Tag Archives: FRA

FRA response to US Global Warming Report

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

FRA ‘shocked’ at World Bank Forestry Report

The $4.1 billion in funding invested by the World Bank into forestry projects has largely failed to fulfil its goals, according to the Bank’s own investigation

Bainbridge Island, WA, February 01, 2013 – The $4.1 billion in funding invested by the World Bank into forestry projects has largely failed to fulfil its goals, according to the Bank’s own investigations. Forestry Research Associates (FRA) claims that encouraging more private investment into sustainable plantations could help to improve the lives of those living in vulnerable forested regions.

The World Banks has given cash to 345 forestry projects spread over 75 nations in the ten years to July 2011. However, the report said that many of these projects were not being run sustainably or in an environmentally friendly way. The World Bank came under criticism for continuing to support industrial logging and failing to ensure the benefits of their cash were going to the rural poor rather than the local wealthy people, who were, in fact, benefiting more in some cases. The World Bank also failed to involve local communities in decision making.

Many countries in Europe and elsewhere have invested millions of dollars into the fund to support the forestry projects being backed by the World Bank. It is thought that this latest report could lead to a major review of these contributions. The UK, for example, has contributed $600 million to the Bank’s forestry schemes in the last five years.

FRA’s analysis partner, Peter Collins, said, “The news that the World Bank’s cash could have been doing the opposite of helping poorer communities and preventing climate change is a shock and we believe it’s now time to look at other ways to help these regions.”

FRA supports a range of sustainable forestry investment schemes, such as the sustainable plantations run by Greenwood Management in Brazil. Through these projects, local communities learn that keeping natural forests alive and standing can generate rewards through carbon trading deals, for example. At the same time, managing plantations responsibly means the forestry industry is safeguarded for generations to come.

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 welcomes report on climate change mitigation investment

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

Support for Timberland investment welcomed by FRA

A recent article advocating the selling of gold and the buying of timber as an asset class, has been welcomed by FRA.

Bainbridge Island, WA, January 18, 2013 – A recent article advocating the selling of gold and the buying of timber as an asset class, has been welcomed by Forestry Research Associates (FRA).

The article, written by Carl Delfield, the senior analyst at Investment U, claimed that although gold has had a “good run” it is timber that is looking like the big winner in 2013 for those interested in alternative investments.

Mr Delfield bases much of his argument on the fact that the price of lumber has outperformed the S&P 500 over the past century and is much less volatile at the same time. Prices have risen by an average of 5 per cent per year and timber is less affected by wider economic trends. It is, therefore, an attractive proposition in the wake of the financial crisis, which wiped millions from certain stocks and shares portfolios over night.

This long-term performance, together with its surging prices and demand right now, is getting investors excited, claimed Delfield. FRA, a research and analysis consultancy specialising in forestry investments, claims that the US housing recovery and the ongoing growth in the Far East and India are largely to thank for the growing demand for sustainable timber.

“Sustainability is the key, though,” added FRA’s analysis partner, Peter Collins. “If you are going to invest in timberland, make sure its sustainably managed – so there is always new growth coming up to replace the timber being harvested.” FRA claims that this is not only the ethical option, but the most potentially lucrative as sustainable timber is far more likely to be used in large developments these days – particularly ones paid for by governments.

FRA supports ethical investment in eco-friendly projects, such as the plantations run by Greenwood Management. The plantations grow fast-growing non-native species, such as teak and eucalyptus.

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

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

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

FRA welcome Opening of New teak furniture store in Texas

A new store in Texas has opened specialising in teak wood furniture and attracting endorsements from FRA, who explained that the teak used would otherwise go to waste.

Bainbridge Island, WA, January 12, 2013 – A new store in Texas has opened specialising in teak wood furniture and attracting endorsements from Forestry Research Associates (FRA), who explained that the teak used would otherwise go to waste.

Exotic Teak has recently opened its doors to discerning homeowners who want to bring a piece of beautiful furniture made from teak into their lives. The pieces designed and sold at the store are one-of-a- kind and use the stump and the roots of the teak tree, which would otherwise go to waste.

The teak wood furnishings are an eco-friendly concept as they use up the part of the teak tree that has no other use, allowing people to enjoy beautiful and unique pieces of furniture that have been made from sustainable Java teak timber.

Teak is grown sustainably in plantations all over the world, but some of the most suitable conditions are in tropical or subtropical climates, such as Brazil. Firms like Greenwood Management are taking teak growing to a sustainable new level with the plantations they manage in Brazil. Teak grows quickly and can be managed on a cyclical basis, which means there are always new trees growing to replace those chopped down and sold for lumber.

FRA claims that investing in such plantations can be a great way to diversify your investment portfolio, while doing something that can help reduce the pressure on the Amazon rain forests to produce timber and charcoal.

“The growing steel industry in Brazil needs charcoal to survive, but this charcoal is best coming from alternative and sustainable sources, than from the local indigenous forests,” claims FRA’s analysis partner, Peter Collins. “Plantations such as those run by firms like Greenwood Management are a great solution and can also generate great results for investors form all over the world who are looking for am ethical option,” he added.

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 supports Teak as a Great Investment Opportunity

Demand for sustainably produced timber is likely to increase and teak could be the answer, according to FRA.

Bainbridge Island, WA, January 08, 2013 – Demand for sustainably produced timber is likely to increase and teak could be the answer, according to Forestry Research Associates (FRA). This view was backed up by speakers at the Investment Week climate change Investment conference earlier this month.

Delegates at the conference, heard how teak is a great timber as it has the same strength as oak but grows much faster and is lighter in weight. As a result, it can be the perfect option for use in construction.

Although some plantations of teak once had a reputation for providing little by way of useful habitats, things are rapidly changing and team plantations are now operated in an increasingly sustainable way, by firms like Greenwood Management, for example.

Rupert Allinson of Harthill, which sponsors the Quadris timber fund, explained that timber plantations can help to safeguard local natural forests in the areas they are planted as they provide an alternative source of a material than is very much in demand, thanks to growing energy price and populations. Emerging economies such as Brazil, China and India have ambitious house building projects planned to help provide urban homes for those people who have moved into cities to take jobs.

Mr Allinson also told the delegates at the Conference that trees grown in teak plantations, such as those operated by Greenwood Management, are managed in cycles, which means there are always new trees growing up behind the ones that are chopped down and hold off.

FRA’s analysis partner Peter Collins, claims that means anyone investing in a teak plantations operated in this way will start to see returns sooner than they would if they had simply invested in buying a piece of forested land.

Thinning is also a part of the teak plantation management process and this produces smaller timbers that are sold off for use in energy production. Investors will often also see returns from the selling off the thinned timber at stages through the process.

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

Timber Prices set to continue to Rise, claims FRA

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

FRA supports prediction of increased lumber exports to China

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

FRA supports Prediction of Increased Lumber Exports to China

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

Bainbridge Island, WA, December 21, 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.

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