News Update: Spring 2009

Chairman's Report

AGM THIS 12 NOVEMBER 2009

Our AGM is coming up, providing the opportunity to take stock of what has happened over the year. As usual it is a mix of the cooperative’s timber value-adding business and our attempts to contribute to the sector through R&D and lobbying.

This year has seen the slashing of funding to the 19 Private Forestry Development Committees across the country. It was the Central Victorian PFDC that helped SMARTimbers come into being in 2002 against real odds and supported us through our first three tottery years. Other PFDCs have played an equally important role in their regions. Co-incidentally the Victorian Government slashed funding to private forestry extension, cutting extension staff from 18 to only four, and left most farm foresters with no expertise to call on – just at the time when we need to have support for expanding farm forestry to sequester carbon, substitute industrial timber in lieu of native forest logs and provide biomass for energy.

At the same time the Federal Government ceased funding of Land and Water Australia and the Joint Venture Agroforestry Program was not renewed. This leaves R&D for the sector in an even worse state than previously. SMARTimbers in its small way has produced some useful and informative reports for the sector, and will continue to do so.

We have seen Farm Forestry North East (FFORNE) Cooperative about to close its doors. This was a group we had good and close ties with, and often shared activity in the political arena such as contributing to the new Timber Industry Strategy and to the set up of Farm Forest Growers Victoria (FFGV).

We, however, continue in business, with good sales, an improving balance sheet, and a happy way of telling the policy makers what we think – which is rarely flattering to them or their parentage.

The AGM is on Thursday 12 November at 15 Dawson St Sth, Ballarat (in the first block to the south of Sturt St, and the home of our registered office). Our normal meeting will start at 10.00 am, the AGM at 10.30am, and a light lunch will be served at the meeting at about 12.00.

We have asked Liz Hamilton to talk to us from about 1-2 pm about her recent Gottstein Fellowship study of bioenergy and forestry in British Columbia, Oregon and Montana. Liz is based with the DPI at Colac and Gellibrand and was a farm forestry officer for many years until she metamorphosed into a senior bioenergy officer one night. Last heard of, after attending two large outdoor music events in Los Angeles, she was hitting the Las Vegas casinos before heading for Mexico and Cuba. We expect unusual insights into how things are being done in North America.

The directors as usual are feeling that the B0oard needs fresh blood and invite fresh faces with fresh ideas and energy to join. Not pressuring anyone of course, but it is necessary for cooperatives to grow and renew themselves.

ACTIVITIES

SMARTimbers has contributed to the development of the new Victorian Timber Industry Strategy and will continue to play a role. We also have two members on the committee of the new farm forestry umbrella body Farm Forest Growers Victoria, set up to give farm foresters in this state a unified and greater voice.

By the time of the AGM, we will have met with and taken for a long road trip three senior members of two environmental groups. We feel that it is important that these groups understand the potential for farm forestry to supply industrial round wood, biomass for energy – with both yielding environmental and social benefits.
Since the last newsletter, directors will have spoken at a number of conferences and met with state and federal policy makers. These are times of real change and opportunities may arise that need seizing.

RESEARCH AND REPORTS

Our report on improving the economics of value adding small parcels of sawlog was one of the last pieces of research funded by JVAP. This will be put in a slightly different form and sent out as an electronic publication.

We contributed in various ways to research commissioned by CVFP and undertaken by DSE on fauna in multi-aged plantations and woodlots. This indicates that even very young single-species farm woodlots from about five years old can provide important habitat for birds and bats .

SMARTimbers commissioned and oversaw an important report on how a farm forestry organisation like us can play a prime role in managing, measuring, aggregating and trading carbon credits. This report is posted on our website.

The cooperative contributed to a CVFP project to determine the timing and volume of wood flows along the public road system from forestry in the region. This is vital information for forward planning by shires and VicRoads.

We continue to accumulate information on improving economics of thinning and processing thinnings. In May this year a director visited Elmia Wood in Sweden and an associated seminar and field visits. Information from this visit (which was mostly self-funded, with some sponsorship support from Australian Forest Growers) will add to our knowledge in this area.

SMARTimbers members have contributed to an innovative and far reaching project by the Central Highlands Agribusiness Forum to audit the range of biomass in the region and propose options for converting this to energy .

PRODUCTS AND SALES

Sales have tended to average about $10-15,000 a month and have been little affected by rumours of a global downturn. The great majority of our products are being used as decking, and we are getting a steady stream of repeat orders. We are experiencing our usual lumpy log supply, but the exit from the market place of several competitors has meant we may have an improved supply for several years.
Posts and poles – including vineyard poles – is a potential growth area, which we are developing.

We are continuing to develop a model for firewood sales into Melbourne in partnership with an entrepreneurial city-based farm forester. After an exploratory stage, we hope that it will become a welcome income earner for the cooperative.
Similarly, we hope that the harvest waste from firewood and other harvest can become an income earner as biomass for energy, and we are continuing to work in this area.

CHANGING OF THE FINANCIAL GUARD

Our bookkeeper for some years, Pam Oddie, has opted for maternity. She leaves us with an improved system, a better understanding of our deficiencies and inefficiencies and generally in better financial shape. She put considerable work into making the changeover to a new bookkeeper as smooth as possible. We owe her our thanks, and look forward to our new bookkeeper continuing the process of civilising our systems.

Andrew Lang
Chairman

1. www.cvfp.org.au

2. www.chaf.org.au