Dryden Forest Management Company (DFMC), is in a very difficult position with the new Forest Tenure and Pricing System proposal from the Ontario government.
Led by Manager, Jack Harrison, DFMC is comprised of a group of loggers, not a single entity such as one mill. DFMC is a small forest management company that runs the Dryden Forest in a very similar way to what the Ontario government is proposing with its crown corporations.
“Right now we do all the forest management planning, all the marketing of the wood, and selling it,” says Harrison. “We don’t think the proposal is good timing, with the economy being down for one thing, and secondly there’s so little detail on it. There are a lot of things that could go wrong”
Some Sustainable Forest Licenses (SFL) are currently held by a single entity, usually a larger mill such as Domtar, and they look after the forest. One of the problems with that is there are a variety of other mills that utilize that forest, some of them being competitors, which tends to lead to problems with wood flow.
“It’s unfortunate that they’re doing it now, because our markets are so low,” reports Harrison. “They want to put in this crown corporation that will be mainly market driven, but there’s no market right now.”
The province wants to conglomerate four to eight forests into one crown corporation, residents feel that would take away any “local” feel or input into the corporation.
The province currently has two initiatives in place. The first is a wood supply competition that was initiated last winter for access to the 11 million cubic metres of unused wood in the region. Those interested in gaining a wood supply commitment were to write a letter of intent to the Ministry, followed by a business plan. This part of the competition ended in March, and the Ministry is now going through the six-month process of selecting who will receive a wood supply commitment.
The wood supply commitments would assist many of the smaller and newer operations that the Tenure Proposal is attempting to encompass. The problem is, one level of the Ontario government is offering a wood supply competition, and another is saying they want to take it all away.
“Who’s going to invest and put money into it, when the province is going to change the game and you now have to compete for wood and you don’t know if you’ll be able to survive,” speculates Harrison.
The second initiative currently in place is the Co-op program. Single entities are being turned into co-op’s to run the forests, and everyone is getting the wood that they need. By changing to the proposed tenure plan, it will eliminate all the work that the co-op partnerships just went through, and give it all to a crown corporation.
“Private industry has managed all the forestry, basically forever, and now you want to take that and give it to a government,” laments Harrison. “Put this on hold and think about it, but finish the wood supply competition, give them wood supply commitments so they can invest in Ontario, finish the co-op process so they don’t have mills fighting over wood, and that will solve 90 per cent of the problems.”
“This tendered sales happened in the 70’s, and it was a big disaster,” says Harrison. “A lot of new entrants tried to come in and bid high to get the wood, but they didn’t know how to log, so they ended up going broke, and the local people didn’t end up getting the wood.”
- Ally Dunham