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Pellet Manufacturers


The profit margin from pellet production is not high (around 15% on an average) and the majority of pellet manufacturers undertake pellet production as an “add-on” to an existing forest products business. Pellet manufacturers undertake pellet production mainly to reduce their costs because they can get a better price for pellets than for sawdust. Most pellet manufacturers perceive that it is expensive to ship pellets. Some U.S. manufacturers indicated that they obtained business interests from Sweden, China, and Czechoslovakia. A few larger manufacturers indicated that in the past they have exported mainly to Canada and some to Japan. But now U.S. export to Canada is minimal, mainly because of a Canadian regulation which does not allow the disposal of sawdust and other wood waste in landfills and other dumps, which encourages many forest products industries in Canada to establish their own pelletizing plants.

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