Canadian forest industry on the up-tick after weathering recession

The forest industry continues to experience growth across the Country, as Canada is listed as one of the few countries flourishing this quarter, according to the Wood Resource Quarterly.

Stats Canada says lumber shipments from sawmills across the country are way up, driven by a recovering US housing market.

But Vice President of the Council of Forest Industries Doug Rutledge says there are different dynamics at play in BC.

“We’ve diversified our markets in Western Canada, particularly in BC offshore. That’s been a saving grace in the recession because when the US crashed, we were already underway in growing our market in China, Japan was already a good customer, but China and Korea saved our bacon during the downturn.”

Rutledge says sawmill shipments in BC are up about 2%, with the rest of Canada seeing a bump of roughly 5%.

He also pointed to new growing sectors of the forest industry such as the pellet business.

“There are portions of trees that don’t make up saw log quality logs that we have traditionally left in the bush because there’s no products demanded in the marketplace for things made from that kind of fibre. So we haven’t brought it to town, but that’s what the pellet industry is starting to consume.”

However, exports of wood pellets from North America fell in the first quarter of the 2015 fiscal year.

Pellet prices in Europe were also at their lowest levels in three years.

But there are still bright lights for the BC forest industry.

After several tumultuous years caused by the pine beetle epidemic, the industry has had more success with wood killed by the pests.

“The sawmills are turning some of that into lumber. but then it produces a higher proportion of lower quality lumber,” explains Rutledge, “The OSB folks don’t mind that. The fibres are still perfectly good for certain kinds of panels.”

Rutledge says the particle board and pellet sectors are using parts of tree that were previously left in the bush.