The price that one producer is willing to pay for any given resource becomes the prices that other producers must pay for that same resource. One company could use wood to make baseball bats, another to make paper. It depends on how much it is worth to the producer of either as to where it ends up.
The effect can be less direct. Cows, which produce the milk used to make cheese, can be farmed longer for their dairy products if the price is right, meaning the far don’t slaughter the cows for meat, and fewer cowhides are made available for the production of catchers’ mitts.