Tag Archives: Timber demand

Business

FRA claims Timber demand in Brazil is Growing

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There has been a marked increase in the demand for timber in Brazil, driving up local timber prices, according to FRA.

Bainbridge Island, WA, November 17, 2012 – There has been a marked increase in the demand for timber in Brazil, driving up local timber prices, according to Forestry Research Associates (FRA).

The research and analysis consultancy was responding to the recent figures published by Wood Resources Quarterly. The figures show that the investment in housing and infrastructure in Brazil is resulting in major growth in the timber industry, with more and more timber being required for construction, energy and charcoal purposes.

In addition to the local demand, the fact that the Brazilian real has been losing value has meant that Brazil’s own timber and timber products are growing in popularity abroad, leading to more exportation of Brazilian-sourced timber.

“The vital part in all of this,” claims FRA’s analysis partner, Peter Collins, “is that the timber being used at home and exported abroad is sustainably sourced.

“It would be a tragedy if the demand led to more deforestation in the Amazon, for example.”

FRA is now calling for more investment in Brazilian plantation projects, such as those run by Greenwood Management, which manages fast-growing, non-native species of tree in sustainable forestry plantations for use in construction and charcoal production.

What’s more, those who invest in this type of plantation will see healthy returns as demand for timber increases and prices grow in response. Although the price being paid for timber and products like Pulpwood are coming down from a US dollar perspective, the real’s value has dropped, which means the prices being paid locally are actually increasing significantly and have been for some time.

“It’s a great time to invest in managed forestry in Brazil,” claimed Mr Collins. He added, “market conditions are looking strong and for alternative investors, timber offers a prefect mix of returns on investment and ethical credentials, which makes it an attractive choice for many following the economic crisis.”

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

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

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

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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 welcomes Prediction of Timber demand increase

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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 says Timber demand from China could help US forestry industry

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FRA has welcomed the news that the demand for timber is on the up thanks to the increasing appetite for timber in China.

Bainbridge Island, WA, February 14, 2012 – Forestry Research Associates (FRA) has welcomed the news that the demand for timber is on the up thanks to the increasing appetite for timber in China.

Figures on timber harvesting in 2011 analysed by forestry economist, Gary Lettman, showed that harvests had picked up last year with the number of board feet harvested looking better than the past few years, which have been disappointing for the US forestry industry.

West Wood Productions Association’s CEO, Kevin Binam claims that demand in 2012 is going to improve, but is still cautious. He said, “There’s not anybody out there jumping for joy, saying it’s going to be a roaring good year, but everybody expects 2012 to be a little better than 2011.”

Many mills in the US are still running at around 80 per cent capacity, up from around 70 per cent last year in many cases. Industry insiders said they will be able to ‘ramp up’ production should demand increase even further from China and other emerging markets.

Exports of logs to China totalled 1.1 billion feet, up 108 per cent in the first ten months of last year, which indicates a major improvement in demand from the country. Binam said, “That’s been a big game changer for, not all the Western [US] mills, but certainly for some.”

FRA’s analysis partner, Peter Collins, said that although the experts are remaining tight-lipped about the prospects in 2012, the increase in demand from China is great news for the industry, which has had a tough few years. He said “We expect this increase in demand to translate to higher timber prices, with investment in sustainable forestry plantations in developing countries still proving popular with Western investors.”

FRA is an analysis and research consultancy that specialises in forestry investment. It supports a range of sustainable projects in which people can invest, including Greenwood Management’s teak and eucalyptus 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