Compared with other land-based investments, forestry has the advantage of being able to be harvested when market conditions are favourable, rather than at a specific age or season.
If you're considering a forestry investment we can analyse your options and help you make better informed decisions. If you’re a promoter of forestry investments we can help you develop a convincing sales prospectus.
Global demand for wood
Demand for timber continues to grow internationally. A study by international forestry consultants Groome-Poyry Limited predicts that net imports of softwood products to the Asia-Pacific region, excluding New Zealand, will increase from 80 million cubic metres per year to over 130 million cubic metres per year. This represents a growth in import demand of 60%. The highest forecast demand is forecast for sawn timber and softwood logs.
While demand increases, traditional supplies are drying up due to depletion of natural resources and stricter environmental controls. Between 11 million and 20 million hectares of indigenous forest is being felled every year, and there is increasing pressure to preserve remaining natural forests.
New Zealand well placed to meet demand
The versatility of radiata pine as a building product is becoming increasingly recognised internationally. Recent studies carried out by the New Zealand Forest Research Institute in conjunction with overseas research organisations (including University of California, Berkeley) compared the machining properties of New Zealand grown radiata pine with major timbers used in Europe and North America. Over the 25 tests in the study, New Zealand radiata pine scored highest.
New Zealand forestry facts
- Total forestry exports exceed NZ$3 billion annually.
- Currently only 5% of global timber supply comes from sustainably managed plantation forests.
- Timber from non-sustainable native forests is becoming increasingly scarce.
Long-term plantation forestry will have to provide the bulk of global timber supply.
- 90% of New Zealand's 1.7 million hectares of sustainably managed, renewable plantation forest is planted in Radiata, or New Zealand pine.
- In New Zealand it takes 25 to 30 years for Radiata Pine to reach maturity. In most other countries it would take between 60 and 300 years.
- Radiata pine has a wide variety of end uses, such as timber, pulp, plywood and panel products and high quality furniture.
Carbon forestry investment
We can help you understand the scheme and realise the full earning potential of the forests you own, manage or invest in. Read more
Redwoods grow faster in New Zealand than in California
Redwoods thrive in the New Zealand soil and climate, growing faster here than they do in California. This makes them a species with great potential for New Zealand, their huge size and enormous carbon benefits further adding to their value.
New Zealand offers greater flexibility around establishing, managing and harvesting forests. Many consider New Zealand to be the single, most significant alternative growing location for Redwoods in the world.