Daily News for January 31, 2023

Today’s Takeaway

International Paper, PotlatchDeltic and Stora Enso report mixed Q4, full-year financial results

The Tree Frog Forestry News
January 31, 2023
Category: Today's Takeaway

International Paper, PotlatchDeltic and Stora Enso report mixed Q4, full-year financial results. In related news: Mercer Celgar’s curtailment could be short; second round of layoffs at Vaagen Fibre; and Michelle Ward on Canfor’s recent announcements. Meanwhile: US housing affordability is down, as lumber prices are set to tick up. 

In Forestry/Climate news: some good news from the 2022 State of Canada’s Forest Report; US forests and wood products are carbon sink positive; the roll-out of BC’s old-growth plan; artificial intelligence points to more dire climate forecast; and New Mexico seeks to protect its forests from climate change.

Finally, CIFOR has a new CEO, and the BC’s Forest Professionals have a new name.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Canada’s wood product manufacturing industry experiences strong growth

By Rich Christianson
Woodworking Network
January 25, 2023
Category: Business & Politics
Region: Canada

OTTAWA, Ontario — Canada’s wood product manufacturing output nearly doubled from $9.99 billion in 2016 to $19.82 billion in 2021, according to the 2022 State of Canada’s Forest Report. The annual report released by Canada’s Minister of Natural Resources sheds light on the positive impact the flourishing forest and wood products industry has had on Canada’s economy at large. With 362 million hectares of forest area, covering 40% of the nation’s landmass, the wood product, logging and pulp and paper industries combined to contribute $34.8 billion to Canada’s nominal GDP in 2021, according to the report. That represents an impressive 53% increase over the 2016 total of $22.7 billion and an 87% increase compared to the 2011 total of $18.6 billion.  According to Statistics Canada, the nation had nearly 7,300 secondary woodworking establishments in 2020. More than 5,800 of these operations produced household and institutional furniture and kitchen cabinets.

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Association of BC Forest Professionals changing name to Forest Professionals BC

By Christine Gelowitz, RPF, CEO
Forest Professionals of British Columbia
January 30, 2023
Category: Business & Politics
Region: Canada, Canada West

The Association of BC Forest Professionals is changing its name. Next month, we will operate under a new name, Forest Professionals BC (FPBC), although our legal name will continue to be Association of BC Forest Professionals. As we close the chapter on a proud 75 years of operation, we are moving forward as a refreshed and reinvigorated regulatory body. Council approved the change to the organization’s name in May 2022 after extensive research and discussion. This change is the latest in our evolution under the Professional Governance Act(PGA) from a dual mandate regulatory/membership organization to one with a more singular focus on our professional regulatory mandate. The new name will sharpen our identity and emphasize that professional forestry is a regulated profession and that its governing body is not a lobbyist or advocacy body for the profession’s members. Despite being a professional regulator since 1947, having “association” in the name of the organization has over the years led to a blurring and misunderstanding of the ABCFP’s role. 

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Canfor discusses its economic plans in B.C.

By Carolina de Ryk
CBC Daybreak North
January 30, 2023
Category: Business & Politics
Region: Canada, Canada West

Michelle Ward

After announcing hundreds of job losses across northern B.C., Canfor’s Michelle Ward discusses the company’s long-term plans for the region as timber supply declines. Click the Read More to access the On Demand audio program. 

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Curtailment could be shorter than 3 weeks: Mercer Celgar

By Greg Nesteroff
My Kootenay Now
January 30, 2023
Category: Business & Politics
Region: Canada, Canada West

The managing director of the Mercer Celgar pulp mill in Castlegar, Bill MacPherson, says the three weeks of downtime scheduled to begin on March 7 due to a lack of fibre could actually be slightly shorter than expected. We spoke with Bill to learn more about the company’s decision and the state of the pulp industry. What factors went into your decision to take downtown? This goes back to a long time problem emerging over the last number of years but it became more problematic early in November. …So the specific timing had to do with inventory? It had to do with optimizing inventory, and also to get through the winter far enough that you don’t expose the mill to the risk of freeze up if you we have a late winter. …Our real goal would be not to curtail at all if we can find enough affordable fibre. 

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Midway mill clearing out inventory as second round of layoffs approaches

By Sami Islam
Trail Times
January 29, 2023
Category: Business & Politics
Region: Canada, Canada West

Immediately after announcing the shutdown of its Midway mill, Vaagen Fibre Canada laid off 35 employees. Since then, it has continued to operate the mill as it clears out its inventory — a process that Dan Macmaster, the company’s fibre supply manager, expects will take them into early February. Once the rest of the mill’s fibre runs out, its “50 or so” employees that remain will also be out of work. The company’s leadership has been in contact with Boundary-Similkameen MLA Roly Russell to discuss ways to support the company’s laid-off employees and what might trigger the mill’s re-opening. Both parties agree that the problem has short-term and long-term dimensions that need to be considered. …Vaagen Fibre has maintained that the current shutdown is due to an inability to access wood fibre at an efficient price. A long-term solution to the mill’s shutdown would require significant changes to the milling industry’s current structure.

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Mill expansion gets support from legislature

By Isla Minor
Escanaba Daily Press
January 28, 2023
Category: Business & Politics
Region: United States, US East

ESCANABA, MICHIGAN — A proposed conversion of the Escanaba paper mill to produce paperboard was given a vote of support by the state Legislature this week, but a firm decision is still months away. The state House and Senate both approved $200 million to support the project in the state’s spending bill Thursday. The bill now heads to Governor Gretchen Whitmer’s desk for final approval… Billerud, which owns the mill, is considering three sites for its future paperboard making operations. Also in the running for the shift to paperboard production are the Quinnisec mill, which produces graphic papers and pulp, and the Wisconsin Rapids, Wis. facility, which now is a converting facility but produced graphic paper until 2020. The Wisconsin Rapids facility is supported by hydroelectric plants owned by Billerud on the Wisconsin River. This is not the first time the government has stepped in to make the Escanaba mill more appealing for the conversion. 

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Valmet to supply rebuild for Sappi Somerset facility in Maine

By Valet Oyj
Cision Newswire
January 30, 2023
Category: Business & Politics
Region: United States, US East

ESPOO, Finland — Valmet will supply an extensive rebuild for Sappi’s Somerset paper manufacturing facility in Skowhegan, Maine. Previously, Valmet rebuilt the paper machine 1 (PM1) and with its success, Sappi has chosen Valmet again to rebuild the paper machine 2 (PM2). The order is included in Valmet’s orders received of the fourth quarter 2022. Its value will not be disclosed, but such an order is typically worth between EUR 90 and 120 million. As a result of the PM2 conversion from coated woodfree graphic paper to solid bleached sulphate board, the machine capacity will be increased from 240,000 tons to 470,000 tons per annum. The start-up of the rebuilt machine is scheduled for the mid-year of 2025.

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CIFOR-ICRAF announces Dr Eliane Ubalijoro as Chief Executive Officer

Center for International Forestry Research (CIFOR)
January 16, 2023
Category: Business & Politics
Region: International

The Board of Trustees for the Center for International Forestry Research and World Agroforestry (CIFOR-ICRAF) is pleased to announce the appointment of Eliane Ubalijoro as Chief Executive Officer of CIFOR-ICRAF and Director General of ICRAF. Ubalijoro will be the first African woman Director General of a CGIAR Research Center and CEO of two Centers in CGIAR’s 52-year history. Born in Rwanda, Ubalijoro is the Executive Director of Sustainability in the Digital Age, and Professor of Practice for public-private sector partnerships at McGill University’s Institute for the Study of International Development. Over the past two decades, her research has focused on innovation, gender, and sustainable development. …Alongside Dr. Ubalijoro’s appointment starting May 2023, Dr Robert Nasi – CIFOR-ICRAF’s acting CEO – will take up the position of Chief Operating Officer.

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Finance & Economics

Lumber Prices Set For A Surge As Homebuilding Rebounds

By Simon Constable
Forbes Magazine
January 30, 2023
Category: Finance & Economics
Region: Canada, United States

Get ready for a lumber surge. The homebuilding business looks like it’s ticking up again after a tricky 2022. And with it investors should see lumber prices lift as well. The latter had a brutal year also. Shawn Hackett, president of Hackett Financial Advisors… “The lumber market has likely made a major low and can trend substantially higher over the next year.” …Optimism among such companies, like those held by the SPDR S&P Homebuilders exchange-traded fund, suggests that demand for new homes and by association lumber, will pick up in the coming months. In addition, to U.S. housing activity, the reopening of China will likely add some lumber demand, Hackett says. As always there are risks. Most notably the Fed may decide to keep raising interest rates… [and] China’s reopening may not last long.

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International Paper Reports Mixed Full-Year and Q4 2022 Results

By International Paper
Cision Newswire
January 31, 2023
Category: Finance & Economics
Region: United States

MEMPHIS, Tennessee — International Paper reported full-year and fourth quarter 2022 financial results. Full-year 2022 net earnings attributable to International Paper of $1.5 billion compared with $1.8 billion for full-year 2021 Full-year 2022 adjusted operating earnings (non-GAAP) of $1.2 billion compared with $944 million for full-year 2021. Fourth quarter net earnings (loss) attributable to International Paper of $(318) million including a $533 million non-cash impairment of our Ilim joint venture investment; Fourth quarter adjusted operating earnings (non-GAAP) of $309 million. …Mark Sutton, Chairman and CEO, “Our commercial and mill operational performance was solid, while significant inflation and lower demand impacted margins. We also delivered $250 million of earnings benefits from our Building a Better IP initiatives, exceeding our target for the year and building solid momentum going forward.”

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PotlatchDeltic Reports Positive Q4 and Full Year 2022 Results

By PotlatchDeltic Corporation
Stockhouse
January 30, 2023
Category: Finance & Economics
Region: United States, International

SPOKANE, Washington — PotlatchDeltic reported net income of $3.8 million on revenues of $253.1 million for the quarter ended December 31, 2022. Excluding after tax special items consisting of CatchMark merger related expenses and an environmental charge, adjusted net income was $9.3 million for the fourth quarter of 2022. Net income was $39.2 million on revenues of $248.4 million for the quarter ended December 31, 2021. Excluding a net loss on fire damage, adjusted net income was $39.9 million for the fourth quarter of 2021. Net income for the full year 2022 was $333.9 million on revenues of $1.3 billion. Excluding after tax special items consisting of a pension settlement charge, a gain on insurance recoveries, CatchMark merger related expenses and an environmental charge, adjusted net income was $350.0 million, or $4.80 per diluted share for 2022. 

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US Housing Affordability Goes South

By Rose Quint
NAHB – Eye on Housing
January 30, 2023
Category: Finance & Economics
Region: United States

Buyers’ outlook for housing affordability took a sharp negative turn in the final quarter of 2022, when a record high of 87% reported being able to afford fewer than 50% of the homes for-sale in their markets.  The remaining 13% can afford the majority of homes available, less than half the 31% who could in the third quarter. Affordability expectations between the third and fourth quarters of 2022 worsened in all regions.  The share of buyers able to afford less than half the homes available in their markets rose in the Northeast, from 66% to 89%; in the Midwest, from 83% to 84%; in the South, from 77% to 83%, and in the West, from 58% to 87%.

In related NAHB coverage: Fewer Prospective Buyers Looking For Homes

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Forestry group Stora Enso sees a challenging year ahead

Reuters
January 31, 2023
Category: Finance & Economics
Region: International

HELSINKI — Finnish forestry group Stora Enso on Tuesday posted its best annual results in more than 20 years although profit declined in the fourth-quarter with the company warning that margins are likely to be squeezed by increasing costs this year. …Despite a 5% increase in sales, operational earnings before interest and tax in the fourth quarter decreased 17% to 355 million euros ($385 million) from a year earlier. Stora expects demand for its containerboard to be hurt by weak consumer confidence and lower private consumption while a slowdown in construction will negatively affect demand for sawn wood. “Compared to 2022, group margins are expected to be squeezed by increasing costs, particularly in relation to energy, wood, chemicals and logistics,” the company said.

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Wood, Paper & Green Building

Net-positive, mass timber building will promote research on planetary well-being in Barcelona

By Novid Parsi
Building Design + Construction
January 30, 2023
Category: Wood, Paper & Green Building
Region: International

ZGF Architects, along with Barcelona-based firms MIRAG and Double Twist, have designed a net-positive, mass timber center for research on planetary well-being. Located in Barcelona, the Mercat del Peix Research Center will bring together global experts in the experimental sciences, social sciences, and humanities to address challenges related to the future of the planet, including biodiversity loss and climate change economics and governance. In January, the design won a global laboratory design competition that drew 41 entries from 10 countries. …The research center’s mass timber building envelope and mechanical systems aim to reduce embodied and operational carbon, while optimizing the quality of the interior environment. …The research center’s high-performance mass timber building envelope and mechanical systems will significantly reduce both embodied and operational carbon while optimizing the quality of the interior environment. 

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‘I want to caress the lift!’: the eco office block miracle made entirely from wood

By Oliver Wainwright
The Guardian
January 30, 2023
Category: Wood, Paper & Green Building
Region: International

It’s renewable, strong as steel, astonishingly fireproof – yet it’s easy and quiet to build with. Could timber construction be the future? We step inside the revolutionary new London workplace that everyone wants to touch. …In Shoreditch, east London, stands the Black & White, a new office block that boasts few of the shiny gimmicks of its bloated glass and steel neighbours… But building it used almost 40% less carbon than comparable structures – primarily because it’s made of wood. …“We’re getting a really clear understanding of the biophilic benefits of natural environments, beyond the carbon savings,” says Andrew Waugh of Waugh Thistleton, the architects behind the project. “People sleep better in timber homes, study better in timber schools, heal faster in timber hospitals and have less stress in timber offices.” …in the development industry, form follows finance. Only this time, it’s keen to be seen to be green.

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Forestry

Taking stock of Canada’s forests

By Simply Science
Natural Resources Canada
September 30, 2022
Category: Forestry
Region: Canada

For the first time, new detailed ground plot data on Canada’s forests will be available annually — but what can it tell us about forest resources, biodiversity and the impacts of climate change? Since 2000, the Canadian Forest Service’s National Forest Inventory (NFI) has compiled and managed forest inventory data collected by teams across the country. There are different ways teams can access forest measurements. One is through a network of 1,114 permanent ground plots… Another is through 13,158 remote sensing plots. …Starting this year, for the first time, NFI ground plot data will be released annually. Scientists will no longer have to rely on data released only once a decade. Being able to work with new data every year will help scientists monitor rates of vegetation change, like growth and decay, which can help answer important questions related to sustainable forest management, forest biodiversity and the impacts of climate change.

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Yekooche First Nation declares it is taking over resource management in its territory

Prince George Daily News
January 30, 2023
Category: Forestry
Region: Canada, Canada West

British Columbia — After more than 27 years of unsettled treaty negotiations with the Crown, the Yekooche First Nation has issued a declaration affirming their unceded ancestral rights to their lands and resources. By recognizing its Section 35 rights set out in the Constitution, the nation says it is taking back control of its territory and resources, and will be exercising its own laws, customs and resource management systems. “Today, we take back the management and harvesting of our ecosystems – the land, the minerals, the trees, the animals and the water,” sai Chief Mitchell Joseph. “Treaty negotiations have progressed at a snail’s pace over the past 27 years. …It’s 2023 and the Crown should not still control us and our resources. We remain wards of the state. We are a forgotten nation in B.C., ignored by our Crown who is supposed to be duty bound to act honourably and as proper fiduciaries towards us. 

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‘Ambitious’ conservation targets demand agreement between B.C., Ottawa

By Justine Hunter
Globe and Mail
January 30, 2023
Category: Forestry
Region: Canada, Canada West

The British Columbia government created a major conservation area that it bills as one of the most significant new protected areas in a decade. To meet its lofty environmental goals, it will need to create the equivalent of 175 more over the next seven years. Canada needs B.C. to succeed to meet its own promises at the COP15. Despite the strong political alignment between the two governments, a nature agreement that would fast-track conservation has proved elusive. The federal government has committed to reach 30 per cent protected areas by the year 2030. …British Columbia, with one-10th of the country’s land base and an outsized share of Canada’s biodiversity, has protected a greater share of its lands than any other province or territory. But it still needs to add another 10 million hectares of protected areas to hit its own 30-by-30 target. [Access to this full article requires a subscription to the Globe and Mail]

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B.C.’s War in the Woods is entering a new phase. Will it be the last?

By Arno Kopecky
The Narwhal
January 30, 2023
Category: Forestry
Region: Canada, Canada West

Garry Merkel

So far, the new year seems to be extracting the same old headlines … more old-growth logging, more pulp-mill closures and — coming soon — more protests. On Feb. 25, a march for ancient forests will converge outside the legislature in Victoria. …a coalition of 168 organizations called United We Stand are calling on the premier “to implement a paradigm shift in forest stewardship.”  …the notion of a “paradigm shift” comes from the government-commissioned old-growth strategic review. It has become a sort of bible for B.C.’s environmental advocates. …But, more than two years and 1,100 arrests since the strategic review came out, ancient trees are still falling all across the province. All of which begs a question: what gives? Garry Merkel, a Tahltan forester … is one of the old-growth strategic review’s two authors. …Merkel insisted it won’t be a matter of decades, but rather of months before the NDP delivers the very thing protesters are demanding. 

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Steps To Reduce Impact Of Climate Change On New Mexico’s Forests And Surrounding Communities

By Laura McCarthy, New Mexico State Forester
Los Alamos Daily Post
January 30, 2023
Category: Forestry
Region: United States, US West

Laura McCarthy

…Forestry Division of the New Mexico Energy, Minerals and Natural Resources Department recommends specific actions that could lessen the impact of future extreme weather events on the state’s forests and communities. They include: Updating the Forest Conservation Act to clearly delineate the Forestry Division’s authority to carry out tasks … that contribute to the long-term health of forested watersheds; Creating a minor exemption to the State Procurement Code to streamline the process of securing federal funds for wildfire prevention and forest management; and Providing funding for hot-shot firefighting crews to boost our chances of suppressing wildfires at the earliest possible stages. …Finally, catching wildfires when they start and while they are still small is essential. New Mexico can increase its capacity for “initial attack” with more firefighting crews. …These crews could put their expertise to work restoring forests when not actively fighting fires—doubling the value to the state.

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Deer browsing is just one of many factors shaping North American hardwood forests

Penn State News
January 30, 2023
Category: Forestry
Region: United States, US East

UNIVERSITY PARK, Pennsylvania — In a new study, a Penn State-led research team discovered evidence that browsing by white-tailed deer had relatively little long-term impact on two tree species in a northern forest. The research took place in both fenced and unfenced plots in a one-square-mile area in the Flambeau River State Forest, Wisconsin, which had an estimated deer density of about 18-31 deer per square mile at the beginning of the study. With seven years of data, researchers examined survival and growth of sugar maple and ash seedlings and saplings with differing light conditions and levels of deer access. …The research is important because deer herbivory has a reputation for suppressing tree seedling development in northern hardwood forests. …The research was funded by the U.S. Department of Agriculture, the McIntire-Stennis Program, Pittman-Robertson funds, and Wisconsin Department of Natural Resources divisions of Forestry and Integrated Science Services.

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Carbon, Climate & Bioenergy

A dire forecast: Scientists used AI to find planet could cross critical warming threshold sooner than expected

By Christian Edwards
CNN
January 30, 2023
Category: Carbon, Climate & Bioenergy
Region: Canada

The planet could cross critical global warming thresholds sooner than previous models have predicted, even with concerted global climate action, according to a new study using machine learning. The study estimates that the planet could reach 1.5 degrees Celsius of warming above pre-industrial levels in a decade, and found a “substantial possibility” of global temperature rises crossing the 2-degree threshold by mid-century, even with significant global efforts to bring down planet-warming pollution. Data shows average global temperature has already climbed risen around 1.1 to 1.2 degrees since industrialization. “Our results provide further evidence for high-impact climate change, over the next three decades,” noted the report, published on Monday in the journal the Proceedings of the National Academy of Sciences. Where the study departs from many current projections is in its estimates of when the world will cross the 2-degree threshold.

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US Forests, Trees, and Wood Products Store Carbon, Curb Greenhouse Gas Emissions — But May Wane in Capacity

Linda Heath, Acting Deputy Chief
USDA Forest Service R&D News
January 30, 2023
Category: Carbon, Climate & Bioenergy
Region: United States

Forests and harvested wood products, such as the lumber used in houses, store carbon dioxide. Carbon emissions, which contribute to changes in climate, are diminished when absorbed and stored by forests and wood products. Our most recent resource update, Greenhouse Gas Emissions and Removals from Forest Land, Woodlands, and Urban Trees in the United States, 1990-2019, not only shows how forests and harvested wood products continue to store greenhouse gas emissions but also signals an anticipated, gradual reduction in the US forest carbon sink over the next few decades. …Reductions in carbon storage may be fueled by wildfire, drought, insect infestations, disease-related tree mortality, and land-use change. Despite this projected wane in carbon storage, US forested lands, wood products, and urban trees continue to represent the nation’s largest net carbon sink — offsetting more than 12 percent of US greenhouse gas emissions in 2020. Key reports include:

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Health & Safety

Décor Cabinets wins Safety Culture Award

By Rich Christianson
The Woodworking Network
January 30, 2023
Category: Health & Safety
Region: Canada, Canada West

MORDEN, Manitoba – Safe Work Manitoba honored Décor Cabinets Ltd. with its 2022 Safety Culture Award. Décor Cabinets has more than 500 employees and operates two manufacturing facilities. The company has maintained its SAFE Work Certification since 2018. Safe Work Manitoba cited the leadership team at Décor for playing an active role in promoting a safety culture, including encouraging employees to participate in its HIRTS (Hazard Identification & Reduction Tracking System) program. Through the HIRTS program, employees make safety improvements in their work areas. …In 2020, The Wood Manufacturing Council presented Stan Pauls, owner and CEO of Décor Cabinets with its 2020 HR Award of Distinction.

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Forestry, agriculture, construction deaths are nearly all avoidable

By Wayne Scott, CEO of MinEx
New Zealand Stuff
January 31, 2023
Category: Health & Safety
Region: International

Wayne Scott

NEW ZEALAND — Our acceptance of workplace injuries and harm has its comparisons with the preparedness of American society to have more guns than people and so live with gun violence. I worked in Australia for 30 years including in health and safety roles; if someone dies in a workplace there, it’s a big deal; in New Zealand we tend to think – ‘sh*t happens’ – and move on. Our worst examples of this are the continuing rates of death amongst agriculture, forestry and construction workers in preventable accidents. …This year 750 or more Kiwis will likely die from illnesses related to their work; that’s 15 times more than will die at work from an injury. We need to end the toll of workplace injuries and health harm. The starting point is understanding that virtually all deaths and harm caused in workplaces is avoidable.

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