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Lancelot Tucker
Lancelot Tucker
Articles (104) 

The Forestry Industry is Gaining Ground

April 28, 2015

As economies around the world struggle to come to grips with the financial woes facing them, the forestry industry is nevertheless gaining ground amongst consumers. Although wood is not at all environmentally friendly to many people; still, it is worth a great deal to some persons who have long ago seen its value.

As an environmentally friendly commodity to some persons who depend on wood in a number of ways such as to keep them warm during the winter season, for housing purpose and even for cooking purpose as well, wood is playing a great part in helping humankind to survive. The industry is a primitive one and with a number of processes over the years, the niche is becoming more expensive.

However, the management at Billig Briketter, which is a company that sells affordable firewood says, “Quality firewood delivers often two to three times as much heat as the bad, but often cost only 15% to 25% more.”

While timber might be somewhat plentiful in the urban areas, still, in the city one has to transport it in, which makes it become more expensive. To make matters even more complicated, untreated firewood entering a populated city can cause reason for concern and in most places illegal to transport such an item into the area. However, if some intermediaries chose to break the law and transport untreated lumber into the city, then the price might lower.

In a country like Belarus, the forestry industry is gaining ground and is running second only to agriculture. So far, only 2% of timber has shown some level of pollution in certain districts of Belarus. Forest companies in the country has no problem finding suitable timber to keep the nation properly supplied and using the right type of equipment such as handling equipment and not chainsaw can produce better results in regards to efficiency. In Finland, the country depends on forestry to help grow their economy.

Today, committed scientists are trying to find new ways to utilize timber. Recently, it was announced that researches in Maine have found a way to extract fuel from forest and backyard trees. Experts working at Maine recently found a way to create biofuel from wood wastes.

As the world seeks for more fuel to aid humankind, timber is considered by a number of experts to be the ideal source. In addition, as oil prices are increasing around the world, wood is being looked as a major source of value added product by some top government officials and scientists.

In Asia, government and the private sector found it possible to meet in an effort to strengthen the forestry industry, while in the US, timber investors are giving the thumbs up to the economy as the demand for domestic wood increases.

Since the January to March first quarter period of 2015, investors gained a 1.75% in returns and this is said to be the best return since 2008. In 2014 quarter from October to December, there was a seasonal high of 6.0% achieved.

Since 2014 also, the US timber business has grown exponentially. With the economy climbing steadily, property markets find themselves booming because of strong demands for timber to build new houses.

The price of woodchips in the US is on the increase and recent data shows that a modest 3.44% increase took place in the region of Great Lakes. Wood Resources announced that woodchip and logs are now standing at a record high in the first quarter of 2015 in the same region of Great Lakes.

In other places of the US like North West, timber took a dive in sales of just 0.88%, which is the quarter’s lowest return recorded so far. However, overall, US forestry is still growing steadily with many real estate investors purchasing farmlands. Still, while in some regions farmlands sales might be struggling a bit, cropland such as nut and fruit orchards are taking the market and recently ended up with a return of its first quarter outcomes of 3.6%, which is the highest so far in 8 years.

As the forestry industry continues to pull its weight and settle in, investors are hoping to see massive increases happening in the niche. So far, the industry seems to be moving well and key players are not lodging any complaints.

About the author:

Lancelot Tucker
Lancelot Tucker is a freelance writer living in Jamaica. He often writes about finances and other business based articles.

Rating: 5.0/5 (1 vote)

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Comments

mic6
Mic6 - 2 years ago    Report SPAM

Been using the firewood from Billige Briketter for the last 5 years and will have to agree with that statement.. There really is a big difference between the low quality stuff and high quality stuff. I now use about half as much firewood (of good quality) compared to the cheaper products I used to buy.

Lancelot Tucker
Lancelot Tucker - 1 year ago    Report SPAM

Thanks for the comment.

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