Pine beetle epidemic will have continent-wide economic impact: report

One of North America's largest-ever natural environmental disasters

Interior sawmills will start running out of good timber within three to five years because of the mountain pine beetle epidemic according to a comprehensive report on the beetle's economic impact.

The report by the International Wood Markets Group describes the beetle infestation as one of North America's largest-ever natural environmental disasters. It will have a continent-wide economic impact, shutting an estimated 16 Interior sawmills and removing up to half of Canada's share of the U.S. lumber market'

The pine beetle is expected to kill a billion cubic metres of B.C. timber and while an intense salvage program has been underway for 10 years, the end of sawlog quality wood is now in site, says the report.

"After some expected gains in the lumber markets between 2010 and 2013, the B.C. Interior lumber industry will need to begin reducing production and/or closing mills, and this impact on the U.S. market will soon be profound," Russell Taylor, President of Wood Markets Group said in a news release.

"Sawlog shortages caused by the mountain pine beetle could trigger the permanent closure of about 16 large primary sawmills and/or plywood production facilities within the B.C. Interior by 2018," said Jim Girvan, one of the study authors.

It is one of North America's largest-ever environmental disasters and while the salvage program has been underway, the economic impact has been forestalled until now.