Daily News for January 11, 2021

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Today’s Takeaway

The Harder.blog on 2020 and Forest2Market’s look for 2021

January 11, 2021
Category: Today's Takeaway

Despite the unpredictable 2020, Forests2Market principals lay out their expectations for 2021 on the global forest, pulp & paper, and chemicals industries and Paul Harder (Dakeryn Industries) answers 20 questions he posed a year ago. In other Business news: Vietnam moves to ease US tariff threat; Catalyst sues Enbridge over gas pipeline rupture; employees reflect on Domtar’s closing of its Port Huron mill; and US consumer confidence in housing falls again.

In Forestry news: North Cowichan, BC uses forest reserve fund to balance budget; Illinois signs forest management agreement with feds; while a Virginia group sues the US Forest Service over new environmental review standards. Meanwhile, in Oregon, landowners scramble to remove burnt trees, nursery capacity is strained and the state invests in wildfire preparedness.

Finally, on the leading edge with the shift to online marketing events like the upcoming virtual GBM.

Kelly McCloskey, Tree Frog Editor

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Special Feature

The shift to smaller community, online marketing efforts is here to stay

By Kelly McCloskey
The Tree Frog Forestry News
January 11, 2021
Category: Special Feature
Region: Canada, United States

Remember the days when you spent untold dollars travelling to a convention, setting up your booth, and spending the majority of your time making small talk with the other exhibitors? …In part, this is why the use of big industry events as the primary marketing tool has been in decline for several years, and sales reps surveyed by the Tree Frog News are increasingly discerning about which events they attend.

“Add in the deluge of online virtual events due to Covid-19 and the challenge is even greater”, says Paul Harder, US Commodity Sales Manager at Dakeryn Industries, a SPF lumber distributor and specialty wood products manufacturer based in North Vancouver, BC. “The virtual platform is key”, says Harder, “as is the opportunity to engage with potential customers before, during and after the event, and set up appointments in advance, sometimes with multiple reps from the same company”. Which is why Harder is particularly keen on the upcoming Global Buyers Mission (GBM), which is set to kick-off January 25–29. …Among Dakeryn’s online materials will be a “storytelling” video on the company and its products.

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Business & Politics

Harder Blog reveals year-end answers to 2020 crystal ball questions

Harder.Blog
December 29, 2020
Category: Business & Politics
Region: Canada, Canada West

Paul Harder is the U.S. Commodity Sales Manager at Dakeryn Industries Ltd in North Vancouver, BC. but he is also the pen behind Harder Blog. Since 2014, Paul has been posing twenty questions at the start of each year, revealing the answers in his blog. The Tree Frog News shares just a few of his questions and answers from 2020. 

  1. Will billionaire Jimmy Pattison succeed in taking Canfor private before his 92nd birthday October 1, 2020?
    No offers reported in 2020. Pattison’s bid of almost $1-billion ($16/share) was rejected by “majority of the minority shareholders” in 2019.
  2. As the market for sustainable mass timber construction grows, how many more cross-laminated timber (CLT) plants will open in North America this year?
    Five. Kalesnikoff (Castlegar, BC), Katerra (Spokane, WA), and Vaagen (Colville, WA) became fully operational in 2020. Smartlam started up their new plant in Montana. Element5 in Ontario just started up and will be fully operational early 2021 (Source: FEA)
  3. Is Donald J. Trump still president at the end of 2020?
    Yes, barely!

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Forest Enhancement Society of BC Announces Appointment of Sarah Fraser to the Board

Forest Enhancement Society of BC
January 12, 2021
Category: Business & Politics
Region: Canada, Canada West

Sarah Fraser

The Forest Enhancement Society of BC (FESBC) is pleased to announce the appointment of Sarah Fraser to the Board of Directors. Sarah is currently the A/Assistant Deputy Minister, Rural Opportunities, Tenures and Engineering Ministry of Forests, Lands, Natural Resource Operations and Rural Development. She is responsible for a diverse portfolio including strategic and operational policies that relate to authorizing disposition of Crown land and forest tenures, sale of high value Crown land, and remediation of Crown contaminated sites.  “Sarah’s extensive background and experience in economic development and community transition support programs will be a benefit to the important strategic decisions we make as Board members for the benefit of British Columbians,” said Jim Snetsinger, RFP, FESBC Board Chair. 

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B.C. paper mill sues Enbridge over gas pipeline rupture

By Keith Fraser
The Vancouver Sun
January 8, 2021
Category: Business & Politics
Region: Canada, Canada West

A B.C. paper mill that had its supply of natural gas cut off during the rupture of an Enbridge pipeline more than two years ago is suing for damages.   On Oct. 9, 2018, a 36-inch natural gas transmission pipeline owned by Enbridge and operated by Westcoast Energy exploded near Prince George. No injuries were reported but dozens of homes within a two-kilometre radius of the explosion were evacuated and the rupture led to a natural gas shortage during the winter in B.C.  Catalyst Paper Corp. and Paper Excellence Canada Holdings Corp., which owned and operated the paper mill near Prince George, have filed a lawsuit naming Enbridge and Westcoast Energy as defendants. …“The operations of the paper mill were significantly affected by the catastrophic failure and rupture,” says the suit.

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‘I will miss my mill’: Officials, employees reflect on Domtar Corp. closing Port Huron mill

By Bryce Airgood
Port Huron Times Herald
January 10, 2021
Category: Business & Politics
Region: Canada, Canada East

Steve Fox may have left Domtar Corp.’s Port Huron paper mill more than a quarter century ago, but he still has lifelong friends from his time there.   He recalled goofing around in the mill, the fish fries, and talking to World War II veterans while working there. Fox isn’t the only one in his family who worked at the mill, which has been operating for more than 130 years. His brother, dad, cousin, uncle and grandfather all worked there at some point, some of the thousands of people supported by the business over the years.  That’s why he was upset when he heard the mill was closing, but not as mad as his dad, who worked at the mill for over 40 years and passed away in September. Fox is glad his dad won’t see it shut down.   “It will be a sad day when the mill closes,” he said. 

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Vietnam Tightens Timber Laws to Ease U.S. Tariff Threats

By Nguyen Dieu Tu Uyen
BNN Bloomberg
January 8, 2021
Category: Business & Politics
Region: United States, International

Vietnam’s wood industry, under investigation by the U.S. Trade Representative for allegedly importing illegally harvested or traded timber, is vowing to tighten regulations and buy more American lumber to avoid punitive tariffs that would devastate the sector. Vietnamese officials are concerned the Trump administration could hit Vietnam with new tariffs on timber as well as other products before it leaves power Jan. 20, said Do Xuan Lap, chairman of the Vietnam Timber and Forest Product Association. “We’ve been buying more and more timber from the U.S.,” he said in a phone interview Friday, adding such imports from the U.S. may increase at least 15% this year. “A high tariff will seriously damage our wood industry, but it will also hurt U.S. companies.”

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Predictions for the Global Pulp & Paper Industry in 2021

By Matt Elhardt
Forests2Market Blog
January 11, 2021
Category: Business & Politics
Region: United States, International

Matt Elhardt

Demand recovery and shift among segments — Some demand for cutsize papers, away-from-home tissue and foodservice paper products will be permanently destroyed. …Capital flow will accelerate into packaging and allied industries — Expect to see more investments in new machines, mill conversions, and packaging plants. …Deals will pick up again — We expect to see several mid-market deals and perhaps, a few large market deals. China will continue to buy pulp and paper assets overseas. …Environmental regulation will take hold — helping pulp and paper to win in some segments. …Pulp prices will move off the bottom after a year of lows — Prices should improve so long as the global economic recovery from COVID continues. …The “new” China era in pulp and paper begins — Capital in the paper industry that previously was spent in China will now be spent in Southeast Asia.

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Predictions for the Global Forest Industry in 2021

By Pete Stewart
Forest2Market Blog
January 11, 2021
Category: Business & Politics
Region: United States, International

Pete Stewart

Southern log markets will remain soft — We look for sawtimber prices to remain flat in 2021, while pulpwood prices will display more volatility that will be concentrated in pockets of high demand. …US housing starts will taper — While there is long-term demand for new homes on the horizon, we expect total starts in 2021 to average 1.233 million units (-10.5% relative to 2020). …The Pacific Northwest will face challenges due to tightened log supply — Fire damage to private forests in the region has been so severe that some localized areas may face long-term gaps in future timber supply. …The US dollar will struggle — We expect the CAD to appreciate on trend within a range of C$1.243 to C$1.315, while the EUR depreciates between €0.828 and €0.929. …Capital will continue to flow to lumber manufacturing in the US South — Due to the South’s low log costs and deeply embedded forest supply chain.

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Finance & Economics

Consumer Confidence in Housing Falls Again as COVID-19 Pandemic Surges

By Fannie Mae
Yahoo Finance
January 7, 2021
Category: Finance & Economics
Region: United States

WASHINGTON — The Fannie Mae Home Purchase Sentiment Index®(HPSI) fell for the second straight month in December to 74.0, a 6.0 point decline from November. Five of the six HPSI components decreased month over month, and consumers reported a substantially more pessimistic view of homebuying and home-selling conditions, which drove the relatively large monthly change. Year over year, the HPSI is down 17.7 points. “The HPSI declined for the second consecutive month and fell to its lowest level since May 2020, as consumers adjusted to the worsening COVID-19 conditions of the first few weeks of December – the survey collection period,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “Both the ‘Good Time to Sell’ and ‘Good Time to Buy’ components fell significantly, with respondents overwhelmingly noting the unfavourability of economic conditions.”

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US Residential Construction Offsets All the Jobs Lost in March and April

By Jing Fu
NAHB – Eye on Housing
January 8, 2021
Category: Finance & Economics
Region: United States

Employment in the overall construction sector increased by 51,000 in December, after a revised increase of 29,000 jobs in November. The number of residential construction jobs rose by 22,700 in December, faster than an increase of 15,800 in November. In the past eight months, 472,500 residential construction jobs were created, offsetting all the 456,800 residential construction jobs lost in March and April due to the pandemic. Residential construction employment now stands at 3.0 million in December, broken down as 848,000 builders and 2.1 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction was 27,000 a month. Over the last 12 months, home builders and remodelers added 57,200 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 999,300 positions.

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Forestry

North Cowichan to dip into reserve funds to cover forestry costs

By Robert Barron
Chemainus Valley Courier
January 10, 2021
Category: Forestry
Region: Canada, Canada West

With no logging planned for North Cowichan’s municipal forest reserve in 2021, council has decided to use funding from its forest reserve fund to cover the lost revenue in the budget for the year. The municipality’s forestry department is anticipating a deficit of $592,000 for 2021 due to the fact that council had decided to cancel logging plans for the year while the forestry review on the future of the 5,000-hectare forest reserve continues. …Don Stewart, North Cowichan’s director of parks and recreation said that balancing the 2021 budget, as mandated for local governments under legislation, will require either using the forest reserve fund, increasing taxes or some other combination. He said if logging were to be suspended indefinitely upon conclusion of the ongoing review in 2021, the forest reserve fund has only enough money to offset the forestry-related costs for approximately two more years at the current level of operations.

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Road to wildfire recovery starts with seedlings, but capacity is strained

By Hannah Ray Lambert
KOIN.com
January 10, 2021
Category: Forestry
Region: United States, US West

MARION COUNTY, Ore. — Nursery workers are moving fast in Hubbard to get conifer seedlings shipped off to customers, and the wildfires that burned roughly 1.2 million acres in Oregon have given them a new sense of urgency, since millions of trees need to be replaced. However, with limited capacity to grow new trees, it’s a process that’s expected to take several years. “It was a disaster to be quite honest,” PRT nursery manager Allen Terlecki said, recalling the fires. “The smoke was so thick that at 9 in the morning here it was like midnight.” …The calls from frantic foresters poured in: They needed to increase their seedling orders. …Under the Oregon Forest Practices Act, timber land owners must replant within two years after a fire, if they salvage the timber. The agency has said it will make some allowances to extend the deadline for land owners who can’t obtain seedlings in time. 

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Owners of Oregon’s fire-hit private forests scramble to remove dead trees, replant

KTVZ
January 8, 2021
Category: Forestry
Region: United States, US West

SALEM, Ore. – About 360,000 acres of private forestlands were among the million acres that burned in Oregon during the Labor Day wildfires. Over the next year or so, Oregonians can expect to see trucks carrying scorched timber off private forestlands and bringing tree seedlings and planting crews onto them.  …“Sadly, the Labor Day fires of 2020 laid waste to far too many acres of beautiful and productive forestland that Oregonians prize,” said Mark Kincaid, Vice President of Timber Resources for the family-owned Lone Rock Timber, based in Roseburg. “Now that the smoke has cleared, an urgent and robust recovery effort is needed to remove dead trees, which are fuel for future fires, and replant the future generation of forest.” …The effort to clear burned stands falls to Oregon’s professional loggers, many of whom lost both expensive logging equipment and timber they had cut but not yet removed. 

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Oregon lawmakers reluctantly make $17 million downpayment on wildfire preparednes

By Ted Sickinger
The Oregonian
January 9, 2021
Category: Forestry
Region: United States, US West

If anything illustrated the need for Oregon to invest more in wildfire preparedness, it was last year’s cluster of Labor Day infernos that chewed through a million acres of forestland, destroyed thousands of homes and structures and killed nine people.  Despite scores of recommendations that the governor’s Council on Wildfire Response said were urgent back in 2019, the Oregon Legislature made no headway on the issue last year after two Republican walkouts over climate change legislation. Gov. Kate Brown’s hope of addressing some of those proposals in one of the Legislature’s special sessions didn’t happen either, taking a backseat to more pressing pandemic-related funding and policing reforms. But the Legislature’s Emergency Board reluctantly made a tiny down payment on Friday, appropriating $17 million for the Office of State Fire Marshal and the Oregon Department of Forestry to invest in wildfire prevention and preparedness programs.

 

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Virginia groups sue U.S. Forest Service over new environmental review standards

By Sarah Vogelsong
The Virginia Mercury
January 11, 2021
Category: Forestry
Region: United States, US East

Four Virginia organizations have joined a coalition of Southern Appalachian environmental groups that are suing the U.S. Forest Service over changes to federal environmental rules that determine how much scrutiny regulators must give activities like logging and utility projects in national forests. The rule, which was finalized by President Donald Trump’s administration Nov. 19, aims “to bypass the fundamental requirements of the National Environmental Policy Act” and “will cause significant harm to publicly owned national forests across the country and to members of the public who use those lands,” the lawsuit contends. …The case has been filed in the U.S. District Court for the Western District of Virginia’s courthouse in Big Stone Gap. At the heart of the suit lies controversial changes to the National Environmental Policy Act, a landmark environmental protection law passed in 1969 that is sometimes called the Magna Carta of federal environmental laws. 

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Illinois, US team up to manage, sustain vast forest lands

Associated Press in The Helena Independent Record
January 9, 2021
Category: Forestry
Region: United States, US East

SPRINGFIELD, Ill. — Federal and state land managers have signed an agreement to cooperate on caring for vast forest lands in Illinois. The agreement signed this past week was between the Illinois Department of Natural Resources and the U.S. Department of Agriculture’s Forest Service. It establishes a system for the two agencies to collaborate on forest management and mutual goals in tackling challenges facing communities, landscapes and natural resources. IDNR Director Colleen Callahan and Forest Service chief Vicki Christiansen said land managers in Illinois face multiple challenges. They include managing catastrophic storms, droughts, flooding, insect and disease outbreaks, invasive species and increasing public use. 

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Institute calls on the public to help it find Taiwan’s remaining ‘giant trees’

By Yang Yuan-ting and Jason Pan
Taipei Times
January 11, 2021
Category: Forestry
Region: International

The Council of Agriculture’s Forestry Research Institute has invited the public to participate in a project to map the nation’s remaining “giant trees.” A researcher has challenged people to find a tree taller than the current record holder, which is a 79.1m Taiwanese cypress in the mountains of Hsinchu County. The program, called “Tree Finder,” is a collaboration between the institute and National Cheng Kung University to locate Taiwan’s tallest trees by using lidar technology, institute researcher Hsu Chia-chun (徐嘉君) said on Jan. 2. “We have lidar scanning equipment on aircraft used in flights over Taiwan’s mountainous regions, as well as used to calibrate the collected data on tree measurements. This has enabled us to identify 272 trees that are more than 65 meters tall, the tallest of which is 79.1 meters,” Hsu said. …Taiwan’s forestry protection has been praised by many foreign scientists, Hsu said.

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Logging reprieve for rare Tasmanian parrot

Australian Associated Press in the Shepparton News
January 8, 2021
Category: Forestry
Region: International

Critically endangered swift parrots have been granted a reprieve in Tasmania, with the state-owned forestry operator agreeing to put a further pause on logging in native habitat. The Bob Brown Foundation had sought an urgent federal court injunction to prevent tree felling in 30 coupes in the island’s northeast.  Sustainable Timber Tasmania has agreed to postpone logging in the areas until the outcome of a separate federal court challenge by the conservation group against forestry in Tasmania broadly.  “This is a breakthrough but it should never have been necessary,” former Greens leader Bob Brown said on Friday.  “It’s a reprieve for the swift parrot because people cared.”  According to DNA sampling by researchers at the Australian National University, there is likely to be fewer than 300 of the migratory parrots remaining – significantly less than previously thought.

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