Copenhagen, Denmark, May 07, 2011 --(PR.com
)-- A new report from PricewaterhouseCoopers (PwC) showing that demand for wood fibre is set to increase over the coming decade, has been enthusiastically welcomed by Greenwood Management
PwC’s Canadian forestry head, Bruce McIntyre, explained that wood fibre is set to become a sought-after commodity for many industries. He stated, "Companies from a diverse array of industries — energy, utilities, chemicals and potentially many more as biomaterials evolve — will compete with FPP companies for control of forests, or at least access to their fibre, and the best economic use of the resources they provide."
A spokesperson for Greenwood Management added, "This is really great news for the forestry investment industry as it indicates that the market for timber products will remain healthy in the years to come.
"Returns on investment in forestry, particularly in emerging markets such as Brazil, have exceeded those from equities in recent years and PwC’s report shows that further growth is likely," added the spokesperson.
Greenwood Management offers institutions and individuals the chance to invest in existing sustainable forestry plantations in Brazil, while using the cash to help expand and grow their business. The company specializes in non-native crops such as teak and eucalyptus, which have proved popular alternatives to native timbers - the use of which is being strongly discouraged by the Brazilian government in an attempt to protect native forests.
Mr McIntyre of PwC added that China is expected to head-up the growing demand for wood fibre, while demand will also be strong from the European Union where moves to increase the use of woody biomass are well underway. The biomass industry is set to grow over the coming decade, leading to demand for wood fibre exceeding supply, according to Mr McIntyre. PwC's report showed that the EU alone is expected to use around 420 million cubic meters of woody biomass each year from 2020, leaving a current production deficit of as much as 260 million cubic meters, which is likely to drive up prices.
"Growth in the biomass industry will drive the need for more and more wood fibre, which in turn could lead to soaring prices in the industry. Investing in sustainable forestry products at the beginning of this boom is a wise move for those who wish to home in on an opportunity for an ethical and profitable investment strategy," added Greenwood’s spokesperson.