Strategic Forest Management and Value Chain Optimization - VCO
Strategic Forest Management and Value Chain Optimization - VCO
Strategic Forest Management and Value Chain Optimization - VCO
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<strong>Strategic</strong> <strong>Management</strong> of the<br />
<strong>Forest</strong> <strong>Value</strong> <strong>Chain</strong>: Sustainable<br />
<strong>Forest</strong>s that Support Sustainable Business<br />
<strong>Strategic</strong> <strong>Forest</strong> <strong>Management</strong><br />
<strong>and</strong> <strong>VCO</strong>: Challenges <strong>and</strong><br />
Opportunities<br />
5/30/2011 www.fpinnovations.ca 1
Outline<br />
• Challenges<br />
– Lack of common underst<strong>and</strong>ing<br />
– Lack of information for decision making<br />
– <strong>Forest</strong> tenure<br />
– Optimizing for value<br />
• Opportunities<br />
– Enhanced <strong>Forest</strong> Inventory<br />
– Network of National Initiatives<br />
• Conclusion<br />
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Challenge: Lack of common underst<strong>and</strong>ing<br />
• <strong>Strategic</strong> <strong>Forest</strong> <strong>Management</strong> Planning - no clear<br />
definition:<br />
– What makes it strategic? Time scale, social goals, values…<br />
– What should be considered? Regulation, policy, management<br />
framework – should define the rules of the game<br />
• <strong>Strategic</strong> <strong>Forest</strong> Planning should define what is<br />
sustainable:<br />
– Key Performance Indicators<br />
– Assessment of scenarios<br />
– Robustness of plans for uncertainty<br />
– Follow-up<br />
• Strategy for FM <strong>and</strong> <strong>VCO</strong> is different<br />
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Decoupling Issue:<br />
Recreation<br />
Wildlife<br />
NTFP<br />
Reg.<br />
Decision<br />
making<br />
Others<br />
Fibre Prod.<br />
• Push<br />
• 150 yrs<br />
?<br />
• Jobs<br />
• Social Benefits<br />
• Development of<br />
Communities<br />
• Ecological Legacies<br />
• Pull<br />
• 5-25 yrs<br />
Market<br />
• Profit<br />
• Growth<br />
• Competitiveness<br />
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Challenge: Lack of information<br />
• Get the right information for decision making<br />
at all levels: What, where <strong>and</strong> how much?<br />
– Wood Production:<br />
• Species <strong>and</strong> tree dimensions<br />
• What are the key attributes?<br />
• Put a value on a tree/fibre<br />
– Ecological attributes:<br />
• Species <strong>and</strong> habitat inventories<br />
• Site productivity<br />
• Error, Bias, Resolution, Up-to-date information<br />
at Low-Cost are issues<br />
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Challenge: Lack of information<br />
• Build the resource to sustain the future<br />
bioeconomy:<br />
– What is needed?<br />
– How to make sure that a sustainable bioeconomy<br />
will allow us to meet the requirements of strategic<br />
forest management?<br />
• Issue around the valuation of silvicultural<br />
treatments: What should be the <strong>Value</strong><br />
Proposition?<br />
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6
Challenge: Tenure<br />
• National Trend:<br />
Companies Independent agencies<br />
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Province of Quebec as an example<br />
http://crebsl.org/documents/pdf/evenements/mrnf-regionalisation_et_refonte-100120.pdf<br />
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Challenge: Tenure<br />
• What will be the impact of regional<br />
community decision making on:<br />
– Priorities for production;<br />
– The QQPT, the delivery of the resource for<br />
Quantity, Quality, Price <strong>and</strong> Timing<br />
– Down stream in the <strong>Value</strong> <strong>Chain</strong>?<br />
– Innovation?<br />
• Change of Tenure<br />
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Challenge: Optimizing for value<br />
• <strong>Forest</strong> management = divergent process:<br />
– <strong>Management</strong> unit level: good st<strong>and</strong>s vs bad st<strong>and</strong>s<br />
– St<strong>and</strong> level: high value trees mixed with low value trees<br />
– Tree level: low quality logs mixed with high quality logs<br />
in the same tree<br />
– Log level: basket of high value <strong>and</strong> low value products<br />
• Market for low grades is critical at all levels<br />
• How to integrate risk into the Allowable Cut?<br />
The realty is dynamic<br />
• Decoupling between the biophysical <strong>and</strong><br />
economic Allowable Cut<br />
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Opportunities: Enhancing <strong>Forest</strong> Inventory–<br />
for value-chain optimization<br />
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Needs:<br />
To fully support value chain<br />
optimization, our forest managers<br />
need …<br />
Product attributes <strong>and</strong> value<br />
Spatial data – where the value is<br />
Greater, quantifiable precision<br />
Faster updates (< 10 to 20 years)<br />
Support sustainability – ecological <strong>and</strong><br />
economic<br />
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CWFC Goal:<br />
To develop high accuracy inventory systems that are<br />
capable of spatially quantifying forest structure <strong>and</strong><br />
related attributes in a manner that will enable product<br />
segregation <strong>and</strong> resource value maximization.<br />
…support <strong>VCO</strong> by enabling us to send the right<br />
wood, to the right market, at the right time!<br />
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Light Detection <strong>and</strong> Ranging<br />
Inventory supplement to improve st<strong>and</strong>-level<br />
metrics…<br />
Advantages:<br />
Accurate DEM; huge<br />
sidebar benefits...<br />
Digital Surface Model (DSM)<br />
Digital Terrain Model (DTM)<br />
Canopy Height Model (CHM)<br />
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Light Detection <strong>and</strong> Ranging<br />
Inventory supplement to improve st<strong>and</strong>-level<br />
metrics…<br />
Advantages:<br />
Green River LiDAR data<br />
26 m<br />
17 m<br />
Accurate DEM; huge<br />
sidebar benefits...<br />
WAM <strong>and</strong> Productivity<br />
Mapping...<br />
St<strong>and</strong>-level metrics...<br />
8 m<br />
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Airborne LiDAR…<br />
How is this applied?…<br />
ˆ<br />
y<br />
• Height<br />
• Volume (GTV, GMV)<br />
• Basal area<br />
• Density<br />
• Quadratic mean DBH<br />
• Biomass<br />
• Diameter <strong>and</strong> Basal Area<br />
Distributions<br />
High cost<br />
Low st<strong>and</strong>-level accuracy…<br />
Aspatial…<br />
• Next st<strong>and</strong>???<br />
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Scalability…<br />
Volume across the ENTIRE <strong>Forest</strong>!<br />
25 to 100 m 3 /ha GTV<br />
100 to 200<br />
200 to 300<br />
300 to 400<br />
400 to 500<br />
…BOTH tactical<br />
<strong>and</strong> strategic<br />
objectives!<br />
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Actual scaled volume vs. FRI & LiDAR predictions<br />
35 ha harvested 2008 (jack pine)<br />
FMP–planned: 4,669m 3<br />
LiDAR–predicted: 7,543m 3<br />
Scaled Volume: 7,733m 3<br />
LiDAR prediction of volume on<br />
all clearcut harvest blocks<br />
examined was within 5%<br />
Image <strong>and</strong> data courtesy Tembec Inc.<br />
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Actual scaled volume vs. FRI & LiDAR predictions<br />
197 ha harvested 2009 (Black Spruce/Larch)<br />
FMP–planned: 24,152m 3<br />
LiDAR–predicted: 16,606m 3<br />
Scaled Volume: 13,238m 3<br />
LiDAR predictions on all<br />
similarly-treated harvest<br />
blocks were within 25%...<br />
even without netdowns for<br />
retention<br />
Image <strong>and</strong> data courtesy Tembec Inc.<br />
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Opportunities: Network of National Initiatives<br />
Boreal<br />
• 4 major Initiatives,<br />
partnered with<br />
– Industry<br />
– Prov. Governments<br />
– Universities<br />
– CFS specialists<br />
– Leveraged funding<br />
• LiDAR & Digital<br />
Imagery<br />
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Opportunities: Optimizing BC Coastal Fibre Flows<br />
BC Coastal Volume Flow<br />
(1000’s m 3 )<br />
1983<br />
Reclaimable <strong>Forest</strong> Waste<br />
1,536<br />
Surplus Logs<br />
4,400<br />
Log Exports<br />
Crown<br />
L<strong>and</strong>s<br />
18,000<br />
Coastal<br />
Log<br />
Supply<br />
(22,996)<br />
2,950<br />
10,676<br />
Solid<br />
Wood<br />
Plants<br />
Sawills<br />
127<br />
808<br />
2,015<br />
5,012<br />
Poles & Posts<br />
Shake & Shingle<br />
Plywood & Veneer<br />
Lumber<br />
Sawdust & Shavings (1952)<br />
Chip Waste (96)<br />
Private<br />
L<strong>and</strong>s<br />
Log<br />
Imports<br />
6,800<br />
180<br />
3,070<br />
Wood Rooms<br />
&<br />
Chip Mills<br />
4,931<br />
2974<br />
Pulp & Paper<br />
(11,343)<br />
Net Chip<br />
Imports<br />
3,438<br />
Surplus Chips (362)<br />
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Hardwood project – Roadmap : …Silviculture<br />
Markets<br />
Users’<br />
needs<br />
Manufacturing<br />
Process<br />
Sawmill supply<br />
needs<br />
Ecodesign<br />
Life cycle<br />
Needs of<br />
2nd & 3rd<br />
manufacturing<br />
users<br />
Linking<br />
To quality<br />
requirements<br />
Adapted lumber;<br />
avoiding checks;<br />
discoloration<br />
Transformation<br />
drying<br />
Logs<br />
quality<br />
<strong>Forest</strong> inventory to asses<br />
economic value<br />
Impact of partial harvesting<br />
(Acadian <strong>Forest</strong> Region)<br />
Economic &<br />
Silvicultural<br />
knowledge<br />
Optimizing deployments<br />
Merch<strong>and</strong>izing centers<br />
Improving control<br />
Extensive/intensive<br />
treatments<br />
Improving performance<br />
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Regional issue<br />
22
Mapping Fibre Attributes for <strong>Value</strong> in Newfoundl<strong>and</strong><br />
maximizing the value of fibre resources through enhanced forest inventory<br />
OBJECTIVES:<br />
1. Quantify relationships<br />
among forest, environmental<br />
<strong>and</strong> fibre attributes at tree,<br />
plot <strong>and</strong> l<strong>and</strong>scape levels.<br />
Year cored<br />
LiDAR test sites<br />
2. Enhance measurement of<br />
forest species <strong>and</strong> structure<br />
to improve predictions of<br />
fibre attributes.<br />
3. Improve mapping of fibre<br />
attributes at l<strong>and</strong>scape<br />
scales using enhanced<br />
inventory technologies.<br />
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Conclusion<br />
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Acknowledgement:<br />
• Jean-Martin Lussier<br />
• Art Groot<br />
• Frédéric Raulier<br />
• Roger Whitehead<br />
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