Lambert plantation

This is the first of two property reports from my recent trip north. This is a large mixed farm at Sunnyside. Most of the property is on red basalt soils with reasonable rainfall. Ideal conditions for growing blackwood? Well the situation turned out to be much more complex.

Like many properties the farm contains damp areas, gullies, steep slopes, and rocky knobs that don’t fit with current farm activities. Some of these sites were on a neighbouring property that was bought 3 years ago, having been planted to plantations of pine, Eucalyptus nitens and blackwood. It is obviously very good country for growing pine and nitens, but the blackwood story was more mixed.

There are 4 block plantings of 15 year-old pure blackwood. Until acquired by the current owner, none of these had received any thinning or pruning. Three of these plantings are on a stony ridge top with shallow soils. The result is that these blackwoods are all short, of poor form, and in the worst case have dead tops and are infested with wattle grub (a clear indication the trees have been under drought stress). These three areas are now providing useful stock shelter but have no commercial wood production potential.

The fourth blackwood planting was something of a surprise and shows that the property does have the potential to grow good plantation blackwood. Although planted on an exposed ridge top this site obviously has deep soils that have allowed the blackwood to thrive. Six rows of pure blackwood have been planted at approx. 3 metre spacing between a pine planting on the south side, and a nitens planting on the north side, all are 15 years old. Both the pine and nitens plantings have provided protection for the blackwood from winds on this high ridge. The nitens planting on the north side has also provided shading that has encouraged the blackwood to grow tall and straight. If this blackwood planting had been properly managed at an early age with pruning and thinning it would now be a great example of a successful blackwood plantation. As it is the blackwoods are 15-18 m tall with an average stem diameter of approx. 15 cm, but with most trees having some large branches in the lower stem. The owner is currently slowly thinning this stand to concentrate growth on the better trees.

 

The farm also contains an interesting range of remnant-native and planted blackwood, including a magnificent remnant pure blackwood stand on a very steep rocky south-facing slope. The growth and form of this native and planted blackwood varied enormously. Some were small and stunted, while others showed great growth potential. South facing slopes and wet gullies did not always have the best blackwood. Soil type and depth were obvious facts affecting growth. The owner also mentioned soil pH. Apparently much of the farm has very acidic soils with pH below 6.0. At this soil acidity many legumes, and presumably blackwood included, show reduced growth and vigour. Agronomists generally recommend neutral to slightly acidic soils (pH 6.0 – 7.0) for best legume growth. I’m not aware of any research where the affects of soil pH on the growth of blackwood or other Acacias has been done, so there is an opportunity for some practical research here.

I definitely found this farm to be a learning experience with the unexpected growth behaviours, and the obvious failures of blackwood planted on the wrong sites and the lack of timely management. But these were countered by the unexpected successes of ridgetop blackwood using shade and shelter. This farm shows plenty of potential for growing good plantation blackwood, but with issues of soil acidity and depth that need to be understood and managed. Where they are an option, lower slopes are preferred for blackwood plantations, rather than upper slopes and ridgetops. This farm still has plenty of areas that are underutilised and could be considered for blackwood plantation. Past experiences and mistakes can be used to help guide future successes.

P8110115sP8100105s

From Liability to Opportunity

Taylor_mini_gs_blackwood_2012

A Taylor Mini GS Blackwood guitar.

Tasmania is sitting on a fantastic business opportunity that few people know about, but this opportunity remains unrealised because it involves the forest industry, and while the forest industry remains highly politicised the opportunity is stillborn.

I have written previously about the potential of the tonewood market to change the future of the blackwood industry. Gibson, Fender, Martin and Taylor are the four major guitar makers in the USA. To date two of these makers have used Tasmanian blackwood in their guitars for limited production models. These are major instrument-making companies with big international profiles.

Traditional tonewood supplies are becoming increasing scarce and major guitar makers are scrambling to find certified, sustainable supplies of quality tonewoods. Tasmania is sitting on a small goldmine and doesn’t know it.

Robert MacMillan of Tasmanian Tonewoods tells me that two of these US makers are sending teams to Tasmania in the next few months to try and negotiate supply contracts particularly for blackwood timber. But the last thing these companies want is to become entangled in forest politics. Like all good companies they know that any bad publicity can quickly destroy company reputation and profits. In addition to avoiding political intrigue these companies would also prefer to source their timber from certified suppliers. Robert also informed me that for the past 5 years he has refused business with a third major US maker because he cannot guarantee the supply of blackwood.

This is just plain stupidity and reflects the poor state of public forest policy and management in Tasmania.

While we are talking relatively small volume, high value markets, the potential demand is more than enough to make a significant difference to the growing and selling of blackwood in Tasmania.

Is Tasmania up to the challenge?

These companies are well aware of the sovereign risk associated with the current major source of blackwood timber from public native forests. Even if the IGA is successfully negotiated and legislation passed through State parliament, the risk may be reduced but it will always be present. That is the nature of politics and the management of public assets. The future supply of blackwood timber from public native forests is also bound to the commercial viability of the greater native forest industry, for which there is still considerable uncertainty.

Robert is keen to access more blackwood and other tonewoods from private land to help supply these major US customers.

There is a very large existing native blackwood resource on private land in Tasmania, which currently has little or no commercial value. Much of it is of poor form, and much is still too small to be harvested. But some of this resource has the potential to supply the international tonewood market. Logs as short as 1.2 metres in length can be sawn for tonewood. Realising the commercial value of this private resource will require resolving a number of issues. A major issue will be how to wrap this existing private blackwood resource into a forest certification scheme. A Blackwood Growers Cooperative would provide a possible solution to this problem, with ongoing management and plantation establishment to provide a sustainable resource.

As New Zealand farmers have discovered blackwood is an ideal farm forestry species. It is the only Tasmanian native tree that is currently known to be profitably grown in plantations to produce high quality timber. And as I am discovering in my travels around the State, many farms have land ideally suited to growing blackwood. In addition the forest industry needs to break away from its dependence on the public native forest resource, and broaden and strengthen its support base. Put these two factors together and you have the basis for a Blackwood Growers Cooperative.

Tasmania could become the proud home of one of the worlds few certified and sustainable high-quality tonewoods, providing income for Tasmanian farmers and a range of associated businesses. The blackwood industry could become a high-value niche industry to join our truffle, wasabi, saffron and wine industries. I’m getting plenty of interest from the Tasmanian rural community; international buyers are coming; now can our politicians look to the future of the forest industry?

August trip to the north

I had another successful and enjoyable trip around the north west last week, visiting farmers/landowners and attending the Australian Forest Grower (Tas branch) AGM and annual dinner.
 
I will post a few property reports here in the next few days with experiences and insights learnt from a couple of farms I visited, including a few surprises.
 
The AFG AGM and dinner gave me some exposure to the private farm forestry community. It seems to me that many in the industry are still in a state of denial, still hoping that the old days will come back; or hoping that having someone to blame will somehow solve the problems of the industry. There was a big turnout at the annual dinner in Launceston with three very interesting presentations, but the elephant in the room was deliberately ignored.
 
I will soon be posting an update on a very important opportunity that will shortly be knocking on Tasmanias door, that directly affects the future of blackwood and the Blackwood Growers Coop proposal. So stay tuned!

Forestry talks: no one wants to be first to walk

http://www.theaustralian.com.au/national-affairs/state-politics/forestry-talks-no-one-wants-to-be-first-to-walk/story-e6frgczx-1226445148657

This article in The Australian newspaper today paints a bleak picture for an IGA agreement being successfully negotiated.

It seems after two years of negotiations the parties just can’t get there; and no IGA = no blackwood growers cooperative.

My advice would be to call in a professional facilitator. When everyone around the table has an agenda it is difficult for new ideas and new approaches to be heard. That is where a professional facilitator comes in very handy. They are experts at freeing up discussion and challenging fixed positions, which is exactly what the IGA parties need.

More than likely after 2 years they are all physically and mentally exhausted, and absolutely dread the idea of more discussions. That’s how they looked on the TV the other night – like zombies. It is time for a radical change of approach. Hop on a bus guys and take a field trip – go and walk in the forests together and go visit a sawmill. Go and visit Lifestyle Furniture in Salamanca and talk to the owner. Then you might get some new ideas.

I tend to agree with Jonathon West who predicted that the failure to reach an agreement would see both the destruction of the remaining old-growth forests AND the destruction of what remains of the forest industry. And the damage and division inflicted upon the Tasmanian community would have no resolution. The anger will linger for decades and likely be transferred to a new context.

As Tasmanians we need to demonstrate some maturity and ability to resolve our own problems. Otherwise our future will look very bleak indeed.

Coop Update:

I continue to get 2-3 enquiries per week from farmers and landowners interested in being part of a blackwood growers cooperative. This is very encouraging. I only wish some of this positive energy and enthusiasm for the future could be transferred to the IGA members.

Cheers!

Treegrowers’ Co-operatives: The Key To The Future Of Farm Forestry

Here is a very informative article I found that discusses farm forestry cooperatives in Australia.

http://www.coopdevelopment.org.au/treecoops.html

Overall the article is positive about farm-forest cooperatives, but many of the industry and policy issues that existed in Australia in 1997 when the article was written still persist today.

Of particular interest and relevance is the discussion on the situation in Tasmania, and the factors that have undermined and continue to undermine the commercial viability of the industry here.

http://www.coopdevelopment.org.au/treecoops.html#effect

I have contacted Tony Gill, the author of the article, to seek his help with the blackwood growers coop.

Happy reading.

Market development with NZ’s specialty timbers

Those clever Kiwi farmers are at it again.

Here’s a news story of interest to special species growers everywhere, but especially in New Zealand.

http://www.fridayoffcuts.com/#12

And if you visit the NZ Farm Forestry Specialty Timber Market website as directed in the article you will find plenty of information about New Zealand farm-grown blackwood.

Check it out.

Another successful trip north

I spent three enjoyable days this past week touring the north.

Property visits

The two farms I visited turned out to be ideal for growing plantation blackwood. They also have good native farm blackwood that could be managed for commercial, genetic and other benefits.

One farm was a typical north east dairy farm with well managed paddocks, interspersed with short steep slopes, gutters and difficult corners that will make ideal sites for growing commercial blackwood. In total these areas added to about 10 ha. There was plenty of existing native blackwood some of excellent quality. The owner is keen to get started and believes the Coop is a great idea.

The second farm was a mixed business (including farm forestry) located in the north west. The farm is in a sheltered valley at 400m altitude on basalt soils. I had previously regarded 400m as being marginal for growing plantation blackwood due to the increased frost risk, which would result in reduced growth rates and poor tree form. Instead what I found was some of the most magnificent native farm blackwood I have ever seem. In addition, the landowner had recently felled some trees so we could check the annual rings for growth rates. These clearly showed that at these altitudes on good sites blackwood can grow at 2cm diameter increment per year over an extended period.

What this means is that there is potentially more suitable land than I had originally anticipated. Shelter is still important especially at these higher altitudes, but I am now more confident in recommending planting on good sites at these higher altitudes, especially if it produces trees like those I saw on this north west property.

Like the NE dairy farmer, this farmer also appreciates the commercial potential of blackwood but is cautious to invest further in farm forestry given his experience with MIS schemes, and the current uncertainty surrounding the forest industry. I’m hoping he will come on board and establish his own blackwood plantation. His land certainly has great potential.

Strong interest from the rural community

As a result of my promotion of a blackwood growers cooperative there are now over 30 ha of farmland either planted or committed to being established to blackwood plantation over the next 12 months. All of this land is ideally suited for growing commercial blackwood. This has been achieved with limited advertising and promotion. This is just based on farmers passion and belief in the commercial future of blackwood, no financial incentives, no existing coop.

I am now confident there is plenty of suitable land and strong interest from landowners. This is a significant milestone in getting a cooperative going.

However this progress and momentum won’t last long unless we get more political support and funding under the IGA. To date I’ve been running all of this off my own savings. I have no income. I am passionate about using my expertise and knowledge, and the passion and interest in the Tasmanian community, to get a blackwood growers cooperative established. I will assist existing plantation owners in establishing and managing their plantations through to the point where they are fully pruned and ready to be left to grow to final harvest. But if I can’t get funding then I will have to abandon this dream and find another source of income.

ABC Local Radio

A few weeks ago I received a phone call from ABC rural reporter Rosemary Grant. She was interested in the coop proposal and wanted to find out more. My trip north provided an opportunity to catch up with Rosemary. We recorded a spontaneous interview which I wasn’t expecting to happen.  Like so many Tasmanians Rosemary has plenty of her own blackwood stories, so she appreciates its social and cultural importance. Hopefully there will be a blackwood coop story on the ABC Rural Report soon. Thanks for your interest Rosemary.

http://www.abc.net.au/rural/regions/northerntas

Carrabin plantation update

Finally I had a free afternoon so I caught up with Gilles Carrabin where we spent two hours marking trees to begin the thinning process for this great blackwood plantation. Read my last update to find out more.

http://www.blackwoodgrowers.com.au/carrabin-blackwood-plantation-continued

I hope we can get the first phase of this thinning done this winter and allow this plantation to continue growing.

Cheers!

Acacia koa, acoustics and guitars

Check out the first six and a half minutes of this video from Acoustic Addicts where they talk about Acacia koa and its acoustic qualities as a tonewood. Very interesting and entertaining.

The rise of blackwood as a quality tonewood is largely due to the heritage of Koa and the Hawaiian music craze of the 1920’s.

As the supply of Koa timber from Hawaii continues to decline so the fortunes of blackwood as a quality tonewood continue to rise.

Cheers!

Blackwood sawlogs achieve record price at auction

Ist_log

(Blackwood Market Report #1)

If only!! Headlines like this should have been appearing regularly in our newspapers over the past 20 years or more.

Competition!

OK! Here is some homework for readers of this blog. Please write me an essay of 250 words or less (dot points are fine) on the following:

Q. Why would publicity like the headline above be important to the forest industry, and what would be the benefits to the Tasmanian community and particularly to the rural community?

The winning entry will be posted on this blog and will receive a free bottle of Tasmanian wine. YES I’M SERIOUS ABOUT THIS!

 

However instead of this kind of major market profile one of the great disincentives to investing in forestry in Australia is the lack of proper market processes that provide information on price, demand, quality, and markets. Without this basic fundamental information it is very difficult to justify long-term investments in planting trees for wood production. There are other benefits to both the forest industry and the community that I hope readers will help to expand on in the coming weeks (see above competition).

So when was the last time anyone saw a forest products market report in Tasmanian Country? No I didn’t think so!

The Blackwood Growers Cooperative appreciates that issues of market competition, transparency, product differentiation and segregation are critical in achieving the best financial outcomes from our forests and plantations. They are also vital in stimulating investment in forestry, especially given the long investment periods involved.

One of the key objectives of the Blackwood Growers Cooperative, as part of its strong commercial focus, will be to increase market information to allow farmers to make better informed investment decisions and improve the profitability of blackwood plantations.

As Australia’s premium appearance-grade timber species the market for blackwood logs should be as transparent and competitive as possible to help stimulate value-adding and investment. Instead the opposite situation prevails. Nevertheless there are enough snippets of information available to provide some comfort that blackwood plantations will be a profitable investment.

Island Specialty Timbers

Island Specialty Timbers (IST) (islandspecialtytimbers.com.au), run by Forestry Tasmania, is one of only two forestry organisations to provide publically available competitive log price data in Australia. IST holds regular public tenders for small parcels of specialty timber logs including blackwood, and publishes the results. These are not stumpage prices but could be regarded as indicative “mill door” prices. The Tender Prices provides information by species and broad quality classes on logs that have been sold by public tender.

Here are general historical prices posted on their web site at June 2012:

·         Blackwood log shorts, plain grain, $275 / m3

·         Blackwood logs with birds-eye figure – from $550 / m3

·         Blackwood stump sections with fiddle-back grain – $500 – $800 / m3

·         Blackwood logs with fiddle-back grain – up to $1900 / m3

And here are the results for the May 2012 auction for individual blackwood logs:

·         log 8, Blackwood log, good size and quality, $480 / m3

·         log 9, Blackwood log, average quality, $390 / m3

IST “generally only offers material for sale by tender whose quality is very good or better”. However there are no real log quality specifications (eg. Heartwood colour, density, figured grain, log diameter, length) so the relationship between price and log quality is pretty vague. It is expected that plantation-grown blackwood timber would generally be equivalent to “plain grain” quality.

So good size and quality “plain grain” blackwood logs are currently selling for ~$500 / m3 mill door.

Unfortunately IST does not present any time series price data to track changes in the market over time. Is the price for blackwood increasing or decreasing? Is it seasonal and subject to availability? These questions are important to potential growers.

How applicable are IST prices to plantation-grown blackwood?

The answer to this question is both technical and market driven:

Research has shown that blackwood timber from native forests is very variable in quality, ranging from very poor to very high quality. This is due to both environmental and genetic factors. The same is also true of plantation blackwood timber at the moment, because there is not yet a blackwood breeding program. Research has shown that blackwood can be grown in plantations without any negative impact on wood quality, so it comes down to genetics and the site.

As for markets it becomes a matter of matching expectations with reality and price. Is plantation blackwood timber fit-for-purpose? There are indications that New Zealand farmers are having no trouble selling good quality, plantation-grown blackwood timber into their domestic market. However the volumes being harvested are still too small to establish a market price.

Given the tiny volumes sold by tender by IST how indicative are they of general market prices? 

A very important question and one that seems impossible to answer. Some time series data from IST on blackwood log prices would help shed some light on the problem. If real prices have been increasing over time that would be a positive indication. Another aspect affecting blackwood price is future supply. The Forestry Tasmania 2010 Special Species Strategy estimates 10,000 m3 per year of blackwood sawlog supply from public native forest until 2019. After that year no figures are available. Most of this blackwood will come from harvesting of mature eucalypt forest. Regrowth eucalypt forest has little or no blackwood sawlog. So regardless of the outcome of the forestry IGA the production of blackwood sawlog from public native forest will decline. This will have a positive impact on prices.

New Zealand farmers are expecting to harvest approximately 300 cubic metres of premium plantation blackwood sawlog per hectare after a 35 to 40 year rotation. Using the IST indicative price of $500 / m3 for quality plain-grain blackwood that equates to $150,000 per hectare mill door value. Subtract harvesting and transport costs to get an approximate price at stump. Imagine what the value per hectare would be if we can clone and grow fiddleback blackwood (see further discussion below).

New Zealand

I expect that once significant volumes of plantation blackwood timber start to appear in New Zealand in the next few years that a transparent competitive market price will become established. This will help us to understand the blackwood market and encourage investment in blackwood plantations in Tasmania. The New Zealand Farm Forestry Association is gearing up to help farmers market the growing volumes of minor species including blackwood, that are expected to become available in the next few years.

Demand

As a consequence of promoting the Blackwood Cooperative I am starting to get regular enquiries from sawmillers, furniture makers and other customers looking for sources of blackwood timber from private landowners. These people understand that current and future supplies of blackwood timber from public native forest are limited and precarious. Some of them also want to reduce their exposure to the perpetual political risk inherent in the public native forest industry.

While this is not my current focus, I am certainly happy to help connect blackwood growers with potential customers. Plenty of Tasmania farmers already have blackwood trees and stands on their properties. Some of these will have immediate commercial value. If you are a farmer wanting to understand the commercial value of your existing blackwood and how it can be realised/improved please contact me (mob. 0428 754 233).

“Tell him he’s dreaming”

The highly variable nature of blackwood in terms of tree growth and form, and wood quality is a major challenge in the development of commercial blackwood plantations. One of the objectives of the Cooperative therefore, will be to establish a blackwood selection and breeding program. This could be done in cooperation with the New Zealand blackwood growers (AMIGO), and possibly also the Chilean blackwood community. The objectives of the breeding program will be:

1.    To improve the growth and form of plantation blackwood trees, in order to reduce rotation times and reduce silvicultural (pruning) costs;

2.    To improve the quality and consistency of plantation blackwood timber;

3.    To identify and select a range of premium blackwood genetic material for possible commercial development, including:

·         trees of outstanding growth potential;

·         trees with outstanding wood quality based on wood colour, wood density or figured grain (eg. fiddleback and birdseye);

·         trees that have wood qualities that meet particular high-value niche markets (eg. the tonewood market).

All of these objectives are aimed at improving the profitability of commercial blackwood plantations. One example is that of fiddleback blackwood. Over the years I have known people who have made attempts at cloning fiddleback blackwood. I believe this can be done, and with the very high prices paid for fiddleback logs, the commercial potential is obvious. The Blackwood Cooperative would form the natural focus for this kind of commercial research.

Another example is the tonewood market. A huge amount of research has been done and continues, into the relationship between wood quality and its impact on the sound quality of stringed instruments. The acoustic guitar market is the main market for blackwood tonewood. Guitar makers worldwide are facing declining supplies of quality tonewoods and are looking for sustainable supplies. Prices for quality tonewoods are increasing. Blackwood is one of the few established quality tonewoods that can be grown in commercial plantations. The opportunities to supply this market and to cooperate to develop selected genetic lines to meet tonewood market requirements seem obvious.

Apologies for such a long blog. I hope you found it interesting. And please enter the competition for that great prize.

Cheers!

Taylor GS mini blackwood guitar

Taylor_mini_gs_blackwood_2012
Taylor Guitars based in San Diego, California, are one of the major American makers of acoustic guitars.
Here is their latest model guitar featuring Tasmanian blackwood.
Blackwood tonewood timber retails for >$50,000 per cubic metre sawn, compared with normal furniture grade blackwood that retails for ~$4,000 per cubic metre.
At these prices the tonewood market has the potential to have a significant impact on the commercial future of blackwood.
All we need to do is realise that opportunity.
Help us to realise that future by supporting the Blackwood Growers Cooperative.