FRA reacts to article Latin American forestry
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
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
Forestry Research Associates
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Bainbridge Island, WA 98110
(206) 316 8394