Lyctus Beetle (Lyctus brunneus)
Also known as the Powder Post Beetle this Beetle lives off the sapwood of hardwoods. It is a long, slim beetle which tunnels just below the surface, leaving a thin veneer of sound wood on the surface. The emergence holes are 1-2mm in diameter.
Because this beetle needs starch in order to survive it only lives in the sapwood or certain hard woods. As plywood has a hardwood core it is susceptible but timbers over ten years old become immune as the starch depletes with age and this beetle is never found in softwoods.
It has a very short life-cycle of one year or less, which means the population increases very rapidly.
Solution!
Treatment is the same as for Common Furniture Beetle where by treatment is carried out with high pressure spraying of insecticide,
which kills the grubs within the timber. Beetles can continue
to emerge up to two years after treatment, however, because they
have eaten through the treated timber they are rendered sterile
and, therefore, unable to perpetuate the life cycle.
With this infestation it is generally necessary to use an organic solvent preservative.
Contrary to popular belief, the whole building does not have to
be treated if the infestation is only found in one area.

