Capacity for utilization of USDA Forest Service, Region 1 small-diameter timber. The USDA Forest Service has identified the need to treat

Transcription

1 Cpcity for utiliztion of USDA Forest Service, Region 1 smll-dimeter timer Chrles E. Keegn III Todd A. Morgn Frncis G. Wgner Ptrici J. Cohn Keith A. Bltner Timothy P. Spoelm Steven R. Shook Astrct The need to tret millions of cres in the western United Sttes for fire hzrd nd ecosystem restortion hs een identified s high priority y the USDA Forest Service. These tretments my require removing incresed volumes of timer including smll-dimeter trees from Ntionl Forests nd other ownerships. The gol of this reserch ws to provide estimtes of the forest products industry s cpcity to utilize trees of vrious sizes from the USDA Forest Service Region 1 timerprocessing re. The mjor sources of industry timer-processing cpcity dt were surveys nd telephone interviews with mill mngers. Within the USDA Forest Service Region 1 timer-processing re, there were 298 timer-processing fcilities in opertion s of August 30, 2003: 110 swmills, 101 house log /log home fcilities, 42 post nd smll pole producers, 23 mnufcturers of log furniture, 12 cedr products producers, 7 plywood nd veneer plnts, nd 3 utility pole producers. Annul cpcity to process timer within the timer-processing re ws 576 million cuic feet (16.3 million cuic meters) excluding pulpwood. Mills utilized 79 percent of their cpcity during the 12 months prior to August 30, Over 91 percent of the timer processed ws from trees 10 inches (25.4 cm) in dimeter t rest height (DBH), slightly more thn 7 percent from trees 7- to 9.9-inches (17.8 to 25.1-cm) DBH, nd only 1 percent from trees < 7-inches (17.8 cm) DBH. More thn 71 percent of the industry cpcity could not operte efficiently on trees < 10-inches (25.4 cm) DBH, nd only 2 percent of the cpcity could utilize trees < 7-inches (17.8 cm) DBH. The USDA Forest Service hs identified the need to tret millions of cres of forest lnds in the western United Sttes for fire hzrd nd ecosystem restortion. Implementing tretments designed to restore desired ecologicl conditions my cll for the removl of timer vlule enough to underwrite the costs of tretment (Fiedler et l. 1999). However, these tretments could lso require removing smller trees with limited vlue nd mrkets. Quntifiction of current milling cpcity nd elucidtion The uthors re, respectively, Reserch Professor nd Director, nd Assistnt Director of Forest Industry Reserch, Bureu of Business nd Economic Reserch, Univ. of Montn, Missoul, MT; Professor, Forest Products Dept., Univ. of Idho, Moscow, ID; Reserch Associte nd Professor nd Chir, Dept. of Nturl Resource Sciences, Wshington Stte Univ., Pullmn, WA; Reserch Forester, Univ. of Montn, Bureu of Business nd Economic Reserch; nd Associte Professor, Forest Products Dept., Univ. of Idho, Moscow, ID. This report ws prtilly funded y the USDA Forest Service Region One Chllenge Cost-shre Agreement #03-CS nd the USDA CSREES Inlnd Northwest Forest Products Reserch Consortium Specil Grnt The uthors lso cknowledge the USDA Forest Service Interior West Forest Inventory nd Anlysis of the Rocky Mountin Reserch Sttion for on-going support of nlysis of the forest products industry nd its timer product use s well s the Inventory Monitoring nd Anlysis Group of the USDA Forest Service for finncil nd other support. This pper ws received for puliction in Octoer Article No Forest Products Society Memer. Forest Products Society Forest Prod. J. 55(12): FOREST PRODUCTS JOURNAL Vol. 55, No

2 of the sizes nd types of mterils tht existing mills re cple of utilizing re key components to n overll finncil nlysis of fire hzrd reduction/ecosystem restortion progrm. Gols of this reserch were to identify the timer-processing re supplied y USDA Forest Service Region 1 timerlnds, quntify the volume of timer currently processed from trees of vrious sizes within the timer-processing re, nd estimte the cpcity of existing fcilities to utilize dditionl trees of vrious dimeters. The study focused on fcilities tht exclusively used timer in round form. There is sustntil mrket in the region for mill y-products (i.e., chips, swdust, plne shvings, nd rk), nd it ws ssumed tht y-products could e successfully mrketed. Methods The mjor sources of informtion used to estimte timer-processing cpcity nd volumes of timer processed were surveys of the forest products industry (Keegn et l. 1995, 1997, 2001, 2003, 2004; Keegn 2001; Cohn nd Bltner 2003; Bltner et l. 2004; Morgn et l. 2004). Follow-up telephone interviews with selected mill mngers, conducted etween My nd August 2003, were used to updte volumes of timer processed s well s cpcity to utilize timer of vrious sizes. Idho nd Montn forest products industry dt re stored in the Forest Industries Dt Collection System (FIDACS 2003). This system focuses on the source (geogrphic nd ownership) nd volume of timer used on stte-y-stte sis. Mill-level dt were comined to crete county, stte, nd multi-stte (regionl) summries while protecting individul firm dt. Forest products mnufcturers provided the following detiled informtion to FIDACS through written questionnires for ech plnt for given clendr yer: production employment, nnul production cpcity, volume of rw mteril received, y county nd ownership, species nd sizes of timer received, volume, sles vlue, nd mrket loction of finished products, utiliztion nd mrketing of mnufcturing residue, plnt production equipment, nd eginning nd ending inventory levels of rw mterils nd finished products. Becuse the surveys nd censuses used to collect mill-level dt included questions ddressing totl volume of timer processed nnully nd totl volume of products produced (e.g., thousnd ord feet of lumer, thousnd squre feet of plywood), recovery per unit of timer input ws redily clculted nd pplied to reported production cpcity in units of output for ech mill. Thus nnul cpcity ws expressed in common units of timer input (thousnd cuic feet), nd the cpcity figures for vrious segments of the industry (i.e., swmills, plywood plnts, post nd pole plnts) were comined to estimte the industry s totl cpcity to process timer, referred to s timer-processing cpcity. Among the questions posed to mill mngers were severl sking how their fcility could nd would respond to incresed vilility of smll-dimeter trees, nd wht their shift nd nnul cpcities were t the time of the interview. Timer processing re nd timer use y size The timer-processing re for USDA Forest Service Region 1 timerlnds ws defined s counties with processing fcilities receiving timer hrvested from counties contining USDA Forest Service Region 1 timerlnds. However, counties receiving smll volumes (< 50 thousnd cuic feet or 1.4 thousnd cuic meters) of timer tht moved long distnces (greter thn 200 miles) were not included in the finl delinetion of the timer-processing re. Mills nd ssocited counties receiving these smll volumes often for specilty products such s house logs were not included ecuse long-distnce flows of timer were often one-time events rther thn shipments tht would e expected to occur repetedly. Three tree dimeter clsses were identified to ctegorize timer use nd milling cpcity: trees < 7 inches (17.8 cm) dimeter t rest height (DBH), trees 7 to 9.9 inches (17.8 to 25.1 cm) DBH, nd trees 10 inches (25.4 cm) DBH. These size clsses were sed upon previous nlysis tht identified minimum tree sizes tht could e processed y the region s swmilling industry which historiclly hs processed over 80 percent of the region s timer (Wgner et l. 1998, 2000; Stewrt et l. 2004), descriptions of mill equipment nd product lines (including log sizes used y post, pole, log home, nd log furniture mnufcturers) (FIDACS 2003), nlysis of ecologicl restortion/fire hzrd reduction prescriptions which indicte size distriution of trees removed (Fiedler et l. 2001), nd discussions with USDA Forest Service Region 1 stff regrding the numer nd rnge of tree-size clsses tht would meet their plnning needs. Estimtes of the proportion of timer used in ech of the three size clsses were mde for ech mill within the timer processing re. Most fcilities were designed to operte using trees of given size clss (e.g., veneer/plywood plnts which primrily used trees 10 in [25.4 cm] DBH, or post mnufcturers which cn use lmost exclusively trees<7in[17.8 cm] DBH). Some fcilities, in prticulr numer of swmills, vried gretly in equipment, product output, nd ility to process timer of vrious sizes. For these mills proportions of timer in ech size clss were clculted from totl volume estimtes nd size-clss proportions provided y mill mngers. Mngers estimted, to the nerest 10 percent, the proportion of logs processed t their fcility with smll-end dimeters inside rk < 7 inches (17.8 cm), 7 to 9.9 inches (17.8 to 25.1 cm), nd 10 inches (25.4 cm). They lso provided preferred nd minimum smll-end dimeters inside rk nd preferred nd minimum log lengths. Logs in ech size clss were ssumed to hve 2 inches (5.1 cm) of tper per 16 feet (4.9 m). Mill mngers lso provided n estimte of the proportion of logs with smll-end dimeter < 7 inches (17.8 cm) tht cme from the tops of lrge trees vs. from smll trees. Smlin s formul (Avery nd Burkhrt 1994) ws then used to clculte the cuic volume of trees processed in ech size clss sed on preferred nd minimum smll-end dimeter nd lengths. Results The geogrphic expnse identified s the USDA Forest Service Region 1 timer-processing re included three estern Wshington counties, 25 Idho counties, nd 33 Montn counties (Fig. 1). Within the timer-processing re, there were 298 timer-processing fcilities in opertion s of August 30, 144 DECEMBER 2005

3 2003: 110 swmills, 101 house log/ log home fcilities, 42 post nd smll-pole producers, 23 mnufcturers of log furniture, 12 cedr products producers, 7 plywood nd veneer plnts, nd 3 utility pole producers. In ddition to the Idho, Montn, nd Wshington mills mentioned, severl mills in northern Wyoming nd western South Dkot consistently received timer hrvested from counties contining USDA Forest Service Region 1 non-reserved forestlnd. However, due to the limited numer of these mills nd the relted need to protect firm-level dt, these mills were not included in the timer-processing re. The volumes of timer involved were smll reltive to the totl timer utilized in the Region 1 timer processing re. Timer processing cpcity nd utiliztion y timer size Annul cpcity to process timer within the timer processing re s of August 30, 2003 ws 576 million cuic feet (MMCF) (16.3 million cuic meters [MMCM]) excluding pulpwood. Approximtely 15 percent of the timer-processing cpcity ws locted in estern Wshington, 39 percent in Montn, nd 46 percent in Idho (Tle 1). Region wide, these mills utilized 79 percent of cpcity, processing 456 MMCF (12.9 MMCM) of timer during the previous 12 months. Utiliztion rnged from 70 percent of cpcity in estern Wshington to 84 percent in Idho. Montn mills utilized lmost 77 percent of cpcity. Within the timer-processing re, the proportions of timer used y size clss vried slightly y stte (Tle 1). In Montn, 87 percent (151 WASHINGTON OREGON MMCF or 4.3 MMCM) of timer used ws from trees 10 inches (25.4 cm) DBH, while 97 percent of timer (58 MMCF or 1.6 MMCM) used y estern Wshington mills ws from this lrger size clss. Almost 2 percent of timer used y Montn mills ws from trees < 7 inches (17.8 cm) DBH. Slightly more thn 1 percent of timer used in Idho ws from this smllest size clss. Across the entire timer-processing re, over 91 percent of the timer processed (416 MMCF or 11.8 MMCM) ws from trees 10 inches (25.4 cm) DBH. Slightly more thn 7 percent (33 MMCF or 0.9 MMCM) ws from trees 7 to 9.9 inches (17.8 to 25.1 cm) DBH, nd only 1 percent (6 MMCF or 0.2 MMCM) ws from trees < 7 inches (17.8 cm) DBH. Over 90 percent (420 MMCF or 11.8 MMCM) of ll timer processed in the timer-processing re ws from live/green trees. However, swmills occsionlly sustituted ded timer IDAHO Stte lines County with receiving mill USFS Region One MONTANA WYOMING Figure 1. USDA Forest Service, Region 1 timer-processing re. NORTH DAKOTA SOUTH DAKOTA Tle 1. Timer-processing cpcity nd timer volume processed y size clss (excluding pulpwood). Volume Volume used y size clss Su-region Cpcity processed DBH < 7 in DBH 7 to 9.9 in DBH 10+ in (thousnd ft 3 of timer) Estern Wshington 85,007 59,869 1,944 57,925 Idho 264, ,085 2,975 11, ,732 Montn 226, ,705 2,729 20, ,814 Totl 576, ,659 5,704 33, ,471 Not disclosed ecuse of the limited numer of mills. The volumes re included in the 7 to 9.9-inch DBH clss. Tle 2. Timer volume used y product type nd size clss (excluding pulpwood). Tree size clss Lumer, plywood veneer, poles, piling House logs Posts, smll poles, log furniture Cedr products All products (thousnd ft 3 ) DBH < 7 inches 5,703 5,703 DBH 7 to 9.9 inches 31, ,400 33,487 DBH 10+ inches 403,955 6,054 6, ,470 Totl 435,487 6,609 7,103 6, ,660 Not disclosed ecuse of the limited numer of mills. The volumes re included in the 7 to 9.9-inch DBH clss. No volumes reported. from slvge opertions, house log producers utilized ded timer for the mjority of their rw mteril, nd cedr products producers utilized out 40 percent ded timer. Post, smll pole, nd roundwood furniture producers lmost lwys used live timer. Product use nd species Ninety-five percent (435 MMCF or 12.3 MMCM) of ll timer ws used to produce lumer, plywood, veneer, utility poles, nd piling (Tle 2). This timer cme from trees 7 inches (17.8 cm) DBH with out 92 percent coming from trees 10 inches (25.4 cm) DBH. Timer for house logs (7 MMCF or 0.2 MMCM) nd cedr products (6 MMCF or 0.2 MMCM) ws lmost exclusively from trees 10 inches (25.4 cm) DBH. Timer for posts, smll poles, nd roundwood log furniture (7 MMCF or 0.2 MMCM) showed much different distriution FOREST PRODUCTS JOURNAL Vol. 55, No

4 with virtully ll timer from trees < 10 inches (25.4 cm) DBH nd 80 percent from trees < 7 inches (17.8 cm) DBH. Most timer for post, pole, nd log furniture ws from lodgepole pine (Pinus contort) in the smllest size clss (< 7 in [17.8 cm] DBH), wheres most swtimer for veneer nd plywood ws from Dougls-fir (Pseudotsug menziesii) nd western lrch (Lrix occidentlis) in the lrgest size clss ( 10 in [25.4 cm] DBH). Cedr products mnufcturers nd utility pole plnts processed primrily western redcedr (Thuj plict) from the lrgest size clss. Log home mnufcturers processed mostly lodgepole pine (Pinus contort) nd Engelmnn spruce (Pice engelmnnii) from the lrgest size clss, while swmills processed full vriety of species lmost exclusively from the two lrger size clsses ( 7 in [17.8 cm] DBH). Cpcity to process timer of vrious sizes Aout 410 MMCF or 11.6 MMCM (71%) of timer-processing cpcity could not operte efficiently on trees < 10 inches (25.4 cm) DBH (Tle 3). This ws in mills designed to operte solely on lrger timer ( 10 in [25.4 cm] DBH) nd t two-sided mills with prts of the mills designed to process lrge logs nd the other prts designed to process smll logs. Aout 55 percent (226 MMCF or 6.4 MMCM) of this lrgelog-only cpility ws in Idho where it ccounted for more thn 85 percent of totl timer-processing cpcity. In Montn, lrge-log-only cpility ccounted for out 62 percent of totl timer-processing cpcity, while in estern Wshington it ccounted for just 51 percent of totl cpcity. Approximtely 152 MMCF (4.2 MMCM) of timer-processing cpcity (26% of totl cpcity) could efficiently process trees 7 to 9.9 inches (17.8 to 25.1 cm) DBH, with out one-hlf of the cpcity in Montn, 27 percent in estern Wshington, nd 22 percent in Idho. Only out 14 MMCF or 0.4 MMCM (2%) of the totl timer-processing cpcity could efficiently process trees < 7 inches (17.8 cm) DBH. Of this 14 MMCF (0.4 MMCM) of cpcity, 66 percent ws in Montn nd over 30 percent ws in Idho. For the estern Wshington counties, due to the limited numer of mills cple of processing timer under 7 inches DBH, volumes re included in the 7 to 9.9 inch DBH clss. Pulpwood nd industril fuelwood Roundwood pulpwood used s rw mteril y the pulp nd pper industry hs een vrile nd reltively unpredictle from yer to yer. Reported roundwood pulpwood use, including some timer for industril fuelwood y pulp nd pper mills within the timer-processing re, hs rnged from less thn 20 MMCF (0.6 MMCM) to more thn 40 MMCF (1.1 MMCM) nnully in recent yers. An estimted 30 to 40 percent of this mteril ws from green trees < 10 inches DBH. The reminder cme from lrger cull trees. Vriility nd unpredictility of the pulpwood mrkets exist primrily ecuse timer in round form is n lterntive to the mjor source of rw mteril of the pulp nd pper industry which is mill residue from swmills (Keegn et l. 1999). The yer-to-yer wood-fier requirements of pulp nd pper mills vry less thn the supply of mill residues. Pulp nd pper mills hve much higher fixed costs nd re much more expensive to operte t vrying production levels thn swmills. Thus, during recessions when lumer production nd relted mill residue supplies Tle 3. Timer-processing cpcity y size clss (excluding pulpwood). Totl Cpcity y DBH size clss Su-region cpcity < 7 in. 7 to 9.9 in. 10+ in (thousnd ft 3 of timer) Estern Wshington 85,007 41,420 43,587 Idho 264,876 4,715 33, ,441 Montn 226,580 9,130 77, ,121 Totl 576,463 13, , ,149 Not disclosed ecuse of the limited numer of mills. The volumes re included in the 7 to 9.9-inch DBH clss. decline, demnd for roundwood pulpwood increses to fill the rw-mteril void. Conclusions Utiliztion of timer-processing cpcity in the timerprocessing re is 79 percent which leves lmost 121 MMCF (3.4 MMCM) of cpcity unutilized. Mill mngers indicted tht they would increse production if rw mteril vilility incresed. However, mills hve rrely operted t more thn 90 percent of cpcity (Keegn et l. 1997, 2001; Cohn nd Bltner 2003; Schlosser nd Bltner 2002). Thus, it is unlikely tht ll of the unutilized cpcity would e used. However, the existing industry could redily process n dditionl 60 to 80 MMCF (1.7 to 2.3 MMCM) of timer nnully. Additionl volumes of trees 10 inches (25.4 cm) DBH would e most preferred y existing mills. Results of this study indicte distinct opportunity to expnd the utiliztion of trees 7 to 9.9 inches (17.8 to 25.1 cm) DBH with no chnge in industry infrstructure. Over the 12-month period ending August 30, 2003, mills processed 33 MMCF (0.9 MMCM) of timer (Tle 1) in this size clss. However, existing mills could hve processed over 150 MMCF (4.2 MMCM) (Tle 3). Processing more volume in the 7 to 9.9 inches (17.8 to 25.1 cm) DBH size clss could come out if more volume ecme ville, nd mills sustituted these smller trees for lrger trees. However, while mny mills my e cple of processing lrger volume of trees in the 7 to 9.9 inches (17.8 to 25.1 cm) DBH clss, mny prefer trees 10 inches (25.4 cm) DBH. It should e noted lso tht numer of mills, most commonly swmills, indicted tht ponderos pine (Pinus ponderos) < 10 inches DBH could not e processed s efficiently s other mjor species. Expnded utiliztion of the smllest-size clss (< 7 in [17.8 cm] DBH) would e more limited. Study results indicte tht only out 14 MMCF (0.4 MMCM) of existing cpcity could efficiently utilize trees < 7 inches (17.8 cm) DBH, nd out 45 percent this cpcity is currently eing used. Additionlly, much of this processing cpcity is in fcilities such s post plnts with strong preference for lodgepole pine (Pinus contort). Thus, utiliztion of lrge volumes of trees < 7 inches (17.8 cm) DBH would require n increse in totl timer-processing cpcity or incresed use y the existing pulp nd pper industry. Potentil for industry expnsion Mngers from out two-thirds of the mills interviewed sid tht they were willing to mke modest improvements (generlly under $1 million) to enhnce their ility to process 146 DECEMBER 2005

5 smll-dimeter timer. These improvements included utomting more of their opertion nd improving the efficiency of sorting nd hndling, conveyors, down-line processing, nd rekdown procedures. Other improvements included upgrding mchinery nd modifying sws nd plners. Slightly more thn one-hlf sid tht they would mke mjor cpitl investment to expnd the mill, while less thn one-hlf would not. Mill mngers tht stted they would mke cpitl investments tempered their replies y stressing the need for n ssured, long-term supply of timer in order to recoup investment costs. An overwhelming mjority of mill mngers commented tht gurnteed, long-term supply of timer would e needed to mke ny investment in new smll-log technology. Good mrkets, profitility, less expensive logs, nd investment cpitl were lso mentioned. Literture cited Avery, T.E. nd H.E. Burkhrt Forest Mesurements. 4th ed. McGrw-Hill, Inc. New York, NY. 408 pp. Bltner, K.A., C.E. Keegn, S.R. Shook, nd F.G. Wgner Wshington s Forest Products Industry: Current Conditions nd Forecst MISC0531. Wshington Stte Univ. Coopertive Extension, Pullmn, WA. 8 pp. Cohn, P.J. nd K.A. Bltner Estern Wshington swmill sttistics for MISC Wshington Stte Univ. Coopertive Extension, Pullmn, WA. 4 pp. Forest Industry Dt Collection System (FIDACS) Bureu of Business nd Economic Reserch, The Univ. of Montn Missoul. Fiedler, C.E., C.E. Keegn, C.W. Woodll, T.A. Morgn, S.H. Roertson, nd J. Chmelik A strtegic ssessment of fire hzrd in Montn. Report sumitted to Ntionl Joint Fire Sciences Progrm, Boise, ID.,, D.P. Wichmn, nd S.F. Arno Product nd economic implictions of ecologicl restortion. Forest Prod. J. 49(2): Keegn, C.E Sttisticl Yerook of the Western Lumer Industry. Western Wood Products Assocition, Portlnd, OR. pp , D.P. Wichmn, A.L. Herst, P.E. Polzin, nd D.D. Vn Hooser Montn s Forest Products Industry: A Descriptive Anlysis Bureu of Business nd Economic Reserch, The Univ. of Montn, Missoul, MT. 49 pp.,, D.D. Vn Hooser, T.G. Gormn, F.G. Wgner, P.E. Polzin, nd A.L. Herst Idho s Forest Products Industry: A Descriptive Anlysis Bureu of Business nd Economic Reserch, The Univ. of Montn, Missoul, MT. 68 pp., K.M. Geert, A.L. Chse, T.A. Morgn, S.E. Bodmer, nd D.D. Vn Hooser Montn s Forest Products Industry: A Descriptive Anlysis Bureu of Business nd Economic Reserch, The Univ. of Montn, Missoul, MT. 68 pp., K.A. Bltner, nd D.P. Wichmn Chnging use ptterns y mjor users of mill residue in the Inlnd Northwest. Forest Prod. J. 49(3):38-42., T.A. Morgn, S.R. Shook, F.G. Wgner, nd K.A. Bltner Montn s forest products industry. Montn Business Qurterly. 41(1):34-36.,, F.G. Wgner, K.J. Pvi, S.R. Shook, nd K.A. Bltner Idho s Forest Products Industry: Current Condition nd Forecst Bulletin 81. The Univ. of Idho Forest, Wildlife, nd Rnge Experiment St., Moscow, ID. 4 pp. Morgn, T.A., C.E. Keegn, T.P. Spoelm, T. Dillon, A.L. Herst, F.G. Wgner, nd L. DeBlnder Idho s forest products industry: A descriptive nlysis. Resour. Bulletin RMRS-RB-4. USDA Forest Serv., Rocky Mountin Res. St., Ft. Collins, CO. Schlosser, W.E. nd K.A. Bltner Estern Wshington Swmill Sttistics for MISC0510. Wshington Stte Univ. Coopertive Extension, Pullmn, WA. 4 pp. Stewrt, H.G., K.A. Bltner, F.G. Wgner, nd C.E. Keegn Risk nd economic fesiility of processing smll-dimeter mteril in the U.S. West. Prt I: Structurl lumer. Forest Prod. J. 54(12): Wgner F.G., C.E. Keegn, nd C.E. Fiedler Processing vlue of smll-dimeter swtimer t conventionl stud swmills nd modern, high-speed smll-log swmills in the Western U.S.: A comprison. Western J. of Applied Forestry. 15(4): ,, R.D. Fight, nd S.A. Willits Potentil for smll-dimeter swtimer utiliztion y the current swmill industry in Western North Americ. Forest Prod. J. 48(9) FOREST PRODUCTS JOURNAL Vol. 55, No