1. Red Alder; Market Reasons for Optimism! Larry Mason University of Washington College of Forest Resources Rural Technology Initiative Washington Hardwoods Commission Annual Meeting, June 14, 2006

2. 5/06 price in 2004 $ Red Alder: $699 Douglas-fir: $620 Puget Sound Region. Source: Log Lines (1989-2004, 2006), Forest Product Price Report (1959-1990), Timber Management Plus (current), U. S. Dept of Labor

3. 7.35% 8.40% 2004

4. 2004; 5% rate of return

5. Price Indexes for Hardwood Lumber, 1965 - 2002 Average increase/year since 1965 of 4.9% More stable than softwood lumber Source: U.S. Forest Service Western producers produce < 5% of hardwood lumber

6. U.S. Hardwood Exports 1986-2002 $ Million Source: American Hardwood Export Council

8. Source: USDA Foreign Agriculture Service

10. 2005 $121 Million Total Sales

11. Alder lumber export statistics for Jan-May of 2004 and 2005. Source: Hardwood Review (2005) and USDA Foreign Agricultural Service (2005).

12. Source: Roos, J., G. Donovan, D. Nicholls. How does species name affect consumer choice? An analysis and implications for PNW cabinet door marketers. Forest Products Journal. 55(5). Pp. 21-26. How Do Domestic Markets Respond to Alder?

13. 560 respondents in Anchorage 900 respondents in Seattle

14. Combined alder preferences dominate selections!

15. Huge opportunity for consumer education!

16. C - ? #1 - $2.20 #2 - $1.70 C - $1.40 #1 - $1.00 #2 - $0.60 But can Alder price get too high? C - $1.50 #1 - $1.20 #2 - $0.70 Poplar C - $3.75 #1 - $2.50 #2 - $1.50 CherryMapleAlder http://www.innernet.net/galleryofwood/pricelist.htm

17. One reason for alder popularity among manufacturers is its workability Source: American Hardwood Export Council

18. South West Rustic Furniture ??????????????? 4/4 Premium Frame $825/MBF 4/4 Standard and #3 Shop $550/MBF Source: Bill Redman, North Pacific Lumber

22. Alder is the only wood approved for grocery pallets by the West coast food industry. But > $300/MBF? Source: Hardwood Lumber Review and Bill Redmond

23. What about the pulp price? The west produces < 3% of U.S. hardwood chips Source: USDA Forest Service

24. Look into the crystal ball

25. Red Alder is not a tropical hardwood. Planting Red Alder will diversify commercial forestland investments. As prices rise more plantations are established. Red Alder logs are likely to become increasingly scarce because present plantations are few. Increases in research in intensive management and genetic improvements will likely result in hardier stock, shorter rotations, higher grades, and greater yields.

26. Shorter rotations mean quicker return-on- investment and reduced risk. Rapid growth does not appear to compromise lumber quality. Red Alder appears well established in Domestic and Export niche markets. Products markets can be strengthened and expanded through consumer education. Engineered Wood Products may help with raw material shortages. 200 MMBF in Alaska more in Canada.

27. CONCLUSION: Red Alder is uniquely positioned among PNW log species for continued market success.

28. Available on the web at no charge or on DVD- ROM for $10 (this can only be viewed on a computer with DVD reader). To order, contact Clara Burnett (clara75 @cfr.washington.edu), or call the RTI office at (206) 543-0827.

29. Available on the web at http://www.treesearch.fs.fed.us/pubs/22325 Or in hard copy from: Pacific Northwest Research Station P.O. Box 3890 Portland, OR 97208 (503) 808-2592

30. Thank You