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Featured Professional: Ponderay Valley Fibre (PVF) – Vaagen Brothers Lumber Merger

Josh Anderson, Vaagen Brothers Lumber, Inc.

Ponderay Valley Fibre (PVF) — Vaagen Brothers Lumber Merger
What it means to the private landowner

On October 1, 2006, Vaagen Brothers Lumber, Inc. in Colville, WA acquired the Ponderay Valley Fibre (PVF) mill in Usk, WA. This merger was a natural fit and will allow both facilities to be stronger and healthier into the future. The Colville facility has drying and planing capacities that outpace its sawmill’s production. The Usk facility is purely a rough green lumber producer with no dry kilns or planer. Together, the two can produce finished products that include studs, dimension lumber, and specialty products such as machine stress rated lumber, laminated beam stock, and decking. The two mills also produce a large volume of chips, used in the paper making process. This diversification in products is critical in a down lumber market like the one we are currently experiencing.

The two mills are about fifty miles apart and procure small sawlogs and pulp logs from Eastern Washington, North Idaho, and even from parts of Western Montana.

What does this mean to the private landowner? They can now count on a steady and relatively stable market for their small sawlogs and pulp logs.

Some might worry that this merger could lead to reduced competition resulting in a decrease in log prices. So far, we have not found this to be the case. With a number of companies in the region courting private landowners for their small-diameter timber, now is as good a time as ever to realize considerable value for this material while improving the health of your forest.

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