Briefing Paper
Western Juniper Commercialization Project
"Creating a New Industry to Help Implement Ecosystem Management Objectives"
Prepared for
Improved Wood Utilization Opportunities for Meeting Ecosystem Management Objectives
Joint NFS/Research/State & Private Forestry Meeting
Forest Products Laboratory, Madison (WI.) - January, 1998
By Larry Swan, Winema NF (Klamath Falls, OR.)
Western Juniper Project Liaison
Contents
The Western Juniper Commercialization Project (Project) is an ad hoc effort to develop an
integrated industry which uses western juniper (Juniperus occidentalis) to ensure long-term
sustainability of the resource, benefit landowners and local communities, and fully utilize and
add value to surplus raw material produced by ecosystem management activities(1).
Why is It Necessary to Commercialize Western Juniper?
There are approximately 3.8 million acres of western juniper woodlands within the species'
primary range of eastern Oregon, northeastern California, and southwestern Idaho (10% canopy
cover or more). About 58% of this acreage is on public lands managed by the Bureau of Land
Management, U.S. Forest Service, State, Indian tribes, and other Federal agencies, and about
42% is privately owned. There are literally millions more acres of scattered juniper and areas in
which young juniper are just now becoming apparent on standard resolution aerial photography.
Western juniper is the least-utilized wood fiber resource in this region. Total woodland volume
is estimated to be at least 691 million cubic feet, of which about 39% is on private lands and 61%
is on public lands. Volume data for the most part do not include western juniper on forested
lands which, according to industry, has the best commercial potential because of form and
access.(2)
The area dominated by western juniper represents a three- to ten-fold increase since the late
1800s. The expansion and increasing densities of juniper woodlands greatly concern private landowners, government land managers, and scientists. Many juniper-dominated sites show clear
evidence of watershed degradation, loss of site productivity, decrease in forage production, loss
of wildlife habitat, and overall-reduction in biodiversity.
Numerous private landowners undertake juniper thinning or clearing operations every year in
eastern Oregon and northeastern California, affecting an estimated 5,000 to 10,000 acres per
year. Due to lack of demand and markets, as well as economics, the juniper removed is often
piled and burnt, or simply left to decompose after being knocked-down or cut (estimated to
amount to 1.1 to 2.3 million cubic feet of juniper bole wood per year(3)). Government agencies are
currently less active in clearing juniper than private landowners, due to concerns about legal
challenges and lack of funding for such projects.
Landowner costs for simply knocking trees over with mechanical equipment, a common method
used to thin juniper woodlands, average $35-$50 per acre. Manual falling, delimbing, and slash
scattering can run as high as $250 per acre. As one rancher puts it: "I feel like I'm buying my
land a second time due to the costs of beating back the juniper."
Thinning and clearing operations are expected to continue whether or not a commercial industry
develops for juniper, and despite a decrease in government subsidies. According to Tom Birch, a
Forest Service scientist who summarized data from a national study of forested land owners and
their harvest plans, there are probably at least 3,000 ranchers in Oregon and California who plan
to thin their juniper woodlands within the next 10 years, at a minimum cost of more than $13
million dollars.(4)
How Did the Western Juniper Commercialization Project Get Started?
The Western Juniper Commercialization Project was begun as a result of feedback from a Forest
Products Industry focus group run by the Winema National Forest (Klamath Falls, Oregon) in
1992. In just 18 months, over 1,200 manufacturing jobs were lost out of a total regional
manufacturing employment base of less than 4,000. Reasons for the large loss in jobs included a
reduction in Federal timber supply and lack of privately-owned timber in the region (over 65% of
the land in Klamath County is managed by either the Forest Service or Bureau of Land
Management). The Forest Products Industry saw juniper as a potential new source of fiber and
wanted to find cost-effective methods to utilize juniper cut down by ranchers to improve grazing
lands.
How is the Project Coordinated and Funded?
Project activities are coordinated by an ad hoc Steering Committee made up of industry,
landowners, university extension, government agencies, and non-profit economic development
organizations. Logistical support and facilitation of the Steering Committee and its projects are a
combined effort of the Forest Service, a retired private business consultant hired by the Steering
Committee, a local non-profit economic development organization, Oregon State University
Extension, and the Northwest Wood Products Association.
Western juniper commercialization start-up activities were funded by a combination of Forest
Service and State of Oregon programs. About $50,000 total was expended in the first two years
(1993-94) to gain manufacturing and marketing experience, and establish commercial potential.
Forest Products Industry and private landowner interest led to two State of Oregon Multi-Region
Strategy Governor grants (1995 and 1996).(5)
Cash and in-kind contributions have totaled over $1 million dollars over the last five years
(1993-97): About $250,000 came from a mixture of Federal, Forest Service, and university
programs; $360,000 from the Oregon Multi-Region Strategies Program; and approximately
$500,000 from private industry. Forest Service technical assistance has been critical in
generating grant funding from non-Forest Service sources.
What Has Been Accomplished?
Commercialization of a previously non-commercial species is complex. The Western Juniper
Steering Committee has pursued projects in 12 key strategic areas:
Examples follow for selected areas:
Primary and Secondary Processors - There were probably three to five cottage industry-size
businesses who produced and sold juniper products on a part-time basis when the Project began
over five years ago. Total lumber production averaged less than one thousand board feet (MBF)
per month. There are now over 35 companies who manufacture juniper on at least a part-time
basis, with total lumber production averaging more than 12 MBF per month.
Business Interest - Over 100 different partners have participated in commercialization activities.
About 50 of these were Forest Products Industry companies. The support of the agriculture
industry, especially the Oregon Cattleman's Association, has been critical in maintaining project
momentum.
Biological and Forest Products Science - There were large knowledge gaps about western juniper
from both a scientific and commercial perspective six years ago. Although gaps still exist, there
has been progress. For example, biological and rangeland science research projects underway
have increased from about 10 in 1993 to over 20 today (most of the projects are focused on key
management issues).
Forest products research assistance comes from various institutions. For example, the Forest
Products Laboratory was instrumental in evaluating exterior finishes and fiber suitability for
composite products. Considerable progress has also been made in defining basic physical and
mechanical properties of western juniper, as well as its drying and manufacturing characteristics.
Over 50 commercialization projects have been completed, of which about 50% have formal
written reports.
Marketing - The Project is actively working to expand both log/lumber and fiber markets. The
marketing emphasis for log/lumber products has changed during the last couple of years from
commodity products (e.g. fencing and decking) to specialized niches (e.g. gifts and novelties,
architectural accents, store displays, and custom log and timber frame homes). Although on a
small scale, western juniper products are being nationally distributed and are in one retail store
chain coast-to-coast (Pendleton Woolen Mills).
In terms of fiber markets, semi-clean juniper chips (less than three percent bark content) have
been accepted since 1992 by a hardboard plant which uses a dry process to manufacturer exterior
siding. Very little juniper is utilized though, due to low chip prices ($45-$55 per bone dry ton in
the Klamath Falls area) and the high costs of juniper harvest. Other commercial applications for
western juniper fiber and oils are being investigated by a unique consortium of research interests
at Oregon State University, involving five different departments and schools.
Communication and Technology Transfer - The mailing list for the Western Juniper Newsletter
has increased from 150 in 1994 to over 800 today. About one-third of the mailing list is
composed of government agency employees. Hundreds of people attended two "forums"
sponsored by the Steering Committee, as well as management field training sessions. Two
western juniper web sites now exist - one for private industry and commercial gain (www.westernjuniper.org), and one run by Oregon State University Extension for science and
management topics (juniper.orst.edu). An Oregon State
University Wood Products Extension Agent now spends at least 50% of his time on juniper
issues.
Integrating Interests and Activities, and Building a Sustainable Organization - The ad hoc
Steering Committee was recently recognized for its partnerships and progress towards creating a
new industry with the State of Oregon's Governor's Cup Award for Industry Excellence. Western
Juniper Industry members also recently adopted a voluntary assessment to sustain marketing,
technical assistance, and communication. Over $15,000 is expected to be generated by the
"voluntary assessment" the first year. The stated goal of the Steering Committee is to generate
$150,000 per year, which is needed to support a small association and continue marketing and
technical assistance activities.
What Has Worked?
Active Forest Service Involvement - The Forest Service has taken an active role in
commercialization activities and Steering Committee facilitation. Assistance ranges from
designing industrial and marketing trials to grant writing. Forest Service technical assistance has
been critical in generating almost $500,000 of grant funding from non-Forest Service sources.
Sustained involvement has also established credibility with industry, land owners, and funding
sources.
Utilizing Forest Service Organizational Resources - The Forest Service plays a unique role in the
commercialization process because of its mission and organizational resources, which allows it
to straddle biological and forest products research, land management activities, and rural
community assistance issues. There is no other government agency or private organization
which can straddle the multiple goals of ecosystem management like the Forest Service.
Stimulating Private Industry Interest - The Project was begun as a series of manufacturing and
marketing trials designed to stimulate industry interest. The underlying premise is that someone
has to make a profit to help make ecosystem management more affordable. Rural job creation
and retention are critical to attract public economic development funding support.
Collaborative Partnerships and Communication - Close attention is given to identifying, clearly
defining, and nurturing partnerships with those who have "the most at stake". This has resulted
in strong relationships with individual private companies, forest product industry organizations,
private landowners, the agriculture industry, and universities. The ad hoc Steering Committee,
with a membership composed of a cross-section of affected interests, has been critical in
generating and sustaining partnership projects.
Hiring an Industry Facilitator and Private Business Consultant - A Western Juniper Industry
Facilitator was hired with special State of Oregon grant funding to facilitate and connect small
private businesses to fill orders for juniper products. This was critical for an industry which
lacks established infrastructure and consistent orders, and when orders over a couple of hundred
board feet often require linking raw material, primary processors, dry kilns, and secondary
processors. A large part of the success of the Project over the last 12 to 18 months can be
attributed to the Industry Facilitator.
A retired private business consultant was retained by the Steering Committee to assist with
Steering Committee logistics, and business planning and marketing projects. This freed-up
Forest Service Project Liaison time for assisting in areas where private business was not as
experienced, such as organizing grant proposals and commercialization projects.
Integrating Commercial Objectives and Ecosystem Management - Development of a new forest
products industry based on material produced from ecosystem management activities is complex.
Twelve critical, interrelated strategic areas have been identified for commercialization success
(see previous section - What Has Been Accomplished?). The integrated commercialization
strategy is used in a variety of ways, ranging from project issue analysis to organizing articles for
the Western Juniper Newsletter.
Project Start-Up Funding - Active Forest Service involvement and a small amount of Forest
Service and State of Oregon project funding (less than $50,000 during the first three years of the
Project) helped kick-start partnership projects with industry, private landowners, and government
agencies, and stimulate commercial interest. Start-up projects provided a core of private partners
and track record necessary to compete for public economic development funding.
Major Challenges Facing Development of a Sustainable Western Juniper Industry?
Relevant and Compatible Resource Inventory - Western juniper inventory data from Forest
Service Research are sparse and sometimes incompatible from one state to the next. There are
also differences in how juniper data are collected on National Forest System lands in the Pacific
Northwest.
It is difficult to convince private industry to invest significant capital without better inventory
data. From a business perspective, key inventory questions are: 1) How much is there?; 2) What
is the quality?; 3) Where is it located?; and 4) How accessible is it (considering physical,
geographic, legal, and social factors)? There is also a critical issue of how to inventory early
stages of woodland development, which cannot be seen using standard resolution aerial and
satellite photography but are the most cost-effective to treat ($5 to $10 per acre for prescribed
burning versus $50 per acre for mechanical thinning).
Developing Markets and Industry Infrastructure - Higher juniper sales volume and more
consistent orders are needed to establish and maintain an industry infrastructure, linking raw
material suppliers, manufacturers, and markets. An Industry Facilitator, funded for two years by
a grant from the State of Oregon, has successfully put together multiple "flexible networks" to fill
orders, however, future public funding support is problematical and time consuming to pursue.
Identification and development of fiber markets, besides sawn product markets, are critical not
only to develop industry infrastructure, but also to make progress in reducing the estimated one
million acres of over-stocked juniper woodlands.
Industry Sustainability During Early Stages of Development - Public funding for complex,
commercialization projects tied to ecosystem management is difficult to obtain. Industry
members of the Western Juniper Commercialization Steering Committee recently authorized a
"voluntary assessment" program, to begin generating revenue to continue marketing and
communication activities without public subsidies. There is expected to be a three to five year
gap, however, before sufficient revenue can be produced to sustain current efforts.
Obtaining Base-Level Funding for Biological and Wood Science - Although biological and
rangeland habitat field research have been on-going for years, published results are sparse. More
focused efforts are in-progress, but much researcher time is taken-up by fund raising. Both BLM
and National Forests contribute, but not in a coherent or coordinated fashion. In addition,
funding support for wood science and technology issues is expected to decrease drastically from
current levels as the novelty wears off juniper commercialization activities,
Reducing Harvest Costs and Improving Slash Dispersal - Harvest costs and appropriate harvest
equipment remain critical issues (harvest costs are about three times that of other commercial
species). Efforts are underway to put together funding for operational prototype harvest
equipment specifically designed for juniper, which may also be adaptable to other low-commercial value tree species. Methods and equipment also have to be refined to better disperse
slash, which is critical to meet the goal of improving rangeland habitat through commercial
harvest.
Increasing and Maintaining Public and Government Agency Awareness, Support, and
Participation - The Forest Service Project Liaison has been successful in obtaining the support
and participation of private industry and landowners. However, it is has become obvious that
maintaining communication and organizing funding support from public agencies and non-profit
environmental organizations is another full-time job. Decentralized decision-making authority
is good for some things, but plays havoc with large, regional, multiple-state efforts, such as the
Western Juniper Commercialization Project.
Maintaining Communication and Networking - Communication and information exchange do
not take place without someone to organize them. Besides personnel time, a small amount of
baseline project funding is needed. It is almost impossible to finance large-scale communication
methods, such as newsletters and conferences, without some public support.
1. Mission statement of Western Juniper Commercialization Steering Committee (1994).
2. A significant portion of forested lands which have western juniper in their understory are within National
Forest System boundaries, and are not included in Pacific Northwest Research Station Oregon and California field
sample plots.
3. Assuming 10,000 ac./yr. at an average of 225 cu. ft./ac = 2.25 million cubic ft. (cubic foot per acre
estimate provided by Don Gedney, Pacific Northwest Research Station, Portland)
4. Key assumption is that ranchers who intend to thin their woodlands over the next 10 years will treat 25% of
the average 350 woodland acres/landowner, at a minimum cost of $50 per acre.
5. Multi-Region Strategy Governor grants are part of a state economic development program which uses a
highly competitive process to choose projects which will create or sustain family-wage jobs in rural Oregon, and
benefit more than one region. It is funded by Oregon lottery dollars.
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