US builder confidence surged in June as Canadians shed their pessimism about the economy, and lumber prices stabilized. But according to two FEA principals: the current recession will play out differently than 2008 as housing starts and lumber prices tick-up through 2021.
In other Business news: Canfor’s Swedish subsidiary acquires 3 sawmills; China claims pests found in logs imported from Canada; and BC appoints Ravi Kahlon to lead its mass timber expansion, as a Georgia bill seeks to expand its use. Meanwhile: Nova Scotia names board to oversee new forestry trust; and Western Forest Products defends limited pesticide use in Powell River region.
Finally, a Philadelphia study says increasing tree canopy can decrease human mortality!
Kelly McCloskey, Tree Frog Editor
VANCOUVER, BC — Canfor announced that its 70%-owned subsidiary, Vida Group, has entered into an agreement to purchase three sawmills located in Sweden from Bergs Timber for a purchase price of CAD$43 million plus working capital. …The three mills, which are located in Vimmerby, Mörlunda and Orrefors, Sweden, will add approximately 215 million board feet to Vida’s annual capacity. With additional investment, Vida anticipates the production capacity of the mills can be increased to 300 million board feet. After taking into account this additional production capacity, Sweden represents 22% of Canfor’s globally diversified operating platforms, plus 43% in BC, 31% in the Southern US and 4% in Alberta. The transaction is expected to close in the third quarter of 2020.
Maine logging and forest trucking contractors have joined a national effort seeking federal relief for their industry at a time when COVID-19 and its economic impacts are threatening the survival of the companies on which the entire U.S. forest economy depends. The Maine industry was introduced to COVID-19 in January and February as export markets started to shut down, bringing about an abrupt end to their busiest time of year even before the state began to see the impacts of the disease. …our state’s family logging and forest trucking businesses persevered as they were deemed essential and felt that a growing demand for wood fiber during the pandemic could lift them back to health. This optimism quickly turned to despair… How bad is it? …Maine loggers and forest truckers have seen what has been done to help …the farming and fishing industries…now they hope that [government] will do the same for them.
The Nova Scotia government has named the three-person board that will oversee a $50-million trust fund intended to help the province’s forestry industry transition into a more diversified sector. The fund was announced in February, in the wake of the closure of the Northern Pulp mill in Pictou County and a near immediate downturn in the industry as a result of losing its largest player. It also came against the backdrop of a report calling for a more sustainable, ecological approach to forestry. Sandra McKenzie, a former deputy minister for the province who now works as a consultant, will chair the board. She is joined by Douglas Hall, a former managing director at RBC Capital Markets, and David Saxton, a retired partner from Grant Thornton.
Why would I tell the Bureau of Land Management to “take a hike”? Because I live and work in the Thurston Hills, and based on my knowledge of the area, the agency seems totally clueless about the land that they are managing. …But there are ample reasons for these supposed experts to lace up their hiking boots when proposing timber sales. First, to identify potential hazards to surrounding properties and adjacent communities. Then to inform those homeowners of the danger of fire and landslides that would result from extensive logging next to those properties. But, for all intents and purposes, the BLM has failed to do either. …The link between logging and wildfire isn’t news to the BLM. In September of last year, a district court judge stopped the sale due to the BLM’s failure to disclose that, according to their own science, the project would increase the risk of wildfire to adjacent communities.
The first city-wide health impact assessment of the estimated effects of a tree canopy initiative on premature mortality in Philadelphia suggests that increased tree canopy could prevent between 271 and 400 premature deaths per year. The study by Michelle Kondo, a Philadelphia-based research social scientist with the U.S. Department of Agriculture Forest Service, and her partners suggest that increased tree canopy or green space could decrease morbidity and mortality for urban populations — particularly in areas with lower socioeconomic status where existing tree canopies tend to be the lowest. …”This study supports the idea that increasing tree canopy and urban greening efforts are worthwhile, even at modest levels, as health-promoting and cost-saving measures,” Kondo said. “While the COVID-19 pandemic has meant that we need to pay attention to our proximity to other people… time outside in parks and forests has been critical to maintaining our mental and physical health.”
