Vermont WP rumors?

More exports=higher prices and less product available. More plants coming online down south but primary sales to overseas.

Whe

Harman Lover 007 said:

I was at my stove dealer the other day buying some parts and while I was being waited on I was amazed at the volume of folks buying pellets in the middle of a weekday. The owner of the business could barely get off the forklift. A guy came in to buy Vermont pellets and they told him they couldn't get any more until next year. The stock they have and are committed to receiving from VWP is already pre-sold for the entire year. Amazing.....is VWP having production problems or is this just reality?

Click to expand...

When I was at dealer last month picking up 2 tons of VWP. Dealer informed me that VWP tried to change over machinery at mill, and it set them back a few months. Also they had plans of opening another mill for increased production but that didn't come to fruition .
Even the dealer stated their Tonnage has been cut back from last years level. I hope that can get back to normal ASAP !
Great pellet , Great Company !

I'm glad I preordered my 6 tons from VWP this spring. They are in my basement now. Bring on winter.

I was recently at rockys stove shop getting a service call setup and the volume they are going through.

Harman Lover 007 said:

I was at my stove dealer the other day buying some parts and while I was being waited on I was amazed at the volume of folks buying pellets in the middle of a weekday. The owner of the business could barely get off the forklift. A guy came in to buy Vermont pellets and they told him they couldn't get any more until next year. The stock they have and are committed to receiving from VWP is already pre-sold for the entire year. Amazing.....is VWP having production problems or is this just reality?

Click to expand...

This is the email I received in reply to a request for a quote from VWP.

"Currently I am not aware of any dealer in your area that has pellets available.
Our dealers are receiving shipments, however the pellets are probably already spoken for.
Due to strong demand and state permitted production restrictions we are sold out for 2014.
Check with your local dealer in January.
We do encourage customers to prebuy in the summer for 2015."

Does anybody else see the glaring statement in that reply?

"State permitted production restrictions"???

I suggested they move their production to NH...

Now why would the state restrict production of a heating fuel just before winter? That's dumb as I get older less and less makes sense

Big papa said:

Now why would the state restrict production of a heating fuel just before winter? That's dumb as I get older less and less makes sense

Click to expand...

Maybe they cut trees on State owned land, and such have limited acres and trees to work with.

Maybe but why would they limit that as their only source of material basically they are out of business till January

I believe their source is whole logs but it is Vermont, the state controls everything.

harryfatcat said:

I believe their source is whole logs but it is Vermont, the state controls everything.

Click to expand...

Big papa said:

Maybe but why would they limit that as their only source of material basically they are out of business till January

Click to expand...

Mills are paying BIG $$ for logs right now. There is a significant shortfall in firewood in many areas right now. So if you can get $$$ at the mill, but $ at the pellet mill, guess where you are headed. Also, some wett areas are tough to log till things freeze up in the summer.

I snowmobile, and see a LOT of logging in the winter when its much easier to get through the wet places.

Big papa said:

Now why would the state restrict production of a heating fuel just before winter? That's dumb as I get older less and less makes sense

Click to expand...

Each state's DEP places emission limits on the dryers used to dry the wood. Many times the emissions license includes limits on hours of operation and even the amount and types of wood you can use. I don't know if that's what they are referring to or not. It's very likely.

Yup State permits play a part. I would guess emissions. I think folks are somewhat deluded in thinking that pellet producers have huge warehouses of product that will they can draw from at will. That is not so, tons of pellets sitting in a warehouse costs them money so they try to set up just in time deliveries to middlemen that are willing to bet that if they warehouse stock now they may get more money later and that offsets the carrying costs. If there is warm start to the winter, the middleman at some point may have to sell at a loss if its cold one they make money. By now I expect the second the pellet producer produces a truck load its on the road.

I don't know how this subject got so far off ??? VMP shut down for a period of time to switch over machinery to increase production as well as the possibility of bringing another mill on line not to far away from existing plant . the change over was a bust and the other mill never came online .
VWP is behind in production , they consistently produce a set number of tons each year .

They will eventually catch up in production , until then PATIENCE

02809bristol said:

I don't know how this subject got so far off ??? VMP shut down for a period of time to switch over machinery to increase production as well as the possibility of bringing another mill on line not to far away from existing plant . the change over was a bust and the other mill never came online .
VWP is behind in production , they consistently produce a set number of tons each year .

They will eventually catch up in production , until then PATIENCE

Click to expand...

What, no conspiracy theory or anything? Say it ain't so.