1. Forest Product Manufacturing and
Sustainability in Georgia
Legislator’s
Orientation at GFA
Forsyth, GA
December 3, 2014
Devon Dartnell
Georgia Forestry
Commission
1-800-GA-TREES
www.GaTrees.org
2. 2
Southern US Forests in a Global Context
•Boreal (taiga)
and temperate
native forest
– Mainly softwood
– Few species
– Extensive
forestry
– Sustainable
management
•Native tropical forests
– Hardwoods
– Many species
– Non-sustainable
forestry
•Plantation
– Hardwoods and
softwoods
– Few species
– Very intensive forestry
– Sustainable
Source: McKinsey team analysis, 2005; Cubbage and Siry 2001
3. Title
Economic Impact of Georgia’s Forests
Direct Impacts
• Output - $16.4 billion
• Jobs – 49,497
• Wages & Salaries - $3.1 billion
Total Impacts
$28.9 billion
135,732 jobs
250,000
200,000
150,000
100,000
50,000
-
35,000
30,000
25,000
20,000
15,000
10,000
5,000
-
Jobs
US $ Million
Output Employment
4. 2013 Timber Product Output Survey
179 Primary Wood-Using Mills Operating in Georgia
Pulpmills, 12
Sawmills, 86
Miscellaneous,
Chipmills, 21
Post and Pole,
15
34
Veneer & Panel
Products, 11
At least 49 primary mills export now, compared to 45 in 2009
Mills report that 100% of residues are utilized
10 new mills since 2009
5. Forestry
Management,
Logging, and
Misc. Forest
Products
6%
Lumber, Veneer,
Plywood, Panels
13%
Pulp and Paper
Products
67%
Furniture,
Windows, Doors,
Machinery, Pre-fab
Buildings
14%
Economic Output by Sector
Source: “Economic Benefits of the
Forestry Industry in Georgia:”,by Bill
Riall, Enterprise Innovation Institute,
Georgia Institute of Technology
6. Economic Impact Trends by Sector
30,000
25,000
20,000
15,000
10,000
5,000
-
2004 2005 2006 2007 2008 2009 2010
Source: “Economic Benefits of the
Forestry Industry in Georgia:”,by Bill
Riall, Enterprise Innovation Institute,
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
-
Georgia Note: Output is inflation adjusted to 2010 US dollars Institute of Technology
Employment
Thousands $
Forest Mgt. Output Pulp and Paper Output Lumber & Panels Output
Forest Mgt. Jobs Pulp and Paper Jobs Lumber & Panels Jobs
7. Forest Resource Use Trends in Georgia
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
1995 1997 1999 2001 2003 2005 2007 2009
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
Source: Timber Product Output Reports, Southern Research Station, US Forest Service, 2011
Thousand Green Tons
Softwood
0
1997 1999 2001 2003 2005 2007 2009
Thousand Green Tons
Hardwood
Other Industrial
Posts, poles and pilings
Fuelwood
Composite panels
Pulpwood
Veneer logs
Saw logs
Annual timber utilization ranges from 40 – 50 million green tons.
8. Forest Product Markets Affect Reforestation
60
50
40
30
20
10
0
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
-
$ per green ton
Acres in Tree Planting
CRP Tree Planting
Incentives
Tree Planting Pine sawtimber Pine CNS Pine pulpwood
8
9. Timberland Acreage Through Time in Georgia
21.4
25.8
23.6
24.6 24.4
28
27
26
25
24
23
22
21
20
19
18
1936 1953 1961 1972 1982 1989 1997 2004 2009 2010
Million Acres
Survey Year
10. Top Ten US States in Total Timberland Acreage
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Source: US Forest Service FIA Data 2010
Acres
Private
Public
All ownerships Private ownership
91% of Georgia’s Timberland is private - #1 in the U.S.!
Georgia Timberland
Ownership – 24.4 mil ac
11. Georgia Forest Industry Leads Nation
UGA Forestry
Workshop
Statesboro, GA
April 25, 2012
Nathan McClure
Source: Johnson, et al; The South’s Timber Industry – An Assessment of Timber Product Output, 2009;
Southern Research Station, USFS, 2011.
12. Georgia leads Nation in pulpwood production
Georgia
Alabama
Mississippi
South Carolina
Louisiana
A
A
A
A
A
A
A
A
A
A
A
0 2 4 6 8 10 12
North Carolina
Florida
Arkansas
Virginia
Texas
Tennessee
Kentucky
Oklahoma
Cords (million)
Softwood
Hardwood
State
Pulpwood Production by State and Broad Species, 2011¹
13. All Forest Types Growth, Removals, Mortality
2,250,000,000
1,750,000,000
1,250,000,000
750,000,000
250,000,000
-250,000,000
1983-1989 1989-1997 1997-2004 2005-2010
Net Growth
Removals
Net Gain/Loss
Cubic Feet
Survey Period
14. Georgia’s Forest Volume Growth
Georgia’s forest volume growth is exceeding removals
• 78% more cubic feet of volume than fifty years ago
• Georgia’s Forests Growth exceeds removals by 41%
• Excess growth is 20 million tons / year
15. Bioenergy is Renewable Energy
Georgia Total Energy Consumption
Profile: 2009
Coal
26%
Petroleum
37%
Natural Gas
17%
Nuclear
12%
Solar
0%
Hydro
1%
Wood
5%
Fuel Ethanol
2%
Other
biomass
0%
Wind
0%
Renewable
8%
U. S. Total Energy Consumption Profile:
Coal
21%
Petroleum
Natural Gas
25%
37%
Nuclear
9%
Hydro
3%
Geothermal
0%
Solar
0%
Wind
1%
Biomass
4%
Renewable
8%
2009
16. Bioenergy Drivers
2005 - 2014
Energy Security
Economies of Rural America
Environmental Concerns – primarily
by European Countries
Forestry
Dependency Based
on Employment
24. GFC provides forest resource information
to assist companies with facility location
25. Local Sustainability is the Key
1. Procurement area: < 75 mile
radius
2. Use FIA and TPO data – retrieve
by county and use combined
results
3. Identify specific biomass sources
Timber buyers and loggers
Mills
Land clearing contractors
Landowners
4. Explore possibility of supply
contracts
26. Timberland by Forest Type and Age –
75 mi radius of Cordele
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
0-5
years
6-10
years
11-15
years
16-20
years
21-25
years
26-30
years
31-35
years
36-40
years
41-45
years
46-50
years
51-55
years
Acres
Planted pine Natural pine Oak / pine group
Oak / hickory group Bottomland hardwood Nonstocked
Source: Forest Inventory and Analysis program, US Forest Service, 2011 data
27. Pine Volume Trends by Tree Diameter
75 mi radius of Cordele
1,200,000,000
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
0
Cubic Feet
Wood Volume in Pines by Diameter Class - 75 mile radius Cordele
2002
2005
2008
2011
Source: Forest Inventory and Analysis program, US Forest Service, 2011 data
28. Annual Wood Growth and Removals –
75 mi radius of Cordele
600,000,000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
-
Cubic Feet Wood
Growth
Removals
Difference
27% (4.1 mgt)
21% (2.4 mgt)
Source: Forest Inventory and Analysis program, US Forest Service, 2011 data
29. Documenting Sustainability Through
Forest Certification
American Tree Farm System (1941);
NIPF Landowners
Forest Stewardship Council (1993);
Corporate & NIPF Landowners
Sustainable Forestry Initiative (1995);
Industry Lands and Some Public Lands
30. Opportunities & Challenges – certified forests
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
Acres
Other forestland
ATFS
SFI
FSC
U.S. South
17% “certified”
FSC
1%
SFI
10%
Tree
Farm
6%
Other
Forests
83%
31. Summary
Georgia leads the nation in forest acreage, wood
production, and forest products as a result of
strong infrastructure
Increases in forest wood volume continue with a
slight shift to larger trees
Bioenergy has always been integral to the forest
products industry
Electrical power production and wood pellet
production have recently successfully developed
as a part of our forest products industry
Policy and markets will demand documented
sustainability in the future
