Galician Timber Markets: Eucalyptus, one step forward... in 2010
Gustavo Iglesias Trabado GIT Forestry Consulting SL - Consultoría y Servicios de Ingeniería Agroforestal- www.git-forestry.com - EUCALYPTOLOGICS
Once again and thanks to the kind input from Fearmaga, the Asociación Galega Monte Industria, the Cluster de la Madera de Galicia & Feceg, we can explore the medium term aftermath of the Spanish version of the global financial crisis and its impact on sustainable timber harvests and the productivity of the Galician timber industry during 2010.
After the historical record of 2008 and the noticeable crash experienced during 2009, Galician timber harvests have recovered during 2010, growing a 12% from 6.15 million cubic metres (including the bulk of non effectively harvested Klaus stormwood) to 6.85 million cubic meters. Timber sale operations, a direct injector of liquid capital into the small rural investor economies, have reached noticeable figures once again: during 2010 up to33.000 timber sales have been performed by small individual tree growers and commonland timber management organizations, which are indeed the private owners of over 96% of Galician forestlands.
Fig. 1: Galician Timber Resource & Sustainable Roundwood Harvest 2010: hardwoods cover a 63% of total afforested area and yielded 55% of the Galician timber harvest, softwoods cover a 36% of total afforested area and yielded 45% of the Galician timber harvest in 2010. Planted forests yielded nearly the total of timber harvests in Galicia during 2010, relieving almost totally the pressure of industrial wood demand from non planted forests. [A larger version of this graphic summary is available from GIT Forestry Consultingupon request (just contact us)]
Galician timber harvest figures have followed during 2010 the main general trend of the last decades: +95% of total roundwood volume is sourced from planted forests, and of this total volume two sub-types prevail: different pine timbers, and different eucalypt timbers. During 2010 and continuing the 2009 inertia, the previously increasing trend forspecialty hardwood harvests (oak, birch, chestnut, cherry, etc), which reached up to 5% of overall volume in 2008, has crashed down due to, and excepting the case of some high grade lumbers and luxury wood uses in very small amounts, the lower performance and higher production costs of these locally produced hardwoods as material source for the dominant (most demanding volume wise) industrial lines.
Fig. 2: Sustainable timber harvest operations in one of the different Galician softwood planted forests types yielding roundwood for over 10 different industrial segments, including sawmilling, board & panels and high quality furniture making industrial processes. Galician softwood harvests roughly mean a 20% of the total annual timber output of Spain. (Click image to enlarge)
The still existent paralysis of the building sector in Spain has also kept the demand of those processed timbers and technical timber products necessary in times of normal levels of activity in lower than usual levels, and, consequently, industrial production in these market segments has adjusted. Backwards in the supply chain, this factor, combined with others, has meant that one of the main primary sources for these organic and renewable materials, timber harvests from softwood planted forests, have not experienced a major change in harvested volume terms compared to 2009, recovering a 9% compared to 2009 levels but still remaining at an equivalent of 80% of the harvest peak in 2008 even with that increase.
Fig. 3: Galician Timber Industry Results 2010, a report by the Galician Timber Contractors & Sawmillers Association, the Galician Forest Industry Association, the Galician Cluster for Wood & the Galician Federation of Carpentry & Cabinet Making Professionals. Download the full report [PDF 813 KB]
In other words, the only timber fraction significantly impacting positively in the whole sector during 2010, from small timber selling individual tree growers to end of industrial line, has been eucalypt hardwood. Only set back in 2009 due to the important volumes of eucalypt stormwood caused by Hurricane Klaus, Galicia has experienced a quick recovery in eucalypt timber harvests to reach a 97% of the historical 2008 peak harvest during 2010. So, nearly another historical peak harvest for eucalypt timber after over 500 years of exotic tree growing and harvesting in Northern Spain.
Fig. 4: Eucalyptus globulus: noble wood of Galicia. For over 50 years, eucalypt planted forests have been one of the very few available timber resources in Spain able to provide raw timber as to prepare 25 meter long solidwood pieces, a traditional industry based on timber knowledge and expert handling of this Galician adopted Australian timber from tree harvest to final processing at sawmill. Some uses of this timber support the employment of up to 10.ooo Galician people in other key sectors of the economy. (Click play to watch a video depicting on site preparation of long wood beams "madera maciza" in a harvest coupe of Galicia, Northwestern Spain)
This means that, for the third time in their nearly 200 years of cultivation history, eucalypts have become the most important timber group fraction for overall timber harvests in Galicia, and by extension, as Galicia supplies roughly 50% of Spanish yearly roundwood output, for the whole nation. The versatility of these Galician adopted Aussie timbers has positively impacted once again all the main industrial lines, and a surprising trend has emerged even for industrial processing not widely associated by the average Joe to this type of timbers: for the first time in history, the main hardwood lumber type used by the Galician sawmilling industry is sustainably produced Eucalyptus wood sourced from planted forests.
Fig. 5: During 2010, Galician organically grown Eucalyptus timber sourced from planted forests has become the most used hardwood lumber type for the Galician sawmilling industry, surpassing the processed volume of all other locally harvested hardwoods (oak, chestnut, cherry, etc.) combined. This type of local industrial segment starts in a locally grown tree and adds value for a whole local processing chain that ends up in luxury furniture exports and solidwood applications for structural uses, generating the highest amount of added value on timber products per unit of processed timber in Galicia that is fully injected in the regional economy (Click image to enlarge)
Interesting trend indeed, considering that Galician Eucalyptus harvests mean figures in the range of 25% of the total timber harvested annually in Spain, and that, besides its well recognized quality for the pulp & paper industrial segments, it is also increasingly used in board & panel segments, and also in saw-milling segments. Part of the later products, due to their quality and outstanding beauty, are consistently exported and, not being as directly dependent on the currently reduced activity of the Spanish building sector as some alternatives, have hence become a relatively safe haven in times of general contraction of the regional solidwood industry.
It is not too adventurous then to say that, after the maelstrom of the global financial crisis deeply impacted the economies of the whole world, affecting Galicia too, impacts on the timber industry were impossible to avoid, and considering the particularities of Spanish economy, the aftermath of the crisis still lingers on Spain and its Timber Reserve and will probably stay with us all for a while. However, a first tiny step, or good sign of the start of a recovery, has already happened. And one of the main drivers of such happening during 2010 has been... Galician eucalypt timber.
Fig 6: Galician forester, forest industry analyst & University of Vigo Forestry School professor Dr. Juan Picos explores the general economic situation surrounding the Global, European, and Galician timber industries during the peak and the aftermath of the Global Economic Crisis, outlining the different phenomena affecting offer & demand of timber products, and prospective trends for the medium term. (Click play to watch video)
25% cheaper to build than other housing options based on energy costly materials. Turnkey delivery from scratch in just 45 days using a building team of 4 master carpenters. Saving energy for heating by winter and cooling by summer. Built using natural, organic, recyclable, durable and environmentally friendly wooden materials. Locally grown. Locally processed. Storing CO2 in long lifetime products. Avoiding the deforestation of native forests for valuable and scarce hardwood harvest. Welcome to the new Argentinian hi-tech Eucalyptus timber bio-housing world... in video!
(Click play to watch the video)
Governor Urribarri inaugurated the CEDEFI during his visit. The new research and education center for forest industry and timber products provides Entre Ríos, the fertile timber reserve of the Mesopotamia Argentina, bearing over 100,000 hectares of tree crops, over 1,500 industrial timber productive units (forest farms) and sustaining over 30,000 jobs in strategic primary production based industrial sector, with the best tool to train new workers in order to upscale the manufacture of pioneer wood products.
"The new Center for Industrial Forestry Development is an example of cooperation among 12 organizations, the National Government of the Argentinian Republic, the Government of Entre Ríos Province and a large number of civil associations. It allows this beautiful reality of men and women starting to dream on adding value to the primary production of our country"
"For decades we have seen thousands of young people departing Entre Ríos to find a job at industries and factories that were adding value to our primary products in other areas. Today we are starting to change the profile of our province, we are increasing our sustainable industrial activity, we are adding value to the fruits of our land and we are generating resources for our future"
Sergio Urribarri
Grandis, High Value Eucalyptus from the Argentinian Mesopotamia
Plantation grown Eucalyptus grandis solidwood sourced from Entre Ríos Province in the Mesopotamia of Argentina. The new gold of Argentinian forestry, growing in Entre Ríos, Corrientes and Misiones, a wonderful eucalypt timber, like Euroglobulus, very suitable for a million possibilities of high value uses.
Today we will keep walking along the timber ecosystem to show you how plantation grown E. globulus logs become sawntimber, and how those solidwood products keep generating added value and jobs, besides uniqueorganic, renewable, recyclable and environmentally friendly shapes, colours and textures: we will start exploring the nobility of Galician eucalypts.
Fig. 1: IFA President Dr. Peter Volker standing on plantation grown Tasmanian Blue Gum (Eucalyptus globulus) lumber grade logs at HVS Sawmill Woodyard (Galicia, Spain). The Tasmanian Floral Emblem has been milled for high value solidwood uses in Northern Spain for over 70 years. (Click image to enlarge)
It all starts with a wood log. That wonderful piece of a tree efficiently and naturally built from light, water and carbon recycled from soil and air. For the case of Northern Spain, such logs are sourced today from productive tree plantations established along the developing coastal Eucalyptus rainforest of Galicia during the 20th century. Wooden fruits of the tireless work of dozens of thousands of tree growers, landowners and silviculturalists, carried on voluntarily at their previously nearly treeless properties.
It would take some time until a new hardwood arrived, von Mueller's Prince of Eucalypts and a bit more until its cultivation for industrial timber supply purposes became noticeable. But, again, Galician sawmillers and timberjacks adopted it and adapted to it, this time aided by machines. Galician Eucalyptus sawmills were born.
Fig. 3: Processing a plantation grown Galician Blue Gum log through HVS' bandsaw to obtain eucalypt wood slabs. After the initial cut the E. globulus slabs are reprocessed to obtain dimensional lumber. (Click image to enlarge)
Since then, plantation grown Eucalyptus trees have been a source of specialty lumber logs for conoisseurs. Their special timber properties, result of fast growing rates and competition for light, different to the same timber in its native forests, had to be learned an dealt with by experience in order to yield usable sawnwood with reasonable recovery rates.
Each log becomes a different world. Each wood cut a challenge. But it was done. Galician sawmillers and master carpenters, devoid of other easy locally sourced hardwood timber choices, succeeded where the Californian feverish Eucalyptus timber industry of the second Gold Rush era failed.
Fig. 4: Eucalyptus globulus reprocessed slabs become dimensional lumber after re-sawing and finishing ("recanteado"). Besides direct uses as structural wood for housing inland, part of this Eucalyptus dimensional lumber is used to build the frameworks of Galician "Bateas" (Mussel & Oyster Farms) in the ocean. (Click image to enlarge)
Timber knowledge passed from generation to generation of sawmillers, today's examples as Hijos de Vicente Suárez Blanco, join more than 50 years of experience based wisdom on Eucalyptus globulus sawmilling and handcraft carpentry. Thanks to them, and others like them, Master Shipbuilders as Manuel Sánchez Torrado keep building wooden structures at dockyards, for immediate use in acquaculture. Thanks to them, and others like them, further value adding happens in Galicia, as finished slabs are also transformed into fine timber products by other local industrial lines.
Fig. 5: Galician & Tasmanian sawmillers inspecting the finished product area of HVS sawmill, where plantation grown Eucalyptus globulus logs have been converted into high value sawn timber products for multiple uses. The organically grown and nearly handcrafted noble wood will keep generating added value after this step, for direct carpentry work and further industrial processing, to become many other Eucalyptus solidwood based products. (Click image to enlarge)
A whole economic ecosystem based on the most noble uses of timber has grown and flourished in the Northern coast of Iberia, at the same time the coastal Eucalyptus rainforest has developed.
Its flow of organic matter (wood fibres) runs up and down the industrial chains based on this timber, generating jobs at every stage for wood workers and their families. Generating wealth that is recirculated in rural economies and primary resource based economies along this man made timberbelt, the Nova Australia eucalypt planted forests.
Generating energy savings with each ton of standing timber, each ton of sawnwood and each ton of wood products you may or may not choose against other materials with mindbowling energy costs to be manufactured.
Fig. 6: The life cycle and CO2 storage lifetime of plantation grown Eucalyptus globulus timber used for building purposes ranks in the "well over 100 years" timespan in Galicia. Reclaimed and Fresh wood are used for fine grade building in both "old and new" styles, either as structural timber pieces or as unique visual treat. Fine carpentry expert examples, as Hijos de Vicente Suárez works, expand the possibilities for noble wood uses of Tasmanian Blue Gum timbers and the value adding process. (Click image to enlarge).
Same way as Eucalyptus virgin cellulosic fibres are recycled as paper is recycled creating a long term pool of stored CO2, and hence being an useful tool in the fight against climate change, Eucalyptus globulus solidwood products, for their longer lifetimes and continued recycling of uses once serving their primary prupose, are also a stored CO2 pool.
Each of these plantation grown eucalypt timber pieces contributes at once to slow down the harvest of native hardwood forests with high value for preservation in other areas of the world, which is a positive externality, and an example of positive environmental impact. Each solidwood piece contributes to more efficient energy saving processes for raw material production, as this wood is totally organic, and, as every type of wood, built by nature using solar energy, not by burning fossil fuels. Each Galician Blue Gum log and solidwood piece is a living proof of cultivated forests being capable of generating sustainable products and services, positive social impacts and positive environmental impacts. Remember that each time you may read eucalypt plantations are not sustainable, or that the "foreign trees" cannot bur harm your local ecosystems.
Acknowledgements
To Peter Volker (Forestry Tasmania), Glenn & Shawn Britton (Britton Timbers, Tasmania) and Tony Jaeger (McKay Timber, Tasmania) for stopping by in their discovery trip around the world after the Eucalyptus beyond Australia. To the Suárez siblings and their staff (Maderas Hijos de Vicente Suárez Blanco SL), Alfonso and his staff (Maderas Costiña SL) and Master Carpenter Manuel Sánchez and family (Astilleros Manuel Sanchez Torrado SL) for their hospitality and daily work at forest and sea. To Isabel Puentes (FEARMAGA - Galician Federation of Sawmillers and Timber Suppliers) and Juan Picos (Asociación Galega Monte - Industria) for their support and company during the Mussel Day. To the fishermen and seafood cultivators of Galicia, for making it possible. To the tree growers and silviculturalists of Galicia, for making it possible too. And, looking back to days past, let's not forget to thank Alfonso Ozores, Marquiss of Aranda and the House of Rubianes for thinking like a mussel. And let's not forget either to thank Rafael Areses, Forester and eucalypt planter extraordinaire, for thinking like a tree at the same time Navarro de Andrade did.
Click the link above and an interactive list of all topics will display on top. You can use it to navigate EUCALYPTOLOGICS exploring the alphabetically indexed titles or sorting topics by key words.
You can also navigate the Blog Archive by expanding the list of topics above (click on the black triangles), using the key word tags at the bottom of each topic and at the menu to the left or using the links that normally appear from one blog post to previous ones. Enjoy!
... ABOUT
Welcome to the blog space of GIT Forestry Consulting. Here you can find regular comments on a wide range of topics concerning practical knowledge onEucalyptus cultivation, be it at nursery stage, at your gardens or at wider scale forestry plantations in cold temperate climates. Our main objective is trying to help growers worldwide with their doubts or comments in a more interactive way. In addition to the material here you are also welcome to visit our main website or contact us.