Tag Archives: FRA

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FRA: Now’s the time to invest in timber

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FRA has signalled its support for a Seeking Alpha claiming that now is a great time to invest in timber.

Bainbridge Island, WA, December 22, 2011 – A recent report from Seeking Alpha claiming that now is a great time to invest in timber, has attracted support from Forestry Research Associates (FRA), an analysis and research consultancy specialising in forestry investment and sustainability.

Although, on the surface, the fact that timber prices have fallen slightly lately could seem like a negative trend for forest investments, FRA supports claims from analyst Kevin McElroy, that this is a great time to buy into the industry. The thinking is that most varieties of timber grown in the North America region are cheaper than they were this time last year. However, the housing market is expected to bottom out very soon and, as a result, prices could soar again before too long.

Wood prices are generally on a growing trend, claims FRA’s analysis partner, Peter Collins who explained, “Between 1987 and 2007, timber’s average return on investment was an impressive 15.7 per cent, far exceeding gains made by those who invested in stocks and shares.”

Mr Collins added, “Forestry is becoming a go-to asset class among savvy investors who are looking to protect their portfolios against risk by opting for an investment that is correlated highly with inflation, but has little correlation with equity markets.”

With widespread predictions that the US housing market will bottom out in 2012, the chance that timber prices could soar off the back of growth within the construction industry, for example, could be too much for investors to resist, claims FRA.

FRA supports investment into sustainable forestry plantations and projects in developing countries, such as the projects run by Greenwood Management. It sees these project as a great way to diversify an investment portfolio while helping to prevent deforestation of some of the world’s most vulnerable and valuable forests. “The plantations of non-native tress that firms like Greenwood crate can offer alternative sources of timber and charcoal to cutting down valuable native forests,” concluded Collins.

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 reacts to article Latin American forestry

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A recent report from the Wall Street Journal’s MarketWatch blog is being championed by Forestry Research Associates (FRA) as a beneficial piece for the forestry investment industry.

Bainbridge Island, WA, December20, 2011 – A recent report from the Wall Street Journal’s MarketWatch blog is being championed by Forestry Research Associates (FRA) as a beneficial piece for the forestry investment industry.

FRA is a research and analysis consultancy specializing in sustainable forestry and forestry investment topics. It is not a surprise, then, that its analysts welcomed the article explaining how investing in Latin American forests can be profitable during these uncertain economic times.

The article highlights the fact that forestry in the region is an up and coming asset class and that investors are learning that there are opportunities to analyse the market and invest with schemes that specialise in certain products. FRA says that many REITs offering forestry as an option outside of Latin America can focus on land coverage, rather than what the forestry projects actually produce. However, in Latin America, investors can buy up land managed by producers who focus on charcoal production, or eucalyptus crops, for example. Greenwood Management offers investors the chance to directly invest in their plantation projects in Brazil that largely focus on producing charcoal for use in the booming Brazilian steel industry and this is an area that is attracting the attention of in vestors from outside the region.

FRA supports these kinds of projects as, as well as being profitable for investors, they offer alternative sources of timber and charcoal to using native species, thus helping to reduce deforestation.

Latin American forestry is also benefiting hugely from the growth in demand from Asia and the resulting soaring timber prices. FRA’s analysis partner, Peter Collins added, “Timber values have increased steadily over the past few years and over the past decade, forestry investments have outperformed returns form stock markets.” He also asserted that the volatility of the equity markets are driving more and more Western investors to the relative safe havens of alternative investments.

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 Research investment welcomed by Forestry communities, claims FRA

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Forestry Research Associates has announced its support for the forestry research program revealed by The Consultative Group on International Agricultural Research at the Durban UN Climate Change Conference this week.

Bainbridge Island, WA, December 15, 2011 – Forestry Research Associates (FRA) has announced its support for the forestry research program revealed by The Consultative Group on International Agricultural Research (CGIAR) at the Durban UN Climate Change Conference this week.

The 10-year, $233 million project is intended to help protect forests, and the communities that rely upon them, for years to come. The project will from part of the UN’s attempts to protect forests as a source of valuable carbon absorption.

FRA, a research and consultancy organization with a focus on forestry investment and sustainability, said it was pleased to hear that more investment will go into the protecting this important industry. The CGIAR said that the initial three years of the research program will focus on agroforestry, with collaboration with the Colombia-based International Centre for Tropical Agriculture, the Kenya-based World Agroforestry Centre and Indonesia-based CIFOR.

Forests have come to be known as natural and valuable carbon sinks, with some analysts claiming the are responsible to sequestering up to a third of carbon emissions worldwide. As a result, nations are increasingly considering safeguarding forests as one of the most cost-effective ways of reducing climate change.

FRA’s analysis partner, Peter Collins said, “We are hoping that this research projects will give the governments of the developing world even more of a reason to value standing forests as much as the timber they produce.”

Frances Seyfour of the Centre for International Forest Research said that the issues surrounding sustainable forestry go even deeper than this, due to their impact on communities in developing nations. He explained, “We urgently need a strong and sustained effort focused on forest management and governance, given the crucial role of forests in confronting some of the most important challenges of our time: climate change, poverty and food security.”

“Otherwise, we risk the further impoverishment of the billion people who depend on forests and trees for their livelihoods, continued carbon emissions from forest destruction and degradation that already are a significant source of greenhouse gases, and loss of ecosystem services crucial to sustained agricultural productivity,” he concluded.

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 highlights Positive Forestry Report from UK

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A new report highlighting the strength of the forestry market in the UK over the past year has been highlighted by Forestry Research Associates (FRA) as another reason to invest in timber.

Bainbridge Island, WA, December 06, 2011 – A new report highlighting the strength of the forestry market in the UK over the past year has been highlighted by Forestry Research Associates (FRA) as another reason to invest in timber.

The report from property firm Savills and UPM Tilhill, published earlier this week, claims that timber prices are expected to be largely unaffected by the wider economic crises taking place in the Eurozone and the UK. “This report adds weight to the argument for putting some cash into alternatives that are less likely to correlate with wider economic trends,” stated Peter Collins, an analyst with FRA, a research and analysis consultancy that has a special interest in forestry investment and sustainable forestry.

The report highlights the rise in value of forested land in the UK, showing that purchasing forest land is a good way to diversify an investment portfolio to protect it against risk. This is particularly relevant at a time when stocks and shares are so volatile and investors are looking for safe havens for their money over the long and medium term.

This is according to FRA, which supports various forms of forestry investment, from buying forested land in the UK as a property investment, to buying areas of plantation land in Brazil, through managed forestry firms like Greenwood Management.

George McRobbie the forestry operations director at UPM Tilhill said, “We recorded a surge in forest values with an average of £4,650 per stocked hectare being attained, the highest level since our survey started and 34 per cent, some £1,174, up on 2010.”

He added, “This is equivalent to an annualized increase of 13.7 per cent since 2003. Optimism is clearly strong and overall the market is rising, backed by clear investor confidence and strengthening timber prices.”

Savills added that these value increases, along with the tax advantages of investing in timber, will continue to attract people to timber as an asset class.

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 Indian minister’s Commitment to Forest protection

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Forestry Research Associates (FRA) has spoken out in support of the Indian Environment Minister, Jayanthi Natarajan’s calls for measures to cut forest degradation in the sub-continent.

Bainbridge Island, WA, November 25, 2011 – Forestry Research Associates (FRA) has spoken out in support of the Indian Environment Minister, Jayanthi Natarajan, who has opened the Forest Congress event taking place in New Delhi with calls for measures to cut forest degradation in the sub-continent.

FRA, a research and analysis consultancy, said it welcomes the statement of intentions from Ms Natarajan, who, it claimed, seemed committed to improving the situation in India.

She did not skirt around the subject of forest degradation, instead opting for a direct approach, telling delegates attending the Forest Congress that the loss of forested land is taking place on an “unprecedented scale”. She called for some major changes to take place to remove the bureaucracy that prevents measures being implemented. The minister stated, “We need to completely reform our infrastructure so that it can be geared up to face these important challenges.”

“I think we need to reorient our institutions,” she added.

She explained that the introduction of strict forest management policies should be a major part of the changes taking place to try to protect the precious assets that are India’s natural forests. FRA agreed, adding that countries like Brazil have seen a positive reduction in deforestation levels through government policy as well as measures to encourage foreign investment in sustainable forestry schemes.

Sustainable plantation schemes, like those run by Greenwood Management in Brazil, provide alternative timber to the valuable native timbers found in Brazil’s vulnerable rainforests. Investors can invest in these projects and reap the benefits financially and with the knowledge that they are investing in an ethical programme.

FRA claims that India is a demanding example as the people themselves are putting increasing pressure on the forests. The organization’s analysis partner, Peter Collins, stated, “In developing countries it’s important to raise awareness among the people that there is value in standing forests as well as in timber.”

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 lends support to Brazilian Forestry Plantation Claims

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Forestry Research Associates (FRA) has announced its support for a statement from Timberinvestments.co, claiming that plantation projects in Brazil can help to reduce deforestation in the developing country.

Bainbridge Island, WA, November 23, 2011 – Forestry Research Associates (FRA) has announced its support for a statement from Timberinvestments.co, claiming that plantation projects in Brazil can help to reduce deforestation in the developing country.

FRA is a research and analysis consultancy that specializes in forestry investments as an alternative asset class. Its analysis partner, Peter Collins, claims that Timberinvestments.co is correct in claiming that plantations, such as those run by forestry investment firm Greenwood Management in Brazil, can contribute to the effort to reduce deforestation.

Timberinvestments.co claims that European investors have become increasingly keen on timber investments as an option instead of investing in the stock markets. Forestry has typically seen far better returns than the equity markets over the past decide and at the same time, the rate of deforestation in Brazil has fallen significantly.

FRA claims that the forestry plantations are helping to provide alternative timber that is produced through felling native trees. The consultancy also adds that the Brazilian government has been taking more and more measures to try to monitor the destruction of the rainforest by using satellite technology, for example.

FRA welcomed the move from Timberinvestments.co to try to talk about the destruction that is still going on, however, and the fact that attracting investments in forestry projects taking place in the region can help to increase the supply of non-native trees for use in the production of charcoal, for example.

Plantation projects can also help to promote sustainable forestry management practices, which will ensure that the forestry industry can continue to exist for generation to come, while preserving the native rainforests.

Peter Collins of the FRA explained, “Forestry is a strong asset class for those who want to diversify their portfolios at the moment.”

He added, “In addition, investing in sustainable projects in Brazil can help to protect the natural forests from illegal logging.”

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 claims expert comments reflect its views on forestry investment

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An investment expert’s predictions about forestry and farmland investment reflects opinions held by Forestry Research Associates (FRA), the research and analysis consultancy has claimed.

Bainbridge Island, WA, November 12, 2011 – An investment expert’s predictions about forestry and farmland investment reflects opinions held by Forestry Research Associates (FRA), the research and analysis consultancy has claimed.

Jeremy Grantham, who is considered to be a leading investor at GMO Asset Management, has predicted that forestry investment will continue to generate strong returns: “For those with a long horizon, I am sure well managed forestry and farmland will outperform the average of all global assets.”

The expert, who has been in the business for 40 years, is obviously keen to promote the advantages of this alternative asset at a time when traditional markets are looking vulnerable and far less attractive than they once were.

“Risk averse investors are steering well clear of traditional investments,” said FRA’s analysis partner Peter Collins. He added, “It’s refreshing to hear a high profile investment expert speak so confidently about the potential returns available through forestry investment.”

FRA supports investment in sustainable forestry, through firms like Greenwood Management, which runs several plantations in Brazil in which individuals or institutions can invest upwards of EUR10,000.

FRA claims that forestry is a solid bet as it is far less affected by larger economic trends and timber prices have been on an upwards streak for many months thanks to rapid infrastructure and construction growth in Asia.

Mr Collins also added, “Investing in timber is also a safe bet from an ethical standpoint as sustainable forestry plantations and other similar projects are helping to provide countries like Brazil with alternatives for charcoal other than using native trees.”

FRA claims that investing in managed forestry can also help developing countries, such as Brazil, to thrive and begin to understand the value that can be gleaned from standing forests, as well as from timber.

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

Forest Owned by Brewery Wins FSC Re-certification

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The forest land owned by Asahi Breweries in Japan has once again retained its Forestry Stewardship Council (FSC) certification, reported Forestry Research Associates (FRA).

Bainbridge Island, WA, November 10, 2011 – The forest land owned by Asahi Breweries in Japan has once again retained its Forestry Stewardship Council (FSC) certification, reported Forestry Research Associates (FRA).

FRA, a research and analysis consultancy that promotes sustainable approaches to forestry and forestry investments, has welcomed the reports from the Scientific Certification Systems, which re-certified the forests.

Asahi bought the Shobaru and Miyoshi forests during World War II as a means to safeguard its access to cork. However, the brewery group then set about producing high quality timber products from the forests by using the best forestry practices. As a result, the forests won FSC certification for the first time in 2001 and has managed to hold on to the certification ever since.

Dr. Robert J. Hrubes, Senior Vice President of SCS, said, “FSC “Asahi Breweries has demonstrated its commitment to preserving a valuable forest resource.”

He added, “FSC certification provides independent recognition of the company’s efforts to support its community and natural resources.”

The area certified covers some 1,169 hectares on which mainly cypress and cedar trees grow. The forest is operated with a policy of long-term rotation, which helps to ensure the sustainability of the forest.

FRA’s analysis partner, Peter Collins, has spoken out to welcome the news of the re-certification, “Asahi Breweries forests are a great example of how forestry – if carried out sustainably and with responsible practices in mind – can be a lucrative and long-term investment option.”

For those interested in a shorter-term forestry investment with similarly strong ethical credentials, Greenwood Management has acres of fast-growing non-native plantations in Brazil.

These plantations can be invested in by anyone with as little as EUR 10,000 to spare and who is looking for an ethical, alternative investment option. Mr Collins added that the plantations help to provide alternatives to native timber for the production of charcoal for the booming Brazilian steel industry.

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 reports on ‘forests for food’ claims

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Forestry Research Associates (FRA) has reported on claims from the Collaborative Partnership on Forests (CPF) that the world’s forests can play a vital role in feeding those living in developing countries.

Bainbridge Island, WA, November 04, 2011 – Forestry Research Associates (FRA) has reported on claims from the Collaborative Partnership on Forests (CPF) that the world’s forests can play a vital role in feeding those living in developing countries.

Although forests undoubtedly provide industry with the essential raw materials it needs to develop and expand, forests are also important for feeding the world’s hungry, claims the CPF. It adds that policymakers and international development agencies need to bear this role in mind when planning how forests should be managed.

The Food and Agricultural Organization of the UN, which is an active member of the CPF agrees with the claims. Its Assistant Director General, Eduardo Rojas-Briales, stated, “Forests and trees on farms are a direct source of food and cash income for more than a billion of the world’s poorest people.

“They provide both staple foods and supplemental foods. To enhance these benefits, governments and development partners should increase investments in support of sustainable forest management and rehabilitation of degraded forest lands,” he added.

FRA, which is a research and analysis consultancy supporting sustainable forestry and forestry investment, lent its support for the call for the importance of forests in the feeding of the world’s poor, to be considered when forestry management policy is established. Its analysis partner, Peter Collins, stated, “We agree that important consideration should be given to the important role and standing forests and sustainable forestry management plays in the developing world.

“We believe in supporting projects that boost the volume of forest and in emerging economies, such as the plantation project run by Greenwood Management and other similar businesses in Brazil. These projects add to the country’s forested land and also help to prevent the deforestation of native forests,” added Mr Collins.

Agroforestry has been touted as a viable solution that allows forests to be managed for timber, while helping to provide crops and livestock for food. The World Agroforestry Center’s Director General, Tony Simons, explained, “Agroforestry provides a climate smart agriculture alternative that can increase food production and improve farmers’ incomes and living standards.”

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