Volume 2, Issue 6 June, 2004

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President's Memo
Kelly Hartman, Dunkley Lumber Company is Crowned 2004 Lumber Grading Champion
New Market Studies Available from COFI Market Access and Trade Group
COFI South Forest Education News
Forest Expo 2004 a Resounding Success
Forest Educator Gets "The Boot"!!
Softwood Lumber Trade Update
Forest Fire Prevention Campaign
Top Academic Students Learn About Careers in Resource Management
Kelowna Community Dinner - May 26, 2004

Next COFI Board Meeting:
June 29, 2004, Fairmont Vancouver Airport Hotel


Upcoming COFI Events

COFI Board Meeting

September 16, 2004
Prince George




As we head into the summer months, the pace of work shows no sign of slowing down. This stems from the fact that we are now largely into implementation issues flowing from the Forest Revitalization Plan and I expect we will be returning to timber pricing issues very soon.

My sense is that we have developed a positive working relationship with government officials as we jointly work on operational details (that place where the devil resides!).

However, I do want to highlight specifically one very important issue - forest worker safety. There is no question that our injury and death rates are far too high and in this regard the January 2004 report of the Forest Safety Task Force makes a number of substantial recommendations aimed at improving this situation. Our collective challenge now is to translate words into action.

I am pleased to advise you that COFI is committed to active and full participation in implementation of the recommendations of the Task Force to assist in the delivery of an effective and efficient program that is making a difference. We will of course inform you of further details.

Please have a safe and wonderful summer.



John Allan



Kelowna, BC - Close to 100 of the top lumber graders from across the BC interior competed in the 40th Annual BC Interior Lumber Grading Championship staged in Kelowna on May 29. Kelly Hartman of Dunkley Lumber Company, Strathnaver, BC took home the top spot as the Champion Lumber Grader for 2004.

"The Council of Forest Industries (COFI) member company graders once again dominated the competition" said Gary Desrosier, COFI's Quality Control Manager, "not only did we take first place but also second place with Pope and Talbot, Castlegar Division's Mario Masini." Masini was less than 1 percent behind the winner.

Graders from COFI member companies secured seven of the top ten positions.

Graders from COFI member companies swept the awards in the "Champion of Champions Division" (past winners) as Wayne Ransom of Pope and Talbot, Castlegar Division took first place along with a cheque for $700. Balbir Nagra of Abitibi Consolidated, Mackenzie was a close second and was awarded $350.

In the "First Year Division", Ian Ferrier of Pope and Talbot, Midway Division and Charanjit Behniwal of Riverside Forest Products, Williams Lake placed second and third behind PLIB's Steven Brown of Tolko - Lavington Div.

"We knew we had a very tough act to follow this year after sweeping the top ten positions at last year's competition in Kamloops", added Desrosier. "To return with seven of the top ten positions this year is an excellent accomplishment. It is the fourth consecutive year that the first place winner was from a COFI member company.

We are extremely proud of our education program and these results are just icing on the cake", said Desrosier.

For more information contact Gary Desrosier, Quality Control Manager by e-mail: desrosier@cofi.org or by phone: (250) 860-9663


New Market Studies Available from COFI Market Access and Trade Group

COFI's Market Access and Trade group has recently completed a number of market studies:

China: Opportunities for wood roof systems

China: Opportunities for the use of solid wood products in traditional structures and applications

China: Market opportunities for wood-frame construction (Growth projections and comparative cost analysis)

China: Wood-Frame Housing Quality Assurance Program

Taiwan: Cost Comparison: Wood-frame vs. traditional construction

South Korea: Opportunities and prospects for the use of wood in residential and non-residential construction (light wood frame, heavy timber, wood building components)

For more detailed information go the Market Access and Trade e-newsletter:
http://www.cofi.org/canadawood/
newsletter/2004_may/may2004.
htm#005


or contact Wayne Iverson
by e-mail: Iversen@cofi.org
or by phone: (604) 891-1216.



Forest education in the Southern Interior has been active in the past weeks in both the Okanagan and Kootenays.

COFI Forest Education hosted the Interior Logging Association forest education van recently at two events in Kelowna - Family Environment Day and Arbour Day. The van was a popular attraction, as always, and was toured by numerous student groups and families.

Accompanied by the COFI south forest education coordinator, post-secondary recruiters from Selkirk and UCC travelled through the Okanagan and Kootenays at the end of April, visiting secondary schools to inform students about their programs in Forestry, Natural Resource Science, Environmental Tech and Recreation, Fish and Wildlife, and encouraging students to consider industry-related choices in their university or college selections.

As part of a National Forest Week project, Okanagan forest educators Jeannie Steele and Deb Sluggett created instructional resources for primary, intermediate and secondary ages to teach students about fire behavior and fire safety with resource and financial support from COFI. Teaching kits were then distributed to teacher librarians across the southern interior and have been well-received as a worthwhile new resource on a timely topic.

An exhibit being developed by the Okanagan Nature Center in Kelowna, titled "The Nature of Fire", received financial support from COFI for their project. Long-term plans are for sections of the exhibit to go on tour following the summer season to southern interior communities.

As part of COFI's goal to expand the network of forest educators in the southern interior, thereby delivering a more comprehensive, efficient forest education program, meetings have been held with companies in the Cariboo and the Kootenays. Interviews will be conducted in Williams Lake in June with plans to have an educator in place for the upcoming school year, while the East and West Kootenays have begun initial discussions on this issue.

For more information contact:

Debbie Bazett by e-mail: bazett@cofi.org or by phone:
(250) 860-9663


Premier Campbell visits COFI exhibit staffed by Bev Schroeder


Jan Ball provides forestry information to delegates


Forestry Vice President, Peter Affleck, addresses Thursday's Expo luncheon

On June 2nd Forest Expo 2004 opened in Prince George to record attendance from both exhibitors and visitors. Already Canada's top forest industry show, Forest Expo's international reputation continues to grow welcoming increasing participation this year from Europe and as far away as New Zealand. This biennial event showcases new equipment and technologies for loggers, truckers, woods workers and small scale value-added mill operators against a backdrop of "innovation in action" equipment demonstrations. In addition to the standard forestry seminars, tours and loggers sports events this year the expo was complemented by a Bio Energy Conference.

The Council of Forest Industries was a presence among the more than 300 exhibitors at Forest Expo. The COFI booth attracted a wide audience with the large modern backdrop display, educational materials used in classrooms, pamphlets, and slide shows depicting forest history and up-to-date forest facts. COFI staff provided information on COFI's key priorities: forestry, forest education, lumber quality control, and market access and development.

One of the highlights of the show was the June 3rd luncheon featuring Peter Affleck as the speaker. The audience was among the first to learn that the US Department of Commerce cut its tariffs in half. Peter also spoke about the state of the forest industry, the external factors affecting us, and forest revitalization. "Every day in BC, $50 million of wealth is generated by the forest industry" said Peter.

Premier Campbell was the Friday luncheon speaker. The Premier was also able to enjoy a 45 minute tour of the Expo accompanied by northern VP Doug Routledge.

For more information contact Jan Ball by e-mail: ball@cofi.org or by phone: (250) 564-5136



Forest educator Jeannie Steele was recently honoured at the COFI Community Leaders' Dinner in Kelowna for her significant contribution to the forest industry, specifically in the area of forest education. What follows is an excerpt from the presentation on that evening:

"Bringing her boundless energy, enthusiasm and creativity to her position as educational liaison for Riverside Forest Products, Jeannie Steele has worked tirelessly to make her vision of forest education a reality over the past decade.

From career fairs, Pro Days and National Forest Week projects to developing instructional units, resources and presentations, she has used her knowledge of forestry and her skills in teaching to educate countless students, teachers and members of the public about the industry.

Jeannie's network of forest professionals has included representatives from many areas, including the forest ministry, consultants, specialists, retirees and company woodlands personnel, who willingly participated in her events by sharing their expertise.

Her motto - "the cost of education is less than the price of ignorance"- has truly been exemplified during her career as a forest educator, for she leaves behind a legacy of informed individuals who will pass their knowledge onto future generations, as well as forest educators who will continue to promote her vision of forest education in the years ahead.

Jeannie, you have been an inspiration to those of us in the Association. We, along with the industry, will miss you and we all hope that you enjoy and enthusiastically embrace your retirement as much as you have your career in education."

Following these words, Jeannie was asked to step forward to accept her gift. To her surprise and amusement, it was a carved wooden workboot (created by a Castlegar artisan) that she had previously admired at the ILA conference.

While Jeannie might have received "the boot", she is staying on for the time being in an advisory role. Besides, her shoes are far too big for any one person to fill quite yet!!

For more information contact: Debbie Bazett by e-mail: bazett@cofi.org
or by phone: (250) 860-9663


1. International Trade Commission (ITC)

On May 27, 2004, the ITC responded to the NAFTA Panel on "Threat of Injury" with a Request for Reconsideration. In response the Panel denied the Request and gave the ITC until June 10 to issue its second Remand Determination. The ITC subsequently reiterated its position that the Panel had violated US law and had overstepped its authority. The Panel has 90 days to respond.

It expected that when the Panel eventually makes a final decision, that decision will go to an Extraordinary Challenge Committee which on current expected timelines would report in March 2005.

The United States Trade Representative and the ITC are also commencing the process of complying with the decision of the WTO Injury Panel, which replicates for the most part, the NAFTA Panel findings.


2. Anti-dumping (AD)

On June 3, 2004 the Department of Commerce issued preliminary AD rates for the first Administrative Review (AR).

The rates are as follows:

Abitibi 2.97%
Buchanan 4.80%
Canfor 2.06%
Slocan 1.64%
Tembec 10.21%
Tolko 3.68%
West Fraser 1.08%
Weyerhaeuser 8.38%
All Others 3.98%

Final rates will be issued on December 7 and will set a cash deposit rate going forward and an assessment rate for the period May 22, 2002 to March 31, 2003. The latter rate is subject to appeal.


3. Countervailing Duties (CVD)

On June 3, 2004 the DOC issued preliminary CVD rates based on a Maritime private stumpage benchmark. The country wide rate is 9.24%.

As in the AD AR a final rate will be issued on December 7 and will set a cash deposit rate going forward and an assessment rate for the period May 22, 2002 to March 31, 2003. The latter rate is subject to appeal.

On June 7, 2004, the NAFTA CVD Panel issued its Decision on the DOC January 12, 2004 Remand Determination that set the subsidy rate at 13.23%. The Panel directed the DOC to recalculate benchmark log prices taking into account a number of errors and adjustments. If the final country wide rate is below 1% then there is no foundation for the CVD order.


4. Refund of Cash Deposits

In its AD Remand Redetermination submitted to the NAFTA Panel on April 22, 2004 the DOC took the position that neither the U.S. statute nor NAFTA provide for retroactive relief of a panel decision reviewing an original DOC final determination. This essentially means that DOC will refuse to order the retroactive return of cash deposits. This matter is now being appealed.


5. Negotiations

Negotiations are currently focused on required Provincial policy changes that would result in a long term solution. These discussions involve government and industry.

For more information please see the following websites:

BC Lumber Trade Council:
www.bclumbertrade.com

Government of Canada:
www.dfait-maeci.gc.ca/eicb/softwood/menu-en.asp

Government of BC:
www.for.gov.bc.ca/HET/softwood/index.htm



Forest Fire Prevention Campaign

This summer COFI is playing a significant role in preventing a replay of the disastrous 2003 forest fire season. Far too many of the fires last year can be chalked up to carelessness. While there is no control over the forces of nature, we can influence the level of care taken by people while they enjoy our natural surroundings or while they work in those same natural settings.

COFI has launched a public awareness campaign that will have 30 second radio spots running throughout the summer on 30 radio stations throughout BC's interior and north.

The public service ads feature a woman's voice speaking of how families spend time together enjoying our forests but how many tens of thousands of families and hundreds of communities also depend on forestry for their economic well being. She then asks that everyone work together to prevent the devastation caused by forest fires.

The provincial government will also be using media to advocate care in the forests throughout this forest fire season. It is felt that it will be beneficial to have a non-government voice, such as COFI, delivering a similar message.

To hear COFI's message go to: www.cofi.org



Students conducting stream assessment

Giving up part of your long weekend to travel 100 km down a dusty logging road so that you can spend three days in the forest battling rain storms and hordes of mosquitoes may not seem like fun to you, but for 25 Grade 11 Honour Roll students from 5 high schools in School District No 91, Nechako Lakes, it was just that - fun! The students, along with their teachers recently participated in one of COFI northern operations' Natural Resource Management Camps at Canfor's Kluskus Logging Camp to learn about natural resource management and its many associated careers. Together with their teachers, the students participated in hands-on workshops covering such topics as fish habitat and management, archaeology, forest health, block layout and engineering, silviculture and ecology.

This industry/education partnership brought together professionals from the Ministry of Forests, Canfor Plateau, L&M Lumber, Lakeland Mills, West Fraser - Fraser Lake, Avison Management, The University of Northern BC and NorCan Consulting to host the various workshops. "The value of this program is that these very bright, keen students are learning about resource management and associated careers from professionals who truly enjoy their jobs and are working in their own back yard" notes COFI's Chris Lear. The challenge for the presenters is to inspire the students through hands-on activities.

After working through the various outdoor workshops, the students and teachers gathered for a final session where, after being divided into teams, they worked on developing integrated management plans using ARCView. The plans were then presented to a team of judges made up of professional foresters with the winning team receiving a $1200.00 group scholarship.

At the end of it all, the students and teachers came away energized and inspired with a new appreciation of resource management and with some students considering careers in the field. And spending three days in a logging camp, well that was just the icing on the cake!

Planning has already begun to host fall camps in Houston, Prince George and Chetwynd.

For more information contact:
Chris Lear by e-mail: lear@cofi.org or by phone: (250) 564-5136 or visit COFI North's Forest Education website at: http://forest-education.info


A Publication of the Council of
Forest Industries


Suite 1501-700 West Pender St.
Pender Place I Business Building
Vancouver, B.C. V6C 1G8

Phone: (604) 684-0211
Fax: (604) 687-4930
E-mail: info@cofi.org
Website: www.cofi.org

Editor: Anne Mauch

Desktop Publishing: Anne Ho



Community dinners are an important means for COFI to communicate with the people who are key to helping us define the role of the forest industry in the province. Communities are important to the forest industry and the forest industry is important to communities. Meeting with community leaders in this way ensures that we are able to not only communicate important issues facing the industry but as important, we are able to hear about issues of concern to the local communities and the province.

On May 26, the COFI Board of Directors met in Kelowna followed by the inaugural Community Dinner of the year at Manteo Resort. More than 100 people gathered from the Central Okanagan region to hear from Minister of Sustainable Resource Management George Abbott and COFI President John Allan. Board Chair Dennis Rounsville acted as the MC introducing the special guests beginning with Kelowna Mayor Walter Gray who provided a welcome from the City of Kelowna.

Minister Abbott provided an extremely entertaining overview of the activities of his ministry and the provincial government as they affect the forest industry in the interior. Other special guests included Member of Parliament for Kelowna, Werner Schmidt and MLA for Kelowna-Lake Country, John Weisbeck.

A fitting close to the evening was a presentation by COFI's Deb Bazett to Jeannie Steele, Riverside Forest Products for her extensive contributions to furthering forest education in the Southern Interior.


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