Future of Forestry lies in diversification

The Forest Products Association of Canada released a report today that looks at the future of forestry in Canada.

Avrim Lazar, president of the association, said the forest industry needs to extract the maximum value "from every tree harvested". "What we need is a shift in business model, a new business model that still produces lumber, pulp and paper but also extracts maximum value from every tree harvested," Lazar said.

The study, based on interviews with 65 experts as well as industry leaders and government, predicts a bright future for the forest industry despite the economic downturn and the resultant 50,000 job losses and collapses in the demand for lumber and paper.

The forest products association is calling on Ottawa to offer economic stimulus to facilitate the change through research, tax measures and other funding.

"The message for government is that we have to re-examine our policies and programs to make this possible. It's not government's job to support the status quo, to inhibit change. It's government's job to accelerate this transformation," said Lazar.

While demand for paper will continue to wane, he said most of the industry sees good future demand for lumber, pulp, bioenergy and other new wood products.

The challenge facing the industry is to capitalize on the demand for new products to restore growth, the president said.

One way of doing that is to diversify markets and reduce forestry's dependence on the United States, he said.

Source:

Forestry industry must diversify, capitalize on demand for green energy: study (Winnipeg Free Press)