Australia Challenges EU Over Deforestation Maps, Delay in EUDR Implementation

 The Australian government, led by the recently appointed Minister of Agriculture Julie Collins, is in conflict with the EU over the EUDR. Like Brazil, Canada, and Columbia, Australia claims that Brussels is using inaccurate maps to measure deforestation.

This problem stems from Australia's race against time to convince the EU that tree cutting should not be considered "deforestation," a crucial definition that could endanger millions of cubic meters of timber that are sold to the EU directly or through third countries, as well as a small but lucrative market.

Australia-EU Conflict Over Deforestation Maps and EUDR Implementation

Speaking to the Financial Times, an official from Australia's embassy in Brussels stated that EU operators and relevant authorities should use a variety of information sources when determining whether deforestation has occurred, rather than viewing the EU's map as the only source of truth.

The main point of contention is whether the EUDR would accept the 2020 EU Observation on Deforestation and Forest Degradation, which uses a different definition of forested areas, or Canberra's Forests of Australia Map, which was published in 2023.

Australia is not alone in its concerns; officials in China, the US, New Zealand, Brazil, Canada, Columbia, Indonesia, and Malaysia have all issued warnings about global supply chains, and 20 out of 27 European Agricultural Ministers have called for a delay in the rules' implementation.

According to the Australian embassy, several EU member states have not yet appointed a national body to supervise imports, and Brussels has not yet released guidelines on how to comply with the new regulations.

The embassy also noted that, in order to account for shipping times, Australian producers must get ready for exporting to Europe months ahead of the deadline. However, there are still a number of major unknowns, including the definition of what constitutes primarily agricultural land use. Australia is now arguing in favour of delaying the rules' implementation until all prerequisites are satisfactorily understood and firmly established.

Pedro Miguel da Costa e Silva, Brazil's ambassador to the EU, stated that the country's private sector has several examples of commercially cultivated tree plantations, cocoa and coffee plantations, and other land being incorrectly designated as forests. He continued by saying that because European operators and authorities are not collaborating with local monitoring systems, which have far higher accuracy rates, producers would now need to invest millions of dollars in private compliance systems.

EUDR Compliance Costs, and the Importance of Traceability

The significant regulatory challenges that global forest producers must navigate could push the estimated compliance costs for the EUDR to as high as US $2.5 billion. The EU expects that these costs will be absorbed by reduced profits for those involved in the value chain, ultimately being passed on to the final consumers.

To address these challenges, iov42 launched Interu, a technology specifically designed to combat global deforestation. According to the company, only 18% of the global timber importers surveyed were aware of the EUDR or the potential costs of compliance.

Anna Roberts, Head of Market Development at iov42, who is currently working with the EUDR, the UK Environment Act, the US Forest Act, and the Japan Clean Wood Act, revealed that 59% of importers lack sufficient funds for traceability. As a result, half of the global timber importers surveyed have adopted a "wait and see" approach to due diligence.

Roberts emphasized that neglecting due diligence could lead to serious consequences, including reputational damage and fines of up to 4% of sales for violating the EUDR. Roberts also noted that 67% of European timber companies surveyed believe the EUDR will require new tools and techniques but will ultimately enhance market share. At the Innovation Zero World Congress, Roberts emphasized that traceability is at the core of the EUDR, highlighting four key components: advanced technology, ecosystem collaboration, data trust, and equitable data dissemination. 

These elements are vital for achieving effective traceability, and Timber Exchange—a modern digital partner for global timber industry stakeholders—is dedicated to providing these solutions. Timber Exchange simplifies high-volume global supply chains in the forestry industry by automating B2B customer service, streamlining shipments, tracking documents and deadlines, and offering real-time monitoring of bulk vessels and cargo couriers, among other services.

It incorporates cutting-edge technologies like Marine Window, which provides real-time indicators of port and trade activity for 500 ports and eight shipping chokepoints worldwide. Users can filter data by country to get specific details about ports, view the top three traded industries, and access a graphical representation of port calls and import/export volumes. This feature also offers detailed information on recent disruptions, including event specifics, affected countries, and impacted ports.

Conclusion

Curious about more news and the impact on the global timber market? The Market Data Hub is your go-to resource for the global timber trade. This digital market tracker provides more than just traditional data—it offers a wealth of news, updates, and educational webinars.

With the Market Data Hub, users can access over 200+ market indicators covering forestry operations, including logging activities, production metrics, inventory counts, and trade volumes. The platform also tracks consumption trends and pricing strategies across more than 25 major global timber markets, giving you a comprehensive view of industry dynamics.

Understanding differences in timber qualities around the world

 Timber is a natural resource that has been used for centuries in construction, furniture making, and many other applications. Its popularity stems from its renewable nature, versatility, and the unique qualities it possesses. However, not all timber is created equal. The quality of timber can vary significantly around the world due to factors such as species, climate, and growth conditions. 

In this blog, we will explore the differences in timber qualities and what makes each type unique.

Differences in Timber Qualities

Timber is valued for its adaptability and inherent beauty and is used extensively in architecture, construction, and other sectors across the globe. This is why it is essential to understand its properties when choosing the appropriate material for a given application. The assessment of lumber is a rigorous process that differs between standards and locations, from appearance grading to strength classifications. Let’s take a look at them in detail!

Appearance Grading

Appearance grading is one of the main techniques for determining the quality of timber. During this procedure, a number of criteria, including knots, top rupture, waning, insect assault, and more, are visually inspected. The grade of wood is determined by each criterion; a higher grade is attained by having fewer and smaller faults. At the sawmill, appearance grading is usually done to make sure every piece fulfils quality standards.

Appearance grades provide detailed criteria for assessing timber quality. Grades such as G4-0, G4-1, G4-2, G4-3, and G4-4 denote specific quality levels suitable for different applications ranging from interior joinery to packaging. Each grade permits varying degrees of defects, with higher grades accommodating fewer imperfections. For example, Grade G4-0 is characterized by high quality with minimal defects, while Grade G4-4 allows for more extensive imperfections suitable for low-quality formwork and packaging.

Grading of Sawn Timber

The grading of sawn timber follows established regulations and standards, such as the Nordic Timber Grading Rules and the European standard SS-EN 1611-1. Sawn timber is sorted into different classes ranging from I to VII, each representing varying quality levels. For instance, Class U/S encompasses unspecified proportions of sub-classes OS I to OS IV, while Classes V to VII have distinct quality requirements. The grading process involves visual inspection of faces and edges or solely on faces, resulting in designations like G4 and G2, respectively.

Construction Timber Strength Classes

In addition to appearance grading, timber is classified into strength classes ranging from C14 to C35, based on its structural capabilities. Strength classes dictate the suitability of timber for load-bearing structures and other applications. For instance, C14 is suitable for wall studs with less severe deformation requirements, while C30 and C35 offer extra high strength for specialized applications. Each strength class has specific criteria regarding knot size, deformation tolerance, and permissible defects, ensuring optimal performance in various construction scenarios.

Surface Structures

Timber's functional qualities and aesthetic appeal are greatly enhanced by the way its surface is treated. Depending on the sawing method, original sawn wood has unique surface patterns, but fine-sawn or dry-sawn wood has a smoother appearance and is appropriate for external cladding. Planed surfaces offer structural timbers a flat, smooth finish, but brushing and grooving processes give the wood surface more depth and texture. Surface treatment choices accommodate a range of tastes and technical specifications in building and design.

Conclusion 

Making wise decisions in building, design, and other industries requires an understanding of timber properties. Each factor, including surface treatments, strength classes, and appearance grades, adds to the overall quality and suitability of wood for particular uses. Stakeholders can ensure the effective use of timber resources while accomplishing their project goals by following set rules and procedures.

Timber Exchange's timber inspection service is your gateway to ensuring the highest quality and standards for your timber purchases. With a thorough on-site assessment of thickness, width, moisture content, and overall quality at your preferred location. Our expert inspectors provide you with a detailed report within 48 hours, thus, guaranteeing peace of mind and confidence in your timber investments. 

For more information regarding this, submit an inquiry.

IFA Survey Reports Steady Timber Prices in Ireland for Q2 2024

 As the second quarter of 2024 draws to a close, the Irish timber market presents a remarkable record of consistency. According to a recent survey conducted by the Irish Farmers' Association (IFA), farmers have received stable prices for all timber products throughout this period. 

In this blog, we will explore the significance of this stability, explaining the dynamics of the timber trade and its impact on the agricultural community. We'll also examine the insights provided by the IFA survey and discuss what this steadiness means for the future of the Irish timber industry. 

Irish Timber Market's Stability from April to June 2024

From April to June 2024, the Irish timber market remained stable. Prices for various timber products maintained a steady course, similar to the EU and other global timber markets, which experienced no significant timber price fluctuations. The pricing data presented in the IFA Farm Forestry Timber Market report is a compilation of figures from forestry companies, forest owners, and sawmills, providing a comprehensive overview. 

Jason Fleming, the chair of IFA farm forestry, outlined the findings of the IFA timber price survey spanning from April to June 2024, which indicated a consistent pricing trend across all timber products. 'Timber prices have been stable in the first half of 2024 with prices signalling a steady market demand,”' commented Fleming. He further noted that the Irish timber market's stability aligns with trends for the broader European Union and global markets. Fleming emphasised the importance of regional price variations, advising farmers to survey the market thoroughly to maximise their returns.

Timber Price Trends

The IFA Farm Forestry Timber Market Report provides a detailed analysis of roadside prices for Sitka spruce timber, reflecting the current market valuation:

• Pulpwood: €36-€40 per tonne

• Stakewood: €42-€52 per tonne

• Palletwood: €48-€66 per tonne, varying with length

• Sawlogs: €88-€100 per tonne

Determinants of Timber Pricing

The variability in timber prices can be attributed to several key factors:

• Volume of Sale: Larger sales volumes allow for fixed harvesting costs to be distributed over more units, thus allowing buyers to offer a higher price per tonne.

• Proximity to Market: The closer a forest is to a sawmill, the lower the transportation costs will be. In this way, a forest owner can earn more money.

• Site Accessibility: Better accessibility reduces logistical challenges and costs associated with a plantation's sale, which is critical to its selling price.

• Market Dynamics: Prices can also be influenced by market demand. In times when inventory levels for certain timber products are low, buyers may be willing to pay a premium to maintain mill operations.

Harvesting and Forwarding Costs per Tonne

The global timber industry relies heavily on forestry contracting for operational execution, financial planning, and asset protection. On average, the costs for harvesting and forwarding per tonne are as follows: the first thinning is priced between €20 and €22, the second thinning ranges from €22 to €24, and the third thinning is set at €20. Clearfell operations cost between €14 and €16, while haulage is at €12. 

Depending on the specific site conditions, these figures can vary. 

Conclusion

For forest owners, timber sales and harvesting information are key to securing a lucrative timber deal. In this context, it is necessary to understand timber price trends, which is why the Timber Exchange Market Data Hub is so crucial.

The Market Data Hub is a comprehensive digital global timber market tracker. It provides extensive information that transcends basic timber market data. It has detailed news updates and educational webinars. Accessible via a unified dashboard, this platform enables users to monitor over 200+ market indicators. This feature facilitates the tracking of various forestry operations, including logging activities, production metrics, stock levels, and export/import figures, as well as consumption trends and pricing in over 25 significant markets worldwide.

If you want to better understand the Market Data Hub and its functionality, schedule a demo from here.

Timber Concessions Cause 76% of Malaysia’s Deforestation

 Malaysia's natural forests, spanning millions of hectares, are under severe threat from expansive timber and palm oil concessions from the Government. This alarming situation could lead to a significant reduction of 16% in forest areas, jeopardizing Malaysia's commitment made at COP26 to maintain half of its land as forest and tree cover.

Environmental watchdog Rimbawatch has raised concerns over the lack of transparency in Malaysia's forestry and land use data, highlighting the growing risk to the country's rich ecosystems. The area of forests in danger has escalated from 2.3 million hectares in 2023 to a staggering 3.2 million hectares in the current year.

The Leading Threat to Malaysia’s Forestry Industry

Timber plantations are the primary culprits, responsible for more than three-quarters of the threats to forests. These plantations are often situated within untouched forests and frequently intersect with palm oil concessions. According to the Food and Agriculture Organization's (FAO) definition of deforestation, setting aside 2.3 million hectares for timber production could slash forest cover to a mere 47.35%, falling short of the COP26 agreement of 50%.

The forestry area at risk of 3.2 million hectares is equivalent to the entire area of Pahang, Malaysia's largest state. Interestingly, Pahang, along with states like Sarawak, Sabah, and Kelantan also face significant risks of concession overlaps with natural forests. Notably, Sarawak is home to 68.2% of timber plantations within intact forests, a figure that dwarfs Sabah's 16.1%, making monoculture timber plantations the most significant hazard.

The environmental impact of this is profound, as the expected loss of 2.4 million hectares of timber plantations could release approximately 368 million tonnes of carbon dioxide into the atmosphere. 

Conclusion

To know more about the latest updates on the situation, keeping track of global timber market news is your best option. Keeping up with the most recent advancements in the global lumber market is not only advantageous but also necessary. 

Market Data Hub is a digital and comprehensive global timber market tracker that provides you with the latest and most reliable data, news, webinars, and insights on the timber industry. From one dashboard and with 150+ market indicators you can track timber market dynamics of logging, production, inventory, export/import, consumption, and prices in 25+ key markets around the world. 

If you're looking for a detailed conversation on how to use the Market Data Hub and its features, please click this link to schedule a demo session.

The Benefits of Outsourcing Timber Inspection - Enhancing Quality and Efficiency

 Timber inspection is a crucial process in the forestry industry, as it ensures the quality, safety, and sustainability of wood products. However, timber inspection can also be a costly, time-consuming, and labour-intensive task, especially for small and medium-sized enterprises (SMEs) that lack the resources and expertise to perform it effectively. That is why many SMEs are opting to outsource their timber inspection needs to specialised service providers, who can offer them a range of benefits. 

In this blog, we will discuss the benefits of outsourcing timber inspection and how it will help you enhance the quality and efficiency of your timber trade.

Benefits of Outsourcing Timber Inspection

According to a report by QIMA [https://www.qima.com/whitepaper/benefits-outsourcing], outsourcing quality control can result in lower labour costs and reduced overhead expenses, as well as vendor-paid quality control, where the cost of QC is charged back to the supplier or factory.

To inspect your timber before buying, you need an expert and professional service provider who can check the quality, thickness, width, moisture levels, and other aspects of your timber. By outsourcing timber inspection, you can ensure that your timber meets the specifications and standards that you require.

Here are the benefits of outsourcing timber inspection -

Cost savings - Outsourcing timber inspection can help you reduce your operational costs and increase your profitability, as you do not have to invest in expensive equipment, training, and personnel. You can also avoid the hassle of dealing with regulatory compliance, documentation, and logistics, as the service providers handle these aspects for you. 

Professional and reliable services - Outsourcing timber inspection can ensure that you receive high-quality and consistent results, as the service providers have the skills, experience, and technology to perform the inspection according to industry standards and best practices. They can also provide you with timely and accurate reports, feedback, and recommendations, which can help you improve your processes and products. 

Global coverage - Outsourcing timber inspection can give you access to a global network of inspectors, who can visit any location of your choice and conduct the inspection on your behalf. This can save you time and money on travelling to various factory locations, as well as mitigate the risk of managing employees in countries that face safety concerns or political uncertainty. Outsourcing can also help you overcome any potential cultural or language barriers, as the inspectors are usually local professionals who have in-depth knowledge of their region's laws and practices.

Sustainability and reputation - Outsourcing timber inspection can help you demonstrate your commitment to environmental and social responsibility, as the service providers can verify the origin, legality, and certification of the wood products. By outsourcing timber inspection, you can ensure that your timber is sourced, processed, and traded in a legal and ethical manner, and that it complies with the environmental and social standards and regulations of your industry.

How does timber inspection service work?

How does it work? It's simple. All you have to do is request for an inspection to a reliable outsourcing company and they will send a qualified and experienced inspector to your chosen location. The inspector will conduct a thorough and impartial assessment of your timber, covering aspects such as -

• Tolerance in thickness and width - The inspector will measure the dimensions of your timber and check if they match the agreed specifications.

• Moisture levels - The inspector will use a moisture metre to determine the moisture content of your timber and check if it meets the required standards.

• Defects - The inspector will examine your timber for any defects, such as knots, splits, cracks, decay, insect damage, or fungal infection, and provide commentary on their severity and impact.

• Random checks - The inspector will perform random checks on bundles of timber to ensure that the quality, dimensions, and moisture are consistent throughout the lot.

The timber inspection service is fast and affordable. You can expect to receive a detailed and comprehensive report, including site photos. The report will give you an accurate and objective overview of your timber, and help you make informed decisions about your purchase.

The inspection service is also flexible and customisable. You can choose the location, date, and time of the inspection, as well as the scope and criteria of the assessment. You can also communicate with the inspector directly, and ask any questions or clarifications that you might have.

Conclusion

Outsourcing timber inspection can be a smart and strategic decision for SMEs in the global timber industry, as it can offer multiple benefits that can improve their quality and efficiency.

Are you looking for a reliable and affordable way to inspect your timber before you buy it? Do you want to ensure that your timber meets the quality standards and specifications that you need? 

If so, you might want to consider using the on-demand timber inspection service offered by Timber Exchange. The company provides a valuable service for inspecting your timber at the port or sawmill of your choice. This service is designed to help you verify the quality, quantity, and condition of your timber before you finalise your transaction. 

The timber inspection service encompasses timber quality, thickness and width, moisture levels, random checks on bundles to ensure dimensions, and defects, and provides commentary on them. Within 48 hours, a comprehensive audit report, including site photos, will be delivered to you.

For more information contact us.