Canada is said to be creating its own definition of “forest degradation” after the EU passed a deforestation law. In other Business news: Quebec wildfires force some to pause operations; Skeena Sawmills resumes operations in Terrace, BC; Unifor strikes at Kruger Paper in Trois-Rivieres, Quebec; Europe’s log trade shows dramatic decline; and BC’s Port Alberni highway remains closed by wildfire, as logging roads offer limited alternative.
In Forestry/Climate news: researchers say the boreal forest is more southern-like, and contracting as it shifts northward; Alabama’s longleaf pine makes a comeback; and Western Australia’s controversial prescribed burns. Meanwhile: the latest wildfire updates from BC, Ontario, Quebec, Nova Scotia; and California.
Finally, a heads up. Friday is the start of a two-week vacation (Spain/UK) for two of your Frog editors, and we will be on ‘Tree Frog Light’ mode. Our website will continue to populate daily with stories but our email alert will be on pause. Please bookmark our page and visit it daily for current news. Thank you for your understanding.
Kelly McCloskey, Tree Frog Editor
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U.S. box demand has been consistently worse than the largest box makers expected over the past three quarters — with recent declines among the steepest since the Great Financial Crisis — and recent signs point to more of the same weakness. The largest U.S. boxboard/folding carton producer, Graphic Packaging, presented at a conference Tuesday at which its CFO Steve Scherger said the company is experiencing destocking among retailers following “awkwardly high” demand a year ago. …Box demand hit record highs during the pandemic… However, as Americans’ real average weekly income has consistently fallen for the past two years, they are now having to take on record levels of credit card debt. Consequently, goods demand has dried up. The rate of box shipment declines accelerated throughout Q1, with March down an eye-opening 11%. The three largest producers reported Q1 declines ranging from 8-13%.
EUROPE — The two largest log-trading regions in Europe are Central Europe (where Austria, Czech Republic, and Germany are the major importers) and Northern Europe (Finland and Sweden are the two log-importing countries). The most significant change in trade flow in Europe over the past few years has been the dramatic decline in log imports to the Nordic countries from Russia. According to Wood Resources International, the total log import volume to Finland and Sweden was just over 8 million m3 last year compared to an average of almost 16 million m3 annually throughout the previous decade. Most of the reduction has been in softwood logs. …The tighter supply of pulplogs and strong pulp markets has pushed log prices upward over the past year. …Rising prices for logs put pressure on local sawmills. They are signaling a more subdued demand and further demands for price reductions.
Canada’s federal government moved to create its own definition of “forest degradation” days after the European Union passed a law restricting the import of products linked to the practice. The new EU law will require wood products imported from Canadian forests — as well as anywhere else in the world — to be marked with geographic coordinates showing where they were harvested. Companies will then be required to combine that with satellite data and show their operations did not contribute to deforestation or forest degradation from 2021 onward. Last year, those measures prompted Canada’s ambassador to the EU to lobby lawmakers into adjusting the bill to exclude requirements around forest degradation. But those efforts failed. Once the rules are in force — in June 2023 — companies will have 18 months to get into line. Canada’s quick pivot to redefine forest degradation, has worried some environmental groups, who say a new definition could function as a loophole.
A group of logging contractors from the Nicola Valley have penned a letter to the provincial government regarding concerns with the province’s cutting permit referral process and high stumpage fees, along with economic and environmental worries over wildfire affected timber being left unharvested. The letter was sent to a number of local and provincial elected officials, and addressed to provincial Minister of Forestry, Bruce Ralston. The letter is from an unidentified group of local logging contractors who said they are requesting more clarity on timing for key issues like cutting permit issuance and responsible reforestation practices. “An estimated $100,000,000 in logging machinery is sitting idle and therefore, approximately 350 direct employees are not receiving pay-cheques,” states the letter. “These are tax paying citizens that are considering moving out of the province to keep their livelihood.”
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NETHERLANDS — The vast northern forests of Canada and Alaska are shifting northwards as a result of climate change. What’s more, the shift is faster at the southern boreal boundaries than the northern ones. This mismatch indicates that boreal forests are contracting on a continental scale, according to an international study led by Wageningen University & Research. …Boreal forests are expected to move northward due to climate warming. …At the same time, the climate may become too warm and dry in the southern parts of the boreal forest distribution where boreal trees have evolved under cold conditions. “The rates at which these two processes happen is key. The southern boreal may lose trees much faster than the northern boreal gains trees through expansion,” says Ronny Rotbarth, lead author and Ph.D. candidate at Wageningen University. “Such a mismatch would indicate a contraction of the biome.”
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