Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Gail Glazerman of UBS.
Gail Glazerman
Hi, good morning. I was wondering if you could maybe give a little more color on that comment you made about land seeing some weakness and land values. Is that really focused on any region or any type of land first of all? And then, second of all, is it anything dramatic enough to make better acquisition opportunities for you?
Michael J. Covey
Well, what I -- good morning Gail -- what I indicated was that we are seeing a weakness in demand not a weakness in values for land. We are seeing that across most market areas that we are active in, including the Lake states, Idaho and Arkansas. We gauge that by our MLS listings and other activity in these rural markets, where we are just seeing the number of transactions diminish, which is an indication of lower demand. We have not seen a corresponding decrease in price but we by no means are pushing product onto the market, either. So as it relates to acquisition opportunities I don’t think that what’s happening in the rural recreational land market really transfers at all to what we would think of as the broad landscape for timberland acquisitions.
Gail Glazerman
Okay, but it’s more the rural recreation. And a little more color also on the weakness in southern pulpwood. Is that more, just better harvest conditions? Is it more supply as more people swing and try to get something from pulpwood or is it on the demand side?
Michael J. Covey
I think demand remains strong. It’s really related to the springtime. There is more access. The weather has been favorable, reasonably good in the South and I think there is just more product on the market. So, we have seen a little bit of weakness but it’s still quite strong.
Gail Glazerman
Okay. Then finally just in terms of tissue, with the improvement -- I was impressed with the cost of inflation that you have had going on to see that type of improvement. I mean, is the market share gains that you are getting in terms of private label; is that really the main driver there? Because even pricing going through, given the cost escalation there I wouldn’t have thought you would have done quite so well on a year-over-year basis.
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