Softwood log exports and the value and employment issues /

Abstract

Direct employment per thousand board feet of logs processed is higher in domestic lumber and veneer and plywood industries than in the log export industry. Relative product values and indirect effects of domestic and export markets vary over time. Success of policies to maximize trade offs between markets is not certain because responses of industry members to changes in policies are uncertain.

The impact of the export and import of raw logs on domestic timber supplies and prices.

“…Supplies and prices of domestic timber are only two of the concerns that have been raised in public discussions of policy on softwood-10g export. Other concerns are discussed in Hamilton (1971) and Darr (1975Darr ( , 1977 Cycles in housing starts and other end uses for lumber and plywood are reflected in cycles in lumber and plywood prices. Changes in end-product prices resulting from changes in demand are transmitted back to the timberresource base to interact with timber supplies to determine timber prices.…”

The rise and fall of the Pacific Northwest log export market.

“…The U.S. domestic log market did not demand high-quality stumpage materials, which helps explain why high-quality logs were diverted into the export market. Darr (1975a) found that log export volume was concentrated in the No. 2 and better saw log grades, whereas domestic sales were concentrated in the No.…”

“…Many communities in the Pacific Northwest relied almost solely on timber harvesting and manufacturing of wood products for economic well-being, especially in rural areas where the local mill may be the only employer. Changes in log availability or market demand have a direct impact on economies with few alternative industries (Darr 1975a). Residents feared that overseas importers would divert large volumes away from domestic mills, causing mill closures and regional unemployment.…”

“…In addition, because Japan had abundant and low-cost labor, real wages in Japan were far below those in the United States in the 1960s; labor availability and wages were not limiting factors in production (Flora et al 1993). Japan's advantage in labor-intensive wood processing meant they were better served by importing raw materials than finished products, resulting in log export stumpage price premiums enjoyed by PNW forest landowners for decades (Darr 1975a, Darr et al1980, Flora et al 1993, Hamilton 1971, Wiseman and Sedjo 1981). …”

“…Discussion of log export trade policies at the community level focused on implications for employment, value, and community stability. Darr (1975a) the lumber producing sector versus the paper producing sector. Although log exports brought fewer direct employment opportunities, higher values obtained for stumpage in the export market were a boost to rural economies.…”