Unit 4 - Global Impacts
Economic Impacts
Timber and non-timber products, recreation, and service-based industries are important, both nationally and internationally. Although Canada remains one of the worldâs largest exporter of forest products, non-timber and value-added products will likely play an increasingly important economic role in the forest sector in Canada.
As the forest sectorâs portfolio of bioproducts grows, and consumers expect quality eco-friendly products, Canada is expected to have a competitive edge in world markets.
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Trees and forest plants have provided us with food for thousands of years. Old and new technologies are used to harvest and make traditional foods and make new ones, such as low-calorie sweeteners that can be sold.
Forest Facts
In February 2008, the Food and Agriculture Organization of the United Nations (FAO) and Chiang Mai University organized a workshop called Forest Insects as Food: Humans Bite Back to better understand the what people know about edible forest insects and what needs be done to improve better market them as a food source.
Forest Facts
In Khon Khaen Province of Thailand, 15 000 farmers are involved in the production of edible insects; these are processed and marketed commercially. Cricket-raising and production of bamboo worms have become major cottage industries in Thailand.
Foraged Food

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Traditional foods and medicines are becoming more mainstream and interest in buying foods and naturally sourced health products has recently spawned another major trend: foraged foods. Demand for forest greens, berries, mushrooms
and other fungi is boosting sales of non-timber forest products. Sweden has been doing this for hundreds of years and still does so today. In Sweden, foraged foods are a significant part of forest use and forest management. A
Canadian example can be found in the Abitibi-TeĚmiscamingue region of northern Ontario where three Algonquin First Nations have been researching the economic and market potential of a dozen non-timber forest products since 2015.
Market research results are promising, especially for food, aromatic, and natural health product sectors. The main customer bases are in Ontario, Quebec, the United States, and Europe. More field tests and market research are underway, and community members, including youth, are being trained as harvesters. The communities are also planning to build a processing plant and create a business for selling and distributing local products.
The benefits of this initiative are expected to go far beyond jobs and revenues. The harvesting of non-timber products will give younger community members the chance to gain important traditional knowledge from Elders.
Market research results are promising, especially for food, aromatic, and natural health product sectors. The main customer bases are in Ontario, Quebec, the United States, and Europe. More field tests and market research are underway, and community members, including youth, are being trained as harvesters. The communities are also planning to build a processing plant and create a business for selling and distributing local products.
The benefits of this initiative are expected to go far beyond jobs and revenues. The harvesting of non-timber products will give younger community members the chance to gain important traditional knowledge from Elders.
Traditional Foods
In February 2008, the Food and Agriculture Organization of the United Nations (FAO) and Chiang Mai University organized a workshop called Forest Insects as Food: Humans Bite Back to better understand the what people know about edible forest insects and what needs be done to improve better market them as a food source.
Around the world, people eat some of the 1400 edible insects every day for nutrients. Entomophagy, the practice of eating insects, is reported in 23 countries in the Asia-Pacific region. Insects as a source of protein
are good for forests because they need less water and land than grazing animals. Traditionally, edible insects are collected from the forest; but insect farms are now being established in countries such as Thailand. Researchers are
measuring the potential demand for insect-based food in North America. Insect farming, which can be carried out in urban areas, uses much less land, water, and feed, and produces far fewer greenhouse gases compared to meat production.
In Khon Khaen Province of Thailand, 15 000 farmers are involved in the production of edible insects; these are processed and marketed commercially. Cricket-raising and production of bamboo worms have become major cottage industries in Thailand.

Image Source: Pexels
New
innovations are being developed as consumers and industry look to reduce
their impact on the environment and forests, specifically. Innovations
that reduce forest consumption are being sought after. An example of
this is the development of the Ugastove, an updated version of the traditional cookstove that will require half the amount of charcoal of traditional cookers.
The Canadian government is encouraging research into and construction using wood through the Green Construction Through Wood (GCWood) program, which provides funding for wood-intensive projects or those using innovative wood products and systems. We already know that wood is a renewable resource that stores carbon; having the ability to do more with it is considered eco-friendly.
One goal is to create stronger more durable wood products to replace carbon-intensive concrete and steel. In fact, innovation and advancement in materials made from wood are used in the construction of mid-rise and tall buildings â 6, 10, and even 18 storeys high.
Bamboo, once thought of as a âpoor manâs timberâ has become very popular thanks to new technologies and innovations.
Image Source: Cambridge University
Around the world, people use the simplest form of biomass, wood, as a source of energy and heat, and for daily cooking. Biomass will continue to be the most important source of energy for most people in developing countries until cheaper and more efficient
sources become available.
Since forests are a renewable resource, forests are now being looked to as a possible source of eco-friendly clothing, biodegradable plastics, and green chemicals. The global market potential for bioproducts is estimated to be over $100 billion. Canadaâs well-established forest sector has the potential to thrive.
Many Canadian pulp mills are researching and considering expanding into biorefineries where residues from the pulp-making process can be used to make new bioproducts.
Since forests are a renewable resource, forests are now being looked to as a possible source of eco-friendly clothing, biodegradable plastics, and green chemicals. The global market potential for bioproducts is estimated to be over $100 billion. Canadaâs well-established forest sector has the potential to thrive.
Many Canadian pulp mills are researching and considering expanding into biorefineries where residues from the pulp-making process can be used to make new bioproducts.
- Biochemicals made from the sugar and lignin converted from wood chips are used to manufacture everyday products such as glues, cleaners, solvents and insulation foam.
- Biomaterials derived from wood fibre are used in many energy production and industrial manufacturing processes. For example:
- Cellulose nanocrystals are used to make paints, varnishes, LCD electronics, sensors and composites for planes and cars, and to act as carriers for medical drug therapies.
- Cellulose filaments are used in composites, packaging, and paper and plastic products.
Bioenergy research and technology will increase opportunities for forest companies to diversify into other forest products as consumers try to reduce their carbon footprint and find efficient ways to heat their homes and businesses. Improved wood energy
technologies, including pelletization, gasification, and cellulosic biofuel production all look promising.
Forest Companies in Canada are working to reduce their carbon footprint by implementing innovative technologies such as using more efficient equipment and bioenergy to run their mills. Canadian Forest Industries have cut their own carbon emissions by 44% since 2000.
An example can be seen in Revelstoke, BC. where the community worked together to create a biomass heating system that used wood waste created from the local cedar mill to run the sawmill itself and the community aquatic center, sports arena, and other community buildings. Results from projects like these can be possibly used to help create biomass energy systems.
In the past, wood chips from the production of lumber in Canadian sawmills have been shipped to pulp mills and OSB plants for the making of commercial products. In other countries, wood chips have had little commercial value. Chips and other wood residues can now be made into biofuels, potentially opening up new lucrative markets for forest products.
Wood Pellets
Global demand for wood pellets is increasing as consumers (especially in Europe and North America) search for alternative energy sources. At the moment, wood pellets are the worldâs fastest growing source of bioenergy. Demand for wood pellets is expected
to increase in the coming years, which may have both positive and negative implications on forest resources depending on whether wood for pellets is sourced from sustainably managed forests.
Wood pellet production is also emerging in other countries such as Australia, China, New Zealand, Singapore and Thailand (where some pellets are being made from bamboo). The wood pellet market in Asia and the Pacific is currently small. Increasing investments in local pellet production facilities and in making pellet stoves affordable will boost the use of wood pellets.
Wood pellet production is also emerging in other countries such as Australia, China, New Zealand, Singapore and Thailand (where some pellets are being made from bamboo). The wood pellet market in Asia and the Pacific is currently small. Increasing investments in local pellet production facilities and in making pellet stoves affordable will boost the use of wood pellets.
Biomass Energy
Forest Companies in Canada are working to reduce their carbon footprint by implementing innovative technologies such as using more efficient equipment and bioenergy to run their mills. Canadian Forest Industries have cut their own carbon emissions by 44% since 2000.
An example can be seen in Revelstoke, BC. where the community worked together to create a biomass heating system that used wood waste created from the local cedar mill to run the sawmill itself and the community aquatic center, sports arena, and other community buildings. Results from projects like these can be possibly used to help create biomass energy systems.
Bioproducts
In the past, wood chips from the production of lumber in Canadian sawmills have been shipped to pulp mills and OSB plants for the making of commercial products. In other countries, wood chips have had little commercial value. Chips and other wood residues can now be made into biofuels, potentially opening up new lucrative markets for forest products.
- Biochar can be used to fix contaminated soils and to enhance soils on organic farms. Testing of biochar shows reductions in water and fertilizer use and in overall maintenance costs of treated areas.
- Biocoal is created by heating wood biomass, such as wood chips, without oxygen. Depending on the level of heat applied, different products result, ranging from carbon- neutral coal to water purifiers, gas and gold.
- Biomethanol can be used to make solvents, antifreeze, and fuel.
Forests attract millions of visitors each year. Canada has a strong tourism industry which generates over $70 billion dollars every year. Ecotourism is increasing in popularity around the world and currently makes up 5-7% of the overall tourism market.
Ecotourism is a form of travel which focuses on socially responsible travel, personal growth, and environmental sustainability, and is often connected to meaningful travel experiences where you pay to volunteer your time. Ecotourism,
and especially volunteer ecotourism, are the fastest growing areas of the tourism industry. There is a lot of potential for Canada to further develop ecotourism destinations.
Developing countries are also working to entice environmentally conscious travellers by providing opportunities to volunteer and experience nature and culture. For example, the Belize Mangrove Conservation Project allows volunteers to plant mangrove trees and help with research.
Developing countries are also working to entice environmentally conscious travellers by providing opportunities to volunteer and experience nature and culture. For example, the Belize Mangrove Conservation Project allows volunteers to plant mangrove trees and help with research.
A wide range of energy technologies are available and emerging as society tries to deal with issues like energy security, climate change, and human health. Adoption of these technologies will depend on affordability and supply.
Historically, Canadaâs forest industry has been successful because of its large timber supply, ability to keep costs down, and the close U.S. market. To ensure economic stability, good trading relations with the U.S. must be maintained, and other markets need to be explored. Growth in the Chinese economy, which is expected to slow down, has meant that the market now accounts for 13% of Canadaâs exports.
Over the last decade, the forest industry has seen a continued decline in the demand for paper and newsprint. However, there is an increased demand for packaging materials for shipping products in our global economy.
As noted in Unit 3, the certification, self-certification, and fair-trade product market is growing, and Canadian companies could continue to explore this market. Canada currently has 43% of certified forests worldwide and the Council of Forest Ministers ensures that certification standards are met.
Historically, Canadaâs forest industry has been successful because of its large timber supply, ability to keep costs down, and the close U.S. market. To ensure economic stability, good trading relations with the U.S. must be maintained, and other markets need to be explored. Growth in the Chinese economy, which is expected to slow down, has meant that the market now accounts for 13% of Canadaâs exports.
Over the last decade, the forest industry has seen a continued decline in the demand for paper and newsprint. However, there is an increased demand for packaging materials for shipping products in our global economy.
As noted in Unit 3, the certification, self-certification, and fair-trade product market is growing, and Canadian companies could continue to explore this market. Canada currently has 43% of certified forests worldwide and the Council of Forest Ministers ensures that certification standards are met.
Canadian products are competing on the global market with countries that can make the products much cheaper because of low labour costs, faster growing trees, and poor environmental practices. To stay competitive, Canada needs to keep costs low, explore alternative products and services, and market its forest practices of sustainability.