Contractors and hauliers have been forced to seek other business since the closure in May of the St Regis Sudbrook Mill near Chepstow, which effectively removed a market for up to 150,000 tonnes of small diameter and low quality hardwood worth £6m a year.

An England Forest Industries Partnership task group currently assessing the impact of the closure on potentially 300-400 jobs in the raw material supply chain has found that most contractors are still working in the industry.

“It is heartening to hear that most contractors have been able to diversify, but there are major challenges for the industry”, said Judith Gauler, who heads the task group.

“We need to maintain momentum in the firewood market and explore other opportunities.”

She will be preparing a report for the end of July.