North Carolina: Low market value and fewer trees means less loggers and mills

Wilkes County Forester Jody Brady today said several smaller
Wilkes-based logging operations went out of business, accelerating a
trend under way the last two or three years. Brady said some of the
remaining small logging operations are having a harder time finding
timber to harvest because landowners are waiting for prices to improve
or get higher prices from larger logging operations.

He said a few
large sawmills that bought timber from Wilkes, but were based outside
the county, closed in 2008. Following a period of consolidation about
five years ago, there now are eight sawmills in Wilkes and another 10
nearby that purchase timber from Wilkes. This doesn’t include the
Louisiana Pacific plant in Roaring River and the Weyerhauser plant in
Elkin, which are major buyers of low-grade timber in Wilkes for
manufacturing products made of wood chips. Brady said at least 15
logging operations based in Wilkes purchase and harvest timber, while
at least 250 more in Wilkes and adjoining counties harvest while
working for a sawmill that bought the timber­. “The quality of timber
makes even more of a difference in a tight market,” said Brady,
referring to quality being even more important now for prices paid to
landowners. Also now more than usual, he added, landowners who
understand the timber market or employ forestry consultants to help
them know when to sell are getting higher prices. “Smart landowners
are using professional assistance or have the savvy to monitor it just
like stocks,” said Brady. He said demand for white pine has been down
for several years, with white pine prices dropping even more in 2008.
White pine timber that brought landowners $175 to $200 per thousand
board feet a few years ago now brings around $125.

Poplar is still
often bringing about $150 and oak around $200 to $300 per thousand
board feet. “When you look at the world stage, the Southeast still has
the best quality hardwoods in the world,” said Brady. This includes
oak, poplar and other species. “It’s why we push for good selective
hardwood management­.” While timber prices overall dropped in 2008, he
added, there were numerous instances where considerably better prices
were paid for hickory and certain other timber species needed for
niche markets. Good access to timber stands also is important. Looking
ahead, Brady said landowners should expect increased demand for timber
as a renewable energy source. Despite the slumping economy, the forest
products industry—made up of lumber and solid wood products, pulp and
paper, and wood furniture—remains North Carolina’s largest
manufacturing industry,” said Bob Slocum, executive vice president of
the N.C. Forestry Association.
http://www.journalpatriot.com/fullstory.asp?id=981

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