It has always been the case in any sector of business that the price of raw materials to manufactures and end product prices to consumers is dictated to by supply and demand.

As France embarks on the new season of timber auctions it is predicted that the price of the raw material, in this case oak logs, will rise. Sawmills are concerned that in order to cover this increase they of course will have to pass on costs to the customer. Now here in lies their problem. The current prediction of price rises will put the cost of logs at near pre financial crash levels. So for eight years consumers have enjoyed oak at a reduced price. It is feared that this increase will have a detrimental effect on sales.

Oak cannot be planted and harvested within a ten year window it needs up wards of 200 years to reach maturity and although oak is by no means, indeed the planting of saplings is an ongoing project, the stock of fully mature trees is a little reduced. Hence the supply and demand factor.

However, a quality product will always cost more and consumers will always be willing to pay a premium for such a product.

Madeleine

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