THE GLOBAL FORESTRY MARKET

Global demand for hardwood has itself multiplied 25 times in the last 40 years, and with population growth rates higher than ever this trend looks likely to continue. With less than 13% of the world’s surface covered in forests, and concerns over global warming, there is now a global crackdown on illegal logging and deforestation. Supply is being severely restricted and these two factors combined should continue to drive legal timber prices higher in the years to come.

Given the recent volatility in global stock markets, investors are increasingly looking towards commodities for security. Hardwood forestry offers the ideal diversification away from real estate and equities, providing a non-volatile market with high long-term returns on investment, and a low risk-to-return ratio. Added to this our trees are already 20 years old, with professional on-site management, further reducing the risk profile.

“If you don’t feel comfortable owning something for ten years, then don’t own it for ten minutes.”

Warren Buffet