Red Alder; Market Reasons for Optimism!

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Red Alder Market Reasons for Optimism!
Larry Mason University of Washington College of
Forest Resources Rural Technology Initiative
Washington Hardwoods Commission Annual Meeting,
June 14, 2006
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5/06 price in 2004 Red Alder 699 Douglas-fir
620
Puget Sound Region. Source Log Lines
(1989-2004, 2006), Forest Product Price Report
(1959-1990), Timber Management Plus (current), U.
S. Dept of Labor
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8.40
7.35
2004
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2004 5 rate of return
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Price Indexes for Hardwood Lumber, 1965 - 2002
Average increase/year since 1965 of 4.9
More stable than softwood lumber
Western producers produce lt 5 of hardwood lumber
Source U.S. Forest Service
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U.S. Hardwood Exports1986-2002
Million
Source American Hardwood Export Council
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Source USDA Foreign Agriculture Service
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Source USDA Foreign Agriculture Service
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2005 121 Million Total Sales
Source USDA Foreign Agriculture Service
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Alder lumber export statistics for Jan-May of
2004 and 2005.
Source Hardwood Review (2005) and USDA Foreign
Agricultural Service (2005).
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How Do Domestic Markets Respond to Alder?
Source Roos, J., G. Donovan, D. Nicholls. How
does species name affect consumer choice? An
analysis and implications for PNW cabinet door
marketers. Forest Products Journal. 55(5). Pp.
21-26.
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560 respondents in Anchorage 900 respondents in
Seattle
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Combined alder preferences dominate selections!
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Huge opportunity for consumer education!
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But can Alder price get too high?
C - ? 1 - 2.20 2 - 1.70
C - 1.40 1 - 1.00 2 - 0.60
C - 1.50 1 - 1.20 2 - 0.70
C - 3.75 1 - 2.50 2 - 1.50
Poplar
Cherry
Maple
Alder
http//www.innernet.net/galleryofwood/pricelist.ht
m
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One reason for alder popularity among
manufacturers is its workability
Source American Hardwood Export Council
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South West Rustic Furniture
??????????????? 4/4 Premium Frame 825/MBF 4/4
Standard and 3 Shop 550/MBF
Source Bill Redman, North Pacific Lumber
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Alder is the only wood approved for grocery
pallets by the West coast food industry.
But gt 300/MBF?
Source Hardwood Lumber Review and Bill Redmond
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What about the pulp price?
The west produces lt 3 of U.S. hardwood chips
Source USDA Forest Service
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Look into the crystal ball
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• Red Alder is not a tropical hardwood.
• Planting Red Alder will diversify commercial
  forestland investments.
• As prices rise more plantations are established.
• Red Alder logs are likely to become increasingly
  scarce because present plantations are few.
• Increases in research in intensive management and
  genetic improvements will likely result in
  hardier stock, shorter rotations, higher grades,
  and greater yields.

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• Shorter rotations mean quicker return-on-investmen
  t and reduced risk.
• Rapid growth does not appear to compromise lumber
  quality.
• Red Alder appears well established in Domestic
  and Export niche markets.
• Products markets can be strengthened and expanded
  through consumer education.
• Engineered Wood Products may help with raw
  material shortages.
• 200 MMBF in Alaska more in Canada.

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CONCLUSION Red Alder is uniquely positioned
among PNW log species for continued market
success.
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Available on the web at no charge or on DVD-ROM
for 10 (this can only be viewed on a computer
with DVD reader). To order, contact Clara
Burnett (clara75 _at_cfr.washington.edu), or call
the RTI office at [phone].
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Available on the web at http//www.treesearch.fs.f
ed.us/pubs/22325 Or in hard copy from
Pacific Northwest Research StationP.O. Box
3890Portland, OR 97208 [phone]
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Thank You