Forestry

A diverse and abundant resource makes Ontario the logical choice

Ontario has a vast and diverse forest resource to support your business needs. Whether you are looking to make lumber, pulp, or value-added products, we have what you need.

$18 billion and growing

Ontario’s forest industry generated $18 billion (CAD) in total revenues in 2018 – and there is room for growth. The province’s forests can support a sustainable harvest of 30 million cubic metres annually, not all of which is currently being used. The Ministry of Natural Resources and Forestry works with forest management unit managers and existing industry stakeholders to estimate the available wood supplies on each management unit in Ontario. This information can be used by potential investors looking for new manufacturing opportunities.

A productive resource that meets your needs

Ontario is home to 2% of the world's forest and is one of Canada’s most forested regions. Ontario’s forests consist of a variety of valued species including spruce, pine, poplar, birch, oak and maple which support a broad range of in-demand products such as lumber, pulp, furniture, flooring, oriented strand board, plywood, veneer and wood pellets.

Ontario’s forest sector is supported by a reliable and well-maintained network of roads to help you access the resources and raw materials you need. Through government cost-sharing programs, approximately 20,000 kilometres of forest roads are maintained and 800 km of new roads are constructed each year to provide reliable and cost-effective access to the province’s forest resources.

Secure access to your resources

The vast majority (81%) of Ontario’s forests are owned by the province. Ontario’s government operates within one of the world’s most financially stable jurisdictions, ensuring secure, reliable and long-term access to the resources you need to succeed.

Ontario’s available fibre supply consistently exceeds the actual volume harvested annually, giving forestry companies the confidence to invest.

Available and Actual Harvest Volume over time

A recognized leader in sustainable forest management

The global marketplace is increasingly demanding proof that wood products are coming from well-managed forests. As a demonstrated leader in sustainable forest management, Ontario provides companies with a distinct advantage on the world stage.

International Recognition

International studies by both Finnish research company Indufor Oy and Yale University have concluded that Ontario forest management standards are among the most responsible in the world and that Canadian provinces, including Ontario, are global leaders in sustainable forest management.

Canada (British Columbia and Ontario) and Australia (New South Wales) are the countries with the most demanding legislation on the studied elements

Third-Party Certification

Ontario is a world-leader in third-party certification. Currently, over 75% of Ontario's Crown-owned lands that contribute to commercial forestry are certified to internationally recognized standards for sustainable forest management practices. Globally, it is widely reported that only about 10% of forests are certified. When it comes to customer assurance, Ontario is ahead of the pack.

Recent surveys indicate that the demand for certified forest products will only continue to grow. By investing in Ontario, you are securing your access to the global marketplace.

Competitive cost reducing programs

Ontario’s commitment to creating a competitive business environment does not end with low corporate taxes – there are multitudes of programs in place to help reduce costs for the forest sector across the board, including:

• The Northern Industrial Electricity Rebate (NIER) Program - provides investment of up to $120 million annually to support large industrial electricity users in Northern Ontario. Since 2010, the NIER program has provided $313 million in direct rebates to forestry companies.
• The Provincial Forest Access Roads Funding Program - since 2005, the roads program has contributed $920.7 million towards the construction and maintenance of forest access roads.

Other key initiatives in place to reduce costs and provide financial support to the forest sector include:

• Industrial Conservation Initiative
• Northern Ontario Heritage Fund Corporation – Northern Business Opportunity Program
• Southwestern Ontario Development Fund
• Eastern Ontario Development Fund
• Forest Sector Investment and Innovation Program
• Canada-Ontario Job Grant

A commitment to innovation

Ontario is a proven leader in forest product innovation. Through strategic partnerships and financial support for various research and development initiatives, Ontario’s forest sector is entering a new era of the bio-economy where value-added bio-chemicals and bio-materials are produced alongside existing products such as pulp and lumber.

Today, wood fibre from Ontario is already being used in the development of new and innovative products such as car doors, clothing, chemicals, cosmetics, and liquid bio-fuels.

Research and development

As part of Ontario’s efforts to transform to a new bio-economy, the province established the Centre for Research and Innovation in the Bio-economy (CRIBE) to support the creation of new and innovative jobs and businesses in the forest sector’s expanding bio-economy.

Since 2009, CRIBE has invested over $23 million in research and development projects, leveraging over $96 million in capital investments. That means that for every research dollar spent, almost four dollars have been invested in developing new product lines, demonstrating a high degree of investor confidence.