IFI -
International Forestry Investments
3345 S W Long Ave, Corvallis, Oregon 97333 U.S.A.
Ph: (541) 757-6540, Fax: (541) 754-0507
E-mail:ifi1@comcast.net
Lands for Forestry
Plantations
Fast growth,
short rotation forest plantations, often with exotic (non-native
to the area established) can offer very attractive potential
returns, and with the expanding knowledge base and experience,
reasonably predictable future results. Rotation length for these
projects range from 10 to 30 years. These projects normally
involve the purchase of low productive farmlands, often erodible
lands better suited for forestry projects both for financial and
environmental reasons. As in any international investment, there
is a host of factors that govern the suitability of a project.
The comfort level of future market prices for different products,
stability of a country economically and politically, the current
level of development of industry and infrastructure - including
current and expected markets for a particular species of trees or
product type, certainty and quality of management services for
the short and long term, language difficulties, cultural
differences, etc. As a result, some investors often choose to
invest with lower expected rate of return where there is a
feeling of lower risk.
IFI has an ongoing process of
identifying and evaluating potential plantation investment. The
criteria used for making plantation recommendations are as
follows:
- Stability of economic investment environment.
- Availability of dependable local professional management.
- Good availability of suitable, affordably priced lands.
- Established plantation base that provides or should soon
provide a 'critical mass' of growing wood fiber and
investment by diverse private investors.
- Development of markets, including distance to export
facilities, existence of local manufacturing.
- Safety and security in land ownership for foreign owners.
- A history of success in the establishment and cultivation
of tree crops to be grown.
- Good science and forest management practices.
- Local availability of labor and materials.
- Supportive laws and regulations for forest production.
- Favorable tax rules.
- Stable political environment.
- General security of investment by foreign owners.
- Projected real rates of return, when made conservatively
based on currently available markets and with no
projected real price increase in wood prices that exceed
10% per year.
As a result
of this type of analysis, IFI is currently offering plantation
projects in New Zealand, Chile, Uruguay and Costa Rica. Refer to
the specific page for more detail on each project area.
Chile
Costa Rica
New Zealand
Uruguay
Note: Most
countries of the world use metric measures, and it is the measure
for international trade. Land is measured in hectares, wood
volume is measure in cubic meters, etc. Conversions have been
made in most cases to provide measures in 'American standards' -
board feet, acres, etc., as well as in metric units. Because of
the vagaries of the board foot tree measure, including the
multitude of different board foot rules, there is no good direct
conversion. Their conversions have to be recognized as being good
fait estimates only.
Bill McKinnie
International Forestry Investments
3345 S W Long Ave, Corvallis, Oregon 97333 U.S.A.
Telephone:(541) 757-6540, Fax: (541) 754-0507
E-mail: ifi1@comcast.net
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