The role of government policy in facilitating investment in forestry – local and national issues

This paper examines some issues associated with taxation, carbon trading and biofuels as ‘global’ policies. Whilst taxation is a national concern, it can be used as a tool to enhance the effectiveness of carbon trading as means of achieving reduced CO2 emissions. Taxation is used to provide taxation benefits for research and development of improved technology, reducing investment cost by greater depreciation rates and investment incentives to mention a few. Taxation does increase the level of plantation establishment and in Australia the use of Managed Investment Schemes have proven to be particularly successful. Other sectors of the community question whether the increased establishment of monoculture plantations is a success at the local level. The need to do something about climate change has been accepted internationally although what and how to do it is still subject to much debate. This paper highlights that although a common international approach is called for, some issues such as different trading systems and criteria create ambiguity. The European Union’s call for greater use of biofuels is visited but regarded by some as an example of well intentioned policy being adopted but for various reasons has created problems such as deforestation on a localised basis

Portable Sawmills: The Current and Potential Future Role in the Timber Supply Chain

Markets for rainforest cabinet timbers in north Queensland are currently limited. The vast majority of the logs come from private land due to the reduction of the resource with the World Heritage listing of the rainforest in 1988. For a variety of reasons, no market is available for logs for woodchip. Thus for landholders harvesting trees the main market for these species is the sawn-timber market. In north Queensland the single large-scale processor of logs, Ravenshoe Timbers Pty Ltd, only processes plantation grown softwoods. The potential buyers of hardwood logs are limited to a few small 'family' fixed-site mills and portable sawmillers. The markets these sawmillers service in turn are often long distances from north Queensland, which leads to high road or rail haulage costs. Additionally, these sawmillers face stiff competition from rainforest timbers of similar characteristics imported from developing countries where legislative requirements and cost of labour are not as onerous as those in Australia. It is important to ascertain what role the cabinet timber industry can play in the north Queensland economy and what role, if any portable sawmilling can play in a future timber industry. Potential exists for greater use of portable sawmills, to handle the relatively small volume of hardwood timber available, and reduce log transport and milling costs

Developing Markets for Lesser-Known Species from Tropical Australia

This paper examines issues involved in the marketing of tropical rainforest cabinet species and eucalypt timbers in north Queensland, reporting findings from surveys of cabinet-makers. Timber availability, suitability, customer request and colour and grain are the most important factors in the decision of cabinet-makers to select a particular species. Timber price only becomes important when it cannot be passed on to the purchaser. Australian rainforest cabinet timbers are highly regarded by both cabinet-makers and the general public; however, their use is restricted by actual and perceived availability

Cabinet-Makers' Awareness and Usage of Rainforest Cabinet Timbers in Queensland

This paper reports findings of surveys into the usage of, and attitudes to, rainforest cabinet timbers by cabinet-makers in Queensland, Australia. In determining policies to promote growing of native rainforest trees on private land, it is necessary to know the market requirements for various cabinet species. The species most in demand by cabinet-makers are identified in this paper. Suitability and availability are found to be important determinants of cabinet-maker demand for timber. The species being planted in north Queensland are not a close match with those predicted by cabinet-makers to be in greatest demand in the future

Timber Marketing in a Revitalised North Queensland Forest Industry: Overview of Major Issues

As the harvest of timber from native forests has contracted in north Queensland, the traditional supply chain from forest to final consumer has to a large extent broken down. As a result, landholders and non-farmer investors cannot assume that timber markets will automatically exist when they have trees ready for harvest. A wide variety of research has been carried out which is relevant to timber marketing in north Queensland. Surveys of timber millers, cabinet-makers and their staff, and purchasers of timber products, as well as financial modeling of timber milling, have been used to derive information about timber markets in north Queensland. Research has been undertaken on supply chain and market analysis, attitudes of timber processors and final consumers, institutional arrangements for market facilitation, and market development

Short-run and long-run costs for milling rainforest cabinetwood timbers

This paper provides estimates of short-run and long-run average costs of portable sawmills and discusses the implications of using portable rather than fixed-site sawmills for milling rainforest cabinet timbers in northern Queensland, Australia. Ten portable and eight fixed-site sawmills were surveyed in northern Queensland, and the findings, combined with information from other sources, were used to develop a financial model of milling costs. Financial analysis reveals that, because fixed costs for portable sawmills are low, the cost structure is dominated by variable costs, in particular labour costs. The rate of sawn timber recovery had a major effect on milling cost. The estimated short- run average total cost of milling rainforest timber with a portable sawmill was $162 m of roundlog ($361 m sawntimber), assuming a 45% recovery rate and a roundlog throughput of 344 m y. This is higher than the median contract milling price of $140 m of roundlog ($311 m of sawntimber), suggesting that some portable sawmillers (especially part-time operators) do not take all costs into account. The financial model was also used to derive sawmilling long-run average cost curves, based on varying sizes of portable sawmills. The bandsaw has the lowest milling cost for log throughput from zero to about 60 m y, the Lewis saw from 60 m y to 185 m y, the Forestmill from 185 m y to 1240 m y and the Supermill beyond 1240 m y. The financial model developed indicates that even where all costs are included, portable sawmills can be competitive with fixed- site mills in an infant or declining industry situation, and can also play a role in farm woodlot forestry

Factors in the acquisition and utlisation of portable sawmills in Queensland

Portable sawmills may potentially play an important role in the sawmilling industry in Australia. This paper discusses the factors in the acquisition and utilisation of portable sawmills. The contribution of small to medium sized sawmills to the wood and paper industry in Australia along with the advantages of portable sawmills over fixed-sited mills are outlined and discussed. A critical appraisal of the role of portable sawmills is undertaken which includes a discussion of recovery rates, costs, and throughput of fixed-site versus portable sawmills. A discussion of important aspects to consider in the decision to invest in portable sawmill technology is presented. These include reason for purchasing, types of sawmills available and their relative advantages, financing issues, power sources, maintenance, convenience and training