The BC Council of Forest Industries (COFI) has welcomed new federal measures aimed at supporting Canada’s struggling forest sector, while emphasizing that improving access to economically viable timber remains British Columbia’s top priority.

The comments follow the release of the final report from the Canadian Forest Sector Transformation Task Force and the federal government’s announcement of new funding initiatives.

Industry Backs Immediate Support Measures

COFI President and CEO Kim Haakstad said the industry appreciates the government’s recognition of the pressures facing forestry workers, businesses and rural communities.

The organization expressed support for several newly announced programs, including:

• Funding for the Forest Enhancement Society of BC (FESBC)
• Support for BC Forest Innovation Investment (FII)
• Expanded regional development agency programs
• Enhanced Business Development Bank of Canada (BDC) financing tools
• Additional trade diversification support through the Canada Wood Group

Fibre Access Remains the Biggest Challenge

Despite welcoming the funding, COFI stressed that long-term competitiveness depends on resolving structural challenges within the sector.

According to Haakstad, predictable and economically viable access to wood fibre remains the most critical issue facing British Columbia’s forest industry.

Improved fibre availability is viewed as essential to:

• Restore industry competitiveness
• Encourage private investment
• Maintain forestry employment
• Support rural communities
• Strengthen domestic manufacturing capacity

Team Canada Approach Gains Industry Support

COFI also endorsed the report’s focus on addressing barriers within Canada’s control.

The organization supported a collaborative “Team Canada” approach involving federal, provincial and local governments working together to strengthen the sector.

Industry leaders argue that coordinated policy action will be necessary as companies navigate trade uncertainty, rising operating costs and evolving market conditions.

Why It Matters

British Columbia’s forest sector supports tens of thousands of direct and indirect jobs and remains a major contributor to regional economies.

However, sawmill closures, fibre shortages and declining harvest levels have increased pressure across the value chain, affecting lumber, pulp and paper producers alike.

While new funding provides short-term relief, industry groups continue to call for reforms that improve fibre certainty and create conditions for long-term investment.

Industry Outlook

The federal government’s forthcoming forest sector action plan will likely determine whether recent funding announcements translate into lasting competitiveness gains.

For British Columbia’s forest industry, financial support is welcome, but restoring reliable access to fibre may ultimately prove to be the decisive factor shaping the sector’s future.

Source: BC Council of Forest Industries (COFI)

Last Updated on 12/06/2026 by Jota Machinery