Category Archives: Markets

Market failure & responsibility

thelmalouise

One of the major realisations I have made over the past 10 years is the complete failure of forestry and timber markets to take any responsibility for their own future.

Here is just one recent example:

Good Day Dr. Gordon Bradbury,

Hope you can introduce some seller or loggers milling Tasmania Blackwood Logs or lumber etc,

Sir we are Hong Kong based company and looking for looking for Tasmanian Blackwood logs 40cm plus in diameter to import if possible,  1-2×40′ containers, CIF Incheon, South Korea.

Will appreciate if you could send us your complete offer with certificate (FSC/PEFC),, provide some photos for checking the quality and shape on logs, lumbers and veneers, MOq, terms of payment, terms of inspection, estimated delivery time, yard location etc.

Thank you so very much for your kind help

Kind Regards

I get regular emails and SMS messages from people wanting to get their hands on cheap blackwood.

When I try to engage these people in my quest, which is to get the market to take responsibility and support, encourage and reward Tasmanian farmers to grow quality wood for the future, I get excuses of why they cannot help!

Here is one of my standard questions I ask these people:

Q: Do you care about the future of YOUR industry/business?

A: Moan, complain, apologise, blame others, too busy, etc., etc., etc…

Is the forestry/timber market so short-sighted, corrupt and stupid that it is willing to destroy its own future?

It would appear so!!

Log traders, furniture makers, craftspeople, luthiers, cabinet makers, architects, builders, retailers, festival organisers,etc.

Every one of these professions/trades seems to have no interest in their own future.

I don’t know of any other primary industry in Australia that has such a fatalistic attitude. Every other primary industry, beef, sheep, poultry, dairy, vegetables, fruit, grain, etc. all keep their growers uptodate, supported and informed with all the relevant information they need to keep these industries running smoothly and efficiently.

Not the forestry/timber market!

Yes forestry has long investment periods and some other unique characteristics, but this means that the market has to work that much harder to ensure its future.

Having plundered the worlds forests the forestry/timber market seems determined to do a “Thelma and Louise” and accelerate over the cliff to extinction.

And for those log merchants wanting cheap blackwood, all the existing resource in Tasmania is committed. Most of it comes for public native forest for the domestic welfare forestry sector. A small amount is salvaged from private property.

Here’s another way of looking at the issue. How many companies are there in Australia and around the world that use Tasmanian blackwood timber or would like too? Dozens? Hundreds? How many of these companies actively support and encourage the growing of Tasmanian blackwood? My guess! None!! Ziltch!!

I’m happy to be proven wrong.

Very few Tasmanians are planting blackwood for the future and the major reason is the careless attitude of the marketplace. The marketplace has a death wish!!

People I speak to who are interested in planting blackwood I tell them the truth – no one wants you to grow quality blackwood timber for the future. Nobody! No one will support or encourage you. In fact many people are actively working against you!

Why commit to a 30+ year investment growing quality timber when the marketplace couldn’t care less?

ACCC suing Government Business Enterprise (GBE) over alleged anti-competitive conduct

ACCC

At long last the Australian Competition and Consumer Commission (ACCC) is taking action against anti-competitive State Government businesses.

Hooray for that!!

https://www.abc.net.au/news/2019-12-09/accc-suing-tasports-over-alleged-misuse-of-market-power/11781852

And it is in Tasmania!!

Now who would EVER imagine anti-competitive GBE behaviour in Tasmania?

https://www.accc.gov.au/

I’ve written about this issue previously as it relates to the forest industry in Tasmania, particularly public native forestry:

https://blackwoodgrowers.com.au/2016/10/17/competitive-neutrality-in-forestry/

and

https://blackwoodgrowers.com.au/2019/05/13/fsc-supports-illegal-forestry-in-australia/

ACCC Chairman Mr Rod Sims said the case against Tasports was the first of its kind under the amended misuse of market power provision, an “important law reform designed to protect the competitive process and help us address the harm that anti-competitive conduct does to consumers and the Australian economy“.

Does handing out $100 millions of taxpayer dollars over decades to a failed State-owned forest enterprise, which is in direct competition with private forest growers, amount to anti-competitive behaviour?

It sure does!

Does selling 99% of your forest produce “off-market” in long-term secret sales contracts, with absolutely no competition or price transparency, amount to anti-competitive behaviour?

It sure does?

Now is the ACCC prepared to take on any more anti-competitive Government Buisness Enterprises?

I sure hope so!

Wouldn’t it be a laugh for Sustainable Timbers Tasmania to gain FSC Certification, only to then be prosecuted by the ACCC for anti-competitive behaviour?

Only in Tasmania!

Tasmania will never have a proper commercial forest industry until anti-competitive welfare forestry is stopped.

 

“They should have been planting extra trees 15 years ago,” one frustrated sawmill owner said

sawmill3

https://www.abc.net.au/news/2019-11-09/why-the-victorian-government-is-taking-an-axe-to-timber-industry/11687952?fbclid=IwAR0J9KGJbcZCmbexgIqHsrj47aV44vpqJXPjWRmgW2KYhbnZve_hWgExAFI

This quote from a native forest sawmiller pretty much sums up for me why the forest industry in Australia is in such a crisis!

Sure, it’s historical.

It comes from having a forest industry that up until 20 years ago was almost 100% Government run.

Why would anyone other than Government, take responsibility for growing the industry?

That is what the sawmiller meant when he said “they”. Politicians plant trees! Sawmillers cut them down! A complete absence of personal responsibility!!

And that attitude is still the dominant attitude within the forest industry in Australia, even when most timber now grown and harvested in Australia is privately owned.

Here we are in the 21st century and no one in the forest industry in Australia takes any responsibility for ensuring the industry’s future.

And when I say forest industry here I mean anyone whose business relies on wood, from retailers, craftspeople and manufacturers all the way back to loggers and sawmillers.

It is the job of the marketplace to ensure the forest industry has a future, not politicians or taxpayers.

This means an end to Welfare Forestry and a focus on profitable tree growing.

It also means a complete change of attitude and thinking within the industry.

And it means building strong enduring relationships with rural communities.

So when do we begin?

Tasmanian forest industry – at long last something positive!

PFT_forum

It is a rare treat to be able to write something positive about the forest industry in Tasmania.

It may be only a tiny step along the road to commercial and social redemption but I’ll cheer nevertheless!

On the 3rd of July 2019 Private Forests Tasmania (PFT) organised an industry forum to help generate some positive media and momentum, not to mention communication.

A summary of the forum is now posted on the PFT website:

https://www.pft.tas.gov.au/home/home_articles/summary_of_private_forestry_forum2

The summary of the forum is hardly enough to get anyone out of their seats with excitement, but the general tenor of the discussion gives me a small dose of hope for the future.

It seems most/all of the discussion was about commodity wood, with little discussion about high value wood like blackwood or macrocarpa.

If the forest industry wants to have a future it needs to spend at least half of its time and resources working out how to encourage farmers to plant trees. That job IS NOT the responsibility of governments!

History has shown that cutting down forests is easy.

History has also shown that the forest industry has never understood how to get farmers to plant and grow trees (excluding tax-avoiding and investor-robbing scams). In fact history is littered with examples of the opposite trend.

This forum may just become the first small step in the right direction.

It is a shame that the Tasmanian Farmers and Graziers Association (TFGA) wasn’t present. The TFGA would be a useful ally for the forest industry.

https://www.tfga.com.au/farming-enterprises/forestry

It is also a shame that Ministers and politicians can’t keep themselves away from these events.

Most Tasmanians know that as soon as politicians get involved in anything then things very quickly turn bad. The history of the forest industry in Tasmania is one of too much politics.

There have been industry forums like this before but they have been nothing more than soapboxes for politicians. Completely useless and boring to attend.

So full (Ok 8/10) credit to the forum organisers!

Can the formula be developed and extended?

Forums in the north east and the south east of the State?

Perhaps even a forest industry developed Plan that focuses on creating full and positive engagement with the Tasmanian farming community!!

Taylor Presentation Series (PS) Tasmanian blackwood

Taylor PS12ce

The first of the Taylor Presentation Series Tasmanian blackwood models are starting to appear after they were announced in the latest Wood & Steel magazine back in January.

https://blackwoodgrowers.com.au/2019/01/29/tasmanian-blackwood-makes-it-to-the-top-of-the-taylor-tree/

They still haven’t appeared on the Taylor website yet:

https://www.taylorguitars.com/

These are top-of-the-line guitars for people with deep pockets and a love of bling.

Here is a PS12ce with V-class bracing currently at Empire Music in Mt Lebanon, Pennsylvania, USA:

http://empiremusiconline.com/products-page/acoustic-guitar/taylor-ps12ce-first-article-v-class-adirondack-blackwood-18131/#!prettyPhoto[58454]/3/

I like the fact they have given the blackwood the edgeburst effect. I just wish they would use flamed blackwood for the headstock facing instead of ebony.

As I said in my January post for Tasmanian farmers to get their product into the top of the market should be an occasion for recognition and celebration.

Unfortunately that is not how wood markets operate.

Is this extraordinary market achievement resulting in more blackwood being planted by Tasmanian farmers?

Surely it should!

Utilising market forces (price, supply, demand, achievements, etc.) to help drive the future of the blackwood industry should be the backbone of industry and Government policy.

Instead market demand just helps the Tasmanian Government/Parliament justify logging public native blackwood forest in our Conservation Reserves!

https://blackwoodgrowers.com.au/2017/10/23/tasmanian-rainforest-plunder/

Thankfully this is not where Taylor Guitars source their blackwood timber, which comes from Tasmanian Tonewoods salvaged from Tasmanian farms.

https://tasmaniantonewoods.com/

Congratulations to Taylor Guitars and to Tasmanian Tonewoods!

What a great achievement!!

We just need to complete the story….

The burning of Notre Dame and Tasmanian Special Timbers

NotreDameFire

The burning of Notre Dame Cathedral in Paris on 15/4/2019 provides the perfect metaphor for the continuing destruction of Tasmania’s natural heritage.

The world was horrified that the 800 year old World Heritage Listed cathedral was on fire. How could humanity lose such a treasure?

But here in Tasmania 800+ year old heritage is destroyed every single day!

Here in Tasmania 800+ year old trees are cut down every day, at taxpayer expense, to provide a lowly subsistence for the rent seekers in the Tasmanian special timbers industry; sawmillers, furniture makers, luthiers, craftsmen, shop keepers, etc..

Trees such as Celery Top Pine (Phyllocladus aspleniifolius) and Myrtle (Nothofagus cunninghamii) live within Tasmania’s cool temperate rainforest and can live for 800-1000 years, germinating long before Bishop Maurice de Sully commenced the construction of Notre Dame in 1160.

Some of these trees are even in designated Conservation Reserves that were specifically established to protect these very same ancient trees and forests.

Such is the perverse corrupt nature of public native forestry and politics in the island State of Tasmania.

https://www.stategrowth.tas.gov.au/energy_and_resources/forestry/special_species_timber_management_plan

The public response to the damage at Notre Dame has been nothing but extraordinary. €100s millions have been pledged by individuals to rebuild Notre Dame and restore this international treasure.

Meanwhile in Tasmania these 800+ year old trees are destroyed with no process transparency, no FSC certification, at considerable public expense and no thought for the heritage that is being destroyed.

These people are the Notre Dame arsonists of Tasmania:

http://livingwoodtasmania.org.au/

https://www.facebook.com/TasmanianSpecialTimbersAlliance/

and many, many more. They number in the thousands in Tasmania!

Tasmanian blackwood makes it to the top of the Taylor tree

taylor ps tb1

The latest Taylor Guitars Wood & Steel magazine (Vol. 93 2019 Winter, p. 28) shows us that Tasmanian blackwood has finally made it to the peak of Taylors model range.

https://www.taylorguitars.com/wood-and-steel

Fifteen years after introducing Tasmanian blackwood into their limited production and three years after introducing blackwood into their regular production in the 300 series models, Tasmanian blackwood is now included in Taylor’s top-of-the-line Presentation Series (PS) models.

The Presentation Series are an annual limited edition series of guitars that feature premium woods and premium appointments.

Our Presentation Series celebrates the finest in materials and craftsmanship detail. This year we’re thrilled to introduce the wood pairing of figured Tasmanian blackwood and Adirondack spruce to the collection. Tonally, we love blackwood — it’s loud, responsive and warm, yet with a clear focus. The sets we’ve selected boast a beautiful blend of variegation, figure and grain structure reminiscent of Hawaiian koa, featuring golden-brown and dark amber ribbons of color. Together with a top of creamy Adirondack spruce, this guitar is no mere showpiece; its dynamic voice is ripe for the picking (or strumming). Or, if you prefer the rich, dark variegation of a sinker redwood top, the option is yours. We’ve also shifted from a beveled armrest to our radius contouring, which ensures comfort for players of all sizes. Our elegant suite of aesthetic appointments saves the understatement for other models, tracing the lines of the guitar with sparkling paua and other eye-catching ornamentation, including our intricate Nouveau fretboard/ peghead inlay. From every angle, these guitars deliver stunning aesthetic appeal.

Tasmanian blackwood Presentation Series models to become available are: PS12ce, PS12ce 12-Fret, PS14ce, PS16ce, PS56ce, PS18e.

These guitars are so new they haven’t yet made it onto the Taylor website. Stay tuned!

https://www.taylorguitars.com/guitars/acoustic/features/series/presentation

Prices for Presentation Series guitars start around $US9,000. These are top-shelf guitars for people with deep pockets.

Even despite the inevitable “koa’s poor cousin” comparison, Taylor are obviously confident they are making progress getting Tasmanian blackwood accepted into world guitar markets.

Congratulations Taylor Guitars!!

For Tasmanian farmers to get their product into the top of the market should be an occasion for recognition and celebration.

Unfortunately that is not how wood markets operate.

Is this extraordinary market achievement resulting in more Tasmanian blackwood being planted by Tasmanian farmers?

Surely it should!

Utilising market forces (price, supply, demand, achievements, etc.) to help drive the future of the blackwood industry should be the backbone of industry and Government policy.

Unfortunately market demand just helps the Tasmanian Government/Parliament justify logging native blackwood forest in our Conservation Reserves.

Thankfully this is not where Taylor Guitars source their blackwood timber, which comes from Tasmanian Tonewoods salvaged from Tasmanian farms.

https://tasmaniantonewoods.com/

But in the opaque world of the global timber trade politics and greed often confound good intensions.

So here’s the take home message:

Tasmanian blackwood timber achieves another major international market milestone (thanks Taylor Guitars!!!), but no Tasmanian farmer will learn anything about this achievement, let alone be moved to invest in planting blackwood for the future.

Are you beginning to understand the problem we face?