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FWPA leadership program makes an impact

GFIS - Thu, 26/07/2018 - 02:05
The Forest Products Commission is now home to two graduates of the Forest and Wood Products Australia (FWPA) pilot industry leadership program For Our Future. Source: Timberbiz Senior Policy Officer Bronwen Williams and Operations Projects Officer Jane Charles both completed the intensive program and found it to be a hugely rewarding development opportunity, and think it will have a big impact on the future of the industry. “We attended one intensive four-day residential session in WA, before coming together with the South Australia group for a five-day learning program in Melbourne in early June,” Ms Williams said. “The intensive program was confronting at times, as participants were asked to reflect on how they handled different situations and gain greater insight into how others interpret the same situation,” Ms Charles said. Other parts of the program included initial assessment and testing, different ways of framing issues, organisational dynamics, and conflict resolution. “One of my most valuable takeaways from the program is that leadership is a set of skills, not a position, and that emotional intelligence is critical to understanding the root cause of the challenges we face in our professional and personal lives,” Ms Williams said. Other participants in the program included Wespine, Wesbeam, Australian Bluegum Plantations, WA Plantation Resources, Bunbury Fibre Exports, and LV Dohnt & Co. “We tackled an industry problem as a group, and organised field trips to each other’s operations which gave us a better understanding of each other’s business and the industry more broadly,” Ms Williams said. “I believe the delivery of this program will provide long term benefit to the industry, building a platform of collaboration to support a vibrant and sustainable industry into the future, and we encourage the FWPA to support another program.”

Braddon by-election Reachtel poll results

GFIS - Thu, 26/07/2018 - 02:04
Fresh polling shows 7 in 10 voters in next weekend’s Braddon by-election are more likely to vote for a candidate that supports North-West Tasmania’s renewable Forest Industries, Chief Executive Officer of the Australian Forest Products Association (AFPA), Mr Ross Hampton said. Source: Timberbiz The Reachtel poll of more than 800 Braddon voters this week, commissioned by AFPA, shows the by-election is on a knife edge. With around 2400 people in Braddon either directly or indirectly employed by forestry, Mr Hampton said the by-election could be determined by the candidate with the best vision for North-West Tasmania’s Forest Industries. “Thousands of families in North-West Tasmania rely on our industries and all of the candidates and political parties contesting Braddon need to commit to AFPA’s plan to grow our renewable industry and create hundreds of new jobs,” Mr Hampton said. “This coming week candidates will need to tell the voters of Braddon whether they will back our industry’s plan for growth in North-West Tasmania. “Our six-point plan will turbocharge Forest Industries in Tasmania by driving new plantations that will create new timber manufacturing jobs, give certainty to our world-leading hardwood manufacturers that rely on our sustainably-managed native forests, and incentivise innovation and value-adding in timber and wood processing,” Mr Hampton said. Key poll results include: 70%of voters, including more than three quarters of those who are undecided, would be more likely to vote for a candidate or political party with policies that support North-West Tasmania’s Forest Industries. Almost 9 in 10 voters support Australia’s native forest timber industry. More than 3 in 4 voters believe Forest Industries are important to the local economy in North-West Tasmania. “I look forward to support for Forest Industries across the broad political spectrum. They are incredibly important to the economic and social fabric of North-West Tasmania and our specific Asks need to be committed to, to ensure their vibrancy and longevity. This snapshot shows the sector cannot be ignored,” Mr Hampton concluded.

LINX Cargo Care Group’s agreement to acquire Pedersen Group

GFIS - Thu, 26/07/2018 - 02:01
LINX Cargo Care Group, and its subsidiary C3 Limited, has been successful in its bid to acquire Pedersen Group, a market leading provider of wood chipping and wood yard management services to pulp and paper mills, and forest owners in Australia and New Zealand. Source: Timberbiz Pedersen Group handles over 8.3 million tonnes per annum of wood fibre across its operations, in the form of logs, wood chip and hog fuel. The company employs 140 people across Australia and New Zealand and has an existing joint venture with C3 Limited, which provides wood yard management services to customers. LINX Cargo Care Group has entered into the purchase agreement with Pedersen Group which is expected to be completed mid-August. Pedersen Group CEO Gavin Hudson said the conditional agreement reached this week will provide the Pedersen Group with an aligned and committed long-term owner, which will enable Pedersen Group to continue to focus on providing critical services to its customers. “We are delighted to finalise this agreement with LINX Cargo Care Group. The acquisition of Pedersen Group by LINX Cargo Care Group will provide long-term stability for our employees and customers, and the operational and financial capacity to allow our business to pursue its growth aspirations,” Mr Hudson said. Anthony Jones, Group CEO for LINX Cargo Care Group and Chairman of C3 Limited said the acquisition of Pedersen Group brings a complementary service offering to customers, including a highly skilled workforce that specialises in wood chipping and wood yard management. “LINX, C3 and Pedersen share a long and rich history in the forestry industry. Our combined expertise and experience will provide an enhanced customer offering, further access to capital, and the opportunity to collaborate and collectively grow into the future,” he said. “We are very excited to welcome Pedersen Group to LINX Cargo Care’s group of companies. Pedersen’s will enable our organisation to grow its services to forest owners and wood processing businesses. “In addition, Pedersen’s capabilities and services complement C3’s existing customer offering and will extend our reach to a customer base in diversified global markets. “The synergies and strategic alignment between Pedersen’s and C3’s forestry business is significant. Importantly, our company values are closely aligned, and we very much look forward to welcoming Pedersen’s talented and highly skilled workforce to the team,” Mr Jones said. Pedersen Group will continue to operate independently under the Pedersen brand following the completion of the acquisition, and all Pedersen employees will be retained by the new owner.

Dreamlike forest paths star in the winning photos of the Dutch photo contest

GFIS - Wed, 25/07/2018 - 13:18
PEFC Netherlands announced the winners of its national photo contest with the theme “mooiste bospaadje” (#mooistebospaadje, Most beautiful forest path). "We thank all contributors for the lovely photos of their own most beautiful forest paths," said Maarten Willemen, Chairman of PEFC...

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Linx Cargo Care to buy Pedersen Group

International Forest Industries - Wed, 25/07/2018 - 11:39

LINX Cargo Care Group, and its subsidiary C3 Limited, has announced  that it has been successful in its bid to acquire Pedersen Group, a market leading provider of wood chipping and woodyard management services to pulp and paper mills, and forest owners in Australia and New Zealand.

Pedersen Group handles over 8.3 million tonnes per annum of wood fibre across its operations, in the form of logs, wood chip and hog fuel. The company employs 140 people across Australia and New Zealand and has an existing joint venture with C3 Limited, which provides wood yard management services to customers.

LINX Cargo Care Group is delighted to enter into a purchase agreement with Pedersen Group and take the next step in the evolution of both companies, which is expected to be completed mid-August.

Pedersen Group CEO Gavin Hudson said the conditional agreement reached this week will provide the Pedersen Group with an aligned and committed long-term owner, which will enable Pedersen Group to continue to focus on providing critical services to its customers.

“We are delighted to finalise this agreement with LINX Cargo Care Group. The acquisition of Pedersen Group by LINX Cargo Care Group will provide long-term stability for our employees and customers, and the operational and financial capacity to allow our business to pursue its growth aspirations”, Mr Hudson said.

Anthony Jones, Group CEO for LINX Cargo Care Group and Chairman of C3 Limited said the acquisition of Pedersen Group brings a complementary service offering to customers, including a highly skilled workforce who specialise in wood chipping and woodyard management.

“LINX, C3 and Pedersen share a long and rich history in the forestry industry. Our combined expertise and experience will provide an enhanced customer offering, further access to capital, and the opportunityto collaborate and collectively grow into the future,” he said.

“We are very excited to welcome Pedersen Group to LINX Cargo Care’s group of companies. Pedersen’swill enable our organisation to grow its services to forest owners and wood processing businesses. In addition, Pedersen’s capabilities and services complement C3’s existing customer offering and willextend our reach to a customer base in diversified global markets.

“The synergies and strategic alignment between Pedersen’s and C3’s forestry business is significant. Importantly, our company values are closely aligned, and we very much look forward to welcomingPedersen’s talented and highly skilled workforce to the team,” Mr Jones said.

Pedersen Group will continue to operate independently under the Pedersen brand following the completion of the acquisition, and all Pedersen employees will be retained by the new owner.

Media Contact: Kate Carulli 0458 458 863 or k.carulli@linxcc.com.au
Photo: Anthony Jones, Group CEO for LINX Cargo Care Group

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NZ – Indian log market activity update

International Forest Industries - Wed, 25/07/2018 - 11:25

The Indian log market has reached China price parity with ‘A’ longs now selling for USD 159-160/JASm3. While volumes delivered to this market are 14% down year on year to May 2018, it has been a steady market and exporters still expect an increase in demand in Q4.

There is an increased schedule of ship arrivals from NZ over the next six weeks, so this will be a good test of this market. Containers of logs are also arriving from Germany, South Africa and southern yellow pine from the USA.

The labour shortage mentioned in previous Wood Matters continues, but some labour has returned to the mills from agricultural work. Log stocks are about 120,000m3 in Kandla and 30,000m3 in Tuticorin. The cash flow of log buyers is still tight after the introduction of GST and the increased scrutiny on bank lending compounding the weakening of the Indian Rupee against the US dollar.

Source: PF Olsen Wood Matters

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NZ Log Market – July

International Forest Industries - Wed, 25/07/2018 - 11:05
Log Market Summary July’s At-Wharf-Gate (AWG) prices for logs delivered to ports around New Zealand are relatively unchanged from June prices. However, some exporters have strategically changed some prices of various grades and lengths, but the overall average price remains unchanged. There has been the usual seasonal slow-down in log demand as the weather heats up in China and log stocks have recently risen by an average of 50,000 m3 per week to a current level of 3.7Mm3. Some log exporters are concerned the falling stock market and the weakening Chinese currency is denting confidence in the Chinese construction industry, but other log exporters are not so pessimistic on the Chinese log market.

The domestic market is still relatively flat for structural sawn timber and there are a few mills around the country reducing production slightly by undertaking maintenance etc. Sales of clear-wood timber are still relatively strong, with stable domestic demand and very strong demand from export markets.

The PF Olsen Log Price Index remained at $132 for July. While prices for pruned logs decreased in a couple of regions around the country, this was balanced by an increase in sale prices for structural logs, as well as pulp logs in the CNI. The index is currently $11 above the three-year average.

Domestic Log Market
Pruned

Mills report that their markets are the same as last month with good demand for clear-wood sawn timber. Domestic demand has been steady and export markets have been very stable with increasing demand due to strong construction figures in both Europe and the USA. Some mills are actually oversupplied with pruned logs and are having to limit log supply, as many forest managers have scheduled winter harvesting in the flatter blocks with easier access that tend to be pruned.

Non-pruned

The domestic demand for structural timber is still flat. Actual housing starts in New Zealand seem to be about 20% behind consents granted. Market commentators aren’t too sure of the reason(s) why this is the case. Many mills in NZ aren’t “busting a gut” with production and some are taking extra days off for worker rotation and maintenance etc.

Overseas, the prices for lumber in Maine, USA have doubled in the last six months. The US construction industry has rebounded with pent up demand for new houses and renovations after the recession and rebuilds and renovations required after recent hurricanes and other weather events that require. This surge in demand has coincided with a restricted supply of lumber. This restricted supply is caused by a combination of some significant forest fires in western Canada last year that caused some mills to close for two months, the trade dispute between the United States and Canada, and a shortage of railcars and trucks to move the product.

The European Organisation of the Sawmill Industry (EOS) held its Summer General Assembly in Oslo in June. Their softwood sawn-wood markets were in general described as ‘rosy’ due to healthy construction in Europe and lively demand from importers with the two main markets being the US and China. Collectively their main concerns were around log supply (Sound similar to NZ?). This lack of raw supply is even more pronounced for hardwood mills as hardwood logs are exported to China. (As an example, in 2013 the EU exported 200,000m3 of oak logs to China, and in 2017 exported 600,000m3). These factors indicate there is unlikely to be any significant increase in production and export to countries to which NZ sawmills export sawn timber. European sawmills actually see a window of opportunity to supply the US.

Exporters of NZ sawn timber have not yet seen any reduction in demand from China due to the weakening of the Chinese Yuan (CNY). The chart below shows the deprecation of the CNY against the YSD over the last month.

Report: Scott Downs Business Development Manager PF OLSEN

https://nz.pfolsen.com/market-info-news/wood-matters/2018/july/log-market-july/

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Södra: 2Q consolidated net sales rose 26%

International Forest Industries - Wed, 25/07/2018 - 10:32

Södra reported sustained strong operating profit of SEK 1,318 million ($149 million) for the 2Q, the best quarterly result ever. The market trend was positive for all of the company product categories and completed investments, efficiency improvements and restructuring are reflected in the result.

Consolidated net sales for the 2Q rose 26% year-on-year to SEK 6,626 million ($751 million), and the operating margin strengthened to 20%. For the first half-year, operating profit totalled SEK 2,257 million ($256 million) – the strongest half-year figure in Södra’s history. Return on capital employed rose to 26% and the equity ratio was 57%.

In the Södra Skog business area, operating profit totalled SEK 49 million ($5.6 million) for the period. The result was impacted by continued weather challenges. Following a cold and snowy winter that made transportation difficult, the dry conditions of recent months have increased the fire danger and significantly impacted forest operations.

In the Södra Wood business area, operating profit totalled SEK 210 million ($23.8 million) for the period, mainly reflecting the positive price level for sawn timber but also the ongoing restructuring process. The result refers solely to the sawmill operations, since the Interior Wood segment has largely been discontinued and is now reported under Other segments.

In the Södra Cell business area, operating profit totalled SEK 1,196 million ($136 million) for the 2Q. The profit trend was mainly attributable to the high price level, a favourable USD exchange rate and the higher volumes enabled by expansion of the pulp mill at Värö.

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Brazil: Mato Grosso to double forest management area by 2030

International Forest Industries - Wed, 25/07/2018 - 09:45

In the State of Mato Grosso, Brazil, there are some 3.2 million hectares of sustainably managed forests and this is expected to rise to 6 million hectares by 2030, as ITTO reports.

In all 44 municipalities in Mato Grosso the domestic economy is driven by the forestry sector which ranks 4th amongst all economic sectors. In 2017 the forestry sector contributed more than R$47 million ($12.6 million) in taxes and over R$16 million ($4.3 million) towards the State Fund for Transportation and Housing (FETHAB).

Forest management in Mato Grosso is very complex and involves compliance with numerous regulations. In addition, authorisations and supervision of forestry activities, including harvesting, transportation and trade, involves several government agencies and the Brazilian Federal Highway Police making management overly bureaucratic.

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Landscape Experts Call for 'Enabling Environment' for Interlinkages

GFIS - Tue, 24/07/2018 - 17:47
An event on the sidelines of the 2018 HLPF emphasized that global agreements must be translated for policy change at the local level, as the SDGs will be implemented "on the ground, not in Conference Room 4". Keynote speaker Achim Steiner, UNDP Administrator, called for land restoration to be embedded in the larger sustainable development community, and said it can be used to address inequality.

OECD Report Explores Biodiversity Mainstreaming

GFIS - Tue, 24/07/2018 - 17:28
An OECD report draws on experiences from 16 predominantly megadiverse countries, highlighting examples of good practices and remaining challenges in four key areas related to biodiversity mainstreaming. It recommends that governments prioritize actions that underwrite a strong business case for biodiversity.

Sustainable forest management needs “incentives revolution”, says Executive Director

GFIS - Tue, 24/07/2018 - 17:00
ITTO Executive Director Gerhard Dieterle says governments needed to do more to encourage sustainable forest management (SFM) in the tropics, including by providing incentives. “In many countries, unsustainable production is more profitable than sustainable practices, which are more expensive,” he said. “So we need a revolution in terms of how the public sector is providing incentives and how it promotes sustainable forest management against unsustainable forest management.” Dr Dieterle made the comments as part of a panel discussion, “Sustainable Wood for a Sustainable World”, held during the 24th session of FAO’s Committee on Forestry and sixth World Forestry Week, held in Rome, Italy, on 16–20 July. Dr Dieterle said that one of the crucial “ingredients” for the widespread uptake of SFM is increasing the demand for sustainably produced forest products by linking forest producers and wood consumers through green supply chains. “If there is no demand for sustainable products we have no sustainable forest management,” he said. Other crucial ingredients, said Dr Dieterle, are a conducive policy, legal, economic and institutional environment; addressing land tenure to keep families on the land; and building more capacity to implement SFM and green supply chains. He pointed out that a lack of capacity to implement SFM is a key barrier to investments in tropical forest production, especially from developed countries. The panel discussion had eight other speakers. Beth MacNeil, Canada’s Ministry of Natural Resources, spoke about how the use of forests, wood and wood fibres contributes to the achievement of the Sustainable Development Goals. For example, forest biomass is becoming increasingly important for energy production and the substitution of non-renewable materials. Magner Adolfo Estrada Barrera, Guatemala’s Vice-Minister of Environment, said that SFM has been a very effective tool for forest development and conservation in his country. Forest communities implementing SFM in Guatemala are now enjoying higher incomes, better education and a higher quality of life. Charles Nyanhui, from the International Family and Forestry Alliance, said that building capacity in community forestry was essential for enabling smallholders to increase the sustainable yields of forest products and therefore their incomes. Marten Larsson, from the Swedish Forest Industries Federation, said that forests have been important for Sweden’s national economy, but the implementation of SFM has also enabled the country to double its standing wood volume since the 1920s. A lesson learned is that innovation is a driver for unlocking the potential of forests. Eva Müller, FAO’s Director of Forest Policy and Resources, stressed the need to change the narrative about forests—looking beyond negative news on deforestation to communicating the potential of forests to contribute to sustainable development. Vicent Gitz from the Center for International Forest Research said that science can help document the tradeoffs and synergies involved in managing forests for different uses, thereby helping improve decision-making. Gijs Breukink, from the World Wide Fund for Nature, spoke about the value of “connecting the dots” between SFM and trade and using innovation to ensure the competitiveness of wood against other materials. Werner L. Kornexl, from the World Bank’s Program on Forests, said climate finance for tropical forests is low, due partly to a problem of perception. The case for the economic relevance of productive forests needs to made, he said, to change the perception of tropical forest production as a risky venture. He agreed with Dr Dieterle on the need for a complete review of incentives that promote SFM. “Sustainable Wood for a Sustainable World” is an initiative of the Collaborative Partnership on Forests, of which ITTO is a member. Its aim is to strengthen sustainable wood value chains from production to consumption to enhance their economic, social and environmental benefits.

Sustainable forest management needs “incentives revolution”, says Executive Director

GFIS - Tue, 24/07/2018 - 17:00
ITTO Executive Director Gerhard Dieterle says governments needed to do more to encourage sustainable forest management (SFM) in the tropics, including by providing incentives. “In many countries, unsustainable production is more profitable than sustainable practices, which are more expensive,” he said. “So we need a revolution in terms of how the public sector is providing incentives and how it promotes sustainable forest management against unsustainable forest management.” Dr Dieterle made the comments as part of a panel discussion, “Sustainable Wood for a Sustainable World”, held during the 24th session of FAO’s Committee on Forestry and sixth World Forestry Week, held in Rome, Italy, on 16?20 July.

IUFRO Report Finds Forests Essential to Water Supply

GFIS - Tue, 24/07/2018 - 16:44
The publication, titled ‘Forest and Water on a Changing Planet: Vulnerability, Adaptation and Governance Opportunities,’ presents a global assessment of scientific information on the interactions between forests and water. The report presents the results of the sixth global scientific assessment undertaken in the framework of Global Forest Expert Panel on Forests and Water (GFEP) and provides a structured synthesis on the state of knowledge on the forest-water relationship.

On HLPF Sidelines, UNFF Showcases Forests’ Role in Achieving SDGs

GFIS - Tue, 24/07/2018 - 16:15
The UN Forum on Forests organized an event highlighting the role of forests in transformations towards sustainable and resilient societies. The event recognized the UN Strategic Plan for Forests 2017-2030 (UNSPF) as a vehicle to achieve forest-related SDGs and explored ways and means to accelerate achievement of the forest-related SDGs and the UNSPF’s Global Forest Goals.

Sveaskog’s 2Q net sales rose 13%

International Forest Industries - Tue, 24/07/2018 - 15:33

Sveaskog’s 2Q 2018 net sales rose to SEK 1,918 million ($216 million), an increase of 13%. Sales of wood raw material amounted to 2.9 million cubic metres.

Operating profit from continuing operations increased by 12% and amounted to SEK 382 million ($43 million). The improvement in earnings is mainly an effect of higher prices. Difficult soil scarification and planting conditions led to a lower level of silvicultural activity. This had a negative effect on external sales of seeds and seedlings.

Profit for the 2Q 2018 increased by 108% and amounted to SEK 914 million ($103 million). New corporate tax rules resulted in lower deferred tax and therefore a lower tax expense which improved earnings by SEK 477 million ($53.7 million).

1H 2018 net sales, which comprise both deliveries from Sveaskog’s own forests and externally procured wood raw material, increased by 8% to SEK 3,567 million ($402 million). Sales of wood raw material amounted to 5.8 million cubic metres.

Operating profit from continuing operations increased by 7% and amounted to SEK 775 million ($87.3 million). Higher prices were offset to some extent by a 7% decrease in delivery volumes from own forests.

The main cause was the extremely snowy winter and record-dry early summer which had a negative impact on felling, soil scarification, planting and external sales of seedlings and seed. This has led to a delivery mix with a lower proportion of deliveries from own forests. On an annual basis, the delivery mix is expected to normalize.

Profit for the first six months of 2018 increased by 67% and amounted to SEK 1,301 million ($146 million).

Sveaskog is Sweden’s leading forest company and sells sawlogs, pulpwood, biofuel, forest seedlings and silvicultural services.

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West Fraser Timber reports 2Q Adjusted EBITDA of $593 million

International Forest Industries - Tue, 24/07/2018 - 15:05

 

West Fraser Timber Co. Ltd. reports 2Q 2018 sales of $1,834 million, compared to $1,322 million in the 2Q 2017. Adjusted EBITDA was $593 million, compared to $305 in the 2Q 2017.

Lumber segment generated operating earnings of $358 million and Adjusted EBITDA of $467 million. Improved product pricing and increased shipments of 416 million board feet were largely responsible for the improved results. Countervailing and antidumping duties charged in the quarter were $81 million, of which $68 million was recorded as export duties expense in the earnings statement and $13 was recorded as a long-term duty receivable on the balance sheet.

Panels segment generated operating earnings in the 2Q 2018 $52 million and Adjusted EBITDA of $56 million. Improved plywood pricing and higher shipments boosted results.

Pulp & paper segment generated operating earnings of $56 million and Adjusted EBITDA of $68 million. Higher pulp prices were offset by lost production from a planned maintenance shutdown at Cariboo NBSK mill, transportation related production curtailments at Quesnel BCTMP mill, and a series of operational challenges at Hinton NBSK mill.

West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips and energy with facilities in western Canada and the southern United States.

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Tigercat – More Factory Support For British Columbia

International Forest Industries - Tue, 24/07/2018 - 13:21

Tigercat has announced Mark Tourand has been appointed to the position of product support representative for British Columbia.

Tourand will be primarily involved with product support for Tigercat’s extensive customer base in western Canada.

Based in Merritt, British Columbia, Tourand has been involved in the equipment industry for over 25 years, previously working as a heavy-duty equipment technician in the manufacturing industry. he also has experience in the forestry and mining sectors.

“Along with Kushiah McCullough and Damien Donoher, I am very excited to add Mark to the support team for western Canada and the United States. We continue to have many new opportunities and applications for Tigercat machines. With new innovation and increased productivity comes increased complexity of machines. The importance of a top-notch support team is critical,” explains Rob Selby, Tigercat District Manager, also based in BC.

Tourand has strong technical knowledge related to diesel engines and electronic systems with professional training in power generation and diesel electric systems. He also has his Red Seal certification as a heavy-duty equipment technician.

“I am extremely excited to join an innovative and cutting edge team like Tigercat Industries. I am looking forward to supporting our dealers and customers in the west,” says Tourand.

The post Tigercat – More Factory Support For British Columbia appeared first on International Forest Industries.

Agencies meet in Dehradun to co-ordinate efforts to curb trans-boundary illegal wildlife trade

GFIS - Tue, 24/07/2018 - 12:00
Dehradun, India, July 2018—Earlier this month, TRAFFIC organised a multi-agency co-ordination meeting for senior officials from the Indo Tibet Border Police (ITBP), Uttarakhand Forest Department, Wildlife Crime Control Bureau (WCCB) and Wildlife Institute of India (WII) to enhance co-operate and collaborate to prevent poaching and smuggling of endangered wildlife across borders.

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