1. RED ALDER LUMBER (Alnus Rubra) ALDER SAWMILL PRODUCTION In the 21 st century 1

2. RESOURCE Red Alder log costs are up over 300% versus mid 1980. Red Alder log costs are up over 300% versus mid 1980. Avg log diameters to the mill are down approximately 15%. Avg log diameters to the mill are down approximately 15%. Limitations on harvest due to regulation, environmental issues and conifer market fluctuations make it difficult for the mills to forecast needed supplies. Limitations on harvest due to regulation, environmental issues and conifer market fluctuations make it difficult for the mills to forecast needed supplies.

3. GOOD STEWARDSHIP Due to resource limitations, the mills have recognized the importance of being good stewards of the fiber. Due to resource limitations, the mills have recognized the importance of being good stewards of the fiber. Regular intervention and information from the mill resource managers have educated the logging community and have established “BEST PRACTICES”. Regular intervention and information from the mill resource managers have educated the logging community and have established “BEST PRACTICES”. RESULT - increased fiber recovery for the mills and economic value to the vendor. RESULT - increased fiber recovery for the mills and economic value to the vendor.

4. GOOD STEWARDSHIP Mechanical harvesters and de-limbers have been modified to control fiber damage and protect the high value lumber in the outer jacket of the Red Alder log. Mechanical harvesters and de-limbers have been modified to control fiber damage and protect the high value lumber in the outer jacket of the Red Alder log. Bucking lengths have been established to give both the vendor and the mill higher recoveries and economic return. Bucking lengths have been established to give both the vendor and the mill higher recoveries and economic return.

5. SAWMILLING 101 RECOVERY: RECOVERY: CONSITENCY: CONSITENCY: QUALITY: QUALITY: PRODUCTION: PRODUCTION:

6. SAWMILLING Merchandising line: Merchandising line: Chopsaw/Bucking Chopsaw/Bucking De-barker De-barker Sorting line Sorting line Whole log chipper/Hog Whole log chipper/Hog

7. RECOVERY Extracting the most fiber out of the log resource. Log management and rotation: Log management and rotation: Quick rotations from the forest through the mill are key to capturing the highest log to lumber recoveries and values. Quick rotations from the forest through the mill are key to capturing the highest log to lumber recoveries and values.

8. RECOVERY Extracting the most fiber out of the log resource. Saw log versus Pulp log: Saw log versus Pulp log: Due to increased log costs, diminished chip markets and supply shortages, today’s mills are striving to recover valuable lumber from what was only considered for chips. Due to increased log costs, diminished chip markets and supply shortages, today’s mills are striving to recover valuable lumber from what was only considered for chips.

9. SAWMILLING Headsaw: Headsaw: Carriage Carriage Round Saw/Bandmill Round Saw/Bandmill Resaw/Gang/Scrag Mill Resaw/Gang/Scrag Mill

10. RECOVERY Extracting the most fiber out of the log resource. Thin kerf saws and saw technology: Thin kerf saws and saw technology: Advances is saw technologies and filing equipment have made possible higher log to lumber recoveries throughout the sawmill process. Thin kerf band mills and round saws are a necessity for the fiber recovery effort.

11. SAWMILLING Extracting the most fiber out of the log resource. Technology and Optimization: Technology and Optimization: Log to lumber recovery, grade yield recovery and overall production have increased by as much as 18% due to mills adding scanning technology and optimization.

12. RECOVERY Extracting the most fiber out of the log resource. Knife Planing versus Sanding: Knife Planing versus Sanding: Arguments go both ways on this issue. Red Alder sawmills throughout the northwest use both methods. Target sizes in the green lumber can be shaved 50 thousandths by sanding the rough dry product versus knife planing. Sanding also promotes less tear-out around the knots, but maintenance and operating costs are much higher than a Knife Planer.

13. RECOVERY Extracting the most fiber out of the log resource. Maintenance: Maintenance: All of the technological advances, process control and product development mean nothing to recovery efforts if equipment is not well maintained. Poor maintenance practices have huge impacts on recoveries and have extreme measurable results to the mills bottom line.

14. SAWMILLING Extracting the most fiber out of the log resource. Through education, commitment, and technological advancement, today’s sawmills have necessary tools available to increase log to lumber recoveries and extract the highest value out of the available resource.

15. CONSISTENCY Consistency throughout the manufacturing process is key to the mills productivity and maintaining a favorable position in the marketplace. The result of consistent or inconsistent manufacturing has a direct effect on the mill’s market demand, perceived quality and overall value of it’s production.

16. QUALITY IT TAKES U AND I TO MAKE QUALITY IT TAKES U AND I TO MAKE QUALITY Commitment by mill management, employee education and dedication to consistent manufacturing processes establish the “Product Attitude” of the mill’s production. The “Product Attitude” is maintained during the sawmill manufacturing process by consistent log breakdown technique and process controls. This assures the continuity of the product character, with all previous volumes.

17. QUALITY Red Alder In The Marketplace: The range of quality from mill production to mill production in Red Alder lumber is not a mystery. The range of quality from mill production to mill production in Red Alder lumber is not a mystery. There is a direct correlation to each sawmills resources, capabilities, education and commitment. There is a direct correlation to each sawmills resources, capabilities, education and commitment.

18. QUALITY Kiln Drying: Measurable value loss due to de-grade during the kiln drying process can be eliminated through monitoring a few key production elements. Green Lumber Sizes. Green Lumber Sizes. Stacking, Sticker Sizes and Sticker Placement. Stacking, Sticker Sizes and Sticker Placement. Proper Green Yard Bunking. Proper Green Yard Bunking. Good Kiln Loading. Good Kiln Loading.

19. QUALITY When rough dry lumber moves to the finish side of the Red Alder mill (Planer/Sander), the product attitude and quality have already been established. When rough dry lumber moves to the finish side of the Red Alder mill (Planer/Sander), the product attitude and quality have already been established. In the finish side of the mill, little can be done to disguise any quality issues or man made defect. In the finish side of the mill, little can be done to disguise any quality issues or man made defect. The manufacturing process and procedures maintained throughout the sawmill operation hold the truth to the lumber quality. The manufacturing process and procedures maintained throughout the sawmill operation hold the truth to the lumber quality.

20. QUALITY First impressions count in the marketplace: Clear grade marks and on the best face. Clear grade marks and on the best face. Good unitization is perceived as good quality. Good unitization is perceived as good quality. Crisp stenciling centered on the side of the units and neat banding application. Crisp stenciling centered on the side of the units and neat banding application.

21. PRODUCTION Whether the mill is a small manufacturer producing 6mbf per hour or a large manufacturer producing 18mbf per hour, the correlation is the same – “Production Pays The Bills” - the higher the production…the lower the manufacturing costs to the mill. Whether the mill is a small manufacturer producing 6mbf per hour or a large manufacturer producing 18mbf per hour, the correlation is the same – “Production Pays The Bills” - the higher the production…the lower the manufacturing costs to the mill. All aspects of sawmilling (Safety-Quality-Production) are equally important, but all have to be managed in order for a mill to be successful. All aspects of sawmilling (Safety-Quality-Production) are equally important, but all have to be managed in order for a mill to be successful.

22. PRODUCTION In recent years, the vision of the Red Alder sawmill has changed. Due to the influence of government regulation, supply issues and product demand, the industry has evolved.

23. PRODUCTION The Red Alder sawmill of the past had quarterly lumber pricing and 40% of the production went into green pallet grade lumber sold to pallet manufacturers. Recovery was adequate at about 120-130%, but not of much concern.

24. PRODUCTION Today’s Red Alder sawmill has taken more of a commodity stance in lumber pricing. Mills have added value by reducing the green pallet grade production to around 20%. The same fiber that made pallet grade lumber has been diverted into higher value, kiln dried “Rustic Grade” products. Recovery is key to success and an average of 150-160% is not uncommon.

25. GRADING Through the efforts of the NHLA & WHA – the grade rules for Red Alder will be modified in the NHLA rules book to list generic descriptions of the grades developed under “proprietary” grade rules. Through the efforts of the NHLA & WHA – the grade rules for Red Alder will be modified in the NHLA rules book to list generic descriptions of the grades developed under “proprietary” grade rules. The NHLA rules will help establish a comfort zone for Red Alder buyers in the main grades. However, it will not cover the ever changing “niche grade” development Red Alder has always seemed to strive for. The NHLA rules will help establish a comfort zone for Red Alder buyers in the main grades. However, it will not cover the ever changing “niche grade” development Red Alder has always seemed to strive for.

26. ALDER PRODUCTS