Introduction

At Klimate Smart, we’re committed to keeping our clients informed about the latest trends in sustainable forestry. In this blog, we’ll explore the latest timber prices for Sitka spruce in the Irish market, the volumes of timber that can be extracted from one hectare of forestry, and how to calculate the return on investment (ROI) from such a forest.

Timber Prices Overview

A recent timber price survey conducted by the Irish Farmers' Association (IFA) from April to June 2024 shows stable prices for Sitka spruce timber. According to the report, these prices reflect a steady market demand and align with broader trends across the EU and global markets.

Here are the current roadside prices for Sitka spruce timber:

These prices are sourced from forest owners, forestry companies, and sawmills.

Timber Volume and Yield from Sitka Spruce Forests

Thinning is a critical management operation to ensure the quality and health of Sitka spruce forests. According to Teagasc, a standard Yield Class 20 Sitka spruce forest undergoes several thinnings before the final clearfell. The thinning schedule and timber volumes are as follows:

Timber Production Sizes

The timber produced during each thinning operation consists of different proportions of pulpwood, palletwood, and sawlog. The breakdown for a Yield Class 20 Sitka spruce forest is:

Calculating Return on Investment (ROI)

To calculate the ROI from one hectare of Sitka spruce forest, we can use the timber volumes and the current market prices. Here’s a breakdown of the potential revenue from the timber sales at clearfell:

Conclusion

Investing in Sitka spruce forestry can offer substantial returns, especially with a structured thinning and clearfell schedule. The stable market prices and detailed yield projections provide a solid foundation for forest owners to optimize their timber production and maximize their ROI. As competition in timber supply increases, maintaining high-quality timber will be crucial for the success of Irish timber in the market.

For more detailed information and advice on forestry management, visit the Teagasc website or consult the IFA Farm Forestry Timber Market report.

Sources

• Irish Farmers' Association (IFA) Farm Forestry Timber Market report
• Teagasc website on timber production and thinning practices