B.C.’s latest initiative to jumpstart the forestry sector is a marketing campaign aimed at tapping Asia’s voracious appetite for natural resources.
The provincial government has allotted $9.2 million to promote the use of B.C. wood products in foreign markets. One industry leader believes it could go a long way toward creating new demand.
“This is all stuff that can’t be done by individual companies, it’s too expensive,” said Rick Jeffery, president of industry association Canada Wood Group.
The money will be divided among 11 different wood industry associations in B.C.
It will be used to train Asian companies how to build with B.C. wood, promote the use of products such as red cedar for roofing in Europe and convince other markets of the superiority of coastal hemlock, among other things.
Jeffery said part of the job would be to protect existing customers in Japan from other market competitors such as New Zealand and continue to build relationships in China.
The amount of B.C. softwood lumber the Asian juggernaut consumes has more than tripled in recent years. Economists continue to pinpoint it as one of the best places for market growth in the world.
David Elstone, an analyst with Equity Research Associates, said some of China’s demand for Canadian logs stems from a Russian log export tariff that has stymied shipments between those two countries.
In the end, he said, Chinese demand for B.C. wood products will depend on the lumber producers’ ability to compete in a global market.
Said Elstone: “The growth rate has been phenomenal, however, we’re not the only country that has benefited from that demand … price will ultimately be the decision maker.”
For more about the government’s wood products campaign check out next week’s print edition of BIV.