FRA has said that further evidence to illustrate the potential returns involved with timberland investments has been published this week.
Seattle, United States, July 13, 2012 — The research and analysis consultancy is referring to a new report that shows that forestry investors putting their cash in Scottish forests last year, saw healthy returns. The JPD UK Forestry Index has reported that forestry investments in Scotland saw returns of 34.8 per cent in 2011, according to reports in The Scotsman newspaper.
“This kind of rate of return is very impressive and will prove an extremely attractive draw for anyone considering alternative investments going forward,” claimed FRA’s analysis partner Peter Collins.
FRA advocates alternative investments and, in particular, forestry investment as a means to generating good returns while ensuring that investments help to maintain forested areas safeguard the industry for generations to come.
The JPD Index was at its highest ever last year, with analysts claiming that this reflected the fact that timber prices and demand are rising off the back of the growing appetite for raw materials in developing economies, such as China and India.
The demand for timber in the UK has also grown off the back of a rise in the use of wood as fuel and the growing efficiency of the sawmill facilities in Scotland, which help to generate strong yields from timber harvests.
FRA supports sustainable forestry projects, such as the non-native plantations run by Greenwood Management in Brazil. This kind of project allows people to invest directly in timberland without having to wait until their trees mature to enjoy the returns.
“Forestry investment in growing increasingly popular as people want something tangible in exchange for their investments following the economic crisis,” added Mr Collins. “Forestry investments regularly outperform more traditional asset classes, including property, stocks and bonds, in terms of ROI.”
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.
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