One of the ways in which the private sector can contribute to the growing success of Aboriginal entrepreneurs is through joint ventures. In this article, we focus on joint ventures (JVs) with indigenous communities, unlike independent Aboriginal businesses. There are different ways to enter into agreements with First Nations, including service provider agreements, joint ventures and partnerships. “We are proud to lead the way for First Nations in Canada to secure forest properties on their traditional lands and take advantage of the tree stump to go far beyond the mill`s production gates to international timber markets,” said Bill Spade, Director of Eabametoong, ALLP. “We hope that this model can be replicated in other forest management units with other First Nations and communities across the country,” Spade said. The new Joint Venture Agoke will provide revenue sharing, participation options and a first right of refusal for forest road construction contracts; harvesting and supplying wood; and research on biomass/biofuel production opportunities. “This joint enterprise agreement is part of Agoke`s comprehensive strategy that will help us continue to ensure that local forest resources are protected, managed and developed for the mutual benefit of our First Nation partners and peoples. It will open up urgent employment opportunities in the Greenstone area and add another source of income to our First Nation partners,” said Mark Bell, President, Aroland Director, ALLP. The timing of the joint venture is decisive, as a shortage of wood in the United States has pushed wood prices to record levels, with builders sourcing one of the busiest construction seasons in years. The wood supply crisis is the result of a combination of the dispute between the United States and Canada with coniferous timber, rail transportation issues and forest fires in the West, which have had an impact on the supply of fibre in British Columbia. These factors created a perfect storm to give Ontario the opportunity to increase capacity to meet growing U.S.
real estate demand. U.S. real estate launches are expected to rebound to 1.5 million by 2020.