Value-Added Wood Processing Opportunities Increasing the Benefits Communities Receive From The Forests In British Columbia, 1998 Environmental Conference Proceedings

The paper examines value-added wood processing investment opportunities in Northwest British Columbia as a means of increasing the benefits communities receive from the forests. A businesscase study methodology was used to analyze eleven value-added wood processing investment opportunities. The results indicate that the majorobstacle faced by potential value-added investors is access to secure, long-term fibre, rather than technology orproduction issues. An assured source of fibre helps smaller firms in obtaining financing (i.e., fibre acts as collateral)and reduces the firm’s cash-flow uncertainty. Current financial assistance programs available to support value-addedcompanies are generally inadequate in meeting the financial needs of these companies. The paper discusses some ofthe obstacles facing the small value added companies located in Northwestern British Columbia, and suggestsalternative forms of assistance that may help these companies expand in difficult market conditions.