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UK - Forestry investment sees growth
According to the latest Forest Market Report from UPM Tilhill and Savills, investment in woodland and forests has seen a strong growth trend, despite the recent downtown in the economy.

The statistics from the report indicate:

Average plantation prices have increased 82% in the last five years with 126% growth since 2002
In 2009, the overall market almost doubled in size to £48.2 million
Forestry Commission sales account for 37% of the annual value traded
Sales in England doubled to 23% of the annual market value.

The report indicates that 88 forests were bought in 2009 compared to only 50 in 2008. And the area sold improved to 14,600 hectares, which is more than twice the number of hectares traded in 2008. Furthermore, the average property sizes have also increased to 166 ha (20% up on last year).

The report continues with improvements in values per hectare in 2009 in the 25-50 ha category maintaining its exceptional value at almost £6,000 per ha, 6% up on 2008 and 40% up on 2007.

The general economic slowdown has depressed timber prices and squeezed all sectors of the market, especially construction timber for new-build housing where demand has dramatically decreased due to the recession. However, favourable exchange rates have helped keep domestic timber supplies competitive.

Source: Forest Market Report 2009, UPM Tilhill and Savills

Dec 2009


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