Market structure and economic performance of forest products industry in Ontario and Canada

1985 ◽  
Vol 15 (1) ◽  
pp. 115-125 ◽  
Author(s):  
J. C. Nautiyal ◽  
B. K. Singh ◽  
O. Menezes

Market structure for three major groups of Ontario and Canadian forest products industry was examined over the years 1975–1980 and 1965–1980, respectively, in terms of domestic seller concentration ratios. The analysis indicated that forest industries in Ontario are more or less a homogeneous part of those in Canada. However, patterns of change in concentration over time in both jurisdictions are different. Lumber industry in Ontario as well as in Canada, though not very competitive, is certainly unconcentrated. The pulp and paper industry, on the other hand, is mildly oligopolistic in both jurisdictions. The relatively small veneer and plywood industry is mildly oligopolistic in Ontario, but strongly so in Canada. Profitability of forest industries in Canada is positively and significantly related to the proportion of output exported and to the degree of domestic seller concentration. This degree of concentration, in turn, seems to be largely determined by the presence of economies of scale.

1993 ◽  
Vol 8 (2) ◽  
pp. 54-57
Author(s):  
Charles E. Keegan III ◽  
Daniel P. Wichman ◽  
Gerald E. Evans ◽  
Roger D. Fight

Abstract This article presents information on employment and payroll generated per unit volume of timber or wood fiber processed by the various manufacturing sectors of Montana's forest products industry for 1987-1989. Average employment ranged from a high of 117 workers per million cubic feet (mmcf) of wood fiber processed at house log plants, to a low of 12 workers per mmcf at stud mills. Employment-consumption ratios for cedar products plants and producers of utility poles and posts and small poles were 48, 47, and 34 workers per mmcf respectively. At sawmills, employment-consumption ratios ranged from 23 workers per mmcf for board mills to 12 workers per mmcf for stud mills. Plywood plants are slightly more labor intensive than board mills, employing 26 workers per mmcf of wood fiber processed. The processing of mill residue from sawmills and plywood plants by such users as the pulp and paper industry adds substantially to the employment per unit volume of timber processed. Because different components of the industry often use timber of different sizes, species, and quality, changes in the kind of timber available can have considerable influence on the structure of the industry and related employment. West. J. Appl. For. 8(2):54-57.


1983 ◽  
Vol 13 (6) ◽  
pp. 1174-1184 ◽  
Author(s):  
J. C. Nautiyal ◽  
B. K. Singh

Derived demand for roundwood created by the three major forest-products industries in Ontario from 1952 to 1980 was estimated from the production functions of the industries. The Cobb–Douglas function represents the lumber and the veneer and plywood industries, and the constant elasticity of substitution (CES) function represents the pulp and paper industry. In all three industries, the derived demand for roundwood is price inelastic. A theorem that the sum of partial price elasticities of derived demand when output of the final product is held constant is equal to zero has been proved. Demand by the lumber industry showed regular fluctuations throughout the 29-year period of study, while that by the other two industries rose steadily except for a few slumps.


1971 ◽  
Vol 1 (3) ◽  
pp. 159-166 ◽  
Author(s):  
G. H. Manning ◽  
G. Thornburn

The pulp and paper industry is generally considered the most technologically progressive of the forest industries. A study employing Solow's method indicated a rise in the index of technological change of 50% between 1940 and 1960. This compares with a 547% increase for the chemical industry. Derivation of the capital production function for the pulp and paper industries shows that all increases in productivity, 1940–1960, were due to change in technology. There is also some indication that optimal plant size has been reached.


Author(s):  
Nancy Langston

How did the pulp and paper industry—an industry that was intended to solve rather than create environmental problems in the Lake Superior basin—become the source of the region’s greatest pollution problems? As trees grew back on cutover lands, a new industry developed to exploit them. Aquatic pollution from the industry created a new set of pollution challenges that soon dwarfed the conservation problems presented by the lumber industry. Pulp mills and regulators tried to manage pollution from growing industries, but their models did not account for the complexity of nearshore habitats, limnological conditions, bumpy shore bottoms, shoals that catch currents carrying sediments, or fish with minds of their own.


1984 ◽  
Vol 14 (5) ◽  
pp. 683-691 ◽  
Author(s):  
B. K. Singh ◽  
J. C. Nautiyal

Price equations for the following product groupings of the Canadian pulp and paper industry were estimated using data from 1955 to 1981: (i) woodpulp; (ii) newsprint; (iii) "other paper and paperboard"; and (iv) "aggregate paper and paperboard," which includes (ii) and (iii). Price equations were formed on the assumption that firms markup average costs of production to set prices. These equations show the effects of factor costs, economies of scale, and technological progress on the prices of the products. They also help understand relevant aspects of production processes. Newsprint and "other paper and paperboard" production costs and prices are most responsive to the prices of material (woodpulp), labour, and energy, while woodpulp price responds more to the prices of pulpwood and energy. Substantial economies of scale are experienced by newsprint and woodpulp sectors. Such economies in the "other paper and board" sector are nonexistent. Technological progress has also contributed to reduction in the costs of production: 4.3% in woodpulp, 4.4% in "other paper and board," and 2.6% in newsprint per annum. Reduction in the cost of obtaining pulpwood to woodpulp sector is important in reducing the cost of paper and paperboard production. Substitution of existing capital with low energy and labour using capital is also required to lower the costs. Also, efforts to modernize the whole industry and the use of available economies of scale are indicated to keep the Canadian pulp and paper industry competitive in world markets.


2004 ◽  
Vol 5 (4) ◽  
pp. 669-690 ◽  
Author(s):  
Astrid Baker

The state played an important role as political and economic manager in postwar New Zealand. By fostering manufacturing, governments aimed to provide paid, productive employment, conserve foreign exchange, and support a welfare state. The history of pulp and papermaking using state-planted pine forests is a good example of a government-business joint venture to create a new export industry and new national wealth. Governments of both major political parties cooperated in capital formation, land use, hydroelectricity, roads, railroads, a modern port, and town construction. This longterm state commitment helped propel the industry toward largescale vertical integration so that it could achieve economies of scale and scope and compete in world markets.


2021 ◽  
Vol 13 (4) ◽  
pp. 2306
Author(s):  
Lanhui Wang ◽  
Zichan Cui ◽  
Jari Kuuluvainen ◽  
Yongyu Sun

Forests and the forest products industry contribute to climate change mitigation by sequestering carbon from the atmosphere and storing it in biomass, and by fabricating products that substitute other, more greenhouse-gas-emission-intensive materials and energy. This study investigates primary wood-working industries (panel, furniture, pulp and paper) in order to determine the development of carbon emissions in China during the last two decades. The input–output approach is used and the factors driving the changes in CO2 emissions are analyzed by Index Decomposition Analysis–Log Mean Divisia Index (LMDI). The results show that carbon emissions in forest product industries have been declining during the last twenty years and that the driving factor of this change is the energy intensity of production and economic input, which have changed dramatically.


TAPPI Journal ◽  
2014 ◽  
Vol 13 (6) ◽  
pp. 19-24
Author(s):  
TROY RUNGE ◽  
CHUNHUI ZHANG

Agricultural residues and energy crops are promising resources that can be utilized in the pulp and paper industry. This study examines the potential of co-cooking nonwood materials with hardwoods as means to incorporate nonwood material into a paper furnish. Specifically, miscanthus, switchgrass, and corn stover were substituted for poplar hardwood chips in the amounts of 10 wt %, 20 wt %, and 30 wt %, and the blends were subjected to kraft pulping experiments. The pulps were then bleached with an OD(EP)D sequence and then refined and formed into handsheets to characterize their physical properties. Surprisingly, all three co-cooked pulps showed improved strength properties (up to 35%). Sugar measurement of the pulps by high-performance liquid chromatography suggested that the strength increase correlated with enriched xylan content.


TAPPI Journal ◽  
2018 ◽  
Vol 17 (11) ◽  
pp. 611-617
Author(s):  
Sabrina Burkhardt

The traditional kappa number method was developed in 1960 as a way to more quickly determine the level of lignin remaining in a completed or in-progress pulp. A significantly faster approach than the Klason lignin procedure, the kappa number method is based on the reaction of a strong oxidizing agent (KMnO4) with lignin and small amounts of other organic functional groups present in the pulp, such as hexenuronic acid. While the usefulness of the kappa number for providing information about bleaching requirements and pulp properties has arguably transformed the pulp and paper industry, it has been mostly developed for kraft, sulfite, and soda wood pulps. Nonwood species have a different chemical makeup than hardwood or softwood sources. These chemical differ-ences can influence kappa and Klason measurements on the pulp and lead to wide ranges of error. Both original data from Sustainable Fiber Technologies’ sulfur and chlorine-free pulping process and kappa and Klason data from various nonwood pulp literature sources will be presented to challenge the assumption that the kappa number accurately represents lignin content in nonwood pulps.


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