At present, the wood pellet mill industry in our country is faced with problems mainly from four aspects, namely the capital, scale effect, talent and technology.

1. The capital. Wood pellet mill has a high manufacturing cost, and occupies more operating funds for scale production. So manufacturers must have a certain amount of funds to guarantee the normal operation. The new entrants generally has a higher financial problem.

2. The scale effect. Spare parts cost is an important composition of the wood pellet mill production cost which mainly includes raw material procurement cost and raw material processing cost. Large-scale manufacturers in the cooperation with the upstream suppliers usually have stronger bargaining power and can drastically cut down the costs for raw material procurement and raw material processing, thereby improving products' cost advantage. In addition, the manufacturers of large-scale production are able to guarantee a constant research and development as well as technological innovation, to keep products' technical advantage.

3. The talent. Only after a long period of training, can the company own a group of skilled production staff and qualified professionals. The talent of higher research-and-development ability and workmanship together with skilled maintenance personnel is the key to effectively controlling product quality and executing after-sales service.

4. The technology. Wood pellet mill is a multidisciplinary cross industry integrating machinery design and manufacture, wood chip technology research, electronic control system manufacture, and software development as a whole. Its technical problems gradually stick out, especially in recent years, the characteristic of technology intensive has become more and more significant by constantly absorbing the latest achievements in science and technology.