Wood Supply

Introduction

Ontario's natural resources are important contributors to the province's economic well-being and quality of life. They provide the province with an important competitive edge.

 

The Ministry of Natural Resources (MNR) is committed to protecting and managing the province's natural resources, or its "natural capital", and making the interest from that capital available for individuals, communities and economies that depend on it. In doing so, the Ministry contributes to the environmental, social and economic well-being of the people of Ontario, meeting not only today's needs, but also ensuring these resources are available for future generations.

 

Ecological sustainability means safeguarding the province’s natural capital and nature’s capacity to renew itself. Ontario’s natural capital is its renewable resources, including forests, water and wildlife.

One of the areas that the MNR focuses on is the sustainable use of these resources. Ontario ensures that its Crown forests are managed for a broad range of uses and to conserve economic, social, environmental and cultural values.

 

To achieve sustainability, forest ecosystems must be maintained in a healthy state. A healthy, well managed forest is capable of providing a rich abundance of forest resources such as water, wildlife, fish and wood supplies while its natural values are protected.

 

Aerial view of small lake in Northern Ontario

Many Ontario communities depend on forests. Forest resources provide employment, socio economic benefits and government revenue, both for the short-term and long-term. Therefore a long-term predictable supply of sustainable forest resources for commercial use is particularly important to the economic well-being of communities.

 

Privately owned forests in Ontario form a significant component of the forested land base and source of forest resources. Their direct management is not within the mandate of the MNR. The MNR endeavours to foster sustainable management of forests on private lands through various programs.

 

 

Supply

 

Supply is the capability of the forest to provide a sustainable supply of forest resources, such as wood, for commercial use. A predictable quantity of wood for commercial use is important for the stability of communities and their economic well being. 

Sustainability is ensured through forest management plans developed at the local level for a broad set of objectives: environmental, social, cultural and economic. A team of forestry professionals, technical staff and local citizens develop each forest management plan to achieve locally determined objectives while adhering to government regulations.

 

The supply of forest resources is determined from supply analysis conducted during the forest management planning process which follows the requirements of the Forest Management Planning Manual that is regulated under the Ontario Crown Forest Sustainability Act.

 

The availability of forest resources from trees on Crown lands in Ontario is determined for each forest management unit, which is an area of land designated for forest management. Outcomes of management are examined using computer models over a period of 100 years or more. This detailed analysis provides for the predictability of forest resources that industry and communities require.

 

Determining a sustainable forest resource supply is one of the outcomes of a forest management plan. Other forest values such as the maintenance of wildlife habitat, the protection of fish habitat, the maintenance of old growth, the protection of cultural heritage sites, etc. are required considerations in the determination of forest resource supply under the Forest Management Planning Manual. Forest information and computer modelling are used to determine the forest’s capacity to provide tree fibre while protecting other forest values.

Grappler skidder dragging trees from a harvesting site to roadside

Forest products from each management unit are made available to various mills depending on the type or quality of the forest resource. The flow of forest resources between management units and the mills that depend on their supply is often a complex network designed to achieve the best overall value to the province from the available supplies. The communities that benefit from timber harvesting activities and the use of the forest resources may be located close to or within the management unit, or may be a great distance away. Each management unit has a unique set of forest management objectives and forest resource supply issues.

 

A regional review of future wood supply and demand projections is presented in the Provincial Wood Supply Strategy. The Provincial Wood Supply Strategy examines the major issues concerning wood supply in Ontario and recommends strategies to mitigate the issues. Current supply forecasts for each tree species grouping and for each forest management unit are available in Appendix 1 of the Provincial Wood Supply Strategy.

 

Demand

 

Demand is the amount of forest resources currently required by the forest industry to maintain its current operating levels.

Demand reflects the potential for industrial use of forest products. Demand may be identified from public (Crown) or private land or from other mills. It may come in the form of logs, wood chips or shavings or sawdust depending on the requirements of the mill.

Forest Resource Processing Mill (Sawmill)

Demand is established by MNR for each licensed mill in Ontario and is determined through a complex review process by examining mill capacity, historic use and other relevant information. This requirement for forest resources for each mill is considered when setting supply objectives within each forest management plan.

 

Historic use information is obtained through the electronic Facility Annual Return system (eFAR) and a review of MNR’s Timber Resource Evaluation System (TREES). eFAR enables online facility annual return data entry, submission and validation while providing access to the submitted data for reporting purposes. It also provides client access to past annual return information for reporting and reference.

 

Requirements for individual mills are reviewed on a periodic basis or in response to proposed changes. The review of mill requirements for forest resources ensures that the relationships between supply and demand are understood and deficits (i.e. shortfalls) or surpluses are predicted.

Disposition

 

Disposition is the process to fairly distribute available Crown forest resources for harvest and use in mills.

The disposition process is used to allocate both the harvest of forest resources (trees) and the use of those resources within processing facilities. The disposition is recognized through forest resource licences, sustainable forest licences or supply agreements.

 

Forest resource licences provide the right for licensees to harvest Crown forest resources. Sustainable forest licences provide the right for licensees to harvest and also require the licensee to carry out renewal and management activities. Supply agreements recognize the disposition of forest resources from one or more management units for use in a mill.

 

The Crown Forest Sustainability Act and its regulations govern the disposition of Crown forest resources. The Minister of Natural Resources is responsible for the disposition of Crown forest resources.

 

The disposition of Crown forest resources serves several purposes:

 

• provides fair value to the people of Ontario for the use of Crown forest resources through the generation of sustainable revenue;
• provides economic opportunities, increases opportunities for trade and creates wealth for the citizens of Ontario;
• ensures balanced social, economic and environmental benefits are provided from the forest;
• provides for community and industrial stability and sustainable employment;
• supports sustainable development and good forest management;
• meets legal obligations under the Crown Forest Sustainability Act as well as obligations that are rooted in tradition and history; and,
• enables MNR to react to changes in wood supply and in the forest industry.

 

Forest sustainability is governed by the Forest Management Planning Manual and not the resource disposition process. Sustainable supplies are determined in Forest Management Plans, the disposition provides mechanisms to make available those supplies to harvesters and mills.

 

Proposals for new disposition or changes to existing disposition are examined through business planning exercises. MNR works with the forest industry to review the supply, demand, and efficient use of forest resources when a change in disposition is proposed.