Why Invest in Forestry



An investment opportunity occurs when rising demand for a commodity is matched by a falling supply. This is the world position for timber. Demand is increasing steadily along population and GDP growth. Most of the timber presently being harvested is from natural forests. The available supply is diminishing because of exploitation, economic and environmental pressures.

Plantation forests are an alternative, sustainable source of high quality timber. Plantations currently supply only 4% of the world’s timber needs. The bulk of wood comes from “old growth forests” which take 60 to 300 years to mature. These forests are being felled at a rate equivalent to the size of a football field every second.

We are rapidly approaching a situation where global timber demand will exceed the available supply. From the current level of 5.8 billion, the world’s population will exceed 8 billion by 2020- an extra 2.2 billion humans to clothe, feed and house. The present global timber harvest of 3.5 billion m3 per annum is expected to soar to 5.95 billion m3 per annum by 2020 - an increase of 2.45 billion m3  in less than 25 years.

The next facet of a good opportunity is in locating an ideal source of the commodity. While trees will grow in many places New Zealand’s combination of fertile soils and unique climate enable us to grow Radiata pine faster and better than anywhere in the world. Radiata pine, a Californian native, thrives in New Zealand conditions. Since the first plantings in the 1850’s Radiata has established itself as a major export earner. It is the mainstay of an industry predicted to make a significant contriubution to the New Zeland economy by the year 2020. In 2002 New Zealand earned $3.6 billion from forest product exports making it the countries third largest export earner.

New Zealand is well positioned to substitute radiata for dwindling supplies of hardwood and North American softwood.

In the medium and long term, diminishing supplies from natural forests and an increase in demand for products made from wood is likely to result in higher prices. This situation provides excellent prospects for plantation grown timber.

Market prospects for New Zealand radiata are very positive. Radiata can be efficiently grown in plantations. New Zealand grown radiata pine matures in just 25-30 years. After a century of research New Zealand has become the world leader in plantation forestry. New Zealand forest management, tending practices, processing technology and genetic improvements are second to none.

There are still opportunities to further improve our skills at growing radiata pine, but the level of knowledge, skills and technology already available give New Zealand forest growers and investors alike a considerable advantage for some time to come.

New Zealand forestry offers excellent opportunities for local and international investors to protect their capital whilst gaining significant returns.

New Zealand plantation grown wood is seen as a renewable resource grown for export and domestic consumption, which allows us to manage most of our remaining natural forests for other purposes. The Resource Management Act provides a framework for the protection of water and soil values and an assurance that the commercial, environmental and socio-economic interests are suitably balanced. This in turn provides an excellent basis for eco-labelling and environmental management certification, which are likely to be required by some of our future customers.

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Why Wood is Good


 

 

New Zealand's Advantage


Plantation forestry in NZ is well established. While development and research is constant, the accomplishments to date in relation to the main commercial species, radiata pine, are:

  • Superior tree growth;
  • Highly developed tree breeding; and
  • Efficient plantation management.

Easy to use Radiata pine is a very resourceful softwood. With low expenses making it cost effective and very adaptable.

New Zealand supplies supportive non-intervention government policies, skilled labour, excellent growth rates, and a well developed industry infrastructure.

 

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Forestry Investment

With the world population increasing at an alarming rate, global demand for timber products is also increasing. However the global supply of millable timber is falling. Investing in New Zealand forestry is a secure and sustainable way to grow your wealth.
New Zealand’s competitive advantage is we have some of the world’s fastest growth rates with forests growing 750 tonnes of harvestable logs per hectare in just 26 years.
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About Us

Roger Dickie New Zealand Limited specialises in finding, securing and developing the best farm and forest opportunities on behalf of investors and overseas clients.
Our role is to act as independent agent for our clients, we find them the best farms and forest properties that are available and provide management and administration services. All investments are backed by the security of land ownership.
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Contact

Email: invest@rogerdickie.co.nz

New Zealand: 0800 FOREST (0800 367 378)
or +64 6 3465 329

USA/Canada: 1877 330 3079

UK: 0800 0809 12628

Skype: WDICKIE

Farm Investment

Blessed with the ideal climate, New Zealand is perfect for pastoral farming, growing healthy livestock for the production of dairy products and meat.
New Zealand farmers are among the most efficient in the world and there are no Government subsidies for agriculture. Our grass based animal production systems, combined with the use of world leading technology, minimises labour inputs and generates maximum productivity.
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