Forests play a key role in the earth's climate as such it is very important for countries around the world to develop sustainable forestry management practices.
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Forestry and Tree Planting| What is next
1. What is happening to World’s forest?
Paul Young CPA CGA
August 4, 2020
2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting, Public
Finance and Advanced Management
Systems
Contact information:
Paul_Young_CGA@Hotmail.com
3. Introduction
• Canada forestry sector is key sector to the Canadian Economy
• Canada forestry sector has faced protectionism policies -
https://www.canadianmanufacturing.com/financing/canfor-to-
curtail-operations-at-all-but-one-of-its-sawmills-in-british-columbia-
234114/
• The federal government under Justin Trudeau has done little to
support the forestry sector.
• Forest Management world-wide crisis
• Need for better urban planning
4. Agenda
• Commodity Prices
• Global Housing Market outlook
• Housing Starts – North America
• Merchandise Trade
• Wages / Forestry Sector
• Employment
• Issues facing Forestry
• Justin Trudeau and the Forestry Sector
• Technology and Forestry Sector
• West Fraser and Forestry
• Carbon Sink
• Government Cutbacks and Audits
• Global deforestation
• Poor urban planning
• Eco-Terrorism
• Automation / Forestry Management
• Siberia
• What’s next
5. Commodity Prices
Source - https://www.scotiabank.com/ca/en/about/global-economics/commodity-price-index.html or
“Softwood lumber prices slowly recover from
recent lows: May 2019”
Source - https://www.woodbusiness.ca/softwood-
lumber-prices-slowly-recover-from-recent-lows-
may-2019/
Source
https://us.spindices.com/indices/
commodities/sp-gsci
6. Global Housing Outlook
Source - https://www.telegraph.co.uk/business/2019/05/16/global-
property-boom-house-prices-hit-breaking-point/
10. Forestry Sector (Wages)
Source - https://www.livingin-canada.com/salaries-for-forestry-professionals-canada.html or
https://www150.statcan.gc.ca/n1/daily-quotidien/190530/dq190530a-eng.htm
Average wages annually $52,800/year
• Forestry Sector pays between 25% to
70% higher wages than the service
sector
• Forestry sector personal income tax
ranges are between 35% to 40%
12. Issue facing Forestry
• Softwood Lumber dispute - https://www.bnnbloomberg.ca/economics/video/overall-impact-of-softwood-lumber-
dispute-minimal-for-canada-economist~1108540 or https://www.globalwoodmarketsinfo.com/canada-has-filed-appeal-
against-wtos-april-ruling-in-softwood-lumber-dispute-with-us/
• Carbon Tax – Carbon tax is added on to the cost of production
https://www.bnnbloomberg.ca/commodities/video/applying-carbon-tax-without-cutting-back-regulations-may-be-
costly-jack-mintz~1649746
• High stumpage cost - https://www.timescolonist.com/business/teal-jones-shuts-down-logging-in-honeymoon-bay-citing-
high-log-costs-1.23841024
• Hydro Rates - https://www.drydennow.com/local/rickford-aims-to-cut-costs-for-forestry-sector
• Excessive regulations - http://www.chamber.ca/media/news-releases/Canada-competiveness-ranking-drops-4-spots-in-
2-years/
• Small business tax reforms - https://www.bnnbloomberg.ca/economics/video/cfib-concerned-by-potential-tax-hits-to-
small-businesses-in-2019~1560874
• Forestry losses - https://www.wri.org/blog/2020/06/global-tree-cover-loss-data-2019
13. Justin Trudeau and Forestry Sector
Source - https://www.sudbury.com/letters-to-the-editor/forest-industry-isnt-a-
priority-for-justin-trudeau-679008
“My predecessor wanted you
to know Canada for its
resources. I want you to know
Canadians for our
resourcefulness,” he said.
“Pulp and paper workers ask Trudeau to
fight for their jobs
”Source - https://unifor.org/en/whats-
new/news/pulp-and-paper-workers-ask-
trudeau-fight-their-jobs
Source – April 13, 2018
14. Technology / Forestry Sector
Source - https://www.woodbusiness.ca/how-technology-is-transforming-bcs-forest-industry-
5248/
• Investment into new technologies is revolutionizing the way Canada’s forest industry does business.
The federal government reports between 2005 and 2015, Canada’s forest industry cut its total energy use
by 31 per cent and reduced its greenhouse gas emissions by 49 per cent by generating bioenergy from
waste products and increasing energy efficiency.
• AI and Forestry - https://www.weforum.org/agenda/2018/09/ai-can-help-us-map-forests-down-to-
each-tree/
• Automation - https://www.woodbusiness.ca/fully-automated-applying-robotic-solutions-to-the-
sawmill/
• Supply Chain/Digital = https://www.poyry.com/news/articles/how-will-digitalisation-boost-
forestry-operations
• Analytics and Forestry Management - https://www.ibmbigdatahub.com/tag/6399
19. Poor Urban Planning
• Governments around the world need to re-
think urban planning -
https://www.slideshare.net/paulyoungcga
/urban-planning-issues-facing-urban-
planners-april-2019 or
https://www.slideshare.net/paulyoungcga
/urban-and-rural-planning-whats-next
20. Eco-Terrorism and other ignition points
There has been a rise in eco-terrorism
• Australia bushfires - https://www.bbc.com/news/world-australia-50568026
• BC Wildfires - https://vancouversun.com/news/local-news/rcmp-say-arson-behind-29-okanagan-
wildfires-over-last-four-years
• Amazon - https://www.washingtonpost.com/world/the_americas/arsonists-are-torching-the-
amazon-this-elite-team-of-firefighters-stands-in-their-way/2019/10/08/525330f4-d8a8-11e9-a688-
303693fb4b0b_story.html
• California Appl Fire caused by a poorly maintained car -
https://www.mercurynews.com/2020/08/04/apple-fire-at-26450-acres-relief-crews-for-weary-
firefighters-arriving/
• Oregon Fires - https://ktvz.com/news/fire/2020/07/28/three-suspicious-la-pine-area-wildfires-
investigated-as-arson-tips-sought/
Source - https://www.slideshare.net/paulyoungcga/is-the-world-headed-to-more-ecoterrorism
21. Forestry Fires
Fire was purposely set/Eco-Terrorism
San Jose Fire/Cal Fire
Power Lines
Balloon collides with power line that sent sparks to
the ground
• Mitigation
• More insulation of wires - https://energized.edison.com/stories/insulated-wires-help-reduce-wildfire-
risk
• Use of AI and Data Analytics in terms of forest prevention/detection
22. Governmen
t Cutbacks
/
Environme
nt/ Audits
• Could it be the cuts in key areas along with poor urban planning makes the narrative for the govt
look good in terms pro climate change?
https://www.slideshare.net/paulyoungcga/urban-planning-issues-facing-urban-planners-april-
2019 or https://www.slideshare.net/paulyoungcga/forest-management-practices-world-april-2019
or https://www.slideshare.net/paulyoungcga/environment-canada-whats-next
• Lack of a flood map - https://www.insurancebusinessmag.com/ca/opinion/updated-flood-maps-
coming-to-canada-78259.aspx
• Rail and Fire - https://www.cbc.ca/news/canada/sudbury/ontario-government-sues-cn-rail-for-
millions-in-firefighting-costs-1.2927083?fbclid=IwAR2_hehuCPiCxUrKa16hfbVhf1JXOT-
tkwRrNNTZwPu8FFnUxgVVLYx3198
• Parks Canada - https://www.hellulandnews.com/science/2017/8/21/the-failure-of-parks-canada
• Budget cuts – Feds - https://nationalpost.com/news/politics/federal-government-cutting-back-on-
disaster-assistance-as-floods-become-more-severe
• PQ Floods = https://www.theglobeandmail.com/news/national/quebec-floods-recede-but-
competing-demands-fill-prevention-debate/article34981361/
• Wildfire mgmt. https://edmontonjournal.com/news/politics/alberta-premier-rachel-notley-
defends-cut-in-wildfire-budget
• Auditor/Tree planting - https://globalnews.ca/news/5201294/ontario-government-cancels-tree-
planting-
program/beta/?utm_expid=.kz0UD5JkQOCo6yMqxGqECg.1&utm_referrer=https%3A%2F%2Fww
w.google.com%2F “A spokeswoman for Natural Resources and Forestry Minister John
Yakabuski said the government is committed to balancing the budget in a responsible
manner. Justine Lewkowicz said in a statement that the forestry industry, which depends on a
sustainable supply of wood, is a responsible steward of the province’s forests. On average, the
forestry industry plants 68 million trees per year, creating jobs for foresters, nurseries, and
tree planters,” she wrote.” – This was make work project that never generated the benefits
23. Automation
• Using drones to plant trees - https://www.nextbigfuture.com/2020/06/flash-
forest-and-tree-planting-with-
drones.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed
%3A+blogspot%2Fadvancednano+%28nextbigfuture%29
• Innovation / planting - https://www.fastcompany.com/90504789/these-drones-
can-plant-40000-trees-in-a-month-by-2028-theyll-have-planted-1-billion
• Tree Planting / Drones -
https://www.standard.co.uk/news/world/treeplanting-drones-could-help-
restore-world-s-forests-a4116376.html
24. Canada Boreal Forest
• Canada’s boreal forest make up 9% of the world forest -
https://www.nrcan.gc.ca/our-natural-resources/forests-
forestry/how-much-forest-does-canada-have/17601
26. Audits
• Significant financial-control weaknesses / NS Forestry and Land -
https://globalnews.ca/news/6095967/nova-scotia-auditor-general-financial-
report/
• Forestry Management / City of Toronto -
https://globalnews.ca/news/5221912/toronto-forestry-crews-audit/
• Audit – Clear Cut and Water Management - https://thenarwhal.ca/muddied-
waters-how-clearcut-logging-is-driving-a-water-crisis-in-b-c-s-interior/
• Tree planning / Corporations -
https://www.terracestandard.com/news/skeena-sawmills-in-terrace-contracts-
local-firms-for-2020-reforestation-projects/
27. What’s next
• All level of governments need to work on integrated strategy for Forestry including streamlining regulations, tax
fairness, hydro, fees, etc. - https://www.slideshare.net/paulyoungcga/2019-election-canada-and-global-
competitiveness-may-2019
• Next government needs to push for reforms at WTO including a better dispute mechanism, reduction in
protectionism policies, etc. - https://www.slideshare.net/paulyoungcga/why-do-we-need-the-wto
• The next government needs to stop looking for ways to tax business, i.e. carbon tax or plastic tax or other taxes. –
There is a need to reform government - https://www.slideshare.net/paulyoungcga/how-to-reform-local-and-
municipal-government
• More balance to support natural resources in a sustainable way - GDP growth pre-COVID was running at 2.0%
which is about the same rate as the past 20 years - https://www.slideshare.net/paulyoungcga/canada-slow-growth-
liberal-party-of-canada-december-7-2016 Trudeau introduce policies that did little to get goods to market or support
small business - https://www.slideshare.net/paulyoungcga/canada-whats-next-for-small-business or
https://www.slideshare.net/paulyoungcga/canada-natural-resources-sector-whats-next
• The next government needs to focus on port expansion as part of supporting getting goods to market.
• Climate activism focus on the worse scenarios to push their agenda -
https://www.slideshare.net/paulyoungcga/canada-clean-technolgy-and-the-green-economy or
https://www.slideshare.net/paulyoungcga/the-real-truth-about-emissions-and-carbon-taxation
• All Governments need to re-look at their forest management practices - https://www.pewtrusts.org/en/research-
and-analysis/reports/2020/05/how-states-pay-for-natural-disasters-in-an-era-of-rising-costs
Editor's Notes
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