BC forest sector prognosis becoming progressively grim

When an annual allowable cut cannot be achieved, data suggests forestry companies cut and run south.

With North American lumber prices below break-even costs for many sawmills in Canada and the U.S., plus ongoing geopolitical uncertainty, recessionary conditions in China and declining timber supplies around the world, the global outlook for the forestry industry is not particularly rosy.

In British Columbia, once North America’s forest-sector powerhouse, it seems downright dismal. And low lumber prices—a result of inflation and high interest rates squelching North American home building—are only one of a myriad of challenges facing the industry ...

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