According to recently released figures, 2001 was not a banner year for the Island's timber industry as overall production was down significantly from 2000 figures. The primary reasons for the 11.5 percent decline were uncertainty over the Canada/US softwood trade dispute and the onset of an economic downturn.
"Sawlog production was down dramatically (28.7 percent) in 2001 due, in large measure, to the ongoing uncertainty over the ongoing Canada/US softwood dispute and the overall poor soft markets," said Paul McKnight, Forest Policy Analyst with the Department of Agriculture and Forestry. "For instance, Georgetown Timber, the Island's largest sawmill, shut down from early fall to mid February 2002 and experienced a 40 percent decline from 2000 lumber production figures. This decline is representative of the total softwood processing decline experienced across the Province."
The 2001 survey indicates there was little or no decline in pulpwood exports, but pulp markets were considered to be soft in the last half of the year. Fuelwood consumption, as reported in the 2001 Prince Edward Island Wood Fuel Survey done for the Energy and Minerals Section of the Department of Economic Development and Tourism, was up almost 20.5 percent over the survey results of 1999. This may be attributed to the rapid spike in fuel oil prices in 2000/2001.
Despite lumber disputes and poor markets, the Island's 2001 lumber production was still estimated at 38 million board feet. The value of primary forestry products was $33 million, and the value-added sawmill sector added another $5 million. While these numbers are good, they are significantly lower than the 85 million board feet produced two years ago or the 2000 value figures which were $42 million for primary production and another $8.7 million for value-added production.
On the up side, government established a Public Forest Council in 2001 to explore the potential of public forest lands to produce non-timber products such as jams, wreaths, eco-tourism and medicinals. This new initiative will help to develop new natural products for local consumption and export and increase the economic returns Islanders receive from our forest resources.
More detailed harvest information is available on the provincial government Web site at: http://www.gov.pe.ca/af/agweb/.
Copies of the 2001 report Prince Edward Island Timber Products and Shipments are available by contacting the Department of Agriculture and Forestry at 902-368-4700.