United States

Department of

Agriculture

Forest Service

Southern Forest

Experiment Station

New Orleans,

Louisiana

Resource Bulletin

so-1 54

Midsouth Veneer Industry

Dennis M. May and John S. Vissage
SUMMARY

The USDA Forest Service, Southern Forest Experiment Station’s latest survey of the Midsouth veneer industry shows the

softwood veneer industry continuing its dominance as the hardwood veneer industry has continued to decline. The number of

softwood mills has stabilized after years of growth, while both

commercial and container hardwood mills have decreased in

number. Production and consumption of hardwood veneer logs

have aiso decreased in response to the reduction in hardwood

mills. Production and consumption of softwood veneer logs have

both increased by half since 1972, even though softwood mill

numbers have remained constant. Virtually all of the wood

residues generated by the Midsouth veneer industry are now utilized, mainly as pulp chips and fuel.

September 1990
Midsouth Veneer Industry

Dennis M. May and John S. Vissage

INTRODUCTION

The USDA Forest Service, Southern Forest Experiment Station has periodically surveyed the Midsouth

veneer industry to track changes in the industry’s size

and composition as well as changes in its use of roundwood and in its generation and disposition of wood

residues. To continue tracking the changes, a new

survey of all veneer mills receiving veneer logs produced in the Midsouth (fig. I) was conducted in 1988.

Although intended to be a loo-percent canvass, not

all veneer mills in the Midsouth (fig.1) responded to

the survey (table 1). As a consequence, veneer-log production and consumption data from previous surveys,

mill directories, and other sources were used to estimate State totals for States with nonresponding mills.

THE PAST

The first Midsouth veneer study was conducted in

1963 (Christopher and Sternitzke 1964) and described

a shrinking industry dependent on the region’s hardwood resources. In 1963, the industry was about

equally comprised of container mills, which produced

veneers for the manufacture of crates, boxes, and baskets used in the shipping and packing industries, and

commercial mills, which produced veneers for the

manufacture of doors, furniture, paneling, and plywood (fig. 2). Mills of both types depended almost exclusively on the hardwood resources of the region,

preferring high-quality soft hardwoods, especially

sweetgum and tupelo gums (fig. 3). Both sectors of the

industry had been declining over the years due to

Table l.-Number of operating and responding Midsouth veneer

mills by State, 1988

State Mills operating Mills responding Response rate

___________ Number____________ Percent

Alabama 25 8 32

Arkansas 8 6 75

Louisiana 13 7 54

Mississippi 10 5 50

Oklahoma 1 1 100

Tennessee 3 3 100

Texas 12 12 100

All States 72 42 58

Figure l.-The seuen Midsouth States and the veneer mills in each. Triangles indicate hardwood

ueneer mills and dots indicate softwood veneer mills.

Dennis M. May is research forester and John S. Vissage is forester, U.S. Department of Agriculture, Forest Service, Southern Forest

Experiment Station, Starkville, MS 39759.

1
2
NUMBER OF MILLS

120/f

1963 1969 1972 1988

CONTAINER m COMMERCIAL HARDWOOD

c? COMMERCIAL SOFTWOOD

Figure 2.-L&e of the Midsouth veneer industry by mill type.

2500

2000

MILLION BOARD FEET

1000 t-_

1963 1969 1972 1988

SOFT HARDWOOD m HARD HARDWOOD CI] SOFTWOOD

Figure 3.-Production of Midsouth ueneer logs by species group.

changing markets and shortages of preferred raw materials. This decline was especially true of the container industry, whose products faced stiff competition in the shipping and packing industries from

plastics and paperboard.

Surveys in 1969 (Sternitzke 1971) and 1972 (Bertelson 1974) documented the continued decline of these

sectors of the industry and revealed a shift in the

species composition of the region’s production and

consumption of hardwood veneer logs. This shift was

mainly due to the increased use of soft hardwood species other than the preferred, but increasingly hardto-obtain, gums and the increased use of hard hardwoods, such as oak and pecan, which were becoming

more popular in furniture manufacturing (fig. 4).

The later surveys also documented the birth of the

southern pine plywood industry in Arkansas in late

1963. This new sector of the Midsouth veneer industry

grew rapidly as it took advantage of the region’s expanding southern pine resource and of its proximity to

3
MILLION BOARD FEET_

2501

1963 1969 1972 1988

GUMS m YELLOW-POPLAR 0 OTHER SOFT HARDWOOD

OAKS 0 OTHER HARD HARDWOOD

Figure 4.-Production of Midsouth hardwood veneer logs by species group.

Table Z.-Receipts of Midsouth veneer logs by mill type, 1988

Mill Type Number softwood Hardwood Total

Commercial-SW? 41

Commercial-HW$ 17

Container 14

All mills 72

- - - - - - - - - Thousand board feet* _ _ _ _ _ _ _ _

3,122,237 46,386 3,168,623

1,386 73,689 75,075

60 16,827 16,887

3,123,683 136,902 3,260,585

*International a-inch rule.

+Mills producing primarily softwood veneer.

*Mills producing primarily hardwood veneer.

the growing urban centers of the East. The growth of

this new sector revitalized the Midsouth veneer industry and shifted the region’s veneer-log harvest

from predominantly hardwood to predominantly softwood (fig. 3).

THE PRESENT

Hardwood Veneer Mills

The 1988 survey reveals that many of the trends

observed in the past have continued to the present.

Since 1972, the hardwood sector of the industry has

continued to decline. Most of this decline has been

concentrated in the container veneer mills (fig. 2),

which experienced an 80-percent reduction in the volume of veneer logs processed since 1972 (Bertelson

1974 and table 2). As a result, there were more commercial hardwood mills than container mills in 1988,

and the former consumed the majority of the region’s

hardwood veneer-log receipts (table 2). The region’s

production of hardwood veneer logs has fallen along

4

with the number of operating hardwood mills (fig. 4).

Even a go-percent increase in the production of hardwood veneer logs exported to other regions of the

country since 1972 (Bertelson 1974 and table 3) could

not offset the production loss associated with the reduced internal demand. Yellow-poplar, oak, and hickory/pecan were the most prevalent hardwood species

exported (table 3). Most of the hardwood veneer-log

production that was exported out of the Midsouth

came from Alabama and Tennessee and was consumed in Georgia and North Carolina (tables 4, 5).

Approximately three-quarters of the region’s production of hardwood veneer logs occurred in the States

east of the Mississippi River (figs. 5,6). Alabama was

the leading producer and consumer of hardwood veneer logs due to the high concentration of hardwood

veneer mills within its borders (tables 6, 7; fig. 1).

Softwood Veneer Mills

In contrast to the declining hardwood veneer sector,

the softwood veneer sector has continued to gain in

dominance, increasing its consumption of veneer logs
Table 3.-Species composition of Midsouth veneer-log production and receipts,

1988

Species Receipts Exports Production

___ _______ Thousaadboardfeep _____ _____ _

Yellow pine 3,123,683 38,050 3,161,733

Redcedar 0 1 1

Total softwood 3,123,683 38,051 3,161,734

Gum

Yellow-poplar

Cottonwood

Sycamore

Elm

Basswood

Black cherry

Bay, magnolia

Sassafras

Total soft hardwood

Oak 10,002 2,411 12,413

Hickory, pecan 1,173 1,849 3,022

Ash 149 158 307

Walnut 118 181 299

Hard maple 86 132 218

Total hard hardwood? 11,528 4,731 16,259

78,433 479 78,912

37,525 14,399 51,924

7,208 0 7,208

1,090 0 1,090

568 0 568

291 208 499

182 130 312

65 0 65

12 6 18

125,374 15,222 140,596

Total hardwood 136,902 19,953 156,855

All species 3,260,585 58,004 3,318,589

*International a-inch rule.

‘Includes an insignificant volume of persimmon.

even though its size has stabilized after years of

growth (fig. 2). This leveling off in the number of mills

is a sign of the sector’s maturation as veneer production is concentrated in the most efficient mills and is

in balance with demand. Although the number of softwood mills has stabilized, these mills, manufacturing

mostly pine plywood veneers, comprise the largest

segment of the Midsouth veneer industry and process

almost all of the softwood veneer logs consumed in the

Midsouth (fig. 2, table 2). In addition, some of these

mills also produce small amounts of hardwood veneer

for use in manufacturing portions of pine plywood or,

in some cases, hardwood plywood. As a result, softwood mills as a group also processed a third of the

region’s hardwood veneer-log receipts in 1988

(table 2). All of the hardwood veneer logs processed

were soft hardwood, mostly yellow-poplar and gums,

which may explain the increased production of soft

hardwoods since 1972 (fig. 4). Production of softwood

veneer logs has also increased since 1972, climbing 49

percent even though the number of mills has remained essentially unchanged (Bertelson 1974 and

table 6). This statistic is another testimony to the

increasing efficiency of the softwood veneer sector.

Unlike the production of hardwood veneer logs, production of softwood veneer logs is concentrated in the

States west of the Mississippi River (figs. 7,8). Louisiana is the leading producer of softwood veneer logs

(table 6), and Texas is the leading consumer with Louisiana and Arkansas not far behind (table 7).

Wood Residues

In the manufacture of veneers, the Midsouth veneer

industry produced a substantial amount of wood and

bark residues in 1988 (table 8). The wood residues

were comprised predominantly of coarse residues.

Coarse residues, such as veneer cores and trimmings,

are suitable for use as pulp fiber, and three-quarters

of the coarse residues were in fact used for this purpose (table 9). Processing of veneer cores into dimension lumber and landscaping timbers accounted for

much of the remaining coarse residues. Almost all of

the fine wood and bark residues were burned for industrial fuel. Only a very small percentage of the

residues went unused, an improvement in utilization

since 1972 when 4 percent of the residues went unused.

5
Table 4.-Destination of Midsouth veneer logs by State of origin, 1988

State of destination State of origin softwood Hardwood Total

Kentucky

Louisiana

Michigan

Mississippi

North Carolina

Alabama

Arkansast

Alabama

Mississippi

Total receipts

Arkansas

Louisiana

Texas

Florida

Georgia

Indiana

Total receipts

Alabama

Total receipts

Alabama

Total receipts

Arkansas

Louisiana

Mississippi

Oklahoma

Tennessee

Texas

Total receipts

Tennessee

Total receipts

Arkansas

Louisiana

Mississippi

Texas

Total receipts

Tennessee

Total receipts

Alabama

Louisiana

Mississippi

Total receipts

Arkansas

Louisiana

Mississippi

Tennessee

Ohio

Total receipts

Arkansas

Mississippi

Oklahoma

Tennessee

Texas

Total receipts

Tennessee

Total receipts

Louisiana

Texas

Virginia

Total receipts

Mississippi

Tennessee

West Virginia

Total receipts

Tennessee

Total receipts

All States Total production

--------- Thousand board feet* _ _ _ _ _ _ _ _ _

354,980 69,643 424,623

43,391 7,769 51,160

398,371 77,412 475,783

554,521 4,860 559,381

151,350 2,552 153,902

13,887 0 13,887

719,758 7,412 727,170

0 805 805

0 805 805

37,677 10,189 47,866

37,677 10,189 47,866

373 153 526

0 567 567

0 662 662

0 120 120

0 683 683

0 120 120

373 2,305 2,678

0 178 178

0 178 178

11,449 0 11,449

697,956 14,695 712,651

35 0 35

9,695 0 9,695

719,135 14,695 733,830

0 338 338

0 338 338

83,231 0 83,231

29,012 0 29,012

380,946 12,773 393,719

493,189 12,773 505,962

0 96 96

0 96 96

0 96 96

0 5,107 5,107

0 5,395 5,395

0 12 12

0 41 41

0 9 9

0 62 62

0 6,555 6,555

0 6,555 6,555

89,116 4,079 93,195

704,114 13,976 718,090

793,230 18,055 811,285

0 19 19

1 407 408

1 426 427

0 255 255

0 255 255

3,161,734 156,855 3,318,589

*International a-inch rule.

:Oklahoma combined with Arkansas to avoid disclosure of individual mill data.
Table 5.-Movement of Midsouth veneer logs, 1988

State

Species

RrOUP

Internal

use

Exports Exports

within out of

region region

Imports

within

region

Alabama

Arkansast

Louisiana

Mississippi

Tennessee

Texas

All States

SOftWOOd

Hardwood

Total

SOftWOOd

Hardwood

Total

Softwood

Hardwood

Total

SOftWOOd

Hardwood

Total

Softwood

Hardwood

Total

Softwood

Hardwood

Total

Softwood

Hardwood

Total

__ _ __ _ _ _ __ _ Thousand board feef _ _ __ _ __ _ _ _ _

354,980 83,231 37,677 43,391

69,643 0 10,994 7,769

424,623 83,231 48,671 51,160

554,521 11,449 373 165,237

4,860 0 390 2,552

559,381 11,449 763 167,789

697,956 269,478 0 21,179

14,695 6,631 663 0

712,651 276,109 663 21,179

380,946 43,426 0 112,243

12,773 7,769 818 0

393,719 51,195 818 112,243

0 0 1 0

6,555 0 6,968 0

6,555 0 6,969 0

704,114 23,582 0 89,116

13,976 0 120 4,079

718,090 23,582 120 93,195

2,692,517 431,166 38,051 431,166

122,502 14,400 19,953 14,400

2,815,019 445,566 58,004 445,566

‘International $-inch rule.

+Oklahoma combined with Arkansas to avoid disclosure of individual mill

data.

Table 6.- Midsouth veneer-log production by State, 1988

State Softwood Hardwood Total

__ _____ ___ Thousand board feeP __-__- --_-

Alabama 475,888 80,637 556,525

Arkansas 531,610 5,057 536,667

Louisiana 967,434 21,989 989,423

Mississippi 424,372 21,360 445,732

Oklahoma 34,733 193 34,926

Tennessee 1 13,523 13,524

Texas 727,696 14,096 741,792

All States 3,161,734 156,855 3,318,589

*International d-inch rule.

7
F1 1 tc1 5MB t5011 t o 1500

1500 t o 2500 more thorn 2588

THOUSMI BOHRD FEET - INTERNkTIONkL 1./4-INCH RULE

Figure B.-Hardwood veneer-log production by county, 1988.

0 1 t.cJ 2.5 I2,5to 5

5 tl, 15 mare than 15

BCIFRD FEET HAR'JESTED4XRE TJF TIMbERLflND

Figure 6.-Hardwood veneer-log harvesting intensity by county, 1988.
Table 7.- Midsouth veneer-log receipts by State, 1988

State Softwood Hardwood Total

__________ Thousand board feet* __________

Alabama 398,371 77,412 475,783

Arkansas? 719,758 7,412 727,170

Louisiana 719,135 14,695 733,830

Mississippi 493,189 12,773 505,962

Tennessee 0 6,555 6,555

Texas 793,230 18,055 811,285

All States 3,123,683 136,902 3,260,585

*International a-inch rule.

+Oklahoma combined with Arkansas to avoid disclosure of individual mill data.

Table 8.-Volume of wood residues produced from Midsouth veneer mills, 1988

State Bark

Softwood

Coarse Fine

Hardwood

Bark Coarse Fine

__ _______ _ _________ Thousandcubicfeet _____ ____ ______.___

Alabama 12,724 24,739 1,076 1,438 4,807 209

Arkansas* 22,988 44,697 1,943 138 460 20

Louisiana 22,969 44,658 1,942 273 913 40

Mississippi 15,752 30,627 1,332 237 793 34

Tennessee 0 0 0 122 407 18

Texas 25,335 49,260 2,142 336 1,121 49

All States 99,768 193,981 8,435 2,544 8,501 370

*Oklahoma combined with Arkansas to avoid disclosure of individual mill

data.

Table 9.-Disposition of Midsouth veneer mill wood residues, 1988

Disposition

Softwood Hardwood

Bark Coarse Fine Bark Coarse Fine

________________ Thousandc&nic feet ___.____________

Fiber

Industrial fuel

Bedding, mulch

Dimension lumber,

specialty items

Not used

0 153,322 852 2 6,678 *

99,438 11,367 7,558 2,541 1,230 370

160 136 0 0 0 0

0 28,826 0 0 590 0

170 330 25 1 3 *

Total 99,768 193,981 8,435 2,544 8,501 370

*Less than 0.5 thousand cubic feet.

9
I ---- ----- ----- .-

. ._._. _ _. ._ _
THE FUTURE

The Midsouth veneer industry has changed considerably over the years and is today one of the leading

primary forest industries in the region. Today’s industry was built around the expanding southern pine

resource of the region, and its future depends on its

ability to continue to utilize this resource. However,

the shifting of this resource from natural to planted

stands (USDA FS 1988) has raised concerns over the

size, quality, and quantity of future veneer logs, especially if the plantations are managed on short rotations (Kellison 1986, Kluender and others 1988). One

method of coping with the changing resource base will

be the adoption of current and future technologies,

such as the spindleless lathe, that will allow more

efficient conversion of smaller logs into veneer (Baldwin 1987, Kellison 1986, Spelter and Sleet 1989). Additionally, new technologies may provide opportunities to market new products, such as dimension

lumber and structural beams produced from laminated veneers, which may strengthen the position of

the Midsouth veneer industry (Pease 1987, Price

1986).

On the other hand, other new technologies are currently threatening the position of today’s veneer industry. Reconstituted panel products, such as waferboard and oriented strandboard, are continually

gaining market shares over veneer plywoods. Similar

structural performance and lower cost are the main

reasons for their market acceptance (Dickerhoff 1986,

Seward and Sinclair 1988). The lower cost is due in

part to lower raw material costs because these products utilize traditionally underutilized, smaller, ,and

poorer quality trees (Price 1986). Ultimately, the future of the Midsouth veneer industry will depend on

its continued ability to change in order to utilize its

raw material source and take advantage of new technologies to meet market demands.

LITERATURE CITED

Christopher, Joe F.; Sternitzke, Herbert S. 1964. Midsouth veneer industry. Resour. Bull. SO-5 New Orleans, LA: U.S. Department of Agriculture, Forest

Service, Southern Forest Experiment Station. 12 p.

Dickerhoff, H. Edward. 1986. Changing U.S. softwood

timber markets and international trade trends with

implications for domestic forest products production. Forest Products Journal. 36(10): 35-40.

Kellison, Robert C. 1986. Future technology and timber supply may change construction lumber products. Forest Farmer. 45(g): 24-26.

Kluender, R.A.; McCoy, E.W.; and Easterling, J.K.

1988. The Arkansas forest products industry. Bull

908. Fayetteville, AR: Arkansas Agricultural Experiment Station, University of Arkansas, Division

of Agriculture. 41 p.

Pease, Davis A. 1987. Symposium takes a look at lumber composites. Forest Industries. 114(5): 16-17.

Price, Eddie W. 1986. New products for southern timber resources. In: Carpenter, Stanley B., ed. Proceedings: southern forestry symposium; 1985

November 19-21; Atlanta, GA. Stillwater, OK:

Oklahoma State University Agricultural Conference Services. 181-184.

Seward, Kevin E; Sinclair, Steven A. 1988. Retailer’s

perceptions of structural panel attributes and market segments. Forest Products Journal. 38(4): 25-

31.

Spelter, Henry; Sleet, George. 1989. Potential reductions in plywood manufacturing costs resulting

from improved technology. Forest Products Journal. 39(l): 8-15.

Sternitzke, Herbert S. 1971. Midsouth veneer log production Resour. Bull. SO-25. New Orleans, LA: U.S.

Department of Agriculture, Forest Service, Southern Forest Experiment Station. 8 p.

U.S. Deparment of Agriculture, Forest Service. 1988.

The South’s fourth forest: alternatives for the future. Forest Resource Report 24. Washington, DC:

U.S. Department of Agriculture Forest Service.

512 p.

Baldwin, Richard F. 1987. New developments in plywood green ends. Forest Industries. 114(6): 18-23.

Bertelson, Daniel F. 1974. Midsouth veneer industries, 1972. Resour. Bull. SO-47. New Orleans, LA:

U.S. Department of Agriculture, Forest Service,

Southern Forest Experiment Station. 11 p.

11
Persons of any race, color, national origin, sex, age, religion, or with any

handicapping condition are welcome to use and enjoy all facilities, programs,

and services of the USDA. Discrimination in any form is strictly against agency

policy, and should be reported to the Secretary of Agriculture, Washington, DC

20250.
May, Dennis M.; V&age, John S. Midsouth veneer industry. Resour.

Bull. SO-154. New Orleans, LA: U.S. Department of Agriculture,

Forest Service, Southern Forest Experiment Station; 1990. 11 p.

Reports the findings of a survey of all veneer mills receiving veneer

logs from the Midsouth in 1988. Production and receipts of veneer

logs are reported by State, mill type, and species. The production and

disposition of wood and bark residues generated by the Midsouth

veneer industry are also reported. Changes in veneer-log production

and receipts and wood residue production from previous surveys are

also followed and discussed.

Keywords: Bark, consumption, production, veneer log, wood

residue.