Answer To: Product Development and Marketing Assessment Task Each student is asked to prepare a statement of...
Sunabh answered on Jan 18 2021
Running Head: EARTH SCIENCE 1
EARTH SCIENCE 5
EARTH SCIENCE
(PRODUCT DEVELOPMENT AND MARKETING FOR EUCALYPT HARDWOODS IN SUBTROPICAL NSW)
Table of Contents
Introduction 3
1. Resource Character 3
2. Market Research and Product Options 5
3. Harvest and Processing 8
4. Competitive Advantage 10
5. Financial Aspects 10
6. Communications and Promotion 11
Conclusion 12
References 14
Introduction
Timber and forest product management industry in New South Wales (NSW) has always been central and played a major role considering the social viability as well as employment provided to the local and regional communities across the state. The production and development of timber along with marketing can be a challenging task compared to other products. Therefore, this report will focus upon ‘Eucalyptus hardwoods grown in subtropical NSW’ as the product.
Resource character of wood along with the harvesting and processing areas will be enlightened through this report. Efforts will be made in order to identify the required market research and product options in order to analyse the competitive advantage that the timber dealers may have. Further financial aspects with respect to the selected wood will be estimated and recommendations will be made for the communication and promotion of the selected product.
1. Resource Character
Timber industry has been known to work with the government of NSW for generations in order to meet the state’s demand for timber as well as unique forest products. Along with the products that the timber industry provides, it would be essential to consider that that this industry is one of the major employer in rural as well as regional NSW and provide jobs to around 22000 individuals along with the support provides to the regional communities. Gilbert, Bailleres, Fischer, Zhang and McGavin (2017) suggested that Eucalyptus species have always dominated Australian native forests and have always been considered as the principle hardwood species that is obtained and supplied for domestic as well as commercial use.
The major and desirable features that justifies the commercial application of this wood includes high strength and attractive appearance, which further makes its use versatile and makes it suitable for wide range of uses. Eucalyptus globulus and Eucalyptus grandis are two of the major species that are being used as premier Kraft pulping processes while overall only 20 out of 700 eucalypt species have been usually processed for their pulpwood.
Around 170,000 hectares are currently covered under eucalypt plantations throughout Australia and this area has been observed to expand with a rate of 25000 hectares per annum. Out of all, around 120,000 hectares of eucalypt plantation are significantly devoted to the pulpwood, Japanese pulp and paper industry. While, state forests have specifically focused upon sawlog production. 45,000 hectares of eucalypt plantation is being manages by the state forests for more than 50 years, which originally were planted under the forest re-establishment process. NSW possess around 47,000 hectare of eucalypt plantation and out of, which, Australian Paper Manufacturers (APM) have established 12,000 hectares. A small area of <1500 hectares having E. nitens plantation is being owned by Harris Daishowa Australia Ltd (HDA) near the Victorian border while the state itself established only 15000 hectares.
Eucalyptus trees grows from somewhere around 135 to 300 feet in length with the trunk diameter of around 3 to 4 feet. However, a reduced supply of >40 cm small end diameter logs have been observed along with the conversion of timber plantation and production areas into conservation reserves to protect plantation and forests. Heartwood obtained from eucalyptus trees is red to reddish brown in colour and it is observed to darken as it seasons or matures. Sapwood of this tree usually is usually pale cream however, these trees are famous and used as hardwood in timber industry.
Wood texture varies from medium to coarse, it is moderately resistant to insects, and termites, which ay degrade it when commercial use of timber is considered. As mentioned above also, eucalyptus’s wood can have versatile uses, however, commonly it is used in construction, flooring, it is easier to paint and polish and is widely used in housing. Further, it is easier to cut and saw and is heavier compared to oak, which makes it considerable for use in furniture industry. However, due to high moisture content in the wood, it is not considered as a stale wood. Moreover, the timber may even buck and split as a result of compression and growth stress on the inner and outer part of the tree.
Eucalyptus wood may also suffer from some other forms of stress such as ‘brittle heart’, which weakens the commercially important heartwood. All of these factors makes the wood non-competent for commercial use and may add to the cost of production. However, it can be heavily treated with preservatives, which makes it suitable for use as a large poles and logs at home. Softwood obtained from this tree is not useful and does not have any commercial importance majorly because of lack of processing by the native millers and inability to compete with the cheaper imports from Asian, New Zealand and South American Softwood (Rain Forest Info, 2019).
2. Market Research and Product Options
Hardwood timber obtained from forest has always been of more economical importance than as compared to that of others. This is majorly because it is always visually attractive, strong, durable, and dense, therefore, can be used for long-term purposes. Hardwood timber such as that of obtained from eucalyptus is commonly used for flooring, pergolas, decks, structural purposes such as power poles, bridges, wharves, fencing, pallets, landscape sleepers and much more. Along with this, decorative hardwood furnishings have very small market compared to other products though it services very high value in specified niche market. Timber that cannot be used for solid wood purposes is commonly sold as pulpwood for firewood and woodchip exports.
APM and HDA both aims to produce eucalyptus with the purpose to produce pulpwood while the state forest aims to produce wood as sawlogs and veneer logs, which however lacks management and undergoes denaturation. Considering the value chain for this wood in NSW, it begins with the management of forest and sustainable production of plantation as well as native timber, which continues with the harvesting season and haul. Further, it comes to an end with the primary and...