Daily News for January 06, 2021

Today’s Takeaway

Consumer confidence falls but industry optimism persists

January 6, 2021
Category: Today's Takeaway

US consumer confidence fell to a 4-month low in December, but housing, tissue and lumber market prices are expected to remain strong in 2021, and industry CEOs are cautiously optimistic. In other Business news: Conifex will resume power pant operations by month end; Ponderay Newsprint may have a second suitor; and the LBM features one of its Dealers of the Year Ganahl Lumber.

In Forestry News: a research paper says Canada needs more protected areas; scientists track clouds of budworm on radar; Ontario announces funding for species at risk; BC’s Roosevelt elk are a nuisance and threatened; and a group is suing to protect the spotted owl as the US administration ends protections for gray wolves

Finally, the 17th annual Global Buyers Mission is set to kick-off January 25.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Conifex expects to resume power plant operations by end of month

By Conifex Timber Inc.
Global Newswire
January 6, 2021
Category: Business & Politics
Region: Canada, Canada West

VANCOUVER, BC — Conifex Timber provided an update to the resumption of operations at its power plant in Mackenzie, BC. Conifex is working with its engineers and external power consultants on available options to resume operations at the power plant. Conifex currently expects to resume power generation before the end of January 2021. Conifex has also commenced an insurance claim to recover, subject to customary deductibles, business interruption and repair and replacement costs. Pursuant to the Normal Course Issuer Bid, announced on November 26, 2020, Conifex purchased 584,400 shares in December for cancellation. Conifex also announced today that Jordan Neeser, its Chief Financial Officer, has resigned effective March 16, 2021 to pursue other opportunities. 

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Washington law firm billed New Brunswick almost $2M last year for U.S. trade help

By Robert Jones
CBC News
January 6, 2021
Category: Business & Politics
Region: Canada, Canada East

New Brunswick has won some critical trade fights in the United States in recent months, but the victories have not come cheap.  Records show that Washington-based lawyers handling the disputes have billed $6 million over the last five years — including nearly $2 million billed last year.   “We are seeing more and more of this,” said Patricia Goff, an associate professor at Wilfrid Laurier University in Waterloo, Ont.   Goff, who studies trade issues, said it is increasingly common for provinces to retain their own representation in international commercial disputes that affect them, even when Canada is itself fully engaged.  …Two months ago there was a significant victory in those battles when the U.S. Commerce Department lowered a 20.2 per cent duty it had been applying only to New Brunswick softwood exports to 8.9 per cent as part of its annual review of the rates. 

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A Positive 2021 Outlook

By Tom Le Vere, president of Weekes Forest Products and 2020 NAWLA board chairman
The Merchant Magazine
January 4, 2021
Category: Business & Politics
Region: United States

Tom Le Vere

At the end of 2020, I had the privilege of moderating a virtual panel discussion with industry-leading executives for NAWLA Exchange, and hearing their lessons learned during the many disruptions of 2020. While many of us, myself included, have a playbook for downturns and other challenges, last year presented new conditions that none of us had previously experienced. These new operating “curve balls” required us to adjust and innovate in new ways. The panel also shared their thoughts on what lies ahead for our industry for 2021. Our panelists included Don Kayne, CEO, Canfor Corp. and Canfor Pulp; Craig Johnston, president and CEO, Forest City Trading Group; Grady Mulbery, president and CEO, Roseburg; Jim Enright, CEO, Pacific Woodtech; and Matthew J. Missad, CEO, UFP Industries. There was great consistency in the panelists’ thoughts on how COVID changed the way they served their customers and maintained continuity in their operations. 

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LBM Dealer of the Year: Ganahl Lumber

By James Anderson
The LBM Journal
January 5, 2021
Category: Business & Politics
Region: United States, US West

LBM Journal’s Dealer of the Year awards recognize four LBM companies of different sizes that epitomize the entrepreneurial spirit. By our definition, a Dealer Of The Year describes a company in which leadership excels at identifying underserved— or emerging—markets, satisfying customers, and constantly working to grow and improve business. This year marks the first time we have a tie. The 2021 winners in the category of $100 million + annual sales are Ganahl Lumber of Los Angeles, and Keim of Ohio. While these companies represent vastly different operations, the common thread is their fierce commitment to finding ever-better ways to serve their customers and their communities. …Since 1884, Ganahl Lumber has served the greater Los Angeles metro. Now in its fourth generation of family ownership, the company is led by Peter Ganahl, who last year oversaw $500 million in sales across 10 locations.

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Second potential buyer submits bid for Ponderay Newsprint in Usk

By Thomas Clouse
The Spokesman-Review
January 6, 2021
Category: Business & Politics
Region: United States, US West

A second potential buyer has come forward within the past couple days for the mothballed Ponderay Newsprint Co. mill near Usk. The mill’s owners filed for Chapter 7 bankruptcy protection and closed in June. The 927-acre property, which consists of 29 buildings and storage facilities and is adjacent to the Pend Oreille Valley Railroad and Pend Oreille River, was listed for sale last month for $11.5 million. “We have had significant interest,” said John Munding, the trustee overseeing the bankruptcy. “We do have one offer we are getting closer to confirming. We received another very significant letter of intent and letter of interest, literally in the past few days.” “So,” Munding continued, “we are still marching forward with the sale.” Munding said he could not identify either party that has shown interest in purchasing the plant. But, Munding confirmed both have expressed interest in reopening the mill.

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Finance & Economics

Wood products price surge likely to persist in 2021, raising home, renovation costs

By Dan Healing
The Canadian Press in On-Site Magazine
January 5, 2021
Category: Finance & Economics
Region: Canada

An unexpected rebound in wood product prices last month is boosting profits for Canadian forestry companies but leaving homeowners and buyers with the prospect of higher home and renovation costs in 2021. …RBC Capital Markets analyst Paul Quinn… “we expect that prices will remain at a high level during the first half of the year.” …The price volatility and shortage of supply of some wood products means headaches for homebuilders trying to take advantage of the current strong market, said Kevin Lee, CEO of the Canadian Home Builders’ Association. …Higher prices are encouraging Western Forest Products to redirect logs harvested on the West Coast that might have previously been exported to Asia into its Canadian mills to make value-added products, said CEO Don Demens. …In a new forecast, RBC raised its composite price estimate for lumber in 2021 to an average of US$575 per thousand board feet, up from US$475.

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US Consumer Confidence Falls to 4-month Low in December

By Fan-Yu Kuo
NAHB – Eye on Housing
January 5, 2021
Category: Finance & Economics
Region: Canada

After a strong rebound in September, consumer confidence fell for the second consecutive month in December, as job growth continued to slow and more states re-imposed restrictions on business due to resurgence of COVID-19. The Consumer Confidence Index, reported by the Conference Board, dropped 4.3 points from 92.9 to 88.6 in December, the lowest level since August 2020. …Consumers, however, were moderately more optimistic about the short-term outlook. The share of respondents expecting business conditions to improve increased from 26.5% to 29%. …The Conference Board also reported the share of respondents planning to buy a home within six months. …The share of respondents planning to buy a newly constructed home slightly decreased to 0.9%, and for those who planning to buy an existing home declined to 3.3%.

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BC’s housing market will continue to defy gravity

by Frank O’Brian
Business in Vancouver
January 6, 2021
Category: Finance & Economics
Region: Canada, Canada West

Vancouver-based Central 1 Credit Union is among those forecasting that the “exceptionally strong” 2020 housing market in B.C. will continue to surge, with average prices rising 5.6% in 2021 and a further 4% in 2022. The outlook contrasts with the Royal Bank… and both CMHC and Moody’s, which are predicting price drops of up to double-digits. …“The rebound in housing demand from pandemic-induced lows in the spring has been spectacular,” said Brian Yu. He noted that average home prices in B.C. were up 13% year over year in October, with the strongest gains recorded in the Interior and Island markets due to increased demand for recreational properties. …“Total housing starts are forecast to rise 6.5% in 2021 to 37,700 units, increasing by a further 4.5% in 2022 to 39,400 units,” he now predicts. But others are not so confident in B.C.’s housing outlook. …Citing “tremendous risks” from the COVID-19 pandemic, CMHC said it stands by its forecast.

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COVID-19 Poised to Structurally Alter Tissue & Towel Sector

By Bruce Janda
Forests2Market Blog
January 5, 2021
Category: Finance & Economics
Region: United States

The strong demand for toilet paper to keep the supply chain full  drove tissue mills to work extremely hard and at capacity, which has resulted in delaying scheduled maintenance over the last few months. Now that the supply chain is equalizing, producers are able to take care of these issues and pay closer attention to a few developments taking shape in the market. …Since we’re still without a vaccine and are unsure where we are in the virus’s lifecycle, we’re also not sure where the tissue and towel sector will settle. …it is reasonable to expect an increased focus on cleanliness. …Now with hygiene and hand washing at the forefront our daily lives, we understand air dryers create conditions for cross-contamination and defeat the purpose of hand washing. …“Paper towels should be recommended in locations where hygiene is paramount, such as hospitals and clinics.”

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Wood, Paper & Green Building

17th annual Global Buyers Mission set to kick-off January 25-29

By Kelly McCloskey
Tree Frog Forestry News
January 6, 2021
Category: Wood, Paper & Green Building
Region: Canada, United States, International

The Global Buyers Mission (GBM), the largest and most important wood show for international buyers and Canadian sellers of value-added wood products—according to a survey of those attending the annual Whistler affair—is set to kick-off January 25–29 as a custom “live” virtual event. A temporary solution to the current travel and other covid-related restrictions, vendors and buyers alike have been pursuing their marketing and sales objectives via online tradeshows, webinars and events since mid-March. So is it working? Are people planning to participate in the virtual GBM? And what’s their outlook for the event? To find out, we reached out to three high-profile, regular GBM participants. These participants includes Murakami Lumber—one of Japan’s oldest and largest importers of lumber and value-added wood products; Daizen Joinery—a high end custom log home and timber frame manufacturer in Kamloops, BC; and Fraserwood Industries—an innovative provider of heavy timber products and timber fabrication services based in Squamish, BC. Here’s what they had to say…

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Forestry

Federal scientists track ‘clouds of budworm’ on radar as insect outbreak grows

By Carl Meyer
The National Observer
January 6, 2021
Category: Forestry
Region: Canada

Jacques Régnière

Over the last two years, millions of moths took to the skies above the cold waters of Atlantic Canada, flying a treacherous journey across the Gulf of St. Lawrence from sunset until dawn. …Since 2018, the budworm population has gone from trace amounts in Canada’s easternmost province, to severe damage in some locations. …Three species of budworm — the western spruce, the jack pine, and the eastern spruce — are causing havoc in Canada’s forests right now, with tens of millions of hectares affected, threatening the country’s natural carbon stocks. “We can actually see them on radar,” said Jacques Régnière, a research scientist in insect population dynamics at the Laurentian Forestry Centre in Quebec, part of the Canadian Forest Service at Natural Resources Canada. …Three years ago, the main outbreak of budworm was concentrated in Quebec. But the spruce budworm has continued to increase in Ontario and Manitoba.

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Protected areas may not safeguard all that Canadians need them to: research

By Bob Weber
Canadian Press in the Globe and Mail
January 5, 2021
Category: Forestry
Region: Canada

The natural regions Canada protects don’t line up that well with where Canadians actually need them, research suggests. A paper published Tuesday concludes that the country’s vast network of parks isn’t adequately safeguarding areas that provide fresh water and recreation to nearby populations. It also says more than half of the areas Canadians rely on for those benefits are facing mining, energy or forestry pressure. “We need to start considering those other benefits,” said Matthew Mitchell, lead author of the paper in the journal Environmental Research Letters. The paper looks at which parts of the country are able to provide fresh water, carbon storage and recreational opportunities, and where those benefits are most needed. …Up to two-thirds of the areas most important for freshwater, carbon storage or recreation are also subject to resource extraction.

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UBC launches new Online Micro-Certificate: Climate Vulnerability & Adaptation

UBC Faculty of Forestry
January 6, 2021
Category: Forestry
Region: Canada, Canada West

The University of British Columbia’s Faculty of Forestry is excited to announce the launch of our new Professional Micro-Certificate on Skills for Assessing Climate Change and Adaptation. This program aims to foster a better understanding of the relationships and application among climate science, vulnerability assessments, adaptation development, and how this is applied in a management context, and finally translated into the business case for adaptation. Today, government and certification agencies are requiring more accountability in meeting climate change, and green industry standards. This has resulted in a surge in demand for working professionals who wish to advance their knowledge in the field of climate science, assessment and application of climate impacts and adaptation in a forestry context. The Climate Vulnerability and Adaptation Micro-Certificate offers science-based, practical, hands-on training for professionals, including those currently working and those seeking to gain additional skills to better their employment opportunities. 

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Cartoon: Saving old-growth forests

By Adrian Raeside
Prince George Matters
January 5, 2021
Category: Forestry
Region: Canada, Canada West

Cartoon with no story in Prince George Matters

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A Vancouver Island town becomes an elks’ club as imperilled species seeks refuge among humans

By Justine Hunter
The Globe and Mail
January 5, 2021
Category: Forestry
Region: Canada, Canada West

Cassy Emerson owns Youbou’s only coffee house, a gathering place for locals and visitors. It’s a good place to catch a glimpse of the local celebrities – a gang of hulking, male Roosevelt elk who have given up the forest life for the comforts of this B.C. town.  Mostly the elk are a welcome sight and locals have even named them and catalogued their unique personalities. Sometimes, though, they can be a pain.  …Given their status around town, one might think there was an abundance of such elk in the area, but in reality, this important species is in need of protection.  …Canada’s biodiversity is shrinking – and Roosevelt elk are an important indicator of the health of the ecosystem.  …Vancouver Island is the last remaining stronghold of Roosevelt elk in Canada, but logging and poaching threaten their future. 

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Biodiversity regulations outdated: Forest Practices Board

By Nelson Bennett
Business in Vancouver
January 5, 2021
Category: Forestry
Region: Canada, Canada West

The Forest Practices Board is recommending regulatory changes, following a review of logging in the Prince George area that it found to be technically compliant but outdated.  Basically, the existing regulations need updating to better protect biodiversity, the board states in a recent report.  The review of logging in the Prince George timber supply area (TSA) was prompted by a complaint, and conservationists are hailing the board’s report as confirmation that biodiversity in old growth forests is not being well-managed.  …“The investigation found that licensees were complying with the legal requirements for managing biodiversity,” the report states. “However, those requirements were established almost twenty years ago and have not been formally reviewed or revised. …The board makes two recommendations: Map old growth management areas in the TSA, and review and update requirements for managing biodiversity.

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BL Comfor will do more wildfire management in 2021

BC Local News
January 6, 2021
Category: Forestry
Region: Canada, Canada West

The Burns Lake Community Forest’s (BL Comfor) 2020 season went pretty well, however for 2021, hurdles from the local district manager’s office might make things difficult, according to General Manager Frank Varga.  “I think it went pretty well. I mean we did have a very wet year, so we were definitely challenged and had to be shut down a few times because the conditions just didn’t give us the opportunity to continue carrying out the harvesting salvaging activities. But we fully took on the Wildfire Management (WFM) project’s WFM Area 1 and got through probably a good 50 per cent of harvesting activities that we wanted to,” he said.  The WFM Area 1 is the the area just south of Burns Lake. This area has been extensively impacted by Mountain Pine Beetle and has been blowing down as can be observed from town, said Varga. This area is 60-80 per cent dead pine leading.

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Ontario Enhancing Protection for Species at Risk

By Ministry of Environment, Conservation and Parks
The Government of Ontario
January 5, 2021
Category: Forestry
Region: Canada, Canada East

TORONTO — The Ontario government is investing up to $4.5 million to help protect and recover plants and animals that are in danger of disappearing in the province. The funding will be provided to non-profit organizations, Indigenous communities and other groups through the Species at Risk Stewardship Program for on-the-ground projects that help preserve species at risk and their habitats. …Jeff Yurek, Minister of the Environment, Conservation and Parks… “This on-the-ground work is extremely important to preserving the biodiversity of our province for future generations.” In 2020-2021, over 80 projects were approved for funding from the Species at Risk Stewardship Program, including: The Grasslands Stewardship Initiative, led by Forests Ontario… A project led by Matawa First Nations Management surrounding at-risk bat species. …Applications for funding for the 2021-2022 Species at Risk Stewardship Program are now open

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Group to sue interior secretary for delaying protection of spotted owl, other species

By Bradley W. Parks
Oregon Public Broadcasting
January 5, 2021
Category: Forestry
Region: United States, US West

The Center for Biological Diversity plans to sue outgoing Interior Secretary David Bernhardt over Endangered Species Act decisions on the northern spotted owl, monarch butterfly and other species.  The court filing alleges Bernhardt has unlawfully delayed protections for the owl, butterfly and nine other species. The U.S. Fish and Wildlife Service and its director, Aurelia Skipwith, are also named in the lawsuit.  “Unfortunately, we’ve had to use lawsuits to get species protected more than one would hope,” said Noah Greenwald, endangered species director for the Center for Biological Diversity.  “Species have ended up waiting decades for protection, so we’ve had to step in and sue to get species protected.”  The northern spotted owl is listed as threatened under the Endangered Species Act. It faces extinction due to the loss of old growth forests and the invasion of the barred owl in the Pacific Northwest and northern California.

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In lawsuit, groups ask that ‘Roadless Rule’ protections be put back in place for the Tongass

By Jacob Resneck
KNBA.org
January 5, 2021
Category: Forestry
Region: United States, US West

A coalition including environmental groups, Tribes and fishermen filed a lawsuit to restore Roadless Rule protections to 9 million acres of Tongass National Forest.  Alaska’s governor and Congressional delegation applauded the Trump administration’s decision to exempt the Tongass from the Clinton-era Roadless Rule, which restricts development on federal forestlands. Supporters say the rollback will boost Southeast Alaska’s ability to log trees, extract minerals and boost hydroelectric energy production on federal forestland.  But a coalition of Southeast Alaska Tribes, fishermen and environmentalists argue the decision disregarded overwhelming opposition from Alaskans for the sake of a few hundred timber jobs.  Kate Glover, a Juneau environmental attorney with Earthjustice, says the U.S. Forest Service’s environmental review is fatally flawed. She says the rollback of the Roadless Rule was in part justified by helping Southeast Alaska’s logging industry.

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Trump administration ends Endangered Species Act protections for gray wolves

By Mark Freeman
Mail Tribune
January 4, 2021
Category: Forestry
Region: United States, US West

The Rogue Pack and other gray wolves in Western Oregon are now under state jurisdiction after the federal government formally removed gray wolves in the lower 48 states from federal Endangered Species Act protection, according to a Monday press release from the Oregon Department of Fish and Wildlife. But no immediate impacts on wolf management are expected as the state of Oregon awaits conservation groups and the federal government to slug it out in federal court on the merits of the delisting that was announced less than three weeks before the President Donald Trump’s tenure ends. Anticipated for more than a month, the move puts all of the state’s management of wolves under the Oregon Department of Fish and Wildlife’s 15-year-old Oregon Wolf Conservation and Management Plan.

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New partnership for effective digital training in the forestry industry

Semcon
January 5, 2021
Category: Forestry
Region: International

Xtractor, which is part of Semcon Group, has embarked upon a new partnership with Biometria, a key stakeholder in Swedish forestry. A new learning management system (LMS) will make Biometria’s digital training courses more modern and effective. In the long run, this will give more people access to the knowledge they need to keep our forestry industry running. Digital learning is becoming increasingly important for many companies. It permits greater flexibility while also being more cost-effective and eco-friendly, as there for instance is less need for travel. Moreover, it is a good way of ensuring that staff and other stakeholders have access to exactly the knowledge they need. …In the first stage of the partnership, the LMS will be available for Biometria’s member companies and customers, with trainings such as scaling of timber and harvester audits. Emphasis will also be on training courses resulting in certification. 

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