24 WESTERN PALLET
answer, when they call, or if you can't get that answer, they will find somebody who will get them the answer, because they will be required to do so.”
Lumber: Lumber Dynamics Evolving
Russ Taylor of Russ Taylor Global, the second keynote speaker, offered critical insights into the evolving global lumber market. With 30 years in the industry, including a 15-year stint in China, Taylor's perspective holds considerable weight.
Taylor emphasized the dominant role of Europe, USA, China, Russia, and Canada in global log and lumber dynamics, collectively contributing to over 87% of the market. He remarked on the rising costs due to the scarcity of cheap logs and the growth driven by demand in nations like China, India, Brazil, and Indonesia.
Highlighting North American trends, Taylor noted the unsustainability of past consumption patterns and predicted a negative growth in 2023, attributed to housing dynamics and interest rates. British Columbia's timber industry faces challenges, with the pine beetle destroying a significant portion of timber and recent policies further limiting harvesting.
Europe, stepping up its production, grapples with its spruce bark beetle epidemic, impacting the timber at a rate even faster than Canada's pine beetle outbreak. Taylor didn't sidestep geopolitical issues either, pointing to the Russia-Ukraine conflict's impact on the lumber supply chain.
China's timber import dynamics are notably shifting. Taylor stated, "By 2025-2030, sources like Russia may no longer be a significant contributor due to diminishing wood supplies." He also highlighted China's pivot towards the Southern Hemisphere for timber imports and its increasing reliance on lumber over logs due to supply challenges.
Summing up, Taylor expressed, "Global lumber dynamics are rapidly evolving," with China playing a significant role amidst European pests and geopolitical tensions. He predicts a cautious 1% growth in timber production and consumption over the next decade, with brighter prospects by 2025. A panel session followed the presentation. While the use of certified sustainable timber is seen as an important practice in Europe, the market for certified timber has yet to emerge in North America significantly.
One of the panelists, Steve Rustja, VP - Trading for Weston Forest, said he saw challenging times in the short term but general improvements over the longer haul. “I think we're going to get to a
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Interpal
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