Inflation and its cure, rising interest rates, are cutting into lumber sales, writes Nelson Bennett. In related news: Skeena Sawmills in Terrace cuts production; Canfor, Canfor Pulp, Weyerhaeuser, and Mercer report positive third quarters; Resolute’s Thunder Bay Pulp & Paper mill is for sale; Maine’s ND Paper is being sued; and Russia’s solid wood production is down significantly. On the Wood Products front: mass timber news from Portland; New York; and Houston.
In Forestry/Climate news: Enviva applauds EU scientists for woody biomass support; ENGO’s call on BC to protect spotted owl habitat; an Oregon ‘burn boss’ arrest continues to inflame; a day in the life of a plane-jumping firefighter; and BC’s most endangered river needs more protection.
Finally, our apologies again if you missed the Tree Frog News this week due to our email service provider. Back issues are always archived and accessible on the website.
Kelly McCloskey Tree Frog Editor
Inflation and its cure, rising interest rates, are beginning to hit the bottom lines of two of B.C.’s biggest forestry companies. West Fraser and Canfor released third quarter financials this week that show both companies still making a good profit on lumber and pulp sales, but with those profits taking a sharp dip compared to previous quarters, thanks to a decline in new home construction in the U.S. Both companies also report high log costs in B.C. and railway bottlenecks as factors affecting their bottom lines. …B.C.’s other large lumber producer, Interfor, has not released its third quarter financials yet, but has announced it will curtail production in the fourth quarter, due to falling lumber prices. The company plans to reduce production by 200 million board feet in the fourth quarter.”
NEW YORK — Mercer reported third quarter 2022 Operating EBITDA of $140.9 million similar to $148.1 million in the third quarter of 2021 and $145.1 million in the second quarter of 2022. In the third quarter of 2022, net income was $66.7 million compared to $69.1 million in the third quarter of 2021 and net income of $71.4 million in the second quarter of 2022. In the first nine months of 2022, Operating EBITDA increased by 40% to $440.4 million from $313.9 million in the same period of 2021. In the first nine months of 2022, net income increased to $227.0 million from $96.5 million in the same period of 2021. …Mr. Juan Carlos Bueno, the Chief Executive Officer, stated: “Strong energy and pulp prices combined with favorable foreign exchange movements and lower planned major maintenance were the main factors behind our operating results relative to the second quarter.
VANCOUVER, BC
VANCOUVER, BC– 
In the first nine months of 2022, the volume of Russia’s industrial production of lumber amounted to 22.5 million m3, or 7.5% less than a year earlier, according to the Federal Service for State Statistics (Rosstat). In September, lumber production decreased by 17.4% year-on-year. Production of windows and wooden frames decreased by 1.7% to 335 thousand m2; doors, wooden frames and thresholds production dropped 2.2% to 15.3 million m2. In January-September 2022, Russia’s plywood production totalled 2.551 million m3, or 25.6% less than last year. In September, plywood production decreased by 40.0% year-on-year. Fibreboard production decreased by 5% to 518 million m2; and chipboard production fell by 9.8% to 7.7 million m3. [END]
This study examined methods for estimating carbon stocks in wood products used in existing wooden houses built by private building companies and estimated these values focusing on wooden houses built by Sumitomo Forestry Co., Ltd. Moreover, we discussed the data and methods required for more accurate estimates. …Carbon stocks in wood products used in existing wooden houses at the start of FY2021 were estimated to be approximately 1.96 million t-C under the DIM, equal to more than half of carbon stocks in domestic forests owned by the target company, which suggests that wooden houses play a significant role in carbon storage. …It is important for private building companies to continuously acquire time-series data on the floor areas of both newly constructed and existing houses and wood products used in them to improve the accuracy of estimates in the future.
ST. GEORGE — …Many in Southern Utah believe logging is the best strategy to mitigate next year’s risk – but is it? …Jesse Morris said it depends. Morris is a research professor at the University of Utah… Logging is an important tool in forest management, said Morris, adding that society relies heavily on wood products that have to come from “some forest somewhere.” However, whether or not a beetle-killed forest should be logged depends on what the goals are for the landscape. …When removing trees, the nutrients they contain are removed from the forest as well. However, by taking dead trees, Morris said there is less risk of the carbon they’ve stored being released into the atmosphere should they burn. Logging is a “delicate” scientific method that involves removing enough trees to create the ideal fuels balance while “leaving enough cover for a healthy ecosystem,” according to the U.S. Forest Service.
BOZEMAN — Even after the smoke clears, communities can be impacted by wildfire when scorched mountainsides are flushed with rain, washing sediment, ash and other contaminants into streams and reservoirs that supply drinking water. In light of the severity and frequency of wildfires across much of the U.S., a Montana State University researcher and collaborators are working to help communities better safeguard water resources against wildfires as part of a three-year, $4 million transdisciplinary project led by the U.S. Forest Service Pacific Northwest Research Station. “We want to provide municipalities and others in the drinking water community with really clear, science-based guidance for how they can invest their money and resources to prepare for future wildfires,” said Amanda Hohner, assistant professor in the Department of Civil Engineering in MSU’s Norm Asbjornson College of Engineering.
Research institutes in Arizona, Colorado and New Mexico signed a $16.47-million agreement with the U.S. Forest Service to map forest treatments and measure their effectiveness in reducing the risk of catastrophic wildfires. 
SALEM, Ore. — When U.S. Forest Service personnel carried out a planned burn in a national forest in Oregon on Oct. 13, it wound up burning fencing that a local family, the Hollidays, uses to corral cattle. The crew returned six days later to restart the burn, but the flames then spread onto the family’s ranch and resulted in the arrest of “burn boss” Rick Snodgrass. …“It was just negligence, starting a fire when it was so dry, right next to private property,” said Sue Holliday, matriarch of the family. The incident has once again exposed tensions over land management in the West, where the federal government owns nearly half of all the land. …The Holliday ranch covers more than 6,000 acres and has about 1,000 head of cattle. The Hollidays say they want justice done. “We’re just standing up for what we believe in, and this is our land,” Tonna Holliday said.
BETHESDA, Maryland — Enviva issued the following statement in response to a public letter from 550 global scientists sent to the Presidents of the European Commission, European Parliament, and European Council: Enviva applauds 550 global scientists for their letter highlighting the important role that woody biomass from sustainably managed forests can play in climate change mitigation, delivering a fossil fuel-free energy future, and maintaining healthy forests. This includes sustainably sourced woody biomass from healthy forests in the U.S. Southeast. …Importantly, as the EU progresses its discussions on the Renewable Energy Directive, we believe these expert perspectives, based on science and deep expertise in forest management and ecology, will help inform the policy debate surrounding the use of woody biomass in meeting the EU’s climate targets. …The full letter, “Scientist Letter regarding the need for climate smart forest management,” is 
