Global Forest, Paper & Packaging Industry Survey - Financiera Rural

PricewaterhouseCoopers 22 nd Annual Global Forest & Paper Industry ConferenceWhat are they going to do about it?When CEOs sat on stage and discussed the future ofthe industry, they were filled with hope from lessonslearned as well as working towards revitalised businessplans and strategies. For many it’s a survival andstrategy story. According to Jim Shepard, the downturncould be an opportunity for BC to once again becomea real competitive player in the market, but it will take aconcerted effort from everyone involved—companies,labour, government etc.Although it is on their agenda, bioenergy is not yeta priority for many companies. Shepard says thatbioenergy will be based on good economics and ongovernment stimulus. Yet, it’s always good practiceto consider the best use of a tree once it has fallen—first lumber, second chips and third the residue. Butwhole tree harvesting for energy is not viable. “It’s tooexpensive to generate something like electricity fromthat tree.”Magnus Hall noted that bioenergy will depend on thecost and making the best use of the tree—emphasisingthat a forest is a renewable resource and if properlyused could provide increased value to a company.This is a point Richard Garneau agreed with, howeverhe remarked that “consumers will be the ones payinghigher prices” if costs increase. Garneau also notedthat the industry is green by default and everyone iscommitted and looking to define the green credentialsand reputation of the forest industry.Indeed, Hall says, companies are taking more decisiveaction and 2008 has proved that the industry is learningand capitalizing on the opportunities ahead of them.But bioenergy demand has the potential to destroy orsave the pulp and paper industry, largely based on theability to pay. Hall notes that the facilities should aimfor self-sufficiency and take mind of possible powerproducer monopolies.So what’s next?Certainly collaboration and diversification will behigh on the list of action items. The industry needs totransform itself with new ways of doing business inaddition to the fundamentals of reducing costs andexpanding markets. Indeed, the opportunity exists torevitalise the forest industry and its competitivenessby making use of technology and abundant forestresources for the production of forest and paperproducts, bioenergy and other bioproducts in anenvironmentally conscious manner, thus enhancingsustainable economic development.