Daily News for April 06, 2022

Today’s Takeaway

West Fraser to reduce capacity at Hinton, Alberta pulp mill

The Tree Frog Forestry News
April 6, 2022
Category: Today's Takeaway

West Fraser will permanently reduce capacity at its Hinton pulp mill, switching to unbleached kraft pulp. In other Business news: Drax opens a new pellet plant in Alabama; Domain Timber to manage Virginia forestlands; and market updates on the supply chain, labour woes, lumber priceshousing share and mass timber trends.

In Forestry/Climate news: the TLA’s Bob Brash says its time to correct BC government’s wrongs; Forsite’s Cam Brown turns the table on Sierra Club claims; the NRDC bemoans logging and forest certification in Canada; a Minnesota study says trees are more valuable as climate regulators; and ENGOs want to curtail Australia’s native logging industry.

Finally, climate change is taking the sweet out of maple syrup.

Kelly McCloskey, Tree Frog Editor

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Opinion / EdiTOADial

Time to Correct the Wrong

By Bob Brash, TLA Executive Director
The Truck LoggerBC Magazine
April 5, 2022
Category: Opinion / EdiTOADial
Region: Canada, Canada West

On three occasions, those who have been determined to bring their concerns via a rally directly to the BC legislature have been forced to cancel it. …Now, planning will be underway for the next attempt. Why the effort? Because the provincial government is making decisions that are simply wrong. Other than being one of a few hundred government spin doctors or a member of an entitled environmental corporation, all involved in our business know these decisions are wrong and that much better options exist to protect workers, communities, and the environment. On behalf of the TLA, I was going to have the honour of speaking at the rally. Well, no need to waste a speech, so here’s the essence of what I planned to say.

Frankly, I would rather be doing more productive things than be here at this rally, like moving our forest sector progressively forward. …Instead, we’re fighting international environmental corporations creating a false crisis for their own selfish benefits, trying to counter false narratives about the state of BC’s forests, trying to persuade a government to take a better path forward than their obvious capitulation to special interest groups, fighting government decisions affecting thousands of good people and forest workers, and fighting to counter decisions based primarily on political factors versus science and people. So, is there a better path forward? Of course, there is. 

…Regardless of whether this speech happens, the fundamental question is what will happen next? …Will government start to meaningfully engage with all of us or simply wait us out? 

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Business & Politics

West Fraser’s Hinton Pulp to reduce production capacity and move to unbleached kraft pulp

By West Fraser Timber Company Ltd.
Cision Newswire
April 5, 2022
Category: Business & Politics
Region: Canada, Canada West

VANCOUVER, BC — West Fraser Timber announced today that it will permanently reduce capacity at its pulp mill in Hinton, Alberta by the end of this year.  One of Hinton Pulp’s two production lines will shut, and the remaining line will produce Unbleached Kraft Pulp (UKP) rather than Northern Bleached Softwood Kraft Pulp. “Hinton Pulp has been in operation since 1956 and these changes are necessary to simplify our operation, reduce capital requirements and greenhouse gas emissions, and better align with consumer expectations,” said Ray Ferris, CEO. The capacity reduction will see staffing levels transition from 345 positions to 270.  West Fraser expects to mitigate the impact on employees through natural attrition, retirements and by offering employment opportunities at other operations. …As the world moves away from single-use plastics, UKP is now used increasingly. …It is anticipated that an impairment charge of approximately US$13 million will be recorded in West Fraser’s first quarter 2022 results.

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Domain Timber Advisors to Lead Investment Management of Virginia Timberland Portfolio

By Domain Capital Group, LLC
Businesswire
April 5, 2022
Category: Business & Politics
Region: United States, US East

ATLANTA–Domain Capital Group, LLC, a comprehensive private investment management services firm, today announced its subsidiary, Domain Timber Advisors, LLC, assumed investment responsibilities for a 27,000-acre forestland portfolio in central and eastern Virginia. The portfolio is owned by one of Domain’s existing separate account clients. Domain Timber will manage the portfolio under Sustainable Forestry Initiative (SFI) standards to ensure forestry practices and wood production promotes long-term conservation of water quality, wildlife, and biodiversity. Management of the portfolio increases the firm’s investments in the Southeast, where it recently acquired more than 1,600 acres of west Georgia timberland. The acquisition brings the total acreage under Domain Timber’s management to more than 260,000.

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Drax opens new pellet plant in Demopolis, Alabama

By Drax Group
Biomass Magazine
April 5, 2022
Category: Business & Politics
Region: United States, US East

ALABAMA — Drax Group has opened a new pellet plant at Demopolis in Alabama. At full capacity the plant at Demopolis, which is Drax’s second production facility in Alabama, will produce 360,000 metric tonnes of sustainable biomass pellets a year. Alabama Governor Kay Ivey said, “Drax’s wood pellet plant will drive long-term economic growth and spark significant job creation.” …Drax’s pellet plants help support employment with around 350 people employed during construction of the new plant, and 120 people employed directly by the renewable energy company at its two pellet plants in Demopolis in Marengo County and Aliceville, in Pickens County. …Including Demopolis, Drax’s operates seven pellet plants in the US south. The Demopolis and Aliceville pellet plants support Drax’s plans to increase pellet production to meet growing demand in Europe and Asia.

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Finance & Economics

North American lumber prices remain flat

By Madison’s Lumber Reporter
Lesprom Network
April 5, 2022
Category: Finance & Economics
Region: Canada, United States

Softwood lumber buyers and sellers wrestled with price levels. While inventories in the field remained light, many customers were still waiting for wood they had ordered weeks ago, so were reluctant to buy given ongoing higher prices. …Sawmill order files were shrinking but still quite strong, at approximately three weeks, so producers felt no reason to bring prices down. Sawmill lumber yards were choked due to continued non-existent rail cars. Deliveries were maddeningly unpredictable as rail cars and trucks were extremely difficult to source. Even as the spring building season looms, almost all softwood lumber commodity prices remained flat once again. For the week ending March 25, 2022 the price of benchmark softwood lumber item Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) was up +$10 or +1% from the previous week, at US$1,100 mfbm. That week’s price is up by +$128, or +10% from one month ago when it was $1,283.

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Leaders Share Strategies To Worsening Housing Supply Chain Challenges

By Jennifer Castenson
Forbes Magazine
April 5, 2022
Category: Finance & Economics
Region: United States

John Perna operates Hamilton Building Supply Company in New Jersey, a company that serves local builders and remodelers and that has seen double digit growth in the past year. Like the rest of the country, New Jersey is experiencing a hot housing market. And, also like the rest of the country, it isn’t without some major challenges. …The conference hosted the who’s who of the National Lumber and Building Materials Dealers Association (NLBMDA), which was host, along with the Hardware + Building Supply Dealer media group. …NLBMDA has been urging the Biden administration and Congress to prioritize the supply chain disruptions and labor shortages that contribute to the volatility of lumber prices. …NLBMDA is also urging Congress and the administration to prioritize policies to boost workforce development and help alleviate labor shortages in the industry, including expanding vocational training, apprenticeships and work-based learning.

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The labor shortage is nothing new for the construction industry

By Amanda Fung
Yahoo! Finance
April 5, 2022
Category: Finance & Economics
Region: United States

There’s a widespread labor shortage across the country, but that’s nothing new for the construction industry. During the homebuilding boom of the early 2000s, there was a lack of construction workers that was briefly cured when the housing market collapsed during the Great Recession and foreclosure crisis. …“The construction worker shortage has reached crisis level,” said Home Builders Institute (HBI) president and CEO Ed Brady in a recent statement. The numbers are staggering. The construction industry will need to attract nearly 650,000 additional workers on top of the normal pace of hiring in 2022 to meet the demand for labor, according to the Associated Builders and Contractors. Meanwhile, the HBI said 2.2 million new workers are needed within the next three years to meet housing demand.

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US Rural Market share increased in Q4, 2021 compared to Q4, 2020

By Litic Murali
NAHB – Eye on Housing
April 5, 2022
Category: Finance & Economics
Region: United States

In the fourth quarter of 2021, the market shares of single-family and multifamily home building in rural submarkets, as identified by the NAHB, increased from the fourth quarter of 2020. Evolving market conditions were primarily responsible for the market share gains. Rural areas’ home building market share changes indirectly reflected differing growth rates among all regional submarkets.  The data show higher market share gains for rural areas in multifamily home building than in single-family home building.

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Wood, Paper & Green Building

Builders think twice about adopting mass timber as prices surge

By Peter Mitham
The Western Investor
April 5, 2022
Category: Wood, Paper & Green Building
Region: Canada, Canada West

Construction using mass timber remains a viable option for addressing the labour and productivity challenges builders face, but unpredictable costs have made it a tough proposition in the current environment. According to a panel discussion hosted by the B.C. chapter of the Urban Land Institute mass timber checks several boxes, including environmental, economic and human resource factors. “The annual growth in productivity for the construction sector post-World War Two is 0.1 per cent per year,” said Peter Moonen, with the Canadian Wood Council. “Mass timber will play a role in enabling the construction sector to have industrialized production.” …But the dramatic escalation in the price of wood and other materials over the past year has thrown a wild card into the deck. …Supply chain issues also play a role, underscoring the need for a guaranteed route to market for mass timber. …Moonen said the global demand for CLT is anticipated to reach upwards of 3 million cubic metres by 2025. 

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Handyman Hints: What’s on your deck?

By Chris Emard
The Cornwall Standard-Freeholder
April 5, 2022
Category: Wood, Paper & Green Building
Region: Canada, Canada East

CORNWALL, Ontario — So, what are you going to finish the surface of your backyard deck with? Most retail markets will offer three choices, with those options being treated lumber, western red cedar, and composite (PVC) planking. Sure, there are other products to choose from, such as vinyl roll-on decking… cooked pine …and, IPE. …A treated lumber deck will cost about $2.50 per square foot. A cedar deck will cost about $5 per square foot. And, a composite deck will set you back about $8.50 per square foot. Now price isn’t always everything, but it probably accounts for the fact treated lumber is still the most chosen decking product. …Cedar decking, même chose. Although cedar is a terrific specie to use on your deck, it’ll look even more spectacular if you fasten it from underneath.

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Forestry

Canada is Hiding its Inaction Behind Certification

By Courtenay Lewis
Natural Resources Defense Council
April 5, 2022
Category: Forestry
Region: Canada

Canada has one of the world’s highest rates of logging primary forests, which are irreplaceable ancient forests that have never been industrially disturbed. Much of the pulp made from these forests goes into single-use tissue products like Charmin toilet paper, which is a profligate use of threatened species habitat and vital carbon stores. In an attempt to assuage public concerns, Canada often points to third-party certification of this logging, ostensibly as evidence that it is sustainable. But Canada’s claim that voluntary certification sufficiently protects forests is erroneous, and it obscures the lack of responsibility that the country is taking for long-term, enforceable forest protections. In fact, Canada’s federal and provincial governments are touting certification as a solution while they simultaneously weaken and dismantle forest safeguards. …FSC cannot and was never intended to serve as a substitute for legally enforceable protections that today’s beleaguered forests, biodiversity, and a warming climate urgently need.

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Canada is Undermining Meaningful Certification

By Courtenay Lewis
Natural Resource Defense Council Blog
April 5, 2022
Category: Forestry
Region: Canada

In Canada, third party certifications of logging operations differ greatly in their requirements around sustainability and human rights. While the Forest Stewardship Council (FSC) is well-respected, its competitors – particularly the Sustainable Forestry Initiative (SFI)— are roundly condemned for their lax safeguards around harmful logging practices. Canada, however, is taking a page out of industry’s playbook by characterizing all of its voluntary certifications as being strong indicators of sustainable forestry. This is harmful messaging, which both gives the appearance of legitimacy to weak certification schemes, and undermines FSC. …FSC, which was collaboratively established by environmental and social organizations and companies in the 1990s, is widely acknowledged by experts as being the only certification with rigorous requirements for logging companies in Canada. …Unsurprisingly many of Canada’s logging companies, as well as wood and pulp purchasers, frame SFI and FSC as both having strong standards.

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New Study Shows Nearly a Third of the Forests in Tree Farm Licence 44 are Old Growth

Huu-ay-aht First Nations and C̕awak ʔqin Forestry
April 6, 2022
Category: Forestry
Region: Canada, Canada West

Port Alberni, B.C.  – A comprehensive technical analysis shows 32 per cent of the forests in Tree Farm Licence 44 on Vancouver Island are old growth (older than 250 years) with this number expected to increase over the next seven generations to reach 39 per cent. The analysis was completed at the request of C̕awak ʔqin Forestry (formerly TFL 44 Limited Partnership) to support decision making for the recently announced Integrated Resource Management Plan – a ground-breaking Indigenous-led approach to resource planning coordinated by C̕awak ʔqin Forestry that is expected to take two years to complete. The report also supports efforts by C̕awak ʔqin Forestry to be climate positive by 2030. The study found that three-quarters of the old growth in TFL 44 is protected or outside of the timber harvesting land base. The report further concludes that 29 per cent of the more productive sites contain old growth, versus claims of 1 to 3 per cent across B.C., as noted in other studies.

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Counting old growth: The science of informing forestry policy with the facts

By Stewart Muir
ForestWorks by Resource Works
April 4, 2022
Category: Forestry
Region: Canada, Canada West

In our season two finale, Forsite Consultants forester Cam Brown joins ForestWorks to discuss a recent landmark study that turned the tables on Sierra Club claims. In his work with Forsite Consultants forester Cam Brown has become adept at the science of mapping timber supply, along with tenure management, economic analysis, and silviculture planning. He recently put some Sierra Club claims under the microscope, and found them lacking. Join us to hear the details.

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Protected area to guide boreal forest through changing climate

By Nick Pearce
Regina Leader-Post
April 6, 2022
Category: Forestry
Region: Canada, Canada West

When Peter Durocher was a younger man, he remembers thousands of frog eggs blackening the shores near his home in Île-à-la-Crosse each spring.  …He sees that slow change reflected in a projected northern Saskatchewan temperature increase.  A Prairie Adaptation Research Collaborative (PARC) study indicates climate change will bring significant changes to his home.  That’s why he wants to establish the Sakitawak Indigenous Protected and Conservation Area (IPCA) to ease the transition in a changing climate.  …The Métis-led project has completed its preliminary work — which included the study — to protect 22,000 square kilometres of boreal forest in northern Saskatchewan, a news release said.  …The value of the IPCA is avoiding new impacts to the equation when done unsustainably — like logging, mining and even tourism — that could jeopardize the ecosystem’s response to climate change, Sauchyn added.

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Temagami Forest Management Corp. awarded sustainable forest licence

Northern Ontario Business
April 5, 2022
Category: Forestry
Region: Canada, Canada East

The province has issued a sustainable forest licence (SFL) to the Temagami Forest Management Corporation, giving the group the green light to manage the Temagami Forest in northeastern Ontario. Stretching across 456,770 hectares, the Temagami Forest is located north of North Bay and south of Elk Lake, and encompasses the communities of New Liskeard, Haileybury, Cobalt, Temagami, Latchford, Dymond, Harris, Hudson, and Coleman Townships. Roughly 94 per cent of the Temagami Forest is comprised of Crown land, but only two thirds can be harvested. The rest is off limits, protected as part of provincial parks, conservation reserves, and other “no forestry” land uses.

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Portland losing tree canopy

By Jim Redden
Portland Tribune
April 6, 2022
Category: Forestry
Region: United States, US West

Two recent studies show declines in Portland’s tree canopy between 2015 and 2020. Although the losses are relatively small, they come after significant increases over the previous 15 years.  And there could be greater losses in coming years because of new residential developments policies, according to one of the researchers.  One study was conducted by Portland Parks & Recreation and presented to the Portland City Council on March 16. It found the tree canopy increased in all parts of town by 3,112 acres between 2000 and 2015. But, the study said, the canopy declined by 823 acres over the next five years. That is a net loss the size of Mount Tabor every year, the study said.  The parks study said the tree canopy fell in every zoning class of the city after 2015. …The study did not offer any reasons for the reversal, however. 

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How climate change is making maple syrup less sweet—and sapping production

By Shantal Riley
Gothamist
April 6, 2022
Category: Forestry
Region: United States, US East

Aaron Wightman taps maple trees in the Arnot Teaching and Research Forest. Wightman’s family has made maple syrup for generations. …he’s seen warming winter-spring temperatures push the tapping season back by more than a month. “We didn’t even tap until the end of February or early in March when I was young,” said Dr. Wightman, the co-director of the Maple Program at Cornell University. “Now we tap in early January.” …But in Quebec in 2021 the production shortfall siphoned 65% of the reserve last year, the Quebec Maple Syrup Producers said. “Production went down, and consumption went up,” said David Hall, president of the group’s Montérégie East region. And on a sour note, the sap wasn’t very sweet, he said….Pure maple syrup — not to be confused with processed pancake or table syrup — is about 67% sugar when finished. It also contains a slew of nutrients.

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Indianapolis’ urban forests worth $258 million. But they are disappearing to development.

By Sarah Bowman
Indianapolis Star
April 4, 2022
Category: Forestry
Region: United States, US East

Indianapolis’ trees are worth a lot of money — nearly $258 million a year, according to a recent report. That’s not the price they would fetch for lumber if they were cut down, however.  Quite the opposite, in fact: That’s the value of leaving the trees standing. The report identified more than 4,300 forested areas, defined as one acre or more of trees, across Marion County. Those pockets of green provide tremendous, yet often overlooked, benefits to residents. They help control flooding, improve air and water quality, increase property values and enhance quality of life. But the city’s urban forests are dwindling rapidly — being erased from the map and neighborhoods by encroaching development. And every tree cut down or pushed over by a bulldozer chips away at those important benefits. …Carbon Neutral Indiana wants to generate carbon offsets by establishing easements to protect forested areas across the city.

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Fresh calls to axe native forest logging as NSW inquiry hears of industry woes

By Fatima Olumee
ABC News, Australia
April 6, 2022
Category: Forestry
Region: International

Continuous breaches of native forest regulations by Forestry Corporation show a systemic pattern of noncompliance despite the lack of profits from the industry, a state inquiry hearing has heard.  The hearing, held in Moruya on the New South Wales South Coast, is part of an ongoing state Legislative Council Inquiry investigating the long-term sustainability and future of timber production statewide.  It comes after Forestry Corporation was issued multiple fines amounting to $78,000 for breaching forestry rules, including destroying hollow-bearing trees and critical habitat for endangered wildlife.  …”It can take months if not years before any action is taken, and in terms of wildlife it’s too little too late, as those trees are gone,” National Public Affairs Manager for Birdlife Australia, Sean Dooley said. …The economic viability of the native logging industry was also called into question at the hearing.

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Carbon, Climate & Bioenergy

U.S. trees may provide over $100 billion dollars in savings via environmental benefits — but face growing threats

By Jeannine Cavender-Bares and Stephen Polasky, University of Minnesota, St. Paul
PLOS Sustainability and Transformation in Science Daily
April 5, 2022
Category: Carbon, Climate & Bioenergy
Region: United States, US East

The concept of ecosystem services allows researchers to quantify the benefits that nature contributes to people into monetary units. A new study suggests that trees provide greater economic value when used to regulate climate and air quality than the value they produce as wood products, food crops, and Christmas trees. Trees sequester and store greenhouse gasses, filter air pollutants, provide wood, food, and other products, among other benefits. However, the service value of 400 individual tree species and tree lineages growing in forests and plantations in the contiguous U.S. was not previously known. To determine the ecosystem services value of U.S. trees, researchers mapped the value of trees and calculated the economic contributions to these services of every US tree species and lineage. 

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Food, farming and forestry must be transformed to curb global warming, UN says

By Leah Douglas
Reuters
April 5, 2022
Category: Carbon, Climate & Bioenergy
Region: International

Protecting forests, changing diets, and altering farming methods could contribute around a quarter of the greenhouse gas cuts needed to avert the worst impacts of climate change, according to the United Nations’ climate panel. But the changes are unlikely to happen unless governments act to spur them along, the report from the Intergovernmental Panel on Climate Change found. “We are in the early stages of climate and agriculture policy development, but we need to start with acknowledging the urgency of the challenge,” said Ben Lilliston, director at the Institute for Agriculture and Trade Policy. “The IPCC warns that governments thus far have not been up to the task.” About 22% of global greenhouse gas emissions came from agriculture, forestry, and other land use sectors in 2019, the report said, around half of which were from deforestation. Much of the rest came from the combustion of fossil fuels.

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