THE FINAL PRODUCT

Ethical Forestry harvests your trees, sells them on your behalf and sends you the proceeds

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Throughout your investment, the regular thinning harvests and final harvest produces valuable timber, which is sold on behalf of investors and the proceeds sent to them.

Timber is a valuable commodity and like all commodities 
(such as oil and gas) is constantly in demand. According to the United Nations, the demand for timber is projected to double by the mid part of this century. Basic economics tells us that this growing demand and diminishing supply chain will inevitably have a positive effect on timber prices.

Forestry has been the only asset class in existence that has risen in three out of the four market collapses of the 20th century, during which, it actually rose in value in three of them.

With the rapid development of countries such as China, India and Russia, this trend is set to continue. For example: China’s demand for wood is forecast to rise roughly in line with the global population, implying a 55.88% (UN) increase by 2050.

Funded primarily by the World Bank, China is planning to build up to 50,000 new skyscrapers and twenty new mega-cities the size of New York, all to help house the projected urban population explosion from 572 million to 1 billion by 2025. 

All of these projects will require vast amounts of timber, which is positive news for investors. The WWF (World Wildlife Fund) reports that India is likely to face a severe shortage of timber supply to meet its requirement both domestically and internationally. This shortfall of 95 million cubic metres will need to be met by imported timber.

According to the EU Member States, 40% of timber used in the EU is from illegal timber felling operations. The EU's Forest Law Enforcement, Governance and Trade (FLEGT) is firmly focused on stopping illegal imports by implementing trade agreements. The implementation of these agreements creates a void within the market place adding pressure to the supply chain, pushing prices up.

Sustainable plantations such as ours will be drawn upon to help fill this supply gap in the market. More good news for sustainable forestry investors.