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Nackawic wood prices unfair, say woodlot owners


November 21, 2005
By Pulp & Paper Canada

The wood prices Nackawic’s new owners (the Tembec-Birla Group) are offering are considered unfair by private woodlo…

The wood prices Nackawic’s new owners (the Tembec-Birla Group) are offering are considered unfair by private woodlot owners, the CBC has reported.

David Palmer, who negotiates wood prices for private woodlot owners in New Brunswick told the CBC the proposed prices are the lowest he’s seen in 15 years.

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According to Palmer, when the mill shut down last September, it was paying roughly $100 per cord. Now prices are hovering around $70, which is unacceptable, Palmer contends.

Palmer is frustrated that considering the conditions under which the mill reopened, with taxpayer-funded loans and guarantees, that some of that stability isn’t translating to reassurance for woodlot owners.

“I mean we’ve seen $67.5 million worth of provincial funds go to re-open the mill, there’s guarantees for this and there’s guarantees for that. Well we would like some guarantees too. We’d like to guarantee we get a fair share of the market. We’d like a guarantee that we get a fair price for the wood we sell and of course we want a guarantee that we’re going to be paid for that wood,” the CBC quoted Palmer as saying.


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