executive of the Victorian Association of Forest Industries Philip Dalidakis said.Key policy issues arising from the strategy include:• Providing industry with the ability to secure timber resource for up to 20 years, supplying much needed long-term certainty for new and increased capital investment and bringing Victoria into line with other jurisdictions.• Introducing 40-year working forest plans, underpinned by legislation addressing the uncertainty around the long-term commercial operations of VicForests in working forest areas and underpinning the long-term sale of timber resource.• Strengthening industry confidence that changes in State Government policy that affect timber supply are not afforded force majeure status.• Acknowledging timber plantations as an ‘as of right crop’ and that rural landowners are the most appropriate people to determine the best use of their land.• Streamlining plantation planning regulations, ensuring that timber plantation operations that comply with the ‘Code of Practise for Timber Production 2007’ will not be required to apply for planning permits in Farming and Rural Activity Zones as is already the case with other crop types.• Committing to implement Action 2.20 under the ‘Securing

Our Water Future Togerther’, based on sound, reputable evidence and science and ensuring any policy response must be equitable and consistent with other agricultural land uses.• Encouraging renewable energy investment across the industry by supporting a change in Government policy that native timber wood waste is now eligible for accessing renewable energy certificates;• Strengthening Victorian Government procurement practises to recognise international third party certification schemes as providing best practice in sustainable forest management and that any agency or organisation that receives funding from the Government that has an inconsistent policy with this will receive no funding or endorsement from them.“The release of the TIS, was a clear indication by the Victorian Government that the timber industry had a strong future and Joe Helper should be applauded for his extensive work and ongoing commitment to the industry,” Mr Dalidakis

said.“The TIS is a necessary step forward if our industry is to grow and attract investment and this is a clear sign from the Government that our industry will continue to provide a vital role throughout Victoria,” he said.Mr Dalidakis acknowledged the efforts of the former Sustainable Timber Industry Council, chaired by Christian Zahra, former federal member for McMillan, which provided a strong framework for the strategy to be based around.A key issue for Victoria’s native forest and plantation industry is the maintenance of international cost competitiveness. Like other state industries, Victoria is increasingly exposed to international market competition. The initiatives should improve cost competitiveness through improvements in allocative efficiency.However, cost competitiveness can only be maintained in the longer term if the industry has access to a secure and growing resource base, so economies of scale can be maintained.

Philip Dalidakis .. strategy good news for $3 billion industry.

Christian Zahra .. provided strong policy framework.

industry news

Tis the reason to be jollyTimber strategy greatChristmas gift underthe trees for Victoria

Breakfast toserve upcertificationTIMBER certification will be the theme of a networking industry breakfast in Melbourne next month.The topic has gained added interest with AFS and FSC forest certification now both acknowledged by the Green Building Council of Australia.Chief executive of Australian Forestry Standard Kayt Watts will be a keynote speaker at the breakfast forum on February 11 organised by the Timber Merchants Association Victoria.“With Government endorsement of timber certification and the growing prominence of the GBCA, it is important all members are aware of the processes in place and the impact certification will have on their timber sales,” TMA chief executive Peter Roberts said.TMA’s Emma Watt will bring members up to date on OH&S management systems and the services offered at competitive rates.Costs for the forum and full breakfast are $55 pp (members) and $60 pp (non-members). Inquires should be directed to Ingrida Matulis on (03) 9875 5000 or email [email protected] TMA represents businesses from the merchant, wholesale and manufacturing sectors of the industry and provides secretarial/industrial services for the Victorian Timber Importers Association

Advertising: Tel +61 7 3256 1779 Email: [email protected] PAgE | issuE 108 | 18.01.10 12

China and crack open this huge market.This breakthrough appeared to come from Shanghai, where, two months ago, the local government issued “the most comprehensive and detailed code for wood-frame structures in China”.The new code, which sweeps away much vaguer guidelines, in effect allows Chinese building needs – the titanic construction effort associated with accommodating 20 million people every year moving from rural China to the cities – to be met by modern wood-frame construction.Lumber products, particularly those made in Canada and Russia, may now be in hot demand as a cheaper way of putting up new housing.

The Chinese national budget has set aside $US141 billion for the production of 20 million sq m of affordable housing by 2012.“We had cheekily said Canada was moving from a nation of hewers of wood, drawers of water and assemblers of motor vehicles, to a hockey-mad nation of bankers, insurance adjusters and real estate agents,” Mr Watt wrote.

“That might have been premature; lumber might be the next decade’s oil.”Within Canada’s lumber industry, there are suggestions that exports to China could

soar by 100% over 2009 levels, which were themselves double those of 2008.China already has a huge supply shortfall of wood, and analysts see that continuing at the level of about 160 million cub m a year for at least another decade.China’s consumption of wood, forestry analysts say, is already “incredible” and well above the world average.“China’s insatiable appetite for wood products is driven by its growing population, strong economic growth and growing export markets for the wood it produces,” says John Chu, an analyst with Research Capital Canada.But most believe that even more significant change is on its way. About 60% of Chinese do not live in urban areas, but that is expected to fall to 40% by 2030.As 20 million people move to cities each year, residential construction will boom, and so, too, will demand for new furniture – the hundreds of millions of kitchen tables, chairs, beds and drawers implied by mass migration.Peter Ruschmeier, a basic materials analyst with Barclays

Capital, said that lumber futures had surged suddenly between October and November, though the cash price had yet to catch up.Rising potential demand in China and historically lean inventories are driving the spike. Some models suggest that the lumber price could trend towards a high more than 300% above its 2009 low.“While this is not our forecast,” Mr Ruschmeier said, “we believe it offers food for thought.”China continues to be the fastest growing major economy in the world with real GDP and a burgeoning middle class estimated at 130 million and growing by 20-30 million each year. As a result, China’s consumption of wood and paper products is growing quickly, and the country has become the second largest import market for wood in the world after the US.

The BC and Canadian wood sector is believed to be about three years ahead of the competition in the Chinese market which offers more long-term opportunities, particularly in multi-family, multi-storey buildings and in hybrid (wood/concrete) buildings, than short-term returns.Forestry Innovation Investment, an agency of the Government of British Columbia, in partnership with Canada Wood, has established a strong presence in China. Based in Shanghai, FII has opened a demonstration site to showcase advanced wood-building techniques. [Story with extracts from Times Online].

industry news

From Page 4

The Chinese national budget has set aside $uS141 billion

for the production of 20 million sq m of affordable

housing by 2012

A titanic construction effort is associated with

accommodating 20 million people every year moving

from rural China to the cities

British Columbia Premier Gordon Campbell examines a model of the Dream Home China presentation centre, the centrepiece of a $12 million project to promote BC wood products in Shanghai and train Chinese designers, architects and builders in the application of wood-frame construction using BC wood and building techniques.

Canadian wood sector three years aheadof the competition in the Chinese market

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FOR more than a decade the National Forest Policy Statement has set the broad policy framework for the industry’s future, primarily through the Regional Forest Agreements (RFAs) and Plantations for Australia 2020 Vision.While the RFAs have come at a substantial cost to industry and timber communities through the establishment of a world-class forest reserve system and withdrawal of native forest areas previously available for timber production, the RFA principles of resource security and long-term certainty for industry investment are critical to the realisation of the industry’s potential and future.

Furthermore, the taxation environment has facilitated the rapid development in the plantation resource base in recent years. A growing and secure resource base will help lay the foundation for industry growth and domestic value adding over the next decade. With the right policy settings, the Australian forest industry could generate an additional $19.2 billion worth of industry investment by 2020 with 4500 new direct jobs and an additional 81 million tonnes of carbon emissions abatement per year.These investments include such major projects as the next generation Bell Bay pulp mill in Tasmania and planned expansions in sawmilling, harvesting and export operations across the nation.However, this will require a range of policy settings to enable the industry to take full advantage of the resource

base and the favourable outlook for ‘climate-friendly’ wood products in a growing world economy. These settings include such fundamentals as: the provision of ongoing resource security through evergreen RFA arrangements and equitable and transparent land use planning processes for plantations (particularly water policy); the maintenance and development of effective taxation and other financial mechanisms for long and short rotation plantation investment;

and the development of practical and commercially attractive rule sets for forestry under international and domestic climate policies.Climate change represents a significant opportunity for the forest industry; the industry can assist in the transition to a low emissions future through the carbon stored in growing forests, the carbon stored in durable wood products and substitution for more emissions intensive building materials such as steel and concrete and

the green energy from wood wastes to offset emissions from fossil fuel based energy.

It is important that climate policies facilitate rather than distort these real opportunities.

The growth in internationally recognised forest certification schemes will also contribute to greater market access for Australian timber products in domestic and export markets. The industry will need to work collaboratively with certification providers and consumers to meet these growing market expectations.

NAFI believes that the relationship between the forest industry, governments and the broader community has also matured over the past decade; it is no longer so deeply based on polarised views of ‘conservation versus timber harvesting’.

Sustainable forest management is increasingly recognised as providing a range of economic, social and environmental benefits from a landscape perspective, particularly when such land management issues as fire and climate change are taken into account.

Growth in plantations in regions such as the Green Triangle and southwest Western Australia has also fostered an appreciation of the economic and social benefits from forestry in rural landscapes. However, the opportunities for industry growth and development over the next 10 years still contain regulatory and political challenges and will continue to require strong leadership from industry. It will be a time to strengthen the policy foundations such as the RFAs and Plantations 2020 Vision and build a more internationally competitive and value added focused industry.

Next decade big stride for industryopinion

The National Association of forest Industries is optimistic about the prospects and opportunities for the forest industry over the next 10 years. It will be an opportunity to provide further domestic value adding, job growth and innovation to an expanding industry, says deputy chief executive MIChAeL STePheNS in this special report.

The growth in internationally recognised forest

certification schemes will contribute to greater market access for Australian timber

products in domestic and export markets

Sustainable forest management provides a range of economic, social and environmental benefits.– A3P photo

Advertising: Tel +61 7 3256 1779 Email: [email protected] PAgE | issuE 108 | 18.01.10 14

THE climate meeting in Copenhagen was supposed to be the culmination of the negotiation road and result in a replacement internationally binding agreement for the Kyoto Protocol. This goal was not achieved and in its absence negotiators agreed to pave another new negotiation path to Mexico City and the hope of a legally binding treaty at the end of the year.The attempt to obtain a legally-binding treaty at Copenhagen was genuine with more than 100 heads of state ensuring that no one had any delusions about the seriousness of the negotiations. However, in short, there were too many issues to work through in such a short time frame.Even the last minute attempt by US President Obama to break the logjam through the development of the ‘Copenhagen Accord’ was unsuccessful. The accord attempted to broker an agreed outcome on the three key issues creating impasses in the negotiations: emission targets, financing of emission reduction activities by developing countries and monitoring, reporting and verification.On the issue of targets, the accord established an objective to keep the rise in global temperature to below 2 deg. Celcius, and to peak global emissions as soon as possible. With respect to financing emission reduction activities in developing countries, the accord sought commitment of $US30 billion for 2010-12 and $US100 billion by 2020 – to be administered through the Copenhagen Green Climate Fund. Monitoring, reporting and verification of emissions reduction activities was addressed through a two-year communication process. Economy-wide emissions reduction targets for developing countries and mitigation action by developed countries are to

be registered by signatories of the accord by February 1 this year.In the dying hours of the conference, the parties agreed to recognise the ‘Copenhagen Accord’ as a non-legally binding ‘information’ document outlining actions undertaken by those countries wishing to be signatories to it – initially around 30 countries, including Australia. In addition, commitments were made to continue work toward a legally binding treaty for agreement in Mexico City.

So what does this mean for forestry issues?From the outset it was clear that discussions on forestry

and the rules for the treatment of managed forests and harvested wood products were inextricably linked to the broader issues of national targets and carbon offsets.These issues that the forest industry delegation has been working on are still on the post-Kyoto negotiation table. Given our domestic climate policy situation this is critically important as our domestic policy is likely to reflect the rules of any new post Kyoto treaty.The recognition of carbon stored in wood products and the treatment of natural disturbances such as bushfires, are included in the land use, land use change and forestry (LULUCF) and reduced emissions from deforestation and degradation (REDD) parts of the negotiations. These aspects will hopefully be decided at Bonn in June or at Mexico City. There is considerable work still required to achieve a practical

outcome for industry, requiring technical effort and continued close working arrangements with the Australian negotiators and other industry bodies and groups.On reflection, it may be fortunate that an agreed position was not obtained at Copenhagen and delayed to a later date. Many who attended the Kyoto Protocol meeting in 1997 convey stories of last-minute trades being made in order to finalise the agreement, to the detriment of some industries.

This is a situation we must avoid if we are to maximise the real opportunities for forestry activities to contribute to climate change mitigation strategies.There are elements of the Copenhagen meeting that are worth forgetting, such as the long waiting hours in queues in sub-zero temperatures. However, there are elements that are worth remembering.The first is the position the forest industry has gained on key issues such as recognition of carbon in wood products. The second is the constructive working arrangements the Australian forest industry delegation now have with the Australian negotiators, other country negotiators and organisations such as the International Chamber of Commerce (ICC) and the International Council of Forests and Paper Associations (ICFPA).The international climate change negotiation road is a long and often difficult road to navigate. However, for the longer-term interests of Australia’s forest industry it is a road we have to take.

Climate change: road best travelledopinion

Special report by ALAN hANSArD, chief executive, National Association of forest Industries, who attended the united Nations Climate change talks in Copenhagen last month.

forest industry gained on key issues such as

recognition of carbon in wood products

Managed forests and harvested wood products were inextricably linked to the broader issues of

national targets and carbon offsets

The international climate change negotiation road is long and often difficult to navigate.

Advertising: Tel +61 7 3256 1779 Email: [email protected] 15issuE 108 | 18.01.10 | PAgE

TABMA Halloween night a howling successMORE than 200 ‘friends in industry’ kicked up their heels at a ‘monster’ dinner and dance at Brisbane’s Royal on the Park on Halloween Friday, October 31.More than anything – including an amazing magician and a hot dance band – the evening celebrated a unity among key stakeholders and executives from all sectors of the industry.

“It was an incredible night recognising not only the achievements of individual TABMA Queensland members, but the solidarity and resilience of our industry in a time when our unified voice is more critical than ever,” chief executive Karen Johnston said.‘Monster’ sponsors were Thora Wholesale Timbers, Timber Queensland, Tasman KB

and NTP Forklifts. ‘Mummy’ sponsors were Asian Pacific Timber Marketing, Gow Gates Insurance, DPR Hardwood (Ford Timbers), Tilling Timber, and AWX.Lucky door prizes went to Diane Dunshea of Manufacturing Skills (portable DVD player sponsored by Tilling Timber) and John Borg of Lindsay Meyers (Esky, sponsored by AWX).

TABMA Queensland has continued to expand its involvement in all areas affecting its members and has made great strides in the areas of management education and technical training. The organisation was established in 2001 due to an expressed need for a merchant-based member organisation in the Queensland timber industry.

Catching up at the TABMA Queensland’s Halloween dinner and dance are West Hill, West Hill Consulting, Brisbane, and Charlie and Heather Henry of Charlie Henry Enterprises Pty Ltd, Gold Coast.

Happy group at the TABMA (Qld) dinner are Wayne Norman, Wayne Norman Timbers, Alan Ford, Ford Timbers, Brisbane, Debbie Payne, Dindas Australia, Mal Gotham, Pacific Wood Products, and Rachel Fisher and John Menagh of Disprax Business Software Solutions.

Alicia Oelkers, TABMA Queensland, welcomes Gary and Diane Dunshea, Manufacturing Skills Australia, and Kersten Gentle, executive officer, Frame and Truss Manufacturers Association, Healesville, Vic.

Troy and Angie Baker, Peachester Timber, and Lynn and Dave Wuiske, Langs Building Supplies.

Jeannie Alamkara, Lifestye Trader, Gold Coast, meets up with Jenny Williams, Alan Jones, and Kyla Wood of Austbrokers Premier, Brisbane.

Luke Gaske, Ozline Timbers, and Pat Conduit and Melanie Hilcke, Hyne.

TABMA Queensland glamour Karen Johnston (chief executive) and Kelly Everett out front of the executive team, from left, Myles Forsyth, Forsyth & Romano Group, Mal Goatham, Pacific Wood Products, Keith Maitland, Tasman KB (TABMA Queensland chairman), Roger Healy, Simmonds Lumber. and Michael Gaske, Ozline Timbers.

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2010 Mill Tour 2010 Mill Tour NORTHERN NSW OPERATIONSNORTHERN NSW OPERATIONS 

INCLUDES GUIDED TOURS OF:*INCLUDES GUIDED TOURS OF:*

Boral Kyogle Kiln Drying & Floor Production

Tarmac Pine Rappville Plantation Pine Sawmilling

Big River Timber Grafton Plywood Floor Manufacturing

Koppers Grafton Pole Production & Testing

Boral Grafton Hardwood Mill

Forest Enterprises Australia Plantation

Boral Murwillumbah Overlay Flooring Production

Hyne Acacia Ridge Wholesale Operation

This is a Brisbane HooThis is a Brisbane Hoo--Hoo Club 218 initiative in Hoo Club 218 initiative in conjunction with TABMA Queensland & conjunction with TABMA Queensland &

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children’s charity.children’s charity.

Accompany industry personnel from across Australia and Accompany industry personnel from across Australia and New Zealand on a three day tour of Northern NSW New Zealand on a three day tour of Northern NSW timber industry operations.timber industry operations. Open to all industry sectors; forestry, sawmilling, Open to all industry sectors; forestry, sawmilling, manufacturing, wholesalers, merchants, specifiers, manufacturing, wholesalers, merchants, specifiers, engineers and architects. Attendees from our 2009 tour engineers and architects. Attendees from our 2009 tour reported what a fantastic educational experience the reported what a fantastic educational experience the tour was, and many benefited from the extremely tour was, and many benefited from the extremely unique networking opportunity it presents. The three unique networking opportunity it presents. The three days also provide a platform to discuss industry issues days also provide a platform to discuss industry issues crossing all sectors.crossing all sectors. The itinerary for both evenings hold scheduled The itinerary for both evenings hold scheduled presentations from guest speakers. presentations from guest speakers. Organisers and hosts for the tour include:Organisers and hosts for the tour include: Don Towerton (Thora Wholesale Timbers & Don Towerton (Thora Wholesale Timbers &

HooHoo--Hoo Club 218), Hoo Club 218), Karen Johnston (TABMA Queensland)Karen Johnston (TABMA Queensland) Colin MacKenzie (Timber Queensland) Colin MacKenzie (Timber Queensland) Norm Forbes (exNorm Forbes (ex--Hyne)Hyne) John Muller (exJohn Muller (ex--Tasbeam)Tasbeam) Bill Kranenberg, Bill Kranenberg, John McGregorJohn McGregor--SkinnerSkinner Jim Bowden (Timber & Forest EJim Bowden (Timber & Forest E--News)News)

Meeting point is Gunnersen Pty Ltd Brisbane Branch, Rocklea

2009 Mill Tour Learning of Plantation Practices

For reservation information contact Karen Johnston at TABMA Queensland. P (07) 3254 3166 or [email protected]

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