Mill Co-product and Residual Inventory Market Study

Mill Co-product and Residual Inventory Market Study

A Nextfor Case Study

Ontario has a well-established primary forest industry. Through our Forest Innovation Nextfor Forums, we work to support and advance innovation in Ontario’s forest industry to overcome operational challenges. Through these forums, we have identified that there is a need to diversify the forest supply chain. A diverse forest supply chain would allow the primary forest industry to access more of their allocated sustainable harvest.

The objective of the “Mill Co-product and Residual Inventory Market Study” was to develop an understanding of the inventory and market for forest processing (mill) co-products and residuals (the fibre that’s left over after manufacturing primary forest products) in the Southeastern Ontario region. The case study worked to answer the questions

  • “What type of and how much fibre is left over?”,
  • “Who could use this residual fibre in a sustainable, economically feasible way?” and
  • “Would a new entrant support the primary forest industry?”
The Case Study

This case study was conducted by LinksEdge Ltd. To complete the study, LinksEdge Ltd. contacted 18 mills in the region and 4 additional, related companies. Information about mill co-product and residual types and quantities were compiled and summarized in the final report. LinksEdge Ltd. also investigated current and future potential customers for these co-products and residuals.

Key Findings

What did we find? There is significant opportunity in Southeastern Ontario to optimize operations and balance multiple consumer needs.

If existing facilities in the region were able to increase their capacity to produce residuals (for example, if a new entrant were to buy those residuals) there would be an increase in access to the fibre needed for the primary forest products in the area. What does this mean? Synergies between new entrants who can utilize mill co-products and residuals and existing forest industry in the region could benefit both parties.

Interested in this study?

Access the Case Study Findings