Unit 6 - The Canadian Forest Industry

(Lindsay Porter and Alfred Hecht)

Teaching aim: Canadian forestry is one of the key industries in some provinces. However, the regional variation of its economic importance is considerable. Provinces such as British Columbia or Quebec depend strongly on forestry and on deriving industries. There are, however, problematic issues combined to forestry that will be focused on in this unit as well.

Keywords: Pulp and paper, lumber, newsprint, clear-cutting, selective cutting, logging, Indian reserves, land-claims, deciduous trees, coniferous trees, planting, reforestation.

Canadian forest products [1] were and still are some of the most important staples the country produces. Besides providing building materials and being a heating source for early settlers [2], large logs were important for the British ship building industry in the second half of the 19th century. European ships on many occasions would come to Canada filled with immigrants and return home filled with lumber. During this time period, the main sources of lumber were the Atlantic provinces and the tributary region of the St. Lawrence River.

In the beginning of the 20th century the westward movement of settlers and an increase in North American newspaper circulation caused a tremendous demand for paper. This demand facilitated the expansion of the forest cutting zones [3] from the deciduous tree zones in the southern portions of the eastern provinces to the coniferous zones in the northern areas. Here trees were smaller and less useful for lumber, but were quite adequate for pulp and paper products. They were also easier to harvest by mechanical means, thus allowing the presently much used clear cutting format. Even today the pulp and paper industry is still the main land user of the so called mid-Canada land corridor (Boreal Forest).

It is estimated that Canada has about 10% of all the world's forests [4]. In terms of potential tonnage that could be harvested as lumber, this percentage is substantially smaller because Canadian forests consist of relatively small trees that give way to shrubs, tundra and then ice and snow in the far north. About 45% of Canada's land area is still forested; a little over half of it can be harvested and the rest is currently of little commercial value.

As with other Canadian natural resources, the forest industry is not equally distributed [5] either. Quebec (20%), British Columbia (15%), Ontario (14%), and Alberta (9%) have the largest forest acreages. However, British Columbia (42%) has a greater wood volume than Quebec (17%), Ontario (12%) and Alberta (12%). The pattern illustrates that Canada has two major forestry concentrations: one in Central Canada - Quebec [6] and Ontario - and the other in the west - Alberta and British Columbia [7].

Unlike some other natural resources, the forestry industry is strong [8] in the overall economy of Canada. After Finland and Norway, no other country in the world has such a high proportion (12%) of its total export made up of forest products. About 75% of all Canadian forest products [9] (pulp and paper mainly) are exported; the main markets are the United States, Japan and other Asian countries. Relatively little is shipped to Europe, Africa or Latin America.

British Columbia is the main producer by value (30% of total) of forestry products, and also the main exporter. Approximately 70% of its lumber, 90% of its pulp and paper, and 85% of its newsprint are exported annually. Consequently, the province's forest industry is very dependent on external market and price conditions. However, when it comes to acreage harvested Quebec is the largest, followed by Ontario and British Columbia. In all, about 1 million hectares (Fig.6.1) of forest are harvested each year in Canada, which represents about 0.4% of the total forested land surface that is of commercial value. At this rate, the Canadian forest can theoretically regenerate itself before it is cut again.

In the late 1990s, about 80% of the wood harvested was clear cut [10], but this percentage is decreasing, especially in the hardwood regions of the country. Recently, the largest Canadian forestry and paper company, MacMillan Bloedel Ltd. [11] (taken over by the US-Weyerhaeuser group in 1999) announced it was abandoning the clear cut method and adopting a selective cutting approach [12]. Only relatively recently have active reforestation programs been established in Canada. In the past, it was thought that natural regrowth would regenerate the forests, but larger and larger patches of clear cut areas have made this difficult. Consequently, forest firms and governments now reseed at least half the acreage they cut each year (Fig. 6.4) with the rest being left to the natural regrowth process, which often involves natural forest fires. The latter tends to be the case in far northern pulp and paper producing areas. However, recent confrontations with environmental groups [13], especially in the few remaining areas of large and old virgin forest enclaves, may increase this replanting percentage.

In contrast to many European (e.g., German) and American forests, Canadian forests are owned [14] mainly by the provinces (71%), followed by the federal government (23%) and private owners (6%). However, it should be noted that 6% represents about 1.5% of Canada's total land mass, which is equivalent to approximately half the size of Germany. In Canada, most of the tree harvesting occurs on public land. Lumber companies pay 'stumpage fees' to the government for the privilege of harvesting certain acreages. It is in this arrangement that lies also the problem of who is responsible for re-seeding - the government or the lumber companies? In addition, much of the public land in Canada was taken from the Native Indians [15], only a fraction of the total land was handed over legally to the British Crown through land treaties. At present, a large number of claims are being made by the Native Indians to acquire legal rights to the areas their forefathers hunted and gathered in before the Europeans arrived. This legal uncertainty is currently affecting the forest industry because it is not always clear who can give permission to do logging on so-called public property.

A new problem for the Canadian forest industry [16] is competition. Recycling of paper has reduced demand in the paper arena. In the construction and the manufacturing industry steel, aluminum, vinyl, tar, and plastics are replacing traditional wood building material. These and other pressures mean that the industry may decline in importance in the total Canadian economy.

Questions that may be asked: Interaktives Quiz

[1] http://www.forest.ca/browse/products
[2] http://www.shantymanart.com/heritage.html
[3] http://www.fpac.ca/english/facts/forets/index-ok.htm
[4] http://www.nrcan.gc.ca/cfs-scf/national/what-quoi/sof/sof03/overview_e.html
[5] http://www.nfdp.ccfm.org/compendium/data/2003/tables/com12e.htm
[6] http://www.pfc.cfs.nrcan.gc.ca/monitoring/inventory/maps/map2_e.html
[7] http://mmsd1.mms.nrcan.gc.ca/forest/historique/section3/III-5H-BC-E.htm
[8] http://nfsc.forest.ca/strategies/strategy4.html#4_e
[9] http://www.statcan.ca/english/Pgdb/gblec04.htm
[10] http://www.nfdp.ccfm.org/compendium/harvest/archive/2003_e.php
[11] http://www.weyerhaeuser.com/environment/practsustainforest/forestrycanada/default.asp
[12] http://www.weyerhaeuser.com/aboutus/whatwedo/timberlandmanagement/
[13] http://www.greenpeace.ca/e/campaign/forest/depth/boreal/what.php
[14] http://nfsc.forest.ca/strategies/strategy4.html
[15] http://nfsc.forest.ca/strategies/strategy4.html
[16] http://www.nrcan.gc.ca/cfs-scf/national/what-quoi/sof/sof02/statistics_e.html


TOP CONTENTS VGT HOME