Christopher Gaston

Biotechnology in forestry: Technological and economic perspectives

Abstract This paper provides an assessment of the state of the art and future prospects of biotechnology application in forestry. In particular it examines the influence of (1) derived demand for research and development (R&D), (2) the nature of R&D suppliers and their motives, and (3) the regulatory system on rates of innovation of biotechnology in forestry. The paper identifies areas of “market failure” caused by policy-related uncertainty, tenuous land ownership structure, long intergenerational horizons and the public nature of many of the goods and services produced by the forest. Improvements in tenure and stumpage systems to increase the certainty of property rights, provision of compensation for public-goods production and increases in the level of funding for R&D are required. In the short run, funding of technology transfers to forestry from other fields of biotechnology applications are likely to provide the highest marginal returns on investment. The paper concludes that biotechnology in forestry applications holds a significant promise in the long run. It offers the possibility of improved forest conservation as well as increased quantity and quality of timber harvested, allowing for the customization of fiber production. Customization of fiber production may result in downstream product differentiation and cost reductions.

Demands on lumber suppliers within the US prodealers channel.

Prodealers are building materials suppliers whose client base comes mostly from the homebuilding industry. Because they represent an important channel for wood products, a 2007 survey of US prodealers examined (1) lumber attributes demanded, (2) products and suppliers requirements, (3) trends in substitution between countries supplying lumber to the United States, and (4) trends toward prefabrication of structural components. Forty-six prodealers were surveyed; most answered for multiple stores. On average, respondents purchased 60 million board feet of lumber in 2007, and their overall consumption was estimated at 2.76 billion board feet. By far, the most common grade in the prodealer segment is dimension lumber (No. 2 and Better), and the most common type is the spruce-pine-fir species group (SPF). Within the sample, 5 percent of US lumber imports came from offshore. Canada supplied 51 percent of the lumber purchased by respondents, and the United States supplied 47 percent. Wane as well as warp and twi...

Visual Wood Product Trends in North American Nonresidential Buildings

Abstract An exploratory Web survey was implemented in 2012 of 250 architects in North America that specialize in nonresidential building design. Approximately one-third of the respondents had used ...

Integrating operational planning decisions throughout the forest products industry supply chain under supply and demand uncertainty

ABSTRACT In the face of both supply and demand uncertainty, the forest products industry needs advanced supply chain management models that can significantly improve their competitiveness in global markets. This paper aims to provide a decision support tool for integrating operational planning decisions with inventory management of all agents in a multi-product forest industry supply chain under supply and demand uncertainty. A pulp mill is considered as the nodal agent and an integrated simulation-based optimization model is developed, which minimizes the cost of the entire supply chain for different customer satisfaction levels, while material and information flow both upstream and downstream of the pulp mill. The incorporation of a merchandizing yard helps in managing risks associated with supply and demand uncertainty in the forest products industry supply chain. There is a net annual cost saving of

Optimal production-inventory model for forest products industry supply chain under demand and supply uncertainty: Case study of a pulp mill in Ontario

17.4 million by including a merchandizing yard in the supply chain. However, there is an increase in handling, holding and transportation costs. Comparing the shortage cost to the handling, holding and transportation costs, it is observed that as long as the shortage cost is above

The future of wood products: What is the prognosis?

6.80 per m3, it is viable to keep the merchandizing yard. The merchandizing yard not only absorbs supply shocks for the pulp mill, but also reduces the safety stocks on the downstream side. This integrated supply chain model can be used for operational planning decisions that minimize overall cost for any agent in the supply chain.

UTILIZATION OF LODGEPOLE PINE (Pinus contorta) MUKA (FOLIAGE) BY SHEEP

Abstract The production planning models used in the forest products industry do not recognize the demand and supply uncertainty, and as such do not work in unison with the inventory management models. An integrated production planning and inventory management model of a forest products industry is developed in this paper. The objective is to maximize the net annual profit of the forest industry under demand and supply uncertainty. The model is formulated as a simulation-based optimization model. A case study of a pulp mill in Northwestern Ontario shows that supply and demand uncertainty causes a net annual loss of

Wood use in nonresidential buildings: Opportunities and barriers

59.9 million to the pulp mill, whereas the introduction of a merchandizing yard in the supply chain not only absorbs shocks caused due to uncertainty, but also increases the net annual profit of the pulp mill to

The economics of timber supply: Does it pay to reduce harvest levels?

26.7 million. However, the merchandizing yard is viable only if the sales price of pulp is above a threshold level. The integrated supply chain model can be applied to any forest products industry as it considers the entire supply chain structure and manages all business decisions both upstream and downstream in the supply chain.

A trade flow analysis of the global softwood log market: implications of Russian log export tax reduction and New Zealand log production restriction

The Canadian wood products industry continues to have an overwhelming reliance on commodity sales to the United States housing market. The industry has extracted attractive profits from this approach in the past, first by taking advantage of abundant, inexpensive old-growth fibre and then by investing in cost-minimizing technologies. But like all investments on inputs for production, diminishing returns have been reached and new solutions must be sought to recapture competitiveness and profitability into the future. This paper addresses this challenge by focusing on the role of research and development and the transition into a sustainable, knowledge-based industry. Key words: Canadian forest industry at the crossroads, productivity, competitiveness, knowledge-based, role of research and development