Q3, 2024 financials: Western Forest Products and Interfor reported higher losses, Stella-Jones and Cascades reported lower earnings. In related news: lumber dispute points to what Trump’s tariffs and trade policies may mean for Canada, forestry unions coordinate for bargaining with Western Canada’s pulp and paper employers; and a new report on growing pessimism about BC’s economy.
In Forestry/Climate news: Canada triples trees committed, invests in new tree nursery; Washington state votes to retain its carbon pricing law; Rayonier sells 200,000 acres of forestland; the EU faces potential softwood log shortages; and deforestation is down 31% in Brazil. Meanwhile: Ontario wildland firefighters says new health coverage falls short, and wildfires challenges persist New Jersey and Wyoming.
Finally, Forests Ontario has a new name, and the TLA’s impressive 2025 convention program.
Kelly McCloskey, Tree Frog Editor
B.C. business leaders are bracing for the potential economic impacts of another Donald Trump presidency. Trump has promised to implement new tariffs of at least 10% on all American imports, an attempt to promote made-in-America goods and boost the U.S. manufacturing sector. That could hurt BC manufacturers and the province’s forestry sector, contracting already stagnant economic growth, says Laura Jones, of the Business Council of BC. Tariffs “are terrible for consumers,” Jones says. They could raise the price of certain products — including softwood lumber — for Americans, forcing them to look elsewhere. …David Frum believes Donald Trump could ‘mess up’ the Canada-U.S.-Mexico free trade agreement and hold those countries ‘to ransom’. …A report released last month from the Canadian Chamber of Commerce found that a 10% tariff would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
To get a sense of the potential impact of Donald Trump’s plans for sweeping tariffs, look no further than the Canada-U.S. softwood dispute. …Since 2017 in the latest phase of the long-running trade war over lumber, companies based in Canada have paid more than $10-billion in U.S. duties. Production from U.S. sawmills, including those owned by Canadian-based companies, is exempt from the lumber duties. Canadian-based producers have descended on the U.S. South over the past dozen years and set up shop in the lumber region, and thereby found a way around the punitive duties for the U.S. portion of output.
Business groups say the work stoppage at BC ports is the latest in a run of supply chain disruptions affecting Canadian companies and the country’s economy. Employers at most of the province’s ports locked out their workers November 4 in a dispute involving roughly 700 unionized foremen. The workers represented by the International Longshore and Warehouse Union Local 514 have been without a contract since March 2023. “It’s been absolutely brutal. I mean, the timing of this is just really challenging,” said Pascal Chan, senior director of transportation, infrastructure and construction at the Canadian Chamber of Commerce. …Greater Vancouver Board of Trade president Bridgitte Anderson said the shutdown will disrupt $800 million in goods every day, warning it could put upward pressure on inflation. …Despite the importance of Canada’s ports, Fraser Johnson, a professor at the Ivey Business School at the University of Western Ontario said the rail disruption posed a more imminent threat.
BURNABY, BC — Interfor Corporation recorded a Net loss in Q3’24 of $105.7 million compared to a Net loss of $75.8 million in Q2’24 and a Net loss of $42.4 million in Q3’23. Adjusted EBITDA was a loss of $22.0 million on sales of $692.7 million in Q3’24 versus a loss of $16.7 million on sales of $771.2 million in Q2’24 and Adjusted EBITDA of $31.9 million on sales of $828.1 million in Q3’23. …In Q3’24, lumber production totalled 904 million board feet, representing a 130 million board foot decrease over the prior quarter. This decrease reflects the temporary production curtailments announced on August 8, 2024. …On October 16, 2024, Interfor announced plans to exit its operations in Quebec, Canada, including the sale of its three manufacturing facilities and the closure of its Montreal corporate office. …The Company sold Coastal B.C. forest tenures totalling approximately 125,000 cubic metres of allowable annual cut.
VANCOUVER – Western Forest Products reported a net loss of $19.6 million in the third quarter of 2024, as compared to a net loss of $17.4 million in the third quarter of 2023, and a net loss of $5.7 million in the second quarter of 2024. Other highlights include: Lumber production of 127 million board feet (versus 126 million board feet in Q3 2023); Lumber shipments of 138 million board feet (versus 130 million board feet in Q3 2023); Average lumber selling price of $1,378 per mfbm (versus $1,388 per mfbm in Q3 2023), primarily due to a slightly weaker sales mix of specialty lumber products; and Average BC log sales price of $113 per m3 (versus $118 per m3 in Q3 2023). …As previously announced, we plan to reduce lumber production in our BC sawmills by approximately 30 million board feet in Q4 2024, following reductions of approximately 30 million board feet in Q3 2024.
MONTREAL, Quebec – Stella-Jones announced financial results for its third quarter ended September 30, 2024. Sales in the third quarter were $915 million, compared to sales of $949 million for the corresponding period last year. Excluding the positive effect of currency conversion, sales were down $44 million, or 5%. Net income for the third quarter was $80 million, compared to net income of $110 million in Q3, 2023. “Despite strong long-term demand tailwinds, we witnessed a slower pace of purchases by our utility customers. Though total sales were lower than anticipated, we delivered a solid quarter EBITDA margin of 17.7% and strong operating cashflows,” said Eric Vachon, President and CEO. …“Utilities continue to forecast meaningful increases in infrastructure investments, evidenced by the longer-term sales contracts secured from new and existing customers.”
…Through the 2 Billion Trees (2BT) program, the Government of Canada is doing its part to support communities. As of June 2024, the government has signed or was negotiating tree-planting agreements with 11 of 13 provinces and territories, 40 Indigenous partners, 32 municipalities, 86 non-governmental organizations and more, representing a commitment to plant 716 million trees — nearly tripling last year’s total. …The work done to plant millions of trees and sign agreements in 2023 has laid a strong foundation for tree-planting efforts to ramp up in the coming years, including the over 160 million new trees announced today. …2023 was the 2BT program’s most significant year yet. Work for years to come is well underway, starting with today’s announcement of over $200 million. Every new tree planted will benefit the environment as well as Canada’s economy and community well-being. 
Barrie, Ontario – Since 2007, Forests Ontario has facilitated the planting of 46.5 million trees, enhancing 900,000 hectares of connected forest landscapes through over 8,000 restoration projects across 10 provinces. Now, Forests Ontario is becoming 
A recent in-depth study, “Preliminary Evidence of Softwood Shortage and Hardwood Availability in EU Regions,” has shed light on significant supply imbalances within Europe’s forest-based bioeconomy. Researchers from Wageningen University, the European Commission’s Joint Research Centre, and other institutions analyzed data from the European Forest Industry Database (EUFID), revealing critical mismatches between wood resources and processing capacities across European countries. The 
JACKSON TOWNSHIP, New Jersey—Several homes were evacuated on Wednesday due to a wildfire that continued to burn Thursday morning in Ocean County, New Jersey. A total of 25 structures are threatened, officials said in a 7:50 p.m. update. According to the state’s Forest Fire Service, six homes were evacuated on the west side of Stump Tavern Road and there were voluntary evacuations on the east side of Stump Tavern Road. Stump Tavern Road is closed from Route 571 to Route 528 in Jackson Township. Officials said the fire damaged about 175 acres and was 20% contained. Crews are prepping and strengthening firelines and are utilizing backing fire operations to help contain the blaze. No injuries have been reported. The cause of the fire remains under investigation. Meantime, fire crews are battling another large wildfire, this time in Burlington County.