As Alaska’s timber industry overall continues to struggle, the wood export picture is a bright spot. Owners of private timber in Alaska have expanded their markets for round logs into China and Korea, and have continued to serve longstanding customers in Japan. Discussions with buyers in Taiwan are ongoing.

With strong support from the State of Alaska, several years of uncertainty over phytocertification for the pinewood nematode are on track for resolution. Log exporters have worked with state and federal officials and with the City of Putian, China. A new fumigation facility began operations at the port of Putian early in 2005.

In 2005, a special Forestry Task Force was formed as part of the Taiwan-Alaska Trade and Investment Cooperation Council (TATICC). In June, 2006, the Alaska side of the Task Force visited Taiwan and held discussions with government and industry officials. Tentative agreement was reached on a memorandum of understanding for continued discussion and interaction between the parties. A Task Force delegation from Taiwan is slated to visit Alaska in the autumn of 2006.

A significant new development in forest products trade has occurred over the past 18 months as the new chipping facility at Port Mackenzie began operations. NPI, LLC., is selling white spruce chips to a Japanese customer for use in the manufacture of newsprint, and birch chips to a customer in Korea for conversion to kraft pulp. The chipping and loading facility is operated under contract by NANA Services. The company is investigating other opportunities to expand trade, including possibilities in Taiwan and China.