The Province of British Columbia, in it's recently released budget projections and the Ministry of Forests and Range service plan, is forecasting a turnaround in forest products markets and increased revenues.
Lumber prices averaged $168 USD / 1000 boardfeet in 2009, down 25% over 2008 levels. The Province is estimating an average price of $200 USD in 2010, rising to $300 USD by 2013 with improvement in the US economy, Canada's largest lumber export market.
Forestry revenue to the Province has dropped sharply in recent years. In 2008/09, $558 million forestry-related tax was collected by the Crown, down 49% from 2007/08 levels. This is estimated to decline to $345 million for 2009/10, but will increase by $140 million in 2010/11 with improving forest product markets.
