Posted by RodInNS on November 06, 2010 at 06:16:17 from (216.118.158.123):
In Reply to: Re: OT Timber Sales posted by chevytaHOE5674 on November 05, 2010 at 19:37:06:
Must be a lot of poorly managed mills then.... because the only ones that are still operating here are the ones on the government t!t and they're not hanging on by much. The only reason they have enough wood to operate most days is because they have crown leases that cost them about 1 dollar per metric tonne of fibre and probably hold the loan guarantees on most of the contractors equipement... so those guys can't afford to quit or they're going to lose all their equity... so they just keep peddling and hoping tomorrow will get better even though they're not making anything. Wood has always gone in boom/bust cycles. To my way of thinking it's just plain stupid to be selling wood at the bottom of the cycle.
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