Today we’re going to talk timber. The continued decline in pump and hardwood prices reflect structural changes in the pulp and paper industry, including shifts in product demand, increased use of recycled fiber, the mill modernization, rising wood pulp imports, and also relocation to lower cost regions. These trends have intensified in the past three years, just since 2003-2005. More than 10 major pulp facilities in the southeast have closed, and that eliminated over 25 million tons of annual fiber demand and significantly reshaped the regional pulpwood market along with the labor market.
Landowners today in areas affected by recent mill closures may need to reassess their long-term management strategies in response to reduced pulp demand. Potential adjustments may include reducing planting density for reforestation or delayed thinning. The southern salt timber prices remain steady right now to flat in many wood baskets of the region, while pulpwood prices continue to fall across the board, especially here in the southeast.
Audio Reporting by Tyron Spearman for Southeast AgNet.