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Tolko Company: Sustainable Forest Management In Canada

1063 Words5 Pages

The forest is a complex ecosystem that interlinks the social, economic and political aspect of the world (Gladstone, 2009). Canada has the privilege to have 347 million hectares of wood forest, which is equivalent to ten percent of the world forest population. Among the large quantity of forest in Canada, just 24 million hectares are protected for animals that are considered in danger species, natural heritages, and parks. The remaining forests are isolated that make it very hard for people to be able to access to them. Implementing forest management regulation, the forest is been able to be sustainable without depleting its natural resources. Another interesting fact is that Canada is home for 180 tree’s species. This paper will discuss …show more content…

Recently, the company has a license to manage 22 million acres of woodlands (Purdy,2016). After the approval of Tolko’s operation and management plans from Manitoba Conservation, the Forest License Agreement and the Manitoba Forest Act had assigned to Tolko the rights to use the Nelson River, Saskatchewan River and Highrock forest sectors. Since then, the company has been planting over 100 million of seedlings. Their annual allowable cut is 1,800,000 cubic metres of softwood and 890,000 cubic metres of hardwood based on the Sustainable Forest Management in Canada. Tolko Company harvests 1,224,545 cubic metres of softwood annually, which is below the standard. Their main productions on The Pas are Kraft papers for agricultural packaging and lumber. The sawmill produces 2x4, 2x3, 2,6 and 1x4 planks, studs, structural light framing and structural joist (Gladstone, 2009). The input use to create paper products is from wood chips that have been produced at the sawmill. The use of wood chips is considered a less expensive alternative, which is helping to keep the cost down. Tolko Manitoba has an annual capacity to produce 170,000 tonnes of Kraft paper. In 2014, the company had exported 164,000 tonnes of paper; 33% to United Stated, 18% to Mexico, 15% within Canada and 34% to other markets. Nevertheless, even with the high production volume, Tolko Manitoba still struggle with the high cost of maintaining business operation. Also, it is a challenge to compete with developing countries, where their products are less expensive based on their dollar

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