Maximizing First Nations forestry opportunities
Aboriginal initiatives and UBC’s Faculty of Forestry programs
Lack of industry support for softwood deal leaves taxpayers on the hook
First Nations youth get forestry training
Maximizing First Nations forestry opportunities
Value-added and Capacity Building as
an Economic Development Strategy
BThe manufacturing of value-added wood products is increasingly considered as a growth strategy for forest-dependent communities in Canada. It offers more jobs and substantial economic gains while utilizing fewer resources than the timber harvesting sector. Is it also a good strategy for First Nations in Canada to fully maximize their forestry opportunities and build long-term economic stability and wealth?
As a result of recent negotiations on the constitution and on land claims, First Nations people are gaining ever more access and control over their resources. In BC, First Nations are emerging as major forestry players with access to at least 4% of the province’s annual allowable timber cut. In the course of the province-wide timber reallocation process, the BC government has signed Forestry/Range Agreements (FRAs) with 109 First Nations. These have included access to more than 17.5-million cubic metres of timber and $123.5 million in shared forestry revenues.
‘The time has come to capitalize on this opportunity and add value to the wood instead of selling it as a log”, says Frank Brown of the Heiltsuk First Nations Forestry Committee, who is working on bringing employment opportunities to his and other communities by building value-added forestry businesses. “First Nations need to be armed with the knowledge and skills of how to best develop their forest resources into wood products.”
Here is an example of how a First Nations value-added business was able to progress to an operable level:
Five years ago, the Seton Lake Band near Shalath, BC purchased a mill to produce the outside walls for log houses. They started producing a number of structures, but it quickly became clear that the quality was substandard and the cost too high. Despite having several significant orders, the band shut down the mill because they believed they could not produce a quality product.
That’s where this story could have ended, but in this case the band looked for outside help to get their business idea back on track.
In 2005, after almost four years of being out of business, the Seton Lake Band sought the support of Forintek’s Solutions for Wood program, an initiative funded by the industry and BC government that helps wood products businesses in BC build the capacity to produce and sell value-added wood products such as log houses, wood flooring and wood components for construction. At the end of the collaboration this year, the Band has re-established its business, produced one demonstration cabin, and now has the ability and confidence to produce quality log homes. The Band and Solutions for Wood estimate an annual sales increase of $500,000 with a capital investment of $350,000 – a significant achievement coming from almost zero.
“Our job was to modify the production process and offer advice in the redesigning of some of the existing equipment. The changes reduced the labour cost and increased the quality of the finished product”, says Roland Baumeister, Manager of Forintek’s Solutions for Wood program.
Capacity Building is Key for Long-term Success Developing a successful forestry-based business requires market intelligence, capital, the appropriate equipment, and the technical resources to operate it as efficiently as possible. “We help First Nations every step of the way by working with them to assess product opportunities, identify potential markets, develop manufacturing plans, and provide technical guidance as their business ideas are put into action”, says Baumeister.
Dave McRae is one of the Forintek’s industry advisors who have worked closely with First Nations to help them extract the true value from their forest resources.
“Our job is to find out what First Nations businesses need and want to do, what their workforce ability is, and where their heart is before we can come up with concrete manufacturing advice and solutions. The whole process needs to be First Nations driven, run, and supported to lead to a sustainable success.”
Frank Brown of the Heiltsuk Forestry Committee adds: ”When we look at how we can develop the First Nations forestry industry, value-added is a pretty good strategy. It just makes good sense to keep the natural resource in its natural habitat. There are many opportunities to extract value from the wood, create economic stability and long-term employment: log housing, timber framing, posts and beams, decks, siding, cedar shed housing, roofs, you name it. We as First Nations need to ensure that we vertically integrate this opportunity so that we get the maximum benefit. Building capacity now helps us to start smart and lean. Thus, we won’t learn bad habits that will cost us along the route.”
For further information on the Solutions for Wood program, check out www. solutionsforwood.ca or contact Roland Baumeister at Forintek, 604-222-5672.
Aboriginal initiatives and UBC’s Faculty of Forestry programs
By Warren Fortier
The UBC Faculty of Forestry offers 5 distinct 4-year undergraduate Bachelor of Science degree programs, covering a range of conservation, resource management, and manufacturing subject areas. A five-year cooperative option is also offered for each program, where work placement sessions become part of your studies.
(Left) Dr. Ronald Trosper, Associate Professor of First Nations Forestry, UBC, and Warren C. Fortier, BNRS, Coordinator of Aboriginal Initiatives, UBC Faculty of Forestry.
B.Sc. Forest Sciences: Students study the scientific principles related to the growth and development of forest organisms, and the ecology of plant and animal communities. Students select an area of concentration during their second year and specialize their studies according to their own interests, including genetics, ecology, entomology, pathology, silviculture, and fire science. An International Specialization is also possible, focusing on forest ecosystems in another part of the world. This program provides a partial basis for acquiring professional certification (Registered Professional Foresters or Registered Professional Biologists).
B.Sc. Natural Resource Conservation: Natural resources conservation is an important issue throughout BC, Canada, and the world. Conservation is the art and science of managing the natural environment, by carefully planning and perpetuating the "wise use" of natural resources. Conservation is concerned with the maintenance of habitats and the persistence of diverse natural resources including those in forests, grasslands, alpine areas, urban and agricultural areas, and aquatic systems.
B.Sc. Wood Products Processing: Students begin by studying basic sciences: physics and chemistry. The program then places an emphasis on engineering concepts, business, communication and problem solving skills. Graduates have a good understanding of the manufacturing and marketing of a variety of wood products, and are capable of managing a wood products manufacturing facility. These facilities include sawmills, re-manufacturers, panel product producers, kitchen cabinet and furniture manufacturers and suppliers, and architectural woodwork companies.
Forest Operations: Students are prepared for planning and implementing complex harvesting operations that maximize economic returns and minimize environmental impact. The program is based on biological, physical and social sciences, with advanced courses in geotechnical engineering, forest road design and slope stability, analysis of harvesting systems for economic efficiency and site protection, and planning and scheduling of harvests and transportation systems.
Upon graduation, students from this program can apply to become Registered Professional Foresters.
Forest Resources Management: Students learn how to integrate the use of a wide variety of natural resources including range, recreation, timber, water and wildlife. They study the basic sciences upon which forest resources management is based, and, through a choice of electives, emphasize biological, economic, social, or quantitative aspects. An International Specialization is also possible to focus on forest management in another part of the world. Upon graduation students from this program can apply to become Registered Professional Foresters.
The Faculty of Forestry is dedicated to enhancing collaborations with Aboriginal peoples by:
- Increasing the number of Aboriginal peoples with indigenous ancestry into all programs offered by the faculty.
- Integrating Aboriginal rights, culture and land ethics into all relevant curriculum
- Striving to be the location where forums on public policy involving Aboriginal people’s issues and perspectives can take place.
The Associate Professor of Aboriginal Forestry, Aboriginal Coordinator, Dean, and Department Heads work together towards these goals.
Indicators of success:
- Increased enrolments of students with Aboriginal ancestry.
- Implementation of laddering programs into colleges.
- Increased course content on Aboriginal peoples used in all programs.
- Hosting discussions on issues impacting Aboriginal peoples.
For more information, please check out these websites:
- Supporting Aboriginal Initiatives at UBC: www.forestry.ubc.ca/firstfor/ First%20Nations%20 funding.pdf
- Information Bulletin: www.forestry. ubc.ca/ firstfor/First%20Nations.pdf
- Forest Chronicle Article: http://www.forestry.ubc.ca/firstfor/ forestchronarticle.pdf
- UBC Aboriginal Initiatives: http://www.forestry.ubc.ca/firstfor/ intro.html
- UBC Faculty of Forestry: http://www.forestry.ubc.ca/
- UBC Cooperative Program: http://www.forestry.ubc.ca/programs/ undergrad/co-op/
Lack of industry support for softwood deal leaves taxpayers on the hook
By Steve Mertl
Canadian taxpayers could end up sending the Americans a cheque for millions of dollars because Ottawa is not getting the support it expected from the lumber industry for the softwood deal, says an opposition critic.
The agreement initialled July 1 guarantees the U.S. government and American lumber producers split $1 billion US in duties paid by Canadian lumber exporters.
The Canadian companies are supposed to get back 80 per cent of the roughly $5 billion US in duties paid since May 2002 if they sign over their duty refunds to Ottawa so it can fulfil the $1-billion commitment to the Americans.
But New Democrat trade critic Peter Julian said August 28 the payout is based on exporters who are owed the equivalent of 95 per cent of the total duties paid signing waivers that give Ottawa the power to undertake the cash split.
Prime Minister Stephen Harper announced recently that a ``clear majority'' of exporters had expressed support for the contentious softwood deal – enough for him to proceed with enabling legislation when Parliament resumes in September.
Harper did not reveal the specific level of support, leading critics of the deal to speculate that it falls well short of the 95 per cent threshold.
Julian said he believes industry support so far totals only 75 per cent – and some of that is conditional.
``The actual number of valid approval letters is a real open question,'' he said.
The suburban Vancouver MP said that means not enough money will be available to cover the $1-billion commitment.
``Every (percentage) point that they're below is $10.6 million,'' he said in an interview. ``That would be $200 million that Canadian taxpayers would have to pick up.''
Julian called on International Trade Minister David Emerson to disclose the vote totals and details of the softwood deal's cost to taxpayers.
``Now we're in this morass and swamp where the Canadian taxpayer is going to have to kick in because they messed up,'' he said.
``If Canadian taxpayers are being asked to cough up the difference, then they have a responsibility to tell the public how much this is going to cost them.''
A spokeswoman in Emerson's Ottawa office said the vote totals Harper used for his announcement were not immediately available.
The department expects to release a tally at a later date after it has reviewed the responses of the roughly 300 companies involved, she said.
The duties paid in since May 2002 are being held in a special U.S. Customs account, to be released once the agreement comes into force.
Canada – through the Export Development Corp. – was already expected to advance duty refunds to exporters because it will likely take months for U.S. Customs to complete an accurate accounting of who is owed what.
Exporters who didn't sign Ottawa's waivers expect to receive 100 per cent of their money back directly from U.S. Customs, a process that's also expected to take months.
The seven-year lumber agreement replaces U.S. softwood duties with Canadian border taxes or a combination quota and border tax, effectively limiting lumber exports to the crucial U.S. market, especially when prices are low.
First Nations youth get forestry training
Aboriginal students in Ontario are once again getting the chance for summer employment and a greater understanding of forestry, thanks to a unique partnership between the forestry companies Weyerhaeuser, Bowater and Tembec, and Confederation College. The natural resources program, “gives Aboriginal students a better understanding of the forest industry in Ontario,” says Murray Ferguson who is Weyerhaeuser’s Forest Resource Manager for Ontario. Students spend two weeks in a common training program delivered through Confederation College. This year the initial training was held at a bush camp near Upsala. Following that, the students started work in camps set up by the three companies. The Weyerhaeuser work site was near Sioux Narrows, about an hour south of Kenora. All students are regrouping at Confederation College in early August for an overview of college programs and facilities. The program winds up with a special feast for all the participants, sponsoring companies and government reps. “The program reinforces the value of education within the communities in our operating areas, and may increase the pool of Aboriginal candidates that meet our future workforce needs,” Ferguson says. Ten students from First Nation communities in the Kenora/Dryden area participated at the Weyerhaeuser work location this year.