Daily News for May 06, 2024

Today’s Takeaway

Lumber & panel prices trend down, pulp continues to move up

The Tree Frog Forestry News
May 6, 2024
Category: Today's Takeaway

ERA’s Kevin Mason opines on lumber’s dire month, OSB’s run, and pulp’s upward trend. In related news: the DIY slowdown adds to lumber’s woes; the latest on Roseburg’s mill upgrades; Q1 reports by BlueLinx and Taiga Building Products; and Drax looks to build two new wood pellet plants in California.

In other news: firefighter health and wellbeing updates by the US Dept of Agriculture and BC’s Wildfire Service; how Canada is preparing for the wildfire season; the US Forest Service released new data from its Climate Action Tracker; Oregon employs AI to study the marbled murrelet; and how the US Endangered Species Act can obstruct forest management.

Finally, the multimillion-dollar fight over Washington state’s cap-and-invest program.

Kelly McCloskey, Tree Frog Editor

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Opinion / EdiTOADial

We came into 2024 with high hopes but how things have changed: ERA Analysis

By Kevin Mason, Managing Director
ERA Forest Products Research
May 3, 2024
Category: Opinion / EdiTOADial
Region: Canada, United States

Kevin Mason

We came into 2024 with high hopes: The COVID pandemic and its aftereffects were finally confined to the rearview mirror; energy shocks following Russia’s invasion of Ukraine were behind us; Fed rate cuts were seemingly imminent; and, after a year of “hurry up and wait,” the next U.S. housing up-cycle would commence. How things have changed! Expectations around Fed rate cuts have shifted dramatically in recent months, reflecting myriad negative macroeconomic developments. …If we enter a period of stagflation, wood products producers would be one of the more obvious losers in the Forest Products sector. Elevated interest rates stymie housing demand, negatively impacting consumption. Timber REITS will also remain out of favour with investors in a higher-interest-rate environment, while sluggish demand for housing/lumber/panels will hit timber demand. For pulp producers, challenging economic conditions in China are a bigger near-term risk, but stagflation would hurt demand for all pulp end users.

It’s been a dire month for North American lumber markets, and, as has been the trend year-to-date, Southern Yellow Pine (SYP) continues to underperform S-P-F. SYP 2×4 prices slumped to $285 last week, their lowest level since November 2011. We suspect that even in the low-cost U.S. South, many sawmills are losing money at these prices. …For S-P-F, 2×4 prices are now in freefall after holding up relatively well through the first three months of the year. Prices have declined by $81 in the past four weeks and are trading at just $382 today. Prior sawmill downtime announcements, coupled with steady demand from new residential construction, supported S-P-F prices through Q1; however, this supply/demand balance has changed in recent weeks. …The incredible run in OSB appears to be over; prices in all major producing regions posted significant ($20–40) declines last week. …Despite not experiencing the same pricing uplift as OSB over the past several months—plywood pricing has been steady, if unspectacular—plywood prices are also moving lower, and the rate of decline accelerated markedly last week.

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Business & Politics

Progress Update on Roseburg’s New Dillard MDF and Component Plants

Roseburg Forest Products
May 3, 2024
Category: Business & Politics
Region: United States, US West

DILLARD, Oregon — One year after announcing a $700 million investment in its manufacturing operations in Southern Oregon, Roseburg Forest Products shares that construction at two new plants in Dillard is well underway. Dillard Components will be the first of the new plants to come online, with startup expected in late summer 2024. The plant will convert specialty medium density fiberboard (MDF) panels manufactured at Roseburg’s MDF plant in Medford. …Dillard MDF will use wood residuals from Roseburg’s local mills and other regional suppliers to manufacture standard MDF panels, as well as thin high density fiberboard (HDF). …Once fully operational, the two new plants will employ approximately 120 people. The $700 million investment also includes improvements at Roseburg’s plywood plants in Riddle and Coquille, Oregon.

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Finance & Economics

Slowdown in do-it-yourself home projects weakens lumber markets

By Brent Jang
The Globe and Mail
May 5, 2024
Category: Finance & Economics
Region: Canada, United States

A slowdown in home repair and remodelling projects has weakened lumber markets, the latest setback for Canadian sawmills struggling financially with depressed lumber prices. Lower-than-expected housing starts in Canada and the United States have also eroded lumber demand. On the supply side, lumber producers in British Columbia that have coped for years with decreased access to timber in the province will be facing even tighter constraints. “Everybody is holding their breath a bit because of this kind of perfect storm,” Linda Coady, president of the BC Council of Forest Industries said. …The impact of lower lumber prices already has been severely felt at a smaller company, Surrey, B.C.-based Teal-Jones Group. …Larger producers will be able to withstand the slump in lumber prices, but smaller companies will find it more difficult, said Ric Slaco, an industry consultant and former chief forester at Interfor. [to access the full story a Globe and Mail subscription is required]

 

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Taiga reports Q1, 2024 net earnings of $12.8 million

By Taiga Building Products Ltd.
Cision Newswire
May 3, 2024
Category: Finance & Economics
Region: Canada, Canada West

BURNABY, BC — Taiga Building Products reported its financial results for the three months ended March 31, 2024 and 2023. The Company’s consolidated net sales for the quarter ended March 31, 2024 were $393.6 million compared to $408.5 million over the same period last year. The decrease in sales by $14.9 million or 4% was largely due to selling lower volumes of commodity products. …Net earnings for the quarter ended March 31, 2024 decreased to $12.8 million from $13.5 million over the same period last year primarily due to decreased gross margin. EBITDA for the quarter ended March 31, 2024 was $19.8 million compared to $22.5 million for the same period last year.

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BlueLinx reports Q1, 2024 net income of $17 million

Bluelinx Holdings Inc.
May 3, 2024
Category: Finance & Economics
Region: United States, US East

ATLANTA — BlueLinx, a U.S. wholesale distributor of building products, reported financial results for the three months ended March 30, 2024. Highlights include: Net sales of $726 million; Net income of $17 million;  Adjusted net income of $19 million; and Adjusted EBITDA of $39 million, or 5.3% of net sales, which includes a net benefit of approximately $7 million related to import duties from prior periods. “We are off to a solid start to 2024, despite ongoing deflationary pressures associated with our specialty business and January weather conditions that adversely impacted volumes. We are pleased with the results for the quarter as volumes recovered and we maintained strong margins in specialty and structural products,” said Shyam Reddy, President, and CEO of BlueLinx.

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Forestry

Environmental activists will be sentenced for roles in Nanaimo Hwy. blockades and protests

By Jordan Davidson
Nanaimo News Now
May 3, 2024
Category: Forestry
Region: Canada, Canada West

Melanie Joy Murray and Howard Gerald Breen

NANAIMO — A judge disagreed with the defence arguments from two environmental activists, who said they had no choice but to break the law to draw attention to the dangers of climate change. Judge Ronald Lamperson rejected the arguments in cases involving Howard Gerald Breen, 70, and Melanie Joy Murray, 48, who were indicted on multiple charges related to highway blockades and other protests in Nanaimo from late 2021 to early 2022. During the Friday, May 3 ruling in Nanaimo provincial court, Lamperson said he disagreed with the ‘defence of necessity’ argument, with the defendants claiming their actions were justified due to the severe threat of climate change. …Breen, co-founder of the environmental activism group Extinction Rebellion Vancouver Island, staged a hunger strike in April to draw the attention of the Ministry of Forests related to the government’s strategy for old-growth forests.

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How western Canada is preparing for wildfire season

National Post
May 5, 2024
Category: Forestry
Region: Canada, Canada West

The Canadian wildfire season has already begun, and western provinces are preparing for 2024 to be potentially more devastating than last year, which shattered records with 18.5 million hectares of land burned. The fears of a brutal fire season — heightened by a lack of snowfall and rain — has also created demand for new community initiatives and provincial programs in several western provinces. …Alberta government officials … have been trying to prepare for the possibility of another bad fire season. In February, the province announced the official start of fire season 10 days earlier than normal. …Last week, British Columbia announced a burn ban that covers vast swathes of the province’s interior for the next five months. While B.C. has yet to ban campfires, the open burning of debris and leaves is prohibited. …Saskatchewan is planning to purchase four re-purposed air tanker planes, at the cost of $187 million, to help fight fires across the province.

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Endangered Species Act must be revised to reduce wildfire threats in forests

By Robert Longatti, co-founder of Citizens for Sensible Forest Management
The Fresno Bee in Yahoo! News
May 3, 2024
Category: Forestry
Region: United States, US West

Bob Longatti

The management of cherished US forest lands has been mired in a complex web of regulations and legal battles, often driven by well-intentioned but misguided efforts to protect endangered species. It’s time to address this issue by amending the Endangered Species Act to prevent litigious groups from unnecessarily delaying or canceling vital forest management plans. …Citizens for Sensible Forest Management, a nonpartisan citizens group formed during the Creek Fire, has partnered with the Property and Environment Research Center of Montana. Research conducted by PERC sheds light on the need for amending the ESA in the context of forest management. PERC’s work highlights how the act’s implementation has frequently obstructed responsible forest practices that are essential for maintaining ecological health, reducing wildfire risk and safeguarding human communities. …By reforming the ESA, we can strike a better balance between conservation efforts and responsible forest management.

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Oregon researchers use AI to study threatened coastal seabirds

By April Ehrlich
Oregon Public Broadcasting
May 5, 2024
Category: Forestry
Region: United States, US West

Artificial intelligence tools are helping Oregon wildlife researchers study hard-to-reach threatened species like the marbled murrelet. Researchers with Oregon State University and the U.S. Forest Service collected millions of hours of audio from federal forests in Washington and Oregon between 2018 and 2022. “We cannot physically review all the audio data that we collect,” said OSU College of Forestry doctoral student Matthew Weldy. “So we are reliant on computational tools to filter this data set and find sounds of interest.” To comb through that colossal amount of data, Weldy and other researchers developed a machine learning algorithm to identify the call patterns of marbled murrelets. Their findings — published this month in the Ecological Indicators journal — could help biologists understand which areas are most important to these enigmatic seabirds, thereby improving habitat conservation efforts.

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No timber harvesting in Mendocino County’s Jackson State Demonstration Forest in 2024

By Frank Hartzell
The Mendocino Voice
May 4, 2024
Category: Forestry
Region: United States, US West

CASPAR, California — With one exception, all the usual sounds of spring have returned to the Jackson Demonstration State Forest in Caspar. …But there is no sound of chainsaws and falling trees, and there is no chance of more tree-cutting for profit until 2025, possibly even later. A timber harvest plan that uses pre-burning and other environmentally favored techniques will be on the agenda of the Jackson Advisory Group (JAG) on May 8. Even if approved, that harvest would not begin before 2025. …The meeting will feature a new chairperson, Amy Wynn, and several members who have been reappointed. …The agenda includes a discussion of revamping the JAG charter, which could result in restructuring the JAG to solve the most vexing problem the advisory group faces, that of co-management. California Governor Gavin Newsom has pushed for Tribes to be part of managing the forest resources. 

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BurnBot firefighting technology prepares 22 acres in Incline

By Brenna O’Boyle
Tahoe Daily Tribune
May 3, 2024
Category: Forestry
Region: United States, US West

INCLINE VILLAGE, Nev. – Above Matchless Court in the First Creek drainage, new technology is chipping away at the vegetation and trees ecologically, efficiently, and safely. Two remote-controlled BurnBots RCU75s showcased precision mastication Wednesday as part of a demonstration hosted at the Parasol Tahoe Community Foundation by the Tahoe Fund and regional partners including the North Lake Tahoe Fire Protection District, Tahoe Fire and Fuels Team, Tahoe Regional Planning Agency, Tahoe Truckee Community Foundation, and the Martis Fund. “This thing can do 10 times what hand crews can do,” said BurnBot CEO Anukool Lakhina. “BurnBots mission is to make destructive wildfires a thing of the past.” …The $50,000 project will remove 75% of the vegetation on 22 acres in 2 to 3 days. This would have taken 1 hand crew or 20 firefighters 15 days. …BurnBot was created to complement human efforts and address the needed scale of fuels reduction and management, according to BurnBot’s website. 

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Can ‘two-eyed seeing’ save Northwest forests?

By Kendra Chamberlain, Columbia Insight
The Columbian
May 4, 2024
Category: Forestry
Region: United States, US West

Land management in the United States will need a paradigm shift to survive climate change and a legacy of mismanagement. A team experts from four tribes, 10 universities, the Forest Service and a handful of environmental firms across North America are calling for a “two-eyed seeing” approach to land management. This means genuine collaboration between Indigenous and Western governments. The policy recommendations were outlined in a report released April 10. The report was co-led by Oregon State University professors Cristina Eisenberg and Michael Paul Nelson, and fire ecologists Susan Prichard of the University of Washington and Paul Hessburg of the U.S. Forest Service’s Pacific Northwest Research Station. Forest management in the United States is at a crucial juncture, and agencies such as the Forest Service are more open to integrating Indigenous knowledge and practices of land stewardship. …In the Pacific Northwest, two-eyed seeing in part addresses misconceptions about fire and conservation. 

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Embracing Forests for the Future at the 2024 Sustainable Forestry Initiative annual conference

By Nadine Brock, SFI
National Association of State Foresters
May 3, 2024
Category: Forestry
Region: United States, US East

Collaboration is critical to ensure the sustainability of our planet. People and organizations are seeking solutions that ensure our forests, through responsible management, make positive contributions to the long-term health of people and the planet. The 2024 Sustainable Forestry Initiative (SFI) Annual Conference, taking place in Atlanta, Georgia, from June 4-7, embraces this potential under the theme “Forests for the Future: Nature and Community Grown Solutions.” Join us in celebrating how far we’ve come in promoting sustainable forestry while setting a vision for creating an even better tomorrow through proactive forest stewardship today. From forestry professionals and government policymakers to Indigenous communities, conservationists, and researchers, everyone has a role to play in the future of our forests. …The agenda aligns with the top priorities of state forestry agencies, such as climate resiliency, biodiversity conservation, community engagement, and more.

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Forests play a pivotal role in addressing the triple planetary crisis

United Nations
May 3, 2024
Category: Forestry
Region: International

Peter Gondo

Forests cover nearly one-third of the earth and are critical in global efforts to address the triple planetary crisis. Ahead of the UN Forum on Forests and the 4th International Conference on Small Island Developing States this month, we asked UN DESA’s Peter Gondo about the Forum, the role of forests in small islands and why we need healthy forests for our survival. “Forests play a pivotal role in addressing the triple planetary crisis of climate change, biodiversity loss, and pollution. When forests are healthy and well managed, they provide a myriad of ecosystem services, from regulating climate and providing habitat for 80% of terrestrial biodiversity, to cleaning and filtering our air and water and providing livelihoods and food security. Investments in forest-based solutions offer a cost-effective way to generate multiple biodiversity and social benefits. The triple planetary crisis is interconnected, and forests offer integrated solutions to address all three of the crises,” said Gondo.

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Carbon, Climate & Bioenergy

The U.S. Department of Agriculture’s Forest Service announces milestones in climate action

By the Forest Service
US Department of Agriculture
May 3, 2024
Category: Carbon, Climate & Bioenergy
Region: United States

WASHINGTON – The U.S. Department of Agriculture’s Forest Service released new data today that shows how the agency has made progress in mitigating the impacts of climate change. Published in the Forest Service Climate Action Tracker, it represents a significant milestone in the agency’s efforts to keep forests healthy. The agency is also updating its directives to clarify that Indigenous Knowledge can be considered as best-available science in land management decisions that guide forest management, restoration, and climate resilience actions. …The Climate Action Tracker includes nationwide data and shows how the Forest Service has reached goals from its Climate Adaptation Plan for increasing the amount of climate vulnerability information in its environmental analyses. …Secretary Vilsack also directed the Forest Service to review policies for agency work that involves water, wildlife, wood product innovation, outdoor recreation, and more — with a focus on climate. 

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UK’s Drax targets California forests for two major wood pellet plants

By Justin Catanoso
Mongabay
May 6, 2024
Category: Carbon, Climate & Bioenergy
Region: United States, US West

CALIFORNIA — Golden State Natural Resources (GSNR), a California state-funded nonprofit focused on rural economic development, along with the UK’s Drax, have signed an agreement to move ahead on a California project to build two of the biggest wood pellet mills in the US. The mills, if approved by the state, would produce 1 million tons of pellets for export annually to Japan and South Korea. The pellet mills would represent a major expansion of U.S. biomass production outside the U.S. Southeast, where most pellet making has been centered. GSNR promotes the pellet mills as providing jobs, preventing wildfires and reducing carbon emissions. California forest advocates say that cutting trees to make pellets —partly within eight national forests — will achieve none of those goals. 

Related coverage: GSNR is taking steps to advance its proposed project that would improve the resiliency of California’s forestlands

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The multimillion-dollar fight over Washington state’s cap-and-invest program

By John Strang
Cascade PBS
May 3, 2024
Category: Carbon, Climate & Bioenergy
Region: United States, US West

WASHINGTON — Bolstered by an almost $5 million war chest, supporters of Washington’s cap-and-invest program have begun their efforts to keep the state’s carbon pricing system, which is facing a November recall referendum. …The coalition hoping to repeal the state’s new cap-and-invest program, Let’s Go Washington, has raised just over $8 million so far, but most of that came as $5 million in loans from the instigator of the initiative. …The cap-and-invest program has already brought about $2 billion into the state budget, mostly to support climate change mitigation, health and construction programs. During this year’s legislative session, lawmakers allocated more than $800 million of those dollars to do things like buy electric school and transit buses, install electric vehicle charging stations, support salmon recovery and coastline restoration, buy forest land and restore landscapes destroyed by wildfires. If the initiative passes, that new source of cash would dry up.

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Health & Safety

New Report Provides Overview of Bow-Tie Analysis of Working at Heights in Wood Products Manufacturing

By Gordon Murray and Kayleigh Rayner Brown
The Wood Pellet Association of Canada
May 2, 2024
Category: Health & Safety
Region: Canada

The Wood Pellet Association of Canada (WPAC) recently hosted a 15-minute safety huddle on the outcomes of a project applying bow-tie analysis to assess working at heights hazards. The Manufacturing Advisory Group of the BC Forest Safety Council sponsored the work. Working at heights in wood pellet plants and sawmills poses a risk to workers performing routine and non-routine maintenance, completing rail car loading, and entering and exiting large mobile equipment. These tasks present the risk of falls, which can lead to injuries, fatalities, and business interruption. A bow-tie analysis workshop was undertaken to evaluate working at heights hazards, the safeguards in place, and identify gaps and trends to enhance safety. Opportunities for improvement include worker and supervisor training, safety culture and hazard awareness, as well as reducing reliance on procedural controls. Fall protection systems and rescue plans were identified as key safety measures.

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Firefighter mental health a priority, wildfire service says

By Courtney Dickson& Shelley Joyce
CBC News
May 4, 2024
Category: Health & Safety
Region: Canada, Canada West

BRITISH COLUMBIA – Alex Lane’s wildland firefighting career began in May 2015, and on her second day, Lane was called to a large, complex fire. …”I really enjoyed the pace, the demand, the challenge,” she said. But during a slower fire season few years later, her mental health took a turn and she started having panic attacks at work. …Now, the B.C. Wildfire Service and other agencies are working to make sure wildland firefighters have mental health supports ready and available year round. Lane’s experience is not unusual, according to David Greer, B.C. Wildfire Service director of strategic engagement and partnerships. …Greer said the wildfire service is trying to be proactive about staff mental health; in spring 2023, the province launched an online training program for firefighters to help with managing stress and anxiety.

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Federal Wildland Firefighter Health and Wellbeing Program update

By Deputy Chief John Crockett
US Department of Agriculture
May 3, 2024
Category: Health & Safety
Region: United States

John Crockett

Wildland firefighters face fire years that are longer and more destructive than ever before. They experience firsthand the impacts these incidents have on the American people. Their jobs are physically demanding. The environments where they work are full of hazards. At the same time, they spend extended time away from friends and family. This can be socially isolating and cause difficulties in marriages, friendships and relationships with children and other family members. All these factors contribute to significantly higher rates of mental, behavioral and physical health issues. We are aware of that and are committed to taking care of our employees. During next week’s observance of Employee Wellbeing Week, U.S. Public Health Service Commander Dana Lee, Wildland Firefighter Behavioral Health Program, will provide an overview of the program’s mission, services and initiatives aimed at supporting the mental health and emotional resilience of wildland firefighters.

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Families of construction workers killed in Charlotte fire file lawsuits against companies involved in project

By Doug Coats
CBS 17
May 3, 2024
Category: Health & Safety
Region: United States, US East

CHARLOTTE, North Carolina — The families of the two men killed in the SouthPark fire last May filed a lawsuit against the development and construction companies involved in the project. The wrongful death lawsuit was filed Thursday. In it, the estates of construction workers Demonte Sherrill and Reuben Holmes claim “willful and wanton disregard and violations” of the laws and requirements regarding fire prevention and fire safety on construction sites. The May 18, 2023, five-alarm fire took place on Liberty Row Drive. …Developer Mill Creek is accused of understanding that building “podium-style apartments” using primarily wood construction over a concrete podium were vulnerable to fire during construction, yet still proceeded using that approach. …The developers also are accused of not establishing a warning system to alert workers of a fire or another emergency. …There were reportedly fire sprinklers installed at the site, but… the system was not operational at the time of the fire. 

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