Page 9 - Georgia Forestry - Issue 1 - Winter 2022

British Columbia (BC), long a primary supplier of softwood lumber, experienced a beetle infestation in the late 1990s. Though supply increased in the 2000s as they tried to use downed trees, the result is an inability to produce lumber at the same level as in the past.
In fact, the Canadian province has gone harvests but will be unable to make up from supplying 30% of North America’s for the declines in British Columbia.
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The reduction in BC’s production volume in just 5 years
lumber to just 16%. And there is an additional threat as the U.S. prepares to double a tariff on Canadian softwood.
The chart at left shows not only how the lumber capacity has declined in BC, but also how the annual allowable cut is lower than in years past. Production is expected to rise slightly, but is still much lower than previous production years.
Not only is production significantly lower, but Canada’s ability to increase harvest and production is limited, as illustrated in the chart above. Alberta is already harvesting near their limit. The other provinces have room to expand
According to Wood Resources Interna- tional, a reduction in the annual allowable cut in British Columbia has reduced production volumes in that region by over a third in just five years.
The result is that Western Canadian companies are making massive investments in the South now. Reports show 25-30% of the mills are owned by these Western Canadian companies. Companies like Canfor Corp., Interfor Corp and West Fraser Timber Company are taking advantage of the South’s lumber capacity, competitive pricing and better margins.
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