Bainbridge Island, WA (PressExposure) June 29, 2011 -- Forestry Research Associates (FRA), a research and advisory consultancy for the forestry industry, has welcomed the news that UK forestry investment returns have grown dramatically.
According to the Investment Property Databank (IPD), returns from forestry investment in the UK were around 20 per cent in 2010. FRA said that the figures highlighted forestry as outperforming other major asset classes, including gilts, equities and commercial property investments.
Investors saw returns of around 11.1 per cent the year before, with the rise to 20 per cent marking 2010 out as the strongest for forestry investment since 1992.
"In the 12 months to March 2011, UK timber prices rose by 38.4 per cent, which is pretty remarkable," stated FRA's analysis partner, Peter Collins. He added that the rate of increase was just 6.6 per cent the year before, which suggests that last year saw a major rise in demand for timber as a raw material and as a fuel.
Mr Collins added, "Demand for timber has grown massively in the last year as India, China and Japan seek to get their hands on as much raw material as they can to help them achieve the level of growth they aspire to.
"The forestry sector all over the world has benefited from this rise in demand, including in other emerging economies, such as Brazil and Costa Rica where managed forestry firms, such as Greenwood Management, are offering people the chance to cash in."
Following the release of the positive UK forestry investment figures, IPD said managed forestry was important in the UK and that it had a "key role to play" in carbon capture. The IPS also stated, "The UK's commercial forests are a unique renewable asset."
The UK Forestry Committee works hard to ensure that forestry managers have the help and guidance they need to be able to protect their forests from diseases and pests and, ideally continue to grow the amount of forested land in the UK to help cut CO2 emissions even further, stated FRA.