Gagged!

gagged

Isn’t this just so predictable and pathetic?

Just when we start to get some real debate and transparency into the Tasmanian forestry wars along comes the Honourable Minister and slams the door.

It was so newsworthy that it made both the major State news media.

http://www.abc.net.au/news/2015-06-19/forests-minister-tells-advisory-council-to-keep-opinions-private/6559572?section=tas

and

http://www.themercury.com.au/news/politics/resources-minister-paul-harriss-puts-clamp-on-forestry-tasmania-talk/story-fnpp9w4j-1227406689089

What is the purpose of an advisory council if “everyone is on the same page”? That’s not an advisory council. That’s a political smokescreen, a whitewash!

The whole purpose of an advisory council, as Sue Smith said, is to promote and foster vigorous, open discussion and canvas as wide a range of opinions and options as possible.

The Tasmanian forest industry is going absolutely nowhere until the future of Forestry Tasmania is resolved. And after 21 years we know that the GBE business model has been a total failure. Forestry Tasmania remains the “albatross around the neck” of the forest industry.

So vigorous and open debate about this issue is absolutely fundamental.

And yesterday the State government shut that debate down.

Judging by the response in the media the Tasmanian community is absolutely sick and tired of the continuing political games and squandering of taxpayers money on the forest industry. But the advisory council and our politicians just aren’t listening.

The issue of retaining skills is yet another forest industry furphy. The one and only skill that Forestry Tasmania needs right now is to be fully commercial and profitable. Without this fundamental skill everything else is completely irrelevant.

The advisory council is now a lame duck with no integrity, credibility or purpose. Send the bill to the Tasmanian taxpayer.

When will Tasmania get a fully commercial profitable forest industry?

TFGA supports continuation of failure

TFGA_Skillern

TFGA CEO Mr Peter Skillern

Well the TFGA retains its historical position as being incredibly conflicted and confused about the role of the private forest grower and the future of the forest industry in Tasmania.

http://www.abc.net.au/news/2015-06-19/tfga-supports-forestry-tasmania-dismantle-discussion/6558536

With the Forestry Tasmania GBE business model being shown to be a complete disaster over the past 21 years the TFGA comes out today and says that’s fine, keep it going!

It’s pretty pathetic and shows a complete lack of independence and vision.

Typical!

Private forest owners now dominate the forest harvest in Tasmania for perhaps the first time ever.

State forest policy should now be focused entirely on building a profitable, commercially focused private forest grower base.

But the TFGA appears not to want this. Instead the TFGA wants State forest policy to remain 100% focused on the public forest resource and a failed GBE.

More politics and conflict and a failed forest industry.

The TFGA is the only representative and voice of the private forest grower in Tasmania.

I just don’t understand!

At least Sue Smith had the guts to have a go and say something different.

IST Blackwood Sawlog Tender Results 2014-15

IST 0515 log 16

Here is a summary of blackwood sawlog tender results from Island Specialty Timbers (IST) for the 2014-15 financial year.

http://www.islandspecialtytimbers.com.au

This follows my inaugural report last year:

http://blackwoodgrowers.com.au/2014/06/14/blackwood-sawlog-tender-results-2013-14/

During the year 14 lots of blackwood logs were put to tender by IST. These were individual logs except for two parcels of small logs in the October 2014 and January 2015 tenders. Only one log was unsold for the year from the August 2014 tender.

Total volume of blackwood logs sold was 31.06 cubic metres (or approximately 0.3% of the total volume of blackwood logs sold by Forestry Tasmania for the year) for a total value of $20,660.

Plain grain logs in 3 lots totalling 18.7 cubic metres sold for an average volume-weighted price of $227 per cubic metre.

Feature grain logs totalling 12.4 cubic metres sold for an average volume-weighted price of $1,325 per cubic metre.

These good prices were achieved despite many of the lots having quality issues (spiral grain, flutes, branch stubs, small diameter). Some of the lots could best be described as craft logs.

This compares with the special timbers average mill door log value of $134 per cubic metre that Forestry Tasmania received in 2013/14.

There was such a variety of log grades and qualities in these 14 lots that for analysis and summary I’ve grouped the logs into just plain and feature grain, as these seem to be the main determinants of price.

In general logs sold by IST are smaller and with more defects compared to logs sold under long-term contract to favoured customers. They do not represent average “run-of-the-bush” quality logs.

Table 1 summarises the tender results.

  Lot count Average of SED (cm) Average of Len (m) Average of Vol (m3) Sum of Vol (m3) Average of Unit Price ($/m3) Total Price ($)
Plain 3 44 5.9 1.0 18.67 $302 $4,244
Figured 10 60 3.9 1.2 12.39 $1,280 $16,420
Sold 13 57 4.3 1.1 31.06 $1,054 $20,664
Plain 1 69 2.4 1.2 1.20
Unsold 1 69 2.4 1.2 1.20

The highlights for the year were:

  • One small feature-grain log that sold for a unit value of $2,400 per cubic metre in the January 2015 tender, and
  • A log (1.6 cubic metres) that sold for $3,260 ($2,000 per cubic metre) in the February 2015 tender, which contained some feature grain but also had significant quality issues (sweep and spiral grain).

The lowest unit price for the year was achieved by the parcel of 13 small plain-grain logs in the October 2014 tender. This parcel totalled 10.1 cubic metres in volume, with average dimensions SED 42cm, LED 47cm, Len 5.0m, vol 0.78 cubic metres. This parcel sold for $200 per cubic metre.

Only one of the logs tendered approximated in size and quality what might be grown in a well managed blackwood plantation. This was Lot 20 in the March 2015 tender that sold for $620 or a unit price of $485 per cubic metre. This is a very good price and puts the value of a blackwood plantation at harvest at well over $100,000 per hectare!

Are any Tasmanian farmers interested?

In 2013/14 IST sold a total of 1,531 cubic metres of product including 136 cubic metres sold through the tender process “to ensure that the best possible prices were obtained” (Forestry Tasmania 2013/14 Annual Report). Only 16.1 of the 136 cubic metres (12%) was blackwood, despite the fact that blackwood comprises 80% of the special timbers harvest annually. I wonder how much of the 1,531 cubic metres of product was blackwood? We will never know. Frustratingly Forestry Tasmania don’t tell us how much the 1,531 or the 136 cubic metres sold for.

These tender results represent the only publically available competitive market prices for blackwood sawlogs. Given that blackwood is the only Tasmanian specialty timber that has the potential to have a commercial future these prices are important in alerting Tasmanian farmers and the wider community to the commercial opportunity that is available.

One thing that is clear from watching the regular IST tender results, the special timbers market is capable of paying extremely high prices for quality special timber logs as evidenced by the massive $5,900 per cubic metre paid for a tiger myrtle log at the April tender.

Caveats:

  1. Island Specialty Timbers (IST) is an enterprise of Forestry Tasmania established in 1992 to increase the recovery, availability and value of specialty timbers from harvesting activities in State forests.
  2. Forestry Tasmania manages its special timbers operations (including IST) as a taxpayer-funded, non-commercial, non-profit, community service.
  3. Note that all logs and wood sold by IST comes from the harvesting of public native old-growth forest and rainforest certified under AFS (PEFC).
  4. It is unlikely that this tiny set of market-based blackwood log prices is representative of the broader blackwood market.
  5. The dataset is too small to allow any analysis or correlations to be made between price and log quality apart from the obvious result that feature-grain logs attract a significant price premium over plain-grain.
  6. Remember also these tender prices are effectively mill door prices that already include harvesting and transport costs. They are not stumpage prices.

It would improve market transparency and stimulate greater investor interest if IST would tender more blackwood logs and demonstrate real commercial focus. Increasing the blackwood volume tendered to even 100 cubic metres per year would be a good start.

But whilst Forestry Tasmania, the State government and the State parliament all regard the special timbers industry as a community service and political play-thing rather than any commercial opportunity, then blackwood’s commercial future remains difficult.

When will Tasmania get a fully commercial, profitable forest industry, based on profitable tree-growing?

Taylor Custom GA 12-fret Blackwood / Red Cedar

There hasn’t been much in the way of new guitars featuring Tasmanian blackwood lately, but here is a one-off custom from Taylor Guitars via The Acoustic Letter.

A lovely little guitar, very nicely presented by the people at Taylor for a straight-grained (as distinct from feature-grained) blackwood guitar; and a great review from Tony Polecastro (& his amazing fly-catching pooch).

This one-off custom guitar is only available at The Acoustic Letter.

http://acousticletter.com/shop/taylor-custom-ga-12-fret-blackwood-red-cedar/

Happy viewing!

Eye fillet, sausages and guitars

cow

I’ve recently been engaged in an email discussion with the supply chain manager of a major guitar maker that has opened my eyes to some of the wood resource and marketing issues facing the industry.

The conversation started when I enquired whether the company would be interested in buying farm-grown Tasmanian blackwood to use in their guitars. The unequivocal answer came back that to date the company has found it difficult to sell guitars made from Tasmanian blackwood and hence would be reluctant to purchase more timber.

This and a few other comments they made got me thinking.

For the past 100 years and more the guitar industry has been able to access the very best cuts of wood available from around the world with which to build guitars. Rosewood, mahogany, ebony, quilted koa and maple, etc. All of these premium cuts have been accessible largely due to the plundering of the worlds old-growth and rainforest that is now coming to an end.

The guitar industry was like a butcher shop that only sold eye fillet steak. No mince, no sausages. Just premium quality meat. The fact that the rest of the forest products went to other markets helped the guitar industry enormously.

But the wild herds of bison, like the old growth and rainforests, have nearly all gone. Now the butcher shop has to start stocking rump steak, as well as the mince and sausages in order to stay in business, but after 100+ years the customers are finding it hard adjust to this change in diet.

So too the guitar makers are finding it difficult to identify and source sausages and mince that customers might want to buy. Many guitar makers appear to still be peddling nothing but premium cuts.

The words “alternative woods”, “sustainable” and “certified” are slowly becoming part of the daily life for guitar makers, and less so for consumers.

But the butcher shop analogy does have its limitations.

Many of these alternative woods are perfectly good for making quality guitars. In no way do they reflect a move to mince or sausage grade timber, but they do reflect the changes being forced upon guitar makers and reluctant consumers by a changing wood resource. But to the ordinary guitar buyer it feels like an eye fillet vs sausages decision.

What’s worse, the eye fillet, mince and sausages are often all priced the same. So given the choice the consumer is reluctant to try the alternative woods. I think this has been one of the problems with introducing Tasmanian blackwood onto the international tonewood market. Customers often need some incentives to try a new product.

And it’s not just new species of timber that is challenging guitar makers and buyers.

In some cases the eye fillet steak has simply been wood that is highly figured like maple and koa, with plain, straight-grain maple and koa having never featured in the guitar market to any extent. So the above major guitar maker has excess quantities of straight-grain koa and maple wood that they cannot sell to the guitar-buying public. Beautiful timber and great for making quality guitars but it’s just not eye fillet steak!

This is curious because straight grain rosewood and mahogany are perfectly acceptable to the guitar buying public. Years of being fed eye fillet steak has clearly made the market resistant to change.

Now from a forester and commercial blackwood grower’s view point all of this is a bit of a disaster.

Going back to the butcher shop again, a cattle farmer would quickly go out of business if they could only sell eye fillet steak. To be viable the farmer has to sell the whole animal with the various cuts of meat priced according to the supply and the demand. Basic economics 101.

Ditto for tree growers. Highly figured wood is rare. Straight-grain wood is more common. But the guitar market doesn’t reflect this supply situation, either in price or in marketing.

If guitar makers want to help tree growers, then they need to adjust their product development, marketing and sales to better reflect the supply situation regarding plain vs feature grain timber. Plain grain koa, maple and Tasmanian blackwood are great quality tonewoods just like plain grain mahogany and rosewood. Feature grain wood of any species should attract a premium price that is clearly over and above plain grain guitars.

Some guitar makers are better at product design than others. Putting a clear finish on a plain grain guitar especially if the wood is new or alternative may not meet with much buyer enthusiasm. Staining, edge-shading,  a bit of bling, and a price to encourage buyer interest will go a long way to help overcome the conservative guitar buyer.

But for the moment it seems that this major guitar maker won’t be encouraging Tasmanian farmers into the commercial blackwood tonewood market anytime soon.

Comments and ideas?

UNESCO calls for changes to Tasmania’s draft World Heritage Management Plan to prohibit logging and mining

DTWWHAMP

In the ABC News yesterday:

http://www.abc.net.au/news/2015-05-30/unesco-calls-for-world-heritage-area-draft-plan-changes/6508506?section=tas

So the UNESCO World Heritage Committee is now questioning the policies of the Tasmanian State Government.

In Paris overnight, UNESCO’s WHC urged the draft plan be changed. An initial review cited concerns that the plan appeared to create potential for logging operations and mining activity in the World Heritage Area.

An article by Vica Bayley on Tasmanian Times provides more details:

http://tasmaniantimes.com/index.php?/weblog/article/unesco-drafts-a-damning-rejection-of-world-heritage-management/

The draft decision of the World Heritage Committee, for consideration at its [forthcoming] June meeting, represents a damning rejection of the Tasmanian Government’s proposed management of Tasmania’s World Heritage Area.

The draft decision identifies ……. prohibiting logging and mining via upgraded conservation tenure as key actions that need to be taken.

Informed by expert reports from the Committee’s advisory bodies, the draft decision …. urges … that commercial logging and mining are not permitted within the entire [WHA] property, and that all areas of public lands within the property’s boundaries… have a status that ensures adequate protection (p. 56).

The draft Committee decision can be found at:

http://whc.unesco.org/archive/2015/whc15-39com-7BAdd-en.pdf. (1.8MB pdf file).

Pages 54 and 56 of the document are the most relevant.

It appears that Tasmania’s special timbers industry is fast running out of options, at least in terms of access to a taxpayer subsidised public forest resource. The World Heritage Committee will not accept special timbers logging within the Tasmanian Wilderness World Heritage Area.

Here are some of my previous stories about the Draft Tasmanian Wilderness World Heritage Area Management Plan:

http://blackwoodgrowers.com.au/2015/02/10/draft-twwha-management-plan-representation/

http://blackwoodgrowers.com.au/2015/03/25/tourism-council-sees-the-light/

Curiously the ABC news article says that the Tasmanian tourism Industry supports the draft Plan, when in fact the Tourism Council’s own submission is extremely qualified in its support, with strong opposition to the logging and mining proposals in the Plan.

http://blackwoodgrowers.com.au/2015/03/09/deloraine-stringfest-world-heritage-area-logging/

So when will Tasmania get a fully commercial, profitable forest industry?

Forestry Tasmania job losses: the house of cards crumbles

FT logo http://www.abc.net.au/news/2015-05-12/as-many-as-100-forestry-tasmania-job-could-be-lost-union-says/6463900?section=tas

Forestry Tasmania, Australia’s major blackwood grower, appears to be in free fall. Following on from this recent blog:

http://blackwoodgrowers.com.au/2015/04/30/ft-closer-to-closure/ it appears we are seeing the final act of this decades-long fiasco.

After years of poor financial management and performance and decades of political intrigue and community conflict, the last remnants of the Government business appear to be crumbling.

As the recent blog discussed, there is no road to recovery for Forestry Tasmania. These is just the next round of job losses.

The Smithon office in the north-west, where most of the blackwood is grown and harvested, is to lose 50% of its staff. But stakeholders in Australia’s iconic blackwood industry are completely in the dark. There is no transparency in any of this. All we know is that FT are cutting costs, and their biggest cost is staff.

Whatever happened to the Stakeholder Engagement Policy?

Whatever happened to the Stakeholder Engagement Strategy?

http://www.forestrytas.com.au/forest-management/policies

Do any of these corporate initiatives have any purpose or meaning?

It seems not! Perhaps they’re just window dressing when the need suites the occasion (like an FSC audit).

The impact of staff cuts on forest management and operations has not been made public.

So much for sustainability and certification! It’s business.

If you can’t make a profit then you aren’t sustainable!

Will this be the end of Australia’s iconic blackwood industry? Or will the industry finally turn to private blackwood growers for its future?

When is Tasmania going to get a fully commercial, profitable forest industry based on profitable tree growing?

Leonardo Guitar Research Project

LGRP

I recently became aware of this great research project that is happening in Europe in response to the deforestation and the rapidly diminishing supply of traditional quality tonewoods from the world’s tropical rainforests.

http://www.leonardo-guitar-research.com/

This project should benefit Tasmanian blackwood growers as the global momentum to find/develop sustainable and profitable quality tonewood supplies increases.

Goal

The main goal of the Leonardo Guitar Research Project is to study, demonstrate and communicate the possibilities of building acoustic and classical guitars from non-tropical woods. We want to improve global expertise in the craft and adapt it to economic and ecological needs.

The first results from their research were recently published.

Results

All blind tests show that guitars made from non-tropical wood species were equally preferred for sound quality as those made from tropical wood. Non-blind tests show a strong fallback in sound appreciation experienced by non tropical wood guitars.

Conclusions

The need for the use of tropical wood in acoustic and classical guitar building seems to be a myth because blind tests have clearly proven that non-tropical woods can be used to make guitars whose tonal quality is fully equal to that of their tropical counterparts.

The fallback in sound appreciation experienced by non-tropical wood guitars in the non-blind tests, strongly suggests that preference is heavily influenced by preconceptions about what guitars should look like and about what exactly constitutes a tonewood.

All of which is great news. We don’t need to buy rosewood, mahogany or cocobolo guitars thinking that they make the best sounding guitars.

But we do already know that Tasmanian blackwood is an internationally recognised quality, sustainable, profitable non-tropical tonewood. We are just waiting for the market to come to Tasmania!

Having shown that these alternative non-tropical woods can make great guitars the next steps in this project should be:

  • Make the guitars more visually appealing to make the consumer choice easier;
  • Determine which woods are available in sustainable, commercial quantities. FSC certified sources would be even better. Surely the aim is to get the large manufacturers to start using these timbers;
  • Marketing! I would imagine a range of 100% FSC Certified, non-tropical guitars on display at NAMM and Musikmesse would attract significant attention.
  • Investigate sustainable non-tropical woods from other regions such as Tasmanian blackwood!!!

One of the objectives of the LGRP is to develop a network/database linking customers with luthiers, with growers and suppliers of sustainable, non-tropical tonewoods. While the current focus of the project is on common European woods there is every opportunity to expand this to other temperate zones.

Watch this space!

For Sale – Martin OM-42 AND OM45 Tasmanian Blackwood Limited Edition

Martin OM42

http://www.ebay.com.au/itm/Martin-OM-42-Tasmanian-Blackwood-Limited-Edition-Prototype-482/231537909882?_trksid=p2045573.c100033.m2042&_trkparms=aid%3D111001%26algo%3DREC.SEED%26ao%3D1%26asc%3D20131017132637%26meid%3D56d8e873a8044dbdbbd4d9451b8adf05%26pid%3D100033%26rk%3D1%26rkt%3D4%26sd%3D231537909882

I wouldn’t normally put something like this on the website but this is a Tasmanian blackwood icon. This is currently for sale on Ebay. A very rare, prized guitar!

Or direct from the seller Willcutt Guitars, Lexington Kentucky, USA:

http://willcuttguitars.com/CatalogueRetrieve.aspx?ProductID=9561514&A=SearchResult&SearchID=8743311&ObjectID=9561514&ObjectType=27

Somewhere between 8 and 15 of these were built by CF Martin in 2011 depending upon which website you believe. This is how one respected website describes this guitar:

A fine sounding clear guitar, balanced, and the nice figured Tasmanian blackwood, heavier than Koa provides the best projection ever.

An absolute Tasmanian treasure!

I wish CF Martin would consider using Tasmanian blackwood again!

http://www.martinguitar.com/

And now I find this other Tasmanian blackwood Martin guitar currently for sale:

A Martin OM-45 Tasmanian Blackwood from 2005. A stunning creation with highly figured Tasmanian blackwood (a relative of Hawaiian koa) and extensive abalone pearl trim; tasteful torch inlay on the headstock; engraved gold-plated tuner buttons; label signed by C.F. Martin IV.

This is essentially the same model as the above but with more bling for your buck.

Again another super premium guitar from CF Martin. Only 29 of these were made.

http://www.cartervintage.com/acguitar/martins/martinguitars.html#om45tas

Two incredible rare Tasmanian icons currently on the market.

om42_45tas-h

OM42 Tasmanian blackwood headstock (L) compared to OM45 Tasmanian blackwood headstock (R)

Apart from the odd custom order (such as this Martin O-18 http://blackwoodgrowers.com.au/2013/07/27/a-stunning-new-martin-blackwood-guitar-please-mr-santa/) the only other Martin guitars that feature Tasmanian blackwood that I’m aware of were 10 D-42’s built in 2010, as shown on this website:

http://www.elderly.com/new_instruments/items/D42TB.htm

I’m not sure why Martin guitars don’t use Tasmanian blackwood more often. These guitars seem to get a lot of praise and attention in the marketplace.

FT closer to closure

Harriss&Annells Resources Minister Paul Harriss (L) & Forestry Tasmania Chairman Bob Annells (R)

The ministerial statement on the future of Forestry Tasmania today was a de facto announcement of the appointment of an Administrator.

Expressions of interest are to be invited for some of FT’s assets, mainly the hardwood plantations, which hopefully will be enough to cover the costs of Administration.

FT will then almost certainly be wound up.

http://www.tasfintalk.blogspot.com.au/2015/04/ft-closer-to-closure.html

I was going to write my own response to Wednesdays announcements by Resources Minister Paul Harriss but John Lawrence beat me to it and with much greater depth and understanding.

http://www.premier.tas.gov.au/releases/securing_the_future_of_forestry_tasmania http://www.premier.tas.gov.au/releases/ministerial_statement_review_of_forestry_tasmania

Thank you John. And I fully agree with his analysis.

Please read John Lawrence’s analysis and response to yesterdays announcements.

Remember that Forestry Tasmania is the largest grower/supplier of Tasmanian blackwood timber to the market. When FT goes the blackwood industry will have some tough times adjusting.

I will leave you with John’s closing statement:

Minister Harriss hasn’t produced a plan. Rather a plea. Help me.

After all the talk about growing the industry when the figures suggested growing the industry will grow the losses has left him with the credibility of miracle cancer survivor Belle Gibson and the strategic smarts of Colonel Custer.

One good reason for maintaining FT for a while longer is that sale of assets will be more easily effected by a GBE.

When Minister Harriss talks about finding a way to fund a transition, he is referring to the transition from Administration to Liquidation.

Nothing else is likely at this stage.

PS. This is not to say it will be the end of the forest industry. Quite the opposite.

I believe the best option now available is to recognise that the future of the industry is with private forest growers and farmers. It already is! Most wood now grown and sold in Australia comes from private forest growers. This is even now true in Tasmania. The future is already here.

The sooner we move on and get the conflict and politics out of the industry the better it will be for everyone, including blackwood growers.