A report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network estimates that Canadian wood pellet production was down 6 percent in 2023, with exports down 14 percent.&nbsp;The expected decline in Canada’s wood pellet production is attributed to the closure of pellet mills, reduction in allowable cut and a high-activity wildfire season. The decline in exports is expected to result from reduced production coupled with diminished demand from South Korea and the U.K. for Canadian wood pellets. Imports, however, are expected to be up on a slight growth in domestic demand.&nbsp;According to the report, Canada had 45 wood pellet plants as of 2023 with a combined 4.72 million metric tons of capacity, down from 47 plants with a combined 5.05 million metric tons of capacity in 2022 and 46 plants with 4.86 million metric tons of capacity in 2021. Capacity use for 2023 was estimated at 73.1 percent, up from 72.2 percent the previous year and 72.1 percent in 2021.As of 2023, 44.3 percent of Canada’s wood pellet production capacity was located in British Columbia, with 21 percent in Quebec, 16 percent in Alberta, 8.8 percent in New Brunswick, 6.1 percent in Ontario and the remaining 3.7 percent located in other areas of the country.&nbsp;Canadian producers manufactured an estimated 3.45 million metric tons of wood pellets last year, down from 3.65 million metric tons in 2022 and 3.5 million metric tons in 2021. Exports were at 3 million metric tons, down from 3.49 million metric tons the previous year and 3.15 million metric tons in 2021. British Columbia accounted for 73 percent of Canada’s wood pellets in 2022, followed by Quebec at 16 percent, New Brunswick at 9 percent and the rest of Canada at 3 percent.&nbsp;In 2022, approximately 48 percent of Canadian wood pellet exports were destined for Japan. The U.K. accounted for approximately 38 percent of exports, followed by South Korea at 15 percent, the U.S. at 7 percent, Denmark at 4 percent, the Netherlands at 3 percent and all other countries at 6 percent. &nbsp;Canadian wood pellet imports for 2023 are estimated at 45,000 metric tons, up from 31,000 metric ton in 2022 and 29,000 metric tons in 2021. Canada consumed approximately 617,000 metric tons of wood pellets last year, up from 600,000 metric tons in 2022 and 500,000 metric tons in 2021.British Columbia and Ontario each accounted for 42 percent of Canadian wood pellet imports in 2023. Manitoba, Saskatchewan and other areas of Canada accounted for 7 percent, 6 percent and 3 percent of imports, respectively. Canadian wood pellet imports typically consist of bagged pellets used in the residential heating market, according to the report. Virtutally all of the country's imported wood pellets are sourced from the U.S.A full copy of the report is available on the USDA FAS GAIN <a href="https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Wood%20Pellets%20Annual_Ottawa_Canada_CA2023-0055">website</a>.

2024-01-17 - Report: Canadian wood pellet production, exports down in 2023 (Biomass Magazine)

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A report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network estimates that Canadian wood pellet production was down 6 percent in 2023, with exports down 14 percent. 

Report: Canadian wood pellet production, exports down in 2023

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