Latvian retailers Depo and KSenukai have imposed daily limits of two pallets of wood pellets per customer due to surging demand, according to Latvian Radio. Industry officials describe the shortage as temporary, citing shifts in consumer behavior and market adjustments.
Didzis Palejs, chairman of the Latvian Biomass Association LATbio, said residents are purchasing pellets in bulk for the entire heating season rather than spreading purchases over time. This strategy has created short-term retail shortages, though most buyers have already secured supplies or placed orders with manufacturers, according to the association.
Delivery wait times range from one week to a month, but demand is expected to ease within the next 30 days. Prices have risen to over 300 euros per ton, up from 220 euros a year ago, driven in part by increased Polish demand.
Despite the pressure, Palejs emphasized Latvia’s production capacity—nearly 2 million tons annually—outpaces domestic needs, even in a cold winter. Producers are redirecting output to the local market by reducing exports, he said.
The recent cyberattack on Latvijas Valsts meži has not significantly disrupted household pellet production, as the product relies on sawmill byproducts rather than state-supplied wood, according to industry assessments.
Climate and Energy Minister Jānis Vitenbergs has pledged measures to ensure fuel availability ahead of the heating season, though no specific actions were detailed in the report.
The industry anticipates demand will decline in the coming weeks, with producers committed to fulfilling domestic needs.
Frequently Asked Questions
Why are wood pellet sales limited in Latvia? Retailers Depo and KSenukai restrict purchases to two pallets per customer daily due to heightened demand, according to Latvian Radio.
What is Latvia’s wood pellet production capacity? The country can produce nearly 2 million tons annually, far exceeding domestic consumption of approximately 350,000 tons even in a cold winter.
How is the market expected to stabilize? Industry leaders anticipate demand will decrease within a month, with producers prioritizing domestic supply over exports to meet local needs.
How might sustained price increases affect consumer behavior in Latvia?
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