VANCOUVER—The global forest, paper and packing (FPP) industry lost US$8 billion last year, according to a report released by PricewaterhouseCoopers at the Global Forest and Paper Industry Conference in Vancouver on May 8.

In 2007, the FPP industry recorded a profit of US$14 billion. Canada and South America saw the biggest drops, with Canada seeing a net loss in 2008 of $US4 billion, compared to a loss of US$900 million in 2007.

The report also noted that Canada—B.C. in particular—is the only region actually showing negative returns on investments because mills are closing and production is moving south. The report attributes this partly to the collapse of AbitibiBowater and also to the decline of newsprint consumption, which has fallen 50% in North America over the past ten years.

Pulp prices in 2008 were also at their highest since 1995.