There are a number of key challenges facing the UK homegrown timber sector. Rationalisation and centralisation in timber processing and conversion for recycling, mean that many UK timber growers have no bulk markets within economic distance. The Forestry & Timber Association (FTA) welcomes much of the investment in processing, but is concerned at the switch by customers to recycled fibre. Especially regrettable, following other serious closures, is Shotton Paper’s move to recycled – it once took 500,000 tonnes of small roundwood a year. Iggesund Paperboard’s rising use of sawmill chips means less roundwood consumption, but this is partly offset by increased output.

There are few niche markets for UK softwood, apart from fencing, while high-value hardwood logs may be hauled the length of the country. Although there are a few niche markets for hardwood thinnings and second grade logs, these can be difficult to sell – buyers may prefer to source a 500-tonne parcel abroad.

After years of low prices, many conifer crops are now managed without thinning, resulting in loss of quality and crop value (markets for small roundwood are the most elusive). Mature, thinned crops also have to be clearfelled before windblow.

This summer moving pine logs became critical due to rapid blue-stain development. Northern Irish growers benefited from greater demand in the Republic, but prices fell there too. The dry summer and autumn helped harvesting operations, but some mills closed for longer than usual. Also, uncertified timber is now more difficult to sell, in some cases attracting a £2/tonne penalty.

Forest Enterprise‘s (FE) long-term contracts with mills, supplying 50% or more of their intake, can reduce accessibility for the private sector. Sometimes FE hauls considerable distances, while nearby growers are unable to sell. There is also the debate about the effect of FE on timber prices, intensified by market difficulties. Jaakko Pöyry‘s recent report on the industry’s competitiveness, commissioned by the Forestry Commission, concluded:

      

  • The strong pound has had a significant impact.

  • The supply of roundwood throughout Europe is growing faster than demand.

  • There is a need to reduce costs and rationalise the UK forest products industry.

But FTA chairman Robert Scott took issue with some of the report’s findings, pointing out that it did not consider a range of factors, including:

  • Differentials such as timber transport costs, which may be 60% higher in Scotland than in Scandinavia.

  • What impact, if any, FE has on British timber prices.

  • Why timber prices vary so much throughout Europe and are consistently higher in Ireland than Britain.

The recent UNECE annual timber reports acknowledged concerns of some industry sectors over raw material competition, but provided reassurance on the subject of wood fuel. “The Committee felt wood energy should continue to be promoted by governments, noting an excess of growth over removals in the region’s forests, to improve forest viability, provide rural employment, promote renewable resources and mitigate climate change,” it was stated.

Small scale wood fuel opportunities are now widely materialising but obstacles remain. The government won’t acknowledge the existing forest resource as renewable energy, it defines sawmill co-products as “waste” and there is a need for “green” heat targets.

However, shavings (and chips) for agricultural use are becoming increasingly significant. Bedmax, which started in Northumberland three years ago producing shavings for equestrian use, recently began production in Nottinghamshire. It exports as far as Hong Kong and has made a valuable impact on the viability of harvesting for miles around.

The popularity of timber decking, real wood flooring and garden products is no accident. Campaigns such as wood. for good, which FTA supports, were able to build on a rising trend. Growth in timber frame is tremendous news, realised through innovative research and progressive manufacturing. The new Centre for Timber Engineering in Edinburgh, is perhaps the best output of the dynamic Scottish Forest Industries Cluster and Wales now also has its version of the latter.

The trick now is to supply as much as possible of the increased demand from home-grown sources. As well as high growth rates, we have proximity to markets, the value of which was demonstrated when the Baltic Sea froze last winter. Unfortunately, while home supply increased, there was little, if any, price increase. However, import prices appear to be rising.

Higher prices elsewhere are being exploited, for example, by exporting round timber to Ireland where demand outstrips Irish growers’ supply. It is galling then that 50% of Ireland’s pallets are exported back to Britain.

As well as supporting the development of wood fuel, wood. for good and industry clusters, FTA backs projects to facilitate certification for small woodland owners and provision of timber supply information. It also supports timber transport groups, training programmes like the Welsh Joint Development Initiative and efforts to cut imports of illegally sourced timber, including public procurement policy.

The growing sector is still fighting.