If you work in the New Brunswick forestry sector, you know the delicate balance of supply and demand. That balance is currently shifting. Ken Thomas has harvested lumber from forests in Stanley for over 32 years. Now, he faces tough decisions after his longtime purchaser pulled out of the market.

Earlier this month, the AV Nackawic mill announced a temporary shutdown starting at the end of October. The mill owner, AV Group, stopped purchasing wood in August. According to a recent report from CBC News, this closure forces harvesters like Thomas to rethink their operations.

Tough Choices for Local Producers

Thomas previously sold 40 percent of his products to the Nackawic mill. The sudden loss of this buyer means he has to find new homes for low grade hardwood. The lack of buyers creates a bottleneck.

“The problem now is everybody is going to be chasing products that they can sell, which is going to put a lot of pressure on the mills that are still buying to meet everybody’s obligations,” Thomas told CBC News.

These challenges forced Thomas to lay off one employee and sell a harvesting machine. He noted it was a tough decision to let a good employee go, but the reduced workload made it necessary.

Market Oversupply Concerns

Finding a new buyer is only part of the problem. Thomas worries about the sheer volume of wood entering the open market. Sawmills in the province have limited capacity to buy and sell products. An unexpected influx of wood will displace independent producers.

Temporary Export Permits Issued

New Brunswick divides its Crown woodlots into 10 sections. The province licenses these sections to four major wood processing companies, including AV Group. If the Nackawic mill closes permanently, 257,000 hectares of Crown land licensed to AV Group will become available.

While the province determines the next steps, Natural Resources Minister John Herron stepped in. He exempted the mixed hardwood grown for the Nackawic mill from regulations that keep it inside New Brunswick. Currently, about 60 percent of that wood has permission to move outside the province. This allows Crown wood to travel to Quebec, Nova Scotia, and the United States for processing.

“I have authorized temporary, emphasizing the word temporary, export permits for wood to leave the province,” Herron stated.

Political Pushback

Not everyone agrees with exporting raw materials. Green Party Leader David Coon criticized the move. He believes the province loses out when it exports raw natural resources instead of adding value locally.

Despite the industry turbulence, Thomas remains optimistic about his own future as he nears retirement. He loves his career and believes forestry contractors are resilient enough to survive the current market shift.

Frequently Asked Questions

Why are New Brunswick woodlot producers downsizing?

Producers are downsizing because the AV Nackawic mill stopped buying wood in August and announced a temporary shutdown for the end of October. This leaves producers without a primary buyer for their low grade hardwood.

What happens to the wood meant for the Nackawic mill?

Natural Resources Minister John Herron authorized temporary export permits. This allows about 60 percent of the Crown wood originally destined for the mill to be exported to Quebec, Nova Scotia, and the United States.

How does the mill closure affect the local lumber market?

The closure floods the market with excess wood. Local sawmills have limited capacity, and the sudden influx of products puts pressure on remaining buyers and threatens to displace independent producers.