The value of lumber, pulp and paper, and panels from Alberta’s forest sector totaled $718 million in 2Q/2015, a 1.3% year-on-year decline, according to the Alberta Forest Products Association (AFPA) in a press release.
AFPA members produced 896 million board feet of lumber valued at $299 million. This represented an increase of 25 million board feet (2.9%) from the 2Q 2014, but shipment values declined by $19 million (6.1%). For panels, companies produced 282 million square feet, valued at $88 million. Compared to 2Q 2014, panel production declined 8 million square feet (2.6%) while values dropped by $3 million (3%).
“Our industry has many opportunities that bode well for the future,” said AFPA President and CEO Paul Whittaker. “We have seen an increase in the generation of green power, development of markets abroad, and the use of cutting-edge technology in facilities.”
Whittaker noted that despite some positive news, the industry also faces a number of challenges, including the expiration of the Softwood Lumber Agreement with the United States, the mountain pine beetle, and a slowing economy in Canada.
“Some of these challenges are certainly contributing to slower growth in the sector. Now, more than ever, it is important for the forestry sector, government, and communities to work closely together to ensure that the forest industry remains a vital contributor to Alberta.”
Source: Lesprom Network