Potlatch Corp is to scale back its timber harvest by 18% – 500,000 tons of saw logs – this year in response to weak markets.
Potlatch owns 1.6 million acres, including parcels in Arkansas and the upper Midwest. Most of the cutbacks will take place in its Idaho forestlands.
Chairman and CEO Mike Covey said reducing the harvest would affect the company’s cash flow but selling logs at depressed prices was not in the company’s best interest.
“We believe these markets will come back at more favourable prices when housing recovers,” said Mr Covey “When they do, we are poised to step up harvest levels.”