Rising timber price floats the farm forest’s boat
Farmers who have diversified their activities with forestry over the past 20 years are set to reap significant financial gains.
Bucking the trend of wet weather induced losses, this comes on the back of the massive increase in private timber, which Coford has forecast to emanate from farm forests over the next decade.
The Irish economy grew by 7.3% last year, three times faster than the wider euro area, according to new EU Commission estimates; the economic recovery across western Europe has led to a growing demand for sawn timber.
Pallet timber prices have risen for the 19th consecutive month, according to the Markit / CIPS UK Manufacturing PMI February 2018 report.
The growing demand for sawn timber for home construction, combined with the scarce availability of wood on the world market, has led to increasing timber prices.
Upcoming field day
Veon Ltd – Ireland’s leading forestry company – will host a thinning and forest road building field day, in conjunction with the North East Growers’ Group, following a growing number of enquiries from forest owners.
Veon’s field day is most suitable for farmers with plantations over 14 years old, whose forests are moving into the productive stages – initially yielding pulp, stake, pallet and also biomass. The latter is in short supply.
Hugh Cawley, Veon’s director of operations, commented that forest owners should now begin the process of cutting inspection paths so that their forests can be assessed. They can then apply for a felling license, forest road grant and plan for first thinning.
We are holding a thinning and forest road building field day, along with the North East Grower’s Group, in May.
“Forest owners are invited to register with us for further details about the free event, which will be in Drumconrath, Co. Meath. But we will be holding others nationwide also,” he added.
Forest owners should bulk tender their forests so they can avail of economies of scale and secure better prices for their road construction and also for their timber.
Timber processors greatly appreciate the scaling of thinning and harvesting, which is more cost-effective for them. And, consequently, they are willing to pay a premium for the timber they can purchase in bulk categories.
As Ireland’s market leaders in harvesting and thinning, Veon will organise this bulk category system; grouping forest growers activity and timber. It will also ensure that each forest is treated individually and completely separate. In addition, it will also organise individual contracts with each grower.