Forestry in Georgia:
Industry and Resources
Georgia’s Forests and Forest
Industry Status

Chestatee/Chattahoochee RC&D
Cla...
Outline
I.
II.
III.

Description of Georgia’s Forest - Quantitative
UGA Forestry
Workshop
Overview of the Forest Industry
...
Georgia’s Forests Are Diverse
Top Ten States - Timberland
30,000,000

All Timberland

Private
Acres

Acres

25,000,000
20,000,000
15,000,000
10,000,000
...
Georgia Timberland has Remained Stable
for 60 years
25.0

Million Acres

20.0

15.0

10.0

5.0

0.0

Source: Forest Invent...
Georgia Timberland by Forest Type and Age
(thousand acres)
Oak/hickory
6,275.5
26%

3500
Oak/pine
2,763.8
11%

Thousand Ac...
Wood Inventory on Georgia Timberlands
(million cubic feet)
Hard
hardwood
10,378
25%

4,000

Other
softwood
1,311
3%

3,500...
Georgia’s Forest
45,000

2,500
2,000

40,000

+20 mil tons
per year

35,000

1,500
1,000

MMCF

MMCF

30,000

Growth
Remov...
Forest Biomass Supply – Excess Pine Volume is
Shifting to Large DBH Trees
120
100

Pines <10” dbh
2002 – 2012
-5 mil tons
...
The Business of Forestry –
Forest Resource Supply Chain
HAULING
LOGGING
MILL
FOREST
CONSULTANT

Long-term wood
supply agre...
Georgia
Supports a
Strong and
Growing Forest
Products
Industry

85 sawmills
12 pulp mills
15 post & pole
8 panel mills
46 ...
NE Georgia
Primary Forest
Product Mills
Timber Utilization for Products in Georgia 2011
800,000
700,000

Hardwood

600,000

Softwood

TCF

500,000
400,000
300,000...
Georgia Forest Industry Leads Nation

Annual timber utilization ranges from 40 -50
million tons
Source: Johnson, et al; Th...
Forest
Title Products Manufacturing is the Second
Largest Industry in Georgia
$25 Billion Output
35,000

250,000
200,000

...
Forestry Economic Impact by Region

Regions

Output

($ mil)
Three Rivers
882
SW Georgia
1,093
Southern Georgia 1,277
Rive...
Economic Benefits are Dependent on the Forests
and Rural Communities
Impacts from Forest Management Operations
6.1 jobs fo...
Outlook of U. S. Consumption and Production of
Paper Products (mil metric tons)
Consumption Newsprint

Production – All
Pa...
500

Jan 2004
May 2004
Sep 2004
Jan 2005
May 2005
Sep 2005
Jan 2006
May 2006
Sep 2006
Jan 2007
May 2007
Sep 2007
Jan 2008
...
Outlook for Sawtimber - Canadian Lumber
Production Could Be Declining
Extent of Mountain Pine
Beetle Infestation: 2011

25...
Outlook of U. S. Production of other Wood
Products (mil cubic meters)

Sawnwood
(lumber)

Log Exports

Panels & Veneer

So...
Bioenergy / Wood Pellet Expected Growth –
Annual Expected EU Imports
15.7 mmt

2.4 mmt

SE US
> 6 mmt

Source: Cocchi, M. ...
Forest Bioenergy in Georgia
Currently operating
 4 large pellet mills
 5 smaller pellet mills
 2 stand-alone bio-power
...
Forestry in Georgia:
Carbon Emission Offsets
Industry and Resources
1 acre of sustainable forests managed for wood
constru...
Ecosystem Services and
Ecological Functions of
Georgia’s Forests

Delivers

$37.6 Billion
In value to 9 million citizens
S...
Forestry in Georgia:
Market-Based Sustainability
Industry and Resources
Decision to
Retain Forests

Products &
Economic
Be...
Nathan McClure RF CF
1-(478)951-4548
nmcclure@gfc.state.ga.us

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Forest Action Plan... Forest Utilization, McClure

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  • Georgia has over 24 million acres of timberland, which is highest in the US (Oregon is very close to the same). 91% of this timberland is privately owned and Georgia has the most privately owned timberland than any other State.The majority, or 56%, of Georgia’s timberland is owned by private individuals. Corporations, such as “timber investment management organizations” own 25% and the forest industry owns 10%.
  • Smaller diameter trees are growing into larger diameter trees.Trend is more sawtimber volume than utilization capacity for pine and less in small diameter trees.Recommend a supply chain that involves mill residues and small diameter trees.
  • Smaller diameter trees are growing into larger diameter trees.Trend is more sawtimber volume than utilization capacity for pine and less in small diameter trees.Recommend a supply chain that involves mill residues and small diameter trees.
  • Forest products are a major part of the SE Georgia community.
  • Forestry is the 2nd largest industry in Georgia, Food processing is the largest. The recent trend in impacts is shown. The red bars show impact in real dollars, the blue line include the number of jobs.
  • Projections from the USFS Forest Products lab economist work using economic forecasting models. This is for US pulp and paper. Newsprint and writing paper will have declines in consumption. Production of all paper products (liner board, tissue, writing, and newsprint) combined will actually be stable or increase slightly through 2060.
  • Outlook for housing starts is positive, as recent increases have been made.
  • Damage from the mountain pine beetle and other concerns have resulted in lower forecasts of lumber production in British Columbia (a major SW lumber producer). This will effect markets and production for other locations.
  • USFS economist projections using economic models: lumber and panels expected to have significant increases in production. Log exports from the US are expected to increase substantially. Large inventories of SYP timber combined with expected increases in production will result in moderate price increases in sawtimber. Units are cubic meters. $36 per cubic meter approximately equals $30 per ton.
  • International Energy Agency proposes two market scenarios. The more conservative prediction is shown in the graph, which indicates that European pellet imports will grow from 2.4 mil tons to 15.7 million tons per year and that over 6 million tons per year will come from the SE US. This equals a market for 12 million green US tons of wood in the SE. Georgia currently has a capacity of about 1.2 million tons per year.
  • A first of its kind, 3 year research project completed by the UGA DB Warnell School of Natural Resources and funded by numerous partners through the Georgia Forestry Foundation determined that Georgia’s 22 million acres of privately owned forests provides $37.6 Billion in environmental values Georgia’s 9 million citizens.
  • Forest Action Plan... Forest Utilization, McClure

    1. 1. Forestry in Georgia: Industry and Resources Georgia’s Forests and Forest Industry Status Chestatee/Chattahoochee RC&D Clayton, Georgia October 30, 2013 Nathan McClure Georgia Forestry Commission 1-800-GA-TREES www.gatrees.org 1
    2. 2. Outline I. II. III. Description of Georgia’s Forest - Quantitative UGA Forestry Workshop Overview of the Forest Industry Statesboro, GA Outlook for Forest Products April 25, 2012 Nathan McClure
    3. 3. Georgia’s Forests Are Diverse
    4. 4. Top Ten States - Timberland 30,000,000 All Timberland Private Acres Acres 25,000,000 20,000,000 15,000,000 10,000,000 Private 5,000,000 Public 0 Corporate 6,603,500 27% Industry 1,894,000 8% Federal unreserved 1,353,300 5% Federal reserved 427,300 2% Georgia Forestland Ownership – 24.8 mil ac Local Govt, 325,4 00 , 1% NIPF 13,712,500 55% State 435,700 2% Source: US Forest Service FIA Data, 2012
    5. 5. Georgia Timberland has Remained Stable for 60 years 25.0 Million Acres 20.0 15.0 10.0 5.0 0.0 Source: Forest Inventory and Analysis program, US Forest Service, 2011 data
    6. 6. Georgia Timberland by Forest Type and Age (thousand acres) Oak/hickory 6,275.5 26% 3500 Oak/pine 2,763.8 11% Thousand Acres 3000 Other 124.4 0% Non-stocked 275.2 1% Planted pine 6,944.2 29% 2500 2000 Natural pine 4,133.4 17% 1500 1000 Lowland Hardwood 3807.8 16% 500 0 Stand Age Pine Oak/pine Oak/hickory Bottomland Hardwood Other Misc Source: Forest Inventory and Analysis Program, Southern Research Station, US Forest Service, 2012 data
    7. 7. Wood Inventory on Georgia Timberlands (million cubic feet) Hard hardwood 10,378 25% 4,000 Other softwood 1,311 3% 3,500 3,000 2,500 MMCF Soft hardwood 10,442 25% 2,000 1,500 Yellow pine 19,461 47% 1,000 500 - Tree DBH Yellow pine Other softwood Hard hardwood Soft hardwood Source: Forest Inventory and Analysis Program, Southern Research Station, US Forest Service, 2012 data
    8. 8. Georgia’s Forest 45,000 2,500 2,000 40,000 +20 mil tons per year 35,000 1,500 1,000 MMCF MMCF 30,000 Growth Removals 500 25,000 20,000 15,000 10,000 5,000 - - Source: Forest Inventory and Analysis Program, Southern Research Station, US Forest Service, 2012 data
    9. 9. Forest Biomass Supply – Excess Pine Volume is Shifting to Large DBH Trees 120 100 Pines <10” dbh 2002 – 2012 -5 mil tons -6% Pines > 10” dbh 2002 – 2012 + 93 mil tons +29% Million Green Tons 2002 2003 80 2004 2005 60 2006 2007 40 2008 2009 20 2010 2011 2012 0 5.0– 7.0– 9.0– 11.0– 13.0– 15.0– 17.0– 19.0– 21.0– 25.0– 29.0– 33.0– 6.9 8.9 10.9 12.9 14.9 16.9 18.9 20.9 24.9 28.9 32.9 36.9 Tree Diameter (inches) Source: Forest Inventory and Analysis program, US Forest Service, 2012 data
    10. 10. The Business of Forestry – Forest Resource Supply Chain HAULING LOGGING MILL FOREST CONSULTANT Long-term wood supply agreement Product A MILL FOREST LANDOWNER WOOD DEALER Product B MILL LOGGING HAULING Product C MILL Product D
    11. 11. Georgia Supports a Strong and Growing Forest Products Industry 85 sawmills 12 pulp mills 15 post & pole 8 panel mills 46 other mills
    12. 12. NE Georgia Primary Forest Product Mills
    13. 13. Timber Utilization for Products in Georgia 2011 800,000 700,000 Hardwood 600,000 Softwood TCF 500,000 400,000 300,000 200,000 100,000 0 Pulpwood Sawlogs Plywood & VeneerOther All Hardwood 182,012 15% Softwood 1,038,212 85% Source: Bentley, James; TPO report, SRS US Forest Service
    14. 14. Georgia Forest Industry Leads Nation Annual timber utilization ranges from 40 -50 million tons Source: Johnson, et al; The South’s Timber Industry – An Assessment of Timber Product Output, 2009; Southern Research Station, USFS, 2011.
    15. 15. Forest Title Products Manufacturing is the Second Largest Industry in Georgia $25 Billion Output 35,000 250,000 200,000 25,000 20,000 150,000 15,000 100,000 Jobs US $ Million 30,000 10,000 50,000 5,000 - - Output +487 mil to state govt 118,459 jobs Employment Source: “Economic Benefits of the Forestry Industry in Georgia:”,by Enterprise Innovation Institute, Georgia Institute of Technology
    16. 16. Forestry Economic Impact by Region Regions Output ($ mil) Three Rivers 882 SW Georgia 1,093 Southern Georgia 1,277 River Valley 738 NW Georgia 1,425 NE Georgia 732 Middle Georgia 941 Heart of Georgia 1,461 Mountains 697 Coastal 1,396 CSRA 1,234 ARC 3,205 Jobs Compensation # 2,713 3,362 3,927 2,268 4,383 2,252 2,892 4,493 2,143 4,294 3,795 9,855 ($ mil) 174 215 252 145 281 144 185 288 137 275 243 632
    17. 17. Economic Benefits are Dependent on the Forests and Rural Communities Impacts from Forest Management Operations 6.1 jobs for every 1,000 acres of working forests1 1 new job in forest management and harvesting for every 7,000 tons of wood 1Wan, Y. and Fiery, M; The Economic Impacts of Privately Owned Forests in the United States; Forest 2 Market; 2013; http://nafoalliance.org/economic-impact-report/
    18. 18. Outlook of U. S. Consumption and Production of Paper Products (mil metric tons) Consumption Newsprint Production – All Paper & Paperboard Consumption – Writing & Printing Source: Ince, Peter J.; Nepal, Prakash. 2012. Effects on U.S. timber outlook of recent economic recession…. USDA Forest Service, Forest Products Laboratory.
    19. 19. 500 Jan 2004 May 2004 Sep 2004 Jan 2005 May 2005 Sep 2005 Jan 2006 May 2006 Sep 2006 Jan 2007 May 2007 Sep 2007 Jan 2008 May 2008 Sep 2008 Jan 2009 May 2009 Sep 2009 Jan 2010 May 2010 Sep 2010 Jan 2011 May 2011 Sep 2011 Jan 2012 May 2012 Sep 2012 Jan 2013 May 2013 Housing x 1,000 Outlook for Sawtimber Housing Starts on the Rise 2,500 2,273,000 2,000 1,500 March 2013 1,005,000 1,000 478,000 0
    20. 20. Outlook for Sawtimber - Canadian Lumber Production Could Be Declining Extent of Mountain Pine Beetle Infestation: 2011 25% Source: Nussbaum, A.; British Columbia Ministry of Forests, Lands and Natural Resources, 2012
    21. 21. Outlook of U. S. Production of other Wood Products (mil cubic meters) Sawnwood (lumber) Log Exports Panels & Veneer Southern Pine ST Stumpage ($/m3) Source: Ince, Peter J.; Nepal, Prakash. 2012. Effects on U.S. timber outlook of recent economic recession…. USDA Forest Service, Forest Products
    22. 22. Bioenergy / Wood Pellet Expected Growth – Annual Expected EU Imports 15.7 mmt 2.4 mmt SE US > 6 mmt Source: Cocchi, M. Global Wood Market Bioenergy Trade Study, IEA Bioenergy, 2011
    23. 23. Forest Bioenergy in Georgia Currently operating  4 large pellet mills  5 smaller pellet mills  2 stand-alone bio-power generators  2 advanced biofuels R & D facilities Planned   5 large pellet mills 6 bio-power generators
    24. 24. Forestry in Georgia: Carbon Emission Offsets Industry and Resources 1 acre of sustainable forests managed for wood construction products offsets the average emissions from two autos each year… Lippke et al; Comparing Lifecycle Carbon…; Forest Products Journal 62(4); 2012 = 24
    25. 25. Ecosystem Services and Ecological Functions of Georgia’s Forests Delivers $37.6 Billion In value to 9 million citizens Source: Moore, r. et al; Georgia Forestry Association, 2011
    26. 26. Forestry in Georgia: Market-Based Sustainability Industry and Resources Decision to Retain Forests Products & Economic Benefits Reforestation Forest Care & Mgt. Ecosystem Services 26
    27. 27. Nathan McClure RF CF 1-(478)951-4548 nmcclure@gfc.state.ga.us 27

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