Stink Bug Pain Spreads to 32 Countries for 2019-20: Update

  • Stink Bug infestation has spread rapidly
  • 32 countries now on Australia’s target list for 2019-20 season
  • 280,000+ tonnes of pulp, paper, paperboard and printed material impacted
  • Treatment costs between AUD12/t and AUD48/t

Rapid expansion of the infestation of the Brown Marmorated Stink Bug (BMSB) in Europe and North America has plagued global trade over the 2018-19 risk season, as many importers of pulp, paper, paperboard and printed material have experienced.

In response, Australian authorities have announced the 2019-20 BMSB risk season will see 32 countries on the strengthened seasonal measures list, up from 10 for the current season. The BMSB risk season runs from 1st September to 30th April each year.

Pulp, paper and paperboard and printed material will remain in the ‘risk’ category, requiring increased inspection, in most cases. Wood products remain in the ‘high risk’ category and will continue to be subject to mandatory treatment.

To date, it has not been possible to gain complete information on treatment costs for the current season. Industry participants are assisting IndustryEdge to develop a detailed understanding, which will be advised to Pulp & Paper Edge subscribers. Currently, we are aware of treatment costs that have ranged between AUD12/t and AUD48/t, noting that this may not include increased inspection costs.

Total BMSB costs are unclear because it is uncertain the volume of pulp, paper, paperboard and printed material that has been subjected to treatment, either onshore or offshore.

There are reportedly significant differences in costs for offshore treatment in North America and Europe.

Target countries for 2019-20

The table below sets out the target countries for the 2019-20 BMSB Season, and IndustryEdge’scalculated estimate of the volume of imports for the current BMSB Season. What it shows is that for the current season to date, pulp, paper and paperboard has been imported from 18 of the 32 countries.

Extrapolated for the full season, we estimate imports from target countries will total approximately 280,000 tonnes in the 2019-20 season.

BMSB Target Risk Countries for Australia – Est. Volumes: 2019-20 (tonnes)

Country

Pulp

Paper & Board

USA

 26,781

62,841

Canada

 11,027

38,433

Albania

 –  

Andorra

 –  

Armenia

 –  

Austria

 –  

6,061

Azerbaijan

 –  

Belgium

 57

11,304

Bosnia

 –  

Bulgaria

 –  

97

Croatia

 –  

Czech Rep

 –  

21,561

Georgia

 –  

Germany

 3,460

42,144

Greece

 –  

5,821

Hungary

 –  

41

Italy

 –  

28,519

Liechtenstein

 –  

Macedonia

 –  

Montenegro

 –  

Netherlands

 –  

13,555

France

 –  

4,028

Russia

 –  

64

Serbia

 –  

Slovakia

 –  

112

Slovenia

 –  

4,941

Switzerland

 –  

275

Luxembourg

 –  

Romania

 –  

Spain

 –  

1,307

Turkey

 –  

1

Total

 41,325

 241,107

Total Imported Tonnes

282,432

Source: DAWR, ABS & IndustryEdge research and calculations

Note: (1) Import data is only currently available to the end of February. Simple extrapolation has been used to provide the calculated volume estimates (2) Does not include volumes subject to confidentiality restrictions

Proposed BMSB treatment measures for 2019-20 season

The Department of Agriculture & Water Resources (DAWR) has distributed its proposed seasonal measures to deal with the BMSB for 2019-20. IndustryEdge has prepared the following table to assist subscribers, noting that this is similar to the measures in place for the current season.

Goods

Risk Level

Break Bulk/Open or Flat Rack

Containerised

FCL*

FCX#

LCL^

FAK~

Pulp

Risk

 

 

Increased random inspection and directed on-shore fumigation where BMSB detected

Paper & Paperboard

Risk

Printed Matter

Risk

Wood Products

High Risk

Mandatory offshore treatment (or re-export)

Mandatory treatment (onshore or offshore)

Mandatory treatment (onshore or offshore)

Mandatory offshore treatment (or re-export)

Mandatory offshore treatment (or re-export)

* Full Container Load              # Full Container Consolidated            ^ Less than Container Load ~ Freight of all kinds

Most significantly, target high-risk goods requiring mandatory offshore treatment that are imported without being treated, or that are treated by an unapproved treatment provider, will be re-exported.

That is a serious – and necessary – stepping up of the rigour being applied to protect Australia’s borders and bio-security. The costs of re-export will be borne by the party responsible for the importation.

IndustryEdge understands that to date, higher costs appear to have been absorbed by impacted importers, a situation that is likely to continue.

 

This item was first published in the April 2019 edition of Pulp & Paper Edge (Edition 163).

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