Mission’s forestry operations are producing solid profits for the municipality.
In the second quarter, the forest operations produced a net profit of $175,319, much better than an expected loss of $17,954. While the sales volume of logs was actually lower by 1,243 cubic metres, the return was better than expected, with each cubic metre selling for $22.40. The price of lumber has been strong for much of 2016, due to solid housing starts in both Canada and the United States and strong exports to Asian markets.
In the first six months of the year, the forestry operations have shown a net profit of $744,063. The 2016 budget calls for a profit of $256,037 for the year.
The district’s forestry reserve fund now stands at $2,427,687. While it is expected to decrease due to some spending commitments in the current quarter, the fund stands to return more money to district operations than had been expected this year.
Mission is the only Lower Mainland municipality with its own tree farm licence, and logging on Mission lands is a steady contributor to the District of Mission’s budget.