FRA Welcomes Increased Chinese Forestry Output Values

The news that China’s forestry resources are being managed and used effectively to generate larger output values has been welcomed by Forestry Research Associates.

The new statistics have been released by the State Forestry Administration (SFA), which says there has been “significant growth in the industry”. Total output value for China’s forestry industry increased to $255 billion in the first eight months of 2011, which is an increase of nine per cent on the output value recorded during the same period of 2010.

China is still aiming to further improve on the efficiencies, according to the report. The production of timber and bamboo products has helped to boost the output value, while the tertiary industry, which involves the market for tourism in forested regions, has also received a boost.

“We are always pleased to hear that a forestry industry in a certain nation is healthy,” stated FRA’s analysis partner, Peter Collins. He added, “FRA supports sustainable forestry projects and works to ensure that they are not only productive in terms of environmental benefits, but also generate healthy returns for investors and those involved in the industry itself.”

FRA, which is a research and analysis consultancy based in the US, believes that increasing investment in sustainably managed forestry projects across the globe is the answer to the impending timber shortage that could arise if Chinese timber supplies run out. This week, a UN-based report from Australia claimed that Chinese forestry stocks could run out by 2038.

Anyone looking to invest in forestry could benefit by putting their cash into sustainable plantation projects in emerging economies, such as Greenwood Management’s projects in Brazil, as it is these plantations that can help solve the timber shortage problem sustainably.

The value of Chinese forestry product imports is already notably rising - with the latest figures showing an increase of 29.1 per cent year-on-year to $67.96.

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