Timber prices on the up - but know your market
IFA Farm Forestry Chairman Pat Collins said that there have been price increases across all timber products categories in the last quarter.
Following the publication of IFA’s latest timber price survey, Mr. Collins said that the increase in timber prices reflect the strong demand in the UK and elsewhere in Europe. He said the availability of timber, particularly smaller logs required by the pallet and packaging sector in the UK, was extremely tight at present and is causing serious challenge for processors.
“I would advise any farmer that is planning to harvest to familiarise themselves with the IFA guide to selling timber”, said Mr. Collins, “there is too much at stake to sell your timber without fully understanding the value of your forest and market into which you are selling.
He said that there are real opportunities for farmers to diversify and plant a portion of their land with trees, without impacting their primary enterprise, and create a more sustainable business model.
“The rising demand for wood underpins the positive outlook for forestry investments”, said Mr. Collins.
“Forecasts show an increase through demand-driven inflation as the stock of sustainably harvestable wood comes under pressure from increasing demands from the construction industry as well as high-quality product innovations in the sector.”
Mr. Collins concluded by saying that Ireland’s forests are an increasingly sought after asset class, benefiting from good growth rates, a tax efficient environment and a well-developed wood processing sector.
IFA Timber Price survey is available: https://www.ifa.ie/ timber-prices-july-september