Farm Forestry New Zealand

Farm Forestry Timbers 

Specialty Timbers newsletter 26, November 2023

Farm Forestry Timbers are an industry body representing the interests of specialty timber producers and users in New Zealand. We support and advocate for locally produced timbers going into local markets for quality products. We represent all facets of industry – membership ranges from growers right through to designers and users of timber.

• Editorial
• Import Substitution Workshop
• Te Kotuku - Grants for Diversified Wood Processing
• Thermal modification progress

Editorial

I enjoyed Jonathan Harrington's recent workshop on import substitution, see below for more. However, as expected in the early stages of this project, nothing we didn't already know here at Farm Forestry Timbers came out of the workshop. Indeed, the challenges and conclusions were what we started with over ten years ago setting up NZ's only industry body representing specialty timber producers. Growers set up Farm Forestry Timbers because we recognised the lack of a clear route path through to customers, and that we needed to actively promote specialty timbers and develop the local market for non-radiata timber.

We needed a consistent supply of a consistent quality, which we set out to achieve by a set of grade rules holding our member suppliers accountable to the consumer, and allowed for co-operation and aggregation beween suppliers. Those grade rules focused on purpose or application (e.g. cladding, decking) rather than arbitrary grades such as "dressing" which hold no meaning for the consumer.

Where we have fallen short as an industry body is in resourcing the development of the market for specialty timbers. That requires more funding than our members can raise. Also, in our defense, we have been held up by not achieving the changes to the building code required for any real market penetration for our species. We simply cannnot develop those markets until alternative species become acceptable solutions. The right timber for the right application.

One a positive note, applications for Te Kōtuku grants will be open shortly. These grants are for small-scale processors that specialise in using non-pine trees to lift productivity and capacity and create more local jobs. See below.

Dean Satchell
Chair, FFT

If you have a story for this newsletter, please get in touch with Dean by email.

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Import substitution workshop

Jonathan Harrington from Scion recently held a workshop around the issues with import substitution and how we can get locally-grown specialty timbers to replace the vast quantities of imported timbers coming into the country. This project is being funded by Te Uru Rākau under the Industry Transformation Plan banner and has just got underway. The workshop was setting the direction and seeking feedback to secure a solid direction for the project. Follows are some of the highlights.

One of the key constraints is supply:

Imported wood dominates the specialty timber market:

Specific issues include:

1. The complexity and pathway to source domestic timbers for projects is not obvious to our specialty wood customers.
2. New Zealand growers lack a clear route path through to customers they can easily navigate.

Recommendations included:

1. Move away from species and towards attributes (real and perceived)
2. focus on purpose not species
3. look at what needs the products actually fulfill.
4. Produce a series of material spec sheets targeting architects (c.f. growers)

Some observations:

1. Taking material to finished product (c.f exporting logs) requires
   • EXPERTISE
   • capital expenditure / investment
   • Building relationships
   • managing complexity
2. The complexity and pathway to source domestic timbers for projects is not obvious to our specialty wood customers
3. New Zealand growers lack a clear route path through to customers they can easily navigate.
4. Past experiences drive specification
5. Aesthetic is key – drives colour/ tone, investigate species and products in range
6. Shopfitters and builders are highly influential on species choice
7. Homeowners are driving sourcing & selection decisions from small miller/timber sales

"It’s a huge jump for corporate foresters to get their head around specialty purpose species. High volume, low value logs is what this generation of New Zealand foresters know. For years it’s been a race to mechanise and enlarge to create the necessary scale to make radiata pine profitable. While profits are internalised, costs are often socialised, to the extent that now the license is being withdrawn."
 – Vaughan Kearns

"Finding access to capital is a barrier for the smaller players” – Richard Thompson, MacBlack"

Conclusions:

SUPPLY

• need to be able to source logs
• in the long-term need to be profitable enough to encourage planting

CONSISTENCY

• product grades
• availability
• distribution 

AWARENESS

• customers need to know about alternatives
• what they are, where to find them, etc

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Te Kōtuku - Grants for Diversified Wood Processing

Te Kōtuku is part of the Wood Processing Growth Fund (WPGF) and sits alongside the Catalyst for pre-investment activities, and the Accelerator which can provide direct investment for capital projects.

Te Uru Rākau – New Zealand Forest Service would like to talk to anyone interested in the fund.  We encourage you to discuss your proposal with us as soon as possible so we can assist you through the application process. We will be taking applications from 20th November onwards. More info on the fund is below. To get in touch, please email wpgf@mpi.govt.nz

How Te Kōtuku grants work

Te Kōtuku Fund will provide grants to small-scale processors that specialise in using non-pine trees to lift productivity and capacity and create more local jobs. The grants can be used to fund plant and equipment (capital projects).

Te Kōtuku fund has up to $500,000 to award each year, with a minimum of $50,000 awarded per grant. Applicants are expected to contribute 50% co-funding towards the project cost, although there is some flexibility where the application can demonstrate significant benefit.

What could be funded to lift productivity and capacity and create more local jobs?

Examples of some proposals that would meet eligibility:

• log inflow equipment e.g. Loaders, telehandler, rough terrain forklift, log decks
• primary processing equipment e.g. Circular ¼ saws, bandsaw, tipping saws
• secondary processing equipment e.g. Planers, moulders, dust extraction upgrades, resaws, log moulder, rip saws
• upgrades to kilns and boilers e.g. Dehumidifying kiln, solar kiln
• energy infrastructure e.g. Waste chipper, boiler
• treatment equipment e.g. Chemical, thermal
• other improvements, new equipment or upgrades.

When to apply

Applications will be open from November 20, 2023. Interested parties are encouraged to get in touch early to discuss their project plans and for assistance with the application process.

Additional information: More info on the Wood Processing Growth Fund HERE E-mail wpgf@mpi.govt.nz or freephone 0800 00 83 33

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Thermal modification progress

Tunnicliffe Timbers have finally commissioned their new large Thermal Modification (TM) kiln. It works under pressure as a "closed system" so doesn’t require 230 ° C to get adequate durability. Instead it goes to 170 degrees.

Tunnicliffes have thermally modified some of my 50mm poplar for weatherboards and the results have been very good. Unfortunately at $850 per cubic metre to run, I don’t know how much more I’ll be putting through with them.

The next step is to bandsaw to 23mm, then machine to shiplap profile. It doesn’t look as dark as what I had through the "open system" but photos can be deceiving.  One good thing about this new, much large kiln is that it is not restricted to 4 metre long boards.

Vaughan Kearns

The cladding on this cabin is thermally modified cypress

The cladding on this cabin is thermally modified poplar.

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