Daily News for July 22, 2020

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Today’s Takeaway

High operating costs continue to hold back some BC mills

July 22, 2020
Category: Today's Takeaway

Softwood lumber prices continue to rise but demand flows east as high operating costs keeps some BC mills shuttered. In related news: can a forest machine connectivity project reduce BC’s harvesting costs; CN Rail recalls some of its laid off workers; and a new train cargo facility is planned for Terrace, BC. Meanwhile, Nova Scotia opposes Northern Pulp’s bailout deal; and a California court upholds verdict in Monsanto glyphosate case. 

In Forestry/Climate news: the UN says forest loss is still a problem in the tropics; the Sierra Club BC calls for a logging moratorium in at-risk old-growth forests; and an Australian hardwood store blockade seeks to reverse the company’s decision not to stock native forest timber products.

Finally, pizza boxes are recyclable despite cheese and grease. And wine bottles are next!

Kelly McCloskey, Tree Frog Editor

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Business & Politics

CN Rail recalling some of its 4,000 laid off workers as pandemic woes ease

The Canadian Press in the Times Colonist
July 21, 2020
Category: Business & Politics
Region: Canada

MONTREAL, Ontario — Canadian National Railway has laid off about 4,000 employees from its workforce this year as profits sagged 60 per cent in the second quarter amid fallout from the COVID-19 pandemic. CEO JJ Ruest… “We unfortunately had to do quite a few layoffs. The good news is we’re starting to recall some people back to work.” …Cautious optimism remains, however. After taking 14,500 cars off the tracks between April and June, CN has started to bring some out of storage for auto and lumber traffic. With more cars come more recalled workers. “We’re very methodical about bringing them back,” said chief operating officer Rob Reilly. “We’re still trying to figure out what the future volume’s going to be.” …Revenue decreased by $750 million or 19 per cent year-over-year to $3.21 billion in the second quarter, the Montreal-based company said.

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Stettler region to welcome new MDF production plant

By Kevin J Sabo
The Stettler Independent
July 21, 2020
Category: Business & Politics
Region: Canada, Canada West

ALBERTA — The County of Stettler, and representatives from the company made the announcement during a joint meeting on July 15, 2020. The business in question coming to the region is Great Plains MDF Production Inc, which will be building a $750 million straw fibre MDF board plant on a half-section of land near the airport.  According to the press release, the plant will be “an ideally situated half section adjacent to rail, roads, power and water supply.”  When operational, the plant will feature a “1,000,000 square foot main factory which will house 70-metre and 40m continuous press lines.” …It is estimated that the production of the plant will generate 600 direct jobs and 1800 indirect jobs during the construction phase, and 1000 permanent direct jobs and 2400 indirect jobs once completed. 

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It’s a Good Thing: Can the BC forestry industry find its footing through technology?

By Matt O’Grady
BCBusiness
July 21, 2020
Category: Business & Politics
Region: Canada, Canada West

A new project from the Digital Technology Supercluster offers hope for the future—through greater connectivity. Sometimes when you’re looking for the root of a problem, the culprit is clear. With B.C.’s forestry sector, rotten roots could be seen everywhere in 2019, from high stumpage rates and low timber prices to limited log supply (brought on by pine beetles and forest fires), U.S. tariffs… and, oh yes, a handful of mill strikes and shutdowns. So far in 2020, things don’t look much healthier. …One man who’s made efficiency his life’s work is Jean-François Gingras. Gingras runs the forest operations division at FPInnovations… FPInnovations is one of five partners—along with B.C.’s Canfor and TimberWest, UBC’s faculty of forestry and Ottawa-based Lim Geomatics… Their Forest Machine Connectivity project, announced last spring, will seek ways to digitally transform and modernize the way timber is harvested, using an industrial Internet of Things platform and network of smart devices.

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Major train cargo facility planned on former Skeena Cellulose mill site in Terrace

By Jake Wray
Prince Rupert Northern View
July 21, 2020
Category: Business & Politics
Region: Canada, Canada West

A $12-million train cargo facility has been proposed for the former Skeena Cellulose sawmill site on Keith Ave. in Terrace. The inland port, or “transload facility” in industry lingo, would allow for transfer of shipping containers between trucks and trains. There would also be room to pack or unpack contents from inside shipping containers and room to store containers, among other related activities. This means upgrading a rail line that splices off the main CN line to bring trains into the facility, as well as building a loading ramp, warehouses and offices. Progressive Ventures, the prominent Terrace development company driving the project, received several requests to develop a transload facility after purchasing the former mill site in 2019, said Hatha Callis, a Progressive Ventures spokesperson. Callis said he can’t name any companies that may be involved in shipping through the facility because the development still needs to clear some approval milestones…

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High operating costs cripple forest industry recovery

By Nelson Bennett
Business in Vancouver
July 22, 2020
Category: Business & Politics
Region: Canada, Canada West

As governments look to kick-start economies, natural resource sectors say they are in a good position to put British Columbians to work. B.C.’s forestry sector could be one of them but the industry is being crippled by disproportionately high operating costs – something the provincial government could address but appears unwilling to do, says Susan Yurkovich, CEO of the Council of Forest Industries. But starting last year, a wave of sawmill closures and curtailments took place in B.C., and now pulp mills and other secondary industries are poised to fall like dominoes. …“The one thing that’s closing sawmills in B.C. is stumpage rates, and that’s government right now,” said Russ Taylor with Forest Economic Advisors. …Premier John Horgan has said that higher value-added manufacturing is the way forward because it makes higher value use of what timber is available. …Taylor’s response: “You want to create a value-added industry? Well you’ve got to have a healthy primary industry.” …“Why don’t we do what Alberta does?” Taylor asked.

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Province opposes Northern Pulp bailout deal

By Aaron Beswick
The Telegram
July 22, 2020
Category: Business & Politics
Region: Canada, Canada East

The province [Nova Scotia] is opposing a deal that Northern Pulp claims would allow it to continue paying severance to its laid off employees, its share of the cost of Boat Harbour’s shutdown and cleanup, safely idle its kraft pulp mill and work toward an environmental approval for a new effluent treatment plant. The deal is in the form of $50 million in interim financing being offered by Northern Pulp’s parent companies, Paper Excellence Canada and Pacific Harbor North American Resources Ltd. Without access to the loan, Northern Pulp claims that it will run out of money in early August. But the money comes with strings attached. ….The province isn’t commenting on the proposed interim financing deal or its attempts to block it as the matter is part of creditor protection proceedings in British Columbia. The Nova Scotian taxpayer is Northern Pulp’s largest secured creditor, holding just over $86 million in secured loans to the five companies associated with the mill.[We respect the copyrights of the source publication – full access to this story may require a subscription]

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California court upholds verdict in Monsanto cancer case

The Associated Press in CTV News
July 21, 2020
Category: Business & Politics
Region: United States, US West

SAN FRANCISCO — A California appeals court upheld a groundbreaking verdict that Monsanto’s widely used weed killer caused cancer in a school groundskeeper but the panel also slashed the damage award from US$78.5 million to $21.5 million. The 1st District Court of Appeal said there was evidence to support a California jury’s 2018 decision that “Monsanto acted with a conscious disregard for public safety,” but it reduced the damages because state law doesn’t allow damages for reduced life expectancy. The original San Francisco Superior Court jury found that St. Louis-based Monsanto had purposely ignored warnings and evidence that glyphosate causes cancer. Bayer AG, the German corporation that owns Monsanto, called the reduction “a step in the right direction” but said the appellate panel should have thrown out the verdict and said it may appeal to the California Supreme Court.

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Decline in demand for paper hits Finland’s forest industry giant

Xinhua
July 21, 2020
Category: Business & Politics
Region: International

HELSINKI — The profit of Stora Enso, a Helsinki-based forest industry giant, declined to 178 million euros (203.6 million U.S. dollars) in the second quarter (Q2) from 299 million euros in the same period of 2019, according to the company’s financial report published on Tuesday. The turnover of Stora Enso, a manufacturer of pulp, paper and other forest products, was 2,114 million euros in Q2, down from 2,608 million euros year on year, the report showed. The company suffered from the drop in the demand for paper. Annica Bresky, president and CEO of the company, told Finnish business daily Kauppalehti on Tuesday that the measures to curb COVID-19 have accelerated the drop in the demand for paper. Bresky … noted that without the paper division the profit would be 216 million euros, while in Q1 it was 159 million euros. Bresky said it is too early to say what the new level of demand for paper will be in the future.

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Finance & Economics

Prices of softwood lumber continue to rise as demand flows east

By Madison’s Lumber Reporter
Wood Business – Canadian Forest Industries
July 21, 2020
Category: Finance & Economics
Region: Canada, United States

Unabated purchasing of North American construction framing softwood lumber moved prices higher last week, as customers turned to the eastern market. Buyer dismay at record-high Western S-P-F prices brought significant demand for Eastern S-P-F, with those prices responding upward accordingly. Confusion reigned throughout the marketplace, with the closing of July lumber futures contract on the Chicago Mercantile Exchange — also at record highs — providing no clarity. …For the week ending July 17, 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 popped higher still, up by +50, or +10 per cent, to US$554 mfbm, from US$504 the previous week.

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Wood, Paper & Green Building

Pizza Boxes Are Recyclable, Grease and Cheese Not an Issue

The American Forest & Paper Association
July 13, 2020
Category: Wood, Paper & Green Building
Region: United States

WASHINGTON – The American Forest & Paper Association (AF&PA) released new industry guidance that aims to clear up consumer confusion regarding the recyclability of pizza boxes. The guidance resulted from a study conducted by WestRock – an AF&PA member company – that found the presence of grease and cheese at levels typically found on pizza boxes does not impact manufacturing in a negative way. “Corrugated pizza boxes are successfully recycled every day at paper mills throughout the country, yet consumers remain confused by mixed messages suggesting that some boxes should not be put in the recycle bin,” said AF&PA President and CEO Heidi Brock. “So, let’s be clear: pizza boxes are recyclable. …In a recent membership-wide survey, AF&PA members representing 93.6 percent of the total amount of Old Corrugated Containers consumed by member companies, said they accept corrugated pizza boxes for recycling.

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Paper wine bottle launched with 84% lower carbon footprint

By Phoebe French
The Drinks Business
July 1, 2020
Category: Wood, Paper & Green Building
Region: International

British sustainable packaging company Frugalpac has launched a wine bottle made from 94% recycled paperboard, which it said has a carbon footprint 84% less than that of glass. The Frugal bottle is made from predominantly recycled paperboard, and has a food-grade liner insert capable of holding both wine and spirits. Frugalpac said the 75cl bottle, which is up to five times lighter than a glass bottle, also has a carbon footprint over a third lower than a bottle made from recycled plastic. In addition, its water footprint is also at least four times lower than glass. The bottle, which can be refrigerated, is easy to recycle, according to Frugalpac, which states that the paperboard can easily be separated from the liner.

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Forestry

Provincial funding providing invasive species training employment for curtailed mill workers

The Williams Lake Tribune
July 21, 2020
Category: Forestry
Region: Canada, Canada West

Up to nine workers affected by mill curtailments will have the opportunity to gain skills and work in invasive species management and awareness in Williams Lake, Ashcroft and Salmon Arm. The training is possible after the Invasive Species Council of BC (ISCBC) learned it will receive over $550,000 from the Province’s Community and Employer Partnerships program (CEP) to provide on-site work experience. “Workers affected by mill curtailments have a lot of transferable skills and deserve the opportunity to put them to use,” said Shane Simpson, Minister of Social Development and Poverty Reduction in a press release. “This invasive species project is a great opportunity to provide important and meaningful work for people who need it, while reducing the spread and impact of invasive species in B.C.”

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Province funds work experience for laid-off lumber workers in Cariboo, Thompson, Shuswap

Canadian Press in the CFJC Today
July 21, 2020
Category: Forestry
Region: Canada, Canada West

VICTORIA — The B.C. government says some workers in Williams Lake, Ashcroft and Salmon Arm affected by lumber industry layoffs will have the opportunity to gain skills through work in invasive species management and awareness.  The Invasive Species Council of B.C. is receiving more than half-a-million dollars in provincial funding to provide on-site work experience to at least nine people.  They’ll be trained in invasive species identification, management and monitoring, as well as site rehabilitation and restoration — with the work continuing until March of next year.  Thousands of forestry workers in all corners of B-C have lost hours or been laid off as mills have cut production hours or shut down due to a lack of wood or sagging lumber prices.

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Sierra Club BC demands ban on logging of at-risk old-growth forests

By Rich Christianson
Woodworking Network
July 21, 2020
Category: Forestry
Region: Canada, Canada West

VANCOUVER, BC – Sierra Club BC is calling British Columbia officials to “immediately place a moratorium on logging in ecosystems and landscapes with very little old forest” in response to a new study raising the concern of old-growth forest management.  The study, “B.C.’s Old-Growth Forest: A Last Stand for Biodiversity,” states, “The current condition of old forest for many forested ecosystems in BC is low, or very low today, leading to high or very high risk to ecological function, biodiversity and ecosystem services. It is expected to further deteriorate given current policy for protection of old forest and increased disturbance due to climate change. The historic management approach has allowed the old growth situation to become a significant problem, and the situation will only get worse under current provincial policy. The entire management regime therefore requires a significant shift in order to fix the problem.

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Supporting Forest and Stream Habitat Restoration in the Cumberland Plateau

By International Paper
CSRwire
July 21, 2020
Category: Forestry
Region: United States, US East

Stretching from northwest Alabama to eastern Kentucky, the Cumberland Plateau consists of unique geology and landforms that create a vast diversity of habitats. The region was once dominated by shortleaf pine and oak communities, but these forest habitats have declined over the past several decades due to conversion of forest-type, conversion of forests to other land uses, fire suppression, and disease and pest infestations. …That’s why International Paper supports the Cumberland Plateau Stewardship Fund through our Forestland Stewards Partnership with the National Fish and Wildlife Foundation (NFWF). At International Paper, our entire business depends on the sustainability of forests, and we recognize that sustainable forestry doesn’t just happen in the working forests from which we source our fiber. Through strategic collaborations like this one and our Vision 2030 goal of Healthy and Abundant Forests, we are working to conserve the biodiversity and health of all forestland…

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Bunnings should listen to forest industry workers and reverse Victorian native forest timber decision

The Australian Forest Products Association
July 22, 2020
Category: Forestry
Region: International

AUSTRALIA — The blockade by timber trucks of Bunnings’ Traralgon store and a promise by timber workers to undertake more of the same, should cause Bunnings management to reconsider its short-sighted decision to close its doors on Victorian hardwood timber and the thousands who work in Victorian native forest industries, according to the Australian Forest Products Association (AFPA). The Chief Executive Officer of AFPA Ross Hampton said, “Bunnings claims that it has made this decision because it does not stock ‘illegal timber’. However, it is completely wrong to equate the tightly regulated, sustainably managed Victorian timber harvesting operations with the globally recognised definition of ‘illegal logging’ which is unsanctioned, unregulated and leading to deforestation”. …“There are just 4 trees out of 10,000 used in native forestry in Victoria and it is 100 per cent regrowth forestry. It is certified to the world’s largest global certification scheme called PEFC.

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Deforestation has slowed down but still remains a concern, new UN report reveals

United Nations News Centre
July 21, 2020
Category: Forestry
Region: International

Although some 178 million hectares of forest has been lost worldwide over the past three decades, the rate of loss has declined substantially during this period, the UN Food and Agriculture Organization (FAO) said on Tuesday. The finding comes in its latest Global Forest Resources Assessment report (FRA 2020), which aims to turn the tide on deforestation, or the conversion of forest to other uses such as agriculture. “The wealth of information on the world’s forests is a valuable public good for the global community to help facilitate evidence-based policy formulation, decision-making and sound investments in the forest sector,” said Maria Helena Semedo, the FAO Deputy Director-General. The global total forest area stands at some 4.06 billion hectares but continues to decrease, according to the report. FAO estimates that deforestation has robbed the world of roughly 420 million hectares since 1990, mainly in Africa and South America.

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Gippsland timber workers blockade Bunnings over decision to dump Victorian native timber

By Jarrod Whittaker and Jonathon Kendall
ABC News, Australia
July 22, 2020
Category: Forestry
Region: International

Timber workers have blockaded the entrance to the Bunnings store in Traralgon, east of Melbourne, in protest at the company’s decision to stop stocking Victorian native timber products.  The hardware giant decided to dump the products from its shelves after the Federal Court ruled the state-owned timber company VicForests had breached federal environmental law.  About 20 protesters have parked four logging trucks at the store, including one at the entrance, but it was still possible for customers to enter and leave the store.  Felicia Stevenson took part in the protest because her husband and two sons work in the Gippsland timber industry and said the protesters fear for their economic futures.  …The Construction Forestry Maritime Mining and Energy Union (CFMMEU) has accused Bunnings of caving to pressure from environmentalists.

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Carbon, Climate & Bioenergy

Wood Pellet Association of Canada: findings of Dutch advisory board ‘fly in the face of international science’

By Gordon Murray, ED, Wood Pellet Association of Canada
Canadian Biomass Magazine
July 21, 2020
Category: Carbon, Climate & Bioenergy
Region: International

The findings of the Dutch Social and Economic Council suggesting the Netherlands phase out the use of biomass for heating and electricity fly in the face of international science regarding biomass. In fact, the United Nations Intergovernmental Panel on Climate Change (IPCC), the world’s leading authority on climate change, has recognized the significant greenhouse gas (GHG) mitigation potential of biomass – as much as 80 to 90 per cent – provided that it is developed sustainably and used efficiently.  It is ironic that while the majority of European Union member states have met their legal obligations under the 2009 EU Renewable Energy Directive, the Netherlands, along with Luxemburg, are the two countries lagging furthest from meeting their GHG reduction targets. This seems to be the classic case of fiddling while Rome burns.

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Forest Fires

Firefighters Battle Forest Fires in Northeastern California

Associated Press in Fire Engineering
July 21, 2020
Category: Forest Fires
Region: United States, US West

SUSANVILLE, Calif. — Firefighters and aircraft worked Tuesday to halt the spread of two forest fires in rural northeastern California. The Gold Fire in northern Lassen County nearly doubled in size to 7 square miles south of the tiny Modoc County community of Adin and there was zero containment. Two firefighters were injured at that blaze Monday and were flown to a hospital in Redding but there were no details early Tuesday on their conditions or what happened, said Alisha Herring, spokeswoman for the California Department of Forestry and Fire Protection. Herring said damage to a fiber optic cable was interfering with communication. In southern Lassen County, the Hog Fire covered 12.5 square miles (32.4 square kilometers) about 5 miles (8 kilometers) from the town of Susanville and was just 5% contained. The size of the fire was reduced from earlier reports after improved mapping, Cal Fire said.

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Greek firefighters battle forest blaze near seaside village

By George Georgiopoulos and Lefteris Papadimas
Reuters
July 22, 2020
Category: Forest Fires
Region: International

ATHENS  – Greek firefighters are battling to control a large forest fire fanned by strong winds near the seaside village of Kechries in the eastern Peloponnese, fire brigade officials said on Wednesday. Authorities said they had been forced to evacuate a residential settlement as the blaze, burning through pine trees, came close to a military camp where explosives were stored. Thick dark smoke clouded the area, with the front of the blaze moving south in very windy conditions. No damage to property or injuries had been reported. “The blaze is fanned by strong winds, we have recommended the evacuation of three settlements. So far there are no injuries or damage to homes,” a fire brigade official said. …More than 70 firefighters were battling the blaze, assisted by five helicopters and two planes, with volunteers also helping.

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