Daily News for May 06, 2020

Today’s Takeaway

The road to recovery is about markets and balance sheets

May 6, 2020
Category: Today's Takeaway

The road to recovery for the resource sector is more about markets and balance sheets. Here are the headlines:

In other news: Alberta increases fibre access to save jobs; BC’s First Nation bans planting on its lands; BC stumpage deferral falls short for First Nations; and Williams Lake flood linked to wildfire and deforestation.

Finally, a new date for the mass timber conference and newbies in the #TreeFrogICU.

Kelly McCloskey, Tree Frog Editor

Read More

Special Feature

Have you added your smiling face to the #TreeFrogICU?

By Sandy McKellar
Tree Frog Forestry News
May 6, 2020
Category: Special Feature
Region: Canada, United States, International

We’ve got more visitors in our ICU today, come on in and see who’s here! And, if you haven’t submitted your picture, what’s stopping you? It’s going to be a while before forestry events, conferences and meetings go back to face-to-face events. Meanwhile, we need to keep up our social connections and networking in the sector. The #TreeFrogICU is just the place to do it! Email your picture to sandy@treefrogcreative.ca today!

Read More

Business & Politics

Weyerhaeuser reports Q1 earnings of $150 million

By Weyerhaeuser Company
The Magnolia Reporter
May 5, 2020
Category: Business & Politics
Region: Canada, United States

Weyerhaeuser Company has reported first quarter net earnings of $150 million on net sales of $1.7 billion. This compares with a net loss of $289 million on net sales of $1.6 billion for the same period last year. …Excluding an after-tax benefit of $12 million for special items, the company reported first quarter net earnings of $138 million, or 18 cents per diluted share. This compares with net earnings before special items of $80 million for the same period last year and $23 million for the fourth quarter of 2019. Adjusted EBITDA for the first quarter of 2020 was $413 million compared with $365 million for the same period last year and $260 million for the fourth quarter of 2019.

Read More

Norbord reports Q1 earnings of $75 million

Norbord
May 6, 2020
Category: Business & Politics
Region: Canada, United States

TORONTO — Norbord today reported Adjusted EBITDA of $75 million for the first quarter of 2020 compared to $27 million in the fourth quarter of 2019 and $42 million in the first quarter of 2019. The quarter-over-quarter increase was primarily driven by higher realized North American oriented strand board prices and shipments while the year-over-year increase was driven by higher realized North American OSB prices and lower raw material and energy prices, partially offset by lower shipments. North American operations generated Adjusted EBITDA of $68 million compared to $20 million in the fourth quarter of 2019 and $23 million in the first quarter of 2019, and European operations delivered Adjusted EBITDA of $10 million compared to $11 million in the fourth quarter of 2019 and $21 million in the first quarter of 2019.

Read More

Increased access to fibre helps protect jobs

By Justin Laurence, Acting Press Secretary, Agriculture and Forestry
Government of Alberta
May 4, 2020
Category: Business & Politics
Region: Canada, Canada West

With the province’s fibre supply facing significant pressures, including mountain pine beetle and wildfire, the government is taking steps to ensure access to fibre to support a strong and competitive forest industry that attracts investment and provides stable, good-paying jobs for hard-working Albertans. The Forest Jobs Action Plan supports forest businesses by increasing the AAC by up to 13 per cent, while ensuring continued sustainable forest management principles. “The Forest Jobs Action Plan shows that we are committed to sustainable, long-term fibre access for foresters while ensuring our forests continue to be sustainable and can be enjoyed by future generations of Albertans. We’re giving forest companies the certainty they need by increasing the AAC by up to 13 per cent and exploring additional economic opportunities,” said Devin Dreeshen, Minister of Agriculture and Forestry.

Read More

B.C. Forest Minister indicates COVID-19 has led to nearly two-dozen mill curtailments

By Victor Kaisar
RADIO NL 610
May 5, 2020
Category: Business & Politics
Region: Canada, Canada West

Doug Donaldson

B.C.’s Forests Minister says almost two dozen mills in the province have had to curtail or shut down operations because of COVID-19. Speaking on NL Newsday, Doug Donaldson says it shows the impact the pandemic is having on an already beleaguered sector of the B.C. economy, which has been deemed to be essential. “We have somewhere in the neighbourhood of 45 curtailed or closed mills at this point,” he said. “Certainly that number wasn’t that high until we saw COVID-19 impacts, so I think you can draw a pretty straight line between many of those curtailments that we saw in March and in early April and the lack of housing starts in the United States.” “I mean I think we were around 24 mills that had been curtailed and now we are at 45, and that’s just been in the last six weeks. So yes, COVID has had its impact.”

Read More

B.C.’s road to recovery: Resource sector reboot is more about markets

By Nelson Bennett
Business in Vancouver in BurnabyNow
May 6, 2020
Category: Business & Politics
Region: Canada, Canada West

While businesses shut down by the pandemic look to the provincial health officer for guidance on when they might slowly and cautiously reopen, many resource companies are looking more to global markets and balance sheets for that guidance. …B.C.’s forest industry may be the resource sector hardest hit by both workplace restrictions and falling demand for commodities. Several forestry companies in B.C. began implementing two-week curtailments in March. …“Housing starts have been impacted significantly by the pandemic, so markets have dropped off for sure,” said Susan Yurkovich, CEO of the Council of Forest Industries. “There’s been a mix of COVID closures and then market-related curtailments. Some operations are still curtailed because of market reasons.” If B.C. forestry companies have plans for a restart, they are keeping them close to their chest.

Read More

B.C.’s road to recovery: Canada looks for access inroads in China’s reopening

By Chuck Chiang
Business in Vancouver
May 5, 2020
Category: Business & Politics
Region: Canada, Canada West

While Canadian exporters looking at the U.S. market continue to wait on the exact nature of the reopening, the picture is clearer – though not much brighter – for those looking at China. That’s because China, where the COVID-19 outbreak in January caused its first shutdown of a major global economy, has since been gradually reopening, culminating in the disease epicentre in Wuhan reopening earlier this month. …The concern now, said one Chinese economist familiar with the B.C. situation, is that Beijing’s worries about a second wave of COVID-19 have prompted China to ban foreign citizens from entering the country. …As for potential for imports from B.C. and Canada, Chen said the numbers will definitely be ugly for the months of March, April and May as the Chinese limit inbound international traffic.

Read More

Trex decking sales up with home improvement trend

By Catherine Kavanaugh
Plastics News
May 6, 2020
Category: Business & Politics
Region: United States

Trex Co. Inc. posted first quarter sales of $200 million, a 12 percent increase compared to the same period last year, as robust demand for composite decking continued even after a pandemic was declared on March 11. Profits also were up, climbing to $42 million for the Winchester, Va.-based company compared to $32 million for the first quarter of 2019. The potential economic impacts of the COVID-19 crisis on Trex will largely depend on its duration, according to company officials, who rescinded guidance for full-year 2020. …Unless current conditions substantially change, Trex is projecting second quarter sales of $180 million to $190 million.

Read More

Clearwater Paper cleans up with toilet paper boom

By Elaine Williams
The Lewiston Tribune
May 6, 2020
Category: Business & Politics
Region: United States, US West

Arsen Kitch

Unprecedented demand for toilet paper triggered by coronavirus hoarding helped Clearwater Paper Corp. kick off the first part of 2020 with a $10.3 million profit, more than twice what it earned during the same time last year. The company… shipped more than 15 million cases of tissue products in January, February and March, about 19 percent more than in each of the quarters in 2019, said Clearwater Paper President and CEO Arsen Kitch. Overall tissue sales in the United States were up more than 90 percent in March, compared with the same time last year, as consumers emptied shelves of toilet paper, said Kitch …In Lewiston, one of the challenges the company faces predates the coronavirus. Clearwater Paper is still only getting a $10 million annual savings from a $160 million upgrade it finished in 2017 that features a continuous pulp digester, which cooks chips more evenly than the equipment it replaced, not $30 million per year as previously announced.

Read More

LP reports Q1 earnings of $33 million

Louisiana Pacific Corporation
May 5, 2020
Category: Business & Politics
Region: United States, US East

NASHVILLE, Tennessee — Louisiana-Pacific reported first-quarter earnings of $33 million. The Nashville, Tennessee-based company said it had profit of 29 cents per share. Earnings, adjusted for one-time gains and costs, came to 34 cents per share. The home construction supplier posted revenue of $585 million in the period. Louisiana-Pacific shares have dropped 34% since the beginning of the year. The stock has fallen 21% in the last 12 months.

Read More

Rayonier Advanced Materials reports Q1 loss of $25 million

Rayonier Advanced Materials
May 5, 2020
Category: Business & Politics
Region: United States, US East

JACKSONVILLE, Florida — Rayonier Advanced Materials reported a loss from continuing operations for the three months ended March 28, 2020 of $25 million compared to a loss of $28 million for the same prior year period. …”In the first quarter, we experienced minimal impact to the Company related to COVID-19. …The outlook for the balance of the year is far from certain and, as a result, we have taken and will take the actions necessary to both protect our employees and assets and mitigate the potential financial consequences to the Company. 

Read More

Small-town lumberyard finds US fans for famed Japanese cedar

By Tetsushi Matsuo
Nikkei Asian Review
May 6, 2020
Category: Business & Politics
Region: International

OITA, Japan — A small Japanese lumberyard on the southern island of Kyushu is building a foothold in the U.S. market by carving an opportunity from Washington’s trade battles with Beijing and others. Koichiro Seto, president of Seto Seizai, visited Florida in December to see with his own eyes how cedar wood is used in American construction. “Products with added value will sell, even at a higher price point,” Seto said, revealing what he gleaned from the trip. The roughly 50-person company was founded in 1912. Seto… thinks the U.S. could prove an attractive market for Hita cedar, a type of Japanese cedar… Hita cedar is easily processed but can withstand significant vertical force. Seto sees the lumber as an alternative to western red cedar, a popular construction material in the U.S. In addition, sending Hita cedar from Japan to the U.S. costs little more than shipping western red cedar across North America.

Read More

Effects of COVID-19 on the tropical timber sector

The Timber Trades Journal
May 5, 2020
Category: Business & Politics
Region: International

The International Tropical Timber Organisation (ITTO) has published its first analysis on the effects of Covid-19 on the global tropical timber sector. The results show that in Africa companies with forest certification allows them to be more resilient and more reactive because of the strong implementation of good practices being already put in place. …The situation in China continues to improve and resumption of production has been carried out stably and orderly; demand for imported wood in China is rebounding gradually. Meanwhile, in North America the wood industry has been… able to deliver normally. …Timber harvesting and exports in Germany, Finland, Sweden and Belarus are still proceeding normally. …In New Zealand a resumption to normal supply is expected by the end of April. In Russia, borders were closed on March 30 but goods are still allowed to be transported across border.

Read More

Finance & Economics

China’s rebounds but growth predictions muted due to fears of second wave

By Eric Wong, Managing Director, China
Canada Wood Group
April 24, 2020
Category: Finance & Economics
Region: Canada, International

China’s economy recorded the first contraction in decades in the first quarter of 2020. …China’s GDP shrank 6.8% year-on-year in Q1 2020; the worst performance since at least 1992. The Caixin China General Manufacturing PMI index rebounded to 50.1 in March 2020 from a record low 40.3 in the previous month, indicating limited improvement in manufacturing activity. …The Economist Intelligence Unit under the Economist Group has revised its forecast for real GDP in China for 2020 to a 1% growth, from a 5.4% growth previously. …Most softwood lumber prices have experienced increases of US$ 5-30/ m3 on new offers. …The return to activity in March and early April shows a return to Q3-Q4 2019 price levels

Read More

Wood, Paper & Green Building

Mass timber conference scheduled to return in 2021

By Chuck Slothower
Oregon Daily Journal of Commerce
May 5, 2020
Category: Wood, Paper & Green Building
Region: United States, US West

International Mass Timber Conference officials have bowed to the inevitable, canceling the 2020 event and planning another for next year. The 2021 conference will take place March 30-April 1 at the Oregon Convention Center, organizers announced Monday. This year’s conference was supposed to be headlined by Japanese architect Shigeru Ban. He’s engaged in designing Key Development’s Block 25 project in Old Town Chinatown. Organizers had previously held out hope the conference could be held later this year after it was postponed from its initial dates of March 23-26. As with other large events, organizers came to recognize an international conference would be ill-considered during the COVID-19 pandemic.

Read More

Forestry

Quispamsis student braves COVID-19 in cross-Canada trek to tree planting job in B.C.

CBC News
May 5, 2020
Category: Forestry
Region: Canada

Jacob Delaquis

…Jacob Delaquis, 21, of Quispamsis, has a tree planting job waiting for him in 100 Mile House, B.C. So he packed up his car with food, disinfectant wipes, gloves and masks, and set out on the more than 5,000-kilometre journey. …Delaquis said he was surprised he’s come across only two border “check-ups” — when crossing from New Brunswick into Quebec and from Ontario into Manitoba. …Delaquis has to fill out a daily log for the forestry company, including where he has travelled, his temperature and any symptoms. “It’s a vigorous process. And it’s very regulated,” he said. …Another precaution the company is taking is separating the crews of 18 into carloads of four or five and keeping them isolated for the first two weeks, said Delaquis, who will be one of the drivers. …”After a long day, like you’re doing the same motion constantly and it’s not just like one body part it’s … your entire body that is aching,” he said.

Read More

Better ways for the government to subsidize forestry

Letter by Taryn Skalbania, co-founder of the Peachland Watershed Protection Alliance
BC Local News
May 6, 2020
Category: Forestry
Region: Canada, Canada West

Last month Trudeau announced an oil industry subsidy, hoping public-funded bailouts with public shaming would nudge clean up of environmental messes and abandoned wells. This government/industry/environment triumvirate maybe what we need for post COVID recovery. Then Horgan’s NDP/Greens announced BC’s COVID Economic Recovery Task Force. Conspicuously absent were any environmental and first nation organizations knowledgeable in biodiversity and climate change. …April 30, Ministry of Forests announced; “COVID-19 just added to challenges facing our forest sector. The B.C. government is deferring stumpage fees (rent) it charges to help industrial forest companies navigate through the crisis.” …The last time the forestry industry told us they were in crisis, the 2003 outbreak of the mountain pine beetle, federal and BC taxpayers provided $1.3 billion in emergency funds to the BC forest industry. The outcome of these funds in central BC is a ‘blown out’ landscape, a failed forest economy, accompanied by large negative cumulative effects.

Read More

Pandemic gives us time to think of Alberta’s stunning forests

By Jason Krips, CEO, Alberta Forest Products Association
The Edmonton Journal
May 6, 2020
Category: Forestry
Region: Canada, Canada West

It’s my first Alberta Forest Week as president of the Alberta Forest Products Association. Somehow, I sense this year isn’t quite like any other. …There’s something about the solitude of this year’s Forest Week that lends itself to reflection. The thing I’m reflecting on this year is what it really is that makes Alberta’s forests so unique. …As we celebrate Alberta’s forest week, I encourage you to think about what makes our forests unique. If you can do it safely, by all means, get out and enjoy our natural spaces. And if you can’t get out there, maybe take the time to thank a forestry worker in your community — at an appropriate social distance, of course. Their work ensures sustainable forests for future generations of Albertans and helps deliver products the world needs.

Read More

How the Williams Lake flood in B.C. is linked to wildfire and deforestation

By Natalia Balcerzak
The Narwhal
May 5, 2020
Category: Forestry
Region: Canada, Canada West

The arrival of spring brought a surge of warm weather to Williams Lake, in the Cariboo region of B.C., and with it a rush of meltwater from the region’s snowpack. The resulting floods caused a local state of emergency, the contamination of water with sewage and the evacuation of 86 residences — a significant hardship for families given the COVID-19 pandemic. …The combination of warm weather and a higher-than-average snowpack in the nearby mountains serves as partial explanation for the region’s biggest flood in approximately 200 years. But experts say the role of wildfire, industrial logging and human development in flood-plains needs to be considered when trying to understand the cause of floods like the one in Williams Lake. “Wildfires, forestry, urbanization — all these land uses … tend to increase flood risk,” said Sean Fleming at the University of British Columbia.

Read More

Marchand Community Club Withdraws Camping Offer To Tree Planters

By Connor Gerbrandt
Steinback Online
May 5, 2020
Category: Forestry
Region: Canada, Canada West

The controversial decision to let tree planters from across Canada to set up camp in Marchand Community Park has been rescinded. According to Treasurer Lisa Dirks, The Marchand Community Club initially agreed to allow a group of 65 tree planters to use the green space, without realizing the issue’s contention. The reforestation crew consisted of 2 members from Nova Scotia, 4 from Quebec, 25 from Manitoba, and 38 from Ontario. Tree planting teams have camped in Marchand for several years now and, during an ordinary summer, those numbers would be largely meaningless. In the middle of a pandemic, however, nearby homeowners were strongly opposed to the idea of potential COVID-19 carriers living within their local park. …the tree planting crew will still be working in and around the area, they have just decided to set up their base camp at nearby provincial parks instead.

Read More

B.C. First Nation bans tree planting on its territory due to COVID-19 concerns

CBC News
May 5, 2020
Category: Forestry
Region: Canada, Canada West

The Nadleh Whut’en First Nation, 143 kilometres west of Prince George, B.C., is banning tree planting within its territory in an effort to keep COVID-19 out of its community.  …Chief Larry Nooski said the ban will remain in effect until they are completely satisfied the virus no longer poses a threat to the general public.  “In protecting our people, we need to take every plausible action we can,” Nooski said.  The Nadleh Whut’en has been actively working to minimize the spread of the virus within its community since the pandemic began.  On March 13, it signed an emergency order to deal with the virus. …B.C.’s Forestry Safety Advocate, Jordan Tesluk, is confident that all tree planting companies in the province will follow the new guidelines, and ensure their staff follow them. …Nooski said that at this point, he can’t foresee any modifications to tree planting operations changing his mind about the ban. 

Read More

BC Wildfire Service launches official wildfire app

By BC Wildfire Service
Government of British Columbia
May 5, 2020
Category: Forestry
Region: Canada, Canada West

The official BC Wildfire Service mobile app is now available, providing real-time wildfire information and an interactive map that users can customize to display a variety of fire-related data. The new app is one of many proactive initiatives undertaken by the BC Wildfire Service to give members of the public, media and stakeholders access to consistent, accurate and timely wildfire information throughout the province. This app complements the BC Wildfire Service’s website and social media channels. Featuring an interactive map, news and advisories, statistics and a fire reporting tool, the BC Wildfire Service mobile app is available for Apple (iOS) and Android devices and is free to download in the App Store and Google Play.

Read More

Words hide truth

Letter by Michelle Connolly, Conservation North
Prince George Citizen
May 5, 2020
Category: Forestry
Region: Canada, Canada West

In Nineteen Eighty-Four, George Orwell describes a dystopian society in which language is used to control people. In Orwell’s fictional world, vocabulary is constrained and new words are created in order to simplify and manipulate people’s understanding of the world around them. …it was only three years ago that I started hearing the word fibre used instead of forest with confusing frequency. This word appears on industry and government websites and it is used regularly by timber company representatives. Last week, Minister Doug Donaldson described the lands he is in charge of as feedstock in my community newspaper. One could be forgiven for thinking that the timber industry, with the province’s help, is attempting to replace the notion of a forest—and everything that word means —with vague abstractions. …The founding belief of modern forest management – that natural forests are a commodity – is among the root causes of declining ecosystem health in B.C.

Read More

B.C. Stumpage Deferral Leaves Small First Nations Tenure Holders Behind

BC First Nations Forestry Council
May 1, 2020
Category: Forestry
Region: Canada, Canada West

Many First Nation Woodland Licences (FNWL) and other small First Nation tenure holders are feeling abandoned by the provincial government’s recently announced support for the BC forest sector. In a press release, the BC government announced a three-month deferral on stumpage rates in an effort to support the forestry industry, as we deal with the …COVID-19 pandemic. The BC First Nations Forestry Council supports actions that maintain jobs for families and rural communities who have been hit hardest by economic downturn in the sector. Unfortunately, this industry cost savings measure does not address the viability of small First Nation tenure holders. Many First Nations have not been harvesting on their FNWL because of provincial policies that have added costs, high stumpage, and tough market conditions even before the COVID-19 pandemic. “The forest industry is an integral part of many First Nations’ economies,” explained Chief Harley Chingee of McLeod Lake Indian Band.

Read More

Audit of Cooper Creek Cedar operations released

BC Forest Practices Board
May 5, 2020
Category: Forestry
Region: Canada, Canada West

VICTORIA –  Cooper Creek Cedar is generally meeting the requirements of the Forest and Range Practices Act and the Wildfire Act on Forest Licence A30171 near Kaslo, according to a new report. The audit looked at timber harvesting, road and bridge construction, maintenance and deactivation, reforestation, wildfire protection and associated planning carried out between Sept. 1, 2017, and Sept. 26, 2019. “This is a very challenging operating area for engineering, harvesting and silviculture, with many sensitive environmental values and local public interest,”said Kevin Kriese, chair, Forest Practices Board. “In addition, a previous owner of the forest licence left a legacy of poor practices that was inherited by Cooper Creek when it took over. We were pleased to find that Cooper Creek carried out sound forest practices. Auditors specifically looked at old-growth management and caribou-habitat protection, and found Cooper Creek fully complied with legal requirements for both. 

Read More

New growth: Ontario’s new forestry strategy may adjust approach to endangered species

By Gowling WLG (law firm)
Lexology
May 4, 2020
Category: Forestry
Region: Canada, Canada East

Ontario has proposed a new forestry management strategy that aims to revive a sector that accounted for $16 billion in total revenue in 2017 but that has lost over 35,000 jobs since 2000. The strategy’s central premise is that Ontario’s Crown forests are under-utilized and their exploitation too costly. Accordingly, the strategy proposes four “pillars” to rectify this problem: Putting More Wood to Work; Improving Our Cost Competitiveness; Fostering Innovation, Markets & Talent; and Promoting Stewardship and Sustainability. Implementing first two pillars of the strategy will likely affect the regulations that govern the management of Crown forests. Indeed, the strategy identifies reducing the “regulatory burden” and removing “barriers to accessing wood” as key approaches. While the strategy does not yet describe specific legislative amendments, one of the most significant changes may be to allow forestry operations to occur without needing to comply with the Endangered Species Act, 2007 (in most circumstances).

Read More

Harvest aids for use in stands affected by the spruce budworm

By Jean-Philippe Gaudreau
FPInnovations
May 5, 2020
Category: Forestry
Region: Canada, Canada East

Forests affected by insect epidemics, spruce budworm (SBW) in this case, have a heterogeneous stand structure due in part to their defoliation level, which is not necessarily the same from tree to tree. Harvesting these stands entails additional costs stemming from lost machine productivity due to the additional time required to produce a product mix that meets mills’ specifications. In addition, recent remote sensing developments have shown great potential for detailed, accurate maps that can enhance the planning and deployment of forest operations. It is in this context that studies have been conducted on the Quebec North Shore since 2014 in order to measure lost machine productivity and develop finer mapping to guide operators to areas where stem value ensures the sustainability of operations.

Read More

New hemlock hybrid could return a beloved tree to the shade garden

By Adrian Higgins
The Washington Post
May 6, 2020
Category: Forestry
Region: United States

There are a number of broadleaf evergreens that provide structure and screening in the shady garden — hollies, camellias and boxwood all spring to mind. But there are very few evergreen conifers that fit the bill. Most crave sunlight. There is one notable exception: the hemlock. …For the past 25 years or so, hemlocks have been sorely afflicted by a little white fuzzy insect named the hemlock woolly adelgid. The adelgid arrived from East Asia 70 years ago but took a few decades to spread widely. …After almost 20 years of work, breeders at the Agricultural Research Service in Beltsville, Maryland, have produced a cross between the Carolina hemlock and the Chinese hemlock that is tolerant of the pest. They have named it Traveler and hope to get the nursery trade interested in growing the tree so it can reach consumers in a few years.

Read More

Carbon, Climate & Bioenergy

Lignin, building block of a low-carbon economy

By FPInnovations
Paper Advance
May 4, 2020
Category: Carbon, Climate & Bioenergy
Region: Canada

Scientists cracked the code for kraft lignin made from black liquor in the 1940s, but with global attention on climate change and governments around the world focused on lowering greenhouse gas emissions while supporting sustainable economies, efficient lignin production and improved quality have never been hotter topics in biorefinery circles than they are now. In Canada, the federal government earmarked more than $250 million over three years in its 2019 budget to fund innovation and technology in the forest sector. …The global lignin market is expected to reach $1 billion by 2025. In Canada, FPInnovations is the leader in lignin recovery, having led scientific research with partners that resulted in the patenting of both lignin-recovery methods in use in this country —  LignoForce System™ and the up-and-coming TMP-Bio™.

Read More