Forest in flux
Finding a new path forward By Melanie Franner
T
he B.C. forest industry is battling back after difficult times. Years of beetle infestation have been exacerbated by devastating forest fires in 2017 and 2018 – each of which destroyed over 1.2
million hectares of forest. Combined, these two factors have resulted in a significant reduction in the Annual Allowable Cut. “The forest industry in British Columbia is going through a significant transition,” says Susan Yurkovich, president and CEO of BC Council of Forest Industries (COFI). “While the forest sector has faced market and price volatility for years, today we are facing a major structural shift in combination PHOTO COURTESY OF www.naturallywood.com PHOTO BY JOHN CONWAY, COURTESY OF BC COUNCIL OF FOREST INDUSTRIES
with an array of problems relating to trade, tariffs, pests, and wildfires. As a result, we need to rebalance our mill capacity to match the lower level of sustainable harvest. It’s a very challenging time for all of us.” The ongoing battle with U.S. exports doesn’t help the situation. “The Softwood Lumber Agreement problems have become a part of doing business in Canada,” says Yurkovich. “We’ve been facing protectionism in the U.S. for over 40 years. We continue to face an average of 20.23 per cent duties on lumber shipped to customers south of the border.” While the province has undertaken significant efforts to diversify its markets, the U.S remains its largest market, accounting for about 55 per cent of B.C. forest products exports. And work continues on finding new opportunities, especially in Asia. “We’re now sending about 25 per cent of our products to China, with another nine per cent to Japan,” says Yurkovich. “Originally, we were exporting lower-grade, beetle-impacted products. Now, we are able to move into better quality fibre and supply higher-value products.”
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Resource Connector North 2020
