Tag Archives: Forestry Research Associates

Business

FRA response to US Global Warming Report

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FRA analysis partner Peter Collins offers his response to the US Department of Agriculture report into global warming and its impact on forestry.

Seattle, United States, February 9, 2013 — Forestry Research Associates (FRA) has issued a response to the recent US Department of Agriculture report on the impact of global warming on forestry.

The report compiled over 1,000 scientific studies and is designed to serve as a roadmap for managing forests in North America in the years ahead. Unfortunately, it has some difficult truths to convey, including news that the area burned by wildfires is expected to at least double within the next 25 years, while insect infestations look set to become an even bigger problem, affecting more land per year than fires.

Peter Collins, analysis partner at FRA, offered his view: “America’s forestry industry has the potential to provide raw materials for trade and incomes for thousands of employees. But perhaps its most important responsibility is to provide a sustainable resource that can help to tackle global warming”.

“We all know it’s true but it is easy to forget the role that trees play in managing and absorbing the planet’s emissions. Forests really do act as the world’s lungs and this report highlights the problems that lie in wait if we refuse to step up and accept the responsibility that is inherent in managing forests.”

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

Business

FRA welcomes report on climate change mitigation investment

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The World Economics Forum has released a report that states that some $700 billion is needed in extra funding to make a real difference to climate change. The report has been welcomed by analysts at FRA, which endorses investment in sustainable forestry projects.

Seattle, United States, January 25, 2013 — The World Economics Forum has released a report that states that some $700 billion is needed in extra funding to make a real difference to climate change. The report has been welcomed by analysts at Forest Research Analysis (FRA), which endorses investment in sustainable forestry projects.

The report outlined the fact the cash invested into climate change mitigation in 2011 was 93 per cent higher than the amount invested in 2007. However, the World Economics Forum still suggests this is way too low. Its report stated: “This business-as-usual investment will not lead to a stable future unless it achieves environmental and sustainability goals.”

FRA agrees that investment needs to be ploughed into areas such as clean energy, sustainable aforestation and preventing deforestation, low carbon transport and clean energy infrastructure.

Promoting ethical and green investments now is key to the future of the planet, according to a recent blog post by the Forum’s global managing director for strategy and sustainability services. He stated, that if people continue to invest in non-clean energies it could tie us all into many more years of reliance on these unsustainable sources of energy that will continue to contribute to climate change.

FRA’s analysis partner, Peter Collins, added that investing in timberland that produces sustainable and non-native lumber is a great alternative investment for those who agree with the Forum’s message.

“We endorse investment in clean energy and sustainable schemes, such as plantations run by businesses like Greenwood Management.”

Greenwood Management’s plantations of teak and eucalyptus are grown in regions where these species are not indigenous. They grow quickly and offer a great alternative to using timber from natural rainforests in the region. “The steel industry in Brazil uses a large amount of charcoal and it can now source this charcoal sustainably thanks to these kinds of plantation projects,” claimed Peter Collins.

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

Business

Forestry carbon cash boost could ‘help drive forest REDD+ scheme’ claims FRA

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The news that the World Bank’s Forestry Carbon Fund has been boosted by an impressive $180 million in funding, has been welcomed by FRA.

Seattle, United States, January 16, 2013 — The news that the World Bank’s Forestry Carbon Fund has been boosted by an impressive $180 million in funding, has been welcomed by Forestry Research Associates (FRA).

The research and analysis consultancy, specialising in sustainable forestry investments, claims that the extra funding will help improve chances of improving sustainability in countries like Indonesia and Brazil. “Some of these regions are still heavily reliant on the income they get from illegal forestry and being able to offer cash incentives for keeping their forests alive is a major boost to efforts to reduce deforestation.” Stated Peter Collins, FRA’s analysis partner.

The funding will go towards the Forest Carbon Partnership Facility (FCPF), which pays compensation to communities in developing countries that protect their forests. The extra cash came from Norway, Germany and Finland in an effort to further boost the REDD+ aforestation program.

World Bank vice president for sustainable development, Rachel Kyte, said that the funding is necessary to ensure the move against deforestation continues, “Forests continue to be lost as efforts to get the world on a greener, low-carbon growth path struggle to increase in speed and scale to meet the climate challenges ahead.”

Other support came from Norway’s special envoy for international climate change policy, Hans Brattskar, who explained, “REDD+ needs to move from planning to large scale action already in this decade if we are to maintain the two degree goal.”

Mr Collins added, “We agree that the extra funding is needed to drive the REDD+ program forward in order to keep up with the growing threat of climate change and the impact this is having on some of the most vulnerable communities in the world.”

“The Carbon Fund will bring countries and companies together to create early demand for forest carbon with strong safeguards,” added Brattskar.

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

Business

Timber Prices set to continue to Rise, claims FRA

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FRA has welcomed a report from Investorplace.com, claiming that timber prices are not set to fall in 2013, making the asset class a good bet for investors looking to diversify this year.

Seattle, United States, January 8, 2013 — Forestry Research Associates (FRA) has welcomed a report from Investorplace.com, claiming that timber prices are not set to fall in 2013, making the asset class a good bet for investors looking to diversify this year.

There are several reasons that the article gives for retaining faith in timber prices in the US. Writing for Investorplace.com, Aaron Levitt says, ‘Driven by several forces – including a rebound in the US housing market, expanding pulp sales and a few issues with Mother Nature – timber became the commodity du jour during the last year.’

He goes on to talk about the gains in the US housing market that are expected this year. Increases in house prices in 2013 will be the first since 2006 and, in response to this, new home building is up by an impressive 42 per cent on a year ago.

This increase in housing starts is the main reason for the increase in lumber prices, according to Levitt, and FRA has welcomed this news. Its analysis partner, Peter Collins, said, “The knowledge that 42 per cent more homes are being built than a year ago in the US is a strong indicator that timber prices will be on the up in 2013 and beyond.”

“Now is great time to invest in timber and timberland for a medium and long-term investment that is likely to diversify a portfolio against risk and act as a hedge against inflation,” he went on to say.

To illustrate this point, the price of framing timber, which is used in new homes, has increased by 38 per cent in 2012 to around $373 per 1,000 board-feet.

FRA supports a wide range of sustainable, environmentally friendly alternative investments, including investing in sustainable plantations of non-native trees in Brazil and Canada. Investments in these kinds of plantation can be taken out through firms like Greenwood Management.

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

Business

FRA supports prediction of increased lumber exports to China

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FRA has endorsed a report from a forestry market analyst claiming that Chinese demand for Canadian timber will increase in 2013.

Seattle, United States, December 31, 2012 — Forestry Research Associates (FRA) has endorsed a report from a forestry market analyst claiming that Chinese demand for Canadian timber will increase in 2013.

British Columbia, one of the main timber growing regions in Canada, exported a total of 5.4 million cubic metres of softwood lumber in the first nine months of the year. Although this was a slight decline on the exports in the same period of 2011, Mark Kennedy of CIBC World Markets claims this is all to change.

Kennedy said that the small decline is actually quite a good result in light of the slight weakening of the Chinese real estate industry. The timber imported into China from Canada is generally used to reinforce concrete in apartment buildings and also for door and window frames. This means that imports will always be strongest when the country is building lots of homes.

FRA, a research and analysis consultancy, backs Mr Kennedy’s claims that social housing support and other stimulus moves announced by the Chinese government could mean more timber imports. He claims that between 2013 and 2015, timber imports could increase by as much as 20 per cent. Canada, in turn, supplies more than 80 per cent of all the lumber exported from the US.

In terms of China’s demand for new homes, some two million homes that were previously demolished need to be rebuilt and, even without this, China plans is to build some 10.75 million new homes every year for the coming 15 years.

FRA’s analysis partner Peter Collins, said, “With this kind of real estate development happening, we are confident that demand for sustainable timber will increase over the coming years. In fact, evidence suggests that demand will outstrip supply by some margin, which will also lead to rising prices.”

FRA claims that this all means strong returns for those who invest in sustainable forestry projects in Canada, through firms like Greenwood Management.

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

Business

FRA Endorses the Use of Real Christmas Trees

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FRA has endorsed reports from a sustainability expert in Canada, claiming that buying a real tree is a much better choice, from a sustainability perspective, than opting for a fake tree.

Seattle, United States, December 18, 2012 — Forestry Research Associates (FRA) has endorsed reports from a sustainability expert in Canada, claiming that buying a real tree is a much better choice, from a sustainability perspective, than opting for a fake tree.

Artificial plastic trees would need to be kept for many years to ensure that the carbon emitted in their production is saved. However, most of them head to landfill within a few years. Steve Mitchell, a lecturer on sustainability issues at the University of British Columbia, stated, “Artificial trees need to be kept for 20 years for the carbon emissions to be equivalent to using natural trees.” He cited evidence from a study carried out by sustainability consultancy Ellipses in 2009.

FRA’s analysis partner, Peter Collins, said, “There are, of course, many choices to make when it comes to buying a real tree, with some options being more eco-friendly than others. However, providing you choose a Christmas tree from a sustainable plantation, you are likely to make a greener choice than if you go with an artificial tree.”

FRA claims that it is always a good idea to try to buy your Christmas tree from as close to your home as possible, to minimize the carbon emissions from the transport of the tree. Wild trees can be an option for some people, but it’s recommended that you check the local laws on using wild trees in your area.

Another green option is to buy a Christmas tree with a root ball still attached so that it can continue to grow after Christmas. “Planting your Christmas tree in your yard after the festive season is over is a lovely thing to do and you might even get more than one Christmas out of the same tree,” added Mr Collins.

FRA supports sustainable forestry investment and proved research and advisory services for those thinking of investing in forestry or timberland, through firms like Greenwood Management, which operates sustainable Christmas tree plantations in Canada.

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

Business

FRA Welcomes Tetra Pak Sustainability Credentials

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FRA has welcomed news that some 20 million cartons made by packaging giant Tetra Pak have carried the FSC logo in the past year.

Seattle, United States, December 8, 2012 — Forestry Research Associates (FRA) has welcomed news that some 20 million cartons made by packaging giant Tetra Pak have carried the FSC logo in the past year.

This means that 20 million of the cartons were sourced from renewable forests, certified by the Forestry Stewardship Council. It also represents a major increase from the 8 million that carried the logo in 2010.

Håkan Wirtén, from WWF Sweden, welcomed the news. He said, “This is a clearly positive achievement which contributes to protect forests and improve forest management globally.”

“WWF encourages Tetra Pak and other companies to continuously increase the use of FSC-certified materials and products.”

The WWF charity advocates the use of FSC-certified timber in packaging, furniture and building supplies manufacture. FRA, a research and analysis consultancy, specialising in forestry investment issues, also backs the use of FSC-certified timber. “There is really no excuse not to use sustainably produced timber these days, as it is widely available to all,” stated FRA’s analysis partner, Peter Collins.

The Tetra Pak cartons have been carrying the FSC logo since 2007, when UK supermarket chain store Sainsbury’s sold the first sustainably-sourced cartons. Now, the global brand supplies retailers in 39 countries with the FSC-certified cartons and continues to work towards improving its sustainability credentials all the time.

Tetra Pak’s vice president of marketing, Charles Brand, said that its decision to go sustainable wasn’t just to do with the boosting its credentials, but is also simply a response to consumer demand. “With more consumers and retailers demanding environmentally sound and ethically produced products, brands that carry the FSC label can attest that their products are packaged using material that has passed the toughest standards of responsible forest management.”

FRA backs sustainable forestry projects and encourages investment in plantations that are run sustainably, like those operated by firms like Greenwood Management in Brazil.

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

Business

Forestry can help to Diversify Portfolio, says FRA

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A recent article from GreenWorld BVI, calling for gold investors to supplement their portfolios with agriculture and forestry investment, has been endorsed by FRA.

Seattle, United States, November 16, 2012 — A recent article from GreenWorld BVI, calling for gold investors to supplement their portfolios with agriculture and forestry investment, has been endorsed by Forestry Research Associates (FRA).

The main reason that GreenWorld gives for diversifying away from solely gold investment included the fact that gold does not pay an income until it is sold. It is also a “faith-based investment”, as GeernWorld explained: “Gold is largely an economically unproductive asset.”

Agriculture and forestry are alternative asset classes, as gold is, and they also tend to keep their value during times of economic turmoil and offer a buffer against inflation, like gold. However, through investing in managed forestry and agriculture projects, investors can also enjoy regular incomes. An example is the projects run by Greenwood Management in Brazil, claims FRA.

These projects are intended to offer mid-to long-term investment options for those who want to buy up their own piece of sustainable forestry. Through working with Greenwood Management, investors enjoy the benefits of having their own managed forest land, while receiving income in the form of payouts when trees are harvested in a cyclical process. The timberland is managed to ensure there is new growth to replace mature trees that are cut down and sold. Trees that are sold generate returns for investors, who also enjoy a pay out when their investment reaches maturity.

Investing in forestry is a good option for any risk-averse investors who want to diversify their portfolio further. Spreading investment between several different asset classes offers good protection against risk and forestry is one of the most risk-averse assets. This is because timber simply carries on growing in size and value all the time, so if the market conditions aren’t right when investors want to sell, they can simply hang on a little longer and sell a larger product at a higher price.

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

Business

FRA agrees that Timberland is a good Long-Term Investment

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A recent article by Wyatt Investment Research published by Nasdaq.com discusses claims that timberland could be a better long-term investment option than gold. The report has attracted much support from FRA, a forestry investment analysis group that believes timberland is a strong and reliable long-term asset class.

Seattle, United States, November 14, 2012 — A recent article by Wyatt Investment Research published by Nasdaq.com discusses claims that timberland could be a better long-term investment option than gold. The report has attracted much support from Forestry Research Associates (FRA), a forestry investment analysis group that believes timberland is a strong and reliable long-term asset class.

The article from Wyatt Investment Research says that one of the main reasons trees are a great long-term option is that healthy trees physically grow by around 4 per 6 per cent in value each year. The article concludes that timber is indeed “better than the stock market as a long-term investment.” It then asks whether it can compare to a commodity like gold for long-term returns on investment.

Between 1991 and 2010, timberland investors saw returns averaging 11.16 per cent per year, with gold investors seeing gains of just 7 per cent each year during the same period. However, the article claims that people buy gold and timberland for very different reasons. “It’s right that people buy gold primarily to protect the value of their investments and protect their cash from wider economic factors, such as inflation,” explained FRA’s analysis partner, Peter Collins.

“However, timberland can offer these benefits as well, as timber tends to emerge from recessions and other economic crises relatively unscathed.”

One of the main benefits of investing in timber is the fact that the owner of the trees does not have to sell if conditions aren’t quite right when the trees reach maturity. If timber prices are low, they can continue to grow in size and in value until the market is just right. As a result, investing in timberland can be one of a least risky strategies during tough economic times, added Mr Collins.

FRA is a research and analysis consultancy focusing on forestry investment. It supports a range of forestry investment schemes, such as those run by Greenwood Management in Brazil and Canada.

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

Business

Investment Expert says Timber to outperform all other Asset Classes

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The latest prediction from investment guru Jeremy Grantham that timber will outperform all other asset classes in the coming seven years has been welcomed by FRA.

Seattle, United States, November 2, 2012 — The latest prediction from investment guru Jeremy Grantham that timber will outperform all other asset classes in the coming seven years has been welcomed by Forestry Research Associates (FRA).

The research and analysis consultancy supports forestry investment and is backing Mr Grantham’s prediction that annualized returns for timber investors will reach around 6.5 per cent over the coming years. Grantham is well-known in investment circles for co-founding the Grantham Mayo Van Otterloo (GMO) fund and has made a number of accurate prediction about asset bubbles in the past.

“It’s a good idea to take note of Grantham’s predictions when it comes to the next big asset,” claimed FRA’s analysis partner, Peter Collins. “At a time when stocks and bonds are continuing to struggle to generate anything near a strong return, a growing number of investors are looking for the perfect alternative asset class in which to put their hard-earned cash – and timber could be just that.”

In addition Grantham’s predictions may be on the modest side, as they only take inflation of 2.2 per cent into account. With higher inflation, returns from timber investment could be even higher.

The average price of timber has risen by 5 per cent each year for the past 100 years and timber tends to do particularly well during times of economic hardship, making it a very attractive prospect at the moment. For example, between 1973 and 1981 when the US inflation rates grew to as high as 9.2 per cent, timber prices were increasing at a rate of 22 per cent per year.

Mr Collins added, “Investing in timber through sustainable projects like those run by Greenwood Management in Brazil offers an ethical way to invest in managed forestry and a great opportunity to see strong returns while helping to reduce climate change and deforestation.”

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