Now is the time to plant fast-growing hardwood trees,
The world market for timber is undergoing a sea-change, and we are moving from a situation where buyers of wood have been able to play the field, to a situation where log sellers will have the luxury of being able to choose among bidders.
As world population and economic growth occur over the next two decades, demand for some products will rapidly outstrip supply. The highest gains are likely to be for suppliers of large diameter knot-free hardwood, a product which has been historically sourced from old-growth and south-east Asian rainforests.
If world demand grows at the moderate rate predicted by the FAO of 2.2% per annum for industrial wood, then by the year 2010, the world is going to have to find an additional 1,000,000,000 cubic metres of timber PER YEAR, or, 60% more than 1990 usage. This can only be supplied if plantations are established NOW. Supply from Malaysian and Indonesian rainforests, which supply around 40% of the sawn hardwood traded on world markets, cannot be sustained at their current rates for more than 10-15 years, let alone massively increased.
If there is a shortfall in supply, prices will have to rise. This already happened in 1993, when log export bans and expanded area of reservations for conservation affected timber supply to world markets. Timber prices jumped 50% in a matter of months, and while this has now abated somewhat, the price response is an indication of things to come.
Fortunately, Australia is likely to have an exportable surplus of pine in the near future as massive plantings of the 1960s and 70s come on stream. Also, appearance-grade hardwood will become a premium product, and export opportunities will strengthen.
Australia is ideally placed to service the rapidly growing Pacific Rim markets, and we have a good level of infrastructure and skills to support an expansion of our plantation forests industry. Prospective plantation growers should consider likely market needs in the future, and aim to produce a product which can be processed locally for maximum value-adding in Australia.
One such product, which could replace much of the 200,000 cubic metres of rainforest timber currently imported into Australia, at a cost to our trade deficit of over $100,000,000 per year, was timber from the Paulownia or Kiri, a fast growing deciduous tree native to China. However Kiri plantations would only be a commercial success it growers had the right combination of genetic stock, planting site, and management inputs. Many people have tried the Paulownia species, but have achieved disappointing results because one or more of these factors was missing.
Potential growers should ensure that the company offering to supply trees, can also supply experienced, professionally qualified forestry staff for advice, and that the company has runs on the board in terms of broad-acre success with plantations to several years of age.
I have spent eight years developing select genestock with proven performance, and my company is now marketing these trees under the trademark name "Kiri Jade Empress". I have also devised management techniques which have been demonstrated over hundreds of hectares of successful plantings.
The lightweight, straw colored timber is suitable for furniture and interior mouldings and is used extensively in China and Japan. Response from potential industry users in Australia has been enthusiastic, with comments like "I love it, when will I start getting more". While the lightweight of around 300 kg per cubic metre means that the timber is not strong enough to use for construction purposes, it has a beautiful sheen and close grain with "flame" pattern even in young trees. It is easy to work, can be stained to match red cedar or mahogany, and does not split or warp when drying. Shrinkage is less than half that of other hardwoods
A Kiri Jade Empress plantation can have between 300 and 600 trees per hectare at establishment and may take 15 to 20 years to reach final maturity. Log value is likely to be highest for large diameter trees, and expected final harvest stumpage prices are around AUD$300 per m3 of log (1995 constant value), or even higher from export sales. Total yields over a full 18 year growing cycle are likely to be around 330-370 cubic metres of merchantable sawlogs per hectare The first commercial partial harvest (thinning) can be expected when the trees attain a trunk diameter of 20-25 cm within 6 years. Prospective growers should note that these figures are projections based on currently available information, and outcomes may vary depending on site and market factors, and the growers objectives and management techniques.
Kiri trees are deciduous and deep rooting, which means that the plantations are suitable for a variety of inter-cropping possibilities including mixture with cabinet timber trees. Seeds of all Paulownia species are short-lived and have low natural viability so there is little or no prospect that they will become invasive weeds like Camphor Laurel.
A suitable growing site is one which is already largely cleared of native trees, receives full sunlight, is not exposed to strong winds, has moderate slope and a warm climate with over 1100 mm annual rainfall and dry Winter. Frosts are not a problem. The site must also be flood-free, and have freely draining soil such as sand, loam or well structured clay-loam to a depth of at least 60cm. If your site does not meet all these criteria, you are unlikely to be able to grow Kiri Jade Empress trees as a commercial venture. Presence of high water table, "pug" soils, or any kind of impeded drainage or poor aeration means the site is not suitable unless you are prepared to undertake, and pay for, land-forming works.