Seattle, WA (PressExposure) July 04, 2011 -- Forestry Research Associates (FRA) has said that timber prices in Estonia are soaring thanks to demand from a new power plant in the country.
The research and advisory consultancy has welcomed the news that the country's timber market is benefiting from the new plant, while forestry managers will also be gaining from the sudden rush in demand for wood fuel.
Ulvar Kaubi, the Marketing Director for the State Forest Management Centre said that the price of firewood in Estonia has risen by 20 per cent in the last year alone.
FRA's partner, Peter Collins, said, "This Estonian rise in prices is indicative of the general increase in demand for timber products that is expected to come out of Europe in the coming years. In fact, demand is expected to outstrip supply very soon, causing timber prices to soar throughout the continent."
Mr Kaubi said that the demand for wood fuel in Estonia is expected to double in the coming years, according to local newspaper Postimees. He told the paper: "When the new Narva power plant is completed, the competition for paperwood will increase, as the new plant will crave a major part of Estonia's paperwood."
FRA also welcomed predictions from analysts at Frost & Sullivan who said that the number of global construction projects are on the up and that demand for engineered timber is also increasing as a result.
"All this is great news for those investing in forestry at the moment," added FRA's Peter Collins. He continued, "Sustainable forestry projects are springing up all over the world so it's not just Europe that is benefiting from the rise in timber prices. Many firms are offering investment opportunities in Latin American plantations of non-native timber. These timbers are then used in the construction, the wood fuel and of course the steel industry both domestically and overseas."
FRA encourages investment in sustainable forestry projects in emerging economies like Brazil to ensure that they too can benefit from the money being generated by the expanding demand for timber in all its forms.