To say that times are tough in the Canadian forestry sector is a gross understatement. With the U.S. housing collapse and global financial services meltdown, the sector has lost 50,000 jobs and more than 250 mills over the past two years.
A federal program intended to promote the use of renewable fuels is instead encouraging U.S. paper companies to pursue some rather "un-green" practices, such as substituting virgin pulp for recycled pulp.
Posted Fri Mar 27, 2009 3:00pm AEDT; Updated Fri Mar 27, 2009 3:18pm AEDT
The industry has described the price as disappointing. (ABC News: David Hudspeth)
A timber industry analyst says the entire sector will be affected by Gunns' stagnant woodchip price.
The Tasmanian timber company has informed the Australian Stock Exchange it has been unable to negotiate an increase in its woodchip price with Japanese buyers this year.
