Small Forestry Players Expected To Pay Heavy Price

Monday, May 01, 2006 at 14:41



It will likely be smaller operators who are hurt the most by the new softwood lumber deal with the United States, according to a provincial cabinet minister.


Eldon Lautermilch says the recently-announced agreement essentially caps the province’s market share, meaning there’s little room to grow.


Lautermilch says the agreement essentially cuts in half what exports Saskatchewan had in the first place.


He notes that when the US gegan slapping tariffs on softwood exports, many smaller operators lowered their exports in favour of other markets in Canada.


Lautermilch says that means they might not be able to get back what they lost.


He says large companies like Weyerhaeuser will probably be able to live with the new deal, despite the new export limits. Lautermilch believes those companies were probably able to keep their market share numbers up.


He says any way you examine it, the new deal ignores traditional market share numbers in favour of reduced ones.