Canadian Forest Industries Magazine

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From The Editor

Friday, July 4th

Cheap logs, pricey biomass

By global standards, logs in almost all parts of North America are a bargain. That according to World Resources Quarterly, which says softwood sawlog prices have gone up faster in Europe over the past two years than in any other region of the world. While prices started cooling in Northern Europe in Q1 2008 (still climbing in Central and Eastern Europe), they have risen some 40 to 60 percent in US dollars since early 2006 thanks to local price increases and currency. As a result, sawmills in Europe have the highest log costs in the world, with all major countries being over the global average, while Latin America, North America and Oceania still have substantially lower prices.

At the same time, the resourceful folks at RISI and its International Woodfiber Report say that North America's growing biomass industry will become a $1.5 billion fibre market by 2012. This explosive growth will be due both to heavy investment by equity firms and large corporations, as well as legislative initiatives found in the new US Farm Bill. Also PricewaterhouseCoopers has a report that sees gold in Canadian harvest slash. The forest industry consultants say that opportunties abound for forest operators, from collecting and processing the slash, to making energy or energy products. Those with the slash will have the cash apparently.

And that may be it for me for a short spell. I am off to the Maine Coast for my annual two-week family retreat. If I can find reliable Internet for my laptop, I will report from time to time. In the meantime, enjoy our extensive archive of recent news items, articles, and our latest issue by clicking on the magazine icon at the top of this page.

Scott Jamieson, Editor

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