B.C.’s forest industry has shifted to logging contractors to supply mills and export markets. (Black Press files)

B.C. loggers struggle despite record lumber prices

Province gets recommendations to stabilize contractor business

Even with record-high lumber prices driving the forest industry, logging contractors continue to struggle to stay in business, says B.C.’s main harvester group.

Members of the Truck Loggers Association are hoping for quick action by the B.C. government on recommendations from the recently completed review of logging contractor sustainability, conducted by former cabinet minister George Abbott.

“This report and recommendations basically validates the reality of logging contractors today,” said Dave Elstone, executive director of the TLA. “There is declining profitability for contractors across the province.”

The recommendations include establishing a minimum standard rate model for logging contractors by 2020, including equipment required, set-up times, fuel costs, crew costs and distances to be travelled. The report also calls for a government and industry-funded training program by 2019, to address the skilled worker shortage caused by people retiring or leaving the industry.

Elstone said contractors are working at less than full capacity, even with high lumber demand and prices, because they don’t have enough skilled operators to keep their trucks and harvest equipment going. The contractor system puts a lot of risk on loggers and they don’t generate the profits to manage that risk, so some are closing down, he said.

RELATED: How will Winter Harbour survive?

RELATED: Industry lauds Canadian lumber trade action

The TLA says its members are the foundation of an industry that supports 140,000 jobs in B.C. and generates $14 billion in revenues internationally, with lumber sales to China, Japan, Korea and other countries in addition to the U.S.

Forests Minister Doug Donaldson has responded cautiously to the report, offering to hire a facilitator to bring together large companies and contractors, with a deadline of deciding which recommendations to move on by the end of July.

Randy Spence, chair of the Interior Logging Association, said the report confirms that conditions are similar in his region as the B.C. coast.

Susan Yurkovich, president of the B.C. Council of Forest Industries, cautioned that logging contractor costs for forest companies are already higher than competing jurisdictions, and the industry needs to maintain global competitiveness.

B.C.’s lumber producers are also dealing with tariffs imposed by the U.S. government since the expiration of the latest softwood lumber trade agreement last year.

Just Posted

UPDATE: Okanagan air quality index poor due to smoke

Index for entire Okanagan Valley rated at 10+, or very high risk, because of wildfire smoke

Penticton RCMP trying to locate a missing man

Sheridan Graham was last seen Aug. 11.

Child dies in boating incident on Kal Lake

A North Vancouver family was boating on Kal Lake when the incident occured

Penticton Tigers runners up at provincials

The Penticton Tigers capped off a stellar season with a silver medal at the BC’s

Clock is ticking on resurgence of First Nation languages

B.C. Indigenous language diversity unique in Canada

A look at B.C. wildfire smoke from space

NASA provides a timelapse of smoke covering B.C. from space

B.C. Wildfires 2018: Province calls for federal aid

More fires have burned in B.C. already this year than did in all of 2017

Kayak in Indian Arm waters off B.C.’s Deep Cove and feast on famous doughnuts

About a half hour drive from Vancouver, Deep Cove is a great kayaking spot for locals and tourists

Child, 4, attacked by cougar near Fernie

The BC Conservation Officer Service said it happened while the family was fishing

Trans Mountain pipeline protesters practise resisting police at Camp Cloud

Last week, a Supreme Court judge granted the City of Burnaby an injunction ordering protesters to remove everything from the site

Gun used in Fredericton killings is legal, man had licence

Police Chief Leanne Fitch said the long gun is commonly available for purchase, and is not a prohibited or restricted weapon

Ontario will sell pot online when legalization comes in the fall

There are further plans to have pot in private retail stores in early 2019

Woman missing after car swept away by mudslide near Cache Creek

A search is now underway for Valerie Morris, who has been missing since the afternoon of August 11.

Smoke and wind doesn’t stop 10th-annual Feast of Fields

Despite destructive winds, stormy weather and heavy smoke the 10th-annual Okanagan Feast… Continue reading

Most Read