Tag Archives: FRA

Business

FRA welcomes Forestry Investment Program positivity

Leave a comment

Ghana, the Democratic Republic of Congo (DRC) and Burkino Faso have all given insights into their intended responses to the Forest Investment Program (FIP), claims FRA.

Bainbridge Island, WA, May 03, 2012 – Ghana, the Democratic Republic of Congo (DRC) and Burkino Faso have all given insights into their intended responses to the Forest Investment Program (FIP), claims Forestry Research Associated (FRA).

The research and analysis group said that reports from allafrica.com show that representatives from each of the three African nations have pledged to continue their support for the REDD+ scheme in exchange for funding under the FIP.

Speaking at the annual FIP pilot scheme meeting in Brazil, Burkino Faso’s officials said that the country maintains a strong political affiliation and support to reduce emissions from deforestation and forest degradation (REDD+). The country also pledged to improve synergies between the REDD+ work and other industries, such as agriculture and environment. It wants to invest in private sector forestry.

Meanwhile, both Ghana and Burkino Faso mentioned that they were finding management of stakeholders’ expectation a challenge.

The DRC said that it has made some headway in keeping track of investments under the scheme, through the launch of an online National REDD+ Projects register, which monitors the projects that are receiving the funding. However, it added that the private sector is still sceptical due to high taxes and complexities.

FRA’s analysis partner, Peter Collins, said, “We support the REDD+ program and are pleased to see that developing nations are still being rewarded for protecting their forestry industries for generations to come.”

FRA believes that schemes like the FIP and carbon trading programs help communities living in developing nations to realize and benefit from the value of standing forests. “This helps to reduce the reliance on non-sustainable forestry practices and underlines the benefits of managed forestry,” added Mr Collins.

Investors all over the world can do their bit to promote sustainable forestry and managed forestry by investing in plantation projects like those run by Greenwood Management in Brazil.

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 Timber investment article from Pictet-Timber head

Leave a comment

FRA is welcoming an article by Pictet-Timber fund co-manager Gabriel Micheli in Investment Week, giving tips to anyone considering investing in timber.

Bainbridge Island, WA, May 02, 2012 – Forestry Research Associates (FRA) is welcoming an article by Pictet-Timber fund co-manager Gabriel Micheli in Investment Week, giving tips to anyone considering investing in timber.

Mr Micheli is keen to point out the potential returns that can come about as a result of opting for timber investments, which will be underpinned by real growing demand for timber products in emerging economies such as China and India.

He said that wise investors are “waking up” to the environmental “megatrends” in the market. These include the realisation that growing forests can provide communities with income as they provide potential for carbon trading arrangements. As a result of these arrangements, developing countries can make money from developed nations through carbon trading. This is possible because trees absorb huge amounts of carbon dioxide from the air and therefore provide one of the most cost-effective means of reducing carbon emissions.

Mr Micheli added that investors are regularly seeing their returns from timber investment exceeding returns on stocks and shares investments. He points out that between 1990 and 2011 the NCREIF Timberland index returned 10.7 per cent each year. He claims that this shows that timber has a “key role” to play in any portfolio that is diversified against risk.

He claims that the demand for timber is coming from the nations that are desperate to get their hands on raw materials to continue their housing and infrastructure developments. At the same time, supply is not keeping up with the pace, which will drive prices up.

“Along with Mr Micheli, we are confident that timber prices will rise along with demand in the coming few years,” stated Peter Collins, the analysis partner at FRA, a research and analysis consultancy specialising in forestry investment.

He added, “Investing in sustainable timber growth, through firms such as Greenwood Management and Pictet-timber fund can provide careful investors with the chance to make a health return form an ethical investment –something that is not that easy to come by.”

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 says Bamboo Prices could Rise

Leave a comment

FRA says it is “excited” by the prospects of bamboo being hailed as the new super material, which can be used for everything from housebuilding to garment manufacture.

Seattle, United States, April 12, 2012 — Forestry Research Analysis (FRA) says it is “excited” by the prospects of bamboo being hailed as the new super material, which can be used for everything from housebuilding to garment manufacture.

The research and analysis consultancy, which specialises in the forestry investment sector, claims that bamboo’s uses could make prices rise hugely over coming years, making it a good prospect for alternative investors.

“As the demand for raw materials increases in countries like China and India, the price of bamboo, which has so many uses and is a fast growing species, is bound to rise significantly.” FRA claims that bamboo, like other forestry stocks, absorbs carbon from the atmosphere, which means that when grown sustainable, it can offer one of the most cost effective ways of limiting climate change. All this while also producing a material that has so many purposes.

FRA’s analysis partner, Peter Collins, added, “We believe that bamboo, along with teak, eucalyptus, and other fast-growing durable forestry species, offers a wonderful opportunity or environmentally conscious investors.

“Prices of these asset classes are expected to grow over the coming years, as emerging economies continue to expand and demand more and more raw materials for construction and infrastructure projects.”

FRA supports investment in sustainable forestry projects, and bamboo, although not strictly a timber product, comes under the same banner. In fact, bamboo is being touted as the ‘timber of the 21st century’.

“As with projects like the plantations run by Greenwood Management and other companies in developing countries, the growing of bamboo in a sustainable way has the potential to help people living in these countries to establish a living and safeguard it for the next generation, providing proper forestry management techniques are used,” added 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 ‘disappointed’ in US Illegal Timber Imports

Leave a comment

FRA has said it is ‘disappointed’ to hear that the US is still regularly importing illegally logged timber from the Amazon rain forest.

Seattle, United States, April 11, 2012 — Forestry Research Associates (FRA) has said it is ‘disappointed’ to hear that the US is still regularly importing illegally logged timber from the Amazon rain forest.

A recent long-term research study by the Environmental Investigation Agency (EIA) has found that millions of dollars worth of timber has been imported into the US by over 20 US-based businesses since 2008.

The report stated, “Exporters in Peru and importers in the United States and around the world are currently integral parts of a systematic flow of illegal timber from the Peruvian Amazon.”

Peter Collins, an analysis partner at research and analysis consultancy FRA, said, “We are disappointed to learn that illegal logging is still seen as OK among so many US businesses, who are willing to support the trade in timber that has been sourced from vulnerable forests.”

Although the report claims that “sheer negligence” is somewhat to blame, US firms should see sustainable sourcing of timber as an obligation, claimed FRA. Mr Collins added, “It’s not difficult these days to source sustainably produced timber and it doesn’t have to cost the earth.”

FRA supports projects like the FSC scheme, which clearly labels sustainable timber to help consumers make the right choices when buying timber products.

The EIA investigation was carried out over several years and found that US firms illegally laundered and imported 112 shipments of protected mahogany and cedar from the Peruvian Amazon between 2008 and 2010 alone.

The report does not hold back, stating, “Sometimes intentionally, sometimes through sheer negligence, each of the actors and agencies involved in this system are working as gears in a well-oiled machine that is ransacking Peru’s forests and undermining the livelihoods and rights of the people that depend on them.”

FRA supports sustainably managed forestry schemes in Latin America, such as the plantations runs by Greenwood Management in Brazil. US investors are able to invest in these projects, helping them to thrive and reaping the financial benefits of growing timber prices, explained FRA.

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

WWF Report into Sustainable Procurement could Boost Timber demand, says FRA

Leave a comment

FRA, a research and advisory consultancy, claims that the publication of a report into public sector timber procurement in the UK could lead to a greater demand for sustainable timber.

Bainbridge Island, WA, April 02, 2012 – Forestry Research Analysis (FRA), a research and advisory consultancy, claims that the publication of a report into public sector timber procurement in the UK could lead to a greater demand for sustainable timber.

The high profile World Wide Fund for Nature (WWF) report has proven an embarrassment for the British public sector as it shows only half of the country’s 433 local authorities have a sustainable timber procurement plan in place. As a result, FRA claims that as much as ten per cent of the timber being used by the more than 200 local authorities could be from non-EU, illegal sources.

“As soon as these figures come out, most of the authorities will have to do something to repair their reputations and green credentials,” stated FRA’s analysis partner, Peter Collins.

The ‘Barking up the right tree?’ report found that 40 per cent of all timber imported to the UK is used by the public sector, with up to ten per cent of this being from questionable sources. Of the 433 authorities questioned only 16 were actually implementing their sustainable procurements plan effectively, while a few more showed immediate interest in improving their practices.

Changes will have to be made very quickly to the way in which timber is procured in the UK as, from 3 March 2013, the EU will be able to ban illegally sourced timber form the UK altogether.

Here at FRA, we hope that this will lead to a change in attitude among UK local government, who we believe have a responsibility to set a standard for how the timber they use is sourced,” added Mr Collins.

He also claimed that the law change could lead to a major increase in the demand for sustainable timber, such as that grown by firms like Greenwood Management in plantations in Brazil.

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 Flags Up ‘Future Climate’ Tree Species Trials

Leave a comment

An interesting research project is taking place in the UK, which could lead to some exciting plantation investment opportunities in the future, according to FRA.

Seattle, United States, March 30, 2012 — An interesting research project is taking place in the UK, which could lead to some exciting plantation investment opportunities in the future, according to Forestry Research Associates (FRA).

The Forestry Commission’s Forest Research division is carrying out a series of tests to try to establish species of trees that could survive and flourish in a ‘future climate’. Project REINFFORCE, as it is being known, is being funded by the European Union, explained FRA, which supports renewable forestry and forestry investment projects all over the world.

The project is growing 30 different tree species in 37 West Atlantic regions, including three trial sites in Britain. Forest Research is also carrying out three trials in Swinley, Berkshire and Peebles.

FRA’s analysis partner, Peter Collins, explained that the research is intended to find species that are most likely to be resilient to the challenges that may become more common in the future. For example, they are looking for species that may withstand high temperatures, a lack of water and more pests.

FRA claims that investing in these species once they have been established as the species of the future will be a good move for those looking to invest in an asset class that will see prices rise. Mr Collins explained: Sustainable forestry is undeniably an attractive investment opportunity these days, particularly in light of the volatility of the stock markets.”

FRA claims that people want to put their cash somewhere ethical and that investing in forestry research such as this project will help the human race to adapt to the changing climate. In addition, planting more trees is never a bad thing for the fight against climate change as trees absorb carbon dioxide from the atmosphere making forestry one of the most cost-effective ways to limit carbon emissions.

FRA supports a range of forestry investment schemes, including the plantation schemes run by 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

FRA welcomes Prediction of Timber demand increase

Leave a comment

A recent report in the Financial Times has provided a boost for the forestry investment industry, as it outlines how timber demand could increase by 55 per cent by 2050, according to FRA.

Bainbridge Island, WA, March 29, 2012 – A recent report in the Financial Times has provided a boost for the forestry investment industry, as it outlines how timber demand could increase by 55 per cent by 2050, according to Forestry Research Associates (FRA).

The feature begins by talking about how sustainable forestry investments are “flourishing” as the commodity’s value will rise “exponentially” as demand starts to exceed supply.

The increase in the demand for timber will result from the growing population and the increasing wealth of highly populated nations such as India and China, whose demand for raw materials is on the up as they invest billions in infrastructure and housing.

FRA’s analysis partner Peter Collins said, “We welcome the report from the FT, which plainly advocates investment in sustainable forestry projects as a viable, ethical and profitable alternative to traditional investments, such as stocks and shares, which are anything but reliable in the current economic climate.”

The report explains that biological growth means that tree value rises regardless of the market conditions for timber. When combined with the rising prices that are expected to result from the increase demand, investors could see huge returns for relatively small investments.

The FT also talks about how timber has been the only asset to experience price rises during three of the four market collapses in the past century. Forestry investment has, as a result, begun to attract those who are keen to diversify their investment portfolios with a asset class that is not aligned with general economic trends

Through projects like those run by Greenwood Management in Brazil, individuals can invest as little as EUR 10,000 to buy their own section of plantation land, which will be devoted to growing non-native, sustainable trees for domestic use and export to emerging economies. Mr Collins added, “Sustainable forestry projects also help to add to the earth’s carbon sequestration capabilities and contributes to habitats and green space for people and animals to enjoy.”

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 New of Timber Future Price Hike

Leave a comment

FRA has welcomed news that lumber prices in the US are rising off the back of a lack of credit in the lumber distribution industry.

Seattle, United States, March 29, 2012 — Forestry Research Associates (FRA) has welcomed news that lumber prices in the US are rising off the back of a lack of credit in the lumber distribution industry.

The research and analysis consultancy said that prices have risen 30 per cent in the past five months and that this was being prompted by distributors increasingly buying futures as a hedge in light of a lack of credit. They are finding it difficult to obtain the credit they need to buy lumber with cash, so they are resorting to futures.

Leonard Commodities analyst, Brian Leonard, told Reuters, “Distributors are having trouble buying lumber in the tight stocks environment and also they can’t get capital from banks so they’re buying futures.”

“This is great news for timber investors,” claimed FRA’s analysis partner, Peter Collins, who added, “more and more people are looking to the timber industry as a possible asset class, due to its flexible nature and the fact is does not correlate closely with equities.”

Recent figures show interest in lumber futures is up 18 per cent since January, while spot lumber prices have also risen by 12 per cent so far this year.

Leonard explained the attraction of buying up futures: “One contract of lumber is now worth about $28,000 and you can own a futures contract for $2,100. They’re buying on margin, which is what the futures market is for.”

“I have customers who have a good 50 to 80 percent more volume in futures than they used to own,” he added.

FRA is a keen promoter of forestry investment and supports projects such as those run by firms like Greenwood Management, which runs plantations of non-native, fast-growing tress species and offer investors the chance to buy up section of plantation land. Greenwood runs its projects in Brazil and Canada and investors can start with as little as $10,000.

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

Invest in Timber before House Building Boom, says FRA

Leave a comment

Investment site, StreetAuthority.com, claims that there could be money to be made by investing in timber right now, as house building is set to boom in 2013, says Forestry FRA.

Bainbridge Island, WA, March 06, 2012 – Investment site, StreetAuthority.com, claims that there could be money to be made by investing in timber right now, as house building is set to boom in 2013, says Forestry Research Analysis (FRA).

FRA, a research and analysis consultancy, claims that although house building has been very depressed in recent years – with the past three years being the lowest on record for the number of homes built – things could be looking up next year.

Analyst David Sterman, who wrote the article said, “Timber is a highly price-sensitive commodity. When demand marginally outstrips supply, prices can soar.” He added that although many agree that this year will be another slow year for the house building market, 2013 could see a boom, with some analysts claiming that a million new homes will be built in the US between 2014 and 2015.

FRA points out that the article refers to the Guggenheim Timber ETF, which is one of the funds offering forestry investment to those keen to diversify their portfolios with an asset class linked only very loosely to the equity markets. In 2007, Sterman says that the fund is seeing an increase in interest from investors who are once again, seeing timber as a valuable commodity with the potential for massive growth in the coming years.

Sterman said, ‘For example, a 20 per cent upturn in housing construction, coupled with a 30 per cent upward move in timber prices, could yield potentially robust share price gains for these timber producers.’

“This is a great time for timber investments,” claimed FRA’s analysis partner, Peter Collins. He continued “It often represents an ethical option that is a true alternative to stocks and shares at a time when equities look less attractive due to their volatility.”

FRA supports sustainable forestry investment, such as the schemes run by Greenwood Management in Brazil.

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 urges Investors to seek out RISI Forestry Industry Report

Leave a comment

FRA is urging those interested in alternative investments to get hold of a copy of the new RISI Global Tree Farm Economics Review.

Seattle, United States, March 01, 2012 — Forestry Research Associates (FRA) is urging those interested in alternative investments to get hold of a copy of the new RISI Global Tree Farm Economics Review.

The review is a comprehensive look at the market for investing in sustainable plantation projects and other timber investment schemes all over the world.

The report looks at the various trends, economic and political factors that could impact the industry and investment returns for those with money in the industry.

FRA, which is a research and analysis consultancy, was keen to highlight the reports findings regarding China’s use of timber imports. The report confirms that China’s timber demand has increased in recent years and shows that the timber supply deficit in the country increased by 30 per cent in 2011 to 152 million cubic metres.

The figures show that China’s import of pulp, lumber, logs and woodchip reached record level last year.

“These figures are bound to cheer timber investors as they show that China’s demand for timber is ongoing and should provide a strong market for timber exports,” explained FRA’s analysis partner, Peter Collins.

The reports also reviewed the major timber producing countries of the world in terms of their performance for timber investors and also their general outlook. The report’s co-author, Robert Flynn stated, “The Review is specific enough to be useful, but broad enough to cover the very wide range of geographic and product variations in type of timber investment projects.”

The report also outlines the benefits and risks involved with timber investment in each of the included countries. FRA supports forestry investment schemes such as the sustainable plantation schemes run by Greenwood Management in Brazil, which help to reduce the pressure on native trees to provide charcoal and other timber products.

“We believe that investing in timber is a good bet in view of the growing demand for wood products in emerging economies,“ concluded 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
Tel: (206) 316 8394
E-Mail: info@forestry-research.com
Web: http://www.forestry-research.com