Contributions from the Canadian government and industry associations will provide C$21m, with an additional C$1.5m provided to develop new markets for beetle-attacked wood.
Those benefiting from the project include Canada Wood Group, BC Wood Specialties Group, Council of Forest Industries, BC Shake and Shingle Association, the Coast Forest Products Association and others.
Exports of Canadian softwood timber to overseas destinations fell by 18% in 2005, to their lowest level since 1986 despite the efforts of exporters to increase offshore activity and rely less on the US market.
The funding initiative was announced by prime minister Gordon Campbell during the annual convention of the Council of Forest Industries in early April.
