Small sawmillers collaborate to purchase home-grown timber from the Welsh Government Woodland Estate
Collective action secured quality sawlogs for local businesses to process into a range of high-value timber products enabling small sawmillers to add value to the timber supply chain in Wales
Author: Woodknowledge Wales
This case study was authored as part of the Home-grown Homes project and was funded by Welsh Government
Summary
In December 2023, a group of small sawmillers in north and mid Wales came together and worked with a haulage contractor to successfully purchase over 200 tonnes of Douglas fir sawlogs from the Welsh Government Woodland Estate (WGWE) in Coed y Brenin. This is the first time these sawmillers have been able to access high-quality timber in the electronic auctions (eSales) from Natural Resources Wales (NRW).
The NRW eSales are very difficult for small businesses to work with for several reasons including extensive pre-bidding paperwork, large lot sizes and the lots are mainly sold as standing trees which require harvesting rather than sold as logs at roadside.
This purchase which was a small roadside lot, was made possible through collaboration and cooperation whilst working with a haulage contractor who had completed the pre-bidding paperwork and was able to act on the sawmillers’ behalf. This collective action secured quality sawlogs for local businesses to process into a range of high-value timber products thereby demonstrating that small sawmillers play a part in adding value to the timber supply chain in Wales.
Key Players
Small Sawmillers’ Community of Practice
Communities of Practice (CoP) promote an open and collaborative approach which enable the participation of a diverse network of organisations, both across supply chains as well as within trades. Woodknowledge Wales CoPs gather professionals of the same trade or supply chain level around a shared challenge or opportunity. CoPs are centred around practical solutions and capacity building and give members the opportunity to prototype innovative approaches together with others.
“As a one-man band sawmiller, I found it was becoming gradually more difficult
to source good quality logs and I was at a loss to understand why. When Woodknowledge Wales got in touch with the idea to act as intermediary by grouping the requirement of a number of small-scale millers together, they lifted a lot of the uncertainty of supply. It’s good to have some confidence in the future again.” Richard Reeve, Reeve Timber, Llanon, Ceredigion
The forest owners
NRW manages the WGWE on behalf of the Welsh Government. At 123,000 hectares, the WGWE covers six percent of the land area of Wales and thirty-eight percent of the Welsh forest resource. NRW is the Welsh Government sponsored body responsible for the sustainable management of our natural resources in Wales, including forestry.
NRW is the largest supplier of certified timber in Wales and the sale of timber from the WGWE allows NRW to generate an economic return for reinvestment to support its future work.
“This approach has provided multiple mills with access to high quality FSC®/PEFC certified timber from the WGWE that has generated income for NRW, while supporting rural Welsh businesses in producing sustainable timber products.” Tom Nicholson, Sales & Marketing Officer North, Natural Resources Wales (NRW
The Woodlands for Wales Strategy (2018) highlights the critical role of Welsh timber in supporting the rural economy and envisions a resurgence of sustainable economic activity in Welsh woodlands whilst providing valuable employment opportunities for local communities.
“As processors of predominantly locally sourced timber, the recent purchase of Douglas fir co-ordinated by Woodknowledge Wales has allowed us to source material which can often prove difficult as a smaller buyer. We appreciate the flexibility shown by NRW and we hope to secure further supplies of material like this for our ongoing needs.”
Martin Craker, Signs Workshop, Dolgellau, Gwynedd
The sawmillers
Small-scale sawmilling and wood processing businesses typically employ up to 10 people. They are deeply rooted in rural communities, employing local people, utilising local trees and supplying local markets. They primarily supply sawn timber for building, fencing, landscaping and bespoke practices such as furniture making. They have direct links to the forestry industry, and they support other rural businesses such as fuel and machinery suppliers and other service providers. Their work promotes the use of Welsh timber, fostering a greater understanding within communities of how timber grown in Wales can replace carbon-intensive materials such as steel, concrete, and plastics and other non-renewable materials.
The haulier
Les Hughes & Son Ltd is a Welsh timber haulage company based in Abermule, Powys. The company specialises in timber contracting, timber haulage, and log supply. Currently the business operates a fleet of 12 HGVs, moving timber from the forests of Wales to businesses across the United Kingdom. The company is recognised for its contributions to the timber industry in Wales, providing essential services in timber transportation and HGV vehicle maintenance.
“We are here, and we can help the small-sawmilling sector out if enough timber is brought to market to facilitate what these small businesses want.”
Tony Hughes, Director, Les Hughes & Son
A 2021 Woodknowledge Wales survey identified forty-seven small sawmills in Wales. They provide an estimated annual income of £15 million, directly employ approximately 180 people and consume roughly 30,000 tonnes of timber per year. That’s two lorry loads of timber every month for a reasonably busy mill. However, the timber supply chain for small sawmillers and processors in Wales is fragmented and unpredictable, relying on private timber sales including irregular sources such as windblow on farm woodland. Five sawmillers took part in this collective purchase.
“Small-scale sawmills have recently had difficulty sourcing the high-quality sawlogs that are grown here in Wales. The cooperative element of this exercise is an encouraging experience for all those involved. I hope that we can build on this to create a strong sense of community and cooperation from the foresters through to the craftsmen who will create durable legacies from this timber.” John Sweeny, Small Sawmills Co-ordinator, Woodknowledge Wales
Background
In early 2021, several small sawmills contacted Woodknowledge Wales about the challenge of accessing a regular supply of good quality sawlogs from the WGWE.
As the largest supplier of sawlogs in Wales, NRW, who manage the WGWE on behalf of Welsh Government, use one primary sales mechanism,eSales – an online auction system where pre-harvested (roadside) or standing timber is sold by weight through a bidding system. Large lot sizes are used because they are more efficient to administer.
- Standing sales – timber is sold while still standing in the forest and the buyer is responsible for harvesting, extracting and transporting the timber.
- Roadside sales – timber is harvested by NRW and stored at roadside, ready for collection.
This sales mechanism, however, provides a barrier for small sawmillers who are unable to bid individually. Through John Sweeny, (Small Sawmillers’ Coordinator) Woodknowledge Wales began exploring the possibility of collaborating to purchase roadside lots and approached NRW to discuss potential solutions.
Narrative
Coed y Brenin near Dolgellau, Gwynedd
In 2022, Woodknowledge Wales informed the small sawmilling sector of a forthcoming eSales lot of Douglas fir sawlogs. Storm damage had resulted in the felling of the impressive stand of Douglas fir planted by the Forestry Commission in the 1920s. The sawlogs went up for roadside sale via NRW’s eSales system. Small-scale sawmillers do not have the financial or administrative capacity to purchase timber from the WGWE using NRW’s sales mechanisms. This is partly because the lot sizes are mainly too large for smaller enterprises to consider. For NRW, there is the same amount of administration to work through for a small lot as there is for a large lot, therefore Woodknowledge Wales developed the idea of a collective purchase with the small sawmills ahead of the auction. Tony Hughes, of Les Hughes & Sons, one of the larger haulage contractors and log suppliers agreed to bid on their behalf.
There was a high level of interest from the small sawmills, as sawlogs of this standard do not come on the market very often. John worked with Tony to coordinate the project and Tony secured the successful bid using the eSales system. In December 2023, the first of the sawlogs started arriving at small sawmills across north and mid Wales.
The sawlogs arrived in lengths of 12 to 14 metres enabling the sawmills to cut them into the lengths they need to meet orders. The quality of the sawlogs supports the milling of higher grades of timber for joinery stock – timber for use in doors, windows, furniture, and flooring. The longer lengths can also facilitate larger dimension beams for structural use. The sawmills purchased this timber to meet future orders. Woodknowledge Wales encourages the production of higher quality joinery and structural timber for use in buildings. This can lock up the embodied carbon in the timber for the lifetime of the building and beyond if the timber is reused/repurposed.
This project fostered a sense of community amongst participating businesses who make up the Woodknowledge Wales Small Sawmillers’ Community of Practice (CoP). John coordinates site visits and on-line discussions to bring the businesses together to develop relationships and provide networking opportunities. Future collaboration between the CoP and others in the Woodknowledge Wales networks, could benefit and help stabilise the supply chain.
Impact
This case study demonstrates the challenges that small businesses face in purchasing timber from the WGWE. The project enabled small sawmillers to come together as a community and collaborate for their benefit whilst supporting the supply chain and local markets. Collaboration in the sector creates stronger and more resilient businesses and communities, whilst improving practice and knowledge. This project illustrates the collective impact small businesses in rural areas can have in the move to a sustainable future.
Woodknowledge Wales believes that the small sawmilling sector plays an essential role in the transition of Wales to a high-value forest nation through the development of a strong wood culture. These sawmillers can supply local markets and support local employment with locally sourced timber.
Ways forward
- Provide support for small-scale sawmillers who wish to purchase roadside lots from eSales to enable achievement of pre-bidding requirements.
- Increase roadside sales of appropriate sized lots for the small sawmilling sector.
- Explore the opportunity to sell smaller lots by volume rather than by weight.
- Encourage innovative approaches such as collaboration between log suppliers and the small-sawmilling sector.
- Consider developing a role within NRW that supports the future increase in small roadside sales aimed at small-scale sawmillers and communities.
Conclusion
This case study demonstrates how collaborative action can result in innovative solutions, whilst highlighting the need for an increased understanding of the small sawmilling sector. Woodknowledge Wales perceive these sawmillers to be agents of cultural change, who are in a good position to promote the use of Welsh timber in their communities, potentially acting as an important conduit for the development of a forestry and wood using culture in Wales. Their relationship with commercial forestry could be key to changing the negative perceptions around large-scale forestry plantations for timber production. This community of small sawmillers can also facilitate dissemination of information on the Timber Industrial Strategy at a local level.
A more accessible and consistent supply of locally sourced low carbon building materials can help Wales transition to a sustainable future. More work is needed to enable this sector to access a more stable supply of timber from the WGWE.
References
[1] https://esales.naturalresources.wales/
[2] The Woodlands for Wales Strategy (2018)
Further references
How the Signs Workshop processes sawlogs into its products (video)
