Operational Characteristics and Business Perspectives of Wood Pellet Producers and Feedstock Suppliers in the Southeastern US

https://www.doi.org/10.13073/FPJ-D-25-00001

Forest Products Journal May 2025

Authors
Paul M. DiGiacomo, Virginia Dept. of Forestry, Bowling Green
Joseph L. Conrad IV, Warnell School of Forestry and Natural Resources, University of Georgia
Kyle M. Woosnam, Warnell School of Forestry and Natural Resources, University of Georgia
M. Chad Bolding, Warnell School of Forestry and Natural Resources, University of Georgia
Holly L. Munro, NCASI

Abstract
Wood pellet mills purchase millions of tons of timber in the southeastern United States, yet little is known about their fiber sourcing practices or suppliers. The objectives of this study were to (1) characterize wood pellet feedstock suppliers (i.e., logging businesses); (2) assess the perceived impact of supplying wood pellet feedstock on sustainability, harvesting costs, and overall business performance; (3) document raw material sourcing practices of wood pellet mills; and (4) compare the outlook of wood pellet feedstock suppliers and wood pellet producers. We conducted a survey of wood pellet feedstock suppliers and wood pellet mill procurement personnel. The supplier survey was conducted via e-mail, with questionnaires mailed to nonrespondents. The wood pellet producer survey was conducted by e-mail. Adjusted response rates were 14 percent for suppliers and 83 percent for producers. Suppliers were generally satisfied with their decision to harvest and deliver timber to pellet mills. Business diversification and increased competitiveness were frequently cited benefits of delivering timber to pellet mills. Suppliers and pellet producers considered harvesting practices to be sustainable and consistent with conventional harvesting practices in terms of effects on soil quality, water quality, and ease of forestry best management practices implementation. Most procurement managers (70%) believed that the pellet industry would increase timber purchases in the region. Suppliers and pellet producers perceived that timber supplied to pellet mills was harvested sustainably and that this market strengthened suppliers’ businesses, although harvesting and delivering timber to pellet mills did present unique challenges.