Northern Alberta wood, timber holds firm despite cyclical market

Article content

Alberta’s forestry sector enters a second half of 2026 with cautious optimism, even as weak housing markets supply, U.S. tariffs and softwood lumber duties continue to weigh on the industry.

Article content

Ken Greenway, Alberta Forestry and Parks’ executive director of strategy, policy and economics, said northern Alberta’s timber industry remains relatively stable compared to some other parts of Canada, where forestry communities have faced sharper contractions.

Article content

Article content

Article content

“We haven’t seen huge disruptions,” Greenway said. “Pulp is a weak market and that’s an area of concern, but softwood products prices are slowly moving to the positive side.”

Article content

Article content

He described the sector as being near the bottom of a typical market cycle, with companies already planning detailed harvest work for the fall and winter season.

Article content

“It’s a cyclical market, we’re at the bottom of a cycle at the moment. The current contraction across Canada – we have not seen as much in Alberta. We hope to withstand this storm.”

Article content

Wildfire remains a variable for northern Alberta wood handlers and operators, though Greenway says conditions in 2026 have been far less disruptive than in recent years.

Article content

“This year has been pretty good except for the fire near the High Level area, while last year was much worse around Slave Lake,” he said.

Article content

Forestry companies have become increasingly accustomed to working around fires, sometimes salvaging burned timber when conditions allow. However, Greenway said massive fire seasons like 2023 had the power to overwhelm mills with damaged wood and disrupt supply chains.

Article content

Article content

“Fires are never good, but they are part of annual work (plans) now,” he said.

Article content

Article content

The industry is also becoming more involved in wildfire mitigation. Alberta’s Community Hazardous Fuels Reduction program aims to remove or manage hazardous trees within five kilometres of vulnerable communities, with forest companies helping accelerate harvesting in high-risk zones.

Article content

The program is designed not only to reduce fuel loads around communities but also to create landscape-level breaks that may help slow the spread and intensity of future wildfires.

Article content

“There’s a renewed focus on how timber harvesting can also provide a significant side benefit of reducing wildfire risk,” Greenway said.

Article content

Article content

While Alberta forestry leaders emphasize stability, pressure is mounting elsewhere in Western Canada.

Article content

In British Columbia, some First Nations and community leaders have recently called for major changes to forestry practices, arguing that current approaches are not adequately protecting local economies or ecosystems.

Article content

At the same time, Alberta is investing in new scientific tools intended to improve long-term forest management.