Page 14 - FDMASIA JanFeb 2024

12 Market Beats Jan/Feb 2024 FDM AsiA | www.fdmasia.com

Dynamics Of Forest Industry listed for sale and Scotland enjoying a 91 percent market

share. However, the number of listings fell 39 percent to just
UK forestry values fall in increasingly cautious market 35 properties.
Commercial forestry values fell for the frst time in almost a “This continues the £200 million observed market size trend
decade with a 10 percent-20 percent drop in the past year, into a fourth year,” said Xander Mahony, head of a company
according to a new industry report launched in London. of forestry investment. “The headline number however, is

The report said: “Compared to the rampaging run of boosted by two huge assets and fatters a market that was
forestry as an asset class over the last 17 years, the lagging otherwise unusually small.”
effect of economic turmoil from the mini budget, the war in In Scotland, average prices for planting land suitable for
Ukraine, and rising interest rates have softened market activity commercial forestry dropped 22 percent from £12,800 per gross
across the board in both afforestation and commercial/amenity hectare to £9,900 per gross hectare “in the most signifcant
woodlands.” development across all forest market data this year”. England
While highlighting the enduring ‘resilience’ of UK forestry, and Wales fared better, increasing 42 percent to £16,600 per
the continuing emergence of new investors and confdence gross hectare and £13,400 per gross hectare respectively.
in the long-term future of timber underpinned by the need It was hoped, according to the report, that a “normalisation

to replace plastic, steel and concrete with sustainable forest in commercial planting land prices in Scotland would spur
products, the report found that supply tightened, prices much needed woodland creation, both commercial and native”
dropped and buyers became increasingly selective in 2022. going forward.
Additionally, demand for timber slowed sharply in the short- Just 13,000 hectares of trees were planted this year, a
term leading to a dramatic reduction in processing volumes. drop of 7 percent and 43 percent of the national target of
2023 saw £212 million of commercial forestry listings 30,000 hectares. While Scotland continued to lead the charge
on the open market, up nine percent, with two properties with 8,200 hectares planted – more than two-thirds of which

accounting for an “extraordinary” 70 percent of the total value were conifers – this was a 27 percent drop from 10,400ha

European Wilderness Society