Marc Meassells, a research and extension associate with Mississippi State University’s Department of Forestry, recently predicted the state’s timber harvest value at US$1.3bn in 2006, compared with US$1.45bn the previous year.
“The decreased value for 2006 is a result of the decline in prices for all products,” said Mr Meassells. “Mixed hardwood sawtimber declined by almost 10%, while oak sawtimber fell by nearly 14%. Pine pulpwood prices have declined more than 9% and hardwood pulpwood prices declined 18.6% for the year.”
Mr Meassells said Hurricane Katrina interrupted timber production and disrupted timber markets, especially in south Mississippi.
When harvest resumed, he said, many landowners worked quickly to sell damaged trees before they lost more quality – dumping a large amount of poor quality trees on the market, and depressing prices.
The situation has not been helped by rising imports and energy costs, as well as a decline in the residential housing market.
Glenn Hughes, extension forestry professor in south Mississippi, said the housing market historically had a significant influence on timber prices, a fact that he said continued to be true despite increased use of imported wood, primarily from Canada.
“Most of the wood produced in Mississippi remains in the south, and much of it is used for residential purposes,” said Mr Hughes. “That means housing has a huge impact on our market – and therefore on timber prices.”
