As 2011 is history, has Canada’s forest economy improved? By Melanie Mathieson, RPF  O ver the last five to six years we have heard endless America’s demand for Canadian lumber has remained very low statistics with regards to the major economic downturn of and is predicted to remain in a depressed state for some time, the forest sector in Canada. In Ontario alone, during the possibly the next five years. period from 2004 to 2008, the annual harvesting levels dropped With the US market for lumber almost at nil, Canada has by 43%, which is equal to about 10 million cubic metres per to look for new customers around the world to buy our forest year. During this same period, an average of 11% of forest sector products, and offshore markets are the focus. Canadian exporters jobs were lost each year. As Ontario’s forest sector generates have their sights set on discovering emerging markets for lumber substantial economic benefits for the provincial economy, the and forest products in Asia and Europe, China being one of the shortfall in harvest levels, permanent and indefinite mill closures, countries with the most promise. and major job losses represented a substantial loss of economic, China is a developing country that is growing at an incredible social, and environmental benefits for many Ontarians. rate. With growth there is demand for commodities such as food, Although there has been a decline in the forest sector and minerals and wood products. When there is a large demand and a other industries in Canada, we have generally faired much more limited supply in commodities, prices rise. This is one of the reasons positively than our neighbour’s to the south and some European that the global mineral prices for such minerals such as gold are cur- countries. The United States has experienced a severe blow to rently at record levels. As a result the mineral exploration industry in their national economy with a recession that seems to keep Canada is also at an all time high. In addition to minerals, a develop- on lingering. Yes there were some positive announcements of ing country also needs lumber and wood products to build infra- growth and rebound in some areas of the US in 2011, but not structure. This is where Canadian lumber products can play a role. enough to pull the entire country completely out of the recession. China does have some capability of supplying itself with its own This is unfortunate, as historically approximately 38% of all lumber from species commonly grown in plantations throughout Canadian lumber was exported to the United States with the the country. Because of the climate and species being grown, housing sector as the largest consumer of Canadian lumber. lumber can be produced in short growing rotations on large tracts With the collapse of the US housing market in 2007-2008, of plantation land, for relatively low cost. Although the wood 10 forestry & mining • Winter 201 1 / 1 2 Click HERE to return to table of contents