Bainbridge Island, WA (PressExposure) October 14, 2011 -- Forestry Research Associates (FRA) have commented on new figures from Wood Resources Quarterly that show 2011 exports of softwood lumber from the US and Canada to China will reach record levels.
FRA, a research and analysis consultancy, has welcomed the new predictions of record experts, claiming that the demand could drive wood prices up.
Some $1.3 billion worth of softwood products were shipped from the two countries to China last year. Wood Resource Quarterly predicts that if the export rate continues at the level seen in the first seven months of 2011, total exports will double from 2010 values.
Much of the growth in exports has come from the British Columbia region of Canada, where millions of tons of timber killed by the local Pine Beetle infestations have accounted for much of the timber exported. Controversially many of Canada's sawmills are seeing a huge amount of their processing work being moved to China, which many claim is threatening jobs.
Despite this, FRA claims that the demand from China is a positive thing for the forestry industry, and particularly for those who are investing in forestry as prices are being driven up. FRA's analysis partner, Peter Collins explained, "Canada and US forest managers are enjoying impressive increases in the value of their exports thanks to huge demand from East Asia."
He added that in years to come, demand from the Far East and Europe will exceed supply and more sustainable plantations need to be established to meet this demand. He said, "Firms that are establishing new plantations in developing countries, like Greenwood Management, which has planted forests of teak and eucalyptus in Brazil, will help the forestry industry to meet demand by filling the gaps."
Wood Resource Quarterly also agrees that the Chinese market will continue to grow, presenting opportunities for expansion for the US and Canadian forestry industries.