As the second quarter of 2024 draws to a close, the Irish timber market presents a remarkable record of consistency. According to a recent survey conducted by the Irish Farmers' Association (IFA), farmers have received stable prices for all timber products throughout this period.
In this blog, we will explore the significance of this stability, explaining the dynamics of the timber trade and its impact on the agricultural community. We'll also examine the insights provided by the IFA survey and discuss what this steadiness means for the future of the Irish timber industry.
Irish Timber Market's Stability from April to June 2024
From April to June 2024, the Irish timber market remained stable. Prices for various timber products maintained a steady course, similar to the EU and other global timber markets, which experienced no significant timber price fluctuations. The pricing data presented in the IFA Farm Forestry Timber Market report is a compilation of figures from forestry companies, forest owners, and sawmills, providing a comprehensive overview.
Jason Fleming, the chair of IFA farm forestry, outlined the findings of the IFA timber price survey spanning from April to June 2024, which indicated a consistent pricing trend across all timber products. 'Timber prices have been stable in the first half of 2024 with prices signalling a steady market demand,”' commented Fleming. He further noted that the Irish timber market's stability aligns with trends for the broader European Union and global markets. Fleming emphasised the importance of regional price variations, advising farmers to survey the market thoroughly to maximise their returns.
The IFA Farm Forestry Timber Market Report provides a detailed analysis of roadside prices for Sitka spruce timber, reflecting the current market valuation:
Pulpwood: €36-€40 per tonne
Stakewood: €42-€52 per tonne
Palletwood: €48-€66 per tonne, varying with length
Sawlogs: €88-€100 per tonne
Determinants of Timber Pricing
The variability in timber prices can be attributed to several key factors:
Volume of Sale: Larger sales volumes allow for fixed harvesting costs to be distributed over more units, thus allowing buyers to offer a higher price per tonne.
Proximity to Market: The closer a forest is to a sawmill, the lower the transportation costs will be. In this way, a forest owner can earn more money.
Site Accessibility: Better accessibility reduces logistical challenges and costs associated with a plantation's sale, which is critical to its selling price.
Market Dynamics: Prices can also be influenced by market demand. In times when inventory levels for certain timber products are low, buyers may be willing to pay a premium to maintain mill operations.
The global timber industry relies heavily on forestry contracting for operational execution, financial planning, and asset protection. On average, the costs for harvesting and forwarding per tonne are as follows: the first thinning is priced between €20 and €22, the second thinning ranges from €22 to €24, and the third thinning is set at €20. Clearfell operations cost between €14 and €16, while haulage is at €12.
Depending on the specific site conditions, these figures can vary.
For forest owners, timber sales and harvesting information are key to securing a lucrative timber deal. In this context, it is necessary to understand timber price trends, which is why the Timber Exchange Market Data Hub is so crucial.
The Market Data Hub is a comprehensive digital global timber market tracker. It provides extensive information that transcends basic timber market data. It has detailed news updates and educational webinars. Accessible via a unified dashboard, this platform enables users to monitor over 200+ market indicators. This feature facilitates the tracking of various forestry operations, including logging activities, production metrics, stock levels, and export/import figures, as well as consumption trends and pricing in over 25 significant markets worldwide.
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