Meeting global demand for wood products while maintaining awareness for environmental and social services, is the continuing challenge and driving force behind our forest sector managers.
Finding an acceptable balance between production and protection, use and conservation, drives much of the debate. Plantations are established primarily for the production of timber. These tree crops usually contain a single tree species that has been selected for fast growth and timber quality.
Driven by increased world demand for timber, opportunities to invest in timber plantations are expanding . Plantations are better-established and produce better quality wood products than ever before. The consequence is a reduced demand for timber sourced from native forests.
The plantation industry, especially in Radiata Pine, is well established and well structured, quality is a primary criteria and established plantations supply timber for pulp, sawlog or veneer. The higher quality product attracts premium prices.
Market opportunities for both domestic and export timber exist. An investment in RuralAus Investments Limited will provide flexibility and diversification by utilising the potential in diverse market opportunities, including pulpwood, sawlogs and log exports as well as other specialised timber products.
New opportunities continue to evolve. China's demand for wood to make paper continues to escalate. The use of forests as 'carbon sinks' planted to offest carbon emissions is primary example, and may provide a new market in Carbon Credits for future Growers. Renewable energy power and pellet plants, value added sawn dried lumber and demand for export log markets have significantly increased. RuralAus owned softwood plantations will be in high demand to satisfy these opportunities.
