Queensland Call For Forestry Investment Backed By FRA

Online, October 16, 2011 (Newswire.com) - The timber industry in Queensland, Australia is looking for investment to help establish plantations in the region and has gained the support of Forestry Research Associates (FRA).

FRA, a research and analysis consultancy that supports forestry investments and sustainable forestry practices said it hopes that investors see the potential of the plans.

The industry in the region fears that without the additional plantations there could be a major shortfall between the timber produced and the demand. The CEO of Timber Queensland, Rod McInnes, explained that 100,000 hectares of tree plantations is needed to help boost timber supplies. He said that investment is badly needed and those interested are attending a forum taking place in Queensland this week. He said, "Those investors are from life insurance companies, superannuation funds, church groups who want long-term ethical investment."

FRA's analysis partner, Peter Collins, said that forestry investment is popular among those looking for a long-term investment that could provide them with a pension fund once they retire. However, with an increasing number of forestry investment products offering shorter-term investments, sometimes as short as 5-8 years in the case of Greenwood Management, for example, more investors are considering forestry as a valid asset class for the first time.

He said, "For ethical investors, forestry has become an obvious choice as it tends to outperform the stock market in terms of return on investment and can also help to reduce risk within an investment portfolio, which is attractive during these unstable economic times."

Mr McInnes added that investment is essential and will allow the forestry industry to continue to thrive. He explained, "What we believe we should be able to do is to maintain a competitive and vibrant forestry here, keeping 20,000 people or more employed, and growing that timber and processing that timber for use in Queensland."