Conditioned by Transportation: Warning that Certified Firewood and Pellets Will See Price Increases

The international rise in crude oil prices has also led to an increase in fuel costs.

This is compounded by the government's announcement regarding modifications to the Fuel Price Stabilization Mechanism, better known as Mepco, making a price increase for the most commonly used heating supplies more likely.

The chain effect would stem from the transportation used, among other things, for moving firewood and pellets, leading to an increase in their prices.

Local Production

Alfonso Roa, who is registered as a certified firewood supplier in the Energy Sustainability Agency's registry and whose facilities are located on the road to Florida, reported that he has aromo and eucalyptus firewood with sufficient availability for the current season. "I have plenty of dry firewood, with prices depending on size: smaller chips at $200 (each) and slightly larger ones at $300."

When asked if he anticipates a higher price for firewood due to increased costs linked to rising fuel prices, he said, "The price of firewood should increase, but it's not very clear to me yet."

At JTC Maderas, a family business formed by Jaime Toledo, general manager, and his wife, Ruth Morales, in charge of commercial management, which offers certified firewood and pellets, this scenario is also being analyzed. "For us, demand has already increased by about 30% in recent weeks," Morales anticipated.

Additionally, Ruth Morales detailed that they have certified firewood, in accordance with current regulations, which includes requirements regarding invoicing and authorizations backed by Conaf in the case of hualle. "It's hualle that we process with machinery, which then goes through a dryer—we believe we are the only ones in the Region to have it—allowing us to offer our products with the Firewood Quality Seal, which guarantees our supply. Our firewood has 8% moisture, meaning it's very dry," she said.

Thus, JTC Maderas offers a varied supply of certified firewood, ranging from native Hualle nets (approximately 22 kg to 25 kg) between $7,500 and $7,800; the same format in eucalyptus, at $6,500 and $6,950 for a sack of 20 to 22 kg. They also have firestarter sticks at $2,400 for a net package of approximately 2.5 kg of pine dried in a chamber to around 12% moisture.

Regarding the possibility of a price increase for the most commonly used heating supplies, the company's commercial manager projected that "it is highly likely that prices will rise, as higher fuel prices increase transportation costs for freight from warehouses, which are also specially suited locations for obtaining the Firewood Quality Seal."

As for pellet sales, JTC Maderas indicated that "our sales mainly occur in the months of November, January, and February, when many of our customers stock up for winter. Currently, the price is $4,200 for a 15 kg bag, which decreases based on quantity, and home delivery is available for purchases of 10 bags or more."

Meanwhile, in Santa Juana, Manuel Cuevas offers eucalyptus chips at $230 and Hualle at $330, both per unit, with the option of home delivery to Concepción for purchases exceeding 50 sacks and one thousand chips, respectively. "I believe the price of firewood will have to increase a bit, at least by 10%, and I think demand will grow significantly."

Maribel Dinamarca, continuing the family business started by her father at Comercial Dinamarca SpA, shared that they have been in the heating firewood sales business for approximately 20 years. "We have a stock of quality firewood available for biomass consumers (firewood, chips), including Eucalyptus and native mix, in sack and m3 formats, with dry firewood under 25% moisture, in accordance with regulations. Our rule is that the raw material must come from forests managed and approved by Conaf."

Regarding the rise in fuel prices and its effect on the local firewood market, Maribel Dinamarca noted that "firewood will always be the cheapest energy source for heating homes during cold months, but it's essential to use dry, certified quality firewood to avoid harming the environment."

In more detail about their current prices, Comercial Dinamarca SpA indicated they have native firewood, "mostly hualle or oak, as well as exotic eucalyptus, where prices per sack of firewood range from $6,500 to $8,000. Additionally, we have firestarter firewood at $2,500 per net and pellets at $4,500 for a 15 kg bag."

Pellets

Regarding pellets, at Innapel, Concepción branch, they offer up to 80 bags at a time, but if a larger quantity is required, it can be purchased at the Talcahuano branch. Here, the unit price per 15 kg bag is $3,990 for the general public and $3,890 for seniors.

Meanwhile, at Green Pellet, also in Concepción, they have 15 kg bags at $3,900 for in-store pickup (Avenida Gran Bretaña 4447, Parque Empresarial Bio Bio, Talcahuano), $4,200 with delivery for over 12 bags; $3,900 with delivery for 36 bags or more, and $3,750 with delivery for 80 bags or more.

It should be noted that the Firewood Quality Seal is an acknowledgment granted by the Ministry of Energy through the Energy Sustainability Agency, aimed at highlighting Biomass Processing Centers (CPB), i.e., establishments where firewood is produced and sold, whose processes enable them to generate a quality product.

Source:Diario Concepción