Sorry State of Affairs in the Forestry Industry

[britman101]

Sorry state of affairs in the Forest Industry in BC. From the link below the writer does not hold out much hope for the forest industry in B.C.

https://www.princegeorgecitizen.com/...ayoffs-6370223

Have to wonder where did all the money go when the lumber prices went through the roof.

And more information to digest on the state of the forest industry in this province:

the finger pointing and “it’s not our fault” excuses from Canfor were as loud as a chainsaw from the outset of the company’s Wednesday announcement that it was axing its pulp line at its Prince George Pulp and Paper Mill, along with the 300 jobs that come with it.
It’s because of the closed sawmills in the Prince George area (Canfor’s choice), they said. It’s because of the reductions in the annual allowable cut (the B.C. government’s choice) and the difficulty getting “cost-competitive” fibre, they said.

• Recommended reads for you:
  
  
• Mayor Yu weighs in on Prince George Pulp and Paper mill closure
• Pulp line at Prince George Pulp and Paper closing permanently
  

The “cost-competitive” part means fibre at a price where Canfor can still make a substantial profit.
Like their $211.5 million in earnings in the third quarter of 2022, the $644.3 million in earnings the quarter before that and the $839.9 million in earnings during the first three months of last year.
As an industry analyst explained in a Glacier Media story last October about the crisis in the B.C. pulp sector, a lot of fibre gets left in the bush after logging because it’s cheaper to burn it than haul it out and take it to the nearest pulp mill.





In other words, we’ve arrived at this week because of the greed and incompetence of the big forest companies and the provincial government more interested in milking every cent out of the sector on a month-to-month basis to bolster their revenues than on the long-term management and protection of this invaluable resource.

[adriaticum]

No, everything is perfect according to the forestry gang on HBC.
BC will go the way of the Puebloans in the Chaco Canyon.

[broke]

When I started working in the forest industry over 2 decades ago (ironically for Canfor), the companies put a ton of investment into BC mills. We had state of the art sawmills, second to none. The last decade has seen every up cycle of lumber prices spent in the US. Canfor and West Fraser are now the proud owners of dozens and dozens on mills south of the border. Will any PG families get transferred to Louisiana...???

Companies have no obligation to be loyal to one jurisdiction or another, so we only can hope they invest and stay in BC. And when they don't we'll have to find other places to work (I left forestry for mining a decade ago). The govt thinks too short term, is easily influenced and every ~15 years flips between 'capitalist far right' to 'socialist far left'. Hard to manage a resource like our forests with no long term commitment from the companies and no vision from our politicians beyond the next election cycle.

Sad for the PG families for sure, but at least there's lots of work up north.

[Gun Dog]

My dad worked for Evans Forest Products in the 60's at a plywood mill on the Fraser River in Vancouver. They closed in the 70's. It was simple - the cost of production in BC was higher than the cost of production at their US mills. Lumber is a commodity so the cheapest producer makes the most money.

BC has a thriving TV & movie industry because tax incentives makes us the low cost destination. Too bad the government doesn't care about dirty resource industries.

[dakoda62]

Vaagen in the West Koot's has curtailed operations also, they do not have a timber licence and as such have to buy on the open market, can't afford so shutting down.

[Imdone]

Again, government is the one to point most of the blame on for the state we are in now with possibly thousands of forestry workers.
Provincial and Federal government allowing huge exports of raw material to be milled elsewhere.
It's sickening and sells out the residents of this province and country.
I wouldn't be advocating for anyone I know to get into this industry from a faller to a mill worker to a truck driver.

[VLD43]

I worked in the forest industry back in the late 70's and early 80's for about ten years. It was apparent then that the forest industry was dying. Total mismanagement on the part of Government. You used to have to run a mill in order to have a tree farm license, but not now. Back then people were raising concerns with all the raw logs leaving on freighters and no one listened. Since then things have gone down hill because of little or no Government regulation or oversight. Past Governments never had the spine to slow things down and tighten regulations, because of the backlash from unemployed loggers and communities. The logging companies are a business and will go where ever they can make a profit and keep their costs down. its you and me who get to suffer the damage done by the forest industry, whether its washouts, erosion, habitat damage and loss or lack of investment. Back in the day the Government allowed the forest companies to cut down lots of old growth fir and sell it to Japan at wholesale prices, just to keep people employed. That stuff was high value wood, and instead of leaving it standing and selling at a premium, they gave it away. Now you have people like Mosiac (Teachers pension Fund) who advertises themselves as a "Land Management Company" clear cutting like there is no tomorrow and then loading it on ships for China. You cant blame them as they are looking after their pension investments for their cliental as anyone would expect if they had money invested in that company. And like any smart company when the trees are gone and they have sold off all the logged land they can, they will move on to their next investment. The only thing that allows them to do that is the Government you elect and either hold accountable or not. Being complacent with your democracy has consequences.

[MRP]

In the past years 7 PG mills have closed counting the plywood plant the burned and not rebuilt 4 are left. Rape and pillage then move on. Industry at its best no different the east coast Cod and B.C. salmon.

[ACB]

When I started in the pulp and paper industry in the mid 70's there were around 13,000 pulp and paper workers in B.C. in the 2 unions and the IWA was around 60,000 members in B.C.. What happened? The forrest companies were allowed to sell and ship raw logs over sea's. There were thousands of jobs that went on those boats with the logs and the trucks that go south of the border.

[ACE]

When I started in the pulp and paper industry in the mid 70's there were around 13,000 pulp and paper workers in B.C. in the 2 unions and the IWA was around 60,000 members in B.C.. What happened? The forrest companies were allowed to sell and ship raw logs over sea's. There were thousands of jobs that went on those boats with the logs and the trucks that go south of the border.

Less need for newsprint now with electronic media.
Log export subsidized domestic availability for the mills.