{"id":78147,"date":"2019-09-24T08:52:51","date_gmt":"2019-09-24T08:52:51","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/crisis-bc-forestry-industry-deepening\/"},"modified":"2025-09-19T08:51:42","modified_gmt":"2025-09-19T08:51:42","slug":"crisis-bc-forestry-industry-deepening","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/crisis-bc-forestry-industry-deepening\/","title":{"rendered":"Crisis in BC forestry industry deepening"},"content":{"rendered":"
\n

British Columbia's forestry industry is going through a deeper crisis, led mostly by high log prices and low timber supply. This has seriously affected the communities in the province and lowered the economy.<\/strong><\/em><\/p>\n

According to CTV News, many companies\u00a0have announced shutdowns or curtailments in more than two dozen mills in the province, putting hundreds out of work and slashing economic growth predictions. Advocates are calling for urgent government action to stem the bleeding.<\/p>\n

\"Something needs to change immediately or these small communities that don't have other employers are going to wither and die<\/em>,\" said Marty Gibbons, president of United Steelworkers Local 1-417, based in Kamloops, B.C.<\/p>\n

Interior communities, including Merritt, Clearwater, Vavenby and Clinton, have already been forced to give up to hundreds of forestry workers, while the\u00a0largest driving factor is the province's complex stumpage system, that results in high fees.<\/p>\n

\"These are private businesses. If they can't turn a profit, there's no reason for them to run. Right now, it's not the markets that are the issue. It's the cost of the logs<\/em>,\" Gibbons added.<\/p>\n

Stumpage is a fee businesses pay when they harvest timber from Crown land. The B.C. government calculates stumpage annually, so the system is less responsive than in Alberta, where monthly adjustments are made, he further explained.<\/p>\n

The Forests Ministry said stumpage fees are based on market demand and the current rates reflect the scarcity of timber supply that has resulted from the mountain pine beetle outbreak and been exacerbated by several severe fire seasons.\u00a0Intervention in the stumpage system would weaken the legal case in the appeals of the duties imposed by the United States on softwood lumber from Canada, the ministry said in a statement, CTV News reported.<\/p>\n

\"It is well-known that any interference in B.C.'s market-based timber pricing system would lead to an increase in softwood lumber duties levied by the U.S.<\/em>,\" it said.<\/p>\n

Because most of the forest land in British Columbia is publicly owned, companies have long-term tenure rights and the government charges them stumpage to harvest trees. In contrast, most land in the U.S. is private and companies face costs associated with replanting.<\/p>\n

\"That's what the stumpage fee is all about<\/em>,\" explained Ken Peacock, chief economist of the Business Council of B.C. \"It tries to equate, if it was privately owned, what the cost would be to operate and manage and reforest the land<\/em>.\"<\/p>\n

Peacock added the high cost of logs is the major cause of the industry's decline in B.C. He also blamed the mountain pine beetle and record-breaking 2017 and 2018 fire seasons for decimating supply.\u00a0The policies of Premier John Horgan's government are also breeding uncertainty, Peacock argued, according to CTV News.<\/p>\n

At the moment, the Canadian government is working on developing a\u00a0caribou habitat protection plan as to\u00a0restrict the access to northern timber. It is also promised to\u00a0implement the United Nations Declaration on the Rights of Indigenous Peoples without explaining how companies are meant to fulfill its requirement of \"free, prior and informed consent<\/em>\" from First Nations.<\/p>\n

As\u00a0Peacock also explained,\u00a0\"the picture here in B.C. is we are a very high cost jurisdiction. It's actually less costly to operate in Alberta and companies can make a profit milling lumber and producing two-by-fours in Alberta<\/em>.\"\u00a0On top of all that, market conditions in North America are softening.<\/p>\n

Forestry is the no. 1 engine that drives B.C.'s economy with nearly $15 billion in annual exports, representing one-third of the province's international merchandise exports and the largest segment by far, said Peacock.<\/p>\n

The Business Council of B.C. just trimmed its 2019 economic forecast in part because of the forestry downturn, from 2.2 to 2 per cent growth, he said. The B.C. government also just cut its forecast to 1.7 per cent, citing mill closures in part.\u00a0The Forests Ministry said the challenges the province is facing have been in the making for many years and the previous Liberal government ignored them and failed to help the sector and communities adapt, CTV News reported.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

British Columbia’s forestry industry is going through a deeper crisis, led mostly by high log prices and low timber supply. This has seriously affected the communities in the province and lowered the economy. According to CTV News, many companies\u00a0have announced … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":63203,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4713,4716,4715],"tags":[4018,4079,3273,3393],"class_list":["post-78147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies-in-the-timber-industry","category-latest-trends","category-market-analysis","tag-bc","tag-curtailments","tag-forestry","tag-industry","topic-forestry","topic-sawmilling","area-north-america"],"acf":[],"yoast_head":"\nCrisis in BC forestry industry deepening - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/crisis-bc-forestry-industry-deepening\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crisis in BC forestry industry deepening - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"British Columbia's forestry industry is going through a deeper crisis, led mostly by high log prices and low timber supply. 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