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  • Forestry investments still strong in the UK

    2009 - 12.10

    An article regarding forestry investments in the United Kingdom was  in the Business Scotsman last week which reported that the UK forestry market has avoided the financial downturn which engulfed the economy.  It cited the fact that average forestry values have risen by more than eighty percent in the last five years.

    The article quoted Mr Crispin Golding of  UPM Tihill, a company which harvests and markets more than eight million tonnes of timber each year. His comments were at the launch of the Forest Market Report in Scotland.  Mr Golding stated,  “Investors not only appreciate the timber aspects of forests but also the wider credentials of forestry, for example as a source of sustainable bio energy, a green asset and a place to sequester carbon,”

    The Forest Market Report focuses on the major forestry transactions in the timber industry and it highlighted the growing interest in biomass from forestry investors in Scotland.  The costs of woodland  per hectare this year has maintained its strength despite the general economic malaise and reduction in housing/land values.  Forestry plots in the size bracket of  25 to 50 hectares  have firmed their values with prices reported to be almost £6000 per hectare,   a figure which is 40 percent higher than in 2007.  The report continued to say that economic conditions had surpressed timber demand, with particular reference to the construction sector,  which had clearly been in a steep decline over the last eighteen months.  The Foreestry Report also pointed out that the weakening of the pound against many of the worlds major currencies  had  helped to  keep domestic timber supplies competitively priced.

    The Timber Investment Blog is sponsored by Greenwood Management. For more information on investing in Forestry please click here

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