Daily News for May 01, 2024

Today’s Takeaway

Canfor reports Q1 net loss, announces acquisition of Resolute’s El Dorado lumber mill in Arkansas

The Tree Frog Forestry News
May 1, 2024
Category: Today's Takeaway

Canfor (and Canfor Pulp) reported a Q1, 2024 net loss, announced acquisition of Resolute’s El Dorado lumber mill in Arkansas. In related news: UFP Industries and Goodfellow Inc. report Q1 net losses; Interfor plans to curtail lumber production; US lumber prices ease; Canada’s GDP ticks up; and China’s timber imports recover.

In Forestry/Wildfire news: Canada questions Quebec’s caribou strategy; Alberta Minister defends West Fraser’s Bragg Creek logging plan; ENGOs say Minnesota logging endangers wildlife; UBC hosts wildfire symposium; and BC empowers citizens to impact major-project assessments.

Finally, the secret to Mexico’s forest fire success — Community and Indigenous land ownership.

Kelly McCloskey, Tree Frog Editor

Read More

Business & Politics

Interfor Announces Lumber Production Curtailments Across All Regions of North America

Interfor Corporation
April 30, 2024
Category: Business & Politics
Region: Canada, United States

BURNABY, BC — Interfor announced plans to reduce its lumber production by approximately 175 million board feet between May and September of 2024, representing just under 10% of its normal operating stance. The temporary curtailments will impact all of Interfor’s operating regions, including the US South, through a combination of reduced operating hours, prolonged holiday breaks, reconfigured shifting schedules and extended maintenance shut-downs. The curtailments are in response to persistently weak market conditions. “Benchmark lumber prices have continued to weaken since the beginning of the year, from already unsustainably low levels, as available supply has outstripped product demand,” said Ian Fillinger, Interfor’s CEO. “This action… follows Interfor’s February 15, 2024 announcement to indefinitely curtail its sawmill operations in Philomath, Oregon. The Philomath sawmill had an annual production capacity of 220 million board feet and ceased operations and shipments at the end of March 2024.

Read More

Canfor Southern Pine Grows in Arkansas with Acquisition from Resolute

Canfor Corporation
May 1, 2024
Category: Business & Politics
Region: Canada, Canada West

Vancouver, BC – Canfor Corporation is announcing that it has entered into a purchase agreement with Resolute El Dorado Inc., an affiliate of Domtar Corporation, to acquire its El Dorado lumber manufacturing facility in Union County, Arkansas. The US$73 million acquisition, including working capital, will create synergies and vertical integration opportunities given its complementary geographic fit with Canfor’s existing operations in the region. The facility, which is close to key end-markets, produces dimensional lumber and specialty wood products. Its integration will capitalize on the Company’s regional manufacturing footprint to optimize product portfolio and maximize value. Leveraging Canfor’s experience and expertise, and with an anticipated further $50 million in planned upgrades, production capacity is expected to increase to 175 million board feet per year.

 

Read More

Merritt’s mayor dangles airport lands to keep Edison Motors in city

By Paul James
Radio NL – Kamloops News
April 30, 2024
Category: Business & Politics
Region: Canada, Canada West

Chace Barber and Eric Little

The mayor of Merritt says new overtures are being offered to Edison Motors to try to keep the electric-hybrid logging truck manufacturer from leaving the city — including the possibility of a home on municipal-owned land. Mike Goetz says while he’s been acting as a facilitator between Edison and local land owners to find the space needed to fit the company’s needs, he says he’s also offered up 4 acres of refurbished land at the Merritt Airport which the company could use as a start-up option. “We are redoing our airport. We have … about 4 acres that we could lease to them to get them started,” Goetz told Radio NL. “Edison co-founder Eric Little said that would work. They’d be able to get about 25 trucks out a year.” Goetz suggests this would likely be a bridging solution to help keep Edison in Merritt while other opportunities potentially arise.

Read More

Finance & Economics

Canfor Pulp reports Q1, 2024 net loss of $2 million

Canfor Pulp Products Inc.
May 1, 2024
Category: Finance & Economics
Region: Canada, United States

VANCOUVER, B.C. – Canfor Pulp Products reported its first quarter of 2024 results. Highlights include: Q1 2024 operating loss of $16 million; net loss of $2 million; Modest uptick in NBSK pulp unit sales realizations, despite relatively subdued global pulp demand and flat
producer inventory levels; and 7% increase in pulp production quarter-over-quarter reflecting solid operational performance and reduced unplanned downtime. CPPI’s CEO Kevin Edgson, said, “This was an improved quarter for Canfor Pulp, as we benefited from generally steady global softwood pulp market conditions and solid pulp production at both NBSK mills. While we continue to navigate the external challenges facing our business in relation to the availability of economically viable fibre, both in the short and longer term, we greatly appreciate our employees’ continued focus on enhancing our operational performance and efficiency.”

Read More

Canfor Corporation reports Q1, 2024 net loss of $65 million

Canfor Corporation
May 1, 2024
Category: Finance & Economics
Region: Canada, United States

VANCOUVER, B.C. – Canfor Corporation reported its first quarter of 2024 results. Highlights include: Q1 2024 operating loss of $86 million; shareholder net loss of $65 million; Sustained pressure on global lumber markets and pricing, especially for Southern Yellow Pine; Solid earnings from Europe; US South results directly impacted by weak SYP lumber pricing; Western Canadian results remained challenging despite uplift in Western Spruce/Pine/Fir lumber pricing; Modest uptick in NBSK pulp unit sales realizations, 7% increase in pulp production quarter-over-quarter.  …CEO Don Kayne, said, “Although global lumber markets remained under pressure in the first quarter, especially Southern Yellow Pine, our global lumber footprint helped mitigate some of these market-related pressures, as our European operations delivered positive results and our Western Canadian operations benefited from an uplift in SPF pricing. ….In British Columbia, the operating conditions remain challenging, as we continue to face persistent constraints associated with a lack of economically viable fibre.”

Read More

Canada’s GDP ticks up 0.2% in February

Statistics Canada
April 30, 2024
Category: Finance & Economics
Region: Canada

Real gross domestic product (GDP) increased 0.2% in February, following a 0.5% gain in January. Services-producing industries (+0.2%) led the growth for a second month in a row, fuelled by gains in transportation and warehousing. The goods-producing industries aggregate was essentially unchanged as the mining, quarrying, and oil and gas extraction sector expanded while the utilities and manufacturing sectors contracted in February. Overall, 12 of 20 sectors increased in the month. …The manufacturing sector declined 0.4% in February, driven by declines in transportation equipment manufacturing and chemical products manufacturing. Transportation equipment manufacturing contracted 2.9% as six of seven industries comprising the subsector were down.

Read More

Goodfellow reports Q1, 2024 new loss of $108,000

Goodfellow Inc.
April 30, 2024
Category: Finance & Economics
Region: Canada, Canada East

DELSON, Quebec — Goodfellow announced today its financial results for the first quarter ended February 29, 2024. The Company reported a net loss of $108 thousand to a net loss of $211 thousand a year ago. Consolidated sales for the three months ended February 29, 2024 were $105.3 million compared to $105.9 million last year. Though under pressure from lingering inflation and cautious consumer sentiment, Goodfellow achieved a comparable overall financial performance. …With uncertain economic conditions ahead, the Company will continue to protect margins and seize opportunities for growth with new and existing customers.

Read More

Prices and Trends in the U.S. Framing Lumber Market

By Jesse Wade
NAHB.org
April 30, 2024
Category: Finance & Economics
Region: United States

Summary of the week-to-week lumber prices and plywood prices (for the week ending April 26, 2024): The Random Lengths framing lumber composite price fell 3.6% (the fifth consecutive week of declines); The price of lumber futures rose 1.2% (down 12.0% in the past month); The structural panel composite price was down 3.5% (OSB prices decreased 5.3%, Western Fir plywood prices declined 0.9% and Southern Yellow Pine plywood prices dropped 2.4%). …Softwood lumber prices have been especially volatile in recent years largely because of increased demand, rising tariffs, supply-chain bottlenecks and insufficient domestic production. ….Surveys conducted by Home Innovation Research Labs show that the average new single-family home uses more than 2,200 square feet of softwood plywood, and more than 6,800 of OSB, in addition to roughly 15,000 board feet of framing lumber.

Read More

UFP Industries reports Q1, 2024 net earnings of $121 million

By UFP Industries
Business Wire
April 30, 2024
Category: Finance & Economics
Region: United States, US East

GRAND RAPIDS, Michigan — UFP Industries announced first quarter 2024 results including net sales of $1.64 billion, net earnings attributable to controlling interests of $121 million. First Quarter 2024 Highlights include: Net sales of $1.64 billion decreased 10 percent due to a 9 percent decrease in selling prices and a 1% decrease in organic unit sales; New product sales of $124 million were 7.6% of total sales compared to 7.4% in the first quarter of 2023; Adjusted EBITDA1 of $181 million represents a decrease of 10 percent while adjusted EBITDA margin1 declined 10 basis points to 11%; and Net earnings attributable to controlling interests of $121 million represents a 4% decrease from last year and includes the favorable impact of a $9.7 million increase in an anticipated tax deduction.

Read More

China’s timber import market slowly recovering in Q1 2024

Globalwood.org
April 30, 2024
Category: Finance & Economics
Region: International

According to the latest data released by China’s General Administration of Customs, the country’s total timber imports exceeded US$3 billion in the first quarter of 2024, a decrease of 3.05% year-on-year, and a 4.2% increase in imports sequentially from the fourth quarter of 2023; the total volume of imports reached 15.56 million cubic metres, a decrease of 1.47% year-on-year, which was lower than the market’s expectations. …In March, imports increased by 4.7 per cent to 6.01 million cubic metres and the value of trade fell by 2.83 per cent to $1.254 billion. …Overall, the country’s timber imports in the first quarter of 2024 did not slip too much in total, as the import volume showed positive growth in March and the decline in January-February was lower than the market had expected, but it is still evident that the market recovery is proceeding slowly.

Read More

Wood, Paper & Green Building

48forty Solutions Leads the Industry With SFI-certified Recycled Pallets, Setting a New Standard in Sustainability

48forty
April 30, 2024
Category: Wood, Paper & Green Building
Region: United States, US East

HOUSTON — 48forty Solutions is now certified to the Sustainable Forestry Initiative (SFI) Chain-of-Custody Standard, making it the first company producing recycled pallets to achieve this certification. 48forty Solutions is one of the largest pallet management services companies in North America and this certification underscores the company’s commitment to environmental responsibility and sustainability. SFI certification ensures that all recycled pallets provided by 48forty Solutions are manufactured from recycled materials. SFI’s Chain-of-Custody Standard tracks certified forest content, non-certified forest content, and recycled forest content to the end product. “We are proud to lead the way as the first recycled pallet company in North America offering SFI-certified pallets,” said Mike Hachtman, CEO at 48forty Solutions. “This certification sets us apart in the industry and provides our customers peace of mind knowing that they are choosing pallets that are produced from recycled materials.”

Read More

First-of-its-kind Holyrood event spotlights timber and wood products industry

Scottish Construction Now
May 1, 2024
Category: Wood, Paper & Green Building
Region: International

The Scottish Timber Trade Association (STTA) brought the timber and wood products industry together at Holyrood for the first time to host a reception about driving net zero awareness and timber’s benefits to the Scottish economy. Along with three other leading timber and wood products organisations …the STTA invited more than 40 businesses operating in the timber and wood product industry supply chain across Scotland to discuss the critical role it plays in supporting the country’s drive to Net Zero. …Alex Goodfellow, CEO of Donaldson Group and STA board member said: “The reception was the first time the timber industry has gathered at Holyrood to discuss sustainability and how timber in construction supports the drive to Net Zero. Scotland excels at timber production, and we lead the UK in the use of timber frame construction, both of which support the country’s economy and sustainability goals. However, more production is needed.

Read More

Forestry

New tool empowers citizens during environmental assessments

By Ministry of Environment and Climate Change Strategy
Government of British Columbia
April 30, 2024
Category: Forestry
Region: Canada, Canada West

B.C.’s Environmental Assessment Office (EAO) has launched a new tool to engage the public during environmental assessments, empowering people to have a more meaningful impact on the decision-making process for major projects proposed throughout the province. EPIC.engage is a new engagement platform designed to improve the overall experience for people providing feedback during the public comment periods of an environmental assessment. …“Public engagement is a critical part of our environmental assessment process and of transparency. It provides valuable information about proposed major projects in BC,” said George Heyman, Minister of Environment and Climate Change Strategy. “EPIC.engage makes it easier for the public to provide information that is both helpful and might otherwise be missed during the technical process of an environmental assessment.” Providing feedback is anonymous. The platform protects the identity of commentors while verifying that are not “bots” or people seeking to undermine a project or the assessment process.

Read More

Skattebo Education Forest Hosts Forestry Intelligence Projects

By Selkirk College
Education News Canada
April 30, 2024
Category: Forestry
Region: Canada, Canada West

The Skattebo Education Forest is located on the east shore of the Kootenay River between Nelson and Castlegar, just south of the community of Glade. Classes from natural resource diploma programs visit Skattebo to participate in field trips where they collect forest, fisheries and ecosystem data and learn to interpret this information. Skattebo also provides Selkirk Innovates researchers with the perfect location to test new technology and techniques in projects that benefit local communities, industry, and the environment. Principal investigator Dr. Brendan Wilson leads this suite of forestry intelligence research. “We’re very excited about the work we’re doing in Skattebo,” says Wilson, “because it connects learning with real-world applied research.” Skattebo research projects are currently testing methods to identify individual trees in the forest, quantify common forest stand metrics, determine canopy heights, determine tree health status, identify cones for seedstock, assess understory fuels and more.

Read More

Abbotsford’s Conair Aerial Firefighting: On the front lines of the wildfire battle in B.C.

By Ben Lypka
Today in BC – Black Press
April 30, 2024
Category: Forestry
Region: Canada, Canada West

Summer is just around the corner and for much of British Columbia that now means dealing with the looming threat of wildfires. But for one Abbotsford company it is their time to shine. Conair Aerial Firefighting, located on the Abbotsford International Airport grounds, is a global leader in the battle against wildfires and continues to grow. The company boasts the third-largest fleet of any company in Canada, with 70 aircraft taking on challenging situations all across the planet. They have been used for years in places like B.C., Alaska, Alberta, Australia, France and Washington State. Conair also recently announced a new deal to work with the Saskatchewan provincial government to battle fires in that area. Conair invited the media and government officials to tour their facility on April 26 and learn more about both the production and training aspects of the company.

Read More

Joe Smith Creek cutblock auction decision delayed into May

By Connie Jordison
Coast Reporter
April 30, 2024
Category: Forestry
Region: Canada, Canada West

The decision on whether to list, further delay or forego the auction of logging rights for TA0521 (Joe Smith Creek cutblock) “will be coming in the next few weeks” according to an April 24 email from the Ministry of Forests to Coast Reporter. Documents posted on BC Timber Sales’s (BCTS) website had the auction listed to occur by March 31. In the email the Ministry stated “initial timelines for cutblock decisions were estimates only. The Ministry will take as long as is necessary to ensure the proper reviews are conducted before decisions are released.”  On April 25, Elphinstone Logging Focus (ELF) ended an over three-week protest presence in opposition to logging the site at road access to the cutblock, just off the B & K logging road in the Roberts Creek area. Spokesperson Hans Penner told Coast Reporter the group would stand down “for now,” while it would be “keeping a close eye on BCTS’s sales list.

Read More

Locals question BC Timber Sales’ future cutblock plans – Coast Reporter

By Connie Jordison
Sunshine Coast Reporter
April 30, 2024
Category: Forestry
Region: Canada, Canada West

The Sunshine Coast Streamkeepers Society, the Roberts Creek Official Community Plan Committee and Elphinstone Logging Focus and individuals have contacted BC Timber Sales (BCTS) with concerns about the agency’s plans within the Sunshine Coast business area over the next three years. Those who have not yet submitted comments have until May 4 to do so. A public BCTS notice provides links to mapping and details on proposed cutblocks, tree retention areas and road sections. Just over 1,200 hectares are slated to be included in 64 cutblocks within BCTS’s map area 1214 (which includes areas on the upper and lower Sunshine Coast) from May 2024 to May 2027. …Streamkeepers pointed out, “logging the Roberts Creek headwaters will change the natural hydrology of the ecosystem of both the forest and the numerous upper main tributaries.”

Read More

Low West Kootenay snowpack threatens drinking water drawn from creeks

By Bill Metcalfe
Terrace Standard
May 31, 2024
Category: Forestry
Region: Canada, Canada West

The reservoir at Mountain Station, which feeds all the water pipes in Nelson, is not really a reservoir. …“Our reservoir is actually the snowpack, along with Five Mile Creek and the other creeks,” Chris Johnson, the city’s manager of community planning, climate and infrastructure says. The West Kootenay snowpack is only at 72 per cent of normal this year. But a low snowpack is not necessarily a threat to Nelson’s water supply, says Johnson. “We could still have a spring and summer such that enough precipitation falls that ensures the creeks continue to run strongly throughout the dry season.” Should Nelson be worried about its drinking water supply over the long term, in light of the lower snowpacks caused by climate change? It depends on the interactions of a multitude of factors including snow, rain, temperature, the aspect (north or south facing) of the watershed and how much forest cover it has.

Read More

Environment minister defends clear-cutting of Bragg Creek-area recreation mecca

By Bill Kaufmann
The Calgary Herald
April 30, 2024
Category: Forestry
Region: Canada, Canada West

ALBERTA — Impending clear-cutting of treasured hiking and biking areas near Bragg Creek will be done responsibly, Alberta’s minister of environment and protected areas said Tuesday. But conservationists and outdoor enthusiasts say they have their doubts, and insist logging two large blocks in the West Bragg Creek and Moose Mountain areas is also economically dubious. Forestry company West Fraser said it’s going ahead in the fall of 2026 with logging what could be nearly 900 hectares of forest in a recreation zone less than an hour from Calgary. They have provincial government sanction to do so under a 20-year forestry management plan, but only under sustainable conditions, said Environment and Protected Areas Minister Rebecca Schulz. “My department is concerned with ensuring we are protecting the environment, that environment standards are upheld, that we’re looking at impacts to water, wildlife, air and biodiversity — so those are the kinds of things we look at before projects move forward,” she said. 

Related coverage in CBC: West Fraser to host open house on contentious logging plans

Read More

Wildfire Coexistence in BC: Solutions Symposium

UBC Faculty of Forestry
May 1, 2024
Category: Forestry
Region: Canada, Canada West

UBC Forestry and the Centre for Wildfire Coexistence are excited to announce the Wildfire Coexistence in BC: Solutions Symposium, in partnership with the Irving K. Barber Faculty of Science at UBC Okanagan! This Symposium will bring together British Columbia’s leading wildfire experts and practitioners to highlight the urgent need to develop a transformative vision and implementation strategy for wildfires before it is too late. We will shed light on the profound impacts of wildfires and tremendous costs to the BC population, emphasizing that the 2017‒2023 fire seasons were not an anomaly but a new and escalating reality fueled by climate change. Join us June 3-5, 2024 at UBC Okanagan in Kelowna and learn about the stark realities of the societal, health, cultural, environmental, and economic costs of wildfires across British Columbia and the actions needed now.

Read More

Federal government concerned about further delays in release of Quebec government’s caribou strategy

By Environment and Climate Change Canada
Cision Newswire
April 30, 2024
Category: Forestry
Region: Canada, Canada East

Steven Guilbeault

GATINEAU, QC – The Honourable Steven Guilbeault, Minister of Environment and Climate Change, has issued the following statement in response to the measures announced today by the Government of Quebec for the Boreal and Mountain Caribou in the Gaspé Peninsula. “I would like to thank the Government of Quebec for presenting their plans before the May 1 deadline. However, several critical elements are missing, particularly the Quebec government’s August 2022 commitment to reduce the rate of disturbance in caribou habitat so that at least 65 percent of the territory for each caribou population is undisturbed. In addition, today’s announcement does not mention several caribou populations. The Government of Quebec must publish a strategy for all Boreal Caribou populations in Quebec, including immediate interim measures.”

Read More

Washington State University teams with community colleges on forests

Farm Progress
May 1, 2024
Category: Forestry
Region: United States, US West

Washington State University is working with four local community colleges to improve tree canopy cover in several urban areas throughout the state. The five-year project, designed to increase resilience amid a changing climate, is supported by a nearly $1.8 million Inflation Reduction Act grant from the USDA Forest Service Urban and Community Forestry Program. WSU researchers will collaborate with faculty and students to create thriving urban forests in neighborhoods near those schools. …Partners at the U.S. Forest Service (USFS) hope the project will result in a more diverse and skilled workforce while inspiring colleges throughout the country to embrace similar approaches. …“A lot of these students are not necessarily on environmental science career tracks,” Joey Hulbert, at the WSU Puyallup Research & Extension Center and the project’s principal investigator said. “It’s a good opportunity to inspire them to work with trees and reach them before they really decide on a career path.”

Read More

State and federal officials are endangering wildlife, misusing federal grants for logging

By Robert Bryant and Gretchen Mehmel
The Minnesota Reformer
April 30, 2024
Category: Forestry
Region: United States, US West

Robert Bryant

Gretchen Mehmel

Senior managers at both the Minnesota Department of Natural Resources and the U.S. Fish and Wildlife Service should be held  to account for allowing the misuse of federal grants to facilitate logging in Minnesota’s wildlife management areas and aquatic management areas. Both agencies cooperated to fund and allow aggressive logging, which has devalued habitat and undermined the legitimacy of federal grants. It seems the only accountability that will work is to step outside the respective agencies’ control systems and go public, while relying on the Office of Legislative Auditor to do its work. The OLA recently announced a special review of DNR’s oversight of wildlife management areas. …But there still hasn’t been any substantive changes in policy… The solution is to stop treating wildlife management areas like conventional state forest — we need a timber harvest system for WMAs that considers the best interest of the critters, and not just profit-seeking timber companies.

Read More

18% of European Timber Importers Are Not Aware of Incoming Deforestation Legislation

iov42
April 30, 2024
Category: Forestry
Region: International

LONDON — New research from iov42, a technology company specialising in digital identity, trust, and data integrity has revealed that almost one in five (18%) European timber importers are not aware of any incoming deforestation legislation, despite the fact that regulations like the EU Deforestation Regulation (EUDR) and UK Environment Act will imminently become law. Despite the uncertainty around deforestation regulation timings, more than a quarter (27%) of respondents claim to be fully prepared, although there is a marked difference in levels of preparedness from country to country. 44% of UK respondents feel somewhat prepared, whereas in Belgium almost a quarter (24%) have not even commenced preparations.  iov42’s 2024 Deforestation Regulation Readiness Survey is based on responses from those with active involvement in importing timber and related commodities in the UK, Germany, France, Belgium, Austria, and Italy. All of whom will be or are affected by existing and incoming regulation designed to combat deforestation… 

Read More

Fewer wildfires, great biodiversity: what is the secret to the success of Mexico’s forests?

By Linda Farthing
The Guardian
May 1, 2024
Category: Forestry
Region: International

More than half of the country’s forestry is in community and Indigenous hands – and from CO2 absorption to reducing poverty the results are impressive. Dexter Melchor Matías works in the Zapotec Indigenous town of Ixtlán de Juárez, about 1,600ft (490 metres) above the wide Oaxaca valley in Mexico, where community forestry has become a way of life. Like him, about 10 million people across the country live in and make a living from forests, with half of that population identifying as Indigenous. As average temperatures soar around the world and wildfires rage across the Americas, in Mexico, where more than a quarter of the country suffers from drought, the number of wildfires has remained steady since 2012. More than half of Mexico’s forests are in community and Indigenous hands, a situation unlike anywhere else in the world, which, according to experts, helps explain why the country has done better at controlling large fires.

Read More

Ash dieback plan can ‘restore eroded confidence’ in forestry

By Charles O’Donnell
Agriland
April 30, 2024
Category: Forestry
Region: International

The Ash Dieback Action Plan, which received cabinet approval today (Tuesday, April 30) is a “positive step” to restoring the “eroded confidence” of farmers in forestry, according to one senator. Tim Lombard said that the supports announced today may be a “catalyst to drive the Forestry Programme forward”. A €5,000/ha payment will be provided to affected forest owners, separate from the clearing and replanting grants. …Lombard, the vice-chairperson of the Joint Oireachtas Committee on Agriculture, Food and the Marine, said: “The committee has pushed hard for a resolution for impacted farmers and I’m pleased that we finally have a significant package in place “We’ve seen the impact of ash dieback in plantations across the country. We all have neighbours hit by this. It’s been horrendous for those farmers affected,” he added.

Read More