Tag Archives: forestry plantations

FRA comments on Brazilian Deforestation Reductions

Amazon rainforest deforestation rates have fallen to their lowest levels ever recorded and FRA is attributing this partly to the creation of sustainable forestry plantations in Brazil.

Seattle, United States, June 16, 2012 — Amazon rainforest deforestation rates have fallen to their lowest levels ever recorded and Forestry Research Associates (FRA) is attributing this partly to the creation of sustainable forestry plantations in Brazil.

New figures from the National Institute for Space Research in Brazil show that deforestation has reached the lowest levels since records began more than 20 years ago, and the results are being published just a fortnight before the Rio+20 Earth Summit.

In the 12 months to 31 July 2011, some 6,418 square km of forests were destroyed, which is the smallest area since 1988. The rate of deforestation has actually dropped by 75 per cent since 2004 and FRA, along with many other analysis organisations attributes much of the success to the measures brought in by the Brazilian government to try to limit deforestation.

Brazilian President, Dilma Rousseff, said the government was largely responsible for the improvement. She said, “This reduction is impressive; it is the result of changes in society, but it also stems from the political decision to inspect, as well as from punitive action by government agencies.”

FRA’s analysis partner, Peter Collins, said that the government’s measures have had a big effect. “An example is their move to discourage the steel industry from using illegally logged timber for the production of charcoal. Any firms that did so would not have been eligible for state handouts, so they all turned to sustainable plantations, such as those run by Greenwood Management and other similar investment firms, to source their charcoal.”

FRA claims that this means the market for sustainably produced timber and charcoal is growing, which is great news for anyone investing in timberland in Brazil.

Greenwood and other plantation management firms offer people outside Brazil the chance to invest in non-native timber plantations that help to provide alternatives to local illegally logged timber.

About Forestry Research Associates

Forestry Research Associates is a research and advisory consultancy that focuses on forestry management, sustainability issues and forestry investment around the globe.

Media Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

FRA: Now’s the time to invest in timber

FRA has signalled its support for a Seeking Alpha claiming that now is a great time to invest in timber.

Bainbridge Island, WA, December 22, 2011 – A recent report from Seeking Alpha claiming that now is a great time to invest in timber, has attracted support from Forestry Research Associates (FRA), an analysis and research consultancy specialising in forestry investment and sustainability.

Although, on the surface, the fact that timber prices have fallen slightly lately could seem like a negative trend for forest investments, FRA supports claims from analyst Kevin McElroy, that this is a great time to buy into the industry. The thinking is that most varieties of timber grown in the North America region are cheaper than they were this time last year. However, the housing market is expected to bottom out very soon and, as a result, prices could soar again before too long.

Wood prices are generally on a growing trend, claims FRA’s analysis partner, Peter Collins who explained, “Between 1987 and 2007, timber’s average return on investment was an impressive 15.7 per cent, far exceeding gains made by those who invested in stocks and shares.”

Mr Collins added, “Forestry is becoming a go-to asset class among savvy investors who are looking to protect their portfolios against risk by opting for an investment that is correlated highly with inflation, but has little correlation with equity markets.”

With widespread predictions that the US housing market will bottom out in 2012, the chance that timber prices could soar off the back of growth within the construction industry, for example, could be too much for investors to resist, claims FRA.

FRA supports investment into sustainable forestry plantations and projects in developing countries, such as the projects run by Greenwood Management. It sees these project as a great way to diversify an investment portfolio while helping to prevent deforestation of some of the world’s most vulnerable and valuable forests. “The plantations of non-native tress that firms like Greenwood crate can offer alternative sources of timber and charcoal to cutting down valuable native forests,” concluded Collins.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com