FRA welcomes Prediction of Timber demand increase
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
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.”
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394