Woodland Pulp in Maine resumed operations in mid-December following a 60-day shutdown and has now resumed purchasing wood from New Brunswick suppliers. The company spokesperson, Scott Beal, confirmed the restart of fiber procurement, mentioning the acquisition of hardwood and chips from Canadian suppliers.
Although the resumption of operations is a positive development, Kim Jensen, the general manager of the Carleton Victoria Forest Products Marketing Board, expressed that it is insufficient to fully support struggling private woodlot owners in the region. Sales have declined significantly compared to the previous year, leading some woodlot owners to exit the industry, while others continue to face challenges.
The imposition of a 10% tariff on lumber imports by U.S. President Donald Trump in September resulted in duty rates of 35% on New Brunswick wood, prompting Woodland Pulp to cease Canadian timber purchases due to increased costs. The mill, which previously relied on New Brunswick wood for a third of its supply, faced financial strain as a result of the tariffs.
Despite rehiring all 144 employees laid off during the shutdown, Woodland Pulp anticipates a gradual ramp-up in wood acceptance. The uncertain tariff environment poses challenges, making it difficult to predict the future of purchasing Canadian wood for the mill. The federal government’s $1.25 billion fund to support the industry has not translated into direct assistance for individual private woodlot owners, according to Jensen.
The decline in timber sales and rising cross-border business costs have further impacted the industry. Woodland Pulp’s shift to individual producers handling transportation and cross-border requirements has increased expenses for timber shipments to the U.S. Jensen emphasized the tightening markets, decreasing prices, and the consequential risks faced by private operators in the industry.
In conclusion, while the reopening of Woodland Pulp signifies progress, ongoing challenges persist for the forestry sector in New Brunswick. The future remains uncertain amidst the continued impact of tariffs and financial pressures on woodlot owners and industry stakeholders.