Tag Archives: timber

Business

Timber Prices set to continue to Rise, claims FRA

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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

Business

Investment Expert says Timber to outperform all other Asset Classes

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The latest prediction from investment guru Jeremy Grantham that timber will outperform all other asset classes in the coming seven years has been welcomed by FRA.

Seattle, United States, November 2, 2012 — The latest prediction from investment guru Jeremy Grantham that timber will outperform all other asset classes in the coming seven years has been welcomed by Forestry Research Associates (FRA).

The research and analysis consultancy supports forestry investment and is backing Mr Grantham’s prediction that annualized returns for timber investors will reach around 6.5 per cent over the coming years. Grantham is well-known in investment circles for co-founding the Grantham Mayo Van Otterloo (GMO) fund and has made a number of accurate prediction about asset bubbles in the past.

“It’s a good idea to take note of Grantham’s predictions when it comes to the next big asset,” claimed FRA’s analysis partner, Peter Collins. “At a time when stocks and bonds are continuing to struggle to generate anything near a strong return, a growing number of investors are looking for the perfect alternative asset class in which to put their hard-earned cash – and timber could be just that.”

In addition Grantham’s predictions may be on the modest side, as they only take inflation of 2.2 per cent into account. With higher inflation, returns from timber investment could be even higher.

The average price of timber has risen by 5 per cent each year for the past 100 years and timber tends to do particularly well during times of economic hardship, making it a very attractive prospect at the moment. For example, between 1973 and 1981 when the US inflation rates grew to as high as 9.2 per cent, timber prices were increasing at a rate of 22 per cent per year.

Mr Collins added, “Investing in timber through sustainable projects like those run by Greenwood Management in Brazil offers an ethical way to invest in managed forestry and a great opportunity to see strong returns while helping to reduce climate change and deforestation.”

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 fast becoming the go-to place for investors, claims AAA

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Despite slower economic growth than recent years, Brazil still offers investors some very attractive opportunities, according to AAA.

Boston, MA, USA, October 26, 2012 — Despite slower economic growth than recent years, Brazil still offers investors some very attractive opportunities, according to Alternative Asset Analysis (AAA).

The fact that Brazil is now investing so heavily in transport and infrastructure ensures that investors from all over the world are interested in doing business in the Latin American country. Brazil is fast-emerging as one of the fastest growing economies in the world and has recently taken over from the UK as the sixth largest of the world’s economies. “things are really moving for Brazil and if you are looking to invest in somewhere that is on the up – Brazil is a good bet,” stated AAA’s analysis partner, Anthony Johnson.

Several specific projects are underway, which should attract investors interested in assets ranging from timberland to real estate. Firstly, there is the housing project that the Brazilian government is launching in order to build new, high quality homes for the millions of urban dwellers that have moved into Brazil’s cities. The government wants to get people out of the slum areas and into better houses. This will mean a greater demand for materials including steel and sustainable timber, “which is great news of those invested in Brazilian managed forestry,” added Mr Johnson.

Another major project that will please investors is the construction of the venues for the Rio Olympics in 2016 and the FIFA World Cup in 2014. As well as these venues, which will further increase demand for steel and timber, major road works are needed to ensure the infrastructure is in place to support the millions of extra people that will descend on Brazil’s cities during the events.

One of the transport solutions being mooted is the introduction of a bullet train service between Rio de Janeiro and Sao Paulo. Reports claim that the project has attracted the attention of a raft of foreign investors, all keen to get involved in this major project.

“These are, without a doubt, exciting times for Brazil and investors who put their cash into this future superpower now will be making the right decision, in our opinion,” added Mr Johnson.

About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.

Media Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.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

Business

FRA Welcomes Figures on English Forestry Sustainability

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England is fairing extremely well when it comes to sustainable forestry, according to a new report, which is being welcomed by Forestry Research Associates (FRA).

Seattle, United States, July 4, 2012 — England is fairing extremely well when it comes to sustainable forestry, according to a new report, which is being welcomed by Forestry Research Associates (FRA).

The new figures published by the Forestry Commission England show that only 0.04 per cent of trees that are chopped down are felled illegally. “The sustainable approach to forestry and the gradually expanding wooded areas in the country have all contributed to the increase in local timber being used instead of imported timber,” explained FRA’s analysis partner, Peter Collins.

FRA is a research and analysis consultancy that specialises in advocating timberland investment as a strong alternative asset class. It has welcomed the news that England is investing in its conservation habits, such as increasing the amount of land given over to woodland and restoring heathland.

Simon Hodgson from the Forestry Commission explained, “For the first time we have been able to publish a suite of new statistics to show what is happening to woods and forests in England and how Forestry Commission England is performing.

“The overall picture is great news for us. Protection of our woods and forests is strong with minuscule amounts of illegal felling.”

Although timber imports are falling in England, other nations, such as China, import much more timber than they used to, with much coming from the US, South America and Canada. China and other emerging economies are using more and more timber in the development of their infrastructure and housing in response to their recent economic growth.

FRA says that the increasing demand for sustainable timber in developing nations is great news for those investing in plantation projects in countries like Canada and Brazil. Firms like Greenwood Management are providing investors with the chance to directly invest in sustainably managed plantations of non-native species that help to reduce the pressure on natural forests 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

Wood Resources Quarterly Figures show strong Timber Demand, claims FRA

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New figures from Wood Resources Quarterly show that China’s wood imports have increased hugely over the past ten years – which is great news for those investing in sustainable forestry, claims FRA.

Seattle, United States, June 23, 2012 — New figures from Wood Resources Quarterly show that China’s wood imports have increased hugely over the past ten years – which is great news for those investing in sustainable forestry, claims Forestry Research Associates (FRA).

Although Chinese timber imports for the first quarter of 2012 were down slightly, imports of logs have increased almost every year for ten years. The reason behind the growing demand has been the country’s expanding economy and house building. As a result China has become the world’s largest importer of sawlogs, according to the report.

In addition, the report showed that the US is now providing more of China’s timber imports, while Russia and New Zealand are exporting less to China. The reduction in the import of Russian timber could be partly down to the fact that Russia has increased taxed on exported lumber.

China’s lumber imports were 15 times higher in 2011 than they were in 2001 – demonstrating the major growth in demand from the emerging economy. The value of the timber imported to China is now around $8 billion, up from just $630 million in 2001.

“This increase in demand from China has led to an increase in the return that timber investors see after buying up sections of plantations – through firms like Greenwood Management – or through investing in forestry fund,” explained FRA’s analysis partner, Peter Collins.

FRA, a research and analysis consultancy specializing in sustainable forestry investment analysis, claims that investing in timberland is still a good bet for those who would like to diversify their portfolio. “Forestry and wood prices tend not to follow general economic trends – so if the stock markets are losing value, chances are, your timber investments will be holding up well,” explained Mr Collins.

FRA claims that Greenwood Management, along with several other timberland investment companies, offer an ethical investment choice for those who want a tangible asset in return for their investment.

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

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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

FRA Welcomes New of Timber Future Price Hike

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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

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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

EU Legislation Outlawing Illegal Timber dealing is welcomed by FRA

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FRA has welcomed the introduction of new legislation in the EU that outlaws the selling of illegally sourced timber.

Bainbridge Island, WA, February 27, 2012 – Forestry Research Associates (FRA) has welcomed the introduction of new legislation in the EU that outlaws the selling of illegally sourced timber.

In a move that FRA claims strengthens the importance of investing in sustainable forestry projects, the EU will introduce its new Timber Regulations in March next year.

The new legislation will make sure firms that trade in timber are forced to check the source of their timber products and make sure they come from sustainably managed forests.

“This can only be good news for the environment and the forestry industry around the globe,” stated FRA’s analysis partner, Peter Collins. He added, “cutting out the trade in illegally sourced timber in Europe is essential to the fight against climate change and also for the sake of consumers who would hate to think they are encouraging deforestation when they purchase a new piece of furniture from a European retailer.”

FRA claims that as the opportunity to sell illegally sourced timber products reduces, the demand for timber produced from sustainably managed plantations will increase. “This is great news for forestry investors who have put their cash into plantation schemes at home and abroad,” added Mr Collins.

An example of this kind of project is the one run by Greenwood Management in Brazil. Greenwood offers investors the chance to invest in a section of plantation in Brazil for as little as $10,000. The plantation grows fast-growing non-native trees like teak and eucalyptus, whose wood is prized for its use in furniture making and in the production of coal for the steel industry.

The project is sustainable because the trees are harvested when they reach maturity but there are other trees being grown to replace them in a cycle model.

Those who are found to be dealing in illegally sourced timber after March 2013 will be fined the value of the damage the incident has caused to the environment, along with the value of the timber in question.

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