Tag Archives: timber

Finnish timber export demand rise highlighted by FRA

February 23, 2012 staronepr Leave a comment

Finland’s increased timber products expert figures show that demand for timber is set to grow, according to FRA.

Seattle, United States, February 23, 2012 — Finland’s increased timber products expert figures show that demand for timber is set to grow, according to Forestry Research Associates (FRA).

The research and analysis consultancy was responding to figures showing that Finland’s forestry industry exports rose by 4 per cent last year, and the value of the industry increased to EUR 20.8 billion.

FRA added that the increase reflects analysts’ views that the demand for timber in China, India and other growing economies, is huge and will continue to grow. Indeed, demand will start to exceed supply, driving up timber process and proving profitable for those with cash invested in forestry, according to many experts.

FRA also cited other factors like the increase in damage from the Pine Beetle in Canada and the rise in taxed on timber export in Russia, that could lead to greater demand from Europe, South America and the US.

Timo Jaatinen, the Director of the Finnish Forest Industries Federation, said that they must keep control of the forestry industry from a domestic point of view. “The forest industry’s products count among Finland’s most significant export articles and they are central to the maintenance of national prosperity,” he stated.

FRA’s analysis partner, Peter Collins, said that encouraging investment in sustainable forestry management is important for the future of the industry around the world. “Putting money into sustainable forestry projects in countries like Costa Rica and Brazil, help to ensure that the industry can provide a living for generations to come.

“It also helps to protect native forests through the growth on plantation trees for felling and export, while native forests can remain unscathed.”

FRA support projects such as Greenwood Management‘s plantation project in Brazil that grows teak, eucalyptus and other non-native species for the production of timber and charcoal. Charcoal is in high demand in the Brazilian steel industry, which is expanding in preparation for the World Cup and the Olympics later this decade.

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

Business

AAA: Billionaire’s decision to invest in forestry shows ethical approach

February 14, 2012 staronepr Leave a comment

A billionaire investor has this week opted to put much of his cash in forestry investments, in a move that has been welcomed by alternative and ethical investment advocates, AAA.

Boston, MA, USA, February 14, 2012 — A billionaire investor has this week opted to put much of his cash in forestry investments, in a move that has been welcomed by alternative and ethical investment advocates, Alternative Asset Analysis (AAA).

New Zealand-born and Singapore-based billionaire, Richard Chandler has decided to invest some $150 million into Tasmanian timber group Gunns, which means that he is now one of the their largest shareholders. The investment is intended to be used by the firm to finish the development of its long-awaited Bell Bay Pulp Mill. Chandler is expected to want to start influencing the business and driving growth.

Chandler claims that having an ethical influence on firms is part of the responsibility that comes with investing in them. He said, “Responsible investors will engage corporate governance issues where they encounter them, as an intrinsic and necessary component of professional investment management.”

AAA’s analysis partner, Anthony Johnson, claims Chandler is the latest in a line of influential investors to opt for an ethical approach to investing. Mr Johnson said, Investing in forestry can be an exceptionally ethical approach to making money as sustainable forestry helps communities to prosper while maintaining habitats for wildlife and adding to carbon absorption.”

Adding to the amount of forested land in a country is one of the best and most cost-effective ways of reducing carbon emissions thanks to the carbon sequestration characteristics of trees, claims AAA.

AAA supports forestry plantation investments, such as the one run by Greenwood Management in Brazil, which enables investors to buy up sections of sustainably-operated plantation land, which provide forestry products including charcoal for the steel industry.

Timber prices are expected to increase in the coming years as demand from Europe and emerging economies like China and India starts to exceed supply. Already, China is becoming one of the world’s major importers of timber and this trend is set to continue as its economy grows further.

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

AAA claims PPF timberland panel shows alternatives are attractive

February 13, 2012 staronepr Leave a comment

In a move that further underlines the attractiveness of forestry investments, according to AAA, the Pension Protection Fund is establishing a dedicated panel for forestry and agricultural investments.

Boston, MA, USA, February 13, 2012 — In a move that further underlines the attractiveness of forestry investments, according to Alternative Asset Analysis (AAA), the Pension Protection Fund is establishing a dedicated panel for forestry and agricultural investments.

The fund, which is worth well over $10 billion, has issued tenders for managers to sit on the panel, which will be dedicated to making decisions about growing and selling timber and investing in agricultural land.

This is just the latest in a line of panels that have been set up to concentrate on investing in alternative asset classes, which are becoming much more attractive as the stock market remains volatile.

AAA is a supporter of timber investment and particularly investment into sustainable plantation projects in developing countries. Its analysis partner, Anthony Johnson, explained, “As well as providing investors with the peace of mind that only comes with making ethical investment choices, investing in timberland can be extremely lucrative.”

Average returns from forestry investments have easily exceeded returns from equities in the past decade or so. In addition, anyone investing in timber has the added benefit of being able to sit on their investment and watch it grow if the market is not good when it’s time to sell.

“If timber prices are low when an investor’s timber stock reaches maturity, they can simply hold onto it for as long as they wish, in order to sell it when prices recover,” added Mr Johnson.

“In the meantime,” he continued, “their trees will grow by a further eight per cent per year, adding to the value of the timber.”

Most plantation schemes, like that run by Greenwood Management in Brazil, for example, grow non-native, fast-growing species such as acacia, eucalyptus and teak, that are popular for specific purposes such as the manufacture of charcoal or in the construction of homes or for furniture making.

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

AAA welcomes timber investment article

February 3, 2012 staronepr Leave a comment

An article in Money Morning, which talks about the benefits of investing in timber during economic downturns, has been welcomed by AAA.

Boston, MA, USA, February 03, 2012 — An article in Money Morning, which talks about the benefits of investing in timber during economic downturns, has been welcomed by Alternative Asset Analysis (AAA).

The alternative investment advocacy group claims that Don Miller’s article makes some very important points about how investing in timber, and in alternatives in general, can help investors during difficult financial times.

“Miller talks about the fact that this is a real, tangible investment, that you can count on to grow,” stated AAA’s analysis partner, Anthony Johnson.

As well as pointing out the average 14 per cent returns generated by timber investments in the period between 1987 and 2010, Miller’s piece also underlines the general consensus that timber demand is set to rise.

The United Nation’s Food and Agriculture Organization, for example, forecasts that demand for wood should double by 2050, despite emerging trends such as paper recycling. The growth of economies like China and India is promoting this major growth and Western investors are reaping the benefits.

The demand will also be promoted by the growing use of wood as a renewable fuel source, and our use of timber as a building material will also increase as you reliance on man-made, unsustainable materials cools off.

AAA’s analysis partner, Anthony Johnson lent his support for Miller’s arguments, adding “Investing in timber offers great protection against inflation and a dependable source of income whenever you need it.”

“The great thing about buying trees is that if the timber prices aren’t doing so well one year, you can sit tight and watch your investment physically grow bigger until you are ready to sell.”

AAA claims that something this measurable and tangible is attractive at a time when many are growing increasingly uncertain about investing in the stock markets. AAA supports projects run by firms like Greenwood Management, which offers investors the chance to buy up sections of sustainable plantations in Brazil.

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

FRA: Now’s the time to invest in timber

December 22, 2011 straightlinepr Leave a comment

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