Mapping the Course Conference Vancouver Washington January 23, 2020 - - PowerPoint PPT Presentation

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development Albert Nussbaum, RPF Mapping the Course Conference Vancouver Washington January 23, 2020

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

• BC’s Forests
• BC’s Forest Industry
• Coast Forestry Industry Challenges
• Addressing these Challenges
• Harvest Projections
• Conclusions

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

B.C. has significant forest resources.

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

B.C. Forests are publicly

• wned.

Ownership Crown Land Private Land Nisga’a Lands Tsilquot’in Area

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

• Comprised of forestry,

logging, wood products and paper manufacturing.

• Important part of BC’s

economic base.

• Supports 54,100 direct

jobs and significant government revenue

Support Activities for forestry*, 10% Wood product manufacturing, 48% Pulp and paper manufacturing, 16% Forestry & logging, 26%

B.C. Forest Sector by Industry

share of forest sector, %

Source: Statistics Canada

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

• $18.4B in manufacturing

sales (2018).

• Exports of $14.9B (2018).
• Wood products had $12.6B

in manufacturing sales, with sawmills accounting for $6.8B

• Pulp/paper manufacturing

had $5.8B in sales, with $3.6B from pulp sales.

Source: Statistics Canada

$0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Value (bars), C$ Billions Monthly Value (lines), C$ Billions

Total Export Value

2018 - YTD 2019 - YTD 2018 - Monthly 2019 - Monthly

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

Coast Area in Millions of ha Total Coast Live Volume Billions of Cubic Meters Forested 9.13 3.01 Crown Forested 8.02 2.87 Legally Harvestable 5.62 1.85 THLB 2.59 0.86

The Resource

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development 7.9 12.3 14.2 14.3 15.1 13.9 13.1 13.2 11.6 12.4 3.3 4.2 5.2 4.1 5.1 5.4 4.7 5.1 5.0 5.5 5 10 15 20 25 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

million m³

B.C. Coast Harvest Volume

Crown Land Private/Federal Land

Source: Harvest Billing System

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

Factor 2003 2017 Change Direct jobs 43,800 25,800

• 41%

Lumber production 2.5 Bbf 1.4 Bbf

• 44%

Pulp production 3.7 M tonnes 1.8 M tonnes

• 51%

Crown log exports 1.5 Mm3 2.7 Mm3 +80%

Over the last ~ 15 years, the Coast has experienced:

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

Labor Climate Rugged Terrain Low Value Species Waste Levels Softwood Lumber Tariff First Nations Consultation & Accommodation Land Withdrawals

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

Labour Climate

34% 26% 19% 11% 5% 5%

2019 Coast AAC Distribution

Western Other BCTS Interfor Timberwest Teal Cedar 5.0 Mm3 3.9 Mm3 2.9 Mm3 1.7 Mm3 0.7 Mm3 0.7 Mm3 Total Coast

Source: BC Provincial Government AAC apportionment commitment reports 8Mm3 – millions of cubit meters

14.9 Mm3

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

Steep Slopes

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development 5 10 15 20 25 0_10 11_20 21_30 31_40 41_50 51_60 61_70 71_80 81_90 91_100 >100 Percentage Area Harvested by Slope Class

Coastal Harvest 2011 to 2019

Conventional Steep Slopes

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

Low value species

Douglas Fir, 30% Hemlock, 35% Balsam, 12% Red Cedar, 17% Other, 7%

Harvest Profile for 2018 B.C. Coast

(18.0 mil. m3) Douglas Fir, 18% Hemlock, 37% Balsam, 16% Red Cedar, 14% Other, 16%

Inventory Profile for 2018 B.C. Coast

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

Waste Levels

“Avoidable waste” has increased from ~4% of stand volume to ~16% in the past 15 years due to the economics of removing this lower grade fiber

Softwood Lumber Tariffs

An issue primarily on cedar lumber which is largely shipped to the USA and is of high value

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

First Nations Consultation & Accommodation

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

Land Base Pressures

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

• Tenure transfers – public interest test
• Encouraging domestic consumption of timber
• Encouraging establishment of new users of fibre and producers of higher value products
• Establishing Fibre Recovery Zones
• Changing how the fees companies pay to harvest on crown land are determined

Addressing these challenges

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development 20 15 20 14 20 18 16 14 12 11 15 17 17 18 17 15 15 15 14 10 13 48 47 52 51 53 66 55 50 42 40 49 51 50 50 45 51 49 47 46 35 37 69 62 72 64 73 83 71 64 53 51 63 68 67 68 62 66 64 61 59 45 50 10 20 30 40 50 60 70 80 90

Crown Harvest Volume (m3, millions)

B.C. Provincial Crown Harvest (Historical and Forecasted)

Coast Interior

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development

• BC has significant forest resources that are largely publicly owned
• While the forest resource is large, only a portion of the is available land base is

currently economic

• Coastal harvesting operations face a significant number of challenges
• The BC Government is attempting to address some of those challenges through

policy changes

• Harvest is expected to remain well below allowable levels for the coming year with

modest improvement thereafter

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Ministry of Forests, Lands, Natural Resource Operations and Rural Development