[Table of Contents]
APPENDIX E - FORESTRY SIGNIFICANCE
ALASKA
Information on the significance of the forest industry for the State of Alaska was unavailable.
BRITISH COLUMBIA
The 1992/93 Ministry of Forests Annual Report states that in British Columbia:
- Forest revenues totalled $711.2 million.
- Direct employment in the Forest Industry accounted for 86,000 jobs in 1992.
- Total Volume committed on Code regulated lands for 1992/93 = 71.15 Million m3
- Total Volume harvested on Code regulated lands for 1992/93 = 70.47 Million m3
- 1993 Gross Provincial Revenue from forest sector = $13.58 billion
The 1994 Forest, Range and Recreation Resource Analysis states that in British Columbia:
- Total of 52 million visitor days use in B.C. Provincial Forests (1993)
- $2.4 billion of expenditures in B.C. related to Provincial forest recreational use in 1993
CALIFORNIA
California's 1992 timber harvest was about 14 million cubic metres and is valued at about U.S. $902.36 million (approx. $1.2 billion Canadian) (Little Hoover Commission, 1994). Timber Harvesting also provides an important tax resources funding local services in 54 counties. About 70% of the timber is consumed within the State. Timber harvest has been steadily declining over the last six years, although dollar value has, with the exception of 1991, risen. Despite the drop in harvest amounts, timber production is still a significant part of California's economy (Little Hoover Commission, 1994).
FINLAND
In 1990, 132,500 were employed in the forestry sector. The jobs were distributed between forestry (40,500), wood working industries (49,200), pulp and paper (34,300), and converted paper and paper board industries (8,500). An additional 43,000 jobs were with industries and services directly associated with the forestry sector (Kuusela, 1993. p. 30). The total, 175,500, represents 7.0% of Finland's 1990 labour force. By 1993 the number employed in the forestry sector had dropped to 101,000, approximately 5% of the labour force (Ministry of Agriculture and Forestry, 1994a. Annex #13).
Seventy percent of Finland's forest industry output is exported (Heino et al.1994. p.6). Between 1918 and 1974 the forest industry accounted for greater than 50% of the country's total exports. The sectors exports reached a maximum of 82% of the country's total exports in 1951. Forest exports, as a percentage of total exports, has declined steadily since 1974 to 38% in 1991, 36% in 1992, and 34% in 1993 (Kuusela, 1993. p.19, Heino et al. 1994. p.6). Even so, the share of export revenues from the forest industry are 7,800 Finnish Marks (Fmk) (approx. $2,300 Canadian) per person, the highest in the world (Heino et al. 1994. p.6).
In 1990, the forestry industry accounted for 19% of Finland's industrial production and 50% of the net export earnings (Kuusela, 1993. p. 11).. The value the forest sector added to the national economy in 1990 was 33,080 million Fmk (approx. $10 billion Canadian) and in 1993, 30,395 million Fmk (approx. $9 billion Canadian) (Ministry of Agriculture and Forestry, 1994a. Annex #13). The national income from the forestry sector as a percentage of Finland's Gross National Product (GNP) was 7.4% in 1990 and 7.3% in 1993 (Ministry of Agriculture and Forestry, 1994a. Annex #13).
GERMANY
Federal Republic of Germany
Over 490,000 people were employed in Germany's forestry sector in 1992 (Federal Republic of Germany, 1993. p.10).
Table E1 illustrates the breakdown of employment by forestry sector.
The Federal Republic's total revenues from forest industries (forestry, timber and pulp and paper industry) were approximately DM 105,700 million (approx. $116,270 million Canadian) in 1992. The industries contributed approximately DM 400 million (approx. $440 million Canadian) to the Bavarian economy in 1993 (Brinkmann, pers. comm.). The forest revenues account for 1.5% of the Federal Republics GNP (Brinkmann, pers. comm.). Forestry is not a major employer in Germany, however wood production is an essential source of income (Federal Republic of Germany, 1994. p.9).
General forestry management in state and community forests are currently operating at a loss. In 1991 revenues per hectare were DM -344 (-$378/ha Canadian) for state forests and DM -245 (-$270/ha Canadian) for community forests. Private forests are showing a small profit with revenues of DM 6 per hectare (approx. $7/ha Canadian) (von Heyebrand, pers. comm.).
NOVA SCOTIA
Information on the significance of forestry to the Nova Scotia economy is as follows:
- Forest revenues 1993 = $3.7 million (from Crown Lands)
- Values of shipments accounted for 3 1/2 percent of Nova Scotia's GDP in 1993 ($640 million).
- Forest expenditures 1992 = Total Provincial/Federal expenditures = $49.7 million (does not necessarily include all expenditures of private forest companies).
- Direct employment in the Forest Industry = 6,000 + direct, and an estimated 12,000 + indirect jobs in 1993 (mostly rural areas).
ONTARIO
Information on the significance of forestry to the Ontario economy is as follows:
- Forest Revenues = $10.0 billion
- Forest Expenditures = $397.4 million + $1.0 billion in investment
- Percent of GDP of Ontario = 0.18%
- Forestry Employment (full-time jobs)
- Direct - 79,000
- Indirect - 75,000
- Percent of Provincial Employment = 3.2%
OREGON
Oregon has historically been a leader in log and lumber production for the United States. In 1993, the state led the USA in log production with roughly 24,985,000 m3 (Bourhill, R. 1993). About 70% of the volume is from western Oregon. Production has been declining over the last several years due to the removal of major areas of federal (USFS and BLM) lands from timber production because of concerns such as Northern Spotted Owl protection (Lettman, G. 1994; USDA - Forest Service, 1994a).
The forest industry accounted for about 7% of the State's 1993 gross state product of U.S. $65.8 billion (approx. $86 billion Canadian). The industry's relative contribution may be declining because of shrinking timber supplies and growth in other industries, mainly in urban areas (Lettman, G. 1994). However, the forest industry employed over 74,000 workers in 1993: about 30% of all Oregonians employed in manufacturing and 6% of the State's total employment (Lettman, G. 1994).
SWEDEN
In 1991 direct employment from the forestry industry was 142,000 jobs and indirect employment was 70,000 (Hagner and von Sydow 1991). The forest industry employs between 2 and 3% of Sweden's work force (P. Kjellin, pers. comm.).
Forestry, not including the forest industries, accounts for less than 1% of Sweden's gross national product.
TASMANIA
Information on the significance of forestry to the Tasmania economy is as follows (Canadian and Australian dollar are essentially equivalent):
- Forest Expenditures = AUS $42,257,633 of which AUS $1,098,583 are private forestry division operating expenses.
- Total timber volume harvested in 1993 was approximately 3,607,000m3. Approximately an equal volume was harvested from crown and private land.
UNITED KINGDOM
Information on the significance of forestry to the U.K. economy is as follows:
- Annual Forest revenues = $84Million canadian (approx) in 1993/94 (FC land only)
- Direct employment in the Forest Industry accounted for 45,726 full time jobs (approx)
- Total Timber Volume harvested on FC regulated lands for 1992/93 = 6,995,000 m3 (approx)
- Total Area Harvested in 1992/93 = 9,780 ha (FC only)
U.S. FOREST SERVICE (REGION 6)
The 1991 annual cut from Region 6 was 875.6 million board feet or roughly 4 million m3. Timber production declined dramatically between the 1980s and 1991 due to the previously mentioned court injunctions. For example between 4 and 5 billion board feet (19 to 23 million cubic metres) were cut annually in the 1980s. Cuts will be significantly reduced under the ROD but they are expected to remain at about the 1991 level. Precise regional estimates are not now available, but it is known that land areas available primarily for timber management will be reduced to around 10 to 25% of the pre-ROD area.
For the Mt. Baker-Snoqualmie National Forest (an area of about 688,000 ha), annual cuts have declined from about 300 million board feet (about 1.5 million m3) in 1980 to about 250 million board feet (about 1.1 million m3) in the mid-1980s to roughly 100 million board feet (about half a million m3) in recent years. Under ROD, it is expected that annual cuts will be approximately 10 million board feet (approximately 50,000 m3). Compared to 1980, this is a decline of over 90%. Reductions for other forests in the region may not be as drastic, but they nevertheless will be significant (Iozzi, J. and M. Wilson pers. comm).
In the Mt. Baker-Snoqualmie forest, local counties' share of timber sale receipts (25% payments) declined an average of about 17% between 1991 and 1992. The decline is forecast to continue (U.S. Forest Service, 1993).
VICTORIA STATE
Information on the significance of forestry to the Victoria State economy is as follows (Canadian and Australian dollar are essentially equivalent):
- Forestry provides approximately 2-3 % of Victoria's State GDP.
- Department of Conservation and Natural Resources Expenditures = Australian $290 million
- Public Forest Expenditures = AUS $63 million (includes fire protection for all public lands)
- Production Business Expenditures = AUS$23 million
- Forest Revenue = approximately AUS $36.4 million (returns to State from royalties)
- Employment in the Forest Industry = 15,000 including all primary processing.
WASHINGTON
Washington had the second greatest timber harvest of all the states in the U.S.A. in 1993 (Larsen, D. 1993). Total 1993 timber harvest was about 20,270,000 m3 (Larsen, D. 1993). More than three-quarters of that harvest was from western Washington. Seventy-seven percent of the total harvest was from private lands; roughly 8% was from National Forests (USFS); about 4% was from other federal lands (BLM, Bureau of Indian Affairs, and others); about 11% was from state (DNR) managed lands.
WESTERN AUSTRALIA
Table E2 provides a summary of the significance of forestry to the Western Australia economy (Canadian and Australian $ are essentially equivalent).