Wood Resources Quarterly Figures show strong Timber Demand, claims FRA

New figures from Wood Resources Quarterly show that China’s wood imports have increased hugely over the past ten years - which is great news for those investing in sustainable forestry, claims Forestry Research Associates (FRA).

Although Chinese timber imports for the first quarter of 2012 were down slightly, imports of logs have increased almost every year for ten years. The reason behind the growing demand has been the country’s expanding economy and house building. As a result China has become the world’s largest importer of sawlogs, according to the report.

In addition, the report showed that the US is now providing more of China’s timber imports, while Russia and New Zealand are exporting less to China. The reduction in the import of Russian timber could be partly down to the fact that Russia has increased taxed on exported lumber.

China’s lumber imports were 15 times higher in 2011 than they were in 2001 - demonstrating the major growth in demand from the emerging economy. The value of the timber imported to China is now around $8 billion, up from just $630 million in 2001.

“This increase in demand from China has led to an increase in the return that timber investors see after buying up sections of plantations - through firms like Greenwood Management - or through investing in forestry fund,” explained FRA’s analysis partner, Peter Collins.

FRA, a research and analysis consultancy specializing in sustainable forestry investment analysis, claims that investing in timberland is still a good bet for those who would like to diversify their portfolio. “Forestry and wood prices tend not to follow general economic trends - so if the stock markets are losing value, chances are, your timber investments will be holding up well,” explained Mr Collins.

FRA claims that Greenwood Management, along with several other timberland investment companies, offer an ethical investment choice for those who want a tangible asset in return for their investment.

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