Sep 24, 2008. /Lesprom.com/. PRT, North America's largest producer of container-grown forest seedlings is finding new ways to broaden its markets in the wake of the sharp drop in demand for lumber, Canada.com reported. The transition, prompted by the housing crisis unfolding in the United States, comes as the publicly traded PRT Forest Regeneration Income Fund marks its 20-year anniversary and celebrates the production of its two billionth seedling. PRT's strategy has been the focus of internal wrangling for many months, culminating in a Sept. 10 restructuring which saw three new trustees join an expanded board. Two of the new trustees were nominees of unitholder B.C. Bancorp Inc., a publicly listed merchant bank, which has urged a more diversified direction. "It's the beginning of looking at more opportunities for us to grow, rather than simply forest seedling markets alone," Herb Markgraf, company Vice-President of Marketing, said. The company has based its business on growing seedlings to plant in harvested areas. But if lumber isn't needed for new homes, then forest companies here and in the U.S. curtail their harvesting and don't need as many seedlings for replanting. This year's production will likely be down about 20% from the 205 million seedlings produced in 2007, Markgraf said. That's down from 2006, when the company said it grew 220 million seedlings. Of its 15 nurseries in Canada and the U.S., the Vernon location has been temporarily closed and others have been operated at less than full capacity, Markgraf said. PRT's only Vancouver Island nursery is in Campbell River. PRT believes there are retail opportunities for seedlings, he said. For example, runners at a recent Portland, Ore., marathon received a tree for crossing the finish line, and supermarket customers in the northeastern U.S. were given a seedling after sampling cheese. Potential markets could also be linked to demand for trees when agencies need carbon credits, he said. Fast-growing tree species could be produced to be used in energy production, Markgraf said, pointing out that wood pellets could heat buildings. "They do this in Europe.... That's a potential for us as well." The company has about 450 full-time equivalent staff, with a dozen in Victoria at the head office. Markgraf expects numbers will remain flat for staffing and that the company will bring in fewer temporary workers. "We are really focused on keeping on during these difficult times and getting ourselves ready for the turnaround, which we all expect," he said. "We all believe in the forest industry and we all believe in wooden two-by-fours."