Got Wood? Fierce Competition for Paper Pulp

10 May

Canadian Business: The demand for some types of paper, like newsprint and other printing and writing paper will decrease in the next decade but the many other uses for wood fibre will mean dramatic increases in global demand overall, according to a new report from PricewaterhouseCooper.

The Canadian forest, paper and packaging industry is facing intense pressure. PwC’s Canadian Forest, Paper and Packaging Leader Bruce McIntyre says: “Companies from a diverse array of industries – energy, utilities, chemicals and potentially many more as biomaterials evolve – will compete with FPP companies for control of forests, or at least access to their fibre, and the best economic use of the resources they provide.”

As a result, demand will outpace supply and increasing competition for fibre will be a key factor of future supply chains.

“The world’s forests will make a reduced contribution to meeting our increasing needs for wood fibre,” says McIntyre. “Many of these forests are economically inaccessible or are sensitive to disturbance. Instead, these forests are going to be valued for their conservation benefits and that will result in restrictions on industrial wood output.”

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