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Independent Review of Planted Forest Investment Opportunities


BRUSSELS, Feb. 28, 2012 /PRNewswire/ -- Analysis of the most attractive forest resources and timberland investment opportunities in all major timber producing countries across the world, was published today in the new edition of Global Tree Farm Economics Review.  Produced by RISI, the leading information provider for the global forest products industry, the report benchmarks investment costs and returns for a wide cross-section of potential plantation forest projects.  It also analyzes major economic, geographic and political factors in each country that could impact returns for tree farm investors.

China's imports of logs, lumber, woodchips and pulp hit record levels in 2011, when its timber supply deficit surged more than 30% to an estimated 152 million m(3). Similarly, demand for timber in other wood deficit countries (like India) is also on the rise. While some countries clamber for wood resources, concerns about deforestation have caused an increasing share of the world's native forests to be set aside for conservation.

These global trends are increasing the market's dependence on man-made forest plantations (tree farms). Not surprisingly, an increasing number of players in the timber industry are interested in developing tree farms – often in new regions and with relatively unproven species. This type of investment requires analysis that incorporates political and economic factors as well as direct costs and biological growth rates.

By combining country attractiveness with expected financial returns, Global Tree Farm Economics Review identifies those countries with the best long-term potential for forest plantation investment and industry development.

"The study is a very useful reference tool to evaluate not just forest investments, but also to identify where investment is occurring, where it is likely to expand (based on which countries/species offer the best financial returns), and thus where wood fiber supply will be available in the future.  The Review is specific enough to be useful, but broad enough to cover the very wide range of geographic and product variations in type of timber investment projects," explains Robert Flynn, Director of International Timber at RISI and Study co-author.

Global Tree Farm Economics includes:

  • Country Profiles with an overview of native forest and plantation forest resources in more than 60 countries.
  • 104 case studies with detailed data on growing costs, wood yields, harvesting costs and stumpage costs, based on 30 species in 35 countries.
  • Timberland Investment Attractiveness Rankings for 51 countries, including 7 international benchmarks on political and economic factors and tree-farm specific factors.
  • A comprehensive database of forest ownership, with more than 730 entries of ownership in 2011, organized by company in 61 countries.
  • Timberland investment challenges and risks in each major timber producing country in the world.
  • Expected long-term growing costs for pulpwood and for sawlogs in different regions.

For more information about Global Tree Farm Economics Review visit www.risi.com/globaltreefarm

About RISI (www.risi.com)

Owned by UBM plc, which is listed on the London Stock Exchange, RISI is the leading information provider for the global forest products industry. The company works with clients in the pulp and paper, wood products, timber, biomass, tissue, nonwovens, printing and publishing industries to help them make better decisions.

Headquartered in Boston, MA, RISI operates additional offices throughout North and South America, Europe and Asia.

About UBM plc (www.ubm.com)

UBM plc is a leading global company. We inform markets and bring the world's buyers and sellers together at events, online, in print and provide them with the information they need to do business successfully. We focus on serving professional commercial communities, from doctors to game developers, from journalists to jewellery traders, from farmers to pharmacists around the world. Our 6,000 staff in more than 30 countries are organised into specialist teams that serve these communities, helping them to do business and their markets to work effectively and efficiently.

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