View Single Post
Old 01-08-2010, 07:40 PM
Gravel Rat Gravel Rat is offline
LawnSite Member
Join Date: Jul 2002
Location: British Columbia
Posts: 9,544
Around here it costs the loggers money to deal with pulp/chip grade wood its fell and left in the bush you take a loss if you haul it out. I forget the value but for the amount of money you get from a 30 ton truck load it will not even pay for the trucking.

With lumber mills cut so much wood all the bark (hog fuel) is taken off the trees there is cubic millions worth of hog fuel it sells real cheap its almost free. Hog fuel burns twice as hot as chips because its ground up tree bark and it doesn't need to be dried like chips.

Any paper grade chips have to be hemlock or white wood species. With paper prices so low it isn't high enough to pay the logging companies to haul pulp grade lumber out of the bush. The paper mills don't have enough fiber to make paper.

The US gov't is subsidizing USA paper mills because they can't compete in the global market because you guys have to chip logs for steam to produce paper. So if the US gov't wasn't subsidizing the pulp and paper industry your mills in the USA would have shut down long ago. So your guys tax money is supporting mills to keep jobs but they are not profitable.

Because the USA paper market is subsidized it has killed the market for Canadian paper. The Canadian paper producers don't get subsidized they don't need to be because the mills are efficient but they can't sell the paper as cheap as it is in the USA. So any paper you write on your tax money is paying for just to keep jobs going in the USA.
Reply With Quote
Page generated in 0.03905 seconds with 8 queries