Back in the late '90's I supplied chip logs and timber to Vaagen Lumber Republic, WA
Back then the timber industry wasn't very good in the U.S. So Vaagen Brothers would hi grade the timber, slash contract prices on every defect, no matter what size of defect, then take the logs as chip logs. We would haul and unload entire tracts, 100- 300M board feet at time to only get a fraction in full price timber. We didn't have much choice as they were the only mill within 50 miles, so we sold our timber there.
Our trucks hauled short logs, 18' max. most were cut to 16.5" with trim. By our contracts we were locked into prices such as $80 per 1M board feet raw timber, and our truck would haul approx 3.5M board feet. (M=1,000). Of course, out of a load if 5 tons went to chip logs the price dropped to $32 a ton, which was roughly 1/5th of the price of the Grade 1 or 2 logs.
Well, we went through this for many months, actually about 2 years worth of work.
Come to find out after all this time, the logs I had been supplying as well as most of the logs coming out of the woods, were being shipped to a broker, he was selling them to Japan. The prices he was charging Japan, were about 10 times what we were being paid for the logs at the mill!
Okay, I can understand supply and demand. What I learned though surprised me at the time but not so much anymore. When the logs get to Japan, they off load them and float them in lakes, rivers, and even the sea in pens. Then they sink them to the bottom. They then dredge mud on top of them, and do it again with another layer of logs.
When the US timber industry can no longer supply enough logs to keep our mills profitable, then Japan is going to wait until lumber prices are through the roof here, then they will mill these logs.
It made me kind of sad at the time, I was producing a raw product that was to be utilized in American made products, my neighbors homes, or even at my home. Instead they were sold to a foreign market, for much higher prices than paid for. Especially because the graders were padding their pockets by hy-grading the logs, and only paying for chip logs.
Now, Vaagen Brothers Republic branch is totally shut down, not even the buildings are left on site- They killed their operation through their greed.
Plywood from Japan, well yes as the logs are US grown, US harvested, And in some cases Americans have Died to supply this wood product.
Proud to be an American!
