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News Update: Spring 2008
Chairman's Report
AGM this 11 November 2008
Our 2008 AGM will be at 'Galwiji', the property of new members,
the Pryor family, near Buninyong on 11 November. We will continue
the general format of last year where we had a speaker and then
a general discussion. The format of the day will be a short AGM
from 11.00 to 11.30 a.m. Then we will hear from the two sawmillers,
who we currently use for milling, about the industry and how they
see SMARTimbers activity from their perspective.
We are inviting the other people in our chain of supply to this
session - the harvester contractor, the kiln drying business and
the principal of the business which does all our processing. It
will be a unique chance to learn more about the nuts and bolts of
this sector of the industry.
You will receive information about the AGM separately, including
the election of directors, location and starting time.
New reports available for download under this menu
The Chairman's report from his Gottstein Fellowship study tour looking
at farm forestry and bioenergy policy in Scandinavia over May and
June this year is now available on the website for free download
- see opposite.
The Rural Industries Research and Development Corporation (RIRDC)
has finally published the results of the SMARTimbers market research
as a free research report download on their website. The published
report is also available for download on this website under the
MARKET RESEARCH heading opposite.
Meeting of Victorian grower groups
From 1 July this year, the Department of Primary Industries cut
funding to the Private Forestry Unit and the Victorian Private Forestry
Development Committees (PFDCs), while, at the same time, the Federal
Government also ceased funding of PFDCs. In response, SMARTimbers
joined in organising a meeting of all 12 Victorian grower networks
to develop a formal incorporated body. This statewide body will
look to represent the 1,200 growers and their 14,000ha of farm forestry,
as well as possibly assisting in developing commercial activity.
Over the last few months some of us have met with politicians involved
with primary industry policy on both sides of the federal and state
governments to inform them of SMARTimbers activity, as a model for
the development of more commercial farm forestry.
Finalising of the first Joint Venture and new Joint Venture
Our first Joint Venture (JV-1) has finally been wound up with the
distribution of a lower return than anticipated. However, in addition
to providing a significant amount of feedstock for the cooperative
to sell for members and to meet demand, the data obtained from JV-1
should mean a significantly better return from the next JV.
At the last board meeting it was resolved to begin JV-2. This JV
will aim to raise up to $150,000 in units of $5,000, which will
allow the accumulation of a larger volume of air dry feedstock.
The directors are confident that our planned analysis of the data
from the last JV, identifying inefficiencies in the supply chain,
will result in improved returns for members from sale of their product.
The analysis of JV-1 forms part of a research project that is being
funded by RIRDC. A proposed general price increase for our products
in 2009 should also help improve returns.
Please send expressions of interest in JV2 to Gib Wettenhall, our
Secretary.
Sales and orders
Sales at present have been averaging about $12-14,000 a month. It
is clear from feedback that our customer base is accepting us as
a supplier of quality product and we are getting return orders of
a significant size. Unfortunately, for the first time since commencing
in 2003, we have run out of some feedstock before new season's feedstock
comes on line. Our main product is 85x19mm decking, with 135x19
mm decking and cladding also selling well. At the September Board
meeting, it was resolved to increase our prices by 5% from 1 January
2009.
Veneer: Sales of veneer have been minor and steady. We are intending
to have another line of about 1,000m2 of veneer sliced when suitable
logs are available.
Poles: Last year, a member bought straight small diameter sugar
gum logs from a harvest and these have been selling into a new market
as building poles. This year, two members are supplying this market
Shorts: For every 100 linear metre of board that is profiled into
decking and sold, we are left with about 5 linear metres of shorts;
i.e. quality board of under a metre long. We are beginning to sell
this material to an outdoor furniture maker. We are also exploring
selling it to become parquetry.
Research and development
Two projects are being finalised - one on the development of a management
format for farm forestry plans that complies with group certification
criteria. The other, being managed by SMARTimbers for Central Victorian
Farm Plantations, is developing more cost effective processes for
first thinnings, and also development of products, including posts
and chip. We have collaborated with DPI on part of this work.
Another project under development over quite a long time has finally
received funding from RIRDC and is about to start. This one aims
to analyse the process of milling and handling we use, identifying
inefficiencies and developing improvements that will enhance the
economics of processing. We expect the information will enable farm
forestry groups that are value-adding their own timber to achieve
far better outcomes. The expected completion date is May 2009.
Log supply
Two members have sent parcels of logs to our two contract sawmills.
To date, this totals about 270 tonnes, and some is already sawn
and drying. We anticipate that more logs will become available later
in the year.
Forest management certification
SMARTimbers has been a leader in the development of group certification
for farm forestry. Since inception, the cooperative has pursued
the objective of gaining certification for our members in order
to back our claim as leaders in sustainable management. Until now,
however, the costs have outweighed the benefits. Recently, we been
worked with the National Association of Forest Industries (NAFI)
to develop a more affordable process. At a recent board meeting,
directors voted to proceed with assisting some SMARTimbers members
to gain Australian Forestry Standard Certification within this project,
and to provide this service to members of other groups.
New members
We have quietly begun a membership drive with the aim of increasing
from about 40 to about 80 members by the end of 2009. We welcome
the following new members:
Bill and Cee Blackwell Cavendish
The Pryor family Buninyong
Liz Molesworth Ballan
Estate of George Russell Skipton
The Board hopes that you will be able to attend the Annual General
Meeting, and we look forward to seeing as many members as possible
on the day.
Andrew Lang
Chairman
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