Wondering what to do with old pallets? Many companies see the pallets piling up in a corner as waste they need to get rid of. Most of the time they are not. A pallet only becomes waste at the moment its owner decides to take it out of use, and until then it has value.
This article goes through all five options for old pallets: selling, repair, recycling, burning and the waste station. We explain what the law says, whether you are allowed to burn pallets, what each option costs or earns and how to tell which of your own pallets are suitable for what.
In short: intact and repairable pallets are worth selling, because they earn you money and the pallet supplier collects them. Even broken pallets are bought if there are enough of them. Only unusable wood ends up in recycling or energy recovery.
In a household, untreated pallet wood may be burned in a fireplace or stove, but burning waste is generally prohibited. For a company, burning is not a solution, and for an intact pallet it is the worst of all the options, because it destroys the pallet’s value completely.
Is an old pallet waste?
Under Finland’s Waste Act, waste is any substance or object that its holder has discarded, intends to discard or is required to discard. The definition matters a great deal. When a company’s surplus pallets are sold on for further use, they never become waste, the company incurs no waste management costs and it carries no responsibility as a waste holder.
The law also sets out the order in which waste and materials taken out of use should be dealt with. This is called the waste hierarchy, and it suits pallets exceptionally well, because a pallet can be put to use at almost every step.
| Waste hierarchy | What it means for a pallet |
|---|---|
| 1. Waste prevention | An intact pallet is sold or reused, so no waste is created at all |
| 2. Preparing for reuse | A broken pallet is repaired and goes back into use |
| 3. Recycling | An unusable pallet is dismantled and the wood is used as material |
| 4. Other recovery | The wood is used for energy |
| 5. Disposal | The last option, when nothing else is possible |
Source: Finland’s Waste Act 646/2011 (in Finnish), sections 5 and 8.
In practice, the hierarchy tells you the same thing as your company’s cash flow: the higher up the steps a pallet stays, the more you get for it, or the less you have to pay for it.
What to do with old pallets: five options
| Option | Suitable for | Financial impact | Effort |
|---|---|---|---|
| Selling to a pallet supplier | Intact EUR and FIN pallets, forklift pallets, pallet collars | Earns money | Low, the buyer collects |
| Selling for repair | Broken pallets whose structure can be repaired | Usually earns something | Low, if the quantity is large enough |
| Recycling | Broken-down, rotten or unrepairable pallets | Usually costs money | Moderate |
| Burning | Only untreated wood in a household fireplace or stove | Small heating value, the pallet’s value is lost | Dismantling and nails |
| Waste station | Painted, chemically contaminated and other treated pallets | Costs money, especially for companies | You transport them yourself |
The most important row in the table is the first. Many companies pay to dispose of pallets that someone would pay them for if they were sold. The difference is not small: in one case the pallets are a cost, in the other they are income.
Can you burn pallets?
This is the most frequently asked question on the subject, and the answer depends on who is burning them and where. The main rule is clear: burning waste is prohibited. However, Finnish waste advice services classify pallets as untreated wood, which has its own rules.
In a household fireplace or stove
You may burn dry, untreated wood in the fireplace or stove of a property, and a pallet that has not been painted, impregnated or glued belongs to this group. In practice, the pallet has to be broken up into smaller pieces and its nails end up in the ash, so remove them from the ash before you use it for anything.
As an open fire in the yard
Open burning is strictly limited. In areas covered by a local detailed plan (in practice, built-up areas), burning waste outdoors is usually prohibited, and even outside these areas usually only small amounts of dry garden and wood waste are allowed. The rules that decide the matter are in the municipality’s waste management regulations, and they vary from area to area. Fire safety also restricts burning, especially when a forest fire warning is in force.
At a company
A company’s surplus pallets are either goods for sale or waste, and for waste the company must arrange proper waste management. Burning pallets in the company yard is not waste management. And if pallets build up regularly, burning them would not make financial sense either, because the same pallets could be sold.
What must never be burned
- Painted or varnished pallets, for example blue CHEP pallets, which are not even yours
- Pallets with glued board parts, such as plywood or chipboard
- Pallets contaminated with oil, chemicals or other substances
- Pallets whose origin or treatment you are not sure about
There is one more thing worth remembering about burning. The heating value of an intact pallet is small compared with what the pallet is worth in use. When a pallet is burned, its value is lost completely.
Pallets as waste: the waste station and the company’s responsibility
If a pallet really is unusable, it becomes waste. At that point, sorting is what matters. At waste stations, untreated wood, including pallets, is sorted as a separate fraction, and painted, impregnated or otherwise treated wood is sorted separately. Detailed sorting instructions are available from your local waste management company, for example in the Helsinki region in HSY’s wood waste guide (HSY is Helsinki Region Environmental Services; the page is in Finnish).
For a company, the waste station is rarely the best solution, for three reasons:
- Companies are charged for the waste they bring in, and larger loads are weighed and priced by weight
- For companies, the municipal waste service is only a secondary option. When waste management costs exceed a threshold set by law, the company must first look for a service on the open market through the Materiaalitori service
- Transport is the company’s own responsibility, and pallets take up a lot of load space in relation to their weight
Waste management services for businesses can be found on Materiaalitori.fi, an online marketplace maintained by Motiva, a state-owned Finnish sustainability company. When the same batch of pallets is sold to a pallet supplier, the money flows the other way and the buyer takes care of the transport. That is why the waste station is best kept for pallets that have no other use.
Recycling: what happens to an unusable pallet
A pallet that can no longer be repaired is still not worthless material. An unusable pallet is dismantled, and the intact boards and blocks can be used to repair other pallets. The remaining wood is chipped and used as material or for energy. The nails are separated and recycled as metal.
Recycling practices, the collection of wooden packaging and how a company should organise pallet recycling are covered in more detail in the article pallet recycling.
Selling: why an old pallet is often worth money
Pallets are standard goods, and demand for them never runs out. That is why there is always a market for used pallets: the pallet supplier buys them, sorts them, repairs them if needed and sells them on to companies that need pallets. Three things affect a pallet’s value:
- Pallet type: genuine EUR and FIN pallets are the most valuable, because they are in the highest demand
- Condition: an intact pallet is worth more than one that needs repair, but repairable pallets are bought too
- Quantity: a large batch is worth collecting, a few individual pallets rarely are
Broken pallets are also worth offering before you take them anywhere else. A broken deck board or a loose block is a repairable fault, and a repairable pallet is raw material for a pallet supplier. There is more on this in the article can you sell broken pallets.
The same applies to pallet collars. Intact collars with working hinges are in demand, and they fold flat, so even a large quantity fits into the same collection. Suomen Lavacenter buys pallets and pallet collars from companies and collects them with its own trucks.
Dispose or sell: who does the work and who pays
The difference between disposing of pallets and selling them is not only whether money flows from the company or to it. It is also about who does the work. When pallets are disposed of, the company does everything itself. When they are sold, most of the work passes to the buyer.
| Stage | When pallets are disposed of | When pallets are sold |
|---|---|---|
| Sorting | The company sorts them into fractions | The buyer sorts them, the company can help by pre-sorting |
| Loading | The company’s own work | The collector loads them with its own equipment |
| Transport | The company transports them or orders transport | The buyer collects the pallets |
| Payment | The company pays a waste fee | The buyer pays for the pallets |
| Responsibility | The company is the waste holder | The pallets never become waste |
| Storage space | Freed only when the company finds time to take the pallets away | Freed when the pallets are collected |
Of these, storage space is the easiest to forget. Pallets piling up in a corner take up space that could be used for goods, and pallets moved outdoors deteriorate. The longer pallets wait, the less you get for them. Freeing up space is covered in the article how to sell surplus pallets and free up warehouse space.
Identify your pallets: which ones go where
Before you decide where your pallets go, go through them. This table helps you sort a batch in a few minutes.
| Pallet | Right destination | Things to note |
|---|---|---|
| Intact EUR or FIN pallet | Sale | The most valuable group, the stamps must be visible |
| Broken EUR or FIN pallet | Sale for repair | Broken boards and blocks are repairable faults |
| Intact one-way or forklift pallet | Sale, if the quantity is large enough | Ask the buyer whether they accept the pallet type |
| Pallet collar | Sale | The condition of the hinges is decisive |
| Blue CHEP pallet | Return to CHEP | Not the company’s property, must not be sold or disposed of |
| Rotten or completely broken pallet | Recycling or energy | Untreated wood |
| Painted or contaminated pallet | Waste station, treated wood | Not for burning |
Blue CHEP pallets deserve a separate mention. They are rental pallets that always remain CHEP’s property, no matter where they are. They cannot be sold, exchanged or disposed of; instead, they are returned to CHEP’s collection. How pallet pools work is explained in the article should you buy or rent pallets. You can identify the markings of a genuine EUR pallet with the help of the article how to identify a genuine EUR pallet.
How to prepare old pallets for collection
A well-prepared batch is worth more to the buyer and quicker to collect. These steps take little time and show directly in what you get for your pallets.
- Sort intact, broken and unusable pallets into separate stacks. A mixed batch is valued according to its weakest pallet.
- Separate the pallet types: EUR, FIN, one-way and forklift pallets and pallet collars into stacks of their own.
- Remove plastic film, strapping and other packaging waste from the pallets.
- Stack the pallets in straight stacks in a dry place. Moisture quickly weakens a pallet’s condition, and a wet pallet is worth less.
- Estimate the quantity and take a photo of the stacks. From the photo, the buyer can assess the batch even before collection.
- Request a collection. State the quantity, pallet types, condition and collection address, and whether there is a forklift on site.
Stacking and storage practices are covered in more detail in the article pallet storage and safe stacking.
The most common mistakes with old pallets
| Mistake | What happens | A better way |
|---|---|---|
| Intact pallets are taken to the waste station | You pay for disposal although someone would pay you for the pallets | Ask for a purchase offer first |
| Pallets are burned in the yard | Burning waste is generally prohibited | Sell them or hand them over to proper waste management |
| Pallets are left outdoors to wait | Moisture and mould destroy the pallets’ value | Store them dry and stack them straight |
| CHEP pallets get mixed up with the others | Someone else’s property is sold or disposed of | Separate them and return them to CHEP |
| Pallets are sold a few at a time | Collection is not worthwhile and the offer stays low | Build up a larger batch or agree on regular collection |
| Painted pallets are burned | The paint releases harmful compounds | Take them to the waste station as treated wood |
If you are a private individual
In a household, usually only a few old pallets build up, for example after a renovation or a house move. In that case the options are slightly different from a company’s:
- An unpainted pallet can be dismantled and burned in the fireplace or stove of your home
- Intact pallets can be given away or sold on, as there is often someone nearby who will take them
- You can build something new from a pallet, for example a shelf or a planter
- Unusable pallets can be taken to the waste station as untreated wood
Collection by a pallet supplier usually only makes sense for larger batches. Reusing pallets at home is covered in the article pallet furniture.
Do pallets keep piling up?
If your company receives goods on pallets every week, pallets pile up constantly and one-off solutions become expensive. In that case, the best solution is regular collection: the pallet supplier picks up the accumulated pallets at agreed intervals or when a set quantity is reached. Storage space is freed up, the pallets do not have time to deteriorate outdoors, and they bring the company income instead of costs.
The steps of selling, how the price is formed and when a one-off batch or regular collection makes sense are covered in the article how to sell your company’s surplus pallets.
Do you have surplus pallets? Suomen Lavacenter buys used EUR, FIN, one-way and half pallets as well as pallet collars from companies, including broken ones. We collect the pallets with our own trucks within our service area, and we can also agree on regular collection. Tell us the quantity, the pallet types and the collection location, and we will make you an offer.
Sell your pallets to us or call +358 29 170 3899. See also our contact details.
Summary: what to do with old pallets
When you are deciding what to do with old pallets, remember this first: an old pallet only becomes waste when it is taken out of use. Intact and repairable pallets are worth selling to a pallet supplier, who collects them and pays for them. Even broken pallets have value if there are enough of them. Only unusable wood belongs in recycling or energy recovery, and painted or contaminated pallets go to the waste station as treated wood.
In a household, untreated pallet wood may be burned in a fireplace or stove, but burning waste is generally prohibited, and it is no solution for a company. Blue CHEP pallets are not sold or disposed of; they are returned. The higher up the waste hierarchy a pallet stays, the better it pays.
- How to sell your company’s surplus pallets
- How to sell surplus pallet collars
- EUR pallet returns and pallet deposits
- Can you sell broken pallets?
- Pallet recycling
- Pallet lifespan
- Pallet grades A, B and C
- Pallet storage and safe stacking
Frequently asked questions
Where can I take old pallets?
Intact and repairable pallets are worth selling to a pallet supplier, who collects them. Unusable pallets belong in recycling or energy recovery, and painted or contaminated pallets go to the waste station as treated wood.
Is an old pallet waste?
Not necessarily. Under Finland’s Waste Act, waste is an object that its holder discards or intends to discard. When a pallet is sold on for further use, it does not become waste at all.
Can you burn pallets?
In a household fireplace or stove you may burn dry, untreated wood, and a pallet that has not been painted or impregnated belongs to this group. Otherwise, burning waste is generally prohibited, and the rules for open fires are set by the municipality’s waste management regulations.
Can pallets be used as firewood?
An unpainted and unimpregnated pallet can be burned in a household fireplace or stove once it has been dismantled, and the nails are removed from the ash. For an intact pallet, however, burning is a poor choice, because the pallet’s value in use is many times its heating value.
Can a company burn pallets?
Pallets that a company has taken out of use are waste, and proper waste management must be arranged for them; burning them in the yard is not waste management. Usually the most sensible solution is to sell the pallets to a pallet supplier.
How much does it cost to take pallets to a waste station?
Prices vary by region and by the size of the load. Companies are charged a fee, and larger loads are priced by weight. Intact pallets are worth selling before you pay a disposal fee for them.
Do pallet suppliers buy broken pallets?
Yes, if they are repairable and there are enough of them. A broken board or a loose block is a repairable fault, and a repairable pallet is raw material for a pallet supplier.
What should I do with blue CHEP pallets?
Blue CHEP pallets are rental pallets that always remain CHEP’s property. They must not be sold, exchanged or disposed of; instead, they are returned to CHEP’s collection.
Is it worth requesting a collection for just a few pallets?
Usually not. A collection makes sense once a larger batch has built up. If pallets build up constantly, regular collection is the best solution.
How do I prepare pallets for sale?
Separate intact, broken and unusable pallets, sort them by pallet type, remove plastic and strapping, stack the pallets in a dry place and take a photo of the batch for the buyer.
Can pallet collars be sold?
Yes. Intact pallet collars with working hinges are in demand. They fold flat, so even a large quantity fits into the same collection.
What happens to a pallet that goes for recycling?
The pallet is dismantled, the intact parts are used to repair other pallets and the rest of the wood is chipped for use as material or energy. The nails are separated for metal recycling.
Where can a private individual take old pallets?
An unpainted pallet can be dismantled and burned in a fireplace or stove, intact pallets can be given away or sold on, and unusable pallets can be taken to the waste station as untreated wood.
Does Suomen Lavacenter buy old pallets?
Yes. Suomen Lavacenter buys used EUR, FIN, one-way and half pallets as well as pallet collars from companies, including broken ones, and collects them with its own trucks within its service area.
