Supply, Demand and Policy Issues for Use of Aspen

There is currently considerable expansion of aspen utilization in the Prairie Provinces, and particularly in Alberta. This expansion includes the establishment of both oriented strand board mill capacity and pulp mill capacity. The pulp mill expansion is geared predominantly to aspen utilization. These developments arise out of the adoption of new technology and are demand driven. In this paper, the derived demand for aspen roundwood is examined. It includes a review of panel product and pulp consumption patterns. On the supply side, factors such as stumpage availability are examined. There is some uncertainty about the economic viability of aspen utilization as a result of demand and trade patterns as well as domestic and trade policies. The paper concludes with an examination of some current policy issues and the manner in which they may affect the future of aspen utilization.