1 min read

Plywood Plants Close – More Evidence Structural Changes Will Force Landowners to Grow Smaller Logs

A few weeks ago, I blogged about the structural changes in the sawlog market that should lead landowners to rethink how big they should let their trees grow.

Four fundamental structural changes are underway that will cause landowners to rethink their management regimes.  They are:

  • Closure of plywood plants  that have traditionally bought large trees.
  • Technology that favors using a smaller tree – i.e. growth in the OSB, MDF, LVL and oriented strand lumber.
  • New demand for woodfiber is coming from wood pellet manufacturers and utilities – those that consume small trees (or even a lower grade product).
  • Continuing commoditization of lumber where 2x4s sell for the same price as 2x12s, providing no incentive to pay a premium for large trees. 

I posed the question, "Is this a permanent trend or just an aberration due to the current market?"  I am still not entirely sure.  However, with Georgia Pacific’s announcement last week that they would close plywood plants at Crossett, Arkansas and Hawthorne, Florida--two of the largest in the South--I am more convinced than ever.


Comments

Silvicultural Practices and the Adoption of New Te

09-21-2011

[...] to favor chip-n-saw size logs (see Pete Stewart’s posts:  sawtimber vs. chip-n-saw and plywood mill closures), the mills that have made the conversion will be prepared if landowners adjust silvicultural [...]


Comments

Bill Colvin

10-03-2011

Cut a stand when it’s 17 years old, and where do you find yourself when sawtimber prices return to even half the traditional price spreads 5 years later?  Wishing you hadn’t.