Greenwood Management has enthusiastically welcomed a report from PricewaterhouseCoopers (PwC) indicating that demand for wood fiber is set to increase substantially over the coming decade.
Greenwood Management offers institutions and individuals the chance to invest in existing sustainable forestry plantations in Brazil, while using the cash to help expand and grow their business. The company specializes in non-native crops such as teak and eucalyptus, which have proved popular alternatives to native timbers, the use of which is being strongly discouraged by the Brazilian government in an attempt to protect native forests.
Bruce McIntyre of PwC indicates that China is expected to head-up the growing demand for wood fiber, while demand will also be strong from the European Union, where moves to increase the use of woody biomass are well underway. PwC’s report showed that the EU alone is expected to use around 420 million cubic meters of woody biomass each year from 2020, leaving a current production deficit of as much as 260 million cubic meters, which is likely to drive up prices.
McIntyre explained that wood fiber is set to become a sought-after commodity for many industries. “Companies from a diverse array of industries—energy, utilities, chemicals and potentially many more as biomaterials evolve—will compete with FPP companies for control of forests, or at least access to their fiber, and the best economic use of the resources they provide,” he comments.
“Growth in the biomass industry will drive the need for more and more wood fiber, which in turn could lead to soaring prices in the industry. Investing in sustainable forestry products at the beginning of this boom is a wise move for those who wish to home in on an opportunity for an ethical and profitable investment strategy,” says a spokesperson for Greenwood.