The latest data on log prices, issued by Wood Price Quarterly (WPQ), reveals steady prices for private sales over the past year.

WPQ provides prices for all log size categories by quarter with averages provided for the year (Table 1). It also provides information on the number of sample sales recorded and volume of timber (m3) sold for three quarters (Table 2).

Compiled by Asst. Prof. Amanda Sosa, UCD, the WPQ is a confidential log price collaboration between the university’s School of Agriculture and Food Science, Forestry Section and the Irish Timber Growers Association (ITGA).

The main difficulty in comparing private log prices achieved in 2023/24 to previous years is the absence of WPQ data for 2021 and 2022. The best available comparison for private sales is 2021 when prices were higher for small logs – or pulpwood – and medium logs, while similar or slightly higher prices are being achieved for large logs for the first quarter this year.

Medium-sized logs

On the other hand, data provided by Coillte for 2021 and 2022, shows that medium-sized logs – sold by auction – achieved exceptionally high prices of up to €80/m3 due to an extremely high demand for pallets during and after the Covid-19 pandemic. These prices are unlikely to be achieved in the foreseeable future. However, it does highlight the importance of Coillte data which is derived from a high number of sales across the country.

The WPQ data shows that approximately €19/m3 is achieved for small logs; €30-€40/m3 for medium logs and €52-€59/m3 for large logs. Based on these prices, forest owners should thin their plantations as small and medium-sized log prices are steady if not overly impressive.

From discussions with foresters and sawmill representatives, prices in excess of €60/m3 are currently being achieved for large logs, especially where quality is good and harvesting and haulage access is readily available.

Based on overall prices, thinning is recommended, as it benefits the final crop. Well thinned crops also provide options when the crop reaches maturity if the owner doesn’t wish to clearfell because the price of large sawlog is too low.

If the crop has been continuously thinned properly, the owner can delay clearfell, but can carry out a further thinning instead on windfirm sites.

This could provide cash flow until the market improves for large sawlog as WPQ prices are still 15 to 20% below potential market prices based on past data.

The WPQ provides vital market information for private forest owners but it suffers from being out of date by the time it is issued. From discussions with sawmill and forestry company representatives, large sawlog prices have increased to €60-€65/m3 from May to June, but these prices won’t be confirmed until at least August.

Few envy Prof. Sosa’s task in compiling the data from foresters, forestry companies and sawmills, so a time lag is understandable. Given the secrecy that surrounds timber pricing in Ireland, it’s a significant achievement to issue prices at all, so more support from the sector is required.

Readers who have sold or purchased timber should submit prices in the standard roundwood sales data form which can be obtained from UCD (email roundwooddatabase@ucd.ie).

Comment: the log price survey’s scope needs to be broadened

It is vital that the WPQ report is broadened to achieve comprehensive prices for log sales throughout

Ireland – both Coillte and private.

This could be achieved by Coillte submitting prices to Prof. Sosa and there is every indication that the company might be amenable to this collaborative approach.

Coillte’s argument that market sensitivities prevent it from disclosing prices, especially auction prices, is reasonable but could be addressed by amalgamating Coillte prices –contract and auction – with private prices.

Coillte disposes 50% of its sales by auction and these achieve higher prices than contract sales, especially when sawmills are experiencing log supply shortfalls.

Nationwide price

The combination of all Coillte and private data would result in far more realistic nationwide price information – without compromising Coillte.

At present, WPQ data is compiled from a relatively small number of total timber sales, but it is a good representative sample of private log sales. Quarterly sales vary from 60,542m3 to 162,299m3 (Table 1) when around 300,000m3 of logs are actually sold and if forecasts are accurate this should be closer to 500,000m3. After pulpwood is retained for its board mills, total Coillte quarterly sales – auction and contract – amount to approximately 350,000m3.

A public-private approach would fill the price gaps for all log size categories with major benefits for both seller and buyer as it would provide prices for at least 500,000m3 of logs every three months.