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Title: Implications For the Forest Products Industry

Author: Kluender, Richard A.;

Date: 2001

Source: Gen. Tech. Rep. SRS 41. Asheville, NC: U.S.Department of Agriculture, Forest Service, Southern Research Station. pp. 55-59

Publication Series: Miscellaneous Publication

   Note: This article is part of a larger document. View the larger document

Description: Major changes have occurred in the Arkansas timber economy in the last 25 years.Global and domestic demand for forest products continues to expand,doubling every 42 years. Additionally,the U.S. per capita consumption rate of forest products is over three times the world average. Production continues to expand to meet rising global demand,but timber supplies have not kept up with demand. Major reductions in public lands harvest have increased pressure on southern nonindustrial lands.Local procurement problems abound in the face of new entrants and existing mill expansions. Procurement costs continue to increase as social legislation forges an increasingly capital intensive harvesting force. Supply of roundwood falls short of rising demand. Consequently,short-term price run-ups have accelerated harvest into marginally merchantable stands. Growth-drain ratios reflect declining nonindustrial timber reserves. Long-term real price appreciation of stumpage will continue,and procurement officers will face increasing problems and expense in wooding mills.

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Kluender, Richard A. 2001. Implications For the Forest Products Industry. Gen. Tech. Rep. SRS 41. Asheville, NC: U.S.Department of Agriculture, Forest Service, Southern Research Station. pp. 55-59


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