Think of last week’s BC Council of Forest Industries (COFI) conference in Prince George as a swift kick in the Carhartts for our forestry sector.
With something like than 630 forestry professionals filling the Civic Centre, the event brought attention to some serious challenges facing the industry and the urgent need to rethink how both BC and Canada approach forestry in a world that’s changing fast.
For decades, the U.S. has been Canada’s top trading partner for forest products, but that’s rapidly shifting. Despite lumber producers having to deal with ever present softwood countervailing duties and anti-dumping fees, the U.S. remained our top partner.
With the U.S. imposing new tariffs and making trade more difficult, the relationship is no longer as reliable as it once was. The odds are against this situation reversing anytime soon.
This harsh reality means Canada needs to find new markets and adjust its approach to forestry. Relying solely on the U.S. is no longer an option.
Prince George continues to be a crucial player in Canada’s forestry trade. The city has a long history in the industry and its strategic location makes it a hub for forestry professionals.
However, as the conference made clear, Prince George — and the whole industry — faces some major hurdles. With the future of the U.S.-Canada trade relationship uncertain, the industry faces more headwinds.
Lumber prices have plunged from their height in 2021. From the environmental threats such as the mountain pine beetle, spruce beetle, and wildfires to the high operational costs and difficulty accessing timber, there are plenty of challenges.
If these issues aren’t addressed, Prince George could lose another pulp mill, which would be a huge blow to the industry and our community. The time to act is now, especially with the growing tensions south of the border.
One solution that’s been talked about a lot is diversification.
For far too long, BC and Canada have focused on the U.S. market. BC Hydro chair and former premier Glen Clark pointed out; it’s time to look elsewhere — particularly to Asia. His comments build upon what was first championed by then-minister Pat Bell, in 2009, when he was leading trade delegations showcasing BC wood products.
Countries like Japan, where Canada has seen its market share drop in recent years, represent a huge opportunity. Japan is a wealthy market that knows Canadian products well, and it’s a perfect place for the kind of high-quality lumber that Canada produces. Other parts of Asia, like South Korea and China, are also emerging markets that could offer a lot of potential for Canadian forestry exports.
Prime Minister Mark Carney, responding to new American tariffs, proposed a new trading bloc led by Canada, one that leaves the U.S. out.
BC’s geographic positioning in Canada would put us in a unique and powerful spot should that happen. Here we are, right on the Pacific Rim, ready, willing, and able to ship more wood west.
But diversification isn’t just about new markets. It’s also about innovation. As the conference showcased, there are exciting new technologies that are already making a difference in the forestry sector.
From advanced tools to smarter, more efficient logging equipment, the industry is evolving. If Canada’s forestry companies can continue to innovate, they’ll be better equipped to handle the challenges ahead. For that to happen, governments need to support research and development, such as the work UNBC is currently carrying out at the Wood Innovation Research Lab in downtown Prince George.
The industry itself needs to be open to new ideas, including further co-operation with Indigenous partners.
Let’s broaden our trade relationships, invest in new technologies, and continue to find new ways to increase the diversity of value-added BC wood products.
With Prince George playing a key role in this transformation, there’s real potential for a brighter future for Canada’s forestry sector.
The forestry industry must change if it’s going to survive and thrive. We’ve known that for a long time. But now the pressure’s really on, and we must take action.
If we’re willing to adapt and evolve, the industry can come out of this stronger, more resilient, and ready for whatever comes next.
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