A tiny orange worm is posing a “significant” risk to forestland on the Canadian island of Cape Breton, according to provincial officials.

The foliage-eating blackheaded budworm, which has not been seen since the 1950s, could destroy as much as C$100m of timber in a worst-case scenario.

The bug was detected last autumn on Crown land being used by Stora Enso. About 114,000ha of forest are thought to be at risk.

Timber companies have described the threat as a real concern for wood supplies in the regions.