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Forestry On the Rebound says Bell

By 250 News

Wednesday, February 23, 2011 03:59 AM

Prince George, B.C.- The forestry industry is rebounding. 
 
Following lean years that saw mills shut down when the U.S. housing market collapsed, B.C.’s Minister of Forests, Mines and Lands, Pat Bell, says things are definitely looking up. “I have attended the re-opening of 24 mills in the past 24 months, they range from small mills in places like McBride, to very large mills like Quesnel’s Canfor sawmill.”
 
The industry has definitely rebounded says Bell “We are seeing the type of activity in the forest industry that we haven’t seen since the mid 2000’s and I am feeling very optimistic about the future of forestry as we move through 2011”.
 
Bell says in addition to the mills already reopening, he is remains very optimistic about the future for the Terrace region where he expects there will be good news soon either on the sawmill side of the industry or in bio energy. The re-openings continue with the most recent announcement coming from Canfor with the word it will re-open the Vavenby mill in Clearwater. That is an event Bell says is evidence of the collaboration of the United Steelworkers Union to get their members back to work.

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Comments

What is Pat doing about the mid term timber supply problem we will be facing in 10 years or so? That seems to be a taboo subject with the Minister.

A fall down to 60% or less of what used to be a relatively "steady state" AAC in this part of the province.

Sure, tell us the good news, but also tell us what we will be facing and what is being done to mitigate the effect on the traditional economy of this region?
China is a fickle beast. We will be there golden child for now, but then they will find cheaper suppliers and we will then be less favoured, thus I would expect this boom to be about a 5 to 10 year lust period.

Thus it is important for us not to abandon the americans, but to limit our production and raise the lumber value.

30 years ago, lumber was trading at $300 a thousand. Everything else has quadrupled in price, except lumber. The value of the lumber should be $600 a thousand at least. The mills should not be making a windfall in profits because of it. Limit the total provincial production to 12 billion bd ft. Tie the number of jobs, for example, every million bd ft of lumber has to employ 3 people at 60k plus jobs. So if Canfor wants to produce 4 billion bd feet, it has to employ 12,000 workers either in the mills, forestry,logging or administration.
We have to get away from the mentality of trying to sell our lumber at the lowest possible cost. The assets belong to British Columbians, it should employ us and provide economic stability.

Start thinking outside the box.






Who is abandoning the Americans? The Americans are abandoning us.

They'll pick up their lumber from wherever it is the cheapest and then ding them with import duties in some other disguise to raise the price so that theoir mills can make the type of profits you are talking about.

Obama, Bush, it really does not matter who is in charge. They are in deep shit and they are reverting to a protectionist country.

Maybe that is not all bad.
Lumber is a commodity and is sold on New York prices. The price to-day is $299.00 per 1000 fbm. Why would you pay the American Mills more for this lumber if you can get it from Canada for $299.00.

The problem is when the price goes under $300.00 per 1000fbm then the 15% export tax kicks in, however as long as the price is above $300.00 the Canadian Mills and American Mills sell for the same price.

Every Province in Canada sells huge amounts of lumber to the USA. They are our number one (1) customer, and then the Japanese. The Chinese market in low grade, and low price, and if the price of lumber rises to USA and Japan, sales to China will fall.
My God, He spoke, you're beginning to sound like Glen Clark with his "Jobs and Timber Accord" of the '90's.

Just goes to show you what I've always maintained, the POLICY of the Liberals and the NDP is one and the SAME.

BTW, the reason lumber hasn't risen in price proportional to other products has to do with it being competitive with lumber substitutes. The per capita consumption of sawn lumber products in North America peaked around 1900, and has been in steady decline ever since. Weyerhaeuser found that out years ago when they commissioned a study on the future of the forest products industry. But it's easy to see, just by looking at all the various products once made from sawn lumber since then that no longer are.

The only sane purpose of any kind of 'production' is to satiate 'consumption', and do so in the most efficient manner possible. Which WON'T be found in trying to make every productive process more labour intensive, simply because Liberals and NDPers alike believe it's 'morally' wrong to allow anyone to be made comfortable through having an income unless they've be made as uncomfortable as possible in gaining one first.

As long as people are hung up on that hopelessly outdated and totally unnecessary concept, we'll 'work' our way straight into the very poverty we were supposedly trying to avoid.
"That is an event Bell says is evidence of the collaboration of the United Steelworkers Union to get their members back to work"
What about Winton Global or Rustad sawmills Pat? Any word on them?