Forestry - Fuelwood market strategy

DEVELOPMENT OF A MARKET STRATEGY FOR DOMESTIC FUELWOOD IN IRELAND

Philip Blackstock & Pierre Binggeli (2000)

ALTENER Contract no 4.1030/Z/98-573

 The full report can be downloaded as a Word (.RTF) file.

A survey of woodfuel producers, suppliers and endusers was carried out in Northern Ireland, the Irish Republic and in Switzerland. The purpose of this survey was to estimate size of the woodfuel market in 
these countries, to identify their main strengths and weaknesses and to generate recommendations for the development or improvement of the woodfuel market in Ireland.

The size of the domestic woodfuel market in Switzerland was relatively easily identified at about 2 million m³ per annum. This market was dominated by wood from a well-established, sustainable forestry sector that had been well researched. In Northern Ireland and the Irish Republic the woodfuel market was dominated by farm woodland and hedgerow exploitation, or with waste from the arboricultural industry. Because this market was not linked to the established forestry sector and was not, normally, scrutinised by the tax authorities, woodfuel sales were not accurately catalogued or understood. Sales of at least 22,000m³ per annum of woodfuel were identified in Northern Ireland and at least 58,500m³ per annum were 
identified in the Irish Republic. The true size of the domestic fuelwood market in Ireland is, however, likely to be much larger than these figures suggest and the market is also likely to respond quickly and dramatically to external influences.

Domestic fuelwood consumption in Ireland was, traditionally, associated with the urban poor, who burned it with coal in inefficient open grates. In these circumstances the addition of wood increased the efficiency of the coal fire, regardless of the seasoning of the wood. In Switzerland, wood was traditionally burnt on its own, either in open fires or in stoves, and, in these circumstances, seasoned wood was essential. The market for wood-burning stoves in Ireland was being actively encouraged and, because this market sector required seasoned wood, the existing woodfuel market was not considered to be functioning well.

The replies from respondents indicated that many of the issues raised in Switzerland were pertinent to Ireland. A log fire creates a pleasing atmosphere and produces plenty of heat, regardless of the Country in which it burns. Woodfuel is also bulky, dirty and awkward to store and handle everywhere. Competition from oil and gas was seen as the most significant threat to the woodfuel market in the three countries surveyed.

The most significant difference between the woodfuel markets in Switzerland and in Ireland concerned the perceived quality of the product. In Switzerland, a traditional quality standard was in place and was known and understood by producers and purchasers of woodfuel. In Ireland, however, no such quality standard was in place and this led to criticisms from all sectors of the woodfuel market.

Other, more subtle, differences in the woodfuel markets of the three countries surveyed included the influence of cost, (which was seen to be more important in Northern Ireland, the poorest country of the three) and the impact on the environment of burning wood, (which was seen to be more important in Switzerland).

The report concluded that: 
· A ‘Black Market’ structure was not, necessarily, a problem to the woodfuel market in Ireland as it introduced a high degree of flexibility and allowed the producers to respond quickly to external influences.
· The Irish woodfuel market must switch substantially to selling seasoned and sorted fuelwood if it is to exploit the opportunities associated with the expanding wood burning stove market.
· A standard for woodfuel, governing the size of logs, species composition, volume measurement and dryness, should be established. This standard must meet the requirements of the wood burning stove manufacturers and local Government officials responsible for monitoring pollution and house fire hazards.
· A research programme should be designed to establish a methodology by which woodfuel producers can achieve this standard.
· The woodfuel standard should be widely publicised to ensure that consumers are made aware of its existence. Trading standards Officers should then monitor retail outlets to ensure that the woodfuel 
they sell meets the standard
· There was a substantial opportunity for the agricultural sector to diversify into seasoned woodfuel production, particularly as there are now a surplus of well-constructed and well-ventilated sheds available.
· There is a need to control the exploitation of farm woods to ensure that the EC ‘Habitats Directive’ (Council Directive No. 92/43/EEC of 21st May 1992) is enforced. Changes in the legislation in Northern Ireland will be required for this control to be effective.
· Suppliers of wood burning stoves and woodfuel should be encouraged to supply woodfuel storage and handling equipment.
· Large-scale woodfuel producers should be encouraged to diversify into the production of energy (heat or CHP) using surpluses and un-exploited residues.
· The woodfuel market should be encouraged to co-operate to promote woodfuel as a desirable and environmentally friendly product.

Beech (Fagus sylvatica) is the main firewood in Switzerland. Felled trees which can not be sold for veneer (above) are cut into 1 m lengths and split if necessary and then stalked along forest tracks. The wood is then auctioned to the public. Alternatively the logs are brought to a firewood merchant's yard (below) where they are split, cut and dried (Photographs P. Blackstock).

Woodchip store and loader. The store may hold up to 2000m³ of woodchip.  When sufficiently dry the chips are delivered to fuel large central heating systems, and schools in particular.