Here it is: another short, snappy video in a series of edited footage from a recent trip to a private managed forest on southern Vancouver Island.
The video above shows Joey, a technician in this orchestra of well-trained harvesting engineers, operating yet another instrument.
First, Dale impressed us with his harvester/processor skills. Then, we saw Bill gracefully maneuvering a feller buncher. After that, Grant showed us around a cable harvesting system, and we got to see Dale (there’s two of them) work magic with a grapple yarder.
Last, but not least, Joey demonstrates the art of stacking logs onto trucks with a loader (also known as a juicer).
It’s worth mentioning again: all the machines these guys operate are built, by Madill, right here on Vancouver Island, and have been since Sam Madill founded the company in 1911.
The logs you see in the video are headed for TimberWest’s Shoal Island log sort.
Thanks to Dave Barker and the workers from Malloch Logging for showing us around.
Visit the PFLA Facebook page to see more photos of Joey operating the loader.
BC log exports was a hot topic last week – in the legislature, in the newspapers and in the spirited conversations of workers, families and communities who depend on the forest industry for their livelihoods.
Like most hot topics, the log export debate is often riddled with misinformation, rhetoric and assumptions. Here at the PFLA blog, we represent people who directly benefit from private forestry operations. We’d like to take a few moments to clear things up from our perspective.
6 Basic Facts Everyone Should Know About Log Exports in BC
1. Log exports are essential to private forestry.
Without access to log export markets, none of the 3,000-plus people directly employed in the stewardship of BC’s coastal private managed forest land would be working today.
2. A surplus of timber is available to sawmills, pulp mills and value-added manufacturers on the BC coast.
We’ve said it before, but we’ll say it again: there is no log shortage. In fact, there’s a surplus of logs. Here’s the math:
Timber available for harvest and processing = 24 million cubic meters
Domestic processing capacity = 16 million cubic meters
The difference = 8 million cubic meters of surplus logs
3. Domestic sawmills need to take responsibility for their own “supply” problems.
There are plenty of logs available on the BC coast. If domestic sawmills want to ensure an adequate supply of logs, there are a number of ways to do it:
Offer competitive log prices.
Fully harvest public land timber quotas.
Buy logs on the open market from First Nations, market loggers, community forests, woodlot licences and BC Timber Sales (BCTS) operators.
Bid directly for timber available through BCTS timber sales.
4. Log prices are the issue, not log shortages.
BC has the world’s lowest log prices. Domestic sawmills offer prices lower than production costs. The result: No incentive to produce and sell logs to domestic sawmills. Here’s some more math:
Cost per cubic meter to produce a log from coastal public lands = $78
Typical log price offered (Teal Jones) = $60
Recent low-ball log price offer = $43
Average price of the same logs sold to export customers = $90
5. Log exports are NOT the cause of mill closures and job losses.
In fact, without log exports domestic mills wouldn’t have any timber at all. There would be no forest stewardship and no log production. The ability to sell some logs at a premium (log exports) is the only reason it’s economically viable to sell other logs, at artificially low prices, to domestic mills. Jobs, economic activity, crown land stumpage and tax revenues all grind to a halt without log exports.
6. There’s no such thing as a raw log.
Manufactured logs are no different than any other product – lumber, pulp, poles, veneer – they are but one in a mix of many forest products. A product, that at this point in time, plays an essential role in keeping the boat of BC forest stewardship afloat.
Jim Girvan’s article, Log Exports: The Controversial Economic Driver, appeared on forestindustry.com in early December. Along with a reasoned account of B.C.’s coastal export market, the article includes bar graphs and statistical information that add a depth of analysis to the log export discussion we think you’ll find interesting.
Below are a few highlights, but you can (and we recommend it) read the complete article, here.
A few highlights (paraphrased):
“We can debate which logs to export and what the process should be to export them, but what we shouldn’t be doing is talking about banning log exports.”
“Over 4,000 coastal BC jobs are supported by log exports alone (assuming an economic multiple of 0.81 jobs per 1000 cubic metres harvested, direct and indirect).”
“If every coastal mill got every log they need to operate fully, there would still be eight million cubic metres of potential harvest left over, some of which is exported today.”
“The cost to deliver coastal logs to mills is too high when we try to use those logs to make lumber. The raw material (log) cost alone for producing lumber is $296. Today, China consumers pay $255 for lumber.”
“Log exports are just another market for one of many products produced by the coastal BC forest industry. Manufactured logs are no different than lumber, pulp, poles or veneer and they provide a significant contribution to the coastal and BC economy.”
“Without mills, prepared and able to pay what it costs to harvest our low value forests, there are no jobs to be created.”
Thanks to Jim Girvan for his thoughtful, reasoned perspective.
You may have noticed, the issue of log exports in British Columbia is contentious. Here at the PFLA blog, we’re committed to providing straightforward, factual information from the perspective of private forest landowners.
Given the current situation, we believe log exports are an integral component of BC’s forest industry (here). We’re not alone. Below you’ll find enlightening examples of other folks who think so too.
This Global TV News Hour video (November 7, 2011) tells the story of the transformation of the Lax Kw’alaams First Nations community – a transformation that couldn’t have happened without access to international markets.
We’ve also included a number of written testimonials* – the voices of forest operators and First Nations representatives reflecting on the impact of log exports to their communities.
“To put things very bluntly, from a Terrace area perspective, if log exports were banned today, we might as well close the doors and throw away the keys. Every contractor would immediately be shut down and all their employees laid off. Simple answer to a simple question.”
- Bill Sauer, North West Loggers Association
“The Heiltsuk economic Development Corporation, have scheduled 1,100,000 m3 in total under government licenses and agreements to be harvested in the next 10 years. Present market conditions only allow us to operate some of the time because of higher operating costs—even higher than in the North Coast area. The Vancouver log market will not pay enough domestically to allow us to operate. It is only the export sales that even give us a chance to operate in these times. Take this away from us and we are down completely. Coastal communities in isolated areas need the certainty and access to Global markets, (presently provided by the ability to export logs,) remove this from their options and I feel forestry will be virtually shut down and no longer a part of the local economy.”
- John McLaughlin, Mgr, Heiltsuk Coastal Forest Products Ltd.
“If log exports were banned our company would likely receive about 30% less work and would not find it profitable to bid on the BCTS system.”
- Graham Lasure, W.D. Moore Logging Co. Ltd.
“CTR conducts logging and silviculture activities in the Kalum and Skeena TSA for domestic and export sales. During a single export cycle, CTR injects in excess of $1.0 million into the Prince Rupert economy and approximately $2.2 million into the Terrace economy. This is approx. $3.2 million spent within BC every five weeks or over $33.0 million per year. This direct local expenditure goes to fallers, truckers, sort yard employees, stevedore crews and local professional services. A ban on log exports would eliminate CTR’s export sales function and would eliminate approximately 260 direct jobs.”
- Dave Jackson, Consulting Services Ltd.
*Courtesy of the Truck Loggers’ Association (TLA) September 2011 newsletter. You can see the whole article here.
The question is not whether log exports help these operations make a profit, or make a better profit, but whether log exports help these operations survive, or go out of business. In other words, log exports are presently an integral part of BC’s forest industry.
Next up at the PMFLC forest practices workshop? A trip to TimberWest’s Shoal Island log sort, nestled beside the bustling Catalyst pulp mill in majestic Crofton, B.C.
Under the thoughtful tutelage of Geoff Martin, a log marketer from TimberWest, workshop participants learned about marketing, manufacturing, sorting and handling logs.
A detour past the “sin bin” quickly revealed just how important it is to take good care of your logs. Ignorance can lead to disrespected, damaged and mistreated logs that nobody wants.
Here are Geoff Martin’s Top 5 Tips to Help Capture the Best Value From Your Logs (or, how to avoid the “sin bin”):
1. Educate yourself and work with experts. There’s a lot to know and learn about harvesting, handling, manufacturing and marketing timber. The more you know the better position you’re in to get the best value for your logs.
2. Know where your timber is going before you harvest it. Different markets require different log lengths. Find your buyer and ask their preferred length before you harvest your timber. Harvesting to match the buyer’s preference gets the best value for your logs.
3. Don’t leave your logs on the ground for too long. Think of your logs as “spoilable” fresh produce. The longer your logs lie on the ground the greater the chance bugs, water, rot and weather will cause damage and deteriorate the value of your logs.
4. Don’t put your red alder trees through a log processor. Processors are efficient, but they easily cause damage to red alder logs. In the end, the damage to the logs decreases their value and negates the efficiency of the processor. A chainsaw is a much better idea for maintaining the value of your red alder logs.
5. Spend the time to love your logs! It takes up to 100 years to grow a marketable tree. That’s a lot of time. It makes sense you’d spend some of that time making sure you get the best value for your logs.
Check out the video below for a closer look at the Shoal Island log sort.
Thanks to Geoff Martin for his time, his knowledge and his passion for logs.
Did we miss anything? Leave a comment below: your own tips, advice and helpful hints for maintaining the best value for your logs.
The rally is scheduled for September 28, 2011. According to the Nanaimo Daily News, hundreds of loggers, and other concerned citizens, opposed to log exports will gather at the Pulp, Paper and Woodworkers of Canada (PPWC), Local 8, union hall before marching through the streets of downtown Nanaimo, B.C.
While the PFLA commends the spirit of Mr. Bercov, and his associates, we’re quite frankly a bit baffled by their opposition to log exports.
Here’s why:
1. B.C. has a surplus of timber.
That’s right, a surplus of timber. Each year, millions of cubic metres of trees go unharvested. These are trees planted, grown and approved for harvest as part of the annual allowable cut (AAC). We’ve said it before, but we’ll say it again: there is no shortage of timber in B.C.
2. B.C.’s domestic market for logs has collapsed.
Sawmills on the B.C. coast don’t have the capacity to process the available timber. Present processing capacity is 15.5 million cubic metres; available timber is 24 million cubic metres (that’s a difference of 8.5 million cubic metres per year, or approximately double the log export volume).
3. B.C. mills buy logs at prices lower than log production costs.
What it costs to plant, tend and harvest trees exceeds the log prices offered by struggling B.C. sawmills. Uncompetitive mills use the government’s surplus test policy to obtain logs at reduced domestic prices, often significantly less than their international competitors.
4. The log export business is keeping the coastal forest industry alive.
Isn’t this ironic? Without access to a better price for a portion of the harvested timber (the portion exported in the round to international markets) nobody could afford to harvest trees. If nobody goes to work in the woods there are no logs for domestic mills.
5. B.C.’s forest workers, families and communities count on getting the best price for timber.
Relying on the domestic log market is not a viable option. The woods support thousands of rural jobs, but only when log prices are high enough to cover the costs associated with planting, tending, managing, and harvesting timber.
In light of what we consider to be pretty compelling information, we encourage Mr. Bercov, and his associates, to re-evaluate rallying against log exports. Forestry in B.C. is in a state of flux, now more than ever, it’s important to consider the facts, as they are.
What do you think? We look forward to your comments and suggestions.
Make yourself comfortable. There’s a lot to report.
The PFLA continues to work diligently with federal, provincial and local governments on an unprecedentedly long list of public policy developments. In fact, PFLA Regulatory Committee members can’t recall a time when the association’s been consulted (or, more accurately, insisted on being consulted) on so many policy areas at once.
The objective of PFLA’s involvement, in all cases, is to:
remind government that private land exists
demonstrate why policy distinction is necessary for private land
ensure our communication with all forms of government is consistent and ongoing
promote and advance the PFLA mission
demonstrate we are responsible stewards working to balance environment, community and commerce
To those of you participating, thank you for your diligence, persistence, questions, comments, hard work and support. To those of you interested in getting involved, we look forward to hearing from you.
Here are a few highlights from our current public policy activities:
1. Fire Prevention and Cost Sharing Agreements
The Ministry of Forests, Lands and Natural Resource Operations – Protection Branch is reviewing its operations; particularly, the financial aspects of Fire Prevention Cost Sharing Agreements with BC’s forest owners and other land managers.
The review process is in early stages and the details are unclear, but the core issue is government’s concern about spending more money than it collects from program participants.
A conversation with key stakeholders is in the works, and PFLA is involved and committed to representing the perspective of private forest owners.
2. Off Road Vehicles Act & Regulations
The government is in the process of regulating off-road vehicles in BC.
PFLA is engaged in the process with the objectives of:
increasing government’s capacity to enforce the law without eroding private property rights
You can find more information about the ORV Vehicle Management Framework here.
3. Private Managed Forest Land Act
Managed Forest (MF) owners on Galiano Island are in the bizarre, and uniquely ugly, position of owning and caring for forest land on a beautiful island where restrictive local government bylaws prevent them from living legally in their forests. Not even one dwelling per parcel, some of which exceed hundreds of acres.
PFLA has found no other example of this kind of extreme and hostile restriction in BC, Canada, or North America.
The Private Managed Forest Land (PMFL) Act is intended to foster stewardship of private forest land by providing regulatory certainty, and maintaining forest management.
This is a provincial, not local, government priority. The right to reside on MF land is a key component of the PMFL Act.
In a recent legal challenge, the judge found that the province’s intention to protect owners’ right to reside on their land is abundantly clear in the PMFL Act; however, the legislation lacks the words necessary to affirm the provincial jurisdiction over forest management in the case of Galiano Island.
The judge noted the necessity for the province to correct this problem.
Despite many years of communication from forest owners, this situation has not improved.
PFLA finds local government interference of this magnitude is extremely restrictive and a strong disincentive to responsible forest stewardship.
PFLA is working with Galiano MF owners and government. We look forward to seeing government do the right thing: change the wording to make the policy intent of the legislation undeniably clear.
The federal government was working on a model to regulate the incidental take of migratory birds: options included BMPs and various permits.
The intention was to provide all Canadian land managers, who come into contact with migratory birds, with a clear and legal process, or permit, to comply with the stated provisions of the Migratory Birds Convention Act.
In October of 2010, the federal government announced it would no longer work on regulations to permit the incidental take of migratory birds.
PFLA is working with the Canadian Private Forest Landowners Council (CPFLC), and other forest and land management groups, from across Canada, to advocate for private forest owners on this issue.
The provincial government has established a task force to make recommendations regarding the protection of species at risk in BC.
PFLA is engaged in this process and makes it a priority to help government understand the issue from a private land perspective.
We are encouraged to report that the task force recognizes private land is separate and distinct from public land, and also acknowledges the need for education and incentives.
Again, this is an ongoing policy process, and PFLA is in regular communication with government to ensure the perspective of private forest owners is represented.
The province is in the process of modernizing the Water Act: a piece of legislation with significant implications for all landowners; particularly, Managed Forest owners who conduct work in and around streams and stream crossings.
Historically, PFLA has pro-actively partnered with government to raise awareness and promote the value of responsible streamside management.
We continue to advocate strongly from the private land perspective.
PFLA is closely involved in the current legislative review process, and committed to working with government to find a balance between environment, community and commerce.
7. BC Log Export Policy Review
BC’s Ministry of Forests, Lands and Natural Resource Operations recently initiated another review of log export policy (more details here).
PFLA is engaged in this process and consistently lobbies, both federal and provincial governments, for the right of private forest owners to obtain fair value for our logs.
Log export restrictions impact the value of our land and our trees. The trees we invest considerable time and resources in to plant, grow and harvest.
PFLA also strives to add balanced and factual information to public discussion and media coverage surrounding this issue (for example: response to Ben Parfitt; balanced Nanaimo Daily News article).
Thank you for taking the time to read through the PFLA public policy highlights.
While this is an exceptionally busy time for the PFLA Regulatory Committee, we’re happy to be engaged with elected officials, ministry staff, managed forest operators, and community members on so many levels.
Please let us know if you have any questions, comments or concerns. We continue to work hard to ensure the perspective of private forest landowners is represented, understood, and promoted throughout the policy process.
As always, we welcome, encourage, appreciate, and need your input: leave us a message below, send us an email, or give us a call.
There will also be plenty of opportunity for discussion at local PFLA community meetings: October/November 2011.
More details to follow soon, but tentatively, meetings are scheduled for:
• Victoria
• Nanaimo
• Courtney
• Vancouver
• Castlegar
• Kelowna
Ben Parfitt’s article How to Create Green Jobs in BC’s Forests appeared in the August 15, 2011 online edition of the Tyee (link to full article).
In a nutshell, Mr. Parfitt criticizes the BC forest industry for exporting raw logs to China. He argues that diversifying markets and value-added products are the vehicles we need to move this province, its forests and its communities forward to a better place.
We’re just as interested in improving the situation for BC forests and communities. In fact, we strive for the same worthy objectives as Mr. Parfitt: a sustainable forest industry and healthy sustainable forests.
To that end, we’ve taken the time to address some flawed logic, bad comparisons and misinformation Mr. Parfitt stumbled over on the way to a better place.
“We’re Shipping Primarily Non-processed Commodities to China” and Here’s Why
Economic realities dictate how markets work. The products Chinese markets want are logs and lumber. That’s why BC (and our competitors like the US, New Zealand and Australia) sell logs and lumber to China.
Fibre costs and fibre availability are not the limiting factors for value-adding in BC. Conversion costs are. Western Canada has some of the lowest log prices on planet earth. It also has the highest sawmill wages and the highest conversion costs on planet earth.
This is the same reason BC doesn’t export mobile phones and children’s toys to China. A high-cost jurisdiction cannot compete on value-added forest products into the Chinese market, or any market where the costs to manufacture goods are considerably cheaper.
Moving up the Value Chain: Why Comparing BC to Ontario and Quebec Doesn’t Work
Comparing Ontario and Quebec to BC is a bit like comparing an ocean to a lake. Sure, they’re both water, but they’re fundamentally different and exist in distinct environments.
BC’s eastern counterpartes operate with a different species mix (a greater proportion of whitewoods and temperate hardwoods) and a different product mix (newsprint, fine papers, value-added hardwood products).
Interestingly, eastern Canadian provinces are often net importers of logs from the U.S. In Quebec and Ontario there are no log export restrictions on private forest lands. This means, logs flow to the mills on either side of the border that add the most value, and can therefore offer the highest log prices.
This is the opposite of what’s going on in BC. Here, log export restrictions create artificially low log prices – the lowest on the planet. When domestic log prices are competitive there is no incentive to export logs.
Open competition for fibre compels innovation, efficiency, investment, improved utilisation, and ultimatley, increases the economic return to the forest.
“You can’t make forest products if you don’t have healthy numbers of healthy trees.”
BC has loads of healthy trees. Let us say it one more time for emphasis. There is no shortage of healthy trees in BC.
Yes, the harvest of lodgepole pine was accelerated to capture residual value in millions of trees killed by the mountain pine beetle epidemic. However, 100 million cubic meters of timber still went uncut.
That’s right, of the province’s annual allowable cut 100 million cubic metres of timber didn’t get harvested. That’s a lot of trees.
Currently, BC’s coastal timber harvest exceeds its annual coastal timber processing capacity by 8 million cubic metres.
We repeat: there are plently of healthy trees in BC. Trees that were planted and grown for the purpose of harvesting.
Some Raw Facts of Our Own:
• The current market price for lumber destined to China is $248 per thousand board feet. The price for logs (TO THE SAME MARKET) is $630 per thousand board feet.
• The cost of log production on the BC coast is between $400 and $630 per thousand board feet. You do the math.
• Banning log exports and limiting competition for fibre is the opposite of diversification.
• If a forest product is used in a manner that substitutes a high-carbon product like coal, oil, gas, steel, concrete, plastic or aluminum, the outcome is carbon-friendly.
• People don’t burn money. They don’t burn usable logs either. People burn logs to manage forests because current market conditions don’t make it economically viable to use them other ways.
What do you think? We look forward to your comments and suggestions.
As mentioned at the meeting, the Ministry of Forests, Lands and Natural Resource Operations is happy to receive written submissions, suggestions, and input.
If you have any other questions, or want more information, leave us a comment below – we’ll get back to you.
Or, contact Rod Bealing: rod.bealing@pfla.bc.ca
By Dave Lewis, Times Colonist
June 1, 2011
………………………………………..
I continue to read letters stating that mills are shutting down because of a lack of timber. Mills that can only pay $60 for logs that cost $80 do tend to run out of timber pretty quickly.
On the coast, there is a 15-million-metre timber processing capacity and our sustainable harvest level is 24 million metres. There is no shortage of timber for local mills. There is a shortage of people prepared to lose money in order to sell it for less than it costs to harvest it.
Logs are exported because foreign buyers can pay $80 for timber. Log exports are a product of uneconomic mills, not the cause of them.
Would I rather see local sawmilling jobs? Absolutely. But until the domestic manufacturing sector can afford to pay $80 for timber that costs $80, we will continue to shut mills.
If we restrict log exports, we will not improve the local mills’ ability to pay $80. Instead, we will just add to the amount of our sustainable timber that is never harvested and will continue to lose harvesting jobs.
While the cost to harvest timber continues to rise and the ability of domestic mills to pay that cost falls, we will continue to see mill closures and job losses.
