Wood Pellet demand has been growing and is forecasted to continue to grow over the next several years.
What is a Wood Pellet?
Wood pellets are made of sawdust, wood shavings, and wood chips, which are compacted into small pellets. Wood pellets are used to generate heat and electricity, and are used by commercial, residential, and industrial markets.
Industrial users rely on wood pellets all year long. The United Kingdom is the largest importer of United State's wood pellets, and the volume has increased nearly 15% from last year. This trend is expected to continue into the next several years. The southeast United States accounts for over half of North America’s wood pellet production.
What does this mean for the landowner/ tree farmer?
As the demand for wood pellets continues to rise, the prices for materials will remain stable and possibly climb over the next several years; meaning first cut thinnings of pine plantations and small timber will yield good returns.
To find an investment timber property, please contact us here at SLA to begin your search!
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