A growing Investment

 

The key feature of forestry investment is tree growth. Although slow, it is constant regardless of economic conditions, which in turn provides non-volatile capital growth.

Nursery plants

But achieving the highest capital growth involves more than fast growing trees. Timber quality has the greatest bearing on end log and asset value. This means active professional management throughout the life of the crop by thinning to remove poor quality trees to focus space and growth on the highest value stems. As the average tree size increases so does its log content and value

 

Timber Prices

 

As Ireland imports around 60% of its timber needs, timber imports benchmark our domestic timber prices. This in turn determines the prices that Irish sawmills and panelboard mills will pay forest owners for their logs.

The basis of commercial woodland valuation is in present and future timber prices. Log prices have historically averaged 1% above inflation.

To help further optimise timber revenue IForUT is able to time log sales to coincide with any log price fluctuation.