What happened: On Tuesday, August 13, 2024, the Georgia Senate’s “Advancing Forest Innovation in Georgia” Study Committee convened with leaders from the forest industry and landowners across the state. The discussion focused on the pressing issues impacting the sector, particularly in relation to markets.
- The study committee is formed by Sen. John Kennedy (President Pro Tem of the Senate, R-Macon), Sen. Russ Goodman (Chairman of Agriculture and Consumer Affairs, R-Cogdell), Sen. Frank Ginn (Chairman of State and Local Government Operations, R-Danielsville), Sen. Steve Gooch (Majority Leader, R-Dahlonega), Sen. Sonya Halpern (Minority Vice Chair, D-Atlanta), and Sen. Larry Walker (Majority Secretary, R-Perry).
Why it matters: A growing disconnect between an increased supply of local wood products and declining demand from mills and manufacturers is placing significant strain on local forest product producers. Depressed and declining markets highlight an urgent need for innovation in the forestry sector — both to bolster existing markets and create new opportunities for Georgia wood.
- Georgia’s strong economic conditions and successful forest industry stewardship practice have resulted in an increase of local wood supply and fostered a healthy forest products market within the state.
- Mill closures and decreased manufacturing capacity in neighboring states has led to an influx of wood products from their markets into Georgia, resulting in an oversupply that is driving down prices for producers.
- Forest products have tremendous potential in innovative products that contribute to the carbon-friendly economy here in the State and throughout the Nation, including mass timber construction, Sustainable Aviation Fuel (SAF), lignin-based batteries, and bioplastics, among others.
- The Senate study committee is exploring opportunities to proactively engage new markets for forest products, with the goal of setting up the sector for the next half century in terms of innovation that sustains the sector economically.
What’s next: The Senate study committee will reconvene in September to continue discussions on how the state legislature can support the forest industry’s innovation efforts.
The bottom line: Georgia’s strong economic conditions and historically successful forest industry are at a crossroads. To maintain the vitality of this crucial sector, it’s essential to explore innovative approaches that can revitalize and diversify market demand.