The floowing figure show the impact of overseas forestry projects on the UK forestry industry with Costa Rica, Panama and the Americas in general providing cheaper product to the timber buying universe.
This tells me that the clever money is in off-shore forestry investments.
IPD UK Forestry Index
Results to end December 2008
In 2008, the average total return on investments in forestry was 7.0%.This was significantly lower than the record levels seen in 2006 and 2007.
Timber prices fell 28.5% in the year to March 2009 – the biggest y/y fall in the last decade and this has clearly taken its toll on forestry investments.
By the end of 2008 the 144 forests in the index had a total capital value of £121.9m
2008 7.0 %
3 years 19.3 %
5 years 16.2 %
16 years 5.2 %