Lumber production up
Commercial harvest tops $23 million

by Doug Ashbury
Northern News Services

NNSL (Apr 27/98) - The North's forestry industry has grown about 17 per cent compared to last year.

For the 1997-98 harvesting season, which ended March 31, the harvest was estimated at 270,000 cubic metres, up 40,000 cubic metres from the prior harvesting season (1995-96: 130,000 cubic metres).

Based on Madison's Lumber Key Prices on April 2, the 1997-98 harvest represents a value of $23.3 million, based on $304 per board foot if processed into two-by-fours.

A board foot -- one inch high, a foot wide, a foot long -- is the most common lumber industry measurement.

Of the nine mills that are processing rough lumber and other building grade products in the NWT, about 89,000 cubic metres were processed during 1997-98. This is a 37 per cent increase over last year's production.

Lumber prices continue to rise but are significantly lower than last year, RWED extension forester Ken Caine in Hay River said.

Caine estimates the increase in 1997-98 harvest adds 40 direct and 52 indirect jobs to the NWT economy.

The North's significant commercial forests are concentrated in the southwest corner of the NWT along the Slave River, Hay River and Cameron Hills, upper Mackenzie River and Liard River Valley.

Despite the increase, harvesting potential in the North is much higher.

The North could generate 500,000 cubic metres of spruce and pine sawlogs and a similar amount of aspen-poplar and birch.

If the annual harvest were to increase to 500,000 cubic metres, it would be worth around $55 million.

Forestry employs about 500 people directly and indirectly, but could support about twice that many.

The GNWT economic framework estimates one direct job and 1.3 indirect jobs in harvesting, milling and basic silviculture are added to the economy for each 1,000 cubic metres of spruce harvested.

About 70 per cent of Northern forest product is sold to the South.

"The milling sector has room for expansion in primary and secondary wood processing while value-added processing opportunities are

still being sought," Caine said.

Most of the timber harvested in the North is white spruce. Jack pine is harvested mostly for fuel.

Silviculture --establishing and maintaining trees and other vegetation -- presents other economic growth opportunities.

Forest silviculture, including site preparation, tree planting, thinning and other silviculture treatments are a "relatively untapped" economic opportunity.

"These activities offer ideal employment and economic opportunities at the community level," Caine said.

"We're looking at diversification. There are other aspects of forestry, besides harvesting of timber."

Last year, about 85 hectares were site-prepared with 150,000 seedlings being planted, mostly in the Liard Valley and Cameron Hills areas.

This summer it is hoped 270 hectares will be site-prepared and 550,000 seedlings planted, most in the Liard Valley and Cameron Hills.

About 40 tree planters will likely be needed for this summer's planting contracts across the NWT.

The NWT has 61 million hectares of forest land but production is only about one-fifth of the allowed harvest.

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