By Adam Berls

forestry

‘A bright future’: Minister of Forests says about industry after recent closures, curtailments

May 22, 2024 | 3:09 PM

PRINCE GEORGE — It has been just under two weeks since Canfor announced the devastating news that a production line at Northwood Pulp Mill would be indefinitely curtailed as well as the closure of the Polar Sawmill in Bear Lake, affecting hundreds of workers and jobs. B.C.’s Minister of Forests spoke with CKPG News about the decisions made by Canfor as well as one of the long-standing issues that government and industry have fought over, access to fibre.

Bruce Ralston, Minister of Forests since December 2022, said that forestry is a “fundamental industry and generates jobs and employment throughout British Columbia”, adding that he thinks forestry does have “a bright future.”

Canfor said in their news release at the time that “the policy and regulatory landscape is shifting and it has made it difficult to predict operating conditions.” President and CEO of Canfor Pulp, Kevin Edgson told CKPG News earlier this month that it would be “disingenious to say that the curtailment at Northwood was market related.” However, Ralston says that prices do play a role.

“The line is that prices are not determined above the decision, but when you have prices that fall below the cost of production, you can’t continue at that level for very long.” – Bruce Ralston, Minister of Forests

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Canfor says that a “persistent shortage of economic fibre” led to the “closure or curtailment of a number of sawmills”. They also state that while B.C. has “a sufficient supply of timber available for harvest, confirmed by the Allowable Annual Cut set by BC’s Chief Forester, the actual harvest level has decline dramatically in recent years.” According to Canfor, the actual harvest in 2023 was 42% lower than the allowable cut.

When it comes to Canfor’s decision to suspend reinvestment in Houston, Ralston said that Canfor wanted assurances to access to fibre in the area. Ralston said that “they wanted strong assurances, and I gave those strong assurances repeatedly, so I am very surprised by their decision on the Houston mill, because there is fibre available for that mill if it goes forward.”

Ralston also mentioned that the government is “doing their very best to help companies with fibre” and thinks the industry “broadly knows that.” He cited the BC Manufacturing Jobs Fund, which is designed to “help manufacturing companies modernize, innovate, and grow by providing funding for capital projects in all regions in B.C.”

The program welcomes applications from all manufacturing sectors, but “there will be a particular focus on helping the forestry sector retrofit and develop new, sustainable value-added business lines that reduce dependency on old growth logging and make innovative use of biomaterials.”

The indefinite curtailment of one production line at Northwood Pulp, and the permanent closure of Polar Sawmill will affect approximately 400 people.

Pattison Media is owned by Jim Pattison Industries, a majority shareholder in Canfor.

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X: @AdamBerls

Email: Adam.Berls@pattisonmedia.com