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INTERPAL ‘6’ REPORT

INTERPAL ‘6’ REPORT. Western Pallet Association January 21-23. AGENDA. The European Union Debarking  issue for imported Wood Packaging Phase In Requirement for Wood  Packaging Imports for NAFTA Movement of recycled/repaired  wood packaging ˆ third world producers

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INTERPAL ‘6’ REPORT

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  1. INTERPAL ‘6’ REPORT Western Pallet Association January 21-23

  2. AGENDA • The European Union Debarking  issue for imported Wood Packaging • Phase In Requirement for Wood  Packaging Imports for NAFTA • Movement of recycled/repaired  wood packaging ˆ third world producers • Petition for changes to ISPM 15 – April 2007 • EURO Pallet Requirement - Non  Standard Penalized Monetarily • Movement of Products from Pacific Rim - how is it going to impact the US/CAN pallet industry? • Satisfying your need for good  Workers

  3. EU – Debarking Issue • 1. Lobby Issue by the Plastics Industry • - IPPC Program to move product worldwide opened the door • 2. Lobbying EU Council by FEFPEB was a success and Debarking Issue born

  4. IPPC-ISPM 15 Standard • Debarking statement in the IPPC-ISPM 15 Document Subject to technical justification, countries may require that imported wood packaging material subjected to an approved measure be made from debarked wood and display a mark as shown in Annex II.

  5. Debarking Issue • EU demanding DB-HT - CONCERN • Proof of pest introduction to HT debarked material needed • IFQRG – International Forestry Quarantine Research Group – advises UN on scientific issues related to forestry quarantine and the spread of wood pests. • Rome – experiments to prove or disprove that pieces of bark as small as 1” square on ISPM 15 SWP could re-infest, harvest and hide quarantined pests. • Re-infest – could never happen – pests not interested. – this is what we have been told by scientists – yes or no!

  6. IFQRG Findings • Statement: “information collected by Australia indicated that 0.5% of ISPM 15 marked material inspected at the point of entry was infested by organisms of phytosanitary concern.”

  7. IFQRG Finding at meeting • No clear answers • More questions than answers 1. Size of bark required to interest pests 2. Moisture content 3. HT vs. KD with moisture 20% or less 4. Real world conditions 5. Is this about pest issues or Quality demands

  8. New Zealand – Australia Issue • Recent trip discussed the debarking issue with NZ and Australian government official – wood packaging companies. • 1. Already practices no-bark • 2. Extreme measures to meet EU requirements, their largest consumer.

  9. The cost • Lumber used for export wood packaging will increase at least two grades, subjecting our customers to increased costs. • low grade [#3 common, #3] will be utilized for domestic use [USA/CANADA] or disappear • KD [20% of less moisture] will be a requirement; therefore all timber will be KD/HT, even hardwood. I have been told that if we KD hardwood, the timber will check and crack, twist and split and will become unworkable and unwanted by wood packaging companies.

  10. The Cost • Owners of HT chambers, which maintain the moisture and kill quarantined pests, will be forced to re-invest and add the KD option.

  11. Testing Must be controlled • World Pallet Council • Wood Pallet/Packaging Associations must be part of the testing • Attend and become a component of all committees controlling the results. • Need to control scientists from issuing statements and results that are from sources that has little or no controls.

  12. Result timeline • IFQRG – chair Dr. Eric Allen of Canada has asked the CWPCA to assist in the study. - request a non-controlled study of SWP. – no lab testing until SWP put through a designated life cycle.

  13. If we lose this battle • Mills must stop severe optimization of the small log. • It will be the mill who must supply the packaging industry with certified debarked material. • Wood Packaging companies, unless you utilize saws and use cants, cannot control debarked material. Costly • We cannot be expected to breakout lumber lifts and extract those pieces that meet the new ISPM 15 debarking policy. • If we lose, the price of lumber will increase 30-40%.

  14. Timeline • Saving Grace • Dr. Allen, if all studies and testing is completed on time the results will be posted in a document in April 2009. • Jan 16-17 – EU voted to no ruling until Dec. 31, 2008. • we have time to react and fight back but what if HT will re-infest?

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