Logging in B.C.’s Cariboo region: high log prices and low lumber prices have led to mill curtailments. (Black Press files)

Logging in B.C.’s Cariboo region: high log prices and low lumber prices have led to mill curtailments. (Black Press files)

B.C. lumber mills struggle with shortage of logs, price slump

Signs of recovery after U.S. market swings, industry executive says

A wave of B.C. sawmill shutdowns and layoffs is a combination of reduced log supply, high log prices and a steep drop in lumber prices, forest industry executives say.

Lumber prices hit a record of $650 per 1,000 board feet early this year as U.S. housing demand ramped up and B.C. producers piled up lumber due to a shortage of rail cars, partly caused by increased oil-by-rail shipments.

That lumber inventory glut got moving as other producers switched from Asia to the U.S. for the high prices, and then the price fell below $300, said Susan Yurkovich, CEO of the B.C. umbrella group Council of Forest Industries.

“We’re looking for some price improvement,” Yurkovich told Black Press in an interview this week. “We’ve seen it improve a little bit over the last number of weeks, but that doesn’t change the fundamental issue around availability of fibre, in the Interior in particular, and the high fibre costs across the province.”

The log shortage is the tail end of a 15-year decline due to the mountain pine beetle epidemic in the B.C. Interior. Forests Minister Doug Donaldson said in an interview the job losses are partly a result of abnormally high salvage logging, and now the reduced allowable cut on Crown forest land is showing its effects.

Forest fires interrupted logging, but 2.4 million cubic metres of fire salvage timber were approved this summer for sawmills, Donaldson said.

“We’re working with the community transition action team to identify skills training that could occur,” Donaldson said. “We want to try to keep people in their communities if they desire, and find jobs that are there.”

The province has increased land recovery spending by $22 million over three years, and that means “boots on the ground for reforestation,” he added.

Quesnel has been particularly affected, after Tolko Industries announced a shutdown of its sawmill there in October, affecting 100 direct jobs and associated logging. Tolko had previously shut down its Merritt sawmill, as B.C. companies adjusted to reduced allowable timber cut.

Then West Fraser Timber announced last week it is ending its third shift at its Quesnel and Fraser Lake sawmills, with more than 100 layoffs, a move described as permanent by B.C.’s largest lumber producer.

Conifex began a shutdown of its Fort St. James mill on Nov. 12, saying it will last at least four weeks.

Interfor announced in October it is reducing production by about 20 per cent for the fourth quarter at its mills in the B.C. Interior, with reduced operating days and extended weekend and holiday breaks. Interfor has mills at Grand Forks, Castlegar and Chase.

Canfor Corp. announced Nov. 1 it is curtailing its B.C. mill operations by about 10 per cent during the fourth quarter of this year. Canfor president Don Kayne said the decision is a result of “log supply challenges following another difficult wildfire season, uncompetitive log costs and declining lumber prices.”

Teal Jones Group, with mills in Surrey, the Fraser Valley and Salmon Arm, has had a series of week-long shutdowns this year, also mainly due to a shortage of logs.

Yurkovich and Donaldson are joining B.C.’s annual forest industry trade mission to Asia in December, with stops in China, Japan and Korea. Donaldson said the focus continues to be on not just increasing Asia lumber trade, but selling more sophisticated wood products than lumber.

“That’s where the long-term future lies, in adding more value,” Donaldson said.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureforestry

Just Posted

Two ambulances and a medevac helicopter are on scene at Taylor River Flats rest area on Highway 4 due to a serious motor vehicle incident. (PHOTO COURTESY MAGGIE BROWN)
Highway 4 reopens after accident at Taylor River Flats

Multi-vehicle crash had closed highway to west coast

Robert Gunn of Alberni Climate Action loads garbage discovered in the Alberni Inlet around Cous Creek into his canoe during a recent ocean shoreline cleanup. (SUBMITTED PHOTO)
Alberni Climate Action group creates NIC scholarship

Students attending college full time may apply through NIC

The Rollin Art Centre is holding children’s art camps this summer. (SUBMITTED PHOTO)
ARTS AROUND: Celebrate art in the garden

Rollin Art Centre will host art event on Saturday, June 26

The King Edward Liquor Store sponsored the Alberni Golf Club’s event on June 13. From left to right are Ken Porteous (manager of the King Edward Liquor Store) and Alberni Golf Club Members Don MacGowan, John Robbins and Wayne Cheveldave. (SUBMITTED PHOTO)
ALBERNI GOLF: Doug Cheetham records hole in one

Next Sunday is an open day with the best gross and the best net up for grabs

Francine Cunningham is an award-winning Indigenous writer, artist and educator. (SUBMITTED PHOTO)
Electric Mermaid online event hosts panel of Indigenous writers

Event takes place through Char’s Landing in Port Alberni

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

Queen’s counsel Paul Doroshenko, a Vancouver lawyer, has been suspended from practice for two months after admitting that his firm mismanaged $44,353.19 in client trust funds. (Acumen Law)
High-profile B.C. lawyer suspended over $44K in mismanaged client trust funds

Queen’s counsel Paul Doroshenko admits to failing to supervise his staff and find, report the shortage

House Majority Whip James Clyburn, D-S.C., center left, reaches over to Rep. Maxine Waters, D-Calif., joined by Speaker of the House Nancy Pelosi, D-Calif., center, and members of the Congressional Black Caucus as they celebrate the Juneteenth National Independence Day Act that creates a new federal holiday to commemorate June 19, 1865, when Union soldiers brought the news of freedom to enslaved Black people after the Civil War, at the Capitol in Washington, Thursday, June 17, 2021. It’s the first new federal holiday since Martin Luther King Jr. Day was created in 1983. (AP Photo/J. Scott Applewhite)
Biden to sign bill making Juneteenth a federal holiday

New American stat marks the nation’s end of slavery

Athena and Venus, ready to ride. (Zoe Ducklow - Sooke News Mirror)
Goggling double-dog motorcycle sidecar brings smiles to B.C. commuters

Athena and Venus are all teeth and smiles from their Harley-Davidson sidecar

Kimberly Bussiere and other laid-off employees of Casino Nanaimo have launched a class-action lawsuit against the Great Canadian Gaming Corporation. (Chris Bush/News Bulletin)
B.C. casino workers laid off during pandemic launch class-action lawsuit

Notice of civil claim filed in Supreme Court of B.C. in Nanaimo against Great Canadian Gaming

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

John Kromhoff with some of the many birthday cards he received from ‘pretty near every place in the world’ after the family of the Langley centenarian let it be known that he wasn’t expecting many cards for his 100th birthday. (Special to Langley Advance Times)
Cards from all over the world flood in for B.C. man’s 100th birthday

An online invitation by his family produced a flood of cards to mark his 100th birthday

Most Read