Why are maritime pellet prices so high?

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kerr34

New Member
Mar 27, 2009
7
Eastern Canada
Clearly pellet prices seem to be falling in the states. Yet in Prince Edward Island we're still paying $5.99 for a 40 lb bag. Any ideas why? Thanks.
 
kerr34 said:
Clearly pellet prices seem to be falling in the states. Yet in Prince Edward Island we're still paying $5.99 for a 40 lb bag. Any ideas why? Thanks.
What brand are you burning ? I was able to get some here on sale for $ 4.50 a bag but yes they are normally $5.97 here.
 
Wow $4.50. I haven't seen anything close to that. Been burning Shaw pellets all winter. A lot of other brands make pellets that are too long and get jammed in my XXV. What brand did you get for $4.50?
 
Eastern Embers ( shaw) is what I got for 4.50 a bag, a local place ran out of pellets last year so this year they ordered way to many and have lots left so they dropped the price. I have tried a few different brands and I go back to the Shaw ones everytime. They burn hot but seem to leave a fair bit of ash.
The others I tried where junk and no heat but had little ash. My stove seems to burn what ever I dump in it for pellets, doesn't matter how long they are it just chews them up :)
I tried some of the ones made in Newfoundland and they where not to bad.
There is a place not far from me that is making pellets now also ...I am going to grab a few bags and see how they are.
 
Some of the dealers here in PEI must have alot of pellets left over. I know that I did not burn near as many pellets as I did last year. Maybe there are some deals to be had this spring.
 
we pay a lot in Maine also.
 
kerr34 said:
Clearly pellet prices seem to be falling in the states. Yet in Prince Edward Island we're still paying $5.99 for a 40 lb bag. Any ideas why? Thanks.

I think it boils down to 5 factors:
1. Greed
2. Transportation cost
3. Greed
4. Lack of competition in your area
5. Greed
BUT, that's just MY opinion
 
I just came from the Home Depot in town and was hoping to see some price reduction but seems 5.99 is as low as they are going. I don't want to get the very attractive girl who was helping me in trouble, but she seemed to suggest that they don't make much profit on pelllets and thats as low as they are going,and they had at least 10 pallets of 70 bags each last time I looked. Apparently planning to set them over all summer and peddle them in the fall. I tend to frown on less than fresh pellets being passed as new in the fall. I wonder if I should be concerned? Everyone else seems to be doing the same.
 
How does the cost of pellets compare to the relative cost of other fuels in your area? I sort of expect the cost per million btu's to be on the same par, in relative terms, to those same costs here in the US. If not, then, I have to fall in behind Hoss and agree with factors 1,3,and5.
 
hossthehermit said:
kerr34 said:
Any ideas why? Thanks.

I think it boils down to 5 factors:
1. Greed
2. Transportation cost
3. Greed
4. Lack of competition in your area
5. Greed
BUT, that's just MY opinion

So you are saying we are too greedy to want lots of pellets to burn? =:-o
Supply<=>Demand
Clearly both sides must agree to the value for the sale to occur.
By buying we drive the price up. :'(
My bags were > $7 after discount for 10 bags.
My fault!

Jay ;)
 
Boom said:
hossthehermit said:
kerr34 said:
Any ideas why? Thanks.

I think it boils down to 5 factors:
1. Greed
2. Transportation cost
3. Greed
4. Lack of competition in your area
5. Greed
BUT, that's just MY opinion

So you are saying we are too greedy to want lots of pellets to burn? =:-o
Supply<=>Demand
Clearly both sides must agree to the value for the sale to occur.
By buying we drive the price up. :'(
My bags were > $7 after discount for 10 bags.
My fault!

Jay ;)

WOW, like, egg on MY face, eh? NO, the greed that I referred to was the greed of SOME retailers, not all, that seem to feel that if they're the only game in town, people will pay what they ask. It's not greed to want to get your pellets in early, there are many reasons for that. Myself, if I don't have 'em in the cellar before snow, they don't get there. Some people don't have storage room, or for whatever reason, would rather buy pellets like milk and bread. DEALER GREED was what I referred to.
 
I just laid in 50 bags for next season, Shaw Eastern Embers, paid $5.44/bag ($6.15/bag f***ing HST inc.) at local Home Hardware. The other Home Hardware in the city wanted $6.49/bag ($7.33 tax in).
Around Fredericton, choices are getting better, with 2 new mfg's recently started up, one at the old Wilkins mill, another in Nackawic, but they seem to have settled on slightly over $5.00/bag as the norm. Good old Irving's Kent store is still flogging Comfy Cosy at around $5.00 - $6.00 something a bag. Those produce measurably less heat than Shaw's (using my infrared gun). Canadian Tire has some of those last year's Maines Finest (or whatever) pellets on sale for $4.99/bag. They were worse than Comfy Cosy! The only other pellets I've seen around here were at the Walmart, about 2 months ago, from Winnepeg IIRC, priced at around $5.00, but no bag information on the contents at all, so I didn't bite, and some in a smaller bag size at the Devon Lumber store, 33lbs or something like that, which I also haven't sampled. I beleive they were under $5.00, but then, not 40lbs either.
With the Canadian dollar nearly par, I'm hoping that someone will import a bunch of those Lignetics pellets from Idaho, which I got at Canadian tire the first year we had our stove ($4.99 + HST) (2008 -09 season). They burned the hottest of anything I've tried. I still have 8 bags saved for those really bitter January/Feb snaps next season.
When it's all said and done, the cost of manufacturing here must set the ceiling for prices, IMO. Or, the local market conditions might be the reason, as pellet stoves are in the minority compared to wood stoves, so it's harder to sell volume. But with delivered, take-your-chances-on-quality firewood fetching $275.00/cord, lots of people are waking up to the convenience of pellets. Kent still has bagged 1/2 cord pallets of firewood for $169.00, so with a $50.00 delivery charge, that's over $438.00/cord!!!!
 
don,all the things you have said....all things I agree with. For the life of me,with the n.b. power scuffle just past and a province filled with trees,it seems like a no-brainer but yet electric baseboard has not been targetted the way I would prefer and as I mentioned before I'm sure,I have written to the premier asking why they continue to tax pellets when we are part of the solution,but he first response was"it is too difficult at the cash register" ,I wonder if he has wisened up any.....I am encourage by the mention of pellets occasionally as part of the solution but I suspect it won't be during this government's mandate.I haven't heard anything on the progress of Irving's super pellet manufacturing facility...was I just dreaming that? pete
 
"Too difficult at the cash register"?? Superstore doesn't have any problem with their software sorting taxable/non-taxable items. What a crock. We shouldn't be paying tax on firewood, pellets, natural gas, propane, or home heating oil either. Electricity is more difficult, with the problem of isolating KW used for heating and KW used for everything else. Since bureaucrats must have a one-size-fits-all solution, I'd expect no change until all fuel sources can be (not) taxed equally.
I'd like to hear from the U.S., or other Canadian, forum members in states and provinces that offer some form of tax relief on fuels. With the N.B. election in less than 5 months, now is the time to make some noise.....sorry for the off-topic rant.
 
Don,if you want to write the premier,and see what he's saying now about it,its real easy to do. I bet he's anxious to make anyone happy these days. It would be interesting. He doesn't want to hear from me for awhile likely since I helped sink his ship on the Quebec deal. That was one leaky boat!
 
I'm also on the hunt for a ton or three, but nobody wants to make a deal.

The local Can Tire carries Lignetics and Maine Wood Pellets. The owner showed me on his computer that his cost is $5.24 per bag deliverd to his door, hence the $5.99 price.

Translation: Shaw group, which makes Eastern Embers in Nova Scotia, is raking it in. The savings on the transport costs alone (Lignetics, LGs. etc. are all shipped in) would seem to so suggest.

For those of you who are not aware, there are other pellet producers in the Maritimes but most ship their entire production to Europe.

If anyone is interested in forming a co-op in or around Halifax to buy 3 or 4 tons each at a time, let me know.
 
I'm in Moncton and went on a hunt yesterday as I finished up my 4 tons and needed a few bags to tide me over.

Most places were still in the $5.99 range but few had them in stock.

Finally, I found some at my last choice: Kent. They have, according to their computer, 1700 bags left of Comfy Cozy in stock. I picked up 10 @ $5.49 a bag.

Surprisingly, The quality is far better than I remember (based on one burn last night). Much better length than the Eastern Embers I was burning all winter and about as much heat. I doubt I'd trust them still to get me through a season, but they're fine to get over the hump the next couple of weeks.

As far as prices go, I don't see them moving down much in this area. It appears choice is still limited for local products. We'll need to see what effect the newer mills have. Regardless, even with lack of competition, prices are way too high.
 
In Sussex, NB superior heating has a sale this month for $5.49. I believe they are Shaw Pellets.
Should I jump on it or should I wait for lower prices?
 
I can hardly get wood chips for animal bedding anymore because the Amish buy them all to make pellets. Demand must be growing.
 
ShaneR34 said:
In my opinion, you're not going to see a lower price than that is this area for a long time...if at all.

Thats what I am thinking as well but I want to get others opinion. :)
 
Prices may not go down but I also don't see them going up a whole lot....so if most hold out like I plan on doing we may get lucky and see a slight decrease come July or August..... but even if they don't move much in price I don't want last years pellets if I can help it....and if I do get unlucky later in the year and get stuck with old stock they may as well have them under there feet till I want to store them at a later date myself.... I also can't see a short fall of pellets in the near future either so perhaps this may help in a reduction in price soon, especially with new plants opening up all the time???..... all a crap shoot.....
 
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