The Small Scale Wood Processing Sector in the Kalum

Transcription

The Small Scale Wood Processing
Sector in the Kalum-Kispiox Region
of British Columbia: Challenges
and Opportunities
March 2005
Prepared for the North West Loggers Association
by:
R. Brouwer, RPF
Trevor Jobb, FT
Northwest Timberlands
March 2005
The Small Scale Wood Processing Sector in the Kalum-Kispiox
Abstract
Small-scale wood processors in the Kalum and Kispiox area of British Columbia (near the
communities of Terrace and Hazelton) are generally small sawmills with a capacity of less than
25,000 board feet per shift. Of forty-five small sawmill owner/managers that were interviewed,
thirty-six are cutting for profit with a capitalised industry of $8.7 million. Current production and
employment is primarily constrained by fibre supply. There are also gaps in business planning
structure, quality control, and marketing contacts. Recommendations are provided that will close
the gaps and allow the sector to achieve its capacity of 162 jobs and 42 million board feet of
annual production.
Key words: Small sawmills; sawmilling; employment; gap analysis; fibre supply; business
planning; continual improvement; marketing; BC Pacific Northwest.
Cover photos, left to right: Hogarth headrig sawmill; Kermode Pro-cut band sawmill; Morning Glory Farms scrag sawmill
Page i
March 2005
Acknowledgements
This project is funded through Human Resources and Skills Development Canada and coordinated through the North West Loggers Association
In-kind funding was provided by the BC Ministry of Forest (Kalum Forest District), 16/37
Community Futures Development Corporation, and the North West Loggers Association.
The time volunteered by the NorthWest Fibre Utilisation Study (NWFUS) Steering Committee is
greatly appreciated.
The authors would especially like to thank the many men and women that are beating the odds
and keeping the entrepreneurial spirit alive and well in the Kispiox and Kalum area. It has been a
pleasure to get to know you.
Page ii
March 2005
Executive Summary
A description of the small-scale wood processing sector in the Kalum and Kispiox area was
undertaken. Small-scale wood processors are generally small sawmills with a capacity of less
than 25,000 board feet per shift. Fifty-three small sawmills were investigated: forty-eight were
confirmed, and forty-five sawmill owners or managers were interviewed. The interview process
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from their operation. The small-scale wood processing sector is currently capitalized at $8.7
million. Seventy-e
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, cutting
11.7 million board feet on an annual basis. At this same level of capitalization, the cutting for
profit mills have a capacity to employ 141 persons and cut over 42 million board feet annually provided that a number of barriers and obstacles can be overcome.
Gaps were identified in the following categories: fibre security, business planning, continual
improvement, and marketing contacts. The most significant gap for the small sawmill industry is
fibre supply. At the current level of production, small-scale wood processors are consuming
approximately 49,500 m3 of sawlogs annually. To achieve full capacity will require an annual
supply of over 145,700 m3 of sawlogs.
To aid in closing the gaps, two sub-projects were undertaken. Internet research was conducted in
which ninety-two websites were reviewed and evaluated and local organisations and businesses
were investigated for their potential as partners with small sawmillers. This information was
summarised and is available to the small-scale wood processor.
Recommendations are made that will close or narrow the significant gaps that are preventing the
small-scale wood processing sector from reaching its potential capacity. Action plans are
included with the recommendations, and they are achievable in the short term, i.e. within the
2005 calendar year:
1. Ensure that timber is available in smaller blocks to provide an opportunity for small
operators to enter the market for wood.
2. Establish flexibility in setting the terms of BC Timber Sales.
3. Es
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.
4. Set up Log Holding Areas.
5. Expand the number of Woodlots in the Kalum and Kispiox.
6. Provide for the expansion of 3-Phase Power infrastructure.
7. Conduct an assessment of the Kalum/Kispiox fibre basket, with particular focus on
low quality wood.
8. Develop a strategic marketing plan for northwest wood products.
9. Establish an organisation of small-scale wood processors.
10. Upgrade the skill sets of small-scale wood processors.
In a region that has experienced hard economic times due to the corporate failure of a major
industry, the jobs created by local entrepreneurs in small wood processing are significant. The
small sawmiller has created real jobs, has invested real money, and struggled to succeed without
much support. Follow-through on the recommendations will result in an expansion of this highly
diversified and resourceful sector.
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March 2005
Table of Contents
Abstract ............................................................................................................................................ i
Acknowledgements......................................................................................................................... ii
Executive Summary ....................................................................................................................... iii
1.
Introduction......................................................................................................................... 1
1.1.
Background...................................................................................................................... 1
1.2.
Objective.......................................................................................................................... 1
1.3.
Project Activities ............................................................................................................. 2
1.4.
Planned Outcomes ........................................................................................................... 2
2.
Methodology ....................................................................................................................... 3
2.1.
Steering Committee ......................................................................................................... 3
2.2.
Small-scale Wood Processing Sector Study.................................................................... 3
3.
Results................................................................................................................................. 4
3.1.
Description (inventory) of sector..................................................................................... 4
3.2.
Analysis of gaps, challenges and opportunities............................................................... 9
3.3.
Market study/ Resource research................................................................................... 13
3.4.
Summary of required skill sets (for Hardwood, Container port)................................... 13
3.5.
Partnerships ................................................................................................................... 15
3.5.1. Business Planning ..................................................................................................... 15
3.5.2. Fibre Supply.............................................................................................................. 17
3.5.3. Manufacturing........................................................................................................... 18
3.5.4. Marketing.................................................................................................................. 18
4.
Recommendations............................................................................................................. 19
4.1.
Ensure that timber is available in smaller blocks to provide an opportunity for small
operators to enter the market for wood.......................................................................... 19
4.2.
Establish flexibility in the terms of BCTS Timber Sales .............................................. 20
4.3.
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lLogYa
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4.4.
Set up Log Holding Areas ............................................................................................. 21
4.5.
Expand the number of Woodlots in the Kalum and Kispiox......................................... 22
4.6.
Provide for the expansion of 3-Phase Power infrastructure .......................................... 22
4.7.
Conduct an assessment of the Kalum/Kispiox fibre basket, with particular focus on
fibre quality wood.......................................................................................................... 23
4.8.
Develop a strategic marketing plan for northwest wood products ................................ 24
4.9.
Establish an organisation of small-scale wood processors............................................ 25
4.10. Upgrade the skill sets of small-scale wood processors.................................................. 26
5.
Conclusion ........................................................................................................................ 27
6.
References......................................................................................................................... 28
Appendix A: NWFUS Steering Committee................................................................................. A1
Appendix B: Small-Scale Wood Processing Sector Study –Project Plan................................... A2
Appendix C: Small-scale Wood Processing Sector Study –Questionnaire ................................ A4
Appendix D: Terms of Reference for a Forum on Containerization ........................................... A6
Appendix E: Additional details on potential partners: NWCC, HRSDC .................................... A7
Appendix F: Steps to allow grade stamping of lumber produced by small-scale wood processors
.......................................................................................................................................... A9
Appendix G: A proposed pilot for establishing smaller Timber Sale Licences within the Kalum –
Kispiox area ................................................................................................................... A10
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March 2005
Appendix H: A method to establish flexible Timber Sale Licence terms within a fair and
equitable tender and award process. .............................................................................. A11
Appendix I: Prelimina
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..... A12
Appendix J: Contact list of local small-scale wood processors. ................................................ A13
Appendix K: Internet resource research results. ........................................................................ A16
List of Figures
Figure 1: Example of single circular blade headrig sawmill (A.J. Forsyth –Kispiox Area) .......... 5
Figure 2: Example of band sawmills .............................................................................................. 6
Figure 3: Examples of double blade circular sawmills................................................................... 6
Figure 4: Examples of secondary manufacturing/ adding value..................................................... 7
Figure 5: Example of maximum size of small-scale wood processor (Morning Glory Farms –
Kispiox Area) ...................................................................................................................... 7
List of Tables
Table 1: Current situation (annual basis, all mills) ......................................................................... 4
Table 2: Potential (annual basis, all mills, no additional capital investment)................................. 5
Table 3: Capital investment (all mills, current and planned).......................................................... 5
List of Charts
Chart 1: Breakdown of small-scale wood processing sector .......................................................... 4
Chart 2: Types of wood products manufactured by small sawmills, and number of mills
manufacturing each product................................................................................................ 8
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Kispiox................................................................................................................................ 8
Chart 4: Annual production of small sawmills - Current and Capacity.......................................... 9
Chart 5: Annual employment by small sawmills - Current and Capacity ...................................... 9
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......... 11
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March 2005
1. Introduction
This report provides a summary of the small-scale wood processing sector in the Kispiox and
Kalum areas, and
1.1.
Background
In 2002, planning for the use of Forest Investment Account funds identified the need for a
hardwood management strategy for the Kalum Forest District. In order to prepare a management
strategy, a project reviewing the state of the hardwood inventory in the area was conducted: this
project identified that the existing inventory information for hardwoods was suspect, likely
under-estimating the amount and extent of hardwoods in the Kalum-Kispiox region (Haworth
2003-1,2003-2). To determine if the actual extent of hardwoods could be quantified, a project
was undertaken to evaluate an area in the lower portion of the Nass TSA. The results of this
project identified that hardwood inventory information could be successfully updated, and that
there was a large increase in the amount of hardwoods on the area studied (Waszkiewicz 2004).
Extending this project to other hardwood areas was considered a logical next step.
Another part of the equation that was missing was whether there would be a demand for these
hardwoods. Historically, there has been a demand by larger non-local operators for cottonwood
and to a lesser extent, red alder. Only anecdotal information existed about the demand for birch
and aspen, generally indicating that these species were limited to local small sawmillers. To
prepare a proper hardwood management strategy, the extent of this local sawmilling sector
would have to be evaluated.
Due to continued inactivity in the local forest sector, funding from the Forest Investment
Account (FIA) was significantly reduced in 2003, and funds for continuing the hardwood
inventory work were no longer available.
The North West Loggers Association (NWLA) saw value in the hardwood inventory work: there
was potentially a new resource, which could result in opportunities for the loggers that make up
the NWLA membership. Inclusion of an evaluation of the small-scale wood processors would
also be of value to the NWLA membership, as local loggers would likely be carrying out the
harvesting activities necessary to providing the logs that the small millers would need.
A proposal to continue the hardwood inventory work and to evaluate the small-scale wood
processing sector was prepared by NWLA, in partnership with the BC Ministry of Forests, and
16/37 Community Futures. This proposal was submitted to Human Resources and Skills
Development Canada (HRSDC), and approved in 2004.
1.2.
Objective
As described in the contract between HRSDC and the NWLA, the objective for this project is to
conduct research, develop and recommend strategies to enhance community capacity for the
diversification of the forest industry into harvesting hardwoods to create employment/ selfemployment opportunities for displaced forestry workers in the Northwest Region. The two
projects that are the subject of this report are the vehicles used to achieve the objective.
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March 2005
1.3.
Project Activities
As described in the contract between HRSDC and the NWLA, the following information is to be
gathered with respect to the Small Scale-scale Wood Processing Sector:
 hardwood market opportunities currently available in both domestic and internationals
venues;
 survey a minimum of fifty local small businesses regarding issues related to their long
term sustainability and efficiencies
 determine a skills inventory and conduct a gap analysis of the hardwood skill sets in the
Kalum and Kispiox region. Also identify the specific skills required to capitalize on the
planned container port.
1.4.
Planned Outcomes
Based on the findings gathered in this study, the specific outcomes for the small-scale wood
processors study are
 A summary of the small-scale wood processing sector in the Kalum and Kispiox area;
 An evaluation of the factors required for success of the small-scale wood processing
sector; and
 Recommendations for bridging the gaps that are preventing success.
The report authors, proponents, and project steering committee are agreed that the
recommendations in this report must be achievable in the short-term, i.e. within one year.
The intent of this report is to provide recommendations that are achievable and that are focussed
on increasing the capacity for diversification of the forest industry and on creating opportunities
for forestry workers in the Northwest Region.
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March 2005
2. Methodology
2.1.
Steering Committee
A steering committee was formed of local individuals/ stakeholders to provide direction on the
two projects, including the small-scale wood processing sector study. Steering committee
meetings were held approximately once a month, and included a report on the progress of this
study. The steering committee provided initial approval of a project plan, and direction on any
proposed changes to the plan. All changes to the study required the approval of the steering
committee.
The Steering Committee membership is summarised in Appendix A. The project plan for the
small-scale wood processing sector study is provided in Appendix B.
2.2.
Small-scale Wood Processing Sector Study
The first step in this process was to describe the small-scale wood processing sector. The upper
limit for this sector was set at 25,000 board feet of production per day. The lower limit was set
by indicating that a person had to have a mechanical processing line; i.e. the cottage woodproduct industry was not included.
A survey questionnaire was developed to gather information on sawmill capacity, employment
figures, training requirements, challenges and opportunities. Almost all the information gathered
was through on site interviews. The questionnaire form is included in Appendix C.
The information gathered through the interview process was summarised, providing a description
of the sector. Analysis of the interview information allowed identification and ranking of the
challenges that the sector faces, and opportunities for addressing those challenges.
The initial results from the survey questionnaire were also used to direct investigation of possible
partnerships that could provide support to the small-scale wood processing sector.
A market study was initiated to review the potential products that could be generated from the
existing fibre supply and the milling capacity at hand. This study was curtailed when it was
realised that there would be limited value to a poorly-funded market study (see section 3.3 for
further details). With the agreement of the Steering Committee, the focus was instead shifted to
developing a list of resources, including market information, which would benefit sawmillers.
This list was developed by limiting the internet research time to no more than 40 hours.
Categories of potential interest were developed from the initial websites evaluated, and added to
as necessary. Evaluation of all the websites was performed by one researcher with small
sawmilling experience: this allowed a subjective value-rating to be assigned by this researcher to
each website.
Synthesis of the five aspects of the study (inventory of small sawmillers, skills/ training
requirements, ranking of challenges and opportunities, potential partnerships, and available
resources) resulted in a final evaluation and summarisation of the sector. The result was the
development of ten recommendations intended to support the current capacity as well as the
planned expansion of the small miller industry. A requirement for the recommendations was that
they must be achievable within the short term, i.e. within 2005.
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March 2005
3. Results
3.1.
Description (inventory) of sector
Fifty-three sawmills were identified for investigation through this study. Of these, forty-eight
were confirmed and forty-five sawmillers were interviewed. Thirty-six of the sawmillers
interviewed were cutting for profit.
Chart 1 and tables 1, 2, and 3 summarize the entire small-scale wood processing sector.
Small-scale wood processing sector - 53 mills investigated
In the Kispiox and Kalum area
Cutting for profit, but
Did not interview
Kispiox, 3, 6%
Mill not confirmed
Kispiox, 5, 9%
Retired Kalum, 1, 2%
Cutting for profit
Kalum, 17, 32%
Idle Kispiox, 1, 2%
Idle Kalum, 1, 2%
Hobby Kispiox, 1, 2%
Hobby Kalum, 5, 9%
Cutting for profit
Kispiox, 19, 36%
Chart 1: Breakdown of small-scale wood processing sector
The small-scale wood processing sector includes primary and secondary processors. Primary
processors :break down raw logs to a product (e.g. bandmills, headrigs, shake/shingle mills),
whereas secondary processors get their raw material from primary producers and further modify
or process this material to create additional products (e.g. mouldings, paneling, planed lumber,
remanufactured lumber, dunnage, pallets, etc.). Primary processors may also have a secondary
processing line; however, only stand-alone secondary processors are categorized as such in this
study.
Table 1: Current situation (annual basis, all mills)
Production
Employment
Primary processing currently produces
Secondary processing currently produces
Total:
Sawlog fibre required (at 4.5 m3/mfbm of primary processing):
Primary processing currently supports
Secondary processing currently supports
Total:
Estimated average employment season: 8 months per year.
Full-time equivalent employment:
11,005,000
1,050,000
12,055,000
49,522
fbm
fbm
m3
73
6
79
employees
employees
53
Jobs
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March 2005
Table 2: Potential (annual basis, all mills, no additional capital investment)
Production
Primary processing production capacity
Secondary processing production capacity
Total:
Sawlog fibre required (at 4.5 m3/mfbm of primary processing):
Employment
Primary processing can support
Secondary processing can support
Total:
Expected employment level at capacity: 10 months per year.
Full-time equivalent employment:
32,380,000
13,800,000
46,180,000
145,710
fbm
fbm
m3
133
29
162
employees
employees
135
Jobs
The number of full-time jobs per thousand cubic metres from this sector (0.9) is 80% greater
than that of the provincial average for the milling and value-added sector (COFI, 2000).
Table 3: Capital investment (all mills, current and planned)
Current
Primary processing currently capitalized at
Secondary processing currently capitalized at
Total:
$4,101,000
$4,590,000
$8,691,000
Planned
Primary processors have plans for an additional investment of
Secondary processors have plans for an additional investment of
Total:
$1,340,500
$1,150,000
$2,490,500
Figures 1, 2, 3, 4, and 5 provide examples of the range of sawmill types visited as part of this
study.
Figure 1: Example of single circular blade headrig sawmill (A.J. Forsyth –Kispiox Area)
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March 2005
1.
2.
Figure 2: Example of band sawmills
1. Wood-Mizer LT70 (Kermode Pro-Cut Wood Products –Kalum Area)
2. Hand-built (R&F Senden Contracting –Kispiox Area)
1.
2.
Figure 3: Examples of double blade circular sawmills
1. DNL doublecut (McCreery Contracting –Kispiox Area)
2. Mobile Dimension (Sawyer Smith –Kispiox Area)
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March 2005
1.
2.
Figure 4: Examples of secondary manufacturing/ adding value
1. Six-head moulder-planer (Dependable Lumber –Kispiox Area)
2. Kiln (
Don’
sCus
t
omCut
t
i
ng–Kispiox Area)
Figure 5: Example of maximum size of small-scale wood processor (Morning Glory Farms –Kispiox Area)
While data was collected from all sawmills interviewed, the remaining results presented here are
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March 2005
Small sawmills cut a diversity of products, although not all at once. Product lines and species cut
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they would shift the species they cut or their product line to match customer demands.
Number of "Cutting for Profit" mills manufacturing wood products
20
18
16
14
12
10
8
6
4
2
0
Lumber.
Decking.
Timbers.
Cants/
Ties.
Custom
cut.
Siding.
Shake/
Shingle.
2
Kalum
14
7
13
9
13
4
Kispiox
18
12
12
15
13
4
Veneer
blocks.
Flooring/
Other
Panelling. products.
5
1
4
2
Chart 2: Types of wood products manufactured by small sawmills, and number of
mills manufacturing each product
The small-scale wood processing sector consists mainly of primary processors; however, there
are three mills that only do secondary processing.
Investment in the small-scale wood processing sector is significant, with overall capitalisation of
$8,
219,
000i
nt
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na
ddi
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on,these mills have plans for additional
expansions worth $2,403,000.
Current Capitalisation of "Cutting for Profit"
mills in the Kalum and Kispiox
(Total value = $8,219,000)
Kispiox
Primary,
2314000, 28%
Planned Capital expansion of "Cutting for
Profit" mills in the Kalum and Kispiox
(Total value = $2,460,500)
Kispiox
Primary,
650500,
26%
Kispiox
Secondary,
90000, 1%
Kalum
Secondary,
4500000, 55%
Kalum
Primary,
1315000, 16%
Kalum
Secondary,
1150000,
47%
Kispiox
Secondary,
0, 0%
Kalum
Primary,
660000,
27%
Chart 3: Cu
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ta
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dc
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At their current level of cutting, the annual production of cutting for profit mills is 11,895,000
board feet (fbm). If the mills were to run at capacity this total increases to 42,540,000 fbm (see
Chart 4). Employment in this sector is currently at 78 jobs over an average season estimated at
eight months: this converts to the equivalent of 52 full-time positions. If the cutting for profit
Page 8
March 2005
mills were to reach their capacity, employment would jumps to 141 jobs on a ten-month season,
or 117.5 full-time positions. Chart 5 shows employment by the number of actual positions: fulltime equivalent employment would follow the same trend, with a relatively larger increase in the
jobs at capacity.
Annual Production (board feet) - Current and at Capacity - "Cutting for Profit" mills
25000000
20000000
15000000
10000000
5000000
0
Kalum
Kispiox
Kalum
Primary
Kispiox
Secondary
Current cut/year
2576000
8269000
960000
90000
Current Capacity/year
6040000
22700000
13200000
600000
Chart 4: Annual production of small sawmills - Current and Capacity
Annual Employment - Current and at Capacity - "Cutting for Profit" mills
70
60
50
40
30
20
10
0
Kalum
Kispiox
Kalum
Primary
Kispiox
Secondary
Current Jobs
26
46
4
2
Jobs at Capacity
47
65
27
2
Chart 5: Annual employment by small sawmills - Current and Capacity
3.2.
Analysis of gaps, challenges and opportunities
Through the interview process, sawmillers provided information on what they perceived to be
their strengths and limitations. They also were asked to indicate what items they would change
that were within their direct control, and what they would change for items that were outside of
their direct control. Chart 6 is a summarization of data collected in the small sawmiller
interviews and used to determine the gaps affecting the industry.
In addition, sawmillers were also asked to score certain factors that could influence their success:
this information is summarised in Chart 7.
Page 9
March 2005
Interview results - External change, Internal change, Limitations, Strengths
40
35
30
25
20
38
15
20
Knowledge,
Experience &
Training
Marketing
13
11
8
Mill infrastructure
Relationships
Strength
External
Change
Internal
Change
3
Strength
3
Limitation
4
Limitation
7
External
Change
Internal
Change
External
Change
Internal
Change
Strength
Strength
External
Change
Internal
Change
Strength
Financial planning
5
External
Change
Internal
Change
3
2
1
Limitation
Strength
Limitation
External
Change
Internal
Change
Fibre supply
External
Change
Internal
Change
1
0
10
Limitation
7
6
17
16
10
Strength
16
5
Limitation
16
14
Limitation
10
28
21
Site Infrastructure
Chart 6: Sa
wmi
l
l
e
r
s
’s
t
r
e
n
g
t
hs
,l
i
mi
t
a
t
i
ons
,a
n
dthe internal and external changes they would make.
The data from the interviews provided the basis for analysis and identification of gaps between
the current situation and the potential capacity for this sector. For example, the first section of
Chart 6 shows the number of times that small sawmillers identified External Changes, Internal
Changes, Limitations, and Strengths related to fibre supply: the high number of Limitations,
matched with no identified Internal Changes, indicates that there is a gap in fibre supply, and that
the small sawmillers feel that there is very little they can do about it. Chart 7 shows that fibre
supply related issues were ranked very high by the small sawmillers, indicating the significance
of this issue. Overall, the identified gaps fall into four categories: Fibre Supply, Business
Planning, Continual Improvement, and Marketing.
Fibre Supply
The most common limiting factor identified for the small sawmill industry is fibre security. At
the current level of production, all sawmillers are consuming over 49,500 m3 of saw logs
annually. Cutting for profit mills are consuming 48,800 m3 of saw logs, which translates to a
required harvest of 81,300 m3 from local forests1. A consistent finding from the interviews was
that many mills are operating at less than capacity, most often due to an inconsistent supply of
quality logs. Logs need to be of the right quality, and need to be delivered to the market place in
a timely and consistent manner.
To achieve full capacity will require a sawlog supply of 145,700 m3 for all sawmills. Cutting for
profit mills would require over 129,300 m3 of that volume, translating to a required harvest of
215,500 m3 from local forests1. This indicates a significant gap.
Challenges to closing this gap include:
 Present harvest levels
 Poor quality of available timber stands.
1
Based on forests in the Kispiox and Kalum having an average composition of 60% sawlog and 40% fibre quality.
Page 10
March 2005
 Economic inaccessibility of available stands (due to poor overall quality, excessive cash
flow requirements, or inability to process timber within regulated time frames).
 Relationships with potential suppliers (or lack thereof): current fibre agreements,
perceptions that small operators cannot or will not pay market price for logs, or a
resistance to putting together small sales, can all exclude small operators from access to
logs.
 Current allocation of fibre supply
Opportunities that may be created by closing this gap include:
 Industry operates at or near capacity
Ranking of factors that influence small
sawmiller success –“
Cut
t
i
ngf
orPr
of
i
t
”mi
l
l
s
 Jobs maximized
 Growth and economic expansion
become possible
0
10
Fibre Price.
5.5
20
16.5
Fibre Availability.
Review of the input received from sawmillers
indicates that there is a knowledge gap with
respect to business planning. Millers have a
clear understanding of the milling process –it
is a hands-on process where successes and
failures are quickly identified –they know
their strengths and weaknesses, and have plans
to change and improve things where they can.
On the other hand, while millers indicated a
level of business experience, the lack of items
identified for change or improvement with
respect to business planning indicates that
there is a knowledge gap.
36
5
Infrastructure.
1
9
29.5
2
1
1
2
Regulations.
8
6
6
Waste Management.
6.5
Access to Capital.
1
Size of Operation.
2.5
2
4
4
1
2
Networking.
Skills/ Training.
38
13
Links: Primary to Secondary.
Partnering with Area Stakeholders
48
4
Markets.
Barriers from large customers.
50
24.5
Re-allocation of Fibre Supply.
Zoned Land.
40
11
12
Fibre Quality.
Business Planning
30
10
Building Codes.
Container Port.
Business planning and an understanding of the
synergies that can be developed are more
nebulous than the day-to-day activity of
running a mill.
Other.
2
5
1
Kalum
Kispiox
Chart 7: Summary of sawmiller
s
’ownr
a
n
k
i
ngof
factors that can influence their success
Challenges to closing this gap:
 Current knowledge of available business planning tools.
 Lack of access to product and marketing analyses.
 Understanding the importance of synergies and relationships.
 Increased efficiencies and improved bottom line.
Page 11
March 2005
Continual Improvement
The small sawmilling industry prides itself on producing a quality product that meets their
c
us
t
ome
r
s
’e
xpe
c
t
a
t
i
ons
.This is identified as a strength amongst many sawmillers. The smallscale wood processing sector does not compete with high production dimension mills that
produce commodities. The competitive edge for the small milling industry is to produce
specialty products of high quality. Products are not mass produced, are commonly custom orders
meeting special demands, and there is personal attention (usually by the owner) to the end
product.
While the importance of quality is widely recognised, there is still a gap in product knowledge,
milling techniques, and quality assurance. Several millers identified a need for improving their
knowledge and training in product quality and/or milling techniques. At times, millers expressed
concerns with being unable to sell certain product lines (downfall). While all products are not
saleable, assuring the quality of products from the small-scale wood processing sector is essential
for the survival of this custom-cutting niche. A related theme, identifying a desire to better
understand lumber grading, is also an indication of this gap.
 Training in lumber grading
 Networking with other sawmillers on products, product quality, and milling techniques
 Feedback from customers on product quality
 the ability to sort and therefore market a variety of grades ;
 the potential to increase the average sale price of all lumber sold;
 The potential to increase the consistent quality of products, making them more saleable.
Marketing
Sawmillers often market their products through obvious methods –pick up the yellow pages and
s
t
a
r
tc
a
l
l
i
ngpot
e
nt
i
a
lc
us
t
ome
r
s
,t
a
l
kt
oot
he
r
sa
nds
e
ewhot
he
y
’
r
es
e
l
l
i
ngt
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e
l
yonpr
e
vi
ous
relationships and custome
r
st
os
pr
e
a
dt
hewor
doft
hemi
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l
e
r
s
’pr
oduc
t
sa
ndqua
l
i
t
y
.Thi
sc
a
nbe
effective, often resulting in one or two larger customers. However, this leaves the miller at risk if
circumstances change. In addition, the local market place is likely filled at the current level of
production, and if millers wish to expand to their capacity, new markets and customers must be
found.
If the fibre security gap is closed, a marketing gap will still exist: the addition of 30 million
board feet of product will flood local markets. Therefore, sawmillers will have to find new,
additional markets for their products, or new customers to cut custom products for. Most
marketing is now done through electronic means.
 Relatively low use of computers as a networking and marketing tool.
 Current awareness of the value of relationships with sawmillers and potential partners
Page 12
March 2005
 Little organization of the small sawmilling sector, particularly in the Kalum Area
Having access to market resources, especially through internet access, will help close this gap.
Familiarisation with computers, email, and accessing the internet is necessary.
 Increased knowledge of markets and products
 Increased sales with potentially higher values
 Results in consistent production and cash flow by securing reliable markets
3.3.
Market study/ Resource research
As part of the project plan for this study, it was anticipated that market information would show
as a gap: therefore, a market study was planned. This study was initiated, with the objective of
reviewing potential products from local forests and the market for those products. It was quickly
determined that the time and information required to carry out this study was beyond the scope
of this project. At the same time, interviews with sawmillers were identifying an information gap
with respect to market and resource information (see previous section). As a result, the focus was
shifted to researching available resources that would benefit sawmillers.
A resource list evaluates 92 websites that are relevant to the small-scale wood processors, and is
available as Appendix K to this study. Digital versions of this listing will be made available to
the small sawmillers.
The resource list also contains a quick lesson on how to search the internet, helping address the
knowledge gap with respect to accessing resources.
3.4.
Summary of required skill sets (for Hardwood, Container port)
As outlined in the introduction to this study, information was lacking with respect to the
hardwood inventory in the region. A subsequent knowledge gap was therefore expected on how
to mill hardwoods, and a description of the skill sets necessary for hardwood milling was
included in the project plan for the study.
The container port planned for Prince Rupert was also identified as a new factor for the region,
so identification of the skill sets for small-scale processors to be able to successfully move
products through the container port was also included in this study.
Hardwood Milling Skill Requirements
Several sawmillers are actively working with hardwoods. Through the interview process, their
knowledge base was compared to that of sawmillers as a whole. In general, the skill sets between
hardwood and softwood milling are not particularly different. Differences appear as sawmillers
specialise in particular niche markets, and skill sets become refined and focussed on the products
produced rather than on the species that are cut.
The skill sets for the small miller are extremely varied. In many cases the small miller is called
upon to have the skills to perform all the functions from the forest to the market. The small
Page 13
March 2005
miller commonly harvests, manufacturers and markets his product to a large diversity of
customers. Through the interviewing process, the skill sets were determined to be:
 Knowledge in the operation of a viable business
 Harvesting experience (equipment operation)
 Knowledge of forest practices
 Knowledge and understanding of a wide range of government regulations
 Knowledge of log specifications/scaling/current values/ and sources
 Knowledge of manufacturing equipment/ operation and maintenance
 Knowledge of lumber grades
 Knowledge of production costs
 Knowledge of the market place ( logs and products )
 Knowledge of various transportation systems and the associated limitations and costs
Of these skill sets, the study identified the following needs to support the sector in expanding the
knowledge base of its owners and workers:
 Business skills/business plans/ business communication/bookkeeping
 Lumber grading ( includes all products)
 Market development/ Marketing techniques
 Computer training
 Kiln operation and drying techniques- developmental
 Basic log scaling
Containerization Skill Requirements
Containerization coming to the port of Prince Rupert brings economic advantages to this region
not available elsewhere. Containers are how the world trades. Having access to port facilities that
can load and ship containers with local product can be the difference to the viability of a
business.
Although the first thought is the great markets of Asia that become available, the eastern and mid
west of North America also become accessible.
Containers will flow each way.
Although we assume containerization will provide an advantage for opening up markets due to
lower freight costs and accessibility, there is not a clear understanding in the Kalum/ Kispiox
area of those costs, or of operational technicalities that may require further infrastructure. This
gives rise to many questions:
Will there be stuffing facilities at the port of Prince Rupert? Will local manufacturers be
able to stuff at their worksite, and what capital equipment would be required to be able to
stuff a container? What businesses could take advantage of the opportunities related to
support the terminal operator? What is the range of costs expected for leasing a
container? Is it based on volume? Can local manufactures form leasing groups to lower
costs? What are the minimum and maximum container sizes? Is it cost effective to load
your own container and ship by truck, or would local manufacturers be better off sending
product to a stuffing facility? Will the port be able to stuff everything from product on
pallets to 50 foot long export logs? What is the expected delivery time (for instance, if we
were to ship shingles to Chicago, what should the normal process take from the time the
product is brought to a stuffing facility)? What about insurance and the possibilities of
Page 14
March 2005
damaged /lost or stolen goods? Is there a guarantee from the shipper/ stuffer? What is
required for documentation of product? What requirements does Canada require for
export of products or wood products specifically? What requirements does some of the
larger trading countries require (such as the US, China and Japan)?
This sampling of questions has made it obvious that there is a real need for a forum on
containerisation. Thea
ut
hor
sa
g
r
e
ewi
t
ht
her
e
c
omme
nda
t
i
onoft
heCi
t
yofTe
r
r
a
c
e
’
s
Community Task Force on Forestry that the city, through the Terrace Economic Development
Authority (TEDA), organise forums and investigate business opportunities in the Terrace area
related to containerization. i.e.: a container stuffing facility for logs and wood products (City of
Terrace, 2004).
TEDA is charged with facilitating these forums and is seeking to identify potential stakeholders
to assist in the organizing and implementation and funding of the forums. TEDA may act as the
lead proponent in support of forum development. For the local economy to develop markets they
need to know their raw material, manufacturing, and transportation costs. With that information
they can adequately quote their products with delivered costs. A possible terms of reference for a
forum on containerization is provided in Appendix D.
3.5.
Partnerships
This Small-Scale Wood Processing Sector Study identified relationships of value to the small
scale sawmiller. Included in the project plan for this study, was a review of potential
relationships, or partnerships, with local organizations and businesses.
As the review proceeded, the authors identified that partnerships, whether formal or casual, could
bea
ppl
i
e
dt
oa
l
la
s
pe
c
t
soft
hes
ma
l
ls
a
wmi
l
l
e
r
s
’bus
i
ne
s
s
.The
s
epot
e
nt
i
a
lpa
r
t
ne
r
swe
r
e
approached to explore opportunities that may be mutually beneficial, and their response was very
supportive.
The businesses and organisations described in this section illustrate that there are many potential
partners that can provide support to the small-scale wood processing sector. The descriptions of
these potential partners are organised according to their best fit within the four primary aspects
of the small-scale wood processing sector:
Business Planning
Fibre supply
Manufacturing
Marketing
3.5.1. Business Planning
16/37 Community Futures development Corporation (business planning and training
services)
16/37 Community Futures Development Corporation offers one-on-one assistance for
entrepreneurs to learn or improve their business skills. Sessions are held in various
communities. 16/37 Community Futures office is located in Terrace. Contact the 16/37
CFDC office for the next available session.
Skill training is available in the following areas;
 Basic Bookkeeping for small business
Page 15
March 2005







Credit and collections for small business
Basic marketing for small business
Advertising and promotion for small business
Organisational skills for the entrepreneur
Getting and keeping control of your business
Effective business communications
Business plan development
These services are offered free of charge to individuals or groups. Many of the skills
training would be an asset to the small miller.
R.K. Morrison & Associates (business and financial planning services)
R.K. Morrison & Associates is a local company providing business services to the
entrepreneur. These services are for a fee. Services include but are not limited to:
 Development of business plans
 Identification and research for potential funding sources
 Assist in funding applications
 Management services support
 Provides a free consultation/ flexible hours
Northwest Community College (Training services)
Northwest Community College, through their Continuing Education Program, offers a
number of short courses that were identified from the sawmiller questionnaire as training
needs. These courses are available on a continuing basis designed to meet the general
requirements of the community at large, but will also meet the specific needs of some
small saw millers.
Northwest Community College Continuing Education Program will tailor a course for a
group, on any subject. They will pursue the delivery of any specialized course for the
small sawmiller. The one stipulation is that all costs must be recovered. An individual or
group needs only to contact the continuing education department and present the course
or seminar that they would like to see. The department will do research on the topic to
see if there is an existing course, identify potential instructors, and deliver a course based
on a minimum enrolment. As identified by the small sawmiller questionnaire, courses
that may be of interest for presentation include
 Lumber Grading( Hardwood or Softwood)
 Kiln Drying Techniques
 Log Scaling –(introduction)
 Sawmill layout and mechanization
In addition to tailoring courses for specific needs, NWCC also has a curriculum of
established courses that are continually offered:
Computer Training (Introduction to Computers, Internet, and E-mail)
Accounting (Introduction to Accounting; Simply Accounting)
Health & Safety (First Aid: Level 1 and 3, Transportation endorsement)
Page 16
March 2005
Further information on course content, cost, and schedules can be obtained from the
Continuing Education Calendar. This publication is updated bi-annually and is available
at no charge from either the Terrace or Hazelton campus of Northwest Community
College, or on the internet at www.nwcc.bc.ca. Additional details on some of the NWCC
courses mentioned above are provided in Appendix E.
HRSDC-Human Resources Development Services Canada (employment services)
Human Resource Services Development Corporation offers three wage subsidy programs
that may be of interest to the small miller. Each program is designed to meet specific
goals and objectives and applications are assessed on that basis. The following gives a
brief synopsis on each program. For more information contact the local HRSDC office.
Or visit their website
Summer Career Placement Program (Wage subsidy to employers up to 50% of costs)
Targeted Wage Subsidy Program (Wage subsidy for a recent EI recipient)
Opportunities fund (Assistance program for persons with a physical or mental disability)
Additional details on these programs are provided in Appendix E.
First Nations (Access to capital)
Joint ventures conducted on Reserve lands have tax advantages and benefits available.
Joint ventures with First Nations provide the opportunity for funding through various
programs such as TRICORP (Tribal Resources Investment Corporation) and the
Aboriginal Business Corporation.
The Moricetown Band (We
t
’
s
uwe
t
’
e
n)
,t
heKi
s
pi
oxBa
nd(
Gi
t
xs
a
n)
,a
ndt
heGi
t
a
ny
ow
First Nations have all entered into joint venture agreements. Both the Kitsumkalum (R.
Bartlett, pers. comm.) and Kitselas (D. Marten, pers. comm.) First Nations have
confirmed to the authors that t
h
e
yha
vea
ni
nt
e
r
e
s
ti
nj
oi
ntve
nt
ur
e
s
.TheLa
xKw’
a
l
a
a
ms
has had discussions with various groups in their recent efforts to acquire TFL 1,
indicating that they too are open to joint venture possibilities.
3.5.2. Fibre Supply
Kalum Ventures Limited Partnership
Kalum Ventures is a First Nation corporation that holds non-renewable forest licences
with a total cut of 80,000 m3per year. They are interested in developing joint business
ventures with both aboriginal and non aboriginal individuals and corporations. Kalum
Ve
n
t
ur
e
s
’obj
e
c
t
i
vei
st
oc
r
e
a
t
eavi
a
bl
ebus
i
ne
s
se
nt
i
t
y
,a
c
hi
e
vi
ngma
xi
mum va
l
uea
nd
employment opportunities for Kitsumkalum Band members from the forest resource.
 Kalum Ventures can offer land on reserve for joint ventures with available 3
phase power
 Kalum Ventures can offer a supply of raw material to small millers under a joint
venture agreement
 Kalum Ventures is open to discussions regarding opportunities for joint ventures
Page 17
March 2005
Bell Pole Company
Bell Pole Company operates a Forest Licence in the Kispiox Timber Supply Area with
operations north of Kitwanga, near Gitseguecla, and in the Suskwa Valley. Bell Pole
presently sells fibre from this tenure on the open log market. They would be interested in
selling volume to the small miller based on current market prices. For log sales contact
Be
l
lPol
e
’
sTe
r
r
a
c
eof
f
i
c
e
.Be
l
lPol
ea
l
s
oha
sat
e
nur
el
oc
a
t
e
di
nt
heTe
r
r
a
c
ea
r
e
awhi
c
hi
s
managed and marketed through A&A Trading Ltd.
A&A Trading Limited
A&A Trading is a log marketer and exporter that manage the Terrace tenure of Bell Pole
Company. A&A is also partnered with the Kitselas First Nation (through Kitselas Forest
Products Ltd.) on their non-renewable Forest licence. A&A has confirmed that they are
willing to trade and sell logs, and are open to identifying smaller patches of timber for
sale to the local market.
3.5.3. Manufacturing
Kyahwood Joint Venture
Ky
a
h
woodi
saj
oi
ntve
nt
ur
eo
p
e
r
a
t
i
onbe
t
we
e
nt
heMor
i
c
e
t
ownBa
nd(
We
t
’
s
uwe
t
’
e
n
First Nation) and Canfor (Canadian Forest Products). The plant, located in Moricetown,
produces finger jointed frame grade lumber. In addition they have a planer that custom
pl
a
ne
sf
orCa
nf
or
’
sdi
me
ns
i
onmi
l
l
s
.Ky
a
hwoodi
sope
nt
odi
s
c
us
s
i
ngt
e
r
msi
nwhi
c
h
custom planning services could be supplied to the small milling industry.
Kitwanga Lumber Company
Kitwanga Lumber Company is a dimensional mill located in Kitwanga BC, producing
construction grade whitewood and cedar lumber. They are interested and open to ideas
that would benefit the small milling industry and their operations. Co-operative initiatives
may include log trade agreements, marketing synergies, and custom planing and drying.
3.5.4. Marketing
McDonald Inspection Services
McDonald Inspection Services, based in Campbell River BC provides lumber grading
certification. Through discussions with the manager, they are interested in providing that
service to northwest sawmillers. To minimize costs they would be willing to take a
retired lumber grader and provide one day of training so that s/he may do lumber grade
inspection and certification. This certified inspector can not be anyone presently
employed directly with a wood product manufacturer: s/he could then inspect lumber and
certify as required. Lumber could be air dried to < 19% to meet construction
requirements. Kiln Dried Construction lumber is commonly graded to < 19% also.
By grading and certifying lumber, a local market may open for construction lumber,
providing an outlet for side lumber and downfall. The steps necessary to grade /certify
lumber are provided in Appendix F.
Page 18
March 2005
4. Recommendations
These recommendations are meant to be achievable in the short-term (i.e. within 2005):
1. Ensure that timber is available in smaller blocks to provide an opportunity for small
2. Establish flexibility in setting the terms of BCTS Timber Sales.
3. Es
t
a
bl
i
s
ha“
Vi
r
t
ua
lLogYa
r
d”
.
4. Set up Log Holding Areas.
5. Expand the number of Woodlots in the Kalum and Kispiox.
6. Provide for the expansion of 3-Phase Power infrastructure.
7. Conduct an assessment of the Kalum/Kispiox fibre basket, with particular focus on fibre
quality wood.
8. Develop a strategic marketing plan for northwest wood products.
9. Establish an organisation of small-scale wood processors.
10. Upgrade the skill sets of small-scale wood processors.
The following sections provide more specific details on the recommendations.
4.1.
Ensure that timber is available in smaller blocks to provide an opportunity for small
Specifically: That the policy gap be addressed between the Ministry of Forests and BCTS in
regards to the delivery of small volumes of wood between 50 m3and 7000 m3.
Discussion:
This gap has been identified and discussed with the Minister of State for Forestry, Roger Harris,
Kalum Forest District Manager Rick Manwaring, and BCTS Skeena Business Manager Norm
Parry. There is recognition that this gap is specific to BC Timber Sales, as other licencees are not
constrained in the size of blocks that they will offer for sale. This gap has been described as a
lack of capacity within BCTS and is also driven by internal BCTS policy that prevents delivery
of smaller blocks within the BCTS stand profile to the market place. There is also recognition at
the local BCTS level that this gap is affecting both the province in its ability to generate revenue,
and the small miller in securing fibre supply.
Action plan: WHAT - Establish a method to deliver smaller Timber Sales (average 2,000
m3) within the Kalum and Kispiox area. This may be considered a pilot for the rest of the
Province. One possible method is provided in Appendix G.
WHO - Province of BC through the BCTS Skeena Business Area (L. Pedersen, Assistant
Deputy Minister- BC Timber Sales, N. Parry, Timber Sales Manager –BCTS Skeena
Business Area)
WHEN - Within the second quarter of 2005.
Status of the Action Plan: Agreement at the Skeena Business Area level. Support from
the Assistant Deputy Minister still required, followed by actual initiation of the action
plan.
Page 19
March 2005
Benefits that will result from following this recommendation:
 The opportunity for the crown to generate additional revenue
 Increased opportunity to secure fibre for small millers
 Increased opportunities for small and medium sized logging companies
4.2.
Establish flexibility in the terms of BCTS Timber Sales
Specifically: That the term of BCTS Timber sales be flexible to allow the small miller to access
an equal portion of the sale per year, up to a four year time period.
Discussion:
Currently, the term of BCTS timber sales requires the relatively quick removal or completion of
the sale, usually one to two years. A significant penalty applies to timber sales that are not
harvested within the established term. Having the ability to spread the harvest over four years
would allow small miller to compete for sales that are currently out side of their ability to
manage, and to secure a multi-year fibre supply. This will emulate the process that is occurring
in the forest industry, where major licencees have the opportunity to harvest approved cutting
permits within a four year time frame without penalty.
Concerns have been raised with respect to ensuring that timber sales are advertised and awarded
in an equitable fashion, and that silviculture obligations on a timber sale that is harvested over a
longer period of time do not exceed the regeneration delay time period. These are valid issues,
but are not insurmountable: one possible method to ensure that the terms of Timber Sale
Licences are set in a fair, equitable, and efficient way is provided in Appendix H.
Action plan: WHAT - That the BCTS Skeena Business Unit develop a strategy to allow
for flexibility in setting the term of Timber Sale Licences that would meet the successful
bidders requirements while ensuring a fair bidding process. That this strategy be piloted
in the Kalum-Kispiox for applicability to the rest of the Province.
WHO - Province of BC through the BCTS Skeena Business Area (L. Pedersen, Assistant
Deputy Minister- BC Timber Sales, N. Parry, Timber Sales Manager –BCTS Skeena
Business Area)
WHEN - Within the second quarter of 2005.
Status of the Action Plan: General agreement at the Skeena Business Area level. A
specific method for establishing term flexibility needs to be agreed to and confirmed by
the Assistant Deputy Minister, followed by actual implementation of the action plan.
 Provides longer term fibre security to small millers.
 Increases small sawmillers’capacity to either maintain or expand their business with a
secure raw material.
 Increases small sawmillers
’ability to be dependable suppliers of their products.
Page 20
March 2005
4.3.
Es
t
abl
i
s
ha“Virtual Log Yard”
Specifically: That a pilot project be initiated to provide open access for the local sales of logs.
Discussion:
As another means of addressing fibre supply issues, this recommendation is intended to link
small scale mill owners to the logging community. Several methods of connecting these two
were considered: electronic buy-sell bulletin boards (internet or email based), local bulletin
boards, radio advertisement, newspaper notices. After consideration of the various factors, it was
determined that in the short-term, a newspaper-based bulleting board was the best candidate.
There may be no need for a long-term solution: if the newspaper-based advertisement is
successful, relationships between the small miller and local log suppliers will be built and this
delivery mechanism will no longer be required.
Action plan: WHAT - That an open access classified advertisement for local log sales be
placed in the Northwest Weekly newspaper for a trial period of six months.
WHO - 16/37 Community Futures Development Corporation and Northwest Timberlands
WHEN –By the end of April 2005.
Status of the Action Plan: Action initiated.
 Increased opportunity for local logging companies to sell logs, particularly small sorts
that may not have immediate market opportunities (i.e. dry sawlogs/ small volumes)
 Increased access to logs for the small miller providing opportunity to secure fibre
4.4.
Set up Log Holding Areas
Specifically: That approved scale sites be used for log holding areas.
Discussion:
Local loggers have indicated that it would be a benefit from time to time to use approved scale
sites for holding areas of small or presently unmarketable logs generated through harvesting
activities. These logs may eventually be sold and moved offsite or bought by the individual scale
site holder. Many of the small-scale wood processors have approved scale sites, so by bringing
these small sawmillers and local loggers together, the necessary contacts will be made to
facilitate temporary log storage.
Action plan: WHAT –Distribute a small sawmiller contact list (Appendix II) to local
loggers and log traders/ brokers.
WHO –North West Loggers Association.
WHEN –By the end of April 2005.
Status of the Action Plan: Action initiated. Requires follow-up.
 Allows clean-up and completion of harvest areas by moving small volumes of presently
unmarketable wood, or wood that may otherwise be stranded due to timing constraints.
 Increased access to logs for the small miller providing opportunity to secure fibre.
Page 21
March 2005
4.5.
Expand the number of Woodlots in the Kalum and Kispiox
Specifically: That through the creation of additional woodlots and the expansion of existing
woodlots in the area, the diversification of forest tenures and potential sources of raw materials
to the small-scale wood processing sector will be enhanced.
Discussion:
All of the small sawmillers that operate woodlots indicated the woodlot as a strength: they have a
reduced reliance on outside fibre sources for the success of their business. The woodlot also
provides diversification to their business and is commonly tied to other uses of the land.
Woodlots within this region comprise a small portion of the total allowable annual cut (AAC)
but contribute to a large diversity of forest users.
Re-allocation is viewed by most small sawmillers as a positive step in improving access to fibre.
Although this one program is not the only answer to fibre supply, it is one means of
strengthening and diversifying the mechanisms by which fibre is delivered to the market place.
There are plans for additional woodlots in the Kispiox; however, there has been reluctance on the
part of the Kalum Forest District to expand the woodlot program in the Kalum. This reluctance
seems to be based on a provincial policy or formula that dictates the balance of woodlots,
community forests and other tenures. However, in this region, significant undercut2 volume is
available, and could be used to ensure this recommendation is carried forward: 150,000 m3 of
undercut could allow a 1,500 m3 woodlot to operate for 100 years. Forest District Managers are
encouraged to use any endorsements of this report by local, regional, or provincial bodies in
order to facilitate any necessary policy changes to ensure that the action plan can be carried out.
Action plan: WHAT –Advertise for the application of a minimum of two woodlots in
each of the Kalum and Kispiox Timber Supply Areas (TSAs). Give consideration to at
least one woodlot in each of the Cranberry and Nass TSAs. Accept applications for the
expansion of existing woodlots.
WHO - District Managers in the Kalum and Skeena-Stikine Forest Districts.
WHEN –Advertisements for new woodlots by the end of the second quarter of 2005;
Acceptance of applications for the expansion of existing woodlots by the end of the fourth
quarter of 2005.
Status of the Action Plan: Preliminary discussions have occurred, however, action
requires buy-in by District Managers.
 Increases diversity within the local economy.
 Provides opportunity to increase security of fibre for small sawmillers.
4.6.
Provide for the expansion of 3-Phase Power infrastructure
Specifically: That the necessary planning and preparatory work be conducted to allow the
support and funding of an expansion of 3-phase infrastructure within the region, thereby
supporting economic growth and development.
2
Undercut volume occurs when the total allowable annual cut (AAC) from a forest tenure is not harvested, and is
the difference between the AAC and the actual volume harvested.
Page 22
March 2005
Discussion:
The lack of 3-phase power infrastructure is recognized in this study as a limiting factor if
expanded growth potential is to be realized. As most of the smaller mills are powered by small
engines, the expansion into kilns, planers, shapers and moulders is more difficult and costly than
operating with 3- phase both on capital costs and operating costs. This limiting factor does not
apply to just small sawmills: there are other light industries that could benefit from 3-phase
power.
It is not reasonable to expect that 3-phase power infrastructure will be provided to all the existing
small sawmill sites. However, if there was a cohesive long-term plan for where 3-phase power is
intended to go, and if the needs of existing industry (including the small-scale wood processing
sector) were considered in that plan, then small sawmillers could plan their expansions and
growth to tie in with the expansion of 3-phase power.
Action plan: WHAT - Promote local and regional infrastructure by establishing
objectives and goals for the expansion and extension of 3-phase power.
WHO - The Regional District of Kitimat-Stikine, working with support from the Province
of BC, local municipalities, and the Northwest Corridor Development Corporation
WHEN –Establish a terms of reference for this process by the end of the second quarter
of 2005. Establish a funding mechanism for the planning phase by the end of the third
quarter. Begin the planning phase as soon as funding is available.
Status of the Action Plan: Skeena MLA has stated support for 3-Phase Power
expansion. Discussions with BC Hydro confirm that this action needs to be driven by the
provincial and local governments. Action requires follow-up.
 Encourages economic development within the region.
 Supports existing businesses by reducing capital and operating costs.
4.7.
Conduct an assessment of the Kalum/Kispiox fibre basket, with particular focus on
fibre quality wood
Specifically: That the opportunities for the potential uses of the regional fibre basket be assessed
and evaluated through an expert overview study, giving special attention to the potential uses of
fibre-quality wood.
Discussion:
TheCi
t
yo
fTe
r
r
a
c
e
’
sCommunity Task Force on Forestry recommended that an expert overview
study be conducted to assess the potential of economic use of the region’
s low quality fibre. With
the demise of New Skeena Forest Products and its associated tenures and facilities, there is an
opportunity to consider options for utilising the entire regional wood profile. The focus on fibrequality wood is needed as the structure of the forests in the region is such that fibre-quality and
lumber-quality wood are not found separately: to access lumber-quality wood, fibre-quality
wood must also be harvested. Therefore, by finding opportunities for the fibre-quality wood, the
availability of lumber-quality fibre for primary manufacturing and value added wood products
will be increased. This would strengthen the small millers’access to their raw materials.
Page 23
March 2005
Action plan: WHAT –Conduct an expert overview study on the opportunities for the
potential uses of the regional wood basket, giving special attention to the potential uses
of fibre-quality wood.
WHO –Terrace Economic Development Authority (TEDA) to act as lead proponent, with
assistance from the Regional District of Kitimat-Stikine.
WHEN –End of the third quarter of 2005 if funding can be secured.
Status of the Action Plan: The Implementa
t
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onCommi
t
t
e
eoft
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r
r
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c
e
’
s
Community Task Force on Forestry are actively pursuing this action in partnership with
TEDA. TEDA and the Regional District of Kitimat-Stikine are exploring funding sources
through the following agencies: Community Futures Development Corporation; Western
Economic Development Diversification; BC Ministry of Small Business and Economic
Development. Local partnerships are also being investigated.
 Improved confidence in investment decisions.
 Regional economic diversification.
 Significantly improved security for all people of the region.
4.8.
Develop a strategic marketing plan for northwest wood products
Specifically: That local government support the development of an overall strategic marketing
plan for northwest wood products.
Discussion:
TheCi
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fTe
r
r
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c
e
’
sCommuni
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eonFor
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s
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omme
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ks
hops
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,
or presentations be conducted to aid in marketing; this recommendation would be more effective
if it was being carried out under a cohesive and strategic marketing plan for the region.
Municipal governments (Terrace, Kitimat, Stewart, and the Hazeltons) and the Regional District
of Kitimat-Stikine can create opportunities within their own borders through the development of
an overall strategic marketing plan. Given the predominance of the local forestry resource in the
regional economy, a narrowed focus on forest products marketing would be appropriate. This
would in turn provide support to the small-scale wood processing sector in the area.
Appendix I provides a preliminary ou
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Northwest. In the short-term, the following workshops or forums will support the development
of markets for products from the small-scale wood processing sector in the northwest:
 Non-commodity markets –provide information on global markets for non-commodity
(higher value) wood products and the exporting rules that apply to these products.
 Containerization –provide information on technical aspects of the containerization
process.
Action: WHAT - Co-ordinate a comprehensive overall strategic marketing plan for
northwest forest products. Include a forum on the technical aspects of containerization,
and on global markets for non-commodity wood products and exporting rules.
Page 24
March 2005
WHO –Terrace Economic Development Authority (TEDA) to act as lead proponent, with
assistance from other municipal economic development offices, the Regional District of
Kitimat-Stikine, and the Hon. Nathan Cullen MP (on the containerization forum.)
Status of the Action Plan: The Implementation Committee of the Ci
t
yofTe
r
r
a
c
e
’
s
Community Task Force on Forestry and TEDA are working in partnership to facilitate
workshops tours and presentations, which will provide forest product marketing
information to local manufacturers. This step needs to be incorporated into a much
broader, overall strategic marketing plan. Action requires follow-up.
 Promotion of the local forest sector and the special talents that the small-scale wood
processing sector.
 Improved product development and increased product sales.
 Will ultimately result in increased log requirements, benefiting local logging companies.
4.9.
Establish an organisation of small-scale wood processors
Specifically: That the small-scale wood processing sector organize it to effectively promote and
strengthen its industry.
Discussion:
The study confirmed the value to business and individuals in organizing in associations and
groups. The benefits in knowledge exchange, synergies in marketing, shared equipment, log
purchasing power, training delivery and service procurement are invaluable. In addition, an
organization can provide a single, significant voice on common concerns and challenges. For
instance such an organisation could monitor and follow-up on the progress of the ten
recommendations in this report.
Action plan: WHAT - That the sawmilling community of Terrace organize formally
either in a partnership with the Hazelton Sawmilling Association, as a Branch of the
North West Loggers Association, or as a new organization.
WHO –Trevor Jobb of Kermode Pro-Cut to organise the initial gathering.
WHEN –Initial organisational meeting to be held before the end of May 2005.
Status of the Action Plan: None. Action requires follow-up.
 Provides knowledge exchange and networking opportunities for the small sawmilling
community.
 Promotes the establishment of relationships that will result in business synergies and
efficiencies (e.g. increased purchasing power).
 Provides a significant single voice when dealing with local, regional, and provincial
agencies.
Page 25
March 2005
4.10.
Upgrade the skill sets of small-scale wood processors
Specifically: That the small-sawmill sector initiate steps to access training to upgrade their skills
through identified potential partnerships.
Discussion:
This study found that many sawmillers could benefit from additional knowledge. A range of
training and business support organisations were investigated, and a number of potential partners
have been identified that can provide free support or training specifically tailored to sawmillers’
needs. Lumber grading, milling techniques, lumber certification, and business skills were all
identified as items requiring training. Some training can be accessed individually, as in the case
of the development of a business plan, but there are also those items that are much better served
in terms of costs by accessing them with a larger group.
Action plan: WHAT - That the sawmilling community, identify their training needs for
2005-06 and access the available training resources. This can be done by utilising the
potential partners identified in this study.
WHO –Individual sawmillers, and the sawmilling community through the Hazelton
Sawmillers Association, and the entity (to be determined) for the Kalum small sawmillers.
WHEN –Hazelton Sawmillers Association: prepare their training needs for 2005-06
within three meetings of the HSA. Kalum small sawmillers (if an organisation is formed):
within four meetings of the inaugural meeting.
Status of the Action Plan: None. Action requires follow-up.
 Improved skills and a higher level of business expertise related to: Marketing; Quality of
product; Safety; Manufacturing techniques; and Business organization (e.g. book
keeping, cost control).
Page 26
March 2005
5. Conclusion
The Provincial wood processing industry was founded by the enterprising small millers that
ope
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mills were too numerous to count. Over the years these numbers dwindled in favour of the large
forest companies that were given extensive cutting rights in exchange for large investments of
c
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concentration of cutting rights created local monopolies in the forest sector, and this made
communities completely reliant on the success or failure of these large corporations.
In the Northwest, the failure of Skeena Cellulose Inc. in 2001 made us all too aware of the
impact of a corporate failure on our economic well-being. The region experienced a mass exodus
of workers and their families. Municipalities, business, and families were put into financial
hardship. Property values plummeted, bankruptcies occurred, and life savings evaporated.
Community members and leaders understood how reliance on one entity for their social and
economic well being was a dangerous course to follow.
Through all this, the resilience of the local people has persisted. The workers and their families
that have remained in the area have struggled to rebuild and look for new ways to provide a
living. The rebirth of the small sawmilling industry, providing capital investment and real jobs, is
a testament to that resilience.
Thi
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.Provided with
the right tools and access to the fibre basket it has the capacity to have more sawmilling jobs that
could potentially occur on a two-shift basis at a large mill like the Terrace Lumber Company.
This potential has occurred through the entrepreneurial spirit of the local small sawmilling
community. There has been no fanfare, little government support, limited recognition of the
i
ndus
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.
This report is intended to change that.
This report has identified the major gaps and barriers that are preventing the success of this
sector. It has made recommendations and identified actions that will close some of these gaps
and remove some of these barriers.
The small-scale wood processing sector in this region has created jobs that provide high value
custom products to the domestic as well as the international marketplace. The diversity of this
sector results in long-term sustainable jobs that can be relied on over time, and that are not
subject to the failure of a single entity. The potential capacity of this small-sawmilling industry is
significant, creating jobs at almost double the provincial average for the sawmilling and valueadded sector: the equivalent of 82 new full-time jobs.
The politicians that enact legislation, the government workers that develop and implement
policy, and the businesses that could potentially partner with this sector: they all need to take
notice. This industry needs their support. It needs their recognition of this sector as a significant
economic contributor to our region if it is to fulfill its potential.
It needs their commitment to take action and make the changes that will remove the barriers to
success.
Page 27
March 2005
6. References
Bartlett, R. Chief Executive Officer –Kalum Ventures Ltd., Personal Communication, January
2005.
City of Terrace, 2004. Final report; Community Task Force on Forestry
COFI 2000. British Columbia Forest Industry Fact Book - 2000; Council of Forest Industries.
Haworth, K. 2003(1). Deciduous Inventory Review –Nass TSA –Northwestern British
Columbia; Kingfisher Forest Sciences.
Haworth, K. 2003(2). Deciduous Inventory Review for the Kispiox Forest District of
Northwestern British Columbia; Kingfisher Forest Sciences.
Marten, D. Manager, Northern Operations - A & A Trading (partner with the Kitselas Forest
Products), Personal Communication, January 2005.
Waszkiewicz, M. 2004. Hardwood Inventory 2004 - Nass TSA - Maps: 103P067, 103P076,
103P086; MarkUS Resource Consulting.
Waszkiewicz, M. 2005. Hardwood Inventory 2005 –Nass and Cranberry TSAs - Maps:
104A005, 103P046, 103P047, 103P057, 103P058, 103P059, 103P068, 103P095; MarkUS
Resource Consulting.
Page 28
March 2005
Appendix A: NWFUS Steering Committee
NorthWest Fibre Utilisation Study Steering Committee
Steering Committee Members
Name
Representing
Bill Sauer
NWLA
John Nester
NWLA - Alternate
Ken Houlden
Logging Contractors
Kevin Kilpatrick
MoF - Kalum
Rocky Chan
BC Timber Sales
Stew Christensen
Local government
Lou Tromp
MoF - Skeena Stikine (Kispiox)
Percy Gavronsky
Terrace Small Sawmillers
Paul Sims
Hazelton Small Sawmillers
Steering Committee Observers
Diane Wilson
Human Resources and Skill Development Canada (HRSDC)
Patrick McIntyre
HRSDC - Alternate
Sharon Robertson
Nadina Community Futures/ Hazelton Sawmillers Association
Project Coordinators
Rick Brouwer
Trevor Jobb
Page A1
March 2005
Appendix B: Small-Scale Wood Processing Sector Study –Project Plan
Phase I: set-up
Steering Committee
 Initiate Steering Committee: Select individuals/stakeholders to provide direction to the
project co-ordinator. Initially the steering committee will meet once a month. The meeting
will consist of a report from the project co-ordinator outlining the project deliverables /time
lines and progress made. In addition the co-ordinator will provide recommendations to the
committee and report on budgetary issues.
 The Steering Committee will review the monthly activity reports for the project co-ordinator
and the Hardwood Study. Based on those reports the Steering Committee will provide
feedback and input to the co-ordinators as to the project direction and objectives.
Project Plan
 Prepare and submit a project plan, including timelines, to the Steering Committee for review
and approval
Phase II: Information Gathering
Small Sawmillers Inventory
 Develop an Inventory of wood processing facilities in the Northwest Region
(Terrace/Nass/Cranberry/Kispiox). Company Name/ Contact Person/ Classification of
Facilities/ Products Produced.
 Develop a questionnaire to collect information on details of wood processing facilities. The
intent is to gather information on present and future capacity and to identify GAPs or factors
influencing capacity building. The Inventory will form the basis of identifying factors to be
considered in a GAP analysis. The questionnaire will be conducted onsite for active
operations whenever possible, and by telephone where required.
 De
t
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r
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nes
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s
/
Opportunities/ Threats (SWOT).
Market Research/Survey
 Collect information on Market Opportunities Local/Domestic and International. Explore
products from other parts of the province.
 Identify potential products that can be produced from wood. Identify raw fibre or primary
product required to manufacture. Identify any GAPs.
Employment /Skills/Training Inventory
 Utilise the questionnaire to gather data for summaries and analyses of total work force/total
product capacity/total fibre supply/ training requirements/skills inventory
Partnerships
 Develop a listing of interested parties such as First Nations/Municipalities/Regional
District/tenure holders/woodlot owners/Logging community
 Liaise with the interested parties to identify potential partnerships/relationships that will
benefit the wood processing community
 Identify links between secondary and primary manufacturing.
Page A2
March 2005
Phase III: Analysis
GAP Analysis
 Identify GAPs from questionnaire/interviews; market research; skills inventory. Specify
needs versus actual conditions. Determine what is required for success.
 If necessary, develop separate methodologies for conducting GAP analyses for different
identified needs.
 Conduct GAP analyses on specific identified needs
 Return to sawmillers or other information sources if necessary to complete analyses
 Summarize Findings
Phase IV: Reporting




Prepare final report summarising process, inventories, and results of surveys and GAP
analyses.
Provide recommendations based on findings.
Publish report for dissemination. Provide public access of report through a web site
Hold public forum to present report and the findings.
Page A3
March 2005
Appendix C: Small-scale Wood Processing Sector Study –Questionnaire
NorthWest Fibre Utilisation Study
Classification:
Inventory Data Sheet
(page 1 of 2)
Primary manufacturing, Re-manufacturing, Shake & Shingle, Other:
(circle one)
Company Name
Contact person:
Position:
Contact information:
tel
Importance of the millsite to the business (%)
fax
email
Millsite Location:
% the millsite is utilized within the business
(Address or General
Okay to circulate contact info?
TSA (circle one): KAL / KIS / CRN / NAS
description of location)
Nearest Community:
Products Produced
Equipment List
Type/ Model/ Year
Type/ Model/ Year
Manufacturing:
Support:
Est Present Capital investment
Production
Manufacturing:
Support:
Present Production
Capacity
Number of Employees
# Years est
Skills
Training
Training Requirements
Present Fibre Requirements
volume
species
grades
Present Fibre Sources
volume
Future Fibre Requirements
species
grades
Expansion Plans
What:
Value:
Primary Production
Product line
Value Added
Capacity
Est # jobs
Present Markets
Where
Direct/Brokers
Whls/Retail
How was contact made?
Potential Markets
Where
What
How much
volume
species
grades
Waste Management
Present uses/disposal
Associated Difficulties
Page A4
March 2005
NorthWest Fibre Utilisation Study
Strengths
Inventory Data Sheet
(page 2 of 2)
What are the three things that you are doing that make you successful?
1
2
3
Limitations
What is limiting your operation from growing to where you would like it to be?
If you could change 3 things about your operation, what would they be?
1
2
3
If you could change ANY 3 things, what would they be?
1
2
3
"YOU HAVE 10 POINTS - WHERE WOULD YOU PUT THEM TO REFLECT THE IMPORTANCE OF THESE FACTORS IN AFFECTING THE SUCCESS OF YOUR OPERATION?"
(You can put any amount of points against one thing, but the total points can only equal 10)
Fibre Price
Regulations
Fibre Availability
Waste Management
Fibre Quality
Access to Capital
Re-allocation of Fibre Supply
Size of Operation
Infrastructure(pwr/trans/Serv)
Network
Zoned Land
Skills/Training
Markets
Building Codes(ie ungraded wood)
Links between Primary/Secondary
Container Port
Barriers from large customers
Other
Lack of Partnerships with area Stakeholders
Other
Opportunities to Maintain/ Expand Capacity
What opportunities do you see in the future for your business?
General Comments
Page A5
March 2005
Appendix D: Terms of Reference for a Forum on Containerization
 City of Terrace Forestry Task Force may provide technical assistance to guide forum
development
 TEDA is to identify funding sources to facilitate the forums and will be responsible
for delivery.
 The forum is intended to promote regional economic development for public benefit
 The forum will provide for expert presentation of containerization as a business, its
opportunities and technical requirements relevance to the northwest. The forums will
provide local businesses with the necessary information to understand the strengths
and challenges towards potential uses of the container port
 The forums will be delivered to local levels of government and businesses in the
northwest.
 The forums are expected to take approximately 2 months to organize and host.
 The forums are projected to cost $7,000.00 to host. This would include presentations
by people knowledgeable in containerization, logistics, travel, and venue rentals.
Production of materials from the forum may be desired, and if so, would be an
additional cost.
 Forums will be held in Terrace and Hazelton
Page A6
March 2005
Appendix E: Additional details on potential partners: NWCC, HRSDC
NWCC - North West Community College: Details on courses offered
In addition to tailoring courses for specific needs, NWCC also has a curriculum of
established courses that are continually offered:
Computer Training
Introduction to Computers
 Introduction to new users
 Will provide benefits to people of limited computer experience
 Prepare the individual for more advanced courses
Excel
 Three levels offered
 Prepare the individual to create spread sheets for storing analyzing and
sharing data
 Useful for lumber tallies , production records, accounting and payroll records
Internet /E-mail
 Introduces the student to the essentials of the internet
 Will help you find the information you need on the world wide web
 Will be an asset to utilize the sawmiller resource compendium enclosed in
this report
Accounting
Intro to Accounting
 An introduction to the basics of accounting
 Gain an understanding of basic accounting concepts and terminology
 Will assist the student in taking more advanced accounting courses
Simply Accounting- Two levels
 Provides small businesses with an affordable accounting software
 Hands on class to manage your small business bookkeeping
Health & Safety
First Aid- Level 1 and 3, Transportation Endorsement
 WCB curriculum provides training for the employer to meet the job site first
aid training requirements
Further information on course content, cost, and schedules can be obtained from the
Continuing Education Calendar. This publication is updated bi-annually and is available
at no charge from either the Terrace or Hazelton campus of Northwest Community
College, or on the internet at www.nwcc.bc.ca.
HRSDC - Human Resources Development Services Canada: Details on employment services
offered
Human Resource Services Development Corporation offers three wage subsidy programs
that may be of interest to the small miller. Each program is designed to meet specific
Page A7
March 2005
goals and objectives and applications are assessed on that basis. The following gives a
brief synopsis on each program. For more information contact the local HRSDC office.
Or visit their website
Summer Career Placement Program
 For students looking for summer work
 Designed to provide job experience
 Wage subsidy to employers up to 50% of costs
Targeted Wage Subsidy Program
 This program is designed to assist persons having difficulty in finding
employment
 Employer should demonstrate that the person has a reasonable opportunity to be
retained
 No displacement of existing employees
 Employment may be on a seasonal basis depending on local and regional
priorities
 Up to 78 weeks of wage subsidy
 Person must have been on or is on EI payments within the last 36 months
Opportunities fund
 Assist unemployed persons that are self declared with a physical or mental
disability
 Program offered to a range of organizations and businesses.
 Funding may be provided to cover costs such as participants wages or related
employer costs
 Funding may also be provided to cover overhead costs related to planning,
organizing, and delivering and, evaluating approved activities. This includes costs
such as staff wages and employment related costs.
Page A8
March 2005
Appendix F: Steps to allow grade stamping of lumber produced by small-scale wood
processors
1. Small sawmiller community identifies a local retired certified lumber grader
interested in occasional work.
2. McDonald Inspection Agency supplies one day of training to grade stamp inspector.
3. Individual mills would apply to McDonald Inspection Agency for grade certification
stamps.
4. Lumber would be graded by a certified lumber grader.
5. The graded lumber would then be inspected by the local retired grader that has been
certified to inspect on behalf of McDonald Inspection Agency, and grade stamps
would be applied accordingly.
6. Co-ordinate with other mills to defer local travel costs.
Another option is to organize certification through agencies that certify the larger regional mills
(e.g. West Fraser Mills Ltd.). Timing inspections to co-incide with other mills will reduce travel
costs.
Page A9
March 2005
Appendix G: A proposed pilot for establishing smaller Timber Sale Licences within the
Kalum –Kispiox area
A pilot project is proposed for BC Timber Sales (BCTS) operations in the Kalum and Kispiox
Timber Supply Areas that are covered by a Forest Stewardship Plan. This pilot will deliver small
volume Timber Sale Licences to the market place (average size 2000 m3), addressing a gap that
has been identified in the delivery of smaller volume sales. This pilot will address both the policy
gap between BCTS and the BCMi
ni
s
t
r
yofFor
e
s
t
’
sFi
e
l
dSe
r
vi
c
e
s
,as well as BCTS work load
priorities:
Principles:
 Program will be managed through BC Timber Sales.
 As a minimum, the program is to be cost neutral (and should be revenue positive).
 Program can be delivered through a “
s
ma
l
ls
a
l
ea
g
e
nt
”
:t
hi
sc
a
nbecombination of
outside services and internal resources (For the pilot, it will be less disruptive to existing
BCTS structures to run the program primarily through outside services).
 BCTS personnel would minimally be required to review, advertise, and award small
Timber Sales Licences.
 BCTS personnel would be responsible for all silviculture activities. This would dovetail
with existing workload and obligations.
 Pilot limitations: maximum annual volume per TSA (e.g. 60,000 m3), maximum 5000 m3
per sale, two year term.
Pilot Program:
1. Small Sale Agent (SSA) would either accept applications for specific areas from
proponents, or propose specific areas independently.
2. SSA will confirm the viability of the potential small sale, particularly with respect to
forestry issues.
3. Proponent applications would require an up-front deposit, refundable to the proponent if
they are not successful in the bidding process. This would ensure that up front costs are
covered.
4. Field work necessary to prepare a small timber sale for advertisement (engineering,
cruising, site plan data gathering and preparation, block and application mapping, and
appraisal submission to MoF) would be done by the SSA, or by another contracted BCTS
layout consultant.
5. Small timber sales must meet BCTS Forest Stewardship Plan results and strategies
6. BCTS would review information and prepare sale for advertisement. This would entail
submission of the small timber sale to the BCTS Area Manager for approval as a Timber
Sale Licence (TSL), advertisement of the TSL, and award of the TSL.
7. Sales would be advertised within a maximum of 3 months from acceptance of the
application from the proponent.
8. The number of applications would dictate workload. BCTS would only need to pay for
work done by the SSA on actual viable applications. Payment would be covered
primarily from deposits.
Note: BCTS should be open to innovative methods to have this pilot delivered: For instance,
an outside services SSA could be contracted on a unit basis, e.g. $/m3 of wood submitted for
sales that meets the BCTS Forest Stewardship results and strategy criteria.
Page A10
March 2005
Appendix H: A method to establish flexible Timber Sale Licence terms within a fair and
equitable tender and award process.
This is one method to provide for flexibility in the term of BCTS Timber sales to allow small
operators and millers a way to access an equal portion of a sale per year, up to a four year time
period.
1. BCTS Timber Sale Licence tender forms be modified to require the bidder to select a
term of the licence.
2. The term selected by the bidder shall not exceed the regen delay minus one year.
3. The term selected by the bidder will not be used to evaluate bids. The existing award
criteria will be used as the basis for award of the Timber Sale
4. The Timber Sale License volume shall be equally divided over the term selected by the
successful bidder.
5. Penalties will be applied to over- or undercuts greater than 20% on an annual basis. These
penalties will follow the present rules governing extensions.
Page A11
March 2005
Appendix I: Preliminary outline of a strategic marketing plan for BC’
sPacific Northwest
Objectives:
 Develop short and long term strategies to market northwest wood products.
 Provide marketing assistance and technical support to the small and medium size mill
owners.
 Identify potential markets.
 Co-ordinate efforts between Federal, Provincial, Regional and Local governments to
promote Northwest BC wood products.
 Develop alternative markets.
Short Term Strategy: within 1 year
Establish a wood product association or identify some other type of central committee that
will act as the voice of Northwest marketing.
Establish a marketing committee
 Acquire support from local government and the MLA
 Secure funding
Members of committee on voluntary basis
Expense and contract work funded by agencies
 Identify the needs (goals) of the members
 Develop a long term marketing strategy and implementation plan
 Identify courses /workshops/ forums to enhance strengths and skills of the members
(e.g. Containerization, Fibre utilisation, Marketing tools)
 Invite trade experts (e.g. people from the S.U.C.C.E.S.S organization) to facilitate
forums
Long Term Strategy: 2 years +
 Establish strong links with the pacific rim ( Japan, China, Tai wan, South Korea,
Hong Kong, Singapore and India ) and the interior of North America (Provinces and t
States along the direct rail route from the container port)
 Assist in the preparation of business plans
 Provide information and technical support for the development of new markets/
product lines
 Co-ordinate efforts with other agencies so that resources are utilized effective and
efficiently
 Consider the value of marketing products for the region
 Work with other business groups to promote region
 Encourage business transactions between the members and local business groups
(With thanks to Rocky Chan for his work and input on this subject)
Page A12
March 2005
Appendix J: Contact list of local small-scale wood processors.
Note: This list includes only those who agreed that their contact information could be circulated.
Company Name
Contact
Name
(first)
Contact
Name (last)
Area
A J Forsyth
Jim
Forsyth
Kispiox
Allen Webber
Allen
Webber
Kalum
Anspayaxw
Max
Stevens
Kispiox
Battle Hill Development Corporation
Kevin
Orpen
Kispiox
Big Smoke Enterprises
Ron
Mould
Kalum
Blackfish Sawmills
Richard
Bohn
Kalum
Bonmar Falling
Tom
Bonmar
Kalum
C. Matheson & Sons
Charles
Matheson
Kispiox
Chernoble Contracting Ltd
Mark
Halvorson
Kispiox
Coastal Milling & Wood Products
Mark
Ljungh
Kalum
Copper Mountain Cedar Products Ltd
Jake
Penner
Kalum
Dan McCreery Contracting
Dan
McCreery
Kispiox
Dependable Lumber
Don
Messier
Kispiox
Address
Box 363
New Hazelton, BC
V0J 2J0
Box 1108
Terrace, BC
V8G 4V1
RR1,Comp 25,Site K
Hazelton, BC
V0J 1Y0
Box 159
Kitwanga, BC
V0J 2A0
RR2,Comp A-2,Site 46
Terrace, BC
V8G 3Z9
4811 Hamer Avenue
Terrace, BC
V8G 2E5
25 Coho Avenue
Kitimat, BC
V8C 2K6
Salmon River Road
Hazelton, BC
V0J 1Y0
3636 School Road (Box
188)
Kitwanga, BC
V0J 2A0
3306 Johnstone St.
Terrace, BC
V8G 4W7
RR4, Site 10, Comp 7
Terrace, BC
V8G 4V2
Box 752
New Hazelton, BC
V0J 2J0
Site L, Box 7
Hazelton, BC
V0J 1Y0
Telephone
Fax
Email
(250) 842-6315
(250) 842-6319
[email protected]
(250) 635-6910
(250) 638-0662
(250) 842-5248
(250) 842-5249
(250) 842-5604
[email protected]
(250) 849-5591
(250) 849-5353
[email protected]
(250) 635-7694
(250) 635-9488
[email protected]
(250) 638-8282
(250) 635-8200
[email protected]
(250) 632 5739
(250) 632 5620
[email protected]
(250) 842-2277
Auto: (250) 847-8489
(250) 842-2212
[email protected]
(250) 635-8200
[email protected]
(250) 842-0006
n/a
n/a
(250) 842-5660
(250) 842-5660
stusha@uniserve,com
(250) 849-5525
(250) 615-7808
(250) 635-3395
Page A13
March 2005
Company Name
Contact
Name
(first)
Contact
Name (last)
Area
Dharmah Wood Products
Morgan
Farkvam
Kalum
Don's Custom Cutting
Don
Elsworth
Kispiox
Ernst & Martha Muigg Milling
Ernst
Muigg
Kispiox
G. Morrison
Gerald /
Gody
Morrison /
Appenzeller
Stewart
Gilles Bruneo Cont. Ltd
Gilles
Bruneau
Kalum
H&D Manufacturing
Doug
Suttis
Kalum
Hogarth
Mark
Hogarth
Kalum
Jackulack
Jerry
Jackulack
Kalum
Kermode Pro-cut Wood Products
Larry /
Trevor
Smaha /
Jobb
Kalum
Lake Drive Lumber
Bruce /
Russell
Andrews /
Benzer
Kalum
Layard Creek Farm
Stephen
Erni
Kispiox
Lucky Six Farm & Forest Ltd
Brian
Larson
Kispiox
Monsen
Lyle
Monsen
Kalum
Morning Glory
Dennis
Smith
Kispiox
Nash Stables
Dave
Nash
Kispiox
Address
RR3, Box D-9, Site 10
Terrace, BC
V8G 4R6
Box 114
Kitwanga, BC
V0J 2A0
RR1, Comp 9, Site L
Hazelton, BC
V0J 1Y0
PO Box 460
Stewart, BC
V0T 1W0
Terrace, BC
V8G 3Z9
3865 Skinner St.
Terrace, BC
V8G 3M2
RR3, Site 1, Comp 6
Terrace, BC
V8G 4R6
Terrace, BC
V8G 3Z9
3915 Thomas Street
Terrace, BC
V8G 5N3
4573 N. Sparks Street
Terrace, BC
V8G 2W4
Box 213
New Hazelton, BC
V0J 2J0
Box 217
Hazelton, BC
V0J 1Y0
Terrace, BC
V8G 4R6
Box 311
Kitwanga, BC
V0J 2A0
Site L, Comp 29, RR1
Hazelton, BC
V0J 1Y0
Telephone
Fax
(250) 635-8121
Email
[email protected]
(250) 849-5033
(250) 849-5033
n/a
(250) 842-0030
(250) 842-0030
n/a
(250) 636-2565
(250) 636-2802
(250) 636-2135
[email protected]
(250) 635-4202
(250) 635-4206
(250) 638-0092
(250) 638-0094
[email protected]
(250) 638-8388
[email protected]
(250) 615 3559
[email protected]
(250) 615-9779
(250) 638-0227
[email protected]
(250) 615-8084
(250) 635-9194
[email protected]
(250) 842-6544
(250) 842-6540
[email protected]
(250) 842-5498
(250) 842-5521
[email protected]
(250) 638-0758
(250) 638-0758
(250) 842-5022
(250) 849-5636
[email protected]
(250) 842-6479
(250) 842-6455
(250) 842-6453
[email protected]
Page A14
March 2005
Company Name
Contact
Name
(first)
Contact
Name (last)
Area
Northwest Coast Cedar
Tim
Stein
Kalum
PMG Sawmilling
Percy
Gavronsky
Kalum
Poplar Park Farm
Dave/
Kathy
Larson
Kispiox
R&F Senden Contracting
Rollie
Senden
Kispiox
Sawyer Smith Sawmilling
Bob & Alice
Smith
Kispiox
Speed Span
Jeremy
Hutter
Kalum
Suskwa River Sawmill
Jack
Wilson
Kispiox
SWIS Wood Products
Paul
Sims
Kispiox
Terrace Pre-cut Wood Products
Mohinder
Takhar
Kalum
Terrden Milling
Julius
Mandur
Kalum
Tom Goyert
Tom
Goyert
Kalum
Tree-mendous Wood Products
Bruce
Forsyth
Kispiox
Urs Wernli Sawmilliing
Urs
Wernli
Kispiox
West Sawmills
David
West
Kispiox
Address
Kalum Lake Road
Terrace, BC
V8G 4R6
4106 Anderson Street
Terrace, BC
V8G 2T2
Box 23, Site M, RR1
Hazelton, BC
V0J 1Y0
RR1, Site C, Comp 7
Hazelton, BC
V0J 1Y0
RR1, Site M, Comp 25
Hazelton, BC
V0J 1Y0
2257 Queensway Dr.
Terrace, BC
V8G 3W7
Box 85
New Hazelton, BC
V0J 2J0
PO Box 185
New Hazelton, BC
V0J 2J0
4001 Temple Street
Terrace, BC
V8G 5N6
Terrace, BC
V8G 4R6
PO Box 65
Kitimat, BC
V8C 2G6
Box 585
New Hazelton, BC
V0J 2J0
Box 130
South Hazelton, BC
V0J 2R0
Telephone
Fax
Email
(250) 635-0663
(250) 638-1439
(250) 638-7811
[email protected]
(250) 842-6406
(250) 842 6412
[email protected]
(250) 842-5338
(250) 842-5338
[email protected]
(250) 638-0930
(250) 638-0930
(250) 842-6119
(250) 842-6102
n/a
(250) 842-6929
(250) 842-6939
[email protected]
(250) 635-3409
(250) 635-3402
[email protected]
(250) 635 4167
(250) 635 4167
[email protected]
(250) 632 6877
(250) 632-6827
[email protected]
(250) 842-0333
(250) 842-0333
[email protected]
(250) 842-5269
(250) 842-5269
n/a
(250) 842-6969
(250) 842-6142
[email protected]
(250) 842-6378
Page A15
March 2005
Appendix K: Internet resource research results.
Ninety-two websites were evaluated as part of the Small-Scale Wood Processing Sector Study.
The research and evaluation work was carried out by K. Ljungh, a local small sawmiller.
The summary pages for these 92 websites are not included here. Instead, they are provided in a
separate attachment.
The following information is provided to aid those who feel weak with respect to operating a
computer and searching the internet:
Internet Searching
The Internet holds a vast collection of materials and resources on a wide variety of topics. You can access these
resources easily once you have learned a few ways for effectively locating information.
An easy way to search the Internet is:
1. Open your web-browser (Internet explorer or Netscape) and type in the address bar (type inside the long empty
box along the top of the page it opens up to) one of the major search engines addresses listed below (these are
based on content and can locate Internet resources by examining each page and organizing the words it finds).
Search engines I would use are below and enter them exactly as indicated below.
www.google.ca
www.msn.com
www.altavista.ca
www.yahoo.ca
www.excite.com
www.mamma.com
www.hotbot.com
www.webcrawler.com
www.lycos.com
www.dogpile.com
www.infoseek.com
How to search the Internet:
EXAMPLE #1
Alta Vista has always been a very popular search engine because it works quickly, updates regularly and scans
documents for every word. This example below is for use with altavista and most other sites.
First, connect (see above) to the Alta Vista web site www.altavista.com Then use the empty box on that page that
comes up to enter your instructions for your search as they are listed below:
1.Us
et
he“+”andt
he“-”keys a
sapr
e
f
i
xf
ory
ou
rs
e
a
r
c
h
.Se
a
r
c
hwor
dswi
t
ht
h
e“
+”t
oi
n
di
c
a
t
et
h
a
tt
h
e
yMUST
oc
c
u
ri
napa
g
et
obec
on
s
i
de
r
e
dah
i
t(
t
oc
omeu
pony
ou
rs
e
a
r
c
h
)
,a
n
du
s
e“
-”t
oe
x
c
l
u
depa
g
e
s
.
For example:+cedar +lumber will find only pages that contain BOTH wor
ds
.I
fy
ouomi
tt
h
e“
+”y
ouwi
l
lg
e
ts
ome
pages about cedar, some about lumber, and any pages containing both words. In this example, the difference is
about 450,000 vs 10,000 matches. By adding an exclusion term as shown below, the number of hits drops to about
10,000. You can just check out the 1st 3 pages and usually find what you are looking for.
+cedar +lumber -sawmill
Page A16
March 2005
2. Use quotes for phrases
Too many matches? If you really want to find cedar lumber (and not just pages with those words included in them
somewhere in the document) then put the request inside quotation marks.
+”c
e
darl
umbe
r
”-sawmill yields only about 70 hits. This is a manageable number to look through.
3.Us
et
he“t
i
t
l
e
”ke
ywor
d
I
fy
ou’
r
elooking for pages on a specific topic, instead of pages that just contain certain words, try limiting your
search like so: t
i
t
l
e
:
”mi
l
l
e
d_c
e
dar
”This often helps to weed out unwanted hits.
4.Us
et
he“i
mage
”ke
ywor
d
Looking for a special photo or icon? Try something like this: image:cedar_lumber.jpg
5.Us
et
he“l
i
nk”and“ur
l
”ke
ywor
d
Th
e“
link”k
e
ywor
df
i
n
dspa
ge
st
h
a
tc
ont
a
i
nalink t
oa
n
ot
he
rpa
g
e
,a
n
dt
h
e“
url”k
e
ywor
df
i
n
dspa
g
e
swi
t
hs
pe
c
i
f
i
c
characters in the address. Here are some examples: link:forms.gov.bc.ca - finds pages linked to the official forms
site for the government url:lumber - f
i
n
dspa
g
e
swi
t
h“
lumber”i
nt
h
ea
ddr
e
s
s
And although this example utilizes the Alta Vista search engine,
taking the time to explore how to effectively use other search engines is well
worth your time. Just learn the techniques of any of the search engines to become
efficient in the one you use most often.
EXAMPLE #2
To use with most of the search engines you can use the same procedure set out in EXAMPLE#1 or you can also
use a simple comma between your search words like the example below:
If I was searching for a Cedar Sawmill in BC I would enter the following information in the search engines main
box:
cedar, sawmill, B.C. - it brings up about 5000 sites with all the words cedar, sawmill or B.C. just mentioned in
the title or web page. BUT generally, you can find what you are looking for in the first 3 pages. Just look at the
web-page addresses in the bar under each description and it usually you can tell if it is related to the what you are
searching for.
This way will work like Example #1 but you have to sometimes read more than you intended to, though, on the
other hand, you can find other sites that may be of interest to you in the cedar or sawmill industry that may be of
interest to you.
Nowgoahe
adandt
r
ys
e
ar
c
hi
ng……
WHEN YOU FIND A SITE YOU WANT TO KEEP TO VIEW AGAIN:
When you do find a site that you would like to go back to another time, then add it to your favorites (internet
explorer) or bookmark (Netscape) by clicking on that particular tab above the address bar of your web browser.
Page A17
March 2005
If you want to search the on-line phone book and yellow pages for Canada then use the address bar to type in
www.411.ca
Searching on www.411.ca
411.ca is the web page that hosts the up to date online phone book listings including the yellow pages.
You would search this site the same way you would look up the business you are looking for. That would be for
example: if I was looking for a trucking company in BC to ship my lumber to Vancouver
I would use www.411.ca as my webpage to start searching at and do the following:
1.
Click on the - Find a Business button, it will open to another page
2.
Click on the - Category (browse) button - it will open to another page
3.
Follow the page down to the bottom and click on Alphabetical Top Categories it will open to another page
4.
Click on the letter T for transport as you would look up in the yellow pages- it will open to another page
5.
Scroll down the page and click on Trucking-Hauling -it will open to a new page that has a box titled Simple
Search
6.
Enter the City name in the box Terrace then select the province from the drop down menu inside the box, then
click on FIND IT
It should come up with all the Trucking-Hauling companies that are in the Terrace BC area and if you like you can
save the page as a favorite or bookmark it.
Page A18

The Small Scale Wood Processing Sector in the Kalum

Transcription

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