Raw Log Exports.. The Way Of The Future

By 250 News

Prince George, B.C. -

Forest industry experts say that while there is much talk about restricting the export of raw logs from Canada to China or the USA, the reality is that is becoming the future of logging in at least some areas of the province of BC.

One industry expert puts it this way, “I believe that we are nearing the end of the low end commodity market in our lumber production, just as the American Running shoe market discovered that they could manufacture running shoes off shore and sell them cheaper,  so is the lumber industry “.

The government ,he says, is reluctant to move in because they need the stumpage money, there is some employment in the Silvaculture section, there is employment in the harvesting and transport of the raw logs and above all that there are no tariffs to face. So they send the raw logs to say for example China where labour costs are cheap. The random 2x4’s are manufactured at far less cost and they arrive back in Canada at less than half of what it costs us to produce that same dimension lumber.

In Prince Rupert ship loads of raw logs are being exported to China from that port. They are being shipped by the First Nations people from the region who are either buying or harvesting the raw logs loading them on ships and sending them off to the markets. They face no restriction in shipping raw logs and while in the southern half of the province where logs are being cut and shipped into the USA as a means of getting around the Lumber agreement the cost of finishing that lumber is more in line with the BC costs making it less of a commercial opportunity, not so with China say the experts.

Because of the vast difference in labour costs experts say BC’s only salvation may be to grow the value added business.

  NDP Leader Jack Layton set out a variety of steps he would take as Prime Minister to restore and revitalize the forestry industry in Canada. He said he will start by ending Harper's 2007 softwood lumber agreement and working to open U.S. markets based on fair trade in lumber. 

Layton said if elected Prime Minister he would: 

* Restrict raw log exports to make sure Canadian jobs come first.

* Create opportunities for businesses and workers through value-addeddevelopment, and innovation.

* Encourage and accelerate sustainable forestry practices.

* Overhaul Ottawa's inadequate program to combat the pine beetle and otherinsects.  

Nathan Cullen, Skeena - Bulkley Valley NDP incumbent says he has  emphasized the need to develop value-added processing in Canada,instead of continually shipping raw logs out of Canada: "There is nothing that workers in other countries do to Canadian lumber that couldn't be done right here," said Cullen. "We should be processing our wood here in the Northwest ­ thats what Ill be fighting for if re-elected."

 Cullen says that while he recognizes the fact that 1^st Nation communities on the coast are shipping raw logs to China, they collectively have told him that they would rather mill that wood in the area. The 1^st Nations community says Cullen is saying that they would prefer to have people working at a mill rather than exporting raw logs.

The single greatest increase in imports into Canada from China in 2007 was lumber products.

Industry executives say the way we have been harvesting our wood in BC and in particular along the coast will change dramatically in the next decade, we may have to be satisfied they say with cutting and hauling the wood for shipment to China and other off shore countries for processing.

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