IFA timber market report shows decline in prices
IFA Farm Forestry chair Jason Fleming said the IFA timber price survey from July to September shows that economic uncertainty, due to the Russian invasion of Ukraine, and a decline in consumer confidence due to the rising cost of living, are having an impact on timber prices.
He said: “The significant price rises seen post-pandemic during 2021 and in the beginning of 2022 have declined in the last three months. According to the CSO, building and construction output was down 4.5% in the first quarter of this year, and we are seeing this impact reflected in timber prices.” The prices quoted for timber varied significantly, with roadside pulpwood prices ranging from €28 to €40 per tonne; stakewood prices ranging from €35 to €44 per tonne; and palletwood prices ranging from €37 to €72 per tonne (depending on the length of palletwood).
The prices for sawlog have experienced the greatest drop, with prices ranging from €80 to €110 per tonne, representing a 20% decrease compared to 2021 prices.
Jason Fleming said the downturn in prices adds to the frustration of many farmers who were unable to take advantage of the exceptional timber prices in 2021 due to delays as a result of the forest licence crisis. “The variation in timber prices makes it even more important that farmers get several quotes before they make a decision.
“When farmers get a quote for palletwood, they should be aware that the price differs depending on the lengths of the product, as the price between different lengths varies considerably.”
The prices quoted in the IFA Farm Forestry Timber Market report were sourced from forest owners, forestry companies and sawmills. Meanwhile, Mr Fleming has acknowledged the improvements in the system for forestry licences and that output has increased. In September 2021, there were approx. 4,700 licences in the system for more than 120 days. This figure is down to 1,700.
However, he said there are still 885 licences that have been in the system for over 13 months.
“The target set down for licences to be cleared is four months. There should be no forest licence applications pending a decision for longer, unless additional information has been requested. The Department is currently working through licences that have been in the system for more than two years, which is well outside the target, and they hope to clear these soon,” he stated. “Ultimately it is going to take time for farmers’ confidence in the system to be restored. They are very annoyed that many were unable to take advantage of the exceptional timber prices in 2021 as a result of the forest licence crisis,” he said.