hemlockhemlock ralph winter stand management officer january 30, 2008 the ugly stepsister or the new...
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HemlockHemlockHemlockHemlock
Ralph WinterStand Management Officer
January 30, 2008
Ralph WinterStand Management Officer
January 30, 2008
the ugly the ugly stepsister or stepsister or the ugly the ugly stepsister or stepsister or the newthe new
Cinderella speciesCinderella speciesthe newthe new
Cinderella speciesCinderella species
ObjectivesObjectives
To present some MFR perspectives regarding the To present some MFR perspectives regarding the management of Hemlock (Hw)management of Hemlock (Hw) Current and future markets and product preferencesCurrent and future markets and product preferences Volume, value and quality of second growthVolume, value and quality of second growth Tree species diversityTree species diversity Timber supply considerationsTimber supply considerations Forest HealthForest Health Stand establishment and tendingStand establishment and tending
IntroductionIntroduction
We need to acknowledge the name of We need to acknowledge the name of the BGC Zone we do most of our the BGC Zone we do most of our management in is "The coastal Western management in is "The coastal Western Hemlock Zone" Hemlock Zone"
The standing timber inventory in the The standing timber inventory in the THLB is 60% Hw THLB is 60% Hw
63% of the current FSPs standards have 63% of the current FSPs standards have Hw as a preferred or acceptable speciesHw as a preferred or acceptable species
Hemlock has, therefore, a substantial Hemlock has, therefore, a substantial impact on the financial results of the impact on the financial results of the B.C. Coast both now and into the futureB.C. Coast both now and into the future
Current Old Growth HemlockCurrent Old Growth Hemlock
A critical constraint for old growth hemlock-balsam timber is variability in the wood quality, rot, compression wood, moisture content and other properties.
This variability makes harvesting hemlock-balsam forests somewhat of a lottery:
Current MarketsCurrent Markets
On a global basis, the B.C. Coast Douglas fir and hemlock-On a global basis, the B.C. Coast Douglas fir and hemlock-balsam costs today are at the higher end of North America log balsam costs today are at the higher end of North America log costs costs
Higher valued western red cedar and Douglas fir are normally Higher valued western red cedar and Douglas fir are normally able to offset these higher costs, able to offset these higher costs,
Hemlock-balsam is more uneconomic due to the inherent Hemlock-balsam is more uneconomic due to the inherent wood quality constraints and lower sales returns.wood quality constraints and lower sales returns.
There are profitable processing operations on the Coast, but There are profitable processing operations on the Coast, but most of these are not processing hemlock balsam timbermost of these are not processing hemlock balsam timber
The most profitable segments are in western red cedar, The most profitable segments are in western red cedar, Douglas fir and other unique speciesDouglas fir and other unique species
Coastal Action PlanCoastal Action Plan
The B.C. Coast is not really limited by any market or product The B.C. Coast is not really limited by any market or product restrictions or limitationsrestrictions or limitations
mainly limited by higher costs relative to competing products or mainly limited by higher costs relative to competing products or suppliers. suppliers.
Cost reduction in delivered log costs and processing are key Cost reduction in delivered log costs and processing are key themes in any coastal industry strategy. themes in any coastal industry strategy.
Silviculturists have a key role in establishing and managing Hw Silviculturists have a key role in establishing and managing Hw stands that will be stands that will be low cost to harvest low cost to harvest valuable to millvaluable to mill
future markets and product preferences for Hemlock
future markets and product preferences for Hemlock
The Coast's future is quite bright due to the The Coast's future is quite bright due to the volume of 2nd growth Fdc and Hwvolume of 2nd growth Fdc and Hw
The 2nd growth product does not have the The 2nd growth product does not have the decay issue that old growth has decay issue that old growth has
Operations in the Pacific Northwest have Operations in the Pacific Northwest have had a lot of success with drying lumber from had a lot of success with drying lumber from the smaller 2nd growth trees. the smaller 2nd growth trees.
Hw when dried is stable and takes paint and Hw when dried is stable and takes paint and stain very well. stain very well.
There has been a growing market for 2nd There has been a growing market for 2nd growth Hw in Asia. growth Hw in Asia.
The FutureThe Future
Low-cost, high-volume commodity hemlock-balsam sawmills Low-cost, high-volume commodity hemlock-balsam sawmills depend on achieving consistently low manufacturing costs per depend on achieving consistently low manufacturing costs per unit of lumber produced. unit of lumber produced.
These mills utilize state-of-the-art computer scanning and These mills utilize state-of-the-art computer scanning and optimization technology to enable high-speed log processingoptimization technology to enable high-speed log processing
In-bound log uniformity and quality are critical to capture all of In-bound log uniformity and quality are critical to capture all of the benefits that computer optimization offers. the benefits that computer optimization offers.
Second-growth and plantation forests produce logs that are Second-growth and plantation forests produce logs that are uniform in size and age with limited defectsuniform in size and age with limited defects
Silviculturists need to implement species, regeneration and stand Silviculturists need to implement species, regeneration and stand management practices that enable low harvesting costs while management practices that enable low harvesting costs while producing high value standsproducing high value stands
Tree species diversity and current deployment on the entire coast
Tree species diversity and current deployment on the entire coast
To ensure sustainable To ensure sustainable and valuable future and valuable future harvests, Foresters harvests, Foresters need to monitor and need to monitor and strategically manage strategically manage the the harvesting, harvesting,
regeneration, regeneration, and tending and tending
practices on all practices on all speciesspecies
Current Status of Harvested Area (2007)
Period
FG
NF
G
RE
S
FG
NF
G
RE
S
FG
NF
G
RE
S
Per
cent
Are
a
0
20
40
60
80
100
Western Red CedarOther SpeciesForest Cover PendingNSRNPFree GrowingFG
Not Free GrowingNFG
Residual Mature TreesRES
Volume Harvested, by Species Percent
Period
1991-1995 1996-2000 2001-2005
Per
cent
0
20
40
60
80
100
Area Harvested, by Species Percent
Period
1991-1995 1996-2000 2001-2005
Per
cent
0
20
40
60
80
100
Seedlings Planted, by Species Percent
Period
1991-1995 1996-2000 2001-2005
Per
cent
0
20
40
60
80
100
Area Planted, by Species Percent
Period
1991-1995 1996-2000 2001-2005
Per
cent
0
20
40
60
80
100
1991-1995 1996-2000 2001-2005
Managing the stockportfolio over time
Managing the stockportfolio over time
Foresters need to actively Foresters need to actively manage the proportion of the manage the proportion of the stock portfolio they are stock portfolio they are liquidating over time…liquidating over time…
Is it appropriate toIs it appropriate to remove 20% of the total
cedar inventory while Only removing 6% of the
other species inventory In a period of 15 years?
Area Harvested
Species
Western Red Cedar Other Species
Are
a (h
a)
0
20000
40000
60000
80000
100000
Timber Harvesting Land Base - 1994Harvested (1991-1995)Harvested (1996-2000)Harvested (2001-2005)
cedar Other species
Harvesting information for the North Coast TSA
Harvesting information for the North Coast TSA
In a number of TSAs and In a number of TSAs and TFLs we seen some key TFLs we seen some key changes:changes: harvesting heavily harvesting heavily
focussed on high value focussed on high value species – I.e. red and species – I.e. red and yellow cedar yellow cedar
leaving hemlock and leaving hemlock and balsam behindbalsam behind
Significant increase in Significant increase in partial cuttingpartial cutting
Percent Area Harvested, by Species
Period
1991-1995 1996-2000 2001-2005
Per
cent
0
20
40
60
80
100
Western Red CedarOther Species
Planting information for the North Coast TSA
Planting information for the North Coast TSA
Compared to the Compared to the significant shifts in the significant shifts in the types of species being types of species being harvested, there has not harvested, there has not been commensurate been commensurate increases in red cedar increases in red cedar plantingplanting
Area Planted, by Percent Species
Period
1991-1995 1996-2000 2001-2005
Per
cent
0
20
40
60
80
100
Western Red CedarOther Species
Harvesting and free growinginformation for the North Coast TSA
Harvesting and free growinginformation for the North Coast TSA
In recent years some In recent years some obligation holders have obligation holders have focussed on meeting free focussed on meeting free growing obligations by growing obligations by using old growth or using old growth or residual Hemlock balsam residual Hemlock balsam leave treesleave trees
Free growing obligations Free growing obligations are declared within 1-2 are declared within 1-2 years instead of 15 yearsyears instead of 15 years
Status of Harvested Area
Period
FG
NF
GP
H
FG
NF
GP
H
FG
NF
GP
H
Are
a (h
a)
0
1000
2000
3000
4000
5000
Western Red CedarOther SpeciesNSRNPFree GrowingFGNot Free GrowingNFGPartial HarvestPH
1991-1995 1996-2000 2001-2005
January 16 Forest Practices Board Report on high retention harvestingJanuary 16 Forest Practices Board Report on high retention harvesting
On the blocks reviewed there was a species profile shift from high cedar composition to lower value Hw-dominated stands.
Depending upon the remaining value, there may be limited options for subsequent harvest entries.
None of the site plans projected a reduction in volume production or a species shift as a result of the partial harvest approach, when there clearly would be.
There was usually a “disconnect” between what site plans prescribed and what was implemented on the ground
Forest PracticesBoard Report
Forest PracticesBoard Report
Blocks were often not planted. Blocks were often not planted. Instead there was reliance on Instead there was reliance on release of understory, or natural release of understory, or natural regeneration, which will almost regeneration, which will almost certainly encourage hemlock certainly encourage hemlock and true fir growth, rather than and true fir growth, rather than regeneration of higher-value regeneration of higher-value cedar.cedar.
mistletoe is not always being mistletoe is not always being managed appropriately, leaving managed appropriately, leaving abundant infected trees in abundant infected trees in residual stands, which will residual stands, which will negatively impact strategies for negatively impact strategies for natural regeneration of natural regeneration of vulnerable hemlock. vulnerable hemlock.
Managing the Stock portfolio more strategically
Managing the Stock portfolio more strategically
Your personal RRSP or investment counsellors do active Your personal RRSP or investment counsellors do active management of your stock portfolio to ensure the right balance management of your stock portfolio to ensure the right balance of stocksof stocks
As stock portfolio managers, foresters have a responsibility to As stock portfolio managers, foresters have a responsibility to the public to properly managing the growing stock on coastal the public to properly managing the growing stock on coastal forestsforests
I would think that the public isn’t expecting forester’s to manage I would think that the public isn’t expecting forester’s to manage junk bonds and sub-prime mortgage fundsjunk bonds and sub-prime mortgage funds
I would think that the public would expect foresters to maintain I would think that the public would expect foresters to maintain options, minimize risk and produce valuable growing stocksoptions, minimize risk and produce valuable growing stocks
Managing TreeSpecies Diversity
Managing TreeSpecies Diversity
We have block level control We have block level control over tree species butover tree species but
we are not managing the we are not managing the aggregate forest level species aggregate forest level species compositionscompositions
To effectively manage for To effectively manage for volume, value, health and volume, value, health and climate change professional climate change professional foresters should be managing foresters should be managing species composition at the species composition at the forest level alsoforest level also
Timber supply considerations with regard to Hw deployment Timber supply considerations with regard to Hw deployment
The choice of what species The choice of what species should be deployed has should be deployed has profound value and volume profound value and volume implications for the public. implications for the public.
As stewards of the ¼ trillion As stewards of the ¼ trillion dollar public asset, dollar public asset, professional foresters must professional foresters must have a clear understanding of have a clear understanding of the impacts of the choices the impacts of the choices they are makingthey are making
What happens when 1/2 the area SI 27+ that would naturally regenerate to hemlock is converted to Douglas-fir?
Choice of species affects the volume and value of the future crop!
Harvest Level (000’s m3/yr)
Years from now
500500
100100
400400
200200
600600
300300
800800
700700
00100100 1501505050 200200 25025000
Base Case Douglas-fir Harvest
Stand conversion Douglas-fir Harvest
Base Case Harvest Level
New Harvest Level
TFL 39 Blk 1 Type II Silviculture Analysis
Long term harvest level increases 8%!
About 120,000 m3/yr more Douglas-fir harvest in long term.
Douglas-fir is about 40% more valuable than hemlock!
Partial cutting issuesand forest health
Partial cutting issuesand forest health
With the coast action plan we With the coast action plan we will see trends of intensifying will see trends of intensifying forest harvesting and forest harvesting and silviculture on a diminishing silviculture on a diminishing forest land-baseforest land-base
Key issue will be to ensure Key issue will be to ensure we don't end up with lots of we don't end up with lots of mistletoe infested standsmistletoe infested stands
Mistletoe is a serious concern Mistletoe is a serious concern in some variable retention in some variable retention areas.areas.
On the coast the significant change in partial cutting has the potential to result in different types of
retention and regeneration and growth
On the coast the significant change in partial cutting has the potential to result in different types of
retention and regeneration and growth
0%
20%
40%
60%
80%
100%
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
Year
Proportion of harvest area
CLEAR
RETEN
CCRES
IMCUT
PATCT
SEEDT
Partial cutting issuesand forest health
Partial cutting issuesand forest health
Previously, even-aged silvicultural regimes almost completely eradicated mistletoe-infested trees.
Recent increases in Variable Retention has often left mistletoe-infested trees
mistletoe infestations can reduce tree volume growth by 15 to 40 percent
Silviculturists need to actively manage forest health
Stocking StandardsStocking Standards
Just because Hw grows on a site does not mean we should manage for it on Just because Hw grows on a site does not mean we should manage for it on that site. that site.
Stocking standards should reflect the species we are focussing our Stocking standards should reflect the species we are focussing our management efforts on - should not be based on ad hoc approach of "it occurs management efforts on - should not be based on ad hoc approach of "it occurs it must be good". it must be good".
The selection of a tree species must include consideration for growth rates, The selection of a tree species must include consideration for growth rates, forest health and commercial value. forest health and commercial value.
Hemlock may be commercial on the island but at the back-end of a remote Hemlock may be commercial on the island but at the back-end of a remote coastal drainage it may not be economically feasible to harvest that stand in coastal drainage it may not be economically feasible to harvest that stand in the future. the future.
The choice of a species as a regeneration option should not foreclose on The choice of a species as a regeneration option should not foreclose on future harvest options. future harvest options.
Doing good basic silvicultureDoing good basic silviculture
Prompt stocking of denuded sites needs to be a key coast strategy
Improved Hw stock can result in 20-30% increases in volumes and carbon sequestration
natural regeneration with Hw can be a viable strategy but there are risks to loss of stand productivity if there are regen delays and stocking is patchy
Hemlock stand valueHemlock stand value
A Queen Charlotte Island study indicates lots of biologically A Queen Charlotte Island study indicates lots of biologically mature Hemlock on the island, but its not economically operable.mature Hemlock on the island, but its not economically operable.
““Although the physical dimension of the second growth resource Although the physical dimension of the second growth resource is impressive, its economic operability is questionable” is impressive, its economic operability is questionable”
There is considerable value in having stands achieve a There is considerable value in having stands achieve a merchantable size at an earlier date. merchantable size at an earlier date.
Economic operabilityand harvest availabilityEconomic operability
and harvest availability
Harvest-origin hemlock-Harvest-origin hemlock-leading stands have also leading stands have also reached cutting age (40-60 reached cutting age (40-60 years) but are currently not years) but are currently not economically operable, economically operable, unless other, higher-value unless other, higher-value stands can carry the stands can carry the operating costsoperating costs
Economic operability and Economic operability and early harvest availability early harvest availability will be a key issue as we will be a key issue as we move forward in this period move forward in this period of constrained landbase and of constrained landbase and harvest levels on the coast.harvest levels on the coast.
Source: Potential financial returns from alternative silvicultural prescriptions in B.C. second-growth (Howard & Temesgen, 1997)
Data suggests the marginal log piece size on the coast is roughly 25-28 cm depending on equipment
Impact of Piece size on: Harvesting costs and product value
Economic operabilityand harvest availabilityEconomic operability
and harvest availability
We should look at managing stands that will produce logs that are of appropriate dimension for small to medium sized log mills and market-demanded products.
Need to consider designing stands to harvested with Mechanized systems as they are: cost effective capable of producing a high
quality log
Stand tendingStand tending
To produce economically To produce economically valuable Hw stands which are valuable Hw stands which are low cost to harvest, some low cost to harvest, some tending will be requiredtending will be required
Over-dense stands have more Over-dense stands have more stems at harvesting age stems at harvesting age
These stems need to be These stems need to be handled if harvesting occurs.handled if harvesting occurs.
The added cost exceeds the The added cost exceeds the value. value.
Stand tendingStand tending
Foresters should consider Foresters should consider early stocking or density early stocking or density control to concentrate growth control to concentrate growth on crop treeson crop trees
Key issue will be to have Key issue will be to have wood available on time, wood available on time, provide options for early provide options for early harvest and scheduling harvest and scheduling flexibilityflexibility
Forest Level Volume Impacts of Spacing – A Case Example – TFL 24
Serious shortage of stands for harvest in 50 years
Spacing young stands will allow them to reach a harvestable size sooner than unspaced stands
Stand level – spacing assumed a slight volume loss
Forest level – spacing provided an additional 13.9% (16,000 m3/yr) by producing desired piece sizes 10–15 years sooner
Stand level NPVs are only increased by $102,000/yr
Forest level NPVs are increased by $608,000/yr
Hectares (thousands)20
15
10
5
05
Age15 25 35 45 55 65 75 85 95 105115 130 141+
Stand Management for valueStand Management for value
Early stocking control or density management can reduce the % of pulp
grade logs ensure stands achieve a
higher % of J-grade logs produce a higher % of H
grade logs which have a significantly higher value,
Pre-commercial Hw Thinning Trial, Olympia Peninsula, Wash. (Site Index 36 m; 38 year results)
Source: Guidelines for Developing Stand Density Management Regimes, Information Session, 1999
Impact of Spacing on: Stock Table Distributions
Control
575 cu. m/ha440 cu.m/ha
Total Vol.
Vol.25cm
135 cu.m/ha425 cu.m.ha
Stand Management for valueStand Management for value
One thing that we have not analysed well is the impacts on stand value of spacing and favoring other species
Spacing Hw leading stands with other tree species can lead to significant increases in value
I.e. by spacing a SI 27 m stand with Hw9Fdc1-9000 sph and converting the stand to Fdc 9 Hw to 900 sph
29% increase in stand value Whether density management is appropriate will be
dependant on Merch volume and value objectives
Fertilization of HwFertilization of HwFertilization of HwFertilization of Hw
Fertilizing of SHIRP Fertilizing of SHIRP type sites is still an type sites is still an important forest level important forest level timber supply optiontimber supply option
Climate changeClimate change
BC forests and the forest sector can contribute to a climate mitigation strategy
A sustainable forest management strategy aimed at maintaining or increasing forest carbon stocks, while producing an annual sustained yield of timber, fibre or
energy from the forest, will generate the largest sustained mitigation benefit (IPCC AR4).
The coast strategy and climate change objectives can work together in a complementary sense.
Coast Action Plan for silvicultureCoast Action Plan for silviculture
1. Site productivity fixes
2. Genetic improvement
3. fertilization
Silviculture Investment trendsSilviculture Investment trends
• 2002 - $3 million province wide• 2008 - $64 million province wide
• New Community Trust – Federal provincial program being developed
SummarySummary
Coastal Silviculturists Coastal Silviculturists have the defining impact on the future forests for a precious public assethave the defining impact on the future forests for a precious public asset must have up to date information and clear objectives for the growing stock must have up to date information and clear objectives for the growing stock
portfolio they are managing for future generations.portfolio they are managing for future generations. are responsible to ensure that the owner of the portfolio doesn’t end up with junk are responsible to ensure that the owner of the portfolio doesn’t end up with junk
bonds and low value assets bonds and low value assets
Forest Management Plans, FSPs and silviculture strategies need to Forest Management Plans, FSPs and silviculture strategies need to contain clear objectives as to the type and proportion of Hemlock contain clear objectives as to the type and proportion of Hemlock stands that are going to be managed in the portfolio. stands that are going to be managed in the portfolio.
Our generation is responsible for ensuring that today’s harvesting and Our generation is responsible for ensuring that today’s harvesting and silviculture practices result in healthy, valuable stands that will be silviculture practices result in healthy, valuable stands that will be available in a timely manner for the next generationavailable in a timely manner for the next generation
Peter Jacobson – Economics and TradePeter Jacobson – Economics and Trade International Wood Markets GroupInternational Wood Markets Group Doug Williams, Andy Howard – Cortex Doug Williams, Andy Howard – Cortex
ConsultantsConsultants Al Powelson, Pat Martin, Brian Raymer – Al Powelson, Pat Martin, Brian Raymer –
Forest Practices BranchForest Practices Branch Rod Negrave, Kevin Derow, Craig Wickland, Rod Negrave, Kevin Derow, Craig Wickland,
Scott Dunn, Paul Barolet, Louise de Scott Dunn, Paul Barolet, Louise de Montigny, Brian Barber, Charlie Cartwright Montigny, Brian Barber, Charlie Cartwright - MoFR- MoFR
John Muir, Mei Ching Tsoi - ConsultantsJohn Muir, Mei Ching Tsoi - Consultants
THANK YOU!THANK YOU!