Max Winkelman photo.

Downward trend and uncertain economic forecast for forestry, says NDIT report

Reduced timber supply could mean ‘further job loss and community impacts in the coming years’

Forestry, accounting for almost half of employment in the goods-producing sector, is a challenging story with a downward trend and an uncertain forecast in northern B.C., according to the Northern Development Initiative’s Trust (NDIT) second annual State of the North Report. It also notes that employment in forestry in the Cariboo-Chilcotin-Lillooet region declined between 2016 and 2017.

“Our major forest companies enjoyed record lumber prices through most of 2018, which has helped keep them in the black, however, they’re also impacted by export tariffs in the U.S. market due to the as-yet unresolved Softwood Lumber Agreement. On top of that, wildfire activity over the past two summers has eaten into a good chunk of the available timber in the region and exacerbated an already challenging timber supply picture due to the aftermath of the Mountain Pine Beetle epidemic and the current challenges with spruce and fir beetles. Looking forward, reduced timber supply will place continued downward pressure on this sector and force some forestry companies to rationalize their operations, which could mean shutdowns, further job loss and community impacts in the coming years,” NDIT CEO Joel McKay writes in the opening.

Furthermore, while there has been increasing demand from China and improvements in the U.S. housing market, the dollar value of wood product exports to China is down close to 20 per cent, including a 17 per cent drop in softwood exports, though, there was some positive news.

“Overall, the value of manufactured wood products is up 10.5 per cent through the first half of 2018, reflecting continued strong demand in the U.S., and sales of manufactured paper products increased 25 per cent through July 2018.”

However, although sales of manufactured wood and paper products remain strong, both production and employment are declining, according to the report. Softwood lumber production in Northern B.C. fell by approximately three per cent in 2017 and continued to decline in the first six months of 2018. Production declines were accompanied by declines in employment in both harvesting and wood product manufacturing.

“Declining production in the face of strong demand is primarily a reflection of declining timber supply. Since 2015, Allowable Annual Cuts (AAC) have been reduced in a number of areas. Those reductions were intended to bring harvest levels in line with historical levels after past increases aimed at salvaging value from trees killed by the mountain pine beetle. “

According to the NDIT report, for example, in October 2017, the AAC for the Prince George Timber Supply Area (TSA), the largest TSA in Northern B.C., was reduced by 33 per cent, bringing it below 1996 levels.”

The report notes that timber supply could be further impacted by habitat protection for caribou.

See the full report here.


newsroom@100milefreepress.net

Like us on Facebook and follow us on Twitter.

Just Posted

CCRD attends annual UBCM conference

Ocean Falls, health care, and transportation all brought forth

Terrace Search and Rescue headquarters gets $100K boost from Prince Rupert Port Authority

Investment to help grow regional response capacity in Northwest B.C.

Northern Sea Wolf Wednesday sailing delayed

Adverse weather will lead to a late night arrival for passengers

Molly Wickham endorses Skeena-Bulkley Valley Green candidate Mike Sawyer

In July, Wickham filed a lawsuit against CGL over the destruction of the Gidimt’en checkpoint camp

VIDEO: #MeToo leader launches new hashtag to mobilize U.S. voters

Tarana Burke hopes to prompt moderators to ask about sexual violence at next debate

UPDATE: British couple vacationing in Vancouver detained in U.S. after crossing border

CBP claims individuals were denied travel authorization, crossing was deliberate

After losing two baby boys, B.C. parents hope to cut through the taboo of infant death

Oct. 15 is Pregnancy and Infant Loss Awareness Day in B.C.

Cheating husband sues mistress for gifted ring after wife learns about affair

The husband gave his mistress $1,000 to buy herself a ring in December 2017

B.C. massage therapist reprimanded, fined for exposing patients’ breasts

Registered massage therapist admits professional misconduct

B.C. boosts legal aid funding in new payment contract

‘Duty counsel’ service restored in some communities, David Eby says

Rugby Canada helps recovery efforts in Japan after typhoon cancels final match

Canadian players wanted to “give back in whatever small way they could”

Alberta to join B.C.’s class-action lawsuit against opioid manufacturers, distributors

B.C. government claims opioids were falsely marketed as less addictive than other pain meds

VIDEO: Trudeau, Singh posture for ‘progressive’ votes while Scheer fights in Quebec

NDP Leader Jagmeet Singh, whose party has been on the rise in recent polls, is campaigning in Toronto

Most Read