Starting a firewood business

[Michael C]

Hi, new here and relatively new to all things forestry. Just after some advice. The construction industry (and most other things) is a gonner here in Ireland. With an eye on my own 10 year old forestry, and thinnings coming off it in the next few years, I was thinking of buying a firewood processor and having a go at selling firewood. Problem is in Ireland we dont have the same amount of* hardwood timber available as seems to be available in the UK. Most guys in the firewood business here are buying softwood by the truckload in cord form and processing it. Most of the logs sold in petrol stations etc are softwood.I suppose the main advantages for me are, I am also farming and I have a good sized yard, shed, tractors and a jcb 3cx available, so a processor would be the main investment.Is there a profit to be made? What % mark up would there need to be per cu metre to make it a worthwhile business? All help welcome. Thanks in advance.

[detritus21]

You can make a profit first off but particularly in England cord wood is in short supply. If you are buying in then you'll have to work out what price you can get to make a profit. Remember you'll haev to take running costs into it all. To work out what to sell at you need to know your local market really its pointless trying to sell at 80 pounds a cube if someone down the road is doing it at 40 and it works the other way round.

[Quickthorn]

To work out what to sell at you need to know your local market really

 

This is the key. Some people on this forum can't produce it fast enough, yet there are other parts of the country where they still expect it to be almost free.

 

If you've got a market, it sounds like you're in an ideal position. If you're starting from scratch with nothing, paying finance on all your gear, then renting a yard and paying business rates on that, I'd say it's tough to make a living at it. With a free yard, and power available already, you're in a good position.

 

It varies around the country, but standing hardwood near here has recently been up for £5-10/ton, at ride side it could be £25-30/ton, most people seem to be selling logs for equivalent of £100-150/ton.

Edited November 21, 2008 by Quickthorn

[Log-ologist]

Look to the North.

 

In Scandanavian countries firewood is sold well packaged and dry in large 1 metre bales. Its also a high proportion of softwood.

 

You need to market the positive side of softwoods. They have almost the same calorific value as hardwoods but it is given out more quickly. Is there an opportunity to mix it with peat blocks to regulate the speed of burning?

 

Are there local diversification grants available for rural job creation that you could apply for?

[Michael C]

Thanks for replies guys. As regards a diversification grant- not that I am aware of. Peat is also worth thinking about, although that is getting scarce also!

 

Initial quotes for artic load of softwood is €36 per m3. There may be cheaper options, thats the first quote. Too dear??

I know a local guy is selling loose loads for approx €60 m3. However, he stores the cords outside and they go straight from the processor into the trailer for delivery. Reduces handling, but logs cant be too dry!

 

Approx what m3 of logs will a m3 of cordwood produce? Or will it be the same?

 

 

I have priced some processors, been told posch is the best, but thet are very expensive. Hakki Pilke seem very good value. M Large will deliver a 1x37 "easy" model with joystick controls for £7950. 1x42 is £10650 delivered.

Any thoughts on what to go for???

[garth mc garth]

paying out for a processor in a business your unsure of may not be the best thing, if you dont mind spending the time could you not go for an old saw bench and seperate hydraulic splitter and cut down on your initial outlay?

then if timber prices drop or supply or demand dies out your not out of pocket

[David oakman]

Good points i started off with a hy=crack wormer which i still use on large rings. I have now got a second hand jappa speeds things up a lot but i dont like to borrow money so build up slowly:001_smile:

[hesslemount]

Hi, new here and relatively new to all things forestry. Just after some advice. The construction industry (and most other things) is a gonner here in Ireland. With an eye on my own 10 year old forestry, and thinnings coming off it in the next few years, I was thinking of buying a firewood processor and having a go at selling firewood. Problem is in Ireland we dont have the same amount of* hardwood timber available as seems to be available in the UK. Most guys in the firewood business here are buying softwood by the truckload in cord form and processing it. Most of the logs sold in petrol stations etc are softwood.I suppose the main advantages for me are, I am also farming and I have a good sized yard, shed, tractors and a jcb 3cx available, so a processor would be the main investment.Is there a profit to be made? What % mark up would there need to be per cu metre to make it a worthwhile business? All help welcome. Thanks in advance.

 

If you can find a copy of Euroarb Oct / Nov 2007 there's an article from page 7-12 "The Future is Fuel Wood" which has some great article of firewood and running a firewood business

[Andy Collins]

standing timber for firewood, ash syccie birch and so on being bought now, ooks like the days of getting paid to fell are over around here. I heard today a couple of chaps coppiced a long hedgerow, for the timber, getting just about 2 transit loads a day out of it, barely pays for the fuel. Sign of the tight times ahead.

[Arran Woodfuels]

There is really nothing wrong with selling softwood logs.

 

For those guys who have hardwood in abundance, then there is no argument, hardwood is preferrable, however where we are, softwood is all there is (in any commercial quantities) and locals are glad to get it to.

 

In our first four months since entering the firewood business, we have sold over 120 m3 and that is on an island with a population of only 4,000 (perhaps not on a scale with some guys here, but we are quite happy).

 

My advice to succeed, you need to price your products according to what the market expects (not too high, and definately not too low). You must present your business as a professional outfit with a good website, attractive local press advertising and tidy, presentable vehicles/drivers. This may sound a bit basic, but it does work and you will leap ahead of the "casual" competitors.

 

However, this is the most important aspect, your logs must be good quality and burn well. They need to be extremely well seasoned and kept dry. If your logs don't burn well, you won't sell a second load, and you'll get a poor reputation.