Daily News for July 29, 2020

Today’s Takeaway

Prices moderate, consumers and analysts take a measured view

July 29, 2020
Category: Today's Takeaway

Softwood prices moderated somewhat while consumers and forest sector analysts become less optimistic about the short-term outlook. Companies in today’s news include: West Fraser (strong profits); Pacific BioEnergy (conveyor fire); Northern Pulp (Nova Scotia gov’t pushback); Corner Brook Pulp & Paper (federal funding for diversification); and Weyerhaeuser (new sustainability strategy).

In Forestry/Climate news: BC’s oldest Community Forest celebrates 20 years; Oregon increases fire restrictions due to hot temperatures; California’s Shasta College secures a commercial timber license; a book review of The Journey of Trees; and FPInnovations’ Smart Driver for Forestry Trucks training is now online.

Finally, almost 3 billion animals were affected by Australia’s 2019/20 bushfires.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

West Fraser Timber sees profit soar in second quarter

By Andrew Bell
BNN Bloomberg
July 28, 2020
Category: Business & Politics
Region: Canada, United States

West Fraser Timber has reported an operating profit in its most recent quarter despite the COVID-19 pandemic. A surge in lumber prices is a key reason.

(Plus – edited transcript of WFT.TO conference call)

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Firefighters douse smoldering wood at pellet plant

The Prince George Citizen
July 28, 2020
Category: Business & Politics
Region: Canada, Canada West

Prince George Fire Rescue was called out to the Pacific BioEnergy pellet plant on Monday evening. Alerted to a possible explosion shortly before 5 p.m., firefighters arrived to find a small amount of smoke coming from wood smoldering inside a conveyor system at the plant. The smoke was quickly doused, there were no injuries and damage was estimated at $50,000, assistant fire chief John Law said.In a statement, Pacific BioEnergy CEO John Stirling employees’ emergency response  training paid off as they contacted PGFR immediately following the incident.

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Canada Preserving Jobs in Newfoundland and Labrador

By Natural Resources Canada
Cision Newswire
July 29, 2020
Category: Business & Politics
Region: Canada, Canada East

Seamus O’Regan

CORNER BROOK, NL — The Honourable Seamus O’Regan, Canada’s Minister of Natural Resources, along with Gudie Hutchings, Member of Parliament for Long Range Mountains, announced $442,035 for Corner Brook Pulp and Paper Limited to study bioeconomic diversification opportunities while minimizing risks related to the decline in demand for newsprint. Corner Brook Pulp and Paper will look to diversify and expand its products, enabling the mill to continue accepting 100 percent locally-produced wood chips. This initiative would keep Newfoundland and Labrador’s forest supply chain operating and provide surrounding communities with a source of employment, including 1,125 direct and indirect jobs in a variety of sectors such as transportation, equipment, and maintenance. Funding for this project is provided through the Investments in Forest Industry Transformation program.

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Northern Pulp cried poor while paying parent company nearly $60 million, Nova Scotia officials argue in court documents

By Aaron Beswick
The Chronicle Herald
July 28, 2020
Category: Business & Politics
Region: Canada, Canada East

The province has accused Northern Pulp of misappropriating taxpayer funds and misrepresenting its financial state to allow it to funnel more money back to its parent company.  The accusations are found in affidavits filed by high-level Nova Scotia government officials in the British Columbia Supreme Court in which they argue Northern Pulp shouldn’t be allowed to accept a $50-million loan from Paper Excellence Canada and related company Pacific Harbour North American Resources.    …According to Duff MacKay Montgomery, deputy minister at the Department of Labour and Advanced Education, Northern Pulp has soured the well with the province by playing loose with taxpayer funds. …Those negotiators saw that in 2018, when Northern Pulp had come to the province crying poor and seeking loan payment deferrals worth about $3 million, it had found $59.9 million to pay Paper Excellence Canada Holdings Corporation. [We respect the copyrights of the source publication – full access to this story may require a subscription]

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Finance & Economics

Softwood lumber prices partially moderate as plywood corrects down

By Madison’s Lumber Reporter
Wood Business – Canadian Forest Industries
July 28, 2020
Category: Finance & Economics
Region: Canada, United States

For the week ending July 24, 2020, prices of standard construction framing dimension softwood lumber items increased yet further. Benchmark softwood lumber item Western S-P-F 2×4 #2&Btr KD rose once again, up by another +36, or +7 per cent, to US$590 mfbm, from US$554 the previous week. The price for this lumber commodity was up +$154, or +35 per cent, from one month ago. Compared to the same week in 2019 this price is up +$238, or +68 per cent. Eastern S-P-F lumber dealers were again agog at the unrelenting demand from customers in the East. So little material was available – and prices so insanely high – that some buyers were switching from Spruce to Douglas-fir to save a few bucks.

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Housing Starts, Permits & Completions

By John Greene
Forests2Market Blog
July 29, 2020
Category: Finance & Economics
Region: United States

Privately-owned housing starts were up 17.3 percent in June to a seasonally adjusted annual rate of 1.186 million units. Single-family starts increased 17.2 percent to a rate of 831,000 units; starts for the volatile multi-family housing segment jumped 17.5 percent to a rate of 355,000 units. …Overall, most analysts are taking a measured view about housing’s prospects in the near term. Joel Naroff… “this is a sector that was ripe for ‘make-up’ sales. …It is likely to take a few more months before we know the true state of the housing market. Low mortgage rates are great, but income uncertainty is a major negative. So, don’t be surprised [if] August or September numbers are not as great as expected.”

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The Conference Board Consumer Confidence Index Decreased in July

The Conference Board
July 28, 2020
Category: Finance & Economics
Region: United States

The Conference Board Consumer Confidence Index® decreased in July, after increasing in June. The Index now stands at 92.6, down from 98.3 in June. The Present Situation Index – based on consumers’ assessment of current business and labor market conditions – improved. However, the Expectations Index – based on consumers’ short-term outlook for income, business, and labor market conditions – decreased. … “The Present Situation Index improved, but the Expectations Index retreated. …Looking ahead, consumers have grown less optimistic about the short-term outlook for the economy and labor market and remain subdued about their financial prospects. Such uncertainty about the short-term future does not bode well for the recovery, nor for consumer spending.”

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Forestry

Smart Driver for Forestry Trucks training now online

Today’s Trucking News
July 29, 2020
Category: Forestry
Region: Canada

MONTREAL, Quebec – Forestry truck drivers are now able to take the Smart Driver for Forestry Trucks program online. The training program was developed by FPInnovations and the Office of Energy Efficiency of Natural Resources Canada. It’s designed for fleet owners and drivers, and includes five modules: Smart driver in the forest industry; Principles of defensive driving; Effective driving; Choice of truck components; Basic maintenance knowledge. FPInnovations points out a 5% reduction in fuel consumption can save 135 million liters of fuel, and reduce greenhouse gas emissions by 365 kgs industry-wide. “Reducing fuel consumption and operating costs are two constant challenges for forest truck drivers. …To register, go to, fpinnovations.myabsorb.ca and enter this key name: drive-smarter.

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An Entomologist says it’s not Asian giant hornets that people are seeing in the Cariboo

By George Henderson
My Cariboo Now
July 28, 2020
Category: Forestry
Region: Canada, Canada West

There are still no confirmed sightings of the Asian giant hornet in the Cariboo, despite what some people may think. Debra Wytrykush, a Forest Entomologist with the Ministry of Forests, Lands, Natural Resource Operations and Rural Development, says Cariboo residents have sent her several samples and photos of wasps to her recently, but she says they have actually turned out to be what are called wood wasps or Horntails. And she says humans do not have to be afraid of them. “The biggest concern people have expressed to me is when you look at a wood wasp they have what looks like a really long stinger coming out of the end of their abdomen, and it’s actually not a stinger. It’s an ovipositor and the female uses that to deposit her eggs into old downed and stressed trees or rotten logs, so it has nothing to do with stinging people and the females will never sting a person.” 

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Burns Lake Community Forest completes 20 years

By Priyanka Ketkar
Burns Lake Lakes District News
July 29, 2020
Category: Forestry
Region: Canada, Canada West

On July 22, Burns Lake Community Forest (BL Comfor) hosted their annual open house and bbq and invited over the community to enjoy and revel in BL Comfor’s 20th anniversary.  ”A milestone is always a great achievement. As BL Comfor was the first pilot community forest, it is the oldest community forest in the province of BC. Having successfully navigated through the mountain pine beetle epidemic while continuing to provide local benefit, is an achievement in itself. Our mistakes of the past has helped us succeed in the present and will ensure our success for the future,” said Frank Varga, the general manager for BL Comfor.  The open house and the bbq saw live music and lots of food and drinks for the community. There was also a hand sanitizing station with masks for those who wanted them.

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Weyerhaeuser Announces New Sustainability Strategy

By Weyerhaeuser Company
Cision Newswire
July 28, 2020
Category: Forestry
Region: United States

SEATTLE, Washington — Weyerhaeuser Company announced the launch of a new sustainability strategy that maps out ambitious commitments and goals for the next decade and beyond. …Weyerhaeuser is committed to making tangible progress in these three areas by 2030 as part of its new 3 by 30 initiative. Some actions involve continuing and strengthening existing work. Others involve engaging new  partnerships and stakeholders, and driving innovation in new areas, including: supporting the development of forest carbon markets and accounting, including committing to set a companywide, science-based greenhouse gas reduction target; and promoting the use of mass timber and other innovative wood-building materials, including helping to ensure sustainable building standards and tools include science-based assessments of wood products.

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Oregon forestry increases fire precautions

The Hood River News
July 28, 2020
Category: Forestry
Region: United States, US West

Oregon Department of Forestry’s Central Oregon District increased restrictions for forest operations and the public beginning July 27. These restrictions are intended to reduce the risk of fire ignition on lands within the Central Oregon District in Lake, Harney, Deschutes, Crook, Wasco, Hood River, Grant, Wheeler, Gilliam, Jefferson, Morrow and Umatilla counties. Minimal precipitation combined with increasing hot temperatures has continued to dry wildland vegetation and fuels, increasing the potential for rapid fire spread. The Regulated-Use Closure, restricts many high-risk activities between the hours of 10 a.m. and 8 p.m. and prohibits activities such as blasting, in addition to restricting other activities. Anyone traveling on forested roads is required to have one shovel and one gallon of water (or a 2 ½ pound fire extinguisher). …Full details of the closure and restrictions of industrial activities are available at www.ODFcentraloregon.com.

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Applicants Sought for Forest Service’s Women-In-Wildfire Basic Training Camp

NBC Southern California
July 28, 2020
Category: Forestry
Region: United States, US West

U.S. Forest Service fire management officials are seeking 30 candidates for the fourth annual Women-in-Wildfire Basic Training Camp based at Little Tujunga Hotshot headquarters in Sylmar, it was announced Tuesday. The six-day camp, which begins on Nov. 16, is designed to introduce and prepare women for entry-level wildland firefighter jobs throughout California and surrounding states. “Led by female firefighters who have over 60 years of combined experience, this camp is structured to train women in basic firefighting techniques and fire behavior through classroom and hands-on training,” according to a Forest Service statement. “Students will practice on multiple types of fire suppression equipment, including Forest Service fire engines, hand tools and advanced firing techniques.”

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The Nature Conservancy takes interest in local forests through Vail Resorts partnership

By John LaConte
Vail Daily News
July 28, 2020
Category: Forestry
Region: United States, US West

Vail Mountain’s Epic Discovery may not be in full operation this year, but the resort’s partner in the effort – The Nature Conservancy – remains dedicated to the issues the partnership sought to tackle. Chief among those issues is an effort to reduce wildfire risks in Vail and Breckenridge. Over the past three years, 1% of revenue from Epic Discovery activities has went to The Nature Conservancy, which seeks to identify opportunities for forest management collaborations in our area. Among the many tough decisions Vail Mountain will have to make in the coming months is if that donation will continue this summer, considering the only Epic Discovery activities available are mountain’s Forest Flyer roller coaster and Eagle’s Loop informative hike… The Nature Conservancy’s major focus in Vail in recent years involved the Vail Intermountain Fuels Reduction project, a $1.1 million effort which removed 200,000 board feet of conifer trees from the Intermountain area of Vail from 2017 to 2019.

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Shasta College first to receive commercial timber license

Red Bluff Daily News
July 28, 2020
Category: Forestry
Region: United States, US West

Shasta College recently became California’s first educational institution to be issued a Commercial Timber Operators License and the college made the first delivery of student-harvested logs to the Sierra Pacific Industries mill in Anderson.  Becoming a Licensed Timber Operator allows Shasta College to collect proceeds from timber that students harvest as part of the college’s logging training program. The college will then invest most of those proceeds back into the college’s Heavy Equipment Logging Operations certificate program to help offset operational costs such as fuel, consumables, maintenance and repairs.  The first contracted logs from the student training ground were delivered to the SPI Anderson sawmill on July 20. The load of 34 Douglas fir logs with an average length of 36 feet totaling 3,930 board feet demonstrates the culmination of the successful partnership built among key stakeholders.

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Upgrade of Indonesian palm oil certification falls short, observers say

By Hans Nicholas Jong
Mongabay.com
July 29, 2020
Category: Forestry
Region: International

JAKARTA — The Indonesian government’s planned update to its palm oil sustainability certification program doesn’t do enough to protect Indigenous communities from land grabs or prevent the destruction of forests, groups say. The Indonesia Sustainable Palm Oil (ISPO) scheme prohibits the conversion of Indigenous lands to oil palm plantations, but relies on the official framework for recognizing Indigenous land claims that covers only a tiny fraction of such areas. It also fails to explicitly call for the protection of secondary forests, allowing an area greater than the size of California to potentially be cleared for more plantations. There is also no provision for independent monitoring of the ISPO certification scheme itself that would provide credibility and oversight to the system.

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Cameroon Allows Logging in Forest That’s Home to Gorillas

By Pius Lukong
Bloomberg Quint
July 28, 2020
Category: Forestry
Region: International
Cameroon defended a decision to allow logging in part of a forest that’s home to lowland gorillas and chimpanzees after environmental groups said the government may have signed a death sentence for the critically endangered primates. The government in a July 14 decree declared almost half the Ebo Forest a so-called Forest Management Unit, opening it up for logging, following years of efforts from conservationists to secure the forest’s protection. The forest was designated in 2006 as a proposed National Park but the government never signed the decree.   Logging is a big industry in Cameroon, which ranks among the world’s largest exporters of tropical timber by volume, the International Institute for Environment and Development said in a report last year. While most timber historically went to Europe, increased Chinese investment in infrastructure projects, many of them in forest areas, means China is now Cameroon’s biggest buyer.

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Carbon, Climate & Bioenergy

Believe It Or Not, Forests Migrate — But Not Fast Enough For Climate Change

By Ari Shapiro
NPR Radio
July 28, 2020
Category: Carbon, Climate & Bioenergy
Region: United States

…In his new book The Journeys of Trees, science writer Zach St. George explores an agonizingly slow migration, as forests creep inch by inch to more hospitable places. Individual trees, he writes, are rooted in one spot. But forests? Forests “are restless things.” As old trees die and new ones sprouts up, the forest is — ever so slightly — moving. …This has happened over millennia, and climate change tends to be the driving force — pushing and pulling forests around the globe. Of course, today, climate change is speeding up, and trees can’t keep pace. Writing a book about forests unable to outrun climate change may sound grim, but St. George says he still finds reasons for optimism. …The book is very much about trees, but it’s also very much about people. 

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Forest Fires

Almost 3 billion animals affected by Australian bushfires, report shows

By Graham Readfearn & Adam Morton
The Guardian UK
July 28, 2020
Category: Forest Fires
Region: International

Nearly 3 billion animals were killed or displaced by Australia’s devastating bushfire season of 2019 and 2020, according to scientists who have revealed for the first time the scale of the impact on the country’s native wildlife.  The Guardian has learned that an estimated 143 million mammals, 180 million birds, 51 million frogs and a staggering 2.5 billion reptiles were affected by the fires that burned across the continent. Not all the animals would have been killed by the flames or heat, but scientists say the prospects of survival for those that had withstood the initial impact was “probably not that great” due to the starvation, dehydration and predation by feral animals – mostly cats – that followed.  An interim report based on work by 10 scientists from five institutions, commissioned by the World Wide Fund for Nature (WWF), suggests the toll from the fires goes much further than an earlier estimate of more than 1 billion animals killed.

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