Woodlot owners upset by Irving shipping Crown wood to Nova Scotia
Provincial cabinet authorized J.D. Irving Ltd. to export of more than 500 truckloads of softwood
A group of private woodlot owners says J.D. Irving Ltd. shipped more than 500 truckloads of Crown wood to Nova Scotia for processing this year, costing them business.
The woodlot owners in the South Eastern New Brunswick Forest Products Marketing Board are located close to the Nova Scotia border, making it feasible to truck pulp logs to a mill in that province.
"We found a few markets in Nova Scotia. They were taking some of our wood," said Marcel Maillet, the marketing board's manager.
But in the spring, a large number of trucks leaving the J.D. Irving mill in Sussex also started heading for Nova Scotia.
J.D. Irving Ltd. had been given approval by the provincial cabinet to export 20,000 cubic metres — more than 500 tractor-trailer loads — of Crown wood to Nova Scotia.
"When this happened, suddenly the contracts that we had and were shipping over there, suddenly they were cancelled," said Maillet.
It's important, I think, to realize that every year there is 3.9 million cubic metres of Crown wood used, 20,000 cubic metres is a pretty small amount in retrospect.- Marc Belliveau, Department of Natural Resources
Exporting Crown wood out of the province is not permitted without cabinet approval.
The order-in-council allowing the spruce, fir and jack pine to be exported was signed just weeks after the Alward government announced its new forest management plan that gives Crown licence holders a 20 per cent increase in the amount of softwood they can harvest.
Maillet said he can't make a direct connection between the export permit being issued and the forest management plan, but said it makes sense.
Maillet said he believes the wood was chipped at an Irving mill in Truro and sent out to customers.
The Department of Natural Resources said the logs were surplus pulp wood that Irving had and it did go to the Truro mill.
"It's important, I think, to realize that every year there is 3.9 million cubic metres of Crown wood used, 20,000 cubic metres is a pretty small amount in retrospect," said Marc Belliveau, a spokesperson for the Department of Natural Resources, in an email.
JDI explains decision
In a brief statement, J.D. Irving Ltd. said the company does occasionally ship wood out of the province.
"In order to maintain our commitment to local purchase wood and respect inventory levels, from time to time JDI exports wood to other jurisdictions," said Mary Keith, a spokesperson for J.D. Irving Ltd.
"JDI is continually working with our suppliers and our customers to optimize their supply chain to deliver the maximum value to New Brunswick."
"Our wood supply policies place high priority on securing NB private wood for our NB mills, ahead of wood from Crown land," said Keith.
"In 2012 we purchased a 25-year record volume of NB private wood, and last year in 2013 we purchased our largest volume ever.
"Since 2008 our increase in purchase wood from NB private woodlots demonstrates a proven track record of our commitment to buy wood from NB private woodlot owners."
In June, the Natural Resources department said a year-end review for 2013-14 showed the highest amount of sales from the province since 2005-06.