Timberland (and agri-land) investment and co-investment challenge
Investor time horizons: From five minutes to >500 years
Country risk profiles and Institutional investment considerations
International valuation techniques: From developed to frontier countries
Country Opportunities: UK, USA, Baltic Countries and Russia
Country Opportunities: Asia, China specific and Myanmar specific
Country Opportunities: Brazil and Other Latin & Central America
Country Opportunities: Oceania (Australia and New Zealand)
Country Opportunities: Oceania (Australia and New Zealand) and Africa
Wood product demand trends: Pulp, solidwood and biomass-wood pellets
A10 person: New Project - New Investor - New Opportunities PanelSpeakers:
A total of 30 speakers/panellists are confirmed,
including 9 from United Kingdom; and 21 who are flying
in from overseas (5 from USA, 3
from Germany, 2 from Canada, 2 from Brazil, 2 from Finland, and 1 each from
Denmark, Estonia, Russia, New Zealand, Australia, Myanmar and Malaysia. It must
be a “first” to have so many international specialists confirmed to speak,
which cements the DANA meeting as the premiere timberland investment Conference
in Europe in 2014.
The two day Conference will be launched by a Keynote speech by a major United
Kingdom institutional investor, followed by another three high profile speakers
on general global investment topics. These include:
Magnus Weikert, Director
of Business Development, International Woodland Company (IWC), Denmark will
present on: Private Timberland: Institutional
Investment Considerations. IWC is well respected within Europe and
internationally about its detailed knowledge of direct investors, fund managers
and timberland investment opportunities as they are identified around the
Investment Manager, UK Pension Protection Fund who will present on: Challenges of Investing into Timberland and
Co-investment. The PPF is now well into its timberland investment
programme, and indeed was recently reported to be seeking additional
investments. Traditionally UK Pension Funds have been slow to the plate in
looking at an international portfolio and PPF probably leads this development
within the UK at least and is a leader Europe wide
Bret Vicary, Vice
President Forestry & Natural Resource Consulting, Sewell, USA will present
on: Trends in International Global Timberland
Valuation Techniques: From developed to frontier countries. Sewell
has become recognised as one of the very few specialised timberland appraisal
(valuation) firms which undertake assignments on most continents
Neil Kirton, Managing Director,
Business Intelligence Kroll Advisory Solutions, UK will present on: Assessing Country Risk Profiles When Considering
Timberland Investment in Overseas Countries. Accurately assessing
country risk is one of the most vital parameters for any timberland investor or
company advising on timberland investment. The initial qualitative assessment
of country risk by even people in the business may result in investors
underestimating risk and putting their money where they shouldn’t or
over-estimating risk and denying themselves good opportunities. Neil’s
presentation will be well received.
We will profile other speakers who will be
presenting during the rest of the Conference in later newsletters.
DANA will endeavour to connect funders who have the
funds to invest in timberlands with fund and project managers who are seeking
funding. A representative from any UK Pension Fund is invited to the Conference
without charge, and the connection work undertaken by DANA is complimentary. For
more details please contact Conference Administrator, Pam Richards at firstname.lastname@example.org
To those readers who have
already registered for this conference, thank you for your support. To other
readers, we strongly encourage you to register; and indeed to bring along some
of your team.
There are generous multiple registration fee discounts available: To see all details of
the program, speakers, venue, registration, sponsorship and newsletters, please
click here for details.
Please do not hesitate to contact Conference Administrator, Pam Richards in Melbourne - email@example.com to discuss any aspects of this conference.
Immediately preceding the conference, there will be a
field trip centred on Lockerbie in Southern Scotland. Field trip delegates will
make their own way to Lockerbie on Saturday afternoon/early evening on October
4. On Sunday October 5 delegates will make a short visit to the Pan Am Memorial
Gardens in Lockerbie, and then will visit forest plantations in Eskdalemuir
Forest, one of the largest plantation forests in the United Kingdom. The host
for this field trip will be the Forest Manager of the nearby Duke of Buccleuch
Then, on Monday October 6, delegates will visit a major wood processing complex near
Lockerbie, which includes the James Jones Sawmill, one of the largest and most
modern in Europe; and the E.ON Wood Biomass Power Station on the same site. In
the afternoon, delegates will make their own way (probably by train) back to London to arrive early on Monday evening.
Conference organisers will be leaving at around 2.00 pm — To register for the
field trip, please click here Eskdalemuir
Forest - field trip visit on 5 October
Lockerbie Sawmill - field trip visit on 6 October
Fired Power Station - field trip visit on 6 October
| DANA LIMITED | PO Box 392, Rotorua, New Zealand
Intelligent Boom Control (IBC) is
now offered as an option on all of John Deere’s 1110E Forwarders. This
technological breakthrough significantly increases forwarder productivity and
efficiency, while providing best possible fuel economy and boom lifetime.
Intelligent Boom Control
has been praised for its ability to operate the boom with more precision,
making it easier for the operator, and easier on the equipment as well. Using
the IBC system, the operator controls the boom tip directly instead of
controlling each of the independent boom joint movements manually. This makes
boom operation accurate, fast and easy. By eliminating extra movements, this
system also increases the durability of boom structures and hydraulic
cylinders. These features significantly improve an operator’s working speed,
resulting in higher overall productivity and lower costs.
The IBC system can also
accelerate the learning curve for operators. Intuitive and easy to learn to
use, the technology reduces the amount of time it takes to become a skilled
operator, resulting in less training time.
John Deere’s 1110E
Forwarder with the IBC option is now available in North America. IBC is also
offered as an option on all of John Deere’s 1210E and 1510E Forwarders.
For more information, visit www.JohnDeere.com.
The value of the Finnish forest industry exports was up 1.6% and total production increased
slightly from the corresponding period of 2013. European economic uncertainty
is having an impact on the market for forest industry products. Every effort
must be made to ensure the competitiveness of the export sector in order to
protect employment and prosperity, as Finnish Forest Industries Federation
The industry is seeking fresh growth from the bioeconomy. The major investments, which have a
total value of some Euro 1.5 billion, the forest industry is planning in Finland are
demonstrations of this trend.
“Forest industry investments should be spurred with competitiveness-enhancing legislation and
forward-looking industrial policies. All additional burdens imposed on the
industry erode competitiveness when uncertainty is the prevailing sentiment on
the markets and in the economy as whole. Taxes and red tape that target
businesses must be kept in check while sufficient incentives for investments
are put in place,” Director General Timo Jaatinen of the FFIF emphasises.
“Investments in, among other things, provincial transport routes are absolutely necessary to
ensure the steady flow of timber. Sector-specific, competitiveness-enhancing
modernisations that correspond with the goals of the Pact for Employment and
Growth must also be implemented in the labour market,” Jaatinen says.
In July 2014, wood product exports (except pulp and paper) fromBrazil increased 12.2% in
terms of value compared to July 2013, from $204 million to $228.9 million, ITTO
Pine sawnwood exports increased 43.4% in value in July 2014 compared to July 2013, from
$14.5 million to $20.8 million. In terms of volume, exports rose 37.6%, from
64,400 cubic metres to 88,600 cubic metres inthe same period.
Tropical sawnwood exports increased 9.2% to 27,300 cubic metres in July 2014 compared to
the 25,000 cubic metres exported in July 2013. In terms of value July 2014
exports increased 2.8% year on year.
Pine plywood exports also improved in July rising 45.3% in value compared to levels in July
2013 ($24.5 million to $35.6 million). The volume of pine plywood exports also
increased from 66,400 cubic metres in July last year to 96,000 cubic metres. On
the other hand tropical plywood exports fell 2.6% in volume, from 3,900 cubic
metres in July 2013 to 3,800 cubic metres in July 2014.
Wooden furniture exports increased slightly from the $41 million in July 2013 to $41.8
million in July this year.
North American OSB (oriented strand board) producers anticipated a good year for panel sales, due to the widely predicted robust recovery in housing starts. However, while new construction figures showed a marked improvement in July, the market continues to languish below levels anticipated to handle the amount of OSB capacity restarted from last year.
Industry sources say that, at current online production levels, OSB producers are geared to about 1.3 million starts-some 19% higher than July’s 1.09 million unit level. As a result, there is zero urgency in the marketplace, according to RISI’s Crow’s Weekly Market Report.
As it stands, customers all along the supply chain are buying only what they need, and OSB pricing currently has little to no upside. Mills, however, are firm on pricing, unwilling to go below break-even levels as they did in the early days of the housing crash.
The stalemate, industry players will tell you, could be broken by significant market-related downtime. But outside maintenance shuts or fiber-related interruptions, no major producer has pulled the plug. And so the market remains oversupplied.
In the most recent issue of Crow’s, we noted, “Distributors hoping to see significant concessions in OSB pricing this week were somewhat disappointed by still-tight trading ranges, which have defined the market’s nature for a couple months now.
“Another common thread, sources wonder when significant downtime will be instituted. The rumor mill indicates nothing soon. ‘It’s hanging in there like a hair in a biscuit,’ one Southern US buyer remarked. Said a Canadian contact, ‘They need to take downtime. There’s no money in OSB now.’”
When improved US housing starts figures came out last week, industry players braced for a little activity, but the great quiet remained. “There was some optimism and nothing transpired,” a Western US source said.
Veteran distributors agree that OSB will continue trading in tight ranges through the end of the year. Each passing week marks fresh hope that things will turn around the following week-and now traders speculate that activity could pick up after Labor Day and mark the beginning of a strong fall construction season.
Raw wood use improves. According to RISI’s International Woodfiber Report, for the first half of 2014, OSB mills in the US and Canada used 17.1 million green tons of pulp-grade roundwood compared to first half 2013 levels of 15.8 million tons (an 8.2% increase). Based on current average roundwood values, first half 2014 consumption was worth about $616 million to North American suppliers, a 12% increase from the same period last year, delivered to consuming mill.
APA - The Engineered Wood Association reported OSB production across US and Canadian mills totaled 5.05 BSF (3/8″ basis) during the second quarter compared to 4.65 BSF in the same quarter last year. US mills produced 3.32 BSF while Canadian locations manufactured 1.73 BSF during the period.
US OSB mills used about 5.8 million tons of wood during the second quarter, according to IWR estimates, up from 5.3 million tons a year ago. Broken down, the US South used 4.7 million tons and the US North used 1.1 million tons. Canadian OSB producers consumed an estimated 3.0 million tons of wood during the period, up from 2.8 million tons during the second quarter of 2013.
APA said the sheathing products saw the greatest production increase quarter-over-quarter, growing 9.7%.
Better later? RISI economist David Fortin noted that OSB enjoyed a stronger second quarter, even though housing didn’t measure up. Further, he predicts the year will end with OSB consumption missing predictions by only 1.5%.
In RISI’s Structural Panel Commentary, Fortin said, “The growth rate for OSB consumption slowed in the first quarter of 2014, to a year-over-year rate of 3.7%, but consumption rose 6.1% in the second quarter and will increase an estimated 10.7% in the third quarter.
“OSB consumption will accelerate through 2014 and into 2015 as the US housing market strengthens, and will finish the year up 8.6% to 17.5 BSF, a modest deceleration from the 10.1% increase expected for 2014. Consumption is still forecast to post a strong 2015, as it rises 20%, the fastest rate of growth in at least the last decade.”