Some northern Wisconsin loggers are putting off timber harvests. The prices for timber products they deliver have fallen over the past eight months.
Great Lakes Timber Professionals Association Executive Director Henry Schienebeck said some loggers are holding off on harvesting wood they bought under contract. He said an oversupply of raw material on the market is leading some to consider their options. “The guys are still able to produce the wood. Now, they’re trying to adjust their production levels to what the mill requirements are right now,” Schienebeck said.
Larger mills don’t have as much need for wood since they have full inventories, according to Forrest Gibeault, analysis and investment operations director with forestry consulting firm Steigerwaldt Land Services out of Tomahawk. He said several factors are driving that. “One of them being that the mills are probably not working at full capacity,” Gibeault said. “Their product demand may not be where they would like to see it.”
He added loggers likely expanded their workforce last year to produce more wood for mills that had lower inventories at the time. Now, Gibeault said larger mills can afford to pay loggers less for the wood they deliver because of adequate supplies.
While some loggers are delaying harvest, that’s increasing uncertainty for northern Wisconsin counties that aren’t paid for timber sale contracts until the wood is harvested.
From Business North: https://www.businessnorth.com/kuws_wisconsin_public_radio/some-wisconsin-loggers-holding-off-on-timber-harvests/article_033afad8-c6c7-11e6-af83-03b59db2cfd6.html