During the period October to December 2008, AFPA member companies shipped $563.4 million worth of lumber, panelboard, pulp and paper – a $62.2 million, or 9.94 per cent decrease from the same period a year ago. The market recession for forest products continues, illustrated by the $105.1 million drop in value of shipments between the third and fourth quarters of 2008, as home building in North America fell to its lowest levels in more than 50 years.

Comparing 2008 results to 2007 results, the overall value of Alberta forest products shipped to market fell by $324 million (11.79 per cent) on lower prices for lumber and panelboard products. The AFPA’s lumber sector saw a 29.52 per cent value decrease on 11.95 per cent less shipments; our panelboard saw a 38.72 percent value decline on similar production; and the pulp and paper sector showed a 7 per cent increase in value on similar production volumes.

“The difficulties facing Alberta’s forest industry continue as North America struggles to work its way back to financial health,” said APFA President and CEO Brady Whittaker. “Overall, we are still seeing much weakness in key market indicators – like housing starts in Canada and the United States and reduced pulp and paper demand – that is negatively impacting our member companies. We are hopeful that late 2009 or early 2010 will show signs of recovery and lift our member’s spirits and financial performance.”