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Roundwood Markets I Est Virginia

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Roundwood Markets I Est Virginia Examination of regio hardwood roundwood markets i est Virginia Delton Alderman' William ~u~~old* Abstract West Virginia's large and diverse hardwood resource ranges from oak-hickory forests in the southern and nor-tllwestern regions of the state to northern hardwood stands in the northeastern region. West Virginia is home to a diverse group of primary liardwood pro- cessing industries including hardwood grade mills, industrial hardwood sawmills, engineered wood-product manufacturers, rus- tic-fence plants, face-veneer manufacturers, a hardwood plywood mill, and several roundwood and pulpwood concentration yards that supply mills in Ohio and Virginia. Each of these primary hardwood-processing industries has specific roundwood requirements with respect to species and quality resulting in a diverse set of roundwood markets. The diversity of West Virginia's roundwood mar- kets wcre examined based on a detailed survey of 30 logging and associated roundwood merchandising operations. The hawesting operations sunicyed merchandise roundwood to an average of four markets each. The production of sawlogs or peeler logs, however, appears to be driving these operations. Other roundwood markets appear less important or secondary but still influence the profitabil- ity of logging operations. Of the species harvested in West Virginia, yellow-poplar is the most versatile because of its use for sawlogs, peeler logs, and rustic fencing. Yellow-poplar also is utilized most often in the production of oriented strandboard. west Virginia's large and diverse hardwood resource harvesting generally concentrated on trees in the diameter ranges from oak-hickory forests (that also contain larger quanti- classes of 15 inches or larger. Collectively, these expanding and ties of yellow-poplar) to northern hardwood stands with signifi- new markets allow economically feasible harvesting of smaller cant amounts of hard maple and black cherry (DiGiovanni diameter andor low-grade timber (Hassler et al. 1999). 1990). In the Central Appalachian region, there have been sig- West Virginia also is home to a diverse group of primary nificant increases in both the demand for timber and the types of hardwood-processing industries, including hardwood grade roundwood products used by the forest industry. Annual re- mills, industrial hardwood sawmills, EWP facilities, rustic- moval of grovi~ingstock in Mst Virginia's sawtimber increased fence plants. face-veneer plants. a hardwood plywood veneer mill, veneer log yards that provide bolts to surrounding states, by 90 percent between the 1976 to 1989 and 1989 to 2000 forest and several roundwood and pulpu~oodconcentration yards that surveys (DiGiovanni 1990, USDA 2004). During the 1990s, senJe mills in Maryland, Ohio, and Virginia. Each of these in- large-capacity mills were located in West Virginia to manufac- dustries has specific roundwood requirements with respect to ture oriented strandboard (OSB), engineered wood products (EWP), and laminated veneer lumber (LVL). Because of these mills, timber consumption in the state has increased, with a sig- nificant increase in the volume of smaller diameter andor low-quality roundwood harvested to supply both existing pulp- The authors are, respecti\ ely, Research Forest Products Technolo- g~stand Economist Project Lcader, USDA Forest Service, Northeast- n~illsand neu EWP facilities. Pallet mills also are processing ern Research Station. Princeton. U'V ([email protected] smaller diametcr roundwood in addition to low-grade lumber [email protected]). Th~spaper was received for publication in Oc- and cants purchased from grade sawmills. Before the develop- tober 2004. Article No. 9953. 4-Forcst Products Society Member. ment of these nem markets, most logging was conducted to sup- c" Forest Products Society 2005. ply satvmiIls that produced factory-grade lumber, while timber Forest Prod. J. 55(12): 153- 157. FOREST PRODUCTS JOURNAL VOL. 55,No. 12 specie!: and qualityi. This large num- Tabie I.- Board foot and proportionaf volumes of sawtimber for the northwstem, south- her of markets also creates opportu- ern, and northeastern survey units of West Virginia, 2000." -- -- - - -- - nities for more efficient utilization of Soilthem Norlhn eestcrn hardwood roundwood. However, thc -- ?;ortheastern - Spec~es \l?vf13Fq ti RZ"VIDF 0 IclMBF ') o fom and degree of roundwood prod- - - - - - - --- - uct segmentation that is occurring in YeIIU"-p"pl"r 4.1 13 14 3 5,395 22 5 3,480 18.5 West kirginia or other hardwood- red 3.418 11.9 2.453 10.3 1,54 1 8.2 producing regions has been poorly Other red oaks 1,392 3.9 2,168 9.1 2.012 10.; documented. SeIeet t%h~teoak 2,05 1 7.2 2,035 8.5 2,862 15.2 Because there are few data linking Other a hlte oaks 2,136 7 4 3,165 9.0 1.383 7.4 regional roundtvood markets to the ~,,dmaple 2.103 7.4 1.008 4 2 786 4.2 types and intensity of timber har- soft 2.732 9.5 1.335 5.6 832 4.5 vests. it is not known how the ongo- lltckory ing changes will affect timber har- 1,236 3 3 1.325 6.0 1,318 7.0 vesting practices that in hlrn affect 'lack 1.827 6 4 310 1.3 559 3.0 fumre utilization opportunities for Sofi harde00dC 9,690 33.8 9,783 39.6 6,223 30.2 forest products. In this study, the Hard hardwoodd 13.007 45 3 1 1,735 49.0 10.743 57.2 number and types of roundwood ~~ft~\i~~d~ 2,333 8 1 993 42 75 1 4 o markets in West Virginia are exam- 28,600 23.930 18,782 ined and distances that roundwood -- - - -- -- -- - -- -- - - --- -- -- a Source USDX Forest Sen- (2003) are hauled to end users is reported. btMB Is board Data were obtained a survey of Includes yellow-poplar. soft maple. b~rch,beech. basswood, gums, and aspen, 30 logging jobs that were active dur- Includes all oaks, hard maple, ash, hlckones, and elms ing 200 1. The study objectiv,es were to investigate regional rouGdwood markets in conjunction with broad market indicators and to dis- cern the effects of regional roundwood markets on the type and intensity of timber harvests. The survey revealed information on the number and types of hardwood roundwood products rnerchandized at each site as well as the distance to market(s). Information on the factors that influence merchandising deci- sions also was obtained. To place this information in context, the composition of West Virginia's forests and primary forest products industry are discussed and data-collection procedures are described. West Virginia's sawtimber resource West Virginia contains three survey units or regions (Fig. 1) as defined by the USDA Forest Service's Forest Survey and Analysis (FIA) unit (DiGiovanni 1990). The northeastem re- gion contains 40 percent of the state's sawtimber inventory followed by the southern and northwestern regions with 34 SQUTXE RN and 26 percent, respectively (Table 1). While yellow-poplar Figure I.- FIA survey regions in West Virginia. is the most common species in all three regions, the northeast- ern region has a higher proportion of currently high-value species: select red oak (primarily northern red oak), hard ma- in the states that border West Virginia prefer hard hardwood ple, and black cherry. Twenty-two percent of the sawtimber species. while soft hardwood species are preferred by EWP and volume in the southern region is yellow-poplar, though this hardwood plywood manufacturers. In fact, the high volume of region also contains a hiih percentagc of oak species. The yellow-poplar in West Virginia is what attracted fims to build northwestern region has higher proportions of select white three ELVP and one hardwood plywood peeling operation in oaks (primarily white) and other red oaks fpriinarily black, the state during the 1990s. pin, and scarlet). Another way to examine the hrest resource is to discrimi- Forest industry in West Virginia nate saw2imber into hard (higher density) and soft (lower den- Historicalfy, hardwood sawmills have been the rnost irnpor- sity) hardwood species (Table 1). Hard hardwood species in- tant hardwood roundlvood-consumiw industlies in west Vir- clude the oaks, hard maple, ashes. hickories. and eims. Soft ginia (Table 2): this remains tlue today. as evidenced by histor- hardwood species include ~ellow-~o~lar,soft maple. birch7 ical data and the trend toward larger (in product ion) sawmi l 1s basswood, the gums. and aspen. Pulp and paper manupdct~lrers and a decrease in the number of and production from smaller mills. In 1963, West Virginia tallied 505 sawmills. with 94 pro- - - -- -- ducing more than 1 million board feet (MhIBF) per year I Luppold, WC; and 1.1S Bumgardner Regional changcj in the timber resonrcc (Kingsley and Dickson 1965). By 1976 this number was down and sat\~nliIrng~ndustr) In Pe~u-i\yI\an~aIn prepxatlon to 365 sawmills, with 90 producing rnore than 1 MMBF per 1 54 DECEMBER 2005 year (Bones and Glover 1977).IVidmann and Muniner ( 1987) Table 2. - Number and approximate capaoty of hardwood reported 164 sawmills in 1986, 1 I 1 of these produced more sawmills and other major consumers of hardwood roundwood, than I MMBF, year. Today. the state has more than 160 saw- by region, 2000." mills, nearly half of which are in the nortfieastern region, In 2000, these rnills produced a total of about 750 hlRlBF (West VA. Div. of For. 2001). Mills in the northeastern region are 2 inore numerous, southem region mills on average are larger SanrnrlI capacit) (MMBFI 352 93 102 with an average annual capacity exceeding 7 ZLlMBF. The OSB m:lis (no ) 1 1 0 northwestern region has nearly the same number of n~iflsas the SI3 nlills cdpacrty (I2.l rons) i ,000 5 00 0 southern region, but the akerage capacity of these mills is only Peeler in~lls(no ib i 1 0 2.3 MMBF and total production in this region is only a third of Peeicr mtli capdcih (?ifhlBFf 40 40 0 that in the southern region.
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