Tag Archives: Forestry Research Associates

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Thinning payouts will attract more people to forestry investment, claims FRA

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News that a forestry investment firm is making interim payouts to investors, as a result of a thinning process, will attract others to forestry investment, according to FRA.

Seattle, United States, October 26, 2012 — News that a forestry investment firm is making interim payouts to investors, as a result of a thinning process, will attract others to forestry investment, according to Forestry Research Associates (FRA).

Forestry investment firm Greenwood Management has announced it is hoping to make its first payout to investors who have been with the company since ‘Phase 1’ of their Acacia project, in Spring 2013. The payout will take place after Greenwood has undertaken a thinning exercise, which removes some of the trees in a plantation to allow others to flourish and grow as strong and large as possible, thus maximizing the quality of the final harvest.

The trees that are removed through the thinning process are sold for use in the production of charcoal or for use in fence construction, for example. FRA’s analysis partner, Peter Collins, stated, “This type of forestry investment model ensures that anyone investing in timberland doesn’t have to wait until final harvest to see returns on their investment – they see returns throughout the process, which is a very attractive prospect for those looking for a more medium-term asset class.”

Greenwood Management’s Acacia plantation is one of its most established and the initial Phase 1 investments were made back in 2008. Greenwood claims that the project is “well on target” with its, “operating model and is progressing extremely well in Bahia state, Brazil.”

The final harvest of the trees in which people have invested should be sold for a much higher value, as they will be larger and of the best quality, explained Greenwood Management. However, it added that it will try to optimize the returns from the thinning process for investors, which means ensuring that the timber is sold when market conditions are at their best.

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

New Addition to Impact Investment List welcomed by FRA

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FRA has backed moves to add Ecotrust Forest Management (EFM) to the open source ImpactAssets 50 2012 (IA 50) database of socially responsible impact investing funds.

Seattle, United States, October 18, 2012 — Forestry Research Associates (FRA) has backed moves to add Ecotrust Forest Management (EFM) to the open source ImpactAssets 50 2012 (IA 50) database of socially responsible impact investing funds.

The list is created each year and gives investors a guide to the top investment products that can deliver good returns, while delivering social and environmental benefits.

The funds listed under the IA 50 have a total of $10.2 billion invested in them and cover a huge range of geographical locations. A spokesperson for EFM, its CEO, Bettina von Hagen, stated, “EFM is honoured to be named among the 50 best impact investment fund managers in the world. We are committed to demonstrating an alternative approach to managing forests in the region – one that can be financially competitive, while at the same time beneficial to the health and resilience of ecosystems and rural communities.”

FRA supports a wide range of forestry investment initiatives, including plantations run by firms like Greenwood Management in countries like Brazil and Canada, which are densely forested. The fact that plantations growing alternative, non-native timbers are managed in these locations, helps to protect the native forests against illegal logging.

In Brazil, Greenwood Management’s plantations produce charcoal that is used by the Brazilian steel industry, which used to use native forests to produce their charcoal. “In this way, plantation projects, if sustainably managed, can help to reduce the impact of deforestation,” stated FRA’s analysis partner, Peter Collins.

Investing in impact investment funds and ethical investment products has become more popular since the economic crisis as a reaction to the volatility of the stocks and bonds market. Mr Collins added, “Investors want something more tangible in exchange for their investment and forestry funds offer just this. Investors with Ecotrust Forest Management and Greenwood Management are investing in timberland with established and growing trees.”

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

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Safeguarding Sustainable Forestry is Vital, claims FRA

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A recent article in The Guardian’s blog by Peter Holmgren, director general for the Center for International Forestry Research, has been warmly welcomed by FRA for providing some useful ideas on how we can further promote sustainable forestry.

Seattle, United States, October 11, 2012 — A recent article in The Guardian’s blog by Peter Holmgren, director general for the Center for International Forestry Research, has been warmly welcomed by Forestry Research Associates for providing some useful ideas on how we can further promote sustainable forestry.

Mr Holmgren cited the results of a study by his organization, which recently found that people living near forests rely on forest income for a fifth of their total household income, on average. “This research illustrate how incredibly important the forestry industry is for those living in these regions,” explained FRA’s analysis partner, Peter Collins.

He added, “Holmgren points out how forestry provides so much for so many people and that safeguarding its future is vital for communities all over the world, but especially in developing countries.”

Forestry as a means of reduce climate change through carbon absorption is now very much in the public consciousness. Carbon trading means that wealthy, industrial countries can pay developing countries with large amounts of forestry land to keep their forests standing to offset the impact of their industrial practices. In addition, Mr Collins and Mr Holmgren both point out that forestry is not disconnected from other industries. Holmgren explained to Guardian readers: “Forestry is not an isolated sector disconnected from the world beyond the trees. For local people, the forest is a source of renewable energy, food and livelihoods.”

Holmgren claims that there is a strong link between forestry and food security and that this, alone is a good reason to keep forests standing.

FRA claims that investing in sustainable plantations projects in countries like Brazil, that have large amounts of vulnerable natural forests, can help reduce deforestation. Mr Collins concluded: “Projects like the eucalyptus and teak plantations run by Greenwood Management in Brazil and Canada are lucrative choices for alternative investors, while being an ethical choice for those who want to safeguard the future of forestry.”

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 gets behind World Bank’s support of Forest Fire Action

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The World Bank has announced that it will be funding the Russian federation’s attempts to prevent forest fires, with a cash injection worth a staggering $40 million. The move has been welcomed by FRA.

Seattle, United States, October 6, 2012 — The World Bank has announced that it will be funding the Russian federation’s attempts to prevent forest fires, with a cash injection worth a staggering $40 million. The move has been welcomed by Forestry Research Associates (FRA).

The co-finance deal will take the form of a loan, that will contribute to Russia’s $121.26 million Forest Fire Response Project. The forest fire prevention project is run by the Federal Forestry Service and the Ministry of Natural Resources and Environment in an attempt to reduce the number of devastating forest fires that threaten Russia’s valuable forests.

Some 20 per cent of the world’s forests are to be found in Russia and every year, around 1.4 million hectares are affected by forest fires. It is thought that around 93 per cent of these forest fires are started by humans. The investment will help the Forest Fire Response Project to monitor the problems, help identify and extinguish fires and reduce the number being started in the first place.

“This investment shows the World Bank’s commitment to safeguarding the future of the forestry industry in Russia,” stated FRA’s analysis partner, Peter Collins.

“Sustainable forestry is not only a major source of employment and income for communities all over the world, but also provides a huge amount of the world’s oxygen and carbon absorption. Without trees, we would simply not be able to live,” added Collins.

FRA supports sustainable forestry in all its forms and is particularly keen to promote investment in plantation projects that run on a cyclical model, which ensures that trees are always growing to replace those felled.

“Sustainability is the key to any successful managed forestry project, in our opinion,” added Mr Collins. That’s why we support Greenwood Management‘s eucalyptus, teak and acacia plantation investment projects in Brazil. These forestry investment projects are a great way for investors to diversify their portfolios.”

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 Kenya Campaign against Illegal Logging

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A move in Kenya to strengthen laws that prohibit illegal logging has been praised by Forestry Research Associates (FRA). The Kenya Forestry services is arranging for timber and charcoal dealers across the globe to work together to outlaw the illegal practise. The Kenya Forestry Services Act stipulates that anybody engaging in cutting timber or burning charcoal unlawfully will be fined Kshs 50,000.

Seattle, United States, September 28, 2012 — A move in Kenya to strengthen laws that prohibit illegal logging has been praised by Forestry Research Associates (FRA). The Kenya Forestry services is arranging for timber and charcoal dealers across the globe to work together to outlaw the illegal practise. The Kenya Forestry Services Act stipulates that anybody engaging in cutting timber or burning charcoal unlawfully will be fined Kshs 50,000.

FRA advocates sustainable forestry in all its forms and supports environmental conservation and the international requirement of ten per cent tree cover, which Kenya is working towards.

Africa has made great improvements in its green policies in recent times and this latest campaign encourages local people to work with Kenya Forest Services (KFS) and Community Forest Associations (CFA) to embrace conservation.

Busia County Forestry Services Coordinator James Were points out that the Forestry Act amendment of 2005 requires formation of registered groups to deal in charcoal and timber. “Anyone caught masquerading in the timber business without a license of origin from KFS, will face the law non-selectively,” he said.

The Kenya government policy supports commercial forestry either by individuals or groups as long as green measures are adhered to. Timber investment is growing in popularity across the globe and FRA recommends sustainably managed plantations, such as the Greenwood Management scheme operated in Brazil.

Here, investors can strengthen their portfolio and snap up a piece of forestry land for as little as $10,000, which is a lot less than is involved when buying forestry independently. Greenwood manage these plantations and support the local community by offering jobs.

“Demand for timber is rising and this is an investment that can help you beat inflation,” said FRA’s analysis partner, Peter Collins. “Alternative investments are becoming more popular and the Kenyan government’s green policies prove that it is essential to work with companies that actively advocate sustainable forestry.”

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

Brazil is a Great Place to Invest, agrees FRA

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A new article in IFA Magazine by Green Forestry Investments’ Lisa Best, has been welcomed by FRA for championing Brazil as one of the best places to invest.

Seattle, United States, September 8, 2012 — A new article in IFA Magazine by Green Forestry Investments’ Lisa Best, has been welcomed by Forestry Research Associates (FRA) for championing Brazil as one of the best places to invest.

Lisa Best is a project manager for Green Forestry Investments and claims that, although Brazil’s economy is not growing as fast as it once was, it should definitely still be considered as a place to invest cash in alternatives, such as forestry and real estate.

Not only has the country become extremely stable, both economically and politically, in recent years it has also managed to win bids to host major sporting events over the coming few years. In 2014 the FIFA World Cup will be held in Brazil, while Rio will host the Olympics in 2016. For both of these events, considerable infrastructure investments will take place and the steel industry in particular is booming.

FRA’s analysis partner, Peter Collins, said, “This is one of the reasons why investing in forestry plantations in Brazil is a good bet. The plantations provide sustainable charcoal to the steel industry, who would otherwise be sourcing it form native forests which, as we all know, are threatened and extremely vulnerable.”

Ms Best added that Brazil already sources 85 per cent of the energy it needs from renewable sources. The government is still investing heavily in this area and, therefore, this is another reason why sustainable timber plantations that could produce biomass are worth investing in.

FRA supports all kinds of ethical investing and particularly green investments like timberland. Mr Collins explained that a growing number of investors want to see something with an intrinsic value in exchange for their hard-earned cash following the economic collapse. “Forestry investments through firms like Greenwood Management and Green Forestry Investments are a good option for risk-averse alternative investors,” stated Mr 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

FRA Welcomes Australian Carbon Forest EU Link-Up

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FRA have welcomed news that Australia’s carbon forests are being linked to the EU’s ETS to help encourage investment in the carbon offsetting tool.

Seattle, United States, September 4, 2012 — Forestry Research Associates (FRA) have welcomed news that Australia’s carbon forests are being linked to the EU’s ETS to help encourage investment in the carbon offsetting tool.

The move is also being greeted warmly by the country’s carbon offsetting pioneer, Greenfleet, which said that the change will bring plenty of credibility to its carbon forest scheme. Greenfleet CEO, Sarah Gipton, explained, “It brings greater simplicity to the scheme; and linking to the more established market means Australia will benefit from the EU experience and Australian carbon project developers can tap into a larger market.”

She went on to add: “We are confident that investment in Australian carbon forests that offer additional biodiversity benefits will continue to rise as liable parties build their carbon management portfolios.”

Ms Gipton issued a statement talking about the relatively new asset class of investing in carbon offsetting. She explained that most savvy investors will take the ‘portfolio approach when making investments to deal with the risks. This is the same as any other asset class – it’s always a good idea to hedge your bets with a diverse portfolio, claims FRA’s analysis partner, Peter Collins.

Greenfleet is a forest abatement organization that helps businesses to offset their carbon emissions by planting trees. FRA supports this kind of project and also investment in forestry via sustainable plantations, which can also help to businesses and individual investors to offset their carbon emissions – while making healthy returns.

“Investing in plantations through forestry managers like Greenwood Management, which runs plantations in Brazil and Canada, is a great way to give a little back while making your cash work harder for you.”

Forestry investment tend to perform better than stocks and bonds and the demand for timber and charcoal products is rising off the back of growing economies of India, China and Japan.

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 Georgia Sustainability Ruling

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A new executive order signed by Gov. Nathan Deal in Georgia will ensure that the region’s forests are certified as ‘green’ in a move that has been praised by FRA.

Bainbridge Island, WA, August 23, 2012 – A new executive order signed by Gov. Nathan Deal in Georgia will ensure that the region’s forests are certified as ‘green’ in a move that has been praised by Forestry Research Associates (FRA).

The signing of the order is also intended to help the region boost the number of new buildings that are awarded LEED green building certification. The move will expand the definition of sustainable timber to include timber form forests certified under the American tree Farm System and the Sustainable Forestry Initiative. Until now, only buildings made from timber certified by the Forest Stewardship Council could be eligible for LEED green building certification under the US Green Building Council.

As well as being supported by FRA, which advocates sustainable forestry in all its forms, the move has also won praise from the Georgia Forestry Association. The Association’s president, Steve McWilliams, said, “The governor has taken what I think is quite a stand for thousands of private timberland owners in the state by saying that we’re not going to let our wood be devalued by a policy wherein the end result of the quality of the product that goes into the building is substantially the same.”

FRA agrees that timber from forestry that has been managed sustainably should always be used as a preference to timber that has been sourced from non-sustainable sources. It also agrees that sustainability should not just be limited to FSC certification and that green building policies should be opened up to allow for other accreditation systems, such as those held by many of Georgia’s forests.

“Sustainability should not just mean ‘FSC-accredited’”, stated FRA’s analysis partner, Peter Collins. He added, “Any timber from forestry that is managed sustainable, through managed plantations such as those operated by Greenwood Management in Brazil and Canada, for example, should be usable in green construction projects.

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 Welcomed USA Today Endorsement of Timber Investment

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FRA has welcomed a new article published by USA Today predicting a boom in timber investment returns if the real estate industry returns to a strong position.

Seattle, United States, August 9, 2012 — Forestry Research Associates (FRA) has welcomed a new article published by USA Today predicting a boom in timber investment returns if the real estate industry returns to a strong position.

The housing collapse in the US brought with it a fall in timber prices. Now things are looking up again and, as a result, timber stocks are looking rather attractive once more, according to USA Today’s John Waggoner. Since timber futures prices’ lowest spot in early 2009, they have increased by an impressive 93 per cent. Although this is slightly less than the recovery in the Standard & Poor’s 500 index, the improvement in the real estate market indicates a good reason to buy up timber REITs.

In the past 12 months, new home starts have jumped by 23 per cent and the fact that housing is now a lot more affordable than the last time housing starts increased, suggests that the turnaround will last longer and be more notable this time, claims FRA.

The forestry investment advocacy group supports the USA Today article, claiming that timber REITs are very attractive, but that there are also other options for those who are interested in investing in timber. “We promote investment in sustainably managed plantations, such as those operated in Brazil by firms like Greenwood Management,” stated FRA’s analysis partner, Peter Collins.

These plantations allow investors to directly invest in a piece of forestry land for as little as $10,000, which is a lot less than is involved when buying forestry independently. Then, firms like Greenwood manage these plantations for the owners and start paying returns to investors as soon as money starts coming in from any mature trees on the entire plantation.

Mr Collins claims that this option mean that investors enjoy the diversification benefits of forestry investment, but also get to see returns sooner than they would through other direct investment routes.

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

Lumber ‘Treasure Hunts’ illustrate Demand for Timber, claims FRA

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FRA has claimed that the modern-day timber scavengers and ‘treasure-hunters’ prove that timber is growing in demand and value.

Seattle, United States, July 25, 2012 — Forestry Research Associates has claimed that the modern-day timber scavengers and ‘treasure-hunters’ prove that timber is growing in demand and value.

Reports into the increase in people searching for lost tropical rainforest timbers that fell to river and sea beds years ago, has prompted experts to use this as evidence of the ongoing demand for timber. A recent report in the Bangkok Post about the activity shows that there is a growing number of timber ‘treasure-hunters’ who search for long-lost logs of timbers no longer widely available due to logging restrictions.

Peter Collins of FRA, the research and analysis consultancy, said, “Many of these so-called treasure hunters are in operation in South-East Asia where a large number of exotic hardwood logs were lost during the period when logging of rainforests was more common and legal, back in the 1980s and 1990s.”

The article in the Bangkok Post described how the exotic lumber is in demand in Asia in particular, where it is used for the construction of everything from bar tops to pianos.

“The populations of many Asian countries are growing increasingly wealthy and want fine things made of beautiful timbers. However, the logging of many of these timbers is now illegal and the only way to get hold of them is to rescue logs that have been sitting on river beds for several years,” explained Mr Collins. He added, “The alternative, of course, is to source timber from sustainable plantations, such as those run by firms like Greenwood Management in Brazil and Canada.”

FRA supports sustainable timber plantations that allow investors to buy up sections of timberland while receiving returns from when the timber is harvested, processed and sold on. Timber demand in general is high at the moment, particularly in China, India and Japan, which is making timberland investment even more attractive.

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