2007-11-23
Evolution of the red pine and poplar markets

The Claude Forget Inc. and Jean Riopel Inc. sawmills will not be buying red pine this winter. As for the Saint-Benoît-Labre’s Busque & Laflamme Inc. mills, they will be buying this species. However, producers must consider the transportation costs. For the months of December and January, Thurso’s Fraser Paper will increase its purchase of pulp-quality softwood, with the exception of cedar. This is why we ask that you communicate what volumes you intend to market during this period. Moreover, if the Louisiana-Pacific mill delays the resumption of its purchases, it will be difficult to redirect poplars to Thurso’s Fraser Papers and to Portage du Fort’s Smurfit-Stone since the full volumes have already been delivered there for this species—the case being the same for regular volumes to Bois-Franc. We must remember that these mills make pulp principally using hardwoods. Therefore, seeing the present situation, if we want to deliver more poplar and softwood, we must necessarily deliver more hardwood. For your information, other hardwoods, as well as softwoods, are accepted as incentives and to allow the harvest of all species. The superior quality of the pulp obtained using maple and birch is a significant advantage for the mills, allowing them to keep their markets. Producers that divert these essences to the firewood market make it difficult for the agreed contracts to be respected and they harm our financing efforts for work aimed at improving the value of private forests. In closing, we strongly encourage our producers to buck their poplars for lumber quality logs and peelers in order to decrease the volumes destined for pulp. Prices offered at Temlam Inc. and Produits forestiers Laurentiens enr. compensate for the effort such work requires. To limit costs, we can organize “return transportation” for Temlam. We invite you to consult Infos Marchés. You can equally communicate with Mr. Michel Martin or Mr. Pierre Farley for more specific information on these markets. Pierre Farley, forestry technician Production field consultant