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Woodchip shortage threatens Canada’s forest sector

Temporary closures at Canada's sawmills start being felt by pulp and paper mills, Euwid reports. The Forest Products Association of Canada (FPAC) has asked for government support amid the coronavirus crisis.

According to FPAC, the sector was an important provider of raw materials and intermediates for the health and household products industry, such as pulp for the production of toilet paper, sanitary wipes or facial masks. However, with a price drop of almost 40% in recent weeks, lumber markets are struggling and many sawmills in Canada are temporarily shutting down their operations, thus reducing woodchip suply to pulp and paper mills, according to Euwid.

FPAC now recommended adjustments to government's wage subsidy and liquidity programms to keep the mills operating and prepare the industry for the difficult months ahead.