RePallet Co.Denver · Circular by design
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Sustainability

How pallet wood becomes mulch, and what it really costs

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Three per cent of the wood that comes into this yard ends up as mulch. That number is low on purpose, and keeping it low is most of what we do.

Grinding is the bottom of the waste hierarchy for wood, and it should be treated as an end point rather than a business model. A pallet worth nine dollars repaired is worth about fifty-five cents ground, and there is no processing cleverness that changes that ratio.

What actually gets ground

  • Pallet lumber that failed the repair line and yielded no boards over 30" — split stringers, short ends, heavily nail-perforated stock.
  • De-nailing waste: board ends, splinters and the trimmings from the remanufacture saws.
  • Clean off-cuts from our own crating shop.
  • Never: MB-stamped wood, CCA-treated timber, creosoted wood, painted wood, plywood, OSB, particleboard, or anything from a load with a contamination history.
The plywood exclusion surprises people. Engineered board contains adhesives that do not belong in a garden bed or an animal stall. It is excluded even though it is technically wood and even though including it would be easy.

The line

  1. 1

    Pre-grind magnet

    Loose fasteners, banding and strapping seals pulled from the feedstock. This is where most contamination is caught.

  2. 2

    Hammer mill

    The grinder itself. Screen size at this stage sets the coarse fraction.

  3. 3

    Post-grind magnet

    Overhead magnet across the chip stream. This pass is what decides whether the fibre can be sold at all.

  4. 4

    Primary screen

    Separates the 3/4" minus landscape fraction from oversize, which is re-fed.

  5. 5

    Secondary screen

    Pulls 1/2" minus for playground fibre and 1/4" minus for bedding.

  6. 6

    Dust extraction

    Bedding grade only. Dust is a respiratory issue for stabled animals.

  7. 7

    Colour, if ordered

    Iron-oxide and carbon pigments applied in a tumbler. Not solvent-based.

The grades that come off it

Products, screens and where they go.
ProductScreenShare of fibreSells for
Landscape mulch, natural3/4" minus46%$19 – $22 / yd³
Landscape mulch, coloured3/4" minus + pigment27%$24 – $28 / yd³
Playground fibre1/2" minus, fines out14%$31 – $36 / yd³
Animal bedding1/4" minus, dust extracted9%$27 – $33 / yd³
Path finesScreened fines4%$11 – $14 / yd³

The honest economics

We published the full repair-line numbers previously and this is the other half of that table. Grinding a core we paid $1.10 for costs about $0.32 to process and sells for roughly $0.55 as fibre. That is a loss of $0.87 per unit before overhead.

It is not a loss on every fraction — playground fibre and bedding carry a real margin, and colouring adds value for genuinely small cost. But on a blended basis, across the whole fibre line, it is close to break-even at best and negative when the feedstock cost is honestly accounted for.

The fibre line does not make money. It exists so that there is an honest end point for wood with nothing left, and so that we never have to write a cheque to a landfill.

Why we still do it ourselves

We could send residual wood to a third-party grinder. We do not, for three reasons: we would lose control of the feedstock exclusions that make our playground grade viable; we would lose the metal recovery; and we would lose the ability to say, with a straight face, that nothing leaves this yard as waste.

That last one matters more than it sounds. The moment you hand residual material to a third party, your zero-landfill claim becomes their zero-landfill claim, and you are vouching for a process you do not run.

If you are buying

  • One cubic yard covers about 100 sq ft at 3 inches deep. Add 15% for settling and waste.
  • 3 inches in shade, 4 in full sun on the Front Range. Charts written for the midwest under-specify for our evaporation rates.
  • Keep it 3 inches clear of stems and trunks. Mulch piled against bark causes rot.
  • Natural grade for edible beds. The pigments are inert, but there is no reason to add them to a vegetable patch.
  • Order in March. Supply is unconstrained in late winter and the price is better than it will be in June.
#mulch#recycling#economics

Inés Vargas

Sustainability & Reporting

Built the Pallet Passport system and publishes the yard's carbon methodology, including the parts she is least confident about.

Let's keep your pallets in the loop

Whether you have 40 broken cores behind the dock or need 4,000 Grade A pallets a month, the conversation starts the same way.