Outlook 2020: Forestry sector’s annus horribilis

By Nelson Bennett
Business in Vancouver
January 7, 2020
Category: Business & Politics
Region: Canada, Canada West

For B.C. sawmill workers and loggers, 2019 was an annus horribilis that they can only hope is not repeated in 2020. Prolonged wet weather in the U.S. that delayed the construction season, higher stumpage rates, American duties on softwood lumber, a shrinking timber supply and one of the longest strikes ever. …Even mills that are still operating eliminated shifts. And when those shifts are added to the permanent mill closures in the province, it is the equivalent of eight sawmill closures in 2019, according to forestry consultant Jim Girvan. The central issue in 2020 for the B.C. government will be fixing the current stumpage system, said Russ Taylor, managing director of the Forest Economic Advisors consultancy. …Taylor recently concluded an analysis of 29 lumber-producing jurisdictions. It confirmed that, in 2019, B.C. was the highest-cost producer in the world. …Taylor expects lumber prices will increase by 10% in 2020. That may forestall further mill closures in 2020.

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