What About the Future of Hardwoods?

Chris Rasor Reforestation Coordinator Pacific Cascade RegionWashington State Department of Natural Resources chris.rasor@dnr.wa.gov

Objectives

1. Share hardwood supply and demand trends for the Pacific Northwest, focusing on Western WA

2. Discuss factors contributing to current and future market success of red alder

3. Identify necessary steps to secure a sustainable future for the hardwood industry

Hardwood Industry Prerequisites

SustainabilitySustainability

Supply Demand

Infrastructure

The “global” supply of red alder!

Supply & Demand Factors:

Ecological

Economic

Social

Red Alder Inventory Volumeinventory dates ~1995 to 2000

0500

1,0001,5002,0002,5003,0003,5004,000

N. Cali

forn

ia

Orego

n

Was

hingt

on

British

Colu

mbia

Alaska

Mill

ion

cu

.ft.

0

20

40

60

80

100

Mill

ion

cu

.me

ters

Source: Glen Ahrens summary of USFS Forest Inventory and Analysis, BC Ministry of Forests Data

Timber Harvest 2006

0.00

5.00

10.00

15.00

20.00

25.00

30.00

W OR W WA BCCoast

BC IntN

BC IntS

Mill

ion

Cub

ic M

eter

s

Total

Hardwood

Source: Glenn Ahrens, Oregon State University Extension

Factors Influencing Supply & Demand

Ecological/Social• Native species• Nitrogen fixer• Restores soil stability,

fertility after disturbances• Immune to laminated root

rot and Swiss Needle Cast• Sustains forest health• Contributes to wildlife

habitat: bird foraging, understory ungulate forage

• Recognized as providing diversity

Economic• > 200% Net Present Value

vs. Douglas-fir• Return on Investment (ROI)

greatest of native species• Produces sawlogs and

veneer on a short rotation (25-35 years)

• Produces high value end products: furniture, moldings, trim, doors

Source: Mason, L. Rural Technology Initiative Factsheet #22, 2003.

Source: Mason, L. Rural Technology Initiative Factsheet #22, 2003.

Wood Properties favoring long-term demand for red alder

• Excellent working properties versus its hardwood competitors lowers cost of production

• As good or better than American cherry, hard maple, soft maple in the following categories:– Finishing, Gluing, Screwing, Nailing, Machining

• Preferred for pallet construction in grocery industry• High quality source for paper chips • Can mimic higher cost hardwoods like cherry and

walnut at a lower price point• No juvenile core or distinct differences between

heartwood and sapwood

Source: Mason, C. in Deal, R.L. and Harrinton, C.A., 2006. Red alder- a state of knowledge. General Technical Report PNW-GTR-669.

Area of Hardwood Forest TypesW. Oregon & W. Washington

0

1000

2000

3000

4000

5000

1981 1991 2001

Year

Th

ou

san

d A

cre

s

Industrial PrivateNon-industrial PrivateState/Other public

Source: Glenn Ahrens summary of USFS Forest Inventory and Analysis, 2003

Conifer boom busted red alder!

Harvestable Hardwood Landbase

Source: Hardwood Resource Assessment for Western Washington, Washington Hardwood Commission (WHC) June 2002.

Excludes: >1,968 ft. elevation, RMZs, federal lands

Hardwood Resource Assessment for Western Washington (2001)

• Total available hardwood = 14.3 billion bf

• Total “harvestable” hardwood = 8.6 billion bf (62%)

• Deductions (38%):– 19% in riparian zones– 19% on federal lands

*Non- red alder included in "Other Hwd" pre -2004

Source: Washington Hardwood Commission Logs Processed Summary

0

1000

2000

3000

MBF

Green MBF

Dry MBF

Total MBF

Pacific Albus LumberVolume Shipped

Source: Lee Jimmerson, Collins Company 2010

http://www.brighterenergy.org/11327/news/bioenergy/work-begins-on-73m-cellulosic-biofuel-plant-in-oregon/

Supply: Future Threats

Land Conversion• “Washington’s working forests are declining at

the rate of 30,000 acres (46 square miles) per year” (RTI website)

• Conversion reduces hardwood production base• 5 million acres of small private forestland in

Washington owned by 90,000 owners!Small Private Technical Support:• Washington stewardship forestry program

currently limited to a single field position• Improved access to decision criteria is critical

Source: Rural Technology Initiative (RTI), University of WA; Washington Farm and Forest Association website.

Changes in Hardwood Volume10-year change 1990's

0

500

1000

1500

2000

2500

3000

3500

WA Growth WA Loss OR Growth OR Loss

Mill

ion

cu

.ft.

Land changeRemovalMortalityGrowth

Source: Glenn Ahrens summary of USFS Forest Inventory and Analysis

40%

30%

Future WA DNR Supply:

Red alder GIS modeled site suitability on WA DNR trustlands Green = potential for plantation red alder

Current WA DNR Hardwood Harvest

FY 2009 Timber Sale Volume FY 2009 Red alder log grades

WA DNR- Red alder trends• Supply dominated by

natural red alder • 2030 red alder plantation

harvests begin to be harvested in SW WA.

• Low supply of premium grades (<25% 12”+) from natural stands

• Thinning red alder during slashing vs. weeding

Outlook for Hardwoods +/-

– Private owners need access to management tools+ORGANON red alder model to be available in 2011– Continued emphasis on conifer management– Natural hwd inventories are approximate, dated– Conversion is shrinking hardwood land base+Red alder stumpage prices maintaining incentive

for growing future supply+The rest of the world cannot yet grow red alder!

Steps to Secure a Sustainable Future• Maintain “social license” to practice forestry• Maintain accurate hardwood inventories• Prevent forest conversion• Build knowledge, skills and abilities to

manage hardwoods by sharing information!• Choose hardwoods on suitable sites

Resources Cited• Washington Hardwood Commission, 2002. Hardwood Resource Assessment for

Western Washington.• Haynes 2003, An Analysis of the Timber Situation in the United States: 1952-2050

USDA PNW-GTR-560– http://www.fs.fed.us/pnw/pubs/gtr560/

• RP-478 94-018 (1995). Hardwood supply in the Pacific Northwest: a policy perspective by R.L. Raettig, K.P. Connaughton, and G.R. Ahrens .

• Mason, C. in Deal, R.L. and Harrinton, C.A., 2006. Red alder- a state of knowledge. General Technical Report PNW-GTR-669.

• Washington State Forest Facts, Washington Farm and Forest Association website, 2010.

• Washington Department of Natural Resources Planning and Tracking Database, 2011.

• Washington Department of Natural Resources Delivered Hardwood Prices, February, 2008 to June, 2010.

• Mason, L. 2003. Rural Technology Initiative, Factsheet #22. After decades of Douglas-fir plantations, is it time for forest landowners to consider planting alder and cedar?