Annual prices for medium to large logs increased by 1% for Coillte and 2% for private sales when 2016 and 2017 returns are compared (Table 1). Coillte prices for most category sizes were much higher than those achieved by the private sector and approximately 10% higher in the large log sizes (0.5m3 and greater). Prices achieved by private growers for small logs were up by 5% in 2017 compared with 2016.
All prices are for standing timber rather than roadside. Price comparisons between Coillte and private sales for small timber – pulpwood and fuel wood – are not available as Coillte retains small logs mainly for its two panelboard mills, so the private sector relies on data from the Wood Price Quarterly (WPQ) for small logs.
Prices down in final quarter
While average prices for 2017 are up, prices fell by up to 24% in the final quarter of 2017 for medium to large logs compared with the third quarter (Table 2). However, prices for the third quarter were exceptionally high and similar rates haven’t been achieved since 2015.
Against this trend, prices for small logs – achieved by private growers – increased by 12% between the third and final quarter last year. This is after omitting the exceptionally high price of €21.00/m3 for category 0.125m3 to 0.174m3 logs, which was for a small number of sales and is unlikely to reflect general trends (Table 2).
It is difficult to analyse log price trends as there are many variables including distance from markets, species mix, wood quality and site access. This is compounded when making comparisons between Coillte and private sales. Private sales are much fewer and smaller than Coillte’s, which also have a greater geographical spread.
Small log sales
The increase of 12% in prices for small logs in the final quarter of 2017 is encouraging, especially as prices for medium to large logs decreased. This is good news for private forest owners with crops either approaching, or at the first thinning stage.
High prices for small logs reflect a solid pulp market in the wood-based panel sector as well as an expanding wood for energy market.
Coillte v private prices
While increased prices for small wood is a positive development for private growers, log prices achieved by Coillte are consistently higher than those achieved by the private sector during 2016 and 2017.
Normally private prices track Coillte prices closely but a gap has opened. This is particularly noticeable in the medium log size categories while in the large log sizes Coillte prices are consistently 10% over private prices.
Because the number of private sales recorded is still small and inconsistent, it may be premature to draw conclusions as the differential may be a temporary trend. However, there are a number of reasons why private prices lag behind Coillte including:
Economies of scale: Coillte sale parcels are generally larger than private lots so harvesting and extraction costs are lower.Sales system: Coillte sells logs through a well-established quota and auction system which lends itself to real-time competitive pricing.Adding value: Coillte sales maximise prices in basket of products by better segregation of logs for pulp, fuel wood, fencing stakes, box or pallet and commercial sawlog.Current prices
Spokespersons for the main sawmills believe log prices have increased since December last year. Price and demand remain healthy in the UK, where most of the Irish sawn, pallet and fencing material ends up.
December to February has been a difficult trading period, especially in recent years when flooding and bad weather took their toll, especially in the construction and fencing markets. The bad weather arrived late this year so there was plenty of activity in mid winter. There may be a drop in prices from early March due to the recent spell of bad weather.
“The sawmilling industry is busy at the moment – it’s like we didn’t have a winter!” said John Ryan, forestry manager of the Murray Timber Group. “Demand is strong and markets are busy but we are still very much dependent on the UK market and currency fluctuation. Log prices are up on last year, which is good for growers.”
He pointed out that the Murray Group is a major Coillte customer but in recent years the company has also aimed its marketing, purchasing and promotional campaign at private forest owners.
“Medium to large logs are currently fetching €80m3 delivered to our mill and small roundwood is making €57m3,” he said. “These prices are from our Coillte contracts which I use in the private sector. The Coillte auctions are now only held every five weeks or so and have a premium attached if mills wish to purchase this material.”
He is referring to the way Coillte sells its logs to the sawmills. These are divided between contract and auction transactions. Contract sale prices allow for currency fluctuation and market prices for sawn timber. Contract or quota sales provide relative security of supply and price which are vital to mills, especially in the aftermath of Brexit and ensuing currency volatility.
However, prices can fluctuate widely at auction sales. In a recent auction, a quality lot of roadside timber reportedly passed the €100/m3 mark and while this might have been a one-off panic bid, it is a barometer of overall timber demand.
Sawmills and forestry companies are encouraged to make prices available to the WPQ, which is an important source of price data, especially for small logs. However, the WPQ, which is issued by UCD in collaboration with the Irish Timber Growers Association (ITGA), still contains data gaps as can be seen for the quarter October to December last year (Table 2), due to insufficient number of sales information in medium to large log size categories. However, the WPQ along with Coillte prices are vital sources of price data and over a calendar year they provide sufficient information to indicate price trends, especially for private forest owners.
Field day on forest management and certification
The Irish Timber Growers Association (ITGA) is holding a field day in Clonad woodlands near Tullamore on Thursday 19 April to discuss forest management planning, felling and certification in mature woodlands.
Clonad is an Irish Forestry Unit Trust (IForUT) 200ha mixed aged woodland with a diverse range of tree species. It was also the first private forest in Ireland to achieve FSC forest management certification. The day will also highlight the steps in preparing a forest timber sale including measurement and sampling procedures to assess crop volumes.
The ITGA Template Tree Sales Agreement and Timber Sales Dispatch System will also be outlined while the field day will also discuss other issues including the management of the local deer population. While the field day is mainly aimed at ITGA members, non-members are welcome but should contact the ITGA (info@itga.ie) to book a place and receive further details.
Read more
Forest cover at highest level in over 350 years
Annual prices for medium to large logs increased by 1% for Coillte and 2% for private sales when 2016 and 2017 returns are compared (Table 1). Coillte prices for most category sizes were much higher than those achieved by the private sector and approximately 10% higher in the large log sizes (0.5m3 and greater). Prices achieved by private growers for small logs were up by 5% in 2017 compared with 2016.
All prices are for standing timber rather than roadside. Price comparisons between Coillte and private sales for small timber – pulpwood and fuel wood – are not available as Coillte retains small logs mainly for its two panelboard mills, so the private sector relies on data from the Wood Price Quarterly (WPQ) for small logs.
Prices down in final quarter
While average prices for 2017 are up, prices fell by up to 24% in the final quarter of 2017 for medium to large logs compared with the third quarter (Table 2). However, prices for the third quarter were exceptionally high and similar rates haven’t been achieved since 2015.
Against this trend, prices for small logs – achieved by private growers – increased by 12% between the third and final quarter last year. This is after omitting the exceptionally high price of €21.00/m3 for category 0.125m3 to 0.174m3 logs, which was for a small number of sales and is unlikely to reflect general trends (Table 2).
It is difficult to analyse log price trends as there are many variables including distance from markets, species mix, wood quality and site access. This is compounded when making comparisons between Coillte and private sales. Private sales are much fewer and smaller than Coillte’s, which also have a greater geographical spread.
Small log sales
The increase of 12% in prices for small logs in the final quarter of 2017 is encouraging, especially as prices for medium to large logs decreased. This is good news for private forest owners with crops either approaching, or at the first thinning stage.
High prices for small logs reflect a solid pulp market in the wood-based panel sector as well as an expanding wood for energy market.
Coillte v private prices
While increased prices for small wood is a positive development for private growers, log prices achieved by Coillte are consistently higher than those achieved by the private sector during 2016 and 2017.
Normally private prices track Coillte prices closely but a gap has opened. This is particularly noticeable in the medium log size categories while in the large log sizes Coillte prices are consistently 10% over private prices.
Because the number of private sales recorded is still small and inconsistent, it may be premature to draw conclusions as the differential may be a temporary trend. However, there are a number of reasons why private prices lag behind Coillte including:
Economies of scale: Coillte sale parcels are generally larger than private lots so harvesting and extraction costs are lower.Sales system: Coillte sells logs through a well-established quota and auction system which lends itself to real-time competitive pricing.Adding value: Coillte sales maximise prices in basket of products by better segregation of logs for pulp, fuel wood, fencing stakes, box or pallet and commercial sawlog.Current prices
Spokespersons for the main sawmills believe log prices have increased since December last year. Price and demand remain healthy in the UK, where most of the Irish sawn, pallet and fencing material ends up.
December to February has been a difficult trading period, especially in recent years when flooding and bad weather took their toll, especially in the construction and fencing markets. The bad weather arrived late this year so there was plenty of activity in mid winter. There may be a drop in prices from early March due to the recent spell of bad weather.
“The sawmilling industry is busy at the moment – it’s like we didn’t have a winter!” said John Ryan, forestry manager of the Murray Timber Group. “Demand is strong and markets are busy but we are still very much dependent on the UK market and currency fluctuation. Log prices are up on last year, which is good for growers.”
He pointed out that the Murray Group is a major Coillte customer but in recent years the company has also aimed its marketing, purchasing and promotional campaign at private forest owners.
“Medium to large logs are currently fetching €80m3 delivered to our mill and small roundwood is making €57m3,” he said. “These prices are from our Coillte contracts which I use in the private sector. The Coillte auctions are now only held every five weeks or so and have a premium attached if mills wish to purchase this material.”
He is referring to the way Coillte sells its logs to the sawmills. These are divided between contract and auction transactions. Contract sale prices allow for currency fluctuation and market prices for sawn timber. Contract or quota sales provide relative security of supply and price which are vital to mills, especially in the aftermath of Brexit and ensuing currency volatility.
However, prices can fluctuate widely at auction sales. In a recent auction, a quality lot of roadside timber reportedly passed the €100/m3 mark and while this might have been a one-off panic bid, it is a barometer of overall timber demand.
Sawmills and forestry companies are encouraged to make prices available to the WPQ, which is an important source of price data, especially for small logs. However, the WPQ, which is issued by UCD in collaboration with the Irish Timber Growers Association (ITGA), still contains data gaps as can be seen for the quarter October to December last year (Table 2), due to insufficient number of sales information in medium to large log size categories. However, the WPQ along with Coillte prices are vital sources of price data and over a calendar year they provide sufficient information to indicate price trends, especially for private forest owners.
Field day on forest management and certification
The Irish Timber Growers Association (ITGA) is holding a field day in Clonad woodlands near Tullamore on Thursday 19 April to discuss forest management planning, felling and certification in mature woodlands.
Clonad is an Irish Forestry Unit Trust (IForUT) 200ha mixed aged woodland with a diverse range of tree species. It was also the first private forest in Ireland to achieve FSC forest management certification. The day will also highlight the steps in preparing a forest timber sale including measurement and sampling procedures to assess crop volumes.
The ITGA Template Tree Sales Agreement and Timber Sales Dispatch System will also be outlined while the field day will also discuss other issues including the management of the local deer population. While the field day is mainly aimed at ITGA members, non-members are welcome but should contact the ITGA (info@itga.ie) to book a place and receive further details.
Read more
Forest cover at highest level in over 350 years
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