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Canada: Global Forest Markets Impact Alberta Forest Industry in 2001-Shipment Values Return to More Average Levels.
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Global Forest Markets Impact Alberta Forest Industry in 2001-Shipment Values Return to More Average Levels.

Canada NewsWire May 15, 2002

EDMONTON, May 15, 2002 (Canada NewsWire via COMTEX) -- After two consecutive years of above normal levels, the value of Alberta's forest products in 2001 was back to more average values.
Statistics released by the Alberta Forest Products Association (AFPA) show the overall value of shipments for lumber, panelboard and pulp and paper in 2001 was $3.272 billion, down 8.3 per cent or $285 million from $3.557 billion in 2000. The AFPA said the combined effect of lower production levels for pulp and lower pulp prices offset improved values in lumber and panelboard. The average pulp price in 2001 was more than 15 per cent below the average price in 2000.

AFPA President Wayne Thorp said lower pulp prices are worldwide so the Alberta industry is experiencing the same market uncertainties as what other provinces and forest producing countries are going through. He said the overall value of Alberta forest products comes in at around the provincial industry's five-year average of $3.3 billion.

"When you consider the industry also had to deal with ten-year low lumber prices at one point last year, the final 2001 numbers are still positive," said Thorp. "The bottom line is that the Alberta forest sector remains fundamentally strong and continues to be one of the leading manufacturing sectors in the province, generating billions of dollars for the Alberta economy and employing thousands of Albertans."

For 2002, the AFPA cautioned that the overall value of shipments could remain average as a result of American softwood lumber duties of 27.22 per cent.

"Lumber, which represents about one-third of the forest sector in Alberta, will be hit hard by the excessive softwood lumber duties," added Thorp, who noted the AFPA has calculated the Alberta economy could lose up to $200 million a year from the increased duties.

The Alberta forest industry is the third largest manufacturing sector in the province, generating revenues of more than $8 billion and employing up to 54,000 Albertans. The Alberta Forest Products Association represents companies producing lumber, pulp and paper, panelboard and secondary manufactured wood products.