Senate committee hears warnings of collapsing pulpwood market; task force and ports cited as short- and mid‑term responses

At a Senate Fish, Game and Forestry committee meeting, industry representatives and state officials told senators that South Carolina has lost millions of tons of market demand for pulpwood since 2021 and faces cascading effects on landowners, logging crews, conservation and local economies.

"We are trending in the wrong direction," said Tripp Chavis, a founding board member of the South Carolina Forest Landowners Advocacy Guild and president and CEO of Milliken Advisors, as he described mill closures, falling stumpage prices and an out‑of‑balance supply of timber in the state. Chavis estimated an "approximately 8,000,000 ton loss of demand since 2021," which he said equals roughly "320,000 truckloads a year" and leaves about "200,000 acres of timberland" without timely management annually. He estimated an annual financial hit to landowners of about $90,000,000 and a total statewide economic impact approaching $2,000,000,000 (figures he said were his estimates, not published data).

The presentation and subsequent discussion focused on three linked problems: (1) closures and curtailments of pulp and paper facilities that processed low‑value pulpwood, (2) limited milling capacity near many timber stands, and (3) obstacles to moving chips and other raw products to overseas buyers. Chavis and others listed specific recent closures or cutbacks including Sunoco's conversion away from green wood sourcing, WestRock (North Charleston), Pactiv Evergreen (Canton, N.C.), Innophore (Summerville), GP Prosperity, and IP Georgetown.

Scott Phillips of the South Carolina Forestry Commission summarized the commission's tracking of price and production trends and the industry's role in the state economy, saying timber historically has been among the state's top agricultural and manufacturing sectors. Using Timber Mart South and commission data, Phillips said pine pulpwood prices in many regions fell roughly 37% from 2021 rates and that broader product prices and volumes have declined, with ripple effects for jobs and wages. He said the commission and economic development partners are pursuing trade missions, port conversations and other recruitment work.

Cam Crawford, president of the Forestry Association of South Carolina, presented the SICON Forest Recovery Task Force report (released January 2025) and said the task force is pursuing a two‑pronged strategy: help existing manufacturers operate at full capacity and recruit new manufacturers and bioeconomy projects that can use large volumes of woody material. The report lists potential growth areas including renewable diesel, sustainable aviation fuel (SAF), bioelectricity, biochar and engineered wood products. Crawford told senators that several active economic development prospects could consume an estimated 4.5–5,000,000 tons of wood if they locate in South Carolina.

Committee members and witnesses discussed domestic and international bottlenecks. Witnesses said domestic bottlenecks include finite milling capacity near timber stands and, in some cases, mill curtailments driven by regulatory or capital constraints. On international markets, speakers identified trade and phytosanitary barriers (fumigation and import rules) and shipping logistics as obstacles; witnesses said some overseas buyers prefer bulk ship loading while most current exports from South Carolina are containerized, which is less efficient for chips.

John Cameron, an executive associated with the harbor pilots and maritime industry, described private terminal options in Charleston Harbor and told the committee private bulk‑export terminals exist elsewhere and could provide a route for chips and other forest products if developed in South Carolina. Phillips and others said the Forestry Commission and South Carolina Ports Authority are in active discussions about potential private bulk terminals and other port solutions.

Legislative and budgetary steps were discussed but no formal committee votes were taken. Committee members and witnesses repeatedly urged prompt action. Witnesses asked for a dedicated forestry recruitment position in the Forestry Commission budget to be retained; Phillips and Crawford said that position is included in the governor's executive budget, was retained by the House and is presently in the Senate finance committee's version. A senator on the committee said he placed an amendment in the recent energy bill asking Dominion Energy to evaluate whether a water‑regenerating (retired coal) plant could be adapted to burn wood chips for generation; the amendment requires evaluation, not a mandate to convert.

Conservation groups described the stakes for private landowners. Tim Evans, director of land conservation for the National Audubon Society in South Carolina, told senators that private ownership accounts for most of the state's forestland and that loss of logging markets would increase the likelihood of conversion of forest to non‑forest uses, which is typically permanent.

Witnesses and senators recommended a package of near‑term and longer‑term actions: sustain and protect existing mills, pursue active recruitment for wood‑consuming facilities and bioeconomy projects, increase marketing and trade missions to overseas buyers, advance port and rail logistics (including possible bulk loading capability), and explore domestic bioenergy and renewable fuels projects such as SAF and renewable diesel. The SICON task force report and agency representatives signaled several active projects under non‑disclosure that could yield announcements in the coming months if negotiations succeed.

The meeting closed with requests that presenters provide slides and task force materials to committee members and with continued work between the Forestry Commission, Department of Commerce, ports and private industry to identify concrete projects and investments. No formal votes or ordinance actions were recorded at the meeting.