Tag Archives: Bunnings Hardware

Bunnings finally takes a stand

Bunnings

I wrote back in May about Bunnings, their fantastic timber policies, and how it was time for Bunnings to live up to those policies when it comes to their support for public native forestry in Australia:

https://blackwoodgrowers.com.au/2018/05/12/bunnings-timber-price-list-update/

Well it seems the time has come:

https://theage.com.au/politics/victoria/timber-industry-bid-to-prove-its-green-credentials-falls-flat-20180801-p4zuxv.html

Federal and State Governments refuse to resolve the disaster that is public native forestry in Australia so its time (finally) for the market to take responsibility.

Hooray for that!!

Hardware chain Bunnings has put VicForests on notice that it must reduce its impact on Victoria’s native forests or risk losing its custom, after the state-owned forestry company failed in its [third] bid to achieve green [FSC] certification.

Bunnings needs to also issue this warning to Tasmania’s State-owned forest agency Sustainable Timbers Tasmania.

https://bunnings.com.au

http://vicforests.com.au

https://sttas.com.au

Bunnings is Australia’s largest hardware chain with annual turnover of $11 billion and over 31,000 employees. It is Australia’s largest timber retailer.

Bunnings could be about to change the face of the forest industry in Australia and bring the industry into the 21st century.

So what else could Bunnings do to support a real forest industry in Australia?

The future of the forest industry in Australia is with profitable private tree growers.

Bunnings needs to start talking with farmer groups. There is a long road ahead and many years of neglect to make up, but forestry is about the long term.

Since Bunnings is also in New Zealand they should form a partnership with the New Zealand Farm Forestry Association (NZFFA), and support Kiwi tree growers.

Hooray for Bunnings!!!

Addendum

Upon further reflection one has to wonder exactly what is Bunnings hoping to achieve from its warning to Vicforests?

Vicforests has now failed to achieve FSC Certification three times!!

What possible assurances or changes in behaviour can Vicforests provide that will satisfy Bunnings but failed the Forest Stewardship Council test?

Surely a “three strikes” result from the FSC should be enough for Bunnings to stop supporting Vicforests.

Public native forestry in Australia is fundamentally compromised. It cannot achieve suitable environmental, community, political and commercial outcomes all at the same time. That is mission impossible!!

Bunnings and the rest of the timber market need to wake up to this fact.

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Bunnings Timber Price List Update

Bunnings

It’s been almost 2 years since I last reviewed Bunnings timber prices.

https://blackwoodgrowers.com.au/2016/07/01/bunnings-timber-price-lists/

Bunnings timber prices (per linear metre) are readily available on their web page.

https://www.bunnings.com.au/our-range/building-hardware/timber/dressed-timber/hardwood

From these I have created the following chart showing the current retail price for Tasmanian Oak Select Grade Dressed All Round (DAR), together with two previous price points.

Prices are shown per linear and cubic metre.

BunningsTasOak3

The retail price for tas oak hasn’t increased that much over the last 2 years. This is curious given there is supposed to be a timber shortage due to the building boom. Obviously the building boom is doing nothing for the fortunes of public native forestry.

Current retail prices range from $5,850 to $8,900 per cubic metre.

These prices do not reflect the actual cost of growing the wood and managing our public native forests as this recent article in The Guardian newspaper makes perfectly clear:

https://www.theguardian.com/environment/2018/mar/29/tasmanian-forest-agreement-delivers-13bn-losses-in-giant-on-taxpayers

Almost all Tasmanian oak comes from the harvesting of Tasmanian public native forests.

Bringing Tas oak to market comes at the expense of Tasmanian schools and hospitals, roads and public housing; never mind the 35 years of bitter community conflict.

Australia will never have a real forest industry whilst the market continues to support uneconomical public native forestry.

So where does that leave Bunnings?

Bunnings seems to be a pretty good company and corporate citizen. They have some good policies:

https://www.bunnings.com.au/about-us/our-actions/bunnings-and-timber

Our actions

We pursue sustainability within our operations by striving to make them socially responsible, environmentally aware and economically viable.

Bunnings has a great Responsible Timber Sourcing Policy and is obviously proactive in helping protect the world’s forests:

We are confident that more than 99 per cent of timber products are confirmed as originating from low-risk sources including plantation, verified legal, or certified responsibly sourced forests. Within that, more than 85 per cent of our total timber products are sourced from independently certified forests or sourced with demonstrated progress towards achieving independent certification, such as that provided by the Forest Stewardship Council and the Programme for the Endorsement of Forest Certification (PEFC).

We continue to seek advice from Greenpeace and WWF on our procurement and we remain grateful for their ongoing support.

We are proud that our long term efforts and commitment to timber procurement has provided customers and team members with the knowledge that our timber is responsibly sourced.

Bunnings is Australia’s leading retailer of Tasmanian oak timber, legally sourced from public native forests in Tasmania, and certified under the Australian Forestry Standard/PEFC, but not under the Forest Stewardship Council (FSC).

I think it is time for Bunnings to live up to its policies and stop plundering Tasmania’s forests and Tasmanian taxpayers.

It is time for Bunnings to stop selling Tasmanian oak.

Public native forestry in Tasmania is not profitable or sustainable. Never has been and never will be.

Bunnings in New Zealand does not sell any dressed hardwood timber at all. None.

I can’t see why Bunnings Australia can’t do the same.

Come on Bunnings!

Live up to your policies!

 

Bunnings Timber Price Lists

Bunnings is the largest hardware chain in Australia. When Australians think of timber they think of Bunnings. Bunnings sets the baseline when it comes to timber prices.

https://www.bunnings.com.au/

Bunnings two main timbers are Tasmanian Oak and Radiata pine. If you want timber other than these species you need to go to a specialist timber retailer. But Bunnings don’t show their prices on a per cubic metre basis, so I’ve done the homework.

Firstly the price list for kiln-dried, dressed, Select Grade Tas Oak as at June 2016:

BunningsTOak0616

Tasmanian oak is a native forest hardwood tree, so the costs of growing Tas oak are considerable in terms of management, regulation, roading, harvesting and transport. Most Tas Oak comes from public native forests managed by Forestry Tasmania. Forestry Tasmania is NOT run as a fully commercial profit-driven business, and has received considerable taxpayer subsidies over many years.

So these prices do not reflect the actual cost of growing the timber.

Prices range between $5,500 and $8,500 per cubic metre, with something of a trend of increasing prices for larger dimension timber to (perhaps) reflect the increased cost (to the taxpayer) of growing bigger, older trees.

Next is the price list for Radiata pine.

Radiata pine is a highly domesticated plantation-grown tree species, where scale, volume and efficiency dominate the market. It is grown primarily for the construction and pulp markets. The pine market is extremely competitive so these prices should accurately reflect the dynamic between supply and demand and the cost of production.

The other point to be made here is that Radiata pine must represent the absolute cheapest that solid wood of any kind can be commercially grown. It’s the bargain basement of solid wood prices.

The price list is for Standard grade pine, with Premium clearwood prices shown in yellow.

BunningsPine0616

Growing Premium grade, knot-free pine requires thinning and pruning the plantations at significant cost compared to growing Standard grade, hence the higher price for Premium grade pine.

Does the 100% markup per cubic metre for the Premium pine make it more profitable for the grower? I hope so!

Prices for the Standard Grade pine range between $1,100 and $3,500, whilst Premium grade ranges between $2,400 and $3,500 per cubic metre for a limited range of sizes.

And here we have a retailer selling blackwood for the same price as radiata pine:

https://blackwoodgrowers.com.au/2015/10/19/blackwood-pricing-and-the-forest-industry-1/

It’s completely insane!

According to Bunnings Select grade Tasmanian oak is 2.5 to 5.2 times more valuable than Standard grade radiata pine (when comparing the same sizes), and 1.7 to 2.6 times more valuable than Premium pine.

Given that Tas Oak is much slower growing than pine and is a native forest species (ie. higher cost of production, lower productivity), one would think that a 2x times price premium can in no way reflect the relative costs of production!

No wonder then that our native forest industry is in such trouble with give-away prices like these.

Also given that Tasmanian oak is not generally regarded as a premium appearance grade timber and is relatively abundant, what would be the relative price of select grade blackwood, which is regarded as a premium timber and is relative scarce? Would it be 3.0 times the price of Premium grade pine, ie. $7,500 per cubic metre? Or 2.0 times the price of Select grade Tasmanian oak, ie. $12,000 per cubic metre?

Surely Tasmanian blackwood timber should be priced well above Tasmanian oak!!

For my previous reviews of timber (including blackwood) price lists see here:

https://blackwoodgrowers.com.au/category/price-lists/