Small sawmills in Oregon have lost the first round in their fight against timber giant Weyerhaeuser over its alleged monopolistic practices in the alder industry.

The mills, which want to prevent Weyerhaeuser from buying alder logs from state forests, were rebuffed in a decision by the state government.

They had argued that the company’s control of more than 70% of the market allows it to squeeze them out of business. But Weyerhaeuser successfully argued that it had helped transform alder into a relatively expensive wood, creating new jobs and revenue for the state.

Mill owners are now looking forward to two lawsuits set for trial next March.

Meanwhile, Weyerhaeuser is appealing a Portland court ruling which ordered it to pay US$79m damages to a mill for manipulating the alder market and breaking federal antitrust laws.