How much does it cost to produce firewood?

What does it cost to produce firewood?

The cost of producing firewood per cubic metre depends on the price of timber, annual production volume, labour costs, fuel or energy use, maintenance, depreciation and the organisation of the complete production process.

There is therefore no single cost per m³ that applies to every firewood producer. A realistic calculation should be based on the actual costs and production conditions of the business.

What are the main production costs?

Timber costs: the purchase price of roundwood or other raw material is often one of the largest cost components.
Labour costs: loading, sawing, splitting, handling, storage and transport all require working time.
Fuel or energy: the carrier vehicle, firewood processor and other equipment used in the production process consume fuel or energy.
Maintenance and wear: saw chains, guide bars, hydraulic components and other wear parts must be checked and replaced when necessary.
Depreciation: the purchase cost of the machine and carrier vehicle should be spread over their expected working life and annual production volume.
Transport: moving timber, machinery and finished firewood can represent a significant part of the total cost.
Storage and drying: space, handling and infrastructure for drying and storing firewood should also be included.
Administration and sales: depending on the business, packaging, customer delivery, administration and marketing may also contribute to the cost per m³.

Why does production capacity matter?

Many costs are calculated per working hour. The amount of firewood produced during that hour therefore has a direct influence on the production cost per m³.

A higher practical production capacity can reduce labour, fuel and machine costs per cubic metre, provided that the complete work process is organised efficiently.

How can production costs be reduced?

Choose a firewood processor that matches the annual production volume.
Match the carrier vehicle and hydraulic capacity to the machine.
Organise log feeding and firewood discharge efficiently.
Reduce unnecessary handling and waiting time.
Use the appropriate cutting length and splitting knife configuration.
Keep the machine well maintained to reduce avoidable downtime.
Include transport and storage in the overall production plan.

Calculate the cost using your own figures

The most useful way to determine the cost per m³ is to calculate it using your own timber price, annual production volume, labour costs, fuel or energy costs and other operating expenses.

The same figures can also be used to estimate the potential payback period of a firewood processor.

Use the BTD ROI calculator to make an indicative calculation based on your own operating data.

Conclusion

The cost of producing firewood per m³ depends on the complete production process. Timber costs, labour, fuel or energy, maintenance, depreciation, transport and storage all influence the final cost.

Efficient work organisation and sufficient production capacity can help reduce the cost per cubic metre, but the actual result should always be calculated using the specific figures of the business.