FRA claims Timber demand in Brazil is Growing

							                FRA claims Timber demand in Brazil is Growing
 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

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