 August 15, 2002
"Extending some of the timber sale contracts in Southeast Alaska will help support economic stability in our region by giving purchasers additional time to harvest the timber. This will provide an opportunity to wait for the wood products market to recover from its recent declines." Puchlerz said. With the closings in 1993 and 1997 of the pulp mills, the economy of Southeast Alaska changed significantly. Over the past decade, timber harvests have declined. The lumber market peaked in July 1999. Since then, prices have declined approximately 25 to 30 percent. The 2001 lumber market in Alaska was at its lowest level in 10 years. Purchasers of National Forest System timber in Alaska are unable to harvest the timber sales without incurring losses that threaten bankruptcy, mill closures, or severe economic losses and are at high risk of defaulting on contracts, according to the news release. At the time of the mill closures, the Department of Agriculture committed itself to aiding the timber-dependent communities of Southeast Alaska by advancing the goal of economic stability through employment in the region. Having numerous, economically viable timber sale purchasers maintains market opportunities and increases competition for National Forest System timber sales. According to the news release, a contract extension will help these purchasers by giving additional time in which the market may improve or in which they can mix their high-priced sales with lower-priced sales. In avoiding bankruptcies, mill closures, and defaulted contracts, Southeast Alaska will benefit from more stable employment and the Government will avoid the difficult and expensive process of collecting contract default damages. For more information, contact
Forrest Cole, Forest and Fire Management Staff Officer, at 907-772-3841.
Source of News Release:
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