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Brexit impact


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I doubt it will be good for firewood suppliers. Firewood is a luxury item. We are net importers of goods and the current uncertainty is likely to last at least until a deal is concluded, ie several years. The uncertainty will keep the pound weak (it has been since the referendum was announced) so imported prices will remain high. This, combined with lower confidence in consumers (reduced house prices make people feel less well off) is likely to reduce spending on luxuries.

 

It will be interesting to see whether I am right or wrong over the next two or three years.

 

Alec

 

Surely a weak pound means that home produced firewood will become cheaper relative to imported firewood....

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Surely a weak pound means that home produced firewood will become cheaper relative to imported firewood....

 

It does. However for most people firewood is a luxury. Very few people actually have to heat their house with it and those that do tend to make other arrangements for supply. People stop buying luxuries when money is tight, so relative price makes little difference to reduced demand.

 

Alec

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It does. However for most people firewood is a luxury. Very few people actually have to heat their house with it and those that do tend to make other arrangements for supply. People stop buying luxuries when money is tight, so relative price makes little difference to reduced demand.

 

Alec

 

Why do you think money will be tight?

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I think as long as the oil price goes up a bit firewood sales should hold up. Although we're lucky that most of our customers rely on wood for heating.

 

The only downside of recent events is that it will be more expensive to import machinery.

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Sure by leaving won't it make it harder and more expensive for companies to export their firewood to this country thus hopefully meaning some will start looking out for British wood instead, also I think now really is the time that the government and private land owners start really pushing on with tree planting because we may find it extremely hard to get wood in 20 or so years time and again we should be aiming to be more self sufficient

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