Forestry industry in crisis
Already suffering before the
recession, Canada’s forestry sector has been pummelled by the economic
downturn. In the past two years, over 200 mills have closed across the
country, putting over 50,000 people out of work.
While the market
for traditional forestry products has taken a beating, there is an
expanding market for secondary wood products - manufactured without
increasing the harvest.
As Canada’s economy emerges from the
crisis, there will be pressure on both government and industry to
develop more environmentally sustainable methods.
AbitibiBowater, one of the main players in the Abitibi-Temiscamingue region, posesses two mills and a paper factory there.
Canadian forestry: Some facts & figures
• Canada is the world's largest exporter of forest products.
•
About one million Canadians are employed directly or indirectly by
Canada’s forestry industry, making it the country’s biggest employer.
• The USA is by far the largest buyer of Canadian forest products.
• In 2007 Canada had about 19% of the international market for wood fibre and products, but this share is shrinking.
• From 1989 to 2007, the export value of Canada’s forestry products increased by 130%. In 2008 it dropped by 6.8%.
AbitibiBowater: Some facts & figures
• The company employs about 16,000 around the world, of which about 11,300 were
employed in Canada at the end of 2008.
•
AbitibiBowater listed assets of $9.9 billion and debt of $8.78 billion
when it filed for bankruptcy protection in U.S. courts in 2009.
• More than 9,000 former employees receive a pension.
• The company manages about 35% of Quebec’s publically owned woodland.
• In 2008 and 2009, the company laid off about 3,380 workers.
Factors in the decline of Canada’s forestry industry
• The loonie: the high Canadian dollar
• Softwood:
The sharp drop in U.S. housing construction means less Canadian exports
to its most important market. Canada exports 80% of its softwood to the
USA.
• Newsprint: Newspapers are losing ground to other forms of media.
• Sustainability: The industry is coming under pressure to adopt more sustainable practices.
Sources:
Radio-Canada, The Canadian Encyclopedia.com, Forest Products Association of Canada,
Policynote.ca, Globe & Mail, Natural Resources Canada, Communications Canada, Energy and Paperworkers Union of Canada.