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canadian industry Online - NOVEMBER 2014
O
ntar io ’ s forest prod -
ucts
sector has faced enor-
mous challenges in recent years and
despite numerous mill closures and job
losses between 2006 and 2009, the sec-
tor is riding on an unprecedented re-
bound. Greater demand for wood
products, increased US housing starts
and a lower valuation of the Canadian
dollar have all contributed to the re-
covery of the forest products sector.
Consequently, forestry companies har-
vested over 14 million m3 in 2013,
compared to 12.6 million m3 in 2012.
Ontario’s overall recovery is being
driven by its vibrant primary forest
sector, a sector that supports not only a
thriving manufacturing sector but also
an exciting bio-economy within the
province.
In addition to the traditional for-
est products we are all accustomed to -
2
x4’s, newsprint, paper and kraft pulp
-
Ontario’s primary forest products
sector has been the leader in bio-en-
ergy and bio-chemicals. The majority
of Ontario’s primary forest products’
facilities use biomass as their main fuel
for heating and in many cases for gen-
erating electricity. Ontario’s kraft pulp
mills are the original bio-refineries,
creating value-added chemicals such
as tall oil and turpentine from low-
value wood. The modern forest prod-
ucts sector is adaptive, diversified and
integrated. It is the foundation of the
provincial bio-economy.
Along with a world-class legisla-
tive framework for sustainable forest
management, Ontario’s sector has a
robust supply network for fibre and
residual materials. It continuously
strives to innovate and leads all indus-
tries in bio-energy and products. On-
tario’s primary forest products sector
is well-position to take the lead on this
front, especially with rising fossil fuels
costs and increasing public pressure to
reduce carbon footprints.
The success of the bio-economy
depends on the health of the primary
forest products sector. The cost of fibre
in the province of Ontario is amongst
the highest in the world. The emerg-
ing bio- economy must partner with
the existing primary facilities and in-
dustry. In this way, it can reign in fibre
costs by taking advantage of existing
road construction, harvesting, silvicul-
ture and renewal programs.
Without the existing forest prod-
ucts primary sector, newly formed
bio-products enterprises would be
challenged to build successful business
cases due to high market entry costs
and burdensome regulatory require-
ments. Partnerships with the existing
primary sector will lead to diversifica-
tion across the board. They may also
create efficiencies that reduce costs for
all players. This integration can help
us achieve our objective of maximiz-
ing the full potential of the renewable
and sustainable forest sector and at the
same time reduce our reliance on non-
renewable fuels, products and chemi-
cals.
The recovery of the primary for-
est products sector provides us with an
opportunity to expand our bio-prod-
ucts economy. Despite expanding the
scale of harvests, the volume harvested
by the forest industry is still well be-
low the sustainable available harvest
level, indicating that Ontario has an
opportunity to grow its primary forest
sector and associated facets of the bio-
economy.
Ontario’s emerging bio-economy
has the potential to impact the forestry
community in a very positive manner
and is welcome by the forest industry
and its partners.
OFIA
