Demand for woodchips and pulp from processors operating at full capacity is driving demand for small roundwood, according to the latest UPM Tilhill Timber bulletin.
The bulletin, published as an aid to growers and forest managers, says a shift in demand from sawlogs to small roundwood has been particularly from pulp and board manufacturers in the north and also for exports and the rapid growth in demand for energy wood.
“Looking ahead, the UK market displays a very different complexion from last year and is influenced by many factors outside the control of the UK timber industry,” said UPM Tilhill managing director Steve Lavery.
“Global economic conditions, evidence of a slowdown in the US economy and of the strong euro dampening European economic growth, rising input costs largely driven by high oil costs – all will invevitably reflect in the price that is paid to the grower.”
Despite this, Mr Lavery said the processing sector was “strong”, with investments in new capacity in the sawmilling and board industries, plus rapidly growing demand for energy wood.
“Underpinning all of this is the real and evident increase in forest production. So despite the likely impacts of the current economic conditions, we have good reason to remain positive and look forward to another exciting and demanding year.”
