Analysis of the potential impact of the ‘Stink Bug’ on the pulp and paper industry in Australia shows costs in 2018-19 could be as high as $6.5 million. Source: IndustryEdge for Timberbiz
The analysis indicates that with all wood product imports from the countries impacted by the Brown Marmorated Stink Bug (BMSB) being declared ‘high-risk’, the costs associated with importing some wood products could increase dramatically.
“Treatment costs in Australia could be as high as $1000 for a 20-foot container, according to our sources,” Tim Woods from market consulting firm IndustryEdge told Daily Timber News.
“Costs are not going to be as high off-shore, or for break-bulk or open containers.”
Mr Woods says that importers and customs agents have been working to ensure they have arrangements in place with accredited off-shore treatment providers in the impacted countries.
“All wood product imports from these countries will have to be treated, no matter how they are imported,” Mr Woods said. “There is no way around that, so to minimize costs, most treatments will occur in the country of origin. That means, for wood products, most of the treatment will be happening in America.”
The BMSB or Stink-Bug started in the USA but has quickly spread itself. Countries that the Department of Agriculture and Water Resources has declared to be targets in the 2018-19 Stink Bug Season are United States of America, Italy, Germany, France, Russia, Greece, Hungary, Romania, Georgia. For Japan, there will be heightened vessel surveillance.
“In most cases, for their lower risk goods, paper importers will do their own inspections before they import to Australia. Because their goods are declared to be at the ‘risk’ level, treatment is not mandatory,” Mr Woods said.
“But the position is clear. If a Stink Bug is found in imported paper shipments, the products will become instantly high-risk and mandatory treatment will apply. Our assessment shows the upper-limit of the costs would be $6.5 million, and likely, significantly less.”
The table below, published last week in IndustryEdge’s monthly Pulp & Paper Edge, summarises the treatment requirements of relevant goods.
* Full Container Load # Full Container Consolidated ^ Less than Container Load ~ Freight of all kinds
For full details of all goods impacted by the BMSB seasonal measures, click here. [http://www.agriculture.gov.au/import/before/pests/brown-marmorated-stink-bugs/]
Since 2014, Australia has operated an increasingly rigorous, seasonal, inspection, detection and treatment regime associated with the BMSB. The 2018-19 season – which commences 1 September 2018 and runs until the end of April 2019 – sees more goods included in the ‘risk’ and ‘high risk’ categories, and more countries added to the mandatory treatment lists.
Every month, IndustryEdge publishes Wood Market Edge, Australia’s only forestry and wood products market and trade analysis, and supplies its customers with hundreds of unique data products, advisory and consulting services. Find out more at www.industryedge.com.au
