The Growing Future

A Proposal for the Redevelopment of the northeast

Ecobard Productions Mobile: 0488 952 233 Phone: (03) 6354 1051 E-Mail: [email protected] Web: www.ecobard.com.au

North East Tasmania

May 2011

THE GROWING

FUTURE

July 2011 THE GROWING FUTURE Page 2

2

North East Tasmania has some unique qualities, not missed by its ancestors. Quality soil, high rainfall and a fair Amount of sunshine, make this area highly productive. The mix of high-yield soils completes the balance, allowing This Region to be one of the most productive in the world. Traditionally, this area was used for timber production and farming and there is no reason to change that. There is However, a good reason to change the way North East Tasmania does business. In the carbon-centric world of today and under the current decline in industry within the region, a plan to develop New ways of doing business is essential. Following a lot of consultation, a possible plan is outlined here.

Regional History Farming has always been the mainstay of the northeast, with many small farms being established in the fertile valleys. This enabled the capture of rainfall runoff to fill dams, irrigate crops and water stock. Forestry also dominated the landscape and timber harvesting became another important industry.

However, world timber prices have fallen significantly over the past four decades, making traditional harvesting methods expensive against foreign imports. Clear-fell practices became the new way of logging and every part of the tree became valuable, in order to keep the overall cost down. This meant less labour as the process became more mechanised. Wood chipping, to make fibre-based products such as paper, was an offshoot to timber harvesting. However, changes in both market and operating practice, saw wood chip become a major – stand alone – industry.

Over the past 30 years, employment in this sector has fallen by around 80%, leaving many skilled forest workers out of work. This also saw the decline of small business entities in the forest industry as the many small sawmills closed.

The major problem with trading in a cheap commodity, such as wood chip, is that there is no margin to adjust, should competition arise. The simplicity of the operation also makes it an easy industry for third-world countries to rival. Gunns sought assistance from government in the form of a flexible, index-linked pricing structure for timber supply. This was granted by Forestry Tasmania and allowed some latitude in the short term. Lower wages and a lack of health and safety issues, within third-world countries, soon outweighed the advantage and prices began to fall perilously low.

In 2011, North East Tasmania is being subjected to the product of these changes in forest practices and subsequent market adjustments.

The Industrial Background of N E Tasmania

Farming

Vegetables Meat & Dairy

Forestry

Timber & Fibre


3

Gunns Timber Ltd. Is now the only major company left in the forest industry. Its focus shift to wood chip has seen a major swing from solid timber and most of Gunns sawmills have ceased production and closed.

The competition in world commodity markets has seen many third-world countries take wood chip trade from Tasmania and Ironically, wood chipping alone has devalued solid timber, as a commodity, forcing an even greater reliance on fibre for export income. Plantations were seen as a way to cut costs even further and with Managed Investment Schemes (MIS) in place, a way of establishing these tree farms, without company outlay.

Environmental concerns, globally, created a demand for eco-friendly paper and other fibre products and consumer power dictated an end to native forest logging. This in turn also rang the death-knell for solid timber products, as an export commodity, increasing the need for the closure of sawmills throughout Tasmania.

Other economies addressed the problems differently and started to realise the impacts on ecosystem service values much earlier than in Tasmania. Plantations were established for hardwood and softwood sawmilling and standards were established globally - Forest Stewardship Council http://www.fscaustralia.org. This inaugurated a reliable source of ecologically friendly timber and within stable and economic pricing structures.

The farming community has suffered a similar fate as that of the forest industry, in that large corporate bodies have merged and removed competition within the grocery business. The Coles/Myer duopoly has created a limit on farm gate custom by dictating growing policy and pricing. Regions have been established for certain types of crops, with strict irrigation and spraying programs put in place. Produce bio-diversity has been reduced to only those items with a high shelf life, or to suit marketing needs.

The problem with a lack of competition is that farm revenue is forced down and costs are driven upwards, causing many farmers to struggle. This has also impacted on jobs and business opportunities within the region. Corporate dictatorships in both industry sectors have therefore been pivotal in the downward trend to the economy of North East Tasmania.

There have been closures due to the withdrawal of companies such as Simplot in the area and unemployment has resulted from the lack of those vegetable packing facilities.

Gunns Timber Ltd. The last remaining corporate entity within the forest industry has seen a major fall in share value as the commodity fight with third-world economies has continued. It has also been severely impacted by environmental concerns, both within Tasmania and abroad, seeing a demand for its products reduced. The closure of the two Scottsdale sawmills, purchased from Auspine, in a corporate raid in 2007, has been a major blow for the region with around 300 jobs lost.

Details of Auspine acquisition: http://www.delisted.com.au/Company/652

Why Things Must Change

Currently, world commodity prices are riding high, causing a surge in Gunns’ chipping activity from plantations and a surge in its personal confidence for building a pulp mill. Unfortunately for Gunns and its investors, 5 similar projects are either running or well underway around the world and will inevitably force pulp prices downwards. It is possible that Gunns’ pulp mill, if it ever gets built, will suffer years of unprofitable operation and the government/s will suffer a backlash from the electorate, should financial assistance continue for the company. With Gunns’ share price down from $4.50 to just 45 cents (at the time of writing) and falling daily, one wonders whether the company will survive beyond 2011.


4

It is obvious that, should Gunns collapse, more of the same is not the answer for the Scottsdale region and attracting larger players will only serve to create a similar situation for the region’s economy. What is needed is an influx of small business enterprises, because this sector of the business community traditionally employs the highest number people. Small business will prevent North East Tasmania from declining to the point of unsustainability, as a region.

Being a farming and forested region, it makes sense to draw on the pool of local knowledge and experience to generate growth, rather than move to a manufacturing-based economy, where we have neither the infrastructure nor the expertise. As a farming community, the northeast knows how to grow things and it just becomes a question of what?

There are many new niche markets for produce in today’s health and gourmet conscious society. Some farmers have already risen to the challenge and now export high value crops and processed produce to an eager market. Tasmania has an already established reputation for clean and green produce, with world-renown dairy, aquaculture and food crop industries. Building on that reputation, with quality produce, demanded by a discerning world, is the logical next step. A plan is needed therefore, to create new produce and products for those markets, in both the farming and the forest sectors.

Start Small

Firstly, it is prudent to establish a local market, within Tasmania and on mainland Australia. Competing with third-world countries requires third world pricing structures and therefore, low wages. It also means economies of scale and that means giant corporate entities, putting us back into the situation that created the problems in the first place. A local market suits small business enterprises and that is what is needed to create jobs. Products that suit that market must be researched and established, in order to gear production. This may seem a daunting task and one that could require much investigation. It is however not so formidable because there is already a demand for many of those products and one, which is not being adequately satisfied. It is known for instance that health food products are highly desired by the Australian public. It is also a fact that organic produce is another market and one the northeast is well equipped to supply. “U.S. sales of organic food and beverages have grown from $1 billion in 1990 to $24.8 billion in 2009. Sales in 2009 represented 5.1 percent growth over 2008 sales. Experiencing the highest growth in sales during 2009 were organic fruits and vegetables, up 11.4 percent over 2008 sales Source: Organic Trade Association’s 2010 Organic Industry Survey”. Many new crops, grown and processed in different ways and properly marketed, will eventuate better prosperity for the district. http://www.ota.com/organic/mt/business.html

What About Timber?

The ABS table below shows the amount of hardwood and softwood timber and related products produced in Australia in 2008. Ironically Australia imports 394,000 m3 of timber every year from countries like Indonesia.

Australia also imports joinery products from these countries. One example is doors; almost 100,000 doors are imported every year from overseas. These are products that could be manufactured here and from Australian plantation timber.


5

It is a very confused situation that Tasmania finds itself in, with a forest industry on the nose with environmental groups and one that is going broke. Unemployment is rising, especially in areas like the northeast of Tasmania and yet Tasmania has such huge resources.

Timber Production from Plantations Cubic Metres

Hardwood 1,200,000.00

Softwood 3,600,000.00

Plywood 150,000.00

Particleboard 1,000,000.00

MDF 800,000.00

Roundwood 363,000.00

Other 6,000.00

Total 6,969,150.00

Why is the Tasmanian forest industry in such a mess?

As already stated large corporations have hijacked the Tasmanian forest industry. Companies like Gunns Timber Ltd have driven competition from the forests by removing the small business element of small sawmill operators and foresters. Originally dividing the regions into four and then employing contractors to carry out the harvesting, it gave the major players control of the labour force, put the onus of machinery acquisition and running costs on those workers and allowed the four companies to hire and fire at will. With three out of four of the giants gone and Gunns the only player left, it has put control of the timber industry into one pair of hands.

A by-product of timber harvesting was traditionally wood chip, using only the forest waste for craft wood products and paper. Over the past 30 years this has become the major focus within the industry, leaving solid timber products the poor relation. It has been a major factor in reducing employment within the timber industry. Following a troubled passage of tumbling share prices, Gunns put its complete focus on wood chips and the subsequent value adding of paper pulp. Divesting its self of sawmills and sacking what remains of Gunns timber workforce and the contractors who supplied those mills, Gunns has increased unemployment throughout Tasmania and especially in the northeast.

So, what can the northeast do about this?

There is a need to establish opportunities for small business, within the region because small industrial concerns, newly established, can be directed more easily into new programs than perhaps a larger concern, with an established business model and industrial processes. Small business will generate much needed employment much more quickly and keep the working age people from exiting either interstate or overseas. The answer is not to create jobs merely for the sake of employment, with no regard to existing Skills. Aptitudes are different for logging and sawmill workers as opposed to concrete workers and machinery skills are distinct from manual work. The answer then is to create opportunities for small business to enter, using existing resources and workforce, but in different ways, more sustainable ways.


6

Business Opportunity and Job Creation

Sustainability is a buzzword much aligned in today’s carbon-centric world. It is important however to make sure any program is economically sustainable as well as ecologically so. As discussed above, wood chipping is failing, due to public concern and the high dollar and now we see a possible ceiling approaching in world commodity markets. http://www.economist.com/blogs/freeexchange/2011/05/growth_and_inflation This is actually a topping out of the human population, where the planet’s occupation has reached a critical point and where demand starts to level out and then fall, due to limits on sustainability. This may appear a little futuristic however, nothing on Earth is finite and just, as peak oil has been reached, so too other commodities will either run out or demand will stabilise due to population growth restrictions. Wood chipping for paper pulp has the added drawback of time. It takes 20+ years to grow trees to produce pulp and it is likely supply will run out before new stocks can be grown. The re-emergence of the Russian forest sector will add substantial volumes of wood to the global supply. With more than 50 percent of world softwood resources and hardwood forests that cover a slightly larger area than the hardwood forests of the United States, the Russian Federation has the potential to provide very large new supplies of wood and wood products to world markets. The Russian Government has recently estimated that its potential for annual production of timber is 559 million cubic metres (Benin, 2004).

http://www.fao.org/docrep/008/y5918e/y5918e13.htm

Tasmanian wood chipping has already seen the exit of three out of four of the major players and the last man standing is extremely punch drunk. The likelihood of Gunns surviving is low and its assets will leave a huge legacy of E. Nitens and E. Globulus plantations. With the extra pulp coming on stream from around the globe and the resultant cheap commodity prices, also with new Chinese technology allowing for less input of wood use in paper, the demand for wood pulp will likely stabilise. The real growth area will possibly be plantation hardwoods and softwoods for solidwood products. http://journals.cambridge.org/download.php?file=%2FENC%2FS0376892910000895a.pdf&code=84cec771330e61f090aecae20ceafeb1 Also, China’s reduced wood input paper production methods will possibly necessitate China’s own pulp production, as opposed to a supply of pulp from Tasmania.

Following that reasoning, there will likely be no market for Gunns to profitably sell to. Some of the Tasmanian plantations are on farmland and much of the plantation stock is privately owned. This will mean that many small investors will once again carry the load and suffer from bad business practices caused by large operators.

There is obviously a demand still for paper and other fibre products however, supplying the world with pulp means selling off the assets for little return and more likely at a considerable loss, when one takes into consideration the interest not earned on those investments. The best way to solve the problem is to find another use for that resource and one that will bring better returns than mere wood chips. The demand for fibre can be satisfied using different methods because there are better, cheaper ways of producing high tensile fibre than using trees.

Also and as already mentioned, Carbon tax has to figure highly in any business plan, so whatever elements come into play, they have to be green.

While global markets for food remain strong, it is likely that servicing a local market for solidwood timber supply and value adding same, at least in the short term, will be a better plan for North East Tasmania.

Whatever happens from now on has to be ecologically sustainable as well as economically beneficial to the district and to Tasmania as a whole.


7

The Green Plan

Using the resources the northeast already has but in better ways and for different products, will create new markets. It also makes more sense to value add produce in Tasmania. An increase in small business within the region will mean a boost to cash flow for the local community, unlike large corporate dividends, which often go offshore.

From here on in, this proposal examines the various ideas that will likely change the direction in which the community is heading. The plan addresses existing products or produce items to see how changing usage or substituting for another type can generate improved outcomes for the community.

Fibre Fibre is an important material for Australia and globally. Increased demand for fibre has seen many economies grow exponentially. If this is to be done in an ecologically sustainable way it will require a rethink in the use of timber for fibre products. One way is to introduce low THC industrial hemp, as a rotational crop for farmers. It will greatly benefit the North East Community, reaching far beyond the farm paddock. Commercial hemp is a plant with many uses and has the capacity to transform the economy in ways, which can stimulate job growth, increase wealth and lower agricultural costs. It will also provide a sound hedge against the impending and inevitable carbon tax. There are social benefits too; this plant can actually reduce illicit drug use within the community and help to promote ongoing health and wellbeing, for the population. If hemp is introduced as a way of producing fibre products, this will take up much of the slack from forest industry lay-offs and help to develop new jobs within the district. Its down-line processing will greatly enhance the produce value to the region by providing even more and varied employment.

Food North East Tasmania has been a food-growing area for well over a century. The rich volcanic loams and high rainfall lend themselves to quality food production and much of Tasmania’s reputation has been built in this region.

The Coles/Woolworth duopoly has divided Tasmanian food producers into regions, for the convenience of the large chains. Root vegetables are mostly grown in the North East, while Brassica growth is generally from the North West. Fruit is grown, mostly in the South, creating division and a lack of biodiversity in all regions. The emphasis is on National distribution and export and it suits the larger players to keep the regions dedicated to singular production. Bulk production in any region means lower prices into the supermarkets although this does not usually translate to cheaper prices at the checkout. Growing a mixed variety of foods in all regions may not suit the major supermarkets but can greatly benefit the farmers, the local community and the smaller grocers and grower’s markets, throughout Australia.

Low THC hemp is also a food crop and one of great nutritional value. The seeds contain around 25% protein and are high in anti-oxidants. They also contain Omega oils, making them a useful crop in the farmer’s rotation. With the potential for down-line processing into confectionary, breads and other food items, hemp becomes a draw-card for small business and another scheme for job creation in the region.


8

The potential for exotic foods in the North East remains high. Truffles, fungi and special herbs are just a few of the varieties of foods available and the need to develop niche markets for these products, along with other regions is essential.

Timber Tasmania, especially the northeast, is wearing a new coat. The mountainous landscape has been systematically clad in a variety of tree. Grown for paper manufacture, this tree has some peculiar properties. It is insect repellent and grows quickly, under the right conditions. Those properties have value in construction also and using these tree species for timber production is a way of moving this community forward.

Obviously, the transition from fibre to timber will not be instant and for some years to come, trees will play a role in fibre harvesting. The suggestion is therefore to thin the rows of plantation trees, taking every second and third row for fibre and other products, while the demand exists for tree-based fibre. This will allow the remaining trees to gain weight and girth for solid wood timber production.

Inter-planting with a diversity of eucalypt species as well as other, more exotic genomes, will create a working plantation, where timber can be selected for variety and use in an ongoing and continuous process. This will create jobs for a skilled and semi-skilled workforce, in the timber industry.

Solidwood Products Scottsdale has been a timber producing area for many years. The two saw mills, strategically placed on the rail line and the A3, are an asset to the region and have been a mainstay for employment in the Scottsdale area. Gunns’ decision to firstly purchase these mills from Auspine and then close them down has been a major blow to the local economy. Plantation timber, formally used for woodchip, can now be used for solidwood products. The Ling Siding mill should remain as a pine processor and continue to feed on the vast pine plantations in the area. The Tonganah Mill, now stripped of its plant, could be retooled to mill small-section hardwood logs, giving the region a sustainable range of timber, in both softwood and hardwood. It is suggested that both mills saw, dry and treat with preservative only and further processing plants, set up between the two mills, handle further down-line processing into finished timber products. This will create a light industrial estate for timber, where each participant works in conjunction with the others and a shared resource and price structure can be set up.

Biofuels With looming carbon tax and oil supplies drying up globally, there is a strong requirement for alternative fuels. Already in Tasmania, bio-Diesel is being produced from poppy seed, recycling a waste product from the pharmaceutical industry that is prevalent on the island. Industrial hemp is also a better source of bio-fuels and with a very simple extraction processes, making a readily available fuel for all industrial and domestic uses within the region.


9

Power With any industrial process and thriving community, power requirements are high. Conventional power generation, using coal, will attract carbon tax, creating a burden that can make production less competitive. Alternative and renewable power can be generated simply from the waste products of all industrial processes mentioned in this paper. Timber waste from the mills, factories and plantations can be burnt without oxygen (pyrolysis), in a Stirling Engine power generator. Farm waste also can be used as well as any other industrial waste. This process does not put carbon into the atmosphere but rather stores it in its by-product, bio-char. This is a powdered form of charcoal, which is almost 100% carbon.

Fertilizer Bio-char is a natural fertilizer and putting it onto farm paddocks, as one would with lime and also onto the forest floor, it will not only store carbon in the soil but will also help plant growth, without chemical use. Carbon is a major factor in plant cell construction and bio-char will help build stronger, healthier plants. The addition of other organic materials will increase the productivity of this natural fertilizer and greatly improve depleted soils.

Branding A regenerated local economy needs markets and branding will promote the uniqueness of the region’s products, making them desirable. Bringing all the ideas mentioned in this paper together, under one umbrella and making them ‘green’ ‘organic’ and ‘carbon tax free’ will give the region a much-needed boost to its economy. The advantages of an economy working together are many and further expansion of each area will be discussed below.

The Advantages of a Hemp-Based Economy The phrase “hemp-based economy” usually causes ears to prick and often prompts the odd snigger from the ill informed. The reality is much different from the perceived viewpoint and an economy based on such a versatile plant has many advantages than say, a financial system based on iron ore, gold or any other single commodity. It is not just the diversity of that crop that will show benefits but also the carbon credits it will generate in a looming carbon economy. Listed below are some historic facts and some brief advantages to this region as a direct result of adding commercial hemp to the crops already sown in this area.

Hemp History As a source of fibre, industrial hemp is arguably the best known to man. With over twelve thousand years of known use and possibly thirty thousand years of history, it is certainly the oldest of all crops currently in


10

use today. The Japanese were known to have used hemp around 5,500 years before Christ. Formally used for rope and sail production and for making ancient tents for nomadic tribes, hemp has a colourful and antediluvian history. Earlier settlements found the oils beneficial and the seeds became a staple for nutrition. They also made clothing and used it for stock feed and animal bedding. It is believed hemp was the Mana from heaven, talked about in the bible. It is more likely that a plant seed, ground for flour and made into bread, nourished the Israelites, than loaves of bread falling from the sky. In the eighteenth century one could gain British Citizenship by growing hemp and fined if failing to do so and in Europe, monks were expected to eat one meal out every three made from hemp seeds. In 1812 hemp fibre was the driving force that propelled Napoleon Bonaparte into Russia. The British Navy had reigned supreme over the seven seas, defeating the French and Spanish galleons, due to superior rigging and sailcloth. Grown for Britain in the Ukraine, hemp was stronger in high winds and less inclined to rot. It therefore was the source of that power and Napoleon wanted control. One could say the British Empire was built on hemp. The US Declaration of Independence was signed on hemp paper and Henry ford made the first car bodies for the Model T Ford, using hemp. He even experimented with hemp as a fuel. Ironically, hydrocarbon oil used to fuel automobiles, created a large mass of hydrocarbon waste. This was taken up by the hydrocarbon industry and used to manufacture synthetic fibres. Large companies grew out of the black waste, manufacturing fabrics, such as Nylon. Hard and soft plastics caused a massive growth in industrial processes and a lot of money was made. Up until that point, hemp was used widely as a source of fibre, for simpler uses. In 1937, Chemical company DuPont and newspaper magnate, William Hearst combined forces and campaigned for hemp to be outlawed, because it was a major and formidable competitor to logging and the chemical plastics industry. These large corporations continue lobby the US and other governments around the world to have hemp outlawed. Millions of dollars has been spent on creating a campaign to make hemp into a prohibited drug, whether that particular plant is a narcotic or not. Henry Ford never got his wish to produce a stronger car body, with less weight and therefore better fuel economy. Possibly the oil companies saw better fuel economy as a negative. The ban was lifted temporarily, to support the US war effort in the 1940’s. Unfortunately however, once the Second World War was over, hemp bans were reinstated globally.

No other plant has received as much attention as hemp and for very good reason. It is not the narcotic value of hemp that has created so many objections, but rather the strength of the plant’s fibre. It is in many ways more superior to industrially created fibres and these large corporations fear it will eventually destroy their businesses. It begs the question why these corporations did not embrace hemp and process it, instead of condemning the plant?

Job Creation Today, modern technology has managed to produce over 250,000 products manufactured from commercial hemp, making it also the most productive and versatile of crops. These products include: Hard and soft plastics, masonry and bio-fuels, fabrics of all kinds, steel and craft-wood replacements, as well as surgical dressings, home insulation and electronics components, not to mention paper. As a food source, hemp seeds contain around 25% protein; they have a nutty, almond-like flavour and can be used to add nutrition to many food products. The protein can replace meat and other proteins such as fish and poultry. The protein is higher than other crop varieties such as Soya beans and the manufacturing process will create many jobs, which fit the Tasmanian clean green image, built, over many years, by the farming community. Hemp milk is a favourite with dieticians and vegans as opposed to soymilk.


11

“Soymilk contains oligosaccharides, a type of carbohydrate the body has difficulty breaking down. Consuming these simple sugars can cause some people to experience a lot of gas. Soymilk also contains substances called phytates, which interfere with calcium absorption. If you drink soymilk instead of cow's milk, plan to get calcium from other sources in addition”. Read More: http://www.livestrong.com/article/425074-soy-milk-advantages-and-disadvantages/ High in antioxidants, hemp seed products can be made into valuable health supplements. Hemp products are much sought after around the globe and the demand outstrips the supply. The market for these products is immense and will create jobs in many new and sustainable areas.

Some Health Facts About Hemp Hemp will:

! Assist weight loss by increased metabolic rate ! Improve energy levels, stamina and recovery from fatigue ! Make skin soft and velvety ! Effect faster healing of wounds ! Assist in curing eczema ! Assist with ADHD ! Improve mineral transport and metabolism ! Assist with premenstrual mood changes ! Aid brain development in unborn children and brain function in adults.

The plant protein market is currently worth 30 billion dollars in the EU alone. The demand for hemp protein far outstrips supply, demonstrating the potential for growth. Some products made from hemp protein are:

! Ice cream ! Muesli bars ! Cakes, breads and pastries ! Pasta ! Milks ! And chips

These are just some of the benefits of using hemp seed products and it demonstrates some of the applications and therefore, products and services that can be created.

Hemp Fibre Facts The natural fibre market is growing rapidly and hemp composite fibre components, in the automotive industry in Germany alone, are growing at 54% per annum. A new Mercedes car has around 32 kg of hemp fibre used in its construction. It is not just Mercedes that use hemp fibre products; BMW, Ford, General Motors and Mitsubishi all use natural fibre products made from hemp. The average person uses around 8.6 kg of fibre per year. That is up from 7.7kg in 1995 and estimated to reach 10 kg by 2050. Add to this the population growth, currently at 6.8 billion and tipped to reach 9 billion by 2050 and one can see a trend. Fibre production globally has risen from 45 million tons in 1995 to around 56 million tons in 2004. It is estimated to reach 90 million tons by 2050. There is a substantial growth


12

market in fibre and with peak oil accelerating hydrocarbon prices, over the next few years, there will be even more demand for natural hemp fibre. Carbon tax also will create a market for non-fossil fuel derivatives and hemp will likely command a tax credit when carbon trading is introduced.

Hemp Seed Oil Facts Hemp seed oil is another product that is very versatile. Firstly, the oil is a tasty food product, which can be used straight, on salads or in food preparation. It has excellent skin care properties and wages war effectively against aging. Hemp seed oil is also a very good lubricant and can easily be turned into bio-diesel. It is safer to handle than petroleum-based diesel because it has a much higher flash point and is therefore safer to store. There are trials being done globally, for hemp as a fuel and as a lubricant, to replace hydrocarbon-based oils. “Although hemp oil is more suitable for consumption than for industrial use, hemp oil has nevertheless been used in the past as an industrial lubricant as well as being an ingredient in paints, varnishes, sealants and printing inks.” http://www.ehow.com/about_5340254_uses-hemp-oil.html Hemp oil is also good for the heart: “The essential fatty acids found in hemp oil lower cholesterol and prevent blood clots, thus lowering the risk of heart attack. Hemp oil also has anti-inflammatory properties, useful for arthritis patients.” http://www.ehow.com/about_5340254_uses-hemp-oil.html And as a personal lubricant: http://www.thehempshop.co.uk/product-156.htm

Processing Unlike plantation and native forest timber, hemp is harvested, using a header or a large hay knife. The seeds are separated and the stems are cut off at ground level. A simple sugar mill will process hemp into usable formats. A saw mill can also be converted to process hemp fibre. The fibre from every part of the plant, including the leaves, is separated from the oils, by crushing and then the fibre is dried. The oils can be used to make bio-fuels and other products, such as paints and polishes, while the fibre is directed to further, down-line processing, depending on the application. The stem has two components, the pith and the stem fibre (the Hurd) and there are many uses for each. After a short period, the roots are also harvested. This allows the nitrogen and other nutrients to re-enter and improve the soil. Whilst harder than the stems they can still be used in the same way as other parts of the plant. The seed is hulled and the shell is used for fibre, while the hemp seed oil is removed, usually by cold pressing, leaving the dry seed. This is ground into flour and can be mixed with other starches to form pastries, breads and confectionary. Confectionary and beverage processing is an area that has escalated cash flow and profitability in EU countries like Holland. It is the jewel in the crown for this industry and will value add in both profit and employment and create essential cash flow. Hemp seed oil has incredible health benefits to humans and other animals. Omega 3, 6 and 9 oils are combined in the perfect harmonic balance for the human body. The oils are a well-tested supplement


13

for human health and are sold in many countries, through health food stores. This is another area of high financial gain, with hemp seed oil selling for around $80 per litre. Costing indicates around $17 per litre for production of hemp seed oil. For a detailed outline of growing and harvesting procedures and costing see the link below: http://www.dpiw.tas.gov.au/inter,nsf/WebPages/TTAR-5R86BK?open

Hemp Paper Every part of the plant can be used to make paper. In fact, four times as much paper can be produced from hemp as from trees. One hectare of commercial hemp will produce as much quality paper as 4.1 hectares of timber and it is cheaper to grow and to harvest and it costs less to transport and process and it requires no chlorine bleaching. The plant also needs no chemical sprays, making it a safer, a more environmentally sound alternative product to paper made from eucalypt fibre. It is also a much better business model than plantation timber. Tying up capital for twenty plus years is not the best way of using money. The annual yield may be lower than the timber yield but it is annual and therefore better for cash flow. Germany is the biggest EU exporter of hemp paper and manufactures all it’s products from imported hemp fibre. This takes away the competitive edge. China is the largest global exporter of hemp paper, however, the volumes are not sufficiently high enough to meet world demand. The reasons for this are available land and climate. Much of the growth is under glass and China is seeking to grow the crop under license in Australia. This means that both China and Germany, along with many other countries, are possible market places for raw hemp fibre, oils and hemp seed. The real value to Tasmania however, is down-line processing into the many products, for home consumption and export. Non-tree paper is better for the environment and cheaper to produce, using simpler methods. The argument put forward by the forest industry is that of cost. It is only the limit of material supply and subsequent market prices that causes the difference in cost. Hemp being a multi-use crop and a food crop also means that it is viable to grow hemp for many uses at the same time. Here is a link to a site, which shows the different processes for making paper: http://www.lusabooks.com/nontree.html

Farmer Dividends Unlike plantation timbers such as E. Nitens and E. Globulus, commercial hemp will grow from seed to maturity (up to 5 metres) in 100 days. Earlier hemp trails in Tasmania saw growth of around 2.5 metres. With different varieties and with new techniques, higher growth rates are likely. Hemp is suitable as a rotational crop for farmers, because of the quick growth rate. It was originally a desert weed and the plant has been adapted to grow in all soil conditions. Because of its history, it is water friendly and salt tolerant, making it suitable for conditions such as the Tasmanian Midlands or coastal regions. It has also proved hardy and virulent in cool and wet climates, such as the North-East of Tasmania. The combination of good soils and high rainfall in this region should therefore prove a successful combination for hemp cultivation for the North East. Hemp improves soil condition with every cycle, cutting down on fertilizer use. It is also pest tolerant (naturally) and will eliminate the use of chemical sprays. It is weed tolerant because of its rapid growth rate, removing the light from competitors. This means no use of herbicides and therefore no reason to introduce GMO’s. Unlike many other plants, hemp can be regrown in the same soil, giving increased productivity and restoration of poorer soils; particularly useful in the lighter soils of the North East coastal region. These are all cost benefits to producers and will help keep all soils productive over longer periods.


14

Below is a map showing the regions of the world where hemp can successfully be grown.

This Picture - compliments of http://www.wikimedia.org - shows the areas that hemp will successfully grow. Trails done in Tasmania, also found that sowing in September and again in December allowed two fibre crops per year to be grown. This means better yields from the same land and no loss of soil condition. Seed crops need a longer growth period.

Regional Dividends of Hemp A farmer’s cooperative in this region, could benefit from hemp distribution and processing. Incorporation of the processing in house, rather than exporting the raw fibre and the seed will maintain control and create jobs locally, keeping the profits within the community. It will also facilitate the establishment of hemp-based manufacturing and create opportunities for small business within the region. It makes sound economic sense, to value add the product, rather than drive the jobs offshore and a farmer’s cooperative could be the best way of handling distribution of seed, training and produce distribution.

Hemp Community Benefits Apart from the obvious down-line processing jobs, there will be a need for skilled work in areas such as injection moulding, textile and food production. The automotive industry is ever vigilant for the opportunity to improve its green credentials. In EU countries, recycling is paramount and companies like Mercedes-Benz and BMW use hundreds of components, in all their vehicles, made from industrial hemp.


15

Plastics, for instance, made from commercial hemp, are fully recyclable and can be regenerated into the same or similar parts when the useful life is over. Another use for commercial hemp is hemp oil, processed into other products. Paints and polishes, detergents and cleaning materials are all available from hemp oils and that leads the discussion into transport energy. With processing, hemp stems will also make a petrol substitute and help isolate Tasmania from spiralling global fuel costs. Despite the Australian dollar passing parity with the US dollar - the benchmark for oil pricing - petrol prices still remain high. Obviously, economies of scale need to be considered to see if hemp fuel is viable. However, if the federal government is serious about climate change, then federal tax laws should make this renewable energy source fuel excise exempt. With GST only on this fuel, it should help to make it viable and competitive.

Biofuel As stated above, biofuel is another jewel in the crown for Industrial Hemp. The stalks can be converted to petroleum substitutes through pyrolysis, the same process used to make bio char and generate electricity. Coal can also be made, artificially through the same process, although it rather defeats the object of the exercise.

Cold pressed hemp seeds will create more bio-diesel at a higher rate than any other plant and for that reason alone, hemp should be considered as a plant of extreme interest to Tasmania and especially the Northeast. The hemp plant generates more biomass than any other plant on earth. The reason for this is its quick growing cycle. Because it will grow in depleted soils and is not reliant on fertilisers or excessive watering, in the same way as other crops, it will make biofuel production cheap and profitable, once the scale of the operation reaches a reasonable size. This will also create jobs in the region. The report below is a little dated (2006) but clearly shows how much fuel can be made from hemp and many other plants. It is also a good read for biomass energy. http://fuelandfiber.com/Hemp4NRG/Hemp4NRGRV3.htm The next link outlines the reasons for growing hemp for fuel use and gives details on how much land would be needed to meet transport demands. Note that only 6% of US arable land would be required, to meet the current demand for oil in the US. When translated in Tasmanian terms and with our sparse population, considerably less land would be required to meet all our transport needs: http://www.hemp4fuel.com/page.php?2

Other Hemp Fibre Uses Hemp is the best natural fibre known to man. The bast fibres, which form the outer skin of the hemp plant stems, are long and extremely strong. They can be used alone or with other materials, combining to make a strong composite material, such as plastic. It is possible to completely build a car, using hemp fibre technology. http://www.hemp-technologies.com/page33/page33.html This makes a material, which is not only durable but also one that is biodegradable. Recycling with hemp fibre products is made easy and the worn or damaged component can be readily transformed into a new part of the same type or something completely different. The automotive industry is where a ready market exists and car manufacturers know that natural fibres will not only provide better components, which will improve a car’s performance and safety but also allow for ease of recycling, when the vehicle has to be scrapped.


16

This video gives a great insight into the uses for hemp fibre: http://www.youtube.com/watch?v=4tBjHTmojUc&feature=player_embedded

Hemp Building materials Using hemp fibre for building is a great way of storing carbon, which would otherwise have been released into the atmosphere. Above, there is a link to a YouTube video on hemp fibre use, showing a Lotus car. That video also gives a demonstration of hemp wall construction for buildings. Here is another link explaining how the hemp hurds actually petrify the lime mix and turn it to stone. http://www.youtube.com/watch?v=8AzbtWzwK8A

Tax and the Environment Many small, innovative companies can be set up to manufacture products using hemp as a raw material. The advantage will be environmental tax credits and a light manufacturing industry, making sustainable products. This will give North East Tasmania an advantage over other regions in the looming carbon economy. The market place has an increasing awareness of its environmental responsibility, with retailers and manufacturers seeking green products for their consumers. Investors will also avoid stocks that can be deemed “assessable” when carbon tax is introduced. This means a pool of investment cash can be made available, with the right sort of promotion. With increased regional growth from hemp product manufacturing, it will also make the North East eligible for gap funding as that growth is shown to outstrip the current infrastructure. The Dorset Council can then apply for this funding and increase infrastructure to meet the demand. For too long in Tasmania, environmental issues have been deemed to be a burden. With climate change becoming the focus of politicians and businesses alike, not to act responsibly towards our environment can be costly.

Local Economy As mentioned above, the economy of North East Tasmania has remained static over the last few years and with the closure of the Gunns pine sawmill at Ling Siding, there have been job losses and a decrease in business in the area. Commercial hemp production will certainly replace those jobs and will likely return the region to extended growth. The jobs created will be light industry based and would therefore suit the ageing population, keeping people productive for longer. If hemp production is managed in conjunction with forestry operations, and plantation timber is used as timber, rather than fibre, the region can enjoy the benefits of sustainable living, peace within the community and greater, more varied employment opportunities.

Myths There are many myths about hemp, mainly authored by large corporations in the hydrocarbon industry. One such myth is that, by growing hemp for food and fibre, Australia will become a nation of drug users. That myth can quickly be dispelled by the fact that commercial hemp has around 0.003% THC; it is therefore impossible to gain any narcotic value from commercial hemp.


17

Another myth is that high THC plants will be grown amongst the low THC commercial variety, avoiding detection by authorities. Hemp plants pollinate on the wind and will cross-pollinate with any high THC plants, rendering them impotent. It also means that any high THC plants within the area (5 KM) will be rendered useless as a drug. With farmers adapting to hemp as a rotational crop, for profit and soil/cost benefits, the paddocks will remain green with commercial hemp the year long, reducing the illicit output of drug dealers in the nearby forests.

Downfalls and Objections The Australian Government currently has a ban on hemp for food and health product use for humans. This is not the case in many states in the USA, also Canada, the UK and most EU countries. The Federal Government only allows it to be sold, within Australia, as an animal food supplement. Most people purchase the animal products and use them for human consumption. This ban currently prevents Australia from reaping the highest benefits from the hemp cultivar and should be reversed as soon as possible, to remove the disadvantage imposed on Australian business. This quote from a publication in 2002 shows the ignorance that existed within government departments at that time:

“There has been an application for approval of the inclusion of industrial hemp seeds and oil in food and

these are a good source of unsaturated fats. These are a by-product of industrial hemp which is now being

grown experimentally as an alternative source of fibre for paper, fabrics and other purposes.”

The conclusion:

“Ministers decided to retain the total prohibition on the use of industrial hemp as a novel food. Ministers

believe that the use of hemp in food may send a confused message to consumers about the acceptability

and safety of Cannabis. There are also concerns about law enforcement issues, particularly from a policing

perspective there are difficulties in distinguishing between high THC Cannabis and low THC hemp

products.”

http://www.health.gov.au/internet/main/publishing.nsf/Content/foodsecretariat-communiques-

02_24may.htm Thankfully, that attitude is changing and this year it is expected that a decision to remove the bans will be forthcoming.

Tasmanian Regulations

“It is necessary to have a license to legally grow plants of the genus Cannabis in Tasmania. Production is regulated under the 1971 Poisons Act. License applications can be obtained from the Department of Health and Human Services offices, Hobart. Applications for a license should contain the grower’s name, location, total area, variety, reason for production, value adding or processing activity intended and end use of material produced. Police clearance is required before licenses are approved. Hemp production sites must be out of view of public roadways and more than 5 km from schools and hop producing areas. The crop will undergo routine inspections by field officers of the Poppy Advisory and Control Board several times during the growing season, and random samples will be taken near flowering time and sent to an independent laboratory to establish THC levels. The cost of analyses is to be borne by the producer or licence holder. Crops found to exceed maximum allowable tolerances of THC will be destroyed.”


18

Poppies, which cause death if used illegally, can be grown anywhere. These regulations need to be changed if the hemp industry is to have any success. Hemp is not new to Tasmania and it has been trialled many years ago. The wood chipping industry lobbied the state and federal governments and had those trials stopped. These objections will likely be raised in the future, now that the forest industry is to be plantation based. It is essential to work together with the forest industry in phasing out wood chipping in favour of sustainable forest timber harvesting and prevent this conflict from arising. Hemp is a far better producer of fibre than plantation timber and the forest industry can use it also, with the same benefits derived by farmers; discussions are needed. Commercial Hemp is a crop like any other and farmers will use it in much the same way as potatoes or poppies. Because of the versatility of this crop however, commercial hemp can be a very profitable crop. Being a food crop also, it does not detract from the core business of growing food, unlike other fibre crops and plants grown solely for bio-fuels. It is important however, to realise that hemp will not supply all our food needs and other food crops, dairy and meat production should continue in parallel. It is only with bio-diversity that our ecology will survive and help to prevent the worst of climate change. If hemp is used as a fibre source, to replace wood chipping of plantation trees and native forests, another use for the huge areas of plantation, that have been established in this region, must be found. As discussed at the outset, this is a collection of ideas that should be used in conjunction with each other, to create a holistic approach to regional development of the North East.

Hemp Requirements

• The State and Federal Governments must stop supporting the wood chip and hydrocarbon industries and favour instead, sustainable industries, such as commercial hemp. Once carbon tax is placed on forestry operations hemp will be a more viable alternative and should attract support in a carbon economy.

• Local government, along with the State Government and other interested bodies, must ask the

Federal Government to lift the ban on hemp food and health products for human consumption. This will bring us into line with other nations and allow us to reap the higher benefits of a hemp economy.

• The archaic licensing laws must be changed in Tasmania, to allow hemp to be grown under the

same conditions as any other crop. This is a low THC crop and as such and will actually help to prevent illegal marijuana growth.

• Local government and other interested parties must research funding sources for sustainable job

creation.

• A farmer’s cooperative should be set up to handle the supply and distribution of hemp seed and the sale of hemp raw materials to manufacturers. There will also be a need for training for farmers in growing and handling the crop and in licensing procedures; the farmer’s cooperative can handle this also.

• Investors and manufacturers must be sourced and encouraged to participate in this project to make

it viable. With a guaranteed regular supply of raw materials it should be possible to get government assistance in relocating companies and individuals, from interstate and overseas, to the region. With good market prospects it should also be possible to attract investment, possibly under the MIS umbrella.


19

• Possible sources to attract funding are: Green Chip Review http://www.greenchipstocks.com/ and Climate Spectator http://www.climatespectator.com.au/ (part of the Business Spectator group)

• Finally, hemp must be recognised for its contribution towards slowing climate change, by reducing

the impact on carbon sinks. With the need for soil improvement, less dependence on farm/forestry chemicals and with a requirement for a reduction in water use, hemps can give great benefit there also. With the growing of a versatile and recyclable manufacturing industry, from hemp, N E Tasmania will go a long way towards achieving emissions and other environmental targets for the state and the country as a whole. That contribution will be rewarded by a lower handicap from carbon tax. It is therefore essential that N E Tasmania receive the recognition and support of both state and federal governments on this issue.

The next section deals with plantation timber uses other than for fibre.

Changes to Plantation Timber The establishment of so many plantations in the North East is considered by many to disadvantage to tourism. They also impact on farming, for the following reasons: E Nitens plantations are large consumers of water. Placed in water catchments, they impact greatly on downstream supply, for other users. One solution would be to have a water audit in every catchment and calculate water yield and usage for that catchment. That way existing farm use can be deducted from the available water to determine how much plantation can be established. This has not been the case so far and plantations have been put high in the catchments, regardless of what is required by other water users. In many cases, despite the high rainfall farmers have had bores, creeks and dams dry up. Traditionally, water is put into two categories: Above ground (streams, rivers and dams) and below ground (water table). In reality they are the same. A catchment has only the water supplied to it by rainfall, which flows above and below ground. “If water is taken from higher up in the catchment it will impact on available water lower down”. Dr David Leaman www.crcforestry.com/Water.pdf Another major problem is that, E Nitens grown in monoculture plantations require chemical spraying, to kill competing vegetation and to remove those pests not repelled by the tree’s own defences. Research has shown that these chemical compounds may be responsible for reproductive system cancers in humans. http://www.ncbi.nlm.nih.gov/pubmed/17520059 Chemical companies have gone to great lengths to show that these chemicals do not cause cancers in humans. However, the EU took a precautionary position and chemicals, such as Atrazine, were banned in all EU countries about 10 years ago. The method of distribution of the chemicals was also suspected and again the cautionary principle was applied and aerial spraying was outlawed in all 29 EU countries in 2009. The reasons have been outlined as clearly due to the endocrine disrupting properties of these chemicals, impacting on human and animal health. Other research on aerial spraying of Glyphosate (Roundup) and Dithane Vondzeb (a known carcinogenic) has shown the following: Deaths due to Breast, prostate and thyroid cancers and in some cases brain cancers were due to the spraying of plantations. This research also found other illnesses such as respiratory and heart disease. Common symptoms are itching eyes and skin irritation, diarrhoea and bodily aches and pains. www.dirtybananas.org/pdf/local_studies_on_aerial_spraying.pdf In Tasmania, Atrazine has been used over many years. This powerful herbicide is a neurotoxin; an endocrine disrupter and can seriously damage the human immune system. The combination can be devastating, with cell clusters forming in breast and prostate glands, causing cancers to occur. Rare cancers, such as thyroid, are occurring more frequently than at any other time.


20

Neurotoxins are responsible for itchy skin and aches and pains, which affect the whole nervous system. It is believed brain tumours, now quite a regular occurrence in some parts of Tasmania, are as a result of neurotoxins. Forestry Tasmania has a new secret weapon in its fight against leaf eating caterpillars. The new pyrethrum-based insecticide, Alpha-cypermethrin, is far from new. Originally used to kill ticks on sheep, Veterinary Surgeons banned it because it also killed sheep. Alpha-Cypermethrin is a synthetic pyrethroid, a neurotoxin and an endocrine disrupter and it has an impact on the immune system. Research from other countries has shown a trend towards ending aerial spraying and the use of endocrine disrupting chemicals. Tasmania should also adopt a cautionary principle towards plantation spraying. Another serious effect E. Nitens trees have on the environment is due to the very leaves from which the plant derives its name. The Shining Gum is so named because the juvenile leaves, at the base of the tree, are silver in colour and shine in the sunlight. These young leaves contain naturally occurring toxins, which are normally found in all Eucalypt species. http://www.ansci.cornell.edu/plants/medicinal/eucalyp.html However, toxins in E. Nitens leaves have proved to be many times stronger than in other species. The plant has been bred to be resistant to browsing animals. Leaves fall from evergreen trees, throughout the year and because these trees require a lot of water they are often planted in water catchment areas. As identified by Dr Alison Bleaney and Marine biologist Dr Marcus Scammel, after a four-year study of the water feeding St Helens, the George River catchment, it was discovered that the trees were having an impact on the drinking water and therefore the population of St Helens. http://www.nwtptas.org.au/cleanwater.php This intensive study used 6 reputable laboratories, from Australia and New Zealand and all found the leaves to be overly toxic. Samples of leaf scum also proved to contain higher than normal levels of the same toxins. Dr/s Bleaney and Scammel recorded high levels of Eucalypt toxins in every part of the river, from the catchment to the St. Helens Bay. The same results were recorded at various times of the year and a documentary - SOMETHING IN THE WATER - was made about the study, by the ABC. http://www.abc.net.au/austory/content/2007/s2827178.htm A subsequent reaction from the State Government prompted a report to be written, to destroy the credibility of Dr/s Bleaney and Scammel. This report was constructed mainly from existing figures and took just two months to compile. Needless to say, it found no evidence of toxins in St. Helens water supply. St Helens District Cancer Investigation Summary Report, DHHS, June 2010 The State Government has a duty of care to the Tasmanian public and the study undertaken by Dr Bleaney and Dr Scammel deserved at least a halt on current plantation development, until the study could be verified. It also warranted a longer, more detailed study than a two-month compilation of medical facts from an office in Hobart. The cautionary principle has not been applied and if it is found later that the Bleaney/Scammel study is correct, class actions will doubtless follow. The recent history of forest operations has been dominated by wood chipping and many native forest areas have been converted to plantation. Despite fuelling by investor funding and the Federal Government’s Managed Investment Scheme (MIS) three out of the four major wood chipping companies have gone into receivership. The remaining company, Gunns Timber Ltd. Has vowed to end native forest logging and concentrate on plantations to feed the proposed Tamar Valley Pulp mill. As no date has been given for the exit from native forests, it is likely conversion to plantation will accelerate over the next few months, to increase plantation stock for the mill. This will increase the burden on the landscape and leave an even greater legacy of E. Nitens for the northeast to deal with.


21

With Gunns’ share price having lost 87% of its value and now dwindling at the mercy of contrarian buying, it is unlikely the pulp mill, the fantasy of Gunns’ former CEO, John Gay, will ever eventuate. There has been a recent rise in the share price, following the TASMANIAN FORESTS STATEMENT OF PRINCIPLES, as agreed between conservation and forestry groups. The rise (approx. 20%) was caused by Gunns announcement of the pulp mill being back on track. This was prompted by the report’s suggestion of a pulp mill being included in the forest program. The share price however, is slipping back down again, after an initial surge and will likely return to around the 50c mark due to an increase in the cost of doing business with Australia. The Australian Dollar has eclipsed the US Dollar and looks likely to remain slightly above parity for at least the next 12 months. This increases the commodity price of woodchip and will possibly be the final nail in the eucalypt coffin of Gunns Timber Ltd. The impact on Northeast Tasmania, after Gunns inevitable demise, will be felt long after the dust cloud has fallen onto the leaves of those shining gums and removed the lustre. Wood chipping of forests and plantations is a waste of a valuable resource and is clearly financially unsustainable. The legacy of these plantations is something the population of Tasmania will have to live with for years to come. The water catchments, particularly in the Northeast, are lined with E. Nitens, Tasmania’s shining inheritance. As mentioned above, there are better, cheaper and more sustainable ways of producing paper and it is likely the demand for E. Nitens will diminish with the rising dollar. N E Tasmania has to find other uses for E Nitens and a way of removing the toxicity from the water catchments.

Removal of Toxic Assets Dr Bleaney and Dr Scammel have identified a serious problem in our water catchments, one that will haunt future generations and create a huge burden on Tasmania’s health services. It is obvious the toxic trees cannot remain in water catchments and they have to be removed in order to restore safety into community drinking water. http://www.abc.net.au/austory/content/2007/s2827178.htm

The Future for North East Forestry There is however, a way around the problem and possibly a saving grace for Gunns and the forest industry. Apart from being suited to paper manufacture, E. Nitens is also a very attractive timber, suitable for joinery, floor boarding and decorative wall panelling. Its golden appearance may be the real sheen that will restore the landscape, the forest industry and the health of the population. It is suitable for structural framing, decking and if treated, can be used in the ground. The timber is, by nature or cloning, pest resistant, giving some protection against termites, a problem more prevalent in mainland Australia. There are some research papers in existence, showing uses other than paper manufacture, for this precious resource. The government site below shows graphically, how versatile and attractive this timber is. The timber is also known as Australian Ash (Eco Ash), which would suggest that used in this way it will be more ecologically sustainable. http://www.tastimber.tas.gov.au/SpeciesDetailsGeneral.aspx?SpeciesID=11 In a New Zealand trial by Ensis (formally Forest Research) it was found that quality solidwood products could be made from E. Nitens plantation timber. Butt logs from 15-year old samples were suitable for saw logs of around 5.5 metres in length and 2nd and 3rd logs were suitable for laminated timber products, due to the heavily branched stems at that level.


22

It was also found that veneer products could be made from first and second logs from 6-year old trees at 2.6 meters in length and peeled at 2.6mm in thickness, from a tree girth 57cm at chest height and 36 Metre overall height. This allowed for the peeler logs to provide full sheets of veneer (1200 x 2400) and lamination of the layers met structural specifications as laid down in AS/NZS 2269:1994 for plywood. With acoustic testing for wood density, laminations of 38mm thick were created and then cut into 90mm x 38mm structural beams. These were checked for structural strength, stiffness and tensile strength and met AS/NZS 4063: 1992 as framing timber. The tests conclusively found those beams to be stronger than structural Radiata pine in all cases. Structural Plywood Tests Link

What are Other Countries Doing?

Germany, a world leader in forest care and management, realised that monoculture plantations do not work. They remove bio-diversity, species habitat and impact greatly on water use. They also require treatment against pests. Today, most European countries advocate mixed species plantation, with under-story and ground cover included as part of the solution. This works in a similar way to a forest and with trees maturing at different rates, has less impact on water use, once established. www.unece.org/timber/docs/dp/dp-22.pdf Tasmania could follow that example by systematically removing most of the E. Nitens stock for timber use. Subsequent replanting of mixed species will lessen the impact of toxins in water catchments and rebuild bio-diversity. With so many E. Nitens plantations, there will be a constant supply of usable hardwood and value adding, will return skills to the community and create real jobs and a thriving industry.

Processing Scottsdale has two sawmills, the recently closed Tonganah Mill and the Ling Siding Mill, also about to close. Gunns Timber Ltd. owns both mills and is struggling to strip liabilities. Both mills are on rail sidings and both mills are on a main highway, making access to markets practical. A possible solution would be to retain the Ling Siding mill as a pine processor and establish the Tonganah Mill as a plantation-based, hardwood mill. E Nitens can be processed in the ways mentioned above, for structural and decorative hardwoods. In the interim, native forest saw logs can be processed until suitable E.Nitens timber is sourced. Both mills could produce sawn timber, dried and in some cases, impregnated with preservatives. Impregnation of E. Nitens hardwood, in the same way as pine is treated, is possible for plantation hardwoods, such as E. Nitens, due to the sapwood percentage of all plantation hardwoods. This gives added value with in ground and marine use possible. http://www.timberqueensland.com.au/ Sawn timber would then output to a moulding mill. A moulding mill, centrally-placed between both sawmills, for the milling of sections, decorative mouldings and profiles could handle the output from both the hardwood and the softwood mills. The establishment of a joinery works, possibly a window and a door manufacturer, adjacent to both, could also be encouraged. They could use profiles created by the moulding mill, saving milling operations. Many other small businesses could attach themselves to both mills, creating a forest-based commercial area. A craft mill, for instance, could recycle timber waste into panels and a kitchen manufacturer or general cabinetmaker could process these and hardwood and softwood products.


23

A staircase maker could also be put in the line and all outputs could be sold through a retail outlet on the site, via wholesale distribution and advanced to a kit-home builder. There is a trend towards quality, traditional timber homes. It is possible that houses could be prefabricated into kits on the site and shipped inter or intra state.

Aims The primary aim is to have a timber processing industrial complex, that does not impact on the environment, either visually or ecologically and that will create employment in the region. As discussed, the facility will use existing hardwood and softwood plantations in the area and process them into solidwood products. The purpose, apart from employment creation, is to clear the landscape of E. Nitens plantations, in favour of mixed species plantations. The process is to systematically remove and thin plantations, starting in the catchments and interplant with mature seedlings of different species, for faster establishment. The finished plantation will simulate a natural forest and can be selectively logged, with every tree available for timber use. Canopy development, under story and forest floor vegetation will facilitate wildlife, filter water and allow for proper soil creation and retention. It will also help prevent flooding in the region.

Job Creation The forest industry has always been a backstop for commerce in Tasmania, however, the past 30 years has seen a decline in real jobs within that industry. Mainly due to the industrialisation of harvesting and with wood chip becoming the major product, rather than a bi-product of logging, jobs have been slashed by around 80% on 1980 levels. The closure of the two Scottsdale mills has further impacted on employment in the region and a likely outcome will be an exodus of working age people from the district. It is therefore necessary to find ways in which business can be enticed into the area, creating employment opportunities. Using the legacy of E. Nitens and E. Globulus plantations to make sustainable products, which can be supplied to a domestic market, instead of exporting, it may be possible to create a niche. At the same time, proper timber use can rid the landscape of the monoculture legacy, which is harming Tasmania’s environment and destroying other industries.

The Objections

Timber prices have declined globally over the last few years as a resource; is it therefore viable? Shrinking timber prices can be blamed in part on wood chipping and devaluing timber as a commodity. Timber needs to be regarded in ways other than by pure price. It is a vessel for job creation and if made available to the local market first and at the right price, more use will be made of it. Exporting it as a commodity sets Tasmania up against third-world countries, lower labour costs and unsustainable practices.

Can we compete in the domestic market with foreign imports?


24

Trade agreements have created a situation, especially when foreign governments protect against imports and the Australian Federal Government does not. A change in policy is required to help Tasmania/Australia into a financially and ecologically sustainable future.

What sort of products should we make for a domestic market? Making specialist furniture and joinery products that meet sustainable values will serve local markets. Marketing must reflect Australian/Tasmanian values and branding. Environmentally sound products not only attract sales but will also be carbon tax exempt.

What about competition from big business? Large corporations, which crave volume timber sales, will want to export products rather than compete in local markets, however, discussions will need to take place and possible partnership/investment can be negotiated. This sort of operation is more plausible when applied to small business and will create more jobs locally. The State Government should legislate to protect small business and help provide jobs.

Further discussion is required in the following areas:

• Technical issues regarding processing of hardwoods • Technical issues regarding impregnation of preservatives • Market research to find required products and possible markets • Financial research for funding • Financial research for viability • Number of jobs to be created • Training and recruitment requirements and methods • Impact on regional infrastructure and • Impact on the environment • Changes to legislation, regarding import protection and small business shielding.

Coop or Regional Development Board A regional development board can be established to:

• Seek funding from government grants, environmental charities and philanthropist organizations.

• Encourage industry participation in the project and or funding.

• Purchase land and

• Organise training facilities with educational organizations.

Coop Bank Set up to handle regional development in the NE, this bank will facilitate low interest loans for development projects, low interest finance for rent/buy schemes for workers, relocated into the area and


25

to handle grants from government departments and others for farming and timber development schemes. The bank can also handle treasury matters for the Coop/ Regional Development Organization, in order to keep the financial process clean and transparent. Setting up a community bank is one way of achieving this aim. Bendigo Bank has such a scheme for small rural areas, with a partnership between a local entity and the Bendigo Bank. This extract taken from their website PDF shows how it works: “Establishing a community bank branch involves a locally based public company, limited by shares representing all or part of the local community, purchasing the right to operate a branch of BB. The community secures the premises, purchases fittings and systems, and meets branch running costs. BB provides the banking license, the bank brand, product development, systems, acquisition of requisite service support, and supports the branch with operational requirements including marketing support, training, stationery, statements and administration.” The bank can facilitate low interest loans, unsecured finance and meet the general needs of this community in its redevelopment phase. www.latrobe.edu.au/csrc/publications/communityBanks.pdf

Power to the People Biomass energy is one of those buzzwords banded about today as a green alternative to fossil fuel power generation. It is clearly an alternative and if carried out correctly, has the power to reverse climate change forever. There are however, many industrial power generation schemes under the guise of Biomass that are anything but sustainable. When one talks about sustainable power generation it has to be from renewable sources, that much is clear. The method of obtaining power however, has to be carbon neutral, in order for the process to be completely sustainable. The burning of woodchips, to produce steam, which drives a turbine and thus a generator for example, is renewable energy and as such has been classed as Biomass Energy. It is not a true carbonless solution however, because it emits the carbon previously stored in the tree from which the chips are made. The true form of Biomass Energy comes from burning without oxygen, a process called Pyrolysis, which is the use of heat to break down complex organic or chemical substances into simpler forms. By containing the material being burnt in a sealed chamber, it is possible to create very high temperatures without the presence of oxygen. The process has a distinct advantage over conventional firing in that it contains the carbon within the residue, after the burning process is complete. That in its self is a good thing because the build up of carbon in our atmosphere, from burning fossil fuels, causes climate change. Where the real value adding comes into play is the return of that carbon to the soil. If the Earth’s soils can be improved (carbon-wise) by 1%, climate change will cease to exist. http://www.dairyaustralia.com.au

The Benefits of Carbon in the Soil The reintroduction of carbon to the soils, from vegetation, is a plus for agriculture and forestry. Plants use carbon to build cells. This is mainly taken from the atmosphere, via the process of photosynthesis and is then partially released into to soils, via the roots, in some plants. If the plant can take up more carbon from the soil it means there is more carbon available to build stronger cells, faster and therefore cause quicker growth. It also means less fertilizer use, which is a cost benefit to the grower. http://www.healthysoils.com.au/carbon.html


26

There is Nothing New about Putting Carbon into the Soil The ancient South American Indians knew about the benefits of soil carbon around 450 BC and used this charcoal soil to grow crops. The carbon soil-effect is believed to have been discovered around cooking areas and then transported to the fields by the native Indians of the Amazon Basin. Some theorists believe it is the residue of volcanic activity in the region, while other theorists claim it is the remains of lake sediments. Whatever the cause, it worked and still does. The South Americans call it Terra Preta, which is Portuguese and literally means black earth. Today it is called Biochar and there are no prizes for knowing the origin of that name. In experiments, using organic matter in liquid form, the fertilizer value added in nutrient value.

So, how do we make electricity from this process? Invented by Scottish Reverend Robert Stirling, around 1816, the Stirling Engine is an external combustion machine, which relies on the opposites of hot and cold to work. Heat is applied from an external source and heats a cylinder, filled with gas. The gas expands and pushes a piston down, turning a flywheel. The opposite cylinder or chamber is cooled, causing compression and continuing the cycle. There are various forms of Stirling Engine and it is not necessary to deal with the mechanics at this point, unless we intend making our own. The engine has a near silent operation and a constant slow speed. Put through a gearbox to increase that speed, it is ideal for generating electrical power. It is also one of the most efficient types of engine and therefore cheaper to run to get the desired result than almost any other form of dynamo power generation. There are manufacturers around the world that build power generators, using Stirling Engines for just about any application, from low output models of a few KW’s to large units that power industrial applications. They can also be manufactured to take any type of heat source, from solar, gas and oil to biomass. A Danish brochure: http://viewer.zmags.com/publication/bd1b913c#/bd1b913c/28

Biomass Energy Outcomes for N E Tasmania In the event of a local farmer’s cooperative and subsequent vegetable processing/marketing facilities being developed, it is possible to use farm waste to drive a Stirling Engine and generate all the required power, for that development. For the suggested timber industrial park, there will be continual waste output from all facilities. This can be chipped and fed into a Stirling Engine to generate all the required power for that operation also. Both facilities will therefore be self-sufficient in electrical power and will have fertilizer for soil improvement in plantations and on farms. This gives an enormous cost benefit on the daily running of both operations and will likely be the difference between success and failure. With industrial hemp providing bio fuel for tractors, trucks and forest machinery and even diesel locomotives and bio power being provided by waste products from both facilities, both initiatives will be carbon neutral, giving them an advantage against the inevitable carbon tax. The added benefits of soil carbon, as a fertilizer, for both plantations and farm paddocks, will also add to carbon credits, creating another cost benefit to both enterprises. It is hoped that biomass energy production and the added benefits of soil carbon replacement (SCR) will attract the necessary federal and international funding to get these projects off the ground.


27

As both schemes are also job creation and regional development projects, it is likely other funding will be available also.

Branding In order to survive a downturn in the local economy and the subsequent loss of employment the North East has to reinvent its self. Agriculture is the real mainstay for the region and needs to be reinstated as the focal point of our economy. If handled correctly, farming can be the saviour, which will create the necessary jobs to rebuild the region and take it forward. Niche markets need to be created with a diverse range of natural products, value-added from the farming process. It is no longer possible to rely of the duopoly of Coles/Woolworths for direction. It is no longer viable to base our economy on low-cost staples, such as root vegetable crops to suit yet another corporation. The world craves quality organic produce at the right price. Supermarkets have pandered to that market by hiking prices on produce that is hardly desirable. What this region needs is a brand, which is synonymous with quality and natural goodness. Wine producers have known this for many years and boutique wineries have used natural names to brand their goods, adding romance and natural beauty to their products. North East Tasmania needs to do likewise and create a unique brand under which it markets itself and its unique produce.

Cuckoo Falls or… Forester River? First thoughts should be to take the name of something beautiful and natural from the region and build on that. Cuckoo Falls is a local beauty spot, which fits the task and is picturesque, however, a name like Forester River, for instance, carries the region’s history and conjures up a natural image. A name like Forester River will give a unique branding to all products grown in the region, including timber.

Some Possible Examples: Forester River Produce Honey. Balsamic and Hemp Oil salad dressing – Mayonnaise – Sandwich Spread – Sauces – Vegetables and fruit all organic – Fresh, Packaged, canned and frozen Forester River Meats Organic beef, lamb and pork and other farmed varieties, such as Wallaby and Venison Forester River Poultry – poultry (organic and free range) and eggs Forester River Smallgoods A selection of continental cooked meats, sausages, wursts Forester River Bakery Breads, cakes, pies and pastries, made from hemp protein and other exotic flours Forester River (organic) Wines Select wines, grown organically and of excellent quality


28

Forester River Brewery Selection of boutique beers, using locally grown malt, barley, honey Forester River Timber Products Furniture and joinery products, plus hardwoods and softwood mouldings, all plantation-based and grown in the region All products grown and manufactured in the region can be quality approved and wear the label.

Research Facts:

Industrial Hemp Industrial hemp is the industrial form of Cannabis sativa. Industrial hemp is also known as Indian hemp, industrial cannabis or hemp. This form of C. Sativa produces high-quality fibre and seed for a wide range of applications and has no mind-altering properties. The plant has a long history of being used in the production of textiles, paper, rope, fuel, oil and stockfeed. http://www.dpi.qld.gov.au/26_10750.htm Much of the information in this report has been researched in WA and Queensland via Hemp Resources Ltd. http://www.hempresources.com.au/ For information regarding Tasmanian hemp research, the following link shows findings based in Tasmania. This site supports the findings of this paper, however, due to a lack of realisation on hemp product sales in Tasmania, the estimated potential is limited, compared with findings on the mainland and overseas. This site also contains information for the licensing of industrial hemp within Tasmania. http://www.dpiw.tas.gov.au/inter,nsf/WebPages/TTAR-5R86BK?open#top Hemp seeds contain all the essential amino acids and essential fatty acids necessary to maintain healthy human life. [16] The seeds can be eaten raw, ground into a meal, sprouted, made into hemp milk (akin to soy milk), prepared as tea, and used in baking. The fresh leaves can also be eaten in salads. Products range from cereals to frozen waffles, hemp tofu to nut butters. A few companies produce value added hemp seed items that include the seed oils, whole hemp grain (which is sterilized by law), dehulled hemp seed (the whole seed without the mineral rich outer shell), hemp flour, hemp cake (a by-product of pressing the seed for oil) and hemp protein powder. Hemp is also used in some organic cereals, for non-dairy milk [17] somewhat similar to soy and nut milks, and for non-dairy hemp "ice cream." About 30–35% of the weight of hempseed is hempseed oil or hemp oil, an edible oil that contains about 80% essential fatty acids (EFAs); i.e., linoleic acid, omega-6 (LA, 55%), alpha-linolenic acid, omega-3 (ALA, 22%), in addition to gamma-linolenic acid, omega-6 (GLA, 1–4%) and stearidonic acid, omega-3 (SDA, 0–2%). Whole hempseed also contains about 25% of a highly digestible protein, where 1/3 is edestin and 2/3 are albumins. Its amino acid profile is close to "complete" when compared to more common sources of proteins such as meat, milk, eggs and soy. [20] The proportions of linoleic acid and alpha-linolenic acid in one tablespoon (15 ml) per day of hemp oil easily provide human daily requirements for EFAs. Unlike flaxseed oil, hemp oil can be used continuously without developing a deficiency or other imbalance of EFAs. [21] This has been demonstrated in a clinical study, where the daily ingestion of flaxseed oil decreased the endogenous production of GLA. [21] http://en.wikipedia.org/wiki/Hemp#Nutrition


29

For other information and map download: http://upload.wikimedia.org/wikipedia/commons/7/71/CarteChanvreVert.svg

Forestry/Timber Related Research http://www.timberqueensland.com.au/ www.unece.org/timber/docs/dp/dp-22.pdf Boletin del CIDEU 2:51-55(2006) ISSN 1885-5237 http://www.tastimber.tas.gov.au/SpeciesDetailsGeneral.aspx?SpeciesID=11 http://www.abc.net.au/austory/content/2007/s2827178.htm TASMANIAN FORESTS STATEMENT OF PRINCIPLES St Helens District Cancer Investigation Summary Report, DHHS, June 2010 http://www.abc.net.au/austory/content/2007/s2827178.htm http://www.nwtptas.org.au/cleanwater.php http://www.ansci.cornell.edu/plants/medicinal/eucalyp.html www.dirtybananas.org/pdf/local_studies_on_aerial_spraying.pdf http://www.ncbi.nlm.nih.gov/pubmed/17520059 www.crcforestry.com/Water.pdf

Biomass Generator Manufacturers www.stirlingbiopower.com/STIRLING/FOLLETO.pdf www.forestprod.org/smallwood04walt.pdf http://cqhnjtgs.en.ec21.com/1MW_Biomass_Gasifier_System--495772_1409247.html http://tnjd888.en.ec21.com/

Some studies done on Biomass Power http://www.dairyaustralia.com.au/Farm/MicroSite1/Home/Climate%20impacts%20and%20responses/Carbon%20sequestration/The%20soil%20carbon%20story.aspx Recent Advances in Biomass Energy in Europe .pdf http://www1.eere.energy.gov/biomass/abcs_biopower.html

Soil Carbon http://www.dairyaustralia.com.au

Possible Funding Research http://www.greenchipstocks.com/ http://www.climatespectator.com.au/ www.latrobe.edu.au/csrc/publications/communityBanks.pdf

Organic Foods http://www.ota.com/organic/mt/business.html


30

Contact the Author David Leigh 0488 952 233 (03) 6354 1051 [email protected]

Your Notes:

Documents

The Growing Future