Regional Markets for Alder: a good news bad news story

1
(No Transcript)
2
Regional Markets for Red Alder a bad news good
news story

• Jon J. Tweedale
• Assistant Division Manager
• Washington State Department of Natural Resources

3
Managers attitudes about red alder have changed
Favoring red alder in thinning for multiple
resource management
Poisoning red alder to release conifers
4
So What has caused the change ?
Shorter Rotations !
5
Research shows that red alder will out compete
conifers during early periods of growth.
IRR DF -7.35 RA -8.45
Source Red Alder Managers Handbook for British
Columbia, Peterson, et. al., 1996. Hardwood
Silviculture Cooperative.
6
Technological advances utilizing more raw
material producing better quality products
7
Growth Market Niche
Red Alder logs supply well-established specialty
niche markets for furniture and cabinets. IE
Mo Money
8

• We are all very displeased with historical drops
  in Doug-fir prices-commoditization!

9
Opportunity in marketing Red Alder
10
Long-term trend analysis suggests a growing market
11
Washington State DNRStumpage Price from
FY94Marketing and Sales Program
12
(No Transcript)
13
So What?

• Price incentives
• Create opportunity
• Offer long-term diversifying opportunities
• Offer value-added participation by suppliers and
  manufacturers
• Create INNOVATION

14
DNR Marketing

• Value oriented marketing into niche markets
• New SHC has increased DNRs opportunity to supply
  more
• Diversifying into alternate markets makes prudent
  trust management sense

15
Estimated DNR Red Alder Volumes
30 increase
16
Volume and Product Optimization-Statewide
17
(No Transcript)
18
(No Transcript)
19
(No Transcript)
20
In Summary---The Good News.

• Traditional markets have dramatically changed,
  allowing a niche focus to create value
• DNRs business strategies have changed to
  recognize more value in all species-IE Alder
• With Alder being one component of a broader
  value-creating strategy..the good news is alder
  seems to be a bright light of opportunity.