Daily News for January 11, 2023

Today’s Takeaway

West Fraser to curtail its Perry, Florida sawmill

The Tree Frog Forestry News
January 11, 2023
Category: Today's Takeaway

Citing profitability challenges, West Fraser to indefinitely curtail its Perry, Florida sawmill. In related news: Aspen Planers in Merritt, BC remains closed; Kamps Pallets completes acquisition of John Rock Inc; and Paper Excellence donates to the Canadian Red Cross. On the Market front: US housing outlook remains grim despite improvement in homebuyer sentiment; and wood pellet exports and printing-writing paper shipments decreased in November. 

In Forestry/Climate news: US legislation seeks to improve forest collaboration with private landowners; Premier Eby to address BC Natural Resources Forum; an old-growth rally is planned for Victoria, BC; forest buffers help manage water in North Carolina; and researchers say climate change is a key driver in dead plant decomposition.

Finally, the USDA announces Paper & Packaging and Christmas Tree Promotion board appointments; and Jessica Gurevitch is the new head of Forestry at Purdue College.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

West Fraser Timber to indefinitely curtail Florida sawmill

Canadian Press in The Kelowna Daily Courier
January 10, 2023
Category: Business & Politics
Region: Canada, United States

VANCOUVER – West Fraser Timber Co. Ltd. says it will indefinitely curtail its Perry Sawmill in Florida later this month due to high fibre costs and softening lumber markets.  The Vancouver-based company said in a press release that the indefinite curtailment will affect around 126 employees.  However, West Fraser says it will try to mitigate the effect on workers by providing work opportunities at other West Fraser operations.  It says the curtailment will reduce the company’s U.S. lumber production by 100 million board feet.  The company says high fibre costs and a low-price commodity environment have impaired its ability to operate the sawmill profitably.

Additional coverage in the West Fraser Timber Press Release: West Fraser Announces Indefinite Curtailment of Perry Sawmill

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Paper Excellence announces donation of $50,000 to the Canadian Red Cross

Paper Excellence Canada
January 9, 2023
Category: Business & Politics
Region: Canada, Canada West

Richmond, BC – Paper Excellence Canada announced today it has donated $50,000 to the Canadian Red Cross. A majority of the donation will support ongoing emergency management operations in British Columbia and Saskatchewan, while a donation of $20,000 was made earlier this fall to Nova Scotia Red Cross in response to Hurricane Fiona. Paper Excellence Canada currently has operations in British Columbia, Saskatchewan, and Nova Scotia. …Since 2021, Paper Excellence Canada has supported communities across Canada with over $1.7 million in community donations and community investment initiatives, including large donations to Pacific Salmon Foundation, Take A Hike Foundation, INDSPIRE, Vancouver Island University, Saskatchewan Polytechnic, and more.

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Aspen Planers Merritt remains shut down, reopening date uncertain

By Marius Auer
Merritt Herald
January 11, 2023
Category: Business & Politics
Region: Canada, Canada West

One of Merritt’s major economic powerhouses currently lies dormant, closed by a lack of timber supply and government approval of timber harvesting. Aspen Planers, owned by Surrey based AP Group, shut down their Merritt lumber mill at the beginning of December without an official reopening date. With no cutting permits having been issued since the beginning of the two Merritt sites’ closure, senior officials with AP Group say the closure could drag on to the end of January, or even longer.  …AP Group officials told the Herald in December that they were frustrated with the “unnecessarily complicated and opaque” process for obtaining a cutting permit. This fact has not changed, with Aspen saying the key issue is still a lack of supply and provincially approved cutting permits.

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USDA Announces Appointments to the Christmas Tree Promotion Board

US Department of Agriculture
January 10, 2023
Category: Business & Politics
Region: United States

The U.S. Department of Agriculture today announced the appointment of three members to serve on the Christmas Tree Promotion Board. The appointees will serve three-year terms beginning immediately, to Dec. 31, 2025. Members appointed or reappointed are:

  • Producer Region #1 – Western: Michael Jones, Beaverton, Oregon
  • Producer Region #2 – Central: Derek Ahl, Black River Falls, Wisconsin
  • Producer Region #3 – Eastern: Charles E. Fowler, Sylva, North Carolina

The 12-member board is comprised of 11 producers representing production in the eastern, central, and western regions of the United States, and an importer member.

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USDA Announces Appointments to the Paper and Packaging Board

US Department of Agriculture
January 9, 2023
Category: Business & Politics
Region: United States

The U.S. Department of Agriculture today announced the appointment of three members to serve on the Paper and Packaging Board. The appointees from the South Region will serve three-year terms beginning immediately to Dec. 31, 2025, and one appointee from the Rest of the U.S. Region will serve a one-year term beginning immediately to Dec. 31, 2023. Members appointed are:

  • Santiago Arbelaez, Memphis, TN (South Region)
  • Alpa Sutaria, Atlanta, GA (South Region)
  • Jonathan A. Kraft, Foxborough, MA (Rest of U.S. Region)

The Paper and Packaging Board has 8 members, including 7 domestic manufacturers and one importer. Members can serve up to two consecutive three-year terms.

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Jessica Gurevitch appointed new forestry and natural resources department head

Purdue University
January 10, 2023
Category: Business & Politics
Region: United States, US East

Jessica Gurevitch

WEST LAFAYETTE, Ind. — Jessica Gurevitch has joined the Purdue College of Agriculture as the new department head for Forestry and Natural Resources. She will also join the department’s faculty as a professor. After earning her bachelor’s degree in biological sciences/ecology, evolution and systematics from Cornell University and her PhD in ecology and evolutionary biology from the University of Arizona, Gurevitch completed a three-year postdoctoral fellowship at the University of Chicago. Gurevitch joined Stony Brook University faculty, where she was appointed a distinguished professor in 2018. …“I love being a part of a state university,” she said. “My education and academic career have been spent in public institutions, and it’s something I’m very proud of. I have enjoyed that about Stony Brook, and I am very enthusiastic about being at Purdue and becoming a Boilermaker!” 

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Wood pallet manufacturer Kamps Inc. completes acquisition of John Rock Inc.

Kamps Pallets
January 9, 2023
Category: Business & Politics
Region: United States, US East

GRAND RAPIDS, Michigan – Kamps, a national pallet organization, is pleased to announce the strategic acquisition of the business of John Rock, Inc., a multi-entity organization based in Coatesville, Pennsylvania. Specializing in the complete value chain management of the pallet manufacturing process, the Rock possesses industry-leading capabilities in lumber milling, logistics, and new and recycled pallet manufacturing. The transaction marks Kamps’ 15th strategic acquisition since 2019 when Freeman Spogli acquired majority ownership of the Company. …The combination of the Rock’s world-class new pallet manufacturing operations with Kamps’ pallet recycling capabilities creates a one-of-a-kind, full service pallet solution. …The addition of the Rock grows Kamps’ national presence to 60 company-owned locations, supported by over 8,000 trailers and over 4,000 employees.

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Finance & Economics

What’s Ahead for the U.S. Housing Market?

By Susan Wachter
Knowledge at Wharton
January 10, 2023
Category: Finance & Economics
Region: United States

Susan Wachter

The U.S. housing market last year bore the brunt of higher mortgage rates that rode spiraling inflation in the broader economy, but that will change this year, according to Susan Wachter, Wharton professor of real estate and finance. “The Fed is using the housing market as a fulcrum to slow overall activity and get the inflation rate down,” she said. “When they succeed in doing that, housing and rents are likely to come down most and fastest, and that may get us out of the inflation bubble sooner than we think in 2023.” Until that happens, “the housing market for sure is doomed; it’s a sinking ship,” said Wachter. Housing supply is also running low because new housing construction is declining in response to tepid demand. …Demand is running low… because people are wary of an imminent economic recession. …The outlook for 2023 and beyond, however, is not hopeless.

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US housing price slowdown continues as mortgage financing poses headwind

By Vaibhav Chakraborty and Ronamil Portes
S&P Global
January 10, 2023
Category: Finance & Economics
Region: United States

The 20-City Composite Index posted a year-over-year increase of 8.6%, compared to 10.4% in the previous month, even as housing prices continued to slow down in all 20 cities covered in the index. The 10-City Composite Index increased 8.0% year over year, weaker than the 9.6% rise seen in September 2022. Miami continued to lead the way as the biggest gainer across all 20 covered cities, with an annual home price increase of 21.0%. Tampa, Fla., was second on the list, with a 20.5% year-over-year price gain. Charlotte, N.C., took the third spot with a 15.0% increase in home prices during October. U.S. homebuilder stocks remained under pressure with the median one-year total return recording a negative 26.7% as of Jan. 4.

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US wood pellet exports fall to 694,200 tons in November

USDA Foreign Agricultural Service
Biomass Magazine
January 6, 2023
Category: Finance & Economics
Region: United States

The U.S. exported 694,199.7 metric tons of wood pellets in November, down from 750,989.2 metric tons in October and 764,259.6 metric tons in November 2021, according to data released by the USDA Foreign Agricultural Service on Jan. 5. The U.S. exported wood pellets to approximately 17 countries in November. The U.K. was the top destination at 442,194.8 metric tons, followed by the Netherlands at 143,207.2 metric tons and Japan at 54,844 metric tons. The value of U.S. wood pellet exports was at $120.94 million in November, down from $132.21 million the previous month, but up from $102.06 million in November 2021. Total U.S. wood pellet exports for the first 11 months of 2022 reached 8.06 million metric tons at a value of $1.39 billion, compared to 6.65 million metric tons exported during the same period of 2021 at a value of $949.99 million. [END]

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Easing Mortgage Rates and Home Prices Provide Slight Boost to Homebuyer Sentiment

Fannie Mae
January 9, 2023
Category: Finance & Economics
Region: United States

WASHINGTON, DC – The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased 3.7 points in December to 61.0, but the index remains only slightly above its all-time low set in October. Three of the index’s six components improved month over month, including those associated with homebuying conditions, mortgage rate outlook, and job security. Only 21% of respondents believe it’s a good time to buy, likely owing to the ongoing affordability challenges posed by elevated mortgage rates and home prices. Year over year, the full index is down 13.2 points. …”As we enter 2023, we expect affordability to remain the top challenge for potential homebuyers, as even small declines in rates and home prices – from the perspective of the buyer – may not produce sufficient purchasing power. …We think the resulting tension will contribute to a continued decline in home sales in the coming months.”

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AF&PA Releases November 2022 Printing-Writing Monthly Report

The American Forest & Paper Association
December 16, 2022
Category: Finance & Economics
Region: United States

WASHINGTON – The American Forest & Paper Association (AF&PA) released its November 2022 Printing-Writing Monthly report. According to the report, total printing-writing paper shipments decreased 1% in November compared to November 2021. U.S. purchases of total printing-writing papers increased 13% in November compared to the same month last year. Total printing-writing paper inventory levels increased 9% when compared to October 2022. Uncoated free sheet (UFS) paper shipments remained essentially flat (-0.3%) compared to November 2021 while the inventory level increased 8% compared to October 2022. UFS imports increased 55% while exports decreased 24% in October 2022. 

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South Korea Economy and Housing Market Update

By Tai Jeong, Director, Canada Wood Korea
The Canada Wood Group Blog
January 3, 2023
Category: Finance & Economics
Region: International

South Korea’s economy grew at its slowest pace in a year in Q3 as poor net exports offset consumption and investment. …OECD cuts South Korea’s 2023 growth outlook to 2.2% from earlier forecast of 2.8%, citing uncertainties in the global economy.

  • South Korea’s Housing Starts in number of units and total floor areas for Q3 of 2022 decreased 26.1% to 294,059 units and 17.1% to 27.69 million square meters respectively from a year earlier.
  • Housing Permits in number of units and total floor areas for Q3 of 2022 increased 5.9% to 380,200 units and 16.8% to 48.81 million square meters respectively from a year earlier.
  • The number and total floor area of Wood Building Starts for Q3 of 2022 decreased 9.8% to 7,304 buildings and 10.3% to 694,621 m2 from a year ago and those for Wood Building Permits also decreased 6.7% to 8,885 buildings and 9.6% to 803,411 m2.

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Wood, Paper & Green Building

Workshop: Wood Preservation in Canada

By Natalie Tarini, Executive Director
Wood Preservation Canada
January 11, 2023
Category: Wood, Paper & Green Building
Region: Canada

On March 1, 2023 join Wood Preservation Canada in Ottawa and learn more about the pressure treatment process, the importance of proper specification and wood durability. Registrants will receive a 10% discount on the CSA O80 Standard for Wood Preservation. Craig Wilson will introduce pesticide regulations in Canada and talk about the various applications for residential and non-residential products. Craig will also explore the pressure treatment process and speak to the governing standard, CSA O80 Series 21 for wood preservation. Justin Lesparance will show examples to stress the importance of proper specification for treated wood products and discuss best practices for using pressure treated wood with real-life examples of wood project restorations and construction. Dr. Dan Tingley will introduce timber durability and the application and treatment of various wood species for pressure treatment applications. Dan will showcase examples of successful pressure treated wood applications and speak to their success and lessons learned.

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Forestry

B.C. old-growth forest rally planned in Victoria

By Hana Mae Nassar and Mike Lloyd
Vancouver City News
January 10, 2023
Category: Forestry
Region: Canada, Canada West

More than 160 organizations have signed a declaration demanding B.C. take faster action to protect the province’s remaining old-growth forests. The document calls on Premier David Eby to fulfill commitments on old growth, pushing for “immediate action to stop logging” of these areas. The Union of BC Indian Chiefs, municipal leaders, and the BC General Employees Union are among those who’ve signed on “Today, and every day, we, the undersigned, stand together in an unprecedented show of unity amongst working people, Indigenous land stewards and knowledge-keepers, activists, scientists, youth, educators, communities, celebrities, environmental and social justice groups, faith organizations and more. Standing united against the destruction of old growth forests. Standing strong for future generations,” the declaration reads, in part. The groups have announced a rally set for Feb. 25 at the Legislature in Victoria, marking Eby’s 100th day as premier.

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BC Natural Resources Forum bringing B.C. Premier Eby to Prince George next week

By Ted Clarke
Prince George Citizen
January 10, 2023
Category: Forestry
Region: Canada, Canada West

David Eby

B.C. Premier David Eby, in his first scheduled visit to Prince George since taking over from John Horgan as head of the provincial government, will address the 20th annual BC Natural Resources Forum banquet at the Prince George Civic and Convention Centre next Tuesday evening.  It will be the first time in thee years the forum will be an in-person event, after two years as a virtual conference during the pandemic.  The forum begins Wednesday morning with an opening address from Sarah Weber, president and CEO of C3 Alliance Corp, followed by short speeches from Lheidli T’enneh chief Dolleen Logan, Prince George-Peace River-Northern Rockies MP Bob Zimmer, Cariboo-Prince George MP Todd Doherty, Prince George Valemount MLA Shirley Bond and Prince George Mayor Simon Yu.

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40 acres of oceanfront property donated to Comox Valley Regional District to create a park

By Terry Farrell
The Ladysmith Chemainus Chronicle
January 10, 2023
Category: Forestry
Region: Canada, Canada West

The Comox Valley Regional District has received a donation of 40 acres (16 hectares) of oceanfront property in the Merville area for use as a park. …The property, identified as Maris Estates, was donated by Christopher Investments, Ltd. …There are no structures on the property, and at this time, no access to the oceanfront from area roads. “The property is all mature, second-growth forest, with some old growth in there,” explained Mark Harrison, manager of parks for the CVRD. “There are no trails, there is no driveway access. It’s basically just wilderness. “At this stage, we do not want to promote public use. We just got the land. We still want to do inventory in there, do an assessment and come up with some kind of management plan on what we are going to do with that park.”

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Daines eyes passage of forest collaboration bill

by Kate Heston
Daily Inter Lake
January 11, 2023
Category: Forestry
Region: United States, US West

Montana Republican U.S. Sen. Steve Daines expects a piece of forest management legislation he worked on with California Democrat U.S. Sen. Dianne Fienstein will pass through Congress later this year.  The Root and Stem Authorization Act codifies the authority of the secretaries of the Agriculture and Interior departments to conduct forest restoration projects alongside private landowners and companies – with the goal of facilitating more efficient forest management efforts.  “This act is really going to promote this collaboration effort,” said Tim McEntire, the northwest region representative for the Montana Logging Association, which is based in Kalispell. “That’s how we get good things done – when we’re all after the same goal.” …The idea for the bill stemmed from the success of a lumber company in Washington where they utilized their authority to work with federal agencies to move forestry projects along. The partnership helped accelerate forest projects, a process Daines hopes to replicate across the nation.

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Groups sue Forest Service to stop Black Ram project

By Joshua Murdock
The Billings Gazette
January 10, 2023
Category: Forestry
Region: United States, US West

Two conservation groups are suing the U.S. Forest Service in an attempt to stop the controversial Black Ram logging project in far northwest Montana. The project is a mix of commercial logging, thinning and prescribed burning in the Kootenai National Forest. The groups, Alliance for the Wild Rockies and the Native Ecosystems Council, specifically take issue with the project’s impacts on grizzly bears, a species listed as threatened under the Endangered Species Act. They argue that the project will destroy grizzly habitat with logging, prescribed burning and road building, in violation of the act.   …The Forest Service, in consultation with the U.S. Fish & Wildlife Service, stated that the project won’t impact, or is unlikely to impact, species including bull trout, lynx and grizzly bears. WildEarth Guardians and other groups are suing the Forest Service and the Fish and Wildlife Service over those determinations. 

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Forests Can Help Manage Water as Raleigh Area Grows, Climate Warms

By Laura Oleniacz
North Carolina State University News
January 10, 2023
Category: Forestry
Region: United States, US East

In areas near Raleigh projected to see heavier future development, keeping buffers of trees or other greenery around waterways could help slow rushing streams during wet conditions, and keep them flowing during dry ones. However, North Carolina State University researchers warned these so-called “riparian buffers” would not be a magic bullet for managing water as development increases and the climate grows warmer and wetter. “Buffers are good for watersheds – there’s a lot of literature that shows that they’re great for water quantity and also for quality,” said the study’s lead author Elly T. Gay at NC State. “But in the future, buffers in isolation may not be viable as the only option to mitigate negative consequences that increased development and more variable climate might have on water quantity; they need to be coupled with other management strategies.”

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Machine Learning for Tree Mapping? AI and Climate Change Mitigation

By Harvey Greer
Lesprom Network
January 11, 2023
Category: Forestry
Region: International

New research out of the University of Copenhagen marks some major changes in how to account for tree carbon stocks [in Rwanda]. And these changes could lead to significant improvements in climate mitigation strategies. According to the study, University of Copenhagen researchers created a new method for measuring carbon stocks. The process maps out stocks for trees both inside and out of designated forestlands using data-intensive, multi-layered statistical modeling. By using this more sophisticated modeling technique, trees can be counted much more accurately – and well beyond where the count often stops. Typical inventories of tree cover inevitably leave out trees growing outside of forests, such as on farms, fields, or in residential areas. This can lead to incomplete numbers and imprecision in carbon stocks relative to emissions. 

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Carbon, Climate & Bioenergy

Climate key to determining dead plant decomposition and predicting carbon emissions

By the University of Stirling
Phys.Org
January 10, 2023
Category: Carbon, Climate & Bioenergy
Region: International

A new study from the University of Stirling, published in Nature Ecology & Evolution, has found that climate is the dominant driver in determining how quickly dead plants decompose, allowing scientists to make more accurate predictions about carbon emissions and climate change globally.  Decaying dead plants and leaves, known as plant litter, release 60 petagrams of carbon into the atmosphere every year—six times more than all human emissions—and contribute around 10% of the total amount of carbon in the atmosphere.  Although these emissions are natural and key to functional ecosystems, any increase in their rate could further accelerate climate change. Knowing about the conditions in which dead plants decompose more or less quickly has crucial impacts on predicting and understanding CO2 concentrations and fluctuations in the Earth’s atmosphere.

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Forest Fires

Renewed fire emergency for South West Australia on second day of fighting lightning-sparked blazes

ABC News Australia
January 9, 2023
Category: Forest Fires
Region: International

Firefighters and emergency crews are continuing to battle multiple bushfires ignited by more than 300,000 lightning strikes across southern Western Australia. An emergency warning remains in place for people north of Preston National Park, in WA’s South West. The emergency warning also applies to people in parts of Glen Mervyn, Mumballup, Noggerup, and Yabberup. A watch and act warning is in place for Noggerup, Mumballup, and other areas nearby. The nearby blaze in parts of Beelerup, Brookhampton, and Charley Creek, on the outskirts of Donnybrook, was downgraded to a watch and act early on Wednesday. A fire in Wellington National Park, to the north of the Donnybrook and Noggerup fires, has been downgraded.

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