US$12 billion impact to forest products sector following KatrinaFriday 30 Sep 2005 The forest products sector was the single worst affected industry in Katrina's path, according to reports coming out of the US. Although too early to accurately assess, impacts from Hurricane Katrina on the forest products industry could approach US$12 billion. The first governmental estimate put out on 15 September estimated that Katrina damaged or destroyed approximately 19 bbf of standing timber with an estimated value of US$5 billion in Mississippi, Alabama and Louisiana. The Mississippi Forest Recovery Task Force more recently estimated pulpwood and sawn timber damaged in the state equal to approximately 60 million tons. This volume represents about two year's of annual harvests for the state. Other factors impacting on the cost of the hurricane on the industry include skyrocketing fuel costs in harvesting nationwide and near the Gulf impact area, lost production and inventory including lumber, plywood, pulp, paper and board. |
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