UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q
(Mark One)
              (X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                   For the quarterly period ended May 31, 2001

                                       OR

              ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________________to______________________

Commission file number: 0-19954

                      JEWETT-CAMERON TRADING COMPANY, LTD.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

       BRITISH COLUMBIA                                    NONE
-------------------------------             ------------------------------------
(State or other jurisdiction of             (IRS Employer Identification Number)
 incorporation or organization)

                32275 N.W. Hillcrest, North Plains, Oregon 97133
                ------------------------------------------------
                    (Address of Principal Executive Offices)

       Registrant's telephone number, including area code: (503) 647-0110

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 since
May 16, 1992 and (2) has been subject to the above filing requirements for the
past 90 days.
                                  Yes X No ___
                                     ---

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

         Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.

Yes ___ No ___

                      APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of May 31, 2001. Common Stock, no par value 1,074,162 Shares.

<PAGE>
                         PART I - FINANCIAL INFORMATION

Item 1.  FINANCIAL STATEMENTS.

                  Attached hereto and incorporated herein by reference.

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS


The following information contains certain forward-looking statements that
anticipate future trends or events. These statements are based on certain
assumptions that may prove to be erroneous and are subject to certain risks
including but not limited to the risks of increased competition in the Company's
industry and other risks detailed in the Company's Securities and Exchange
Commission filings. Accordingly, actual results may differ, possibly materially,
from the predictions contained herein.

Company operations were up during the third quarter of Fiscal 2001, ended May
31, 2001, as sales increased over the second quarter of Fiscal 2001, ended
February 28, 2001. Gross sales decreased $2,726,941 during the third quarter of
Fiscal 2001 as compared to the third quarter of Fiscal 2000. During the third
quarter of Fiscal 2001, the Company experienced an increase in net income of
$32,416 as compared to the third quarter of Fiscal 2000. The overall result was
net income of $286,109 for the third quarter of Fiscal 2001 and net income for
the first nine months of Fiscal 2001 of $417,568. These were increases of
$32,416 and $46,115 respectively.

RESULTS OF OPERATIONS:


THREE MONTHS ENDED May 31, 2001 and 2000:

For the third quarter of the current fiscal year, ending May 31, 2001, sales
decreased 26% to $7,572,756 compared to $10,299,697 for the same quarter of the
previous year. The primary reason for the decrease in sales was the significant
overall drop in lumber prices.

General and administrative expenses for the Company were $865,425 for the third
quarter up from $655,001 for the third quarter of the previous year. The primary
reasons for the increase of $200,424 are increases of $35,394 in depreciation
and amortization; $14,778 in travel, entertainment and advertising; $182,868 in
wages and employee benefits; $20,168 in insurance; $9,392 in telephone and
utilities; and, $22,415 in warehouse expenses and supplies. Decreases; however,
did occur in the categories of professional fees of $11,392 and repairs and
maintenance of $5,583. The increase in corporate activity resulting from the
addition of Jewett-Cameron Seed Company accounted for the rise in overall
corporate expenses.

Net income for the quarter was $286,109. This represents an increase of 12% over
the third quarter of last year when net income was $253,693. The increase in net
income was due primarily to a decrease in the cost of sales of $2,661,781 and a
decrease in income tax expense of $249,000 over the prior like period.
<PAGE>
Earnings per share (fully diluted) were $0.28 for the third quarter of Fiscal
2001 compared to $0.23 for the third quarter of fiscal 2000 an increase of 20%.

NINE MONTHS ENDED May 31, 2001:

Sales for the first nine months of Fiscal 2001 decreased 9% to $15,838,071
compared to $17,435,133 in the same period last year.

Sales for Jewett-Cameron Lumber were $13,958,483 for the nine months ended May
31, 2001, down 15% compared to sales of $16,581,802 for the same period of last
year.

Sales for MSI-PRO (pneumatic tools and industrial clamps) were $716,219 for the
nine months ended May 31, 2001 compared to $807,729 for the same period of last
year, a decrease of $91,510.

Sales for Jewett-Cameron South Pacific in the Kingdom of Tonga were nil for the
nine months ended May 31, 2001 compared to $45,602 for the same period of last
year. The Company has almost completed winding down its operations in the
Kingdom of Tonga.

Sales for Jewett-Cameron Seed Company were $1,163,369 for the nine months ended
May 31, 2001. The Company entered the seed distribution business during the
three months period ended November 30, 2000. During that period the Company
acquired all of the assets, including land, buildings and equipment, of
Agrobiotech Inc. for total proceeds of $1,530,762. On October 31, 2000, the
Company incorporated Jewett-Cameron Seed Co. under the laws of Oregon. This
subsidiary operates as a processor and distributor of agricultural seed products
and the nine month period ended May 31, 2001 is the first nine month reporting
period for the Company's seed sales.

General and administrative expenses for the Company were $2,245,479 for the nine
month period up from $1,688,143 for the same period of last year. The primary
reasons for the increase of $557,336 are increases of $70,087 in depreciation
and amortization; $47,992 in insurance; $10,858 in office and miscellaneous;
$14,432 in telephone and utilities; $19,100 in travel, entertainment and
advertising; $68,348 in warehouse expenses and supplies; and, $429,000 in wages
and employee benefits. All of these expense categories increased because of the
addition of the Company's wholly owned subsidiary, Jewett-Cameron Seed Company.
The expense categories of professional fees and repairs and maintenance
decreased from the prior like nine month period by $43,076.

Net income for the first nine months of Fiscal 2001 was $417,568 which
represents a 12% increase over the first nine months of last year when net
income was $371,453. The increase in net income was due primarily to a decrease
in income tax expense of $296,000.

Earnings per share (fully diluted) were $0.40 for the first nine months of
Fiscal 2001 compared to $0.35 for the same period of fiscal 2000. Basic earnings
per share were $0.42 for the first nine months of Fiscal 2001 compared to $0.36
for the same period of fiscal 2000, an increase of 16%.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

As of May 31, 2001 the Company had working capital of $3,421,809 which
represented a decrease of $867,985 as compared to the working capital of
$4,289,794 as of May 31, 2000. The decrease in working capital was due to a
decrease in cash and cash equivalents of $54,161 and an increase in bank
indebtedness of $2,483,517. These factors were offset by increases in accounts
receivable of $1,238,189; $393,768 in inventory; and, $72,306 in prepaid
expenses. The increase in bank indebtedness, which accounted for the decrease in
working capital, was a result of increased activity by the Company's wholly
owned subsidiary, Jewett-Cameron Seed Company.

Accounts Receivable and Inventory represented 96% of current assets and both
continue to turn over at acceptable rates.

External sources of liquidity include bank credit lines from the United States
National Bank of Oregon and Key Bank. The total line of credit available from
the United States National Bank of Oregon is $5 million of which there was an
outstanding balance as of May 31, 2001 of $2,483,517. The total line of credit
available from Key Bank is $1 million of which there was no outstanding balance.
As of the end of Fiscal 2000 (August 31st) the Company had no outstanding
balances at either financial institution and at the end of the third quarter of
Fiscal 2000, the Company also had no outstanding balances at either institution.

Based on the Company's current working capital position, its policy of retaining
earnings, and the line of credit available, management believes that the Company
has adequate working capital to meet its needs during the current fiscal year.

IMPACT OF THE YEAR 2000 ISSUE:

The Year 2000 Issue arises because many computerized systems use two digits
rather than four to identify a year. Date-sensitive systems may recognize the
year 2000 as 1900 or some other date, resulting in errors when information using
year 2000 dates is processed. In addition, similar problems may arise in some
systems which use certain dates in 1999 to represent something other than a
date. Although the change in date has occurred, it is not possible to conclude
that all aspects of the Year 2000 Issue that may affect the company including
those related to customers, suppliers, or other third parties, have been fully
resolved.

 ITEM 3.          QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
                  MARKET RISKS:

The Company does not have any derivative financial instruments as of May 31,
2001. However, the Company is exposed to interest rate risk.

The Company's interest income and expense are most sensitive to changes in the
general level of U.S. interest rates. In this regard, changes in U.S. interest
rates affect the interest earned on the Company's cash equivalents as well as
interest paid on debt.

The Company has a line of credit whose interest rate is based on various
published rates that may fluctuate over time based on economic changes in the
environment. The
<PAGE>
Company is subject to interest rate risk and could be subject to increased
interest payments if market interest rates fluctuate. The Company does not
expect any change in the interest rates to have a material adverse effect on the
Company's results from operations.

FOREIGN CURRENCY RISK

The Company operates a subsidiary in the Kingdom of Tonga. The Company's
business and financial condition is, therefore, sensitive to currency exchange
rates or any other restrictions imposed on its currency. Since the Company is
currently winding down its operations in the Kingdom of Tonga, management does
not expect the foreign currency exchange rates to significantly impact the
Company in the future.

                           Part II - OTHER INFORMATION

         Item 1.   Legal Proceedings - None
         Item 2.   Changes in Securities - None
         Item 3.   Default Upon Senior Securities - None
         Item 4.   Submission of Matters to a Vote of Securities Holders - None
         Item 5.   Other Information - None
         Item 6    Reports on Form 8-K - None


                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                       Jewett-Cameron Trading Company Ltd.
                                                         (Registrant)


Dated: July 12, 2000                   /s/ DONALD M. BOONE
       ---------------                 -------------------
                                       Donald M. Boone, President/CEO/Director






<PAGE>
                       JEWETT-CAMERON TRADING COMPANY LTD.


                        CONSOLIDATED FINANCIAL STATEMENTS
                           (Expressed in U.S. Dollars)
                      (Unaudited - Prepared by Management)


                                  MAY 31, 2001



<PAGE>
<TABLE>
<CAPTION>
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)

===============================================================================================

                                                                     May 31,        August 31,
                                                                      2001            2000
---------------------------------------------------------------- -------------   --------------
<S>                                                              <C>             <C>


ASSETS


Current
    Cash and cash equivalents                                    $     154,116   $     208,277
    Accounts receivable                                              3,779,576       2,541,387
    Inventory                                                        3,016,343       2,622,575
    Prepaid expenses                                                    96,553          24,247
                                                                 -------------   -------------

    Total current assets                                             7,046,588       5,396,486

Capital assets (Note 3)                                              2,812,528       1,343,929

Deferred income taxes (Note 4)                                         122,200         122,200

Deposits                                                                74,745          74,745
                                                                 -------------   -------------

                                                                 $  10,056,061   $   6,937,360
================================================================ =============   =============

Continued.....
























The accompanying notes are an integral part of these consolidated financial
statements.



<PAGE>


JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)

==============================================================================================



Cont'd.....

LIABILITIES AND STOCKHOLDERS' EQUITY


Current
    Bank indebtedness (Note 5)                                   $   2,483,517   $          -
    Accounts payable and accrued liabilities                         1,141,262         787,128
                                                                 -------------   -------------

    Total current liabilities                                        3,624,779         787,128
                                                                 -------------   -------------


Stockholders' equity
    Capital stock
       Authorized
          20,000,000  common shares, without par value
          10,000,000  preferred shares, without par value

       Issued
          1,074,162  common shares (August 31, 2000 - 1,074,162)     1,795,157       1,795,157

    Additional paid-in capital                                         582,247         582,247
    Retained earnings                                                4,523,038       4,105,470
                                                                 -------------   -------------

                                                                     6,900,442       6,482,874
    Less:  Treasury stock - 96,000 common shares
                           (August 31, 2000 - 65,500)                 (469,160)       (332,642)
                                                                 -------------   -------------

                                                                     6,431,282       6,150,232

                                                                 $  10,056,061   $   6,937,360
================================================================ =============   =============
</TABLE>

Contingent liabilities and commitments (Note 9)














The accompanying notes are an integral part of these consolidated financial
statements.


<PAGE>
<TABLE>
<CAPTION>
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)

=========================================================== ================ =============== ================ ================

                                                                Three Month      Three Month      Nine Month       Nine Month
                                                               Period Ended     Period Ended    Period Ended     Period Ended
                                                                    May 31,          May 31,         May 31,          May 31,
                                                                       2001            2000             2001             2000
----------------------------------------------------------- ---------------- --------------- ---------------- ----------------
<S>                                                         <C>              <C>             <C>              <C>

SALES                                                       $     7,572,756  $   10,299,697  $    15,838,071  $    17,435,133

COST OF SALES                                                     6,393,014       9,054,795       13,052,490       14,917,098
                                                            ---------------  --------------  ---------------  ---------------

GROSS PROFIT                                                      1,179,742       1,244,902        2,785,581        2,518,035

GENERAL AND ADMINISTRATIVE
EXPENSES - Schedule                                                 865,425         665,001        2,245,479        1,688,143

Foreign exchange gain (loss)                                         11,764         (10,760)         (22,119)         (40,052)
                                                            ---------------  --------------  ---------------  ---------------

Income from operations                                              326,081         569,141          517,983          789,840
                                                            ---------------  --------------  ---------------  ---------------


OTHER ITEMS
    Loss on disposal of capital assets                                   -          (11,528)              -           (53,110)
    Interest and other income                                        14,154             789           19,574           17,226
    Interest expense                                                (54,126)        (55,709)        (106,989)         (73,503)
                                                            ---------------  --------------  ---------------  ---------------

                                                                    (39,972)        (66,448)         (87,415)        (109,387)
                                                            ---------------  --------------  ---------------  ---------------


Income before income taxes                                          286,109         502,693          430,568          680,453


Income tax (expense) recovery                                            -         (249,000)         (13,000)        (309,000)
                                                            ---------------  --------------  ---------------  ---------------


Net income for the period                                   $       286,109  $      253,693  $       417,568  $       371,453
=========================================================== ================ =============== ================ ================


Basic earnings per share                                    $         0.29   $         0.24  $         0.42   $         0.36
=========================================================== ================ =============== ================ ================


Diluted earnings per share                                  $         0.28   $         0.23  $         0.40   $         0.35
=========================================================== ================ =============== ================ ================
</TABLE>







The accompanying notes are an integral part of these consolidated financial
statements.


<PAGE>
<TABLE>
<CAPTION>
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED SCHEDULES OF GENERAL AND ADMINISTRATIVE EXPENSES
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)

======================================= ================ =============== ================ ================

                                            Three Month      Three Month      Nine Month       Nine Month
                                           Period Ended     Period Ended    Period Ended     Period Ended
                                                May 31,          May 31,         May 31,          May 31,
                                                   2001            2000             2001             2000
--------------------------------------- ---------------- --------------- ---------------- ----------------
<S>                                     <C>              <C>             <C>              <C>


Bad debt (recovery)                     $       (28,266) $       39,558  $       (61,579) $          (442)

Consulting                                          487              -             1,732               -

Depreciation and amortization                    66,361          30,967          160,370           90,283

Insurance                                        35,731          15,563           87,993           40,001

Office and miscellaneous                         59,653          59,932          179,522          168,664

Professional fees                                17,371          28,763           72,120          106,482

Repairs and maintenance                           8,257          13,840           28,487           37,201

Telephone and utilities                          30,185          20,793           76,117           61,685

Travel, entertainment and advertising            49,235          34,457          130,304          111,204

Warehouse expenses and supplies                  60,866          38,451          148,513           80,165

Wages and employee benefits                     565,545         382,677        1,421,900          992,900
                                        ---------------  --------------  ---------------  ---------------

                                        $       865,425  $      665,001  $     2,245,479  $     1,688,143
======================================= ================ =============== ================ ================
</TABLE>



















The accompanying notes are an integral part of these consolidated financial
statements.

<PAGE>
<TABLE>
<CAPTION>
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)

=========================================================== ================ =============== ================ ================

                                                                Three Month      Three Month      Nine Month       Nine Month
                                                               Period Ended     Period Ended    Period Ended     Period Ended
                                                                    May 31,          May 31,         May 31,          May 31,
                                                                       2001            2000             2001             2000
----------------------------------------------------------- ---------------- --------------- ---------------- ----------------
<S>                                                         <C>              <C>             <C>              <C>



CASH FLOWS FROM OPERATING ACTIVITIES
 Net income                                                 $       286,109  $      253,693  $       417,568  $       371,453
 Items not involving an outlay of cash:
    Depreciation and amortization                                    66,361          30,967          160,370           90,283
    Loss on disposal of capital assets                                   -           11,528               -            53,110

 Changes in non-cash working capital items:
    Increase in accounts receivable                              (1,176,779)     (1,532,610)      (1,238,189)        (543,141)
    (Increase) decrease in inventory                              1,697,519       1,270,741         (393,768)      (1,131,560)
    (Increase) decrease in prepaid expenses                          50,375          37,077          (72,306)         (34,929)
    Increase (decrease) in bank indebtedness                       (688,207)       (207,826)       2,483,517        1,912,168
    Increase (decrease) in accounts payable
      and accrued liabilities                                      (226,804)        532,588          354,134         (146,022)
                                                            ---------------  --------------  ---------------  ---------------

 Net cash provided by operating activities                            8,574         396,158        1,711,326          571,362
                                                            ---------------  --------------  ---------------  ---------------


CASH FLOWS FROM INVESTING ACTIVITIES
 Treasury shares acquired                                           (11,341)        (93,967)        (136,518)        (373,800)
 Purchase of capital assets                                         (34,254)         (8,913)      (1,628,969)         (32,319)
 Deposits                                                                -             (400)              -              (400)
                                                            ---------------  --------------  ---------------  ---------------

 Net cash used in investing activities                              (45,595)       (103,280)      (1,765,487)        (406,519)
                                                            ---------------  --------------  ---------------  ---------------


Change in cash and cash equivalents                                 (37,021)        292,878          (54,161)         164,843


Cash and cash equivalents, beginning of period                      191,137          95,914          208,277          223,949
                                                            ---------------  --------------  ---------------  ---------------


Cash and cash equivalents, end of period                    $       154,116  $      388,792  $       154,116  $       388,792
=========================================================== ================ =============== ================ ================
</TABLE>

Supplemental disclosure with respect to cash flows (Note 10)







The accompanying notes are an integral part of these consolidated financial
statements.


<PAGE>
<TABLE>
<CAPTION>
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Expressed in U.S. Dollars)
(Unaudited - Prepared by Management)

=================================== ========================= ========================== =========== ============ ============


                                          Common Stock             Treasury Shares
                                    ------------------------- --------------------------  Additional
                                        Number                    Number                   Paid-In     Retained
                                      of Shares       Amount    of Shares        Amount    Capital     Earnings       Total
----------------------------------- ------------ ------------ ------------ ------------- ----------- ------------ ------------
<S>                                 <C>          <C>          <C>          <C>           <C>         <C>          <C>

Balance, August 31, 1999              1,157,162  $ 1,932,097       61,900  $   319,399   $  582,247  $ 3,789,134  $ 5,984,079

Net income for the year                      -            -            -            -            -       608,679      608,679
Shares cancelled                        (83,000)    (136,940)          -            -            -            -      (136,940)
Treasury shares acquired                     -            -        86,600      442,526           -            -      (442,526)
Treasury shares cancelled                    -            -       (83,000)    (429,283)          -            -       429,283
Premium relating to cancellation
    of share capital                         -            -            -            -            -      (292,343)    (292,343)
                                    -----------  -----------  -----------  -----------   ----------  -----------  -----------


Balance, August 31, 2000              1,074,162    1,795,157       65,500      332,642      582,247    4,105,470    6,150,232

Net income for the period                    -            -            -            -            -       417,568      417,568
Treasury shares acquired                     -            -        30,500      136,518           -            -      (136,518)
                                    -----------  -----------  -----------  -----------   ----------  -----------  -----------


Balance, May 31, 2001                 1,074,162  $ 1,795,157       96,000  $   469,160   $  582,247  $ 4,523,038  $ 6,431,282
=================================== ============ ============ ============ ============= =========== ============ ============
</TABLE>


























The accompanying notes are an integral part of these consolidated financial
statements.


<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)
MAY 31, 2001



1.       BUSINESS COMBINATION AND ACQUISITION

         The Company was incorporated under the Company Act of British Columbia
         on July 8, 1987.

         During the period, the Company acquired all of the assets, including
         land, buildings and equipment of Agrobiotech Inc. (Hillsborough) for
         total proceeds of $1,530,762.

         The cost of the acquisition was allocated as follows:

                Land                                $       456,713
                Buildings                                   782,781
                Warehouse equipment                         285,768
                Office equipment                              5,500
                                                    ---------------

                                                    $     1,530,762
                                                    ===============

         The Company and its subsidiaries operate as a distributor of lumber and
         other building products, as a distributor of industrial tools, and as a
         retailer of building materials.

         Following the acquisition, the Company incorporated Jewett-Cameron Seed
         Co. under the laws of Oregon, U.S.A. on October 31, 2000. This
         subsidiary operates as a processor and distributor of agricultural seed
         products.

2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         Generally accepted accounting principles

         In the opinion of management, the accompanying consolidated financial
         statements contain all adjustments necessary (consisting only of normal
         recurring accruals) to present fairly the financial information
         contained therein. These statements do not include all disclosures
         required by generally accepted accounting principles and should be read
         in conjunction with the audited financial statements of the Company for
         the year ended August 31, 2000. The results of operations for the
         period ended May 31, 2001 are not necessarily indicative of the results
         to be expected for the year ending August 31, 2001.

         Principles of consolidation

         These consolidated financial statements include the accounts of the
         Company and its wholly-owned subsidiaries, The Jewett-Cameron Lumber
         Corporation, MSI-Pro Co., and Jewett-Cameron Seed Co., all of which are
         incorporated under the laws of Oregon, U.S.A. and Jewett-Cameron South
         Pacific Ltd., which is incorporated under the laws of Tonga.

         Significant inter-company balances and transactions have been
         eliminated upon consolidation.

         Estimates

         The preparation of financial statements in conformity with generally
         accepted accounting principles required management to make estimates
         and assumptions that affect the reported amounts of assets and
         liabilities and disclosure of contingent assets and liabilities at the
         date of the financial statements and the reported amounts of revenues
         and expenses during the reporting period. Actual results could differ
         from those estimates.


<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)
MAY 31, 2001



2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd.....)


         Revenue recognition

         The Company recognizes revenue from the sales of building supply
         products, tools and processed agricultural seeds, when the products are
         shipped and the ultimate collection is reasonably assured.


         Currency

         These financial statements are expressed in U.S. dollars as the
         Company's operations are based predominantly in the United States.


         Cash and cash equivalents

         Cash and cash equivalents include highly liquid investments with
         original maturities of three months or less.


         Inventory

         Inventory is recorded at the lower of cost and net realizable value
         based on the average cost method.


         Capital assets and depreciation

         Capital assets are recorded at cost and the Company provides for
         depreciation over the estimated life of each asset on a straight-line
         basis over the following periods:

          Office equipment                             5-7 years
          Warehouse equipment                          2-10 years
          Buildings                                    5- 30 years


         Foreign exchange

         Financial statements of the Company's foreign subsidiaries are
         translated whereby all monetary assets and liabilities are translated
         at the rate of exchange at the balance sheet date. Non-monetary assets
         and liabilities are translated at exchange rates prevailing at the
         transaction date. Income and expenses are translated at rates which
         approximate those in effect on transaction dates. Gains and losses
         arising from restatement of foreign currency monetary assets and
         liabilities at each period end are included in earnings.


         Comparative figures

         Certain comparative figures have been reclassified to conform with the
         presentation adopted for the current period.


<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)
MAY 31, 2001



2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd.....)




         Financial instruments

         The Company's financial instruments consist of cash and cash
         equivalents, accounts receivable, deposits, bank indebtedness and
         accounts payable and accrued liabilities. Unless otherwise noted, it is
         management's opinion that the Company is not exposed to significant
         interest, currency or credit risks arising from these financial
         instruments. The fair value of these financial instruments approximate
         their carrying values, unless otherwise noted.



         Earnings per share

         In February 1997, the Financial Accounting Standards Board issued
         Statement of Financial Accounting Standards No. 128, "Earnings Per
         Share" ("SFAS 128"). Under SFAS 128, basic and diluted earnings per
         share are to be presented. Basic earnings per share is computed by
         dividing income available to common shareholders by the weighted
         average number of common shares outstanding in the period. Diluted
         earnings per share takes into consideration common shares outstanding
         (computed under basic earnings per share) and potentially dilutive
         common shares.


         The earnings per share data for the periods ended May 31 is summarized
         as follows:
<TABLE>
<CAPTION>
         ================================================ =============== ================ ================ ===============

                                                             Three Month      Three Month       Nine Month      Nine Month
                                                            Period Ended     Period Ended     Period Ended    Period Ended
                                                                 May 31,          May 31,          May 31,         May 31,
                                                                    2001             2000             2001            2000
         ------------------------------------------------ --------------- ---------------- ---------------- ---------------
<S>                                                       <C>             <C>              <C>              <C>
         Net income                                       $      286,109  $       253,693  $       417,568  $      371,453
                                                          ==============  ===============  ===============  ==============

         Basic earnings per share weighted
             average number of shares outstanding                998,506        1,042,362          998,506       1,042,362
         Effect of dilutive securities
             Stock options                                        33,673           28,880           33,673          28,880
                                                          --------------  ---------------  ---------------  --------------

         Diluted earnings per share weighted
             average number of shares outstanding              1,032,179        1,071,242        1,032,179       1,071,242
         ================================================ =============== ================ ================ ===============
</TABLE>


         Employee stock option plan

         The Company accounts for its employee stock option plan using the
         intrinsic value method.


<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)
MAY 31, 2001



2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd.....)


         Accounting for derivative instruments and hedging activities

         In September 1998, the Financial Accounting Standards Board ("FASB")
         issued Statement of Financial Accounting Standards No. 133 "Accounting
         for Derivative Instruments and Hedging Activities" ("SFAS 133") which
         establishes accounting and reporting standards for derivative
         instruments and for hedging activities. SFAS 133 is effective for all
         fiscal quarters of fiscal years beginning after June 15, 1999. In June
         1999, the FASB issued SFAS 137 to defer the effective date of SFAS 133
         to fiscal quarters of fiscal years beginning after June 15, 2000. In
         June 2000, the FASB issued Statement of Financial Accounting Standards
         No. 138 which is a significant amendment to SFAS 133. The adoption by
         the Company of these standards is not expected to have a material
         impact on its financial statements.


         Post retirement benefits

         Post retirement benefits are accounted for on an accrual basis. Any
         difference between net periodic post retirement benefit cost charged
         against income and the amount actually funded is recorded as an accrued
         or prepaid cost. This policy is consistent with Financial Accounting
         Standards No. 106, "Employers Accounting for Post Retirement Benefits
         Other than Pensions".



3.       CAPITAL ASSETS

         ====================================== =============== ===============

                                                       May 31,      August 31,
                                                          2001            2000
         -------------------------------------- --------------- ---------------

         Office equipment                       $     198,736   $     185,422
         Warehouse equipment                          583,451         221,568
         Buildings                                  2,310,074       1,288,340
         Land                                         607,713         375,593
                                                -------------   -------------

                                                    3,699,974       2,070,923
         Accumulated depreciation                    (887,446)       (726,994)
                                                -------------   -------------

         Net book value                         $   2,812,528   $   1,343,929
         ====================================== =============== ===============


         In the event that facts and circumstances indicate that the carrying
         amount of an asset may not be recoverable and an estimate of future
         undiscounted cash flows is less than the carrying amount of the asset,
         an impairment loss will be recognized. Management's estimates of
         revenues, operating expenses, and operating capital are subject to
         certain risks and uncertainties which may affect the recoverability of
         the Company's investments. Although management has made its best
         estimate of these factors based on current conditions, it is possible
         that changes could occur which could adversely affect management's
         estimate of the net cash flow expected to be generated from its
         operations.


<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)
MAY 31, 2001



4.       DEFERRED INCOME TAXES

         Deferred income taxes of $122,200 (August 31, 2000 - $122,200) relate
         principally to timing differences between the accounting and tax
         treatment of income, expenses, reserves and depreciation.

5.       BANK INDEBTEDNESS

         ====================================== =============== ===============

                                                       May 31,      August 31,
                                                          2001            2000
         -------------------------------------- --------------- ---------------

         Demand loan                            $   2,483,517   $          -
         ====================================== =============== ===============

         The bank indebtedness is secured by an assignment of accounts
         receivable and inventory. Interest is calculated at either prime or the
         libor rate plus 225 basis points.

6.       STOCK OPTIONS

         Stock options to purchase securities from the Company can be granted to
         directors and employees of the Company on terms and conditions
         acceptable to the regulatory authorities of Canada, notably the Toronto
         Stock Exchange ("TSE") and the Ontario Securities Commission.

         Under the stock option program, stock options for up to 10% of the
         number of issued and outstanding common shares may be granted from time
         to time, provided that stock options in favour of any one individual
         may not exceed 5% of the issued and outstanding common shares. No stock
         option granted under the stock option program is transferable by the
         optionee other than by will or the laws of descent and distribution,
         and each stock option is exercisable during the lifetime of the
         optionee only by such optionee.

         The exercise price of all stock options, granted under the stock option
         program, must be at least equal to the fair market value (subject to
         regulated discounts) of such common shares on the date of grant.

         At May 31, 2001, employee incentive stock options were outstanding
         enabling the holders to acquire the following number of shares:

         ============  ==============  ================

             Number        Exercise
           of Shares        Price      Expiry Date
         ------------  --------------  ----------------

              70,000       Cdn$ 4.25   August 6, 2006
         ============  ==============  ================

7.       EMPLOYEE STOCK OWNERSHIP PLAN

         The Company sponsored an employee stock ownership plan ("ESOP") that
         covers all U.S. employees who are employed by the Company on August 31
         of each year and who have at least one thousand hours with the Company
         in the twelve months preceding that date. The ESOP grants to
         participants in the plan certain ownership rights in, but not
         possession of, the common stock of the Company held by the Trustee of
         the Plan. Shares of common stock are allocated annually to participants
         in the ESOP pursuant to a prescribed formula.


<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)
MAY 31, 2001



8.       STOCK BASED COMPENSATION EXPENSE

         Statement of Financial Accounting Standards No. 123, "Accounting for
         Stock-Based Compensation", encourages but does not require companies to
         record compensation cost for stock-based employee compensation plans at
         fair value. The Company has chosen to account for stock-based
         compensation using Accounting Principles Board Opinion No. 25,
         "Accounting for Stock Issued to Employees". Accordingly, compensation
         cost for stock options is measured as the excess, if any, of quoted
         market price of the Company's stock at the date of grant over the
         option price. No stock based compensation has resulted from the use of
         this standard.

         No new stock options were granted during the fiscal periods ended May
         31, 2001 and 2000.


         Following is a summary of the status of the plan during 2001 and 2000:

         =======================================================================

                                                                       Weighted
                                                                        Average
                                                             Number    Exercise
                                                          of Shares       Price
         ------------------------------------------------ ---------- -----------

         Outstanding at August 31, 1999                      82,000  Cdn$  4.34

             Granted                                             -
             Forfeited                                           -
             Exercised                                           -
                                                          --------

         Outstanding at May 31, 2000 and August 31, 2000     82,000  Cdn$  4.34

             Granted                                             -
             Forfeited                                      (12,000) Cdn$  4.34
             Exercised                                           -
                                                          --------

         Outstanding at May 31, 2001                         70,000  Cdn$  4.25
         ================================================ ========== ===========


         Following is a summary of the status of options outstanding at May 31,
         2001:

         =======================================================================

                       Outstanding Options            Exercisable Options
                  -------------------------------    ---------------------

                              Weighted
                               Average  Weighted                 Weighted
                             Remaining   Average                  Average
                           Contractual  Exercise                 Exercise
Exercise Price     Number         Life     Price      Number        Price
----------------- -------- ------------ ---------    -------- ------------

Cdn$4.25           70,000        5.25   Cdn$ 4.25     70,000   Cdn$ 4.25
================= ======== ============ =========    ======== ============



<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)
MAY 31, 2001



9.       CONTINGENT LIABILITIES AND COMMITMENTS

         a)  The Company established an Employee Stock Ownership Plan, whereby
             the employees may earn shares of the Company using a formula based
             on years of service. The establishment of the plan resulted in the
             Company forming a trust, which acquired from the Company 90,000
             shares at a deemed price of Cdn$5.00 per share. As at May 31, 2001,
             129,200 of these shares were earned by the employees under this
             plan but remain in the trust (Note 7).

         b)  At May 31, 2001, the Company had an un-utilized line-of-credit of
             approximately $3,500,000.




10.      SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

         ======================================= =============== ===============

                                                        May 31,         May 31,
                                                           2001            2000
         --------------------------------------- --------------- ---------------

         Cash paid during the period for:
             Interest                            $     106,989   $      77,503
             Income taxes                                   -          577,857
         ======================================= =============== ===============

         There were no significant non-cash transactions for the nine month
         period ended May 31, 2001.

         Significant non-cash transactions for the nine month period ended May
         31, 2000:

             The Company cancelled 83,000 treasury shares repurchased at a price
             of $429,283 which had an original cost $136,940. The difference
             between the original cost and purchase price of $292,343 was
             applied against retained earnings as a premium relating to the
             cancellation of share capital.




11.      SEGMENTED INFORMATION

         The Company's operations are classified into three principle industry
         segments: (sales of) building materials and (sales of) industrial tools
         and (sales of) processed agricultural seeds.

         Sales of building materials consists of wholesale sales of lumber and
         building materials in the United States and retail sales of building
         materials in Tonga. Sales of industrial tools consists of distribution
         of pneumatic air tools and industrial clamps in the United States.
         Sales of seeds consists of distribution of processed agricultural seeds
         in the United States.

         In computing income from operations by industry segment, unallocable
         general and administrative expenses have been excluded from each
         segments' pre-tax operating earnings before interest expense and have
         been included in general corporate and other operations.


<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)
MAY 31, 2001



11.      SEGMENTED INFORMATION (cont'd.....)

         Following is a summary of segmented information for the nine month
periods ended May 31, 2001 and 2000:

         =====================================================================

                                                       May 31,          May 31,
                                                          2001             2000
         -------------------------------------- --------------- ----------------
         Sales to unaffiliated customers:
             Building Materials:
                United States                   $   13,958,483  $   16,581,802
                South Pacific                               -           45,602
             Industrial tools                          716,219         807,729
             Seeds                                   1,163,369              -
                                                --------------  -------------

                                                $   15,838,071  $   17,435,133
                                                =============== ================
         Income from operations:
             Building Materials:
                United States                   $      602,530  $      878,108
                South Pacific                          (31,247)       (133,369)
             Industrial tools                           60,405         121,301
             Seeds                                     (32,538)             -
             General corporate                         (81,167)        (76,200)
                                                --------------  --------------

                                                $      517,983  $      789,840
                                                =============== ================
         Identifiable assets:
             Building Materials:
                United States                   $    9,468,694  $    8,584,550
                South Pacific                               -          250,280
             Industrial tools                          119,922         126,919
             Seeds                                     348,330              -
             General corporate                         119,115         115,651
                                                --------------  --------------

                                                $   10,056,061  $    9,077,400
                                                =============== ================
         Depreciation and amortization:
             Building Materials:
                United States                   $      132,112  $       87,743
                South Pacific                               -            1,716
             Industrial tools                              650             824
             Seeds                                      27,608              -
                                                --------------  -------------

                                                $      160,370  $       90,283
                                                =============== ================
         Capital expenditures:
             Building Materials:
                United States                   $       69,453  $       32,319
                South Pacific                               -               -
             Seeds                                   1,559,516              -
                                                --------------  -------------

                                                $    1,628,969  $       32,319
         ====================================== =============== ================


<PAGE>
JEWETT-CAMERON TRADING COMPANY LTD.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in U.S. dollars)
(Unaudited - Prepared by Management)
MAY 31, 2001



12.      CONCENTRATIONS OF CREDIT RISK

         Financial instruments which potentially subject the Company to
         concentrations of credit risk consist primarily of cash and trade
         receivables. As of May 31, 2001 and August 31, 2000, substantially all
         of the Company's cash, including amounts representing outstanding
         cheques, are deposited with U.S. Bank and U.S. Bancorp Securities.
         During the normal course of business, the Company extends credit to
         customers conducting business in the home improvement and wholesale
         seed industries.