Press Release - January 11, 2019 11:00AM EST
New report shows that structural and temporal market shifts have impacted the market for wood fiber residuals in the U.S.
CHARLOTTE, N.C., January 11, 2019 (Newswire.com) - As global consumer trends and demands continue to shift at an escalating pace, a new Forest2Market report shows that both structural and temporal market shifts in recent decades have impacted the markets for wood fiber residuals. The report, Changes in the Residual Wood Fiber Market 2004 to 2017, analyzes data from the U.S. Forest Service, Forest2Market’s proprietary database of timber transactions and other scientific research to understand the relationship between the supply and demand of wood residual materials over a 14-year period.
The report was commissioned by Resources for the Future (RFF), the U.S. Endowment for Forestry & Communities Inc. (Endowment) and the National Wooden Pallet & Container Association (NWPCA). The geographic scope for the study was divided into two broad regions of the United States: the U.S. South and the Pacific Northwest (PNW). Study objectives included:
The study found that the underlying market forces that most impacted the residual market in these two regions are:
“While global markets continue to chase consumer trends, this report clearly demonstrates that rapidly changing preferences present new opportunities for an evolving forest industry,” said Pete Stewart, president and CEO of Forest2Market. “Structural changes have affected the hardwood market in the South in ways that cannot be reversed and the increased demand for softwood makes the resource-dense region a profitable destination with globally low cost structures. However, any growth opportunity in the PNW will be hamstrung due to high costs and resource constraints.”
“When one considers the nation’s majority owners of forests, private landowners, as contradictory as it might seem, keeping forests as forests is highly dependent upon robust and diverse markets,” said Endowment President and CEO Carlton Owen. “And in the case of public forests, those same markets are critical to keeping forests healthy in the face of changing climatic conditions and a tsunami of pests and diseases,” he noted.
Resources for the Future Vice President for Land, Water, and Nature Dr. Ann M. Bartuska, said, “According to the report out today, a sustainable material like hardwood fiber still faces great challenges on several important fronts in the U.S. South. For example, there has been a 25 percent decrease in hardwood fiber demand in the past 10 years and the report bluntly cautions that the industry will have to address such areas if it is to survive.” But Dr. Bartuska adds, “On the other hand, new demand for softwood fiber from the U.S. South has increased substantially, driven in part by increased demand from the European wood pellet industry. A consideration of both hardwood and softwood forest management is key to regional sustainable forestry.”
"Strong markets for products like wood chips, biofuels and sawdust allow the wood packaging sector to approach zero-waste,” said National Wooden Pallet & Container Association President and CEO Brent McClendon. “We were pleased to work with Forest2Market on this timely study as the current trends impacting hardwood and softwood residuals markets needed to be better understood.” McClendon continued, “The wood packaging industry is proud that 95 percent of all wood pallets are reused, refurbished and recycled. In addition to being used for wood pellets, mulch and paper, our industry’s environmental success story needs a full array of strong markets for wood residuals and this study provides useful information to guide future policy discussions.”
Forest2Market provides market pricing data, cost and performance benchmarks and analytics, as well as supply chain consulting and advisory services to customers in the forest, wood products, pulp and paper, lumber, bioenergy and biochemicals industries. www.forest2market.com
About Resources for the Future
Resources for the Future (RFF) is an independent, nonprofit research institution in Washington, D.C. Its mission is to improve environmental, energy and natural resource decisions through impartial economic research and policy engagement. RFF is committed to being the most widely trusted source of research insights and policy solutions leading to a healthy environment and a thriving economy. www.rff.org
About the U.S. Endowment for Forestry and Communities
The U.S. Endowment for Forestry and Communities (the Endowment) is a not-for-profit public charity working collaboratively with partners in the public and private sectors to advance systemic, transformative and sustainable change for the health and vitality of the nation’s working forests and forest-reliant communities. www.usendowment.org
About the National Wooden Pallet & Container Association
The National Wooden Pallet & Container Association (NWPCA) is the largest organization of wood packaging professionals in the world, with more than 670 company members in 28 countries who manufacture, repair and distribute pallets and wood packaging in unit-load solutions or who supply products and services to the industry. www.palletcentral.com
Phone: +1 980 233 4021