WWF - GFTN Newsletter - January 2013

WWF - GFTN Newsletter - January 2013

www.silvinvest.co.uk

Countdown to the EU Timber Regulation: What you need to know
Starting 3 March 2013, placing timber from illegally harvested forests and products derived from such timber will be prohibited in the European Union. WWF/GFTN explains what the regulation is, who it impacts and guidance on how compliance might be achieved in the long term. 

Voluntary Partnership Agreements: EU's work with producing countries
The European Union is negotiating a series of bilateral, Voluntary Partnership Agreements (VPA) with key timber producing countries. We explain what VPAs are and which countries are in talks with the EU. 

Suppliers face bigger onus to verify legality as EUTR takes force
The new regulation doesn't just affect operators and suppliers in the EU. It also has serious implications for companies supplying to Europe. 

PAS 2021: providing guidance to promote legal forest trade
GFTN-UK, in conjunction with the British Standards Institution (BSI), has developed new guidance to help the timber industry meet the impending EU Timber Regulation. The new guidance, known as PAS 2021 – Exercising due diligence in establishing the legal origin of timber and timber products – Guide to Regulation (EU 995/2010), is a good practice guidance to support industry efforts in the responsible sourcing of forest goods and sustainable forest management.

Changing attitudes in the EU on effective timber regulation
The EU Timber Regulation gives new responsibilities and trust to operators when it comes to due diligence. But the new regulation is just the first step in a journey towards responsible forest management and trade. 

Global trends in timber legality
Recently, several countries have instituted new legislation to combat illegally harvested and traded timber products entering their countries. 

Australia latest to tackle illegal logging
In December 2012, the Australian Parliament enacted historic legislation that criminalises the import or processing of forest products from illegal sources. Passage of the Illegal Logging Prohibition Act places Australia alongside the US, EU and other importers in the global effort to reduce pressure on critical forest habitats, protect community livelihoods, and level the playing field for legitimate business.

New legislation bolsters impact of the US Lacey Act 
The Lacey Act has proven itself as a low cost, high impact programme, strengthening the market for US-based companies, increasing the demand for legally sourced timber, and disincentivizing irresponsible practices on the ground.

Interview with Anders Hildeman, Global Forestry Manager, IKEA
IKEA’s Anders Hildeman discusses what the company has done to prepare for the EU Timber Regulation, and the challenges and opportunities surrounding this new legislation. 

Interview with Koh Ee Lin, General Manager, PT. Seng Fong Moulding Perkasa
PT. Seng Fong Moulding Perkasa (SFMP), a subsidiary of Singapore-based SF Resources Group, is the largest timber flooring manufacturer in East Java, Indonesia, and exports more than 18,000 m3 of wood products annually, including to Europe and Australia. SFMP’s General Manager Koh Ee Lin discusses what the company is doing to prepare for the EU Timber Regulation.

Paulownia Tree farming Business

Paulownia tree farming business



Paulownia Plantation




1.The location

The investment is located in Bulgaria in the city of Ruse. The country 

is a EU member since 2007. Ruse is a key commercial port on the Danube
river and allows easy and cheap transport of goods by boat to the
heart of Europe.

2.The land.

Most Forestry Investments work on a  structure Land Lease contract,

however this Paulownia Investment is one of the few in the business
that sell the land itself as FREEHOLD. This  gives more security to
the Investor with the benefit of potential land  value increases
being considered for asset appreciation

3.The trees.

The trees planted are Paulownia Tomentosa. They grow very well in the

Bulgarian climate. The plantation management company work with
forecast data - expected growth, speed of growth and volume of
harvested timber from a tree. The Paulownia tree species was imported
into Bulgaria about 20 years ago. Similar trees planted 10 - 15 years
ago are really huge. A tree like that has more than 2.5 - 3 cubic
meters of timber and they have  been planted as decorative trees. The
forecasts are to get 1 cubic meter raw timber from a tree. Past
performance from a similar Paulownia plantation (8 years of age)
harvest exceeded 1 cubic meter per tree.

4.The timber and its applications

Paulownia timber

*It is a hard wood -  like oak and walnut. It is ideal for furniture

manufacturers.

*It has better insulation qualities than any other wood and it does not

rot. That makes it ideal for wooden house manufacturers and parquet
floor manufacturers.

*It grows tall and straight and is ideal for straight beams for building

*because of the size of its leaves the tree produces several times more oxygen than most plants and absorbs more carbon-dioxide.

5.Planting and growing the plantation

Tree planting takes place in early spring before the leaves come out. By

the end of the first year most of the trees reach 2.5 - 3 meters
high. But what is most important is the roots to go as deep as
possible. The deeper the roots get - the faster the tree grows.


Pruning trees from the bottom in the beginning of the second year and
by the end of it they are nearly as high again as the rest that have
not been cut. And it is because the roots are as deep as the rest.
The first year is extremely important to water the plants everyday -
in summer twice a day!

Pruning is very important to get high and straight trees. From the 

fourth year the trees need only to get thicker.

6.Security of plantations

Surrounding the plantations with fences and provide a land guard. The 

ground between the trees is regularly cleared from grass to prevent fire

7.Company registration

There are two lawyers that deal with the company registrations and 

prepare all necessary paperwork.

*Registration in Bulgaria: The lawyer fills in all necessary application papers for the company registration. As these forms go directly into 

the Bulgarian company registrar they need to be completed in Bulgarian. 

A translator translates them all to the client before he signs them.
Then they are deposited with the registrar. A bank account is opened forthe new company and all payments the client needs to complete will go 

through it.

*Registration when the client does not come to Bulgaria: The lawyer

fills in all necessary application papers for the company
registration. All forms are emailed to the client and he has to print
them out and go to the nearest Bulgarian embassy in the investors
Country of Residence and sign them there. All expenses at the embassy
are chargeable to the investor.

  


Then the investor sends the forms to the Plantation Management team by

mail. Once the forms arrive the Bulgarian lawyers they are deposited
with the registrar and the company account is opened. In this case
there are additional Power of attorneys to let the management company
represent the investor before the registrar and deposit the papers on
the investors behalf and register the company bank account.


8.Land title

Once the company is registered and the money is paid the land title is

transferred to the investors new company. This is done with a local 
Notary. The title deed is written by the notary and both the seller 
and the buyer need to sign it in front of the notary. The notary
signs it as well and then he deposits it in court where the title is
transferred to the buyer. It takes from 2 days to 2 weeks sometimes.
If the client (as the owner of the company) cannot be present he can
be represented using power of attorney to buy his land on his behalf
and transfer the title to the newly formed company.

9.Payment options

Option 1 - The whole amount is paid by the client when he signs the

contracts and the papers for the company. When paying in this way the
seller will allow a discretionary discount on investment. Details
available by request.

Option 2 - With deposit and installments - 30 % deposit is paid at 

signing the contract. The rest is divided into 35 equal monthly 

installments due the 1st of every month. The legal transfer of the titlewill be done after the last installment is paid! Many investors prefer 

this option because they do not pay all the money at once. The investor

can sign the contract and get things started without visiting
Bulgaria at the start, Investors can plan their visit to a time that
suites them best and see their plantation already planted and grown.

Option 3 - Only with installments - as option 2 but without the 30%

deposit. The seller does not offer this option all the time! It is 

available only from June to December for plots that will be planted nextyear March - April! This allows the clients account to accumulate at 

least part of the money necessary for planting!

10.Power of attorney

Two types of power of attorney:

*necessary for bank accounts

*necessary for registering the company and transferring the land title



Forward Purchase Contract, of the harvested Paulownia timber is providedby the plantation management company. This means that your harvest is 

guaranteed a buyer. Further details are available on request.


So you like the idea of having your own timber producing fully

legitimate Company. What you will find of real interest is the entry
level for investment is well within reach. Denominated in £ sterling
or Euro's every investor with a little put aside receiving little
interest could participate in a long term lucrative venture.


Sales Brochure available on request (see top right of site) if you would

like to view the projected investment returns on offer. (current
projections running @ 15% IRR).


Silvinvest Ltd acts as a Marketing and Distribution Hub for various 

Alternative Investments, with a  particular bias towards Forestry 

Investments. 

Why would you want to build using Wood?

Why on earth a wood house?

Everybody knows that wooden houses are for children, doggies, and weirdos who live in the backwoods. Yes, they have seen the light, and now also modern intelligent people realize wood is the world’s best building material. Soon, we will have wooden bridges, arenas, houses, kindergartens, and even skyscrapers all over.

You’re going to love it.

So, has wood come into fashion? Hmmmm. Since when did it ever fall out of fashion? It’s always been the best building material whichever way you look at it.

Now get your brain around this. Relative to its weight, wood is the world’s strongest building material. That’s the way nature made it which is why building with wood is quick, easy, and economical (as all do-it-yourself women know, it’s a piece of cake) and because nature made wood so strong and flexible, tall wooden buildings remain standing even during earthquakes.

Now, here’s something for your heart.

Wood is beautiful, feels good, and has a wonderful scent, creates and excellent indoor climate and acoustics, and keeps you warm, but don’t take our word for it. If you “wood” give it a try.

Here’s something for your conscience. 

Wood is the most environmentally friendly material. It’s the only building material made by the sun, and with carbon from the air, so wood stores carbon and reduces the greenhouse effect, and it’s the only renewable material in perpetual supply forever and ever (from properly managed forests of course), and should wooden houses be demolished, you don’t end up with waste, nooooo! For wood can be recycled or burned. Thus using the solar energy stored in the wood to replace using coal, oil, and gas. Brilliant! Which is why modern intelligent people choose wood, caring

Invest in wood for wood is good

Wood - Nature's Genius

Wood - nature's genius

Are you also fed up?

Fed up with being told that everything is going to hell?

What with CO2, the greenhouse effect, flooding, drought, hunger, exhaustion of natural resources, mountains of rubbish, and the pure hell of toxic pollution.

Well, don’t worry because there is a solution, wood.

Yes, trees and wood products are the way forward because wood is the world’s most environmentally friendly raw material.

Get this. Trees and forests are a source of raw material that grow every year, and forests are much prettier than coal mines and oil drilling platforms, but you may ask isn't it wrong to cut down trees? No, luckily cutting down trees is absolutely fine if forests are managed with the purpose of producing wood for manufacture and when we cut down trees, new ones are planted in their place. Furthermore, plantation forest areas are expanding; increasingly increasing by many 000's square kilometers each year.

Wood products are also healthier for the climate because trees take CO2 out of the atmosphere and store it in their trunks, then later in wood products. So, we are reducing the greenhouse effect every time we use wood in houses, bridges, furniture, and cars, and when you dispose of wood products the story still isn't quite over, burn them, for there’s energy stored in the wood, and by doing so you release only as much CO2 as the tree consumed when it grew thus replacing the use of coal, oil and gas, preventing CO2 emissions and resulting in no waste which is why wood is the world’s most environmentally friendly raw material; a resource that both grows and produces clean energy instead of waste which is more than you can say about metal or plastic, concrete, coal, oil and gas now isn't it.

So use wood for wood is good.

Invest in wood for wood is good

http://www.silvinvest.co.uk/investments

What Does Timber's 2013 Outlook Mean for Housing? (SHW, TOL, WY)

What Does Timber's 2013 Outlook Mean for Housing? (SHW, TOL, WY)

WWF - Industry key to conserving forests as demand for wood projected to triple by 2050

WWF - Industry key to conserving forests as demand for wood projected to triple by 2050

Frankfurt, Germany — By 2050, rising population and demand, as well as an increase in use of wood for bioenergy, could triple the amount of wood society takes from forests and plantations per year, according to the latest instalment of WWF’s Living Forests Report. The report, presented today at the international paper conference Paperworld in Frankfurt, projects paper production and consumption may double in the next three decades, and overall wood consumption may triple. 

“A scenario of tripling the amount of wood society takes from forests and plantations needs to motivate good stewardship that safeguards forests – otherwise we could destroy the very places where wood grows,” says Rod Taylor, Director of WWF’s Global Forest Programme. “Wood, if sourced from well managed forests or plantations, is a renewable material with many advantages over non-renewable alternatives. The key challenge for forest-based industries is how to supply more wood products with less impact on nature. This challenge spans the whole supply chain, from where and how wood is grown and harvested to how wisely and efficiently it is processed, used and reused.”

WWF’s forest conservation target is zero net deforestation and forest degradation by 2020, which means no overall loss of forest area or forest quality. The target requires the loss of natural forests to be reduced to near zero, down from the current 13 million hectares a year, and held at that level indefinitely.

“WWF’s research suggests that it is possible to achieve zero net deforestation and forest degradation while sustaining a vibrant wood products industry that meets people’s needs,” says Emmanuelle Neyroumande, Manager of WWF International´s global pulp and paper work. “But the longer we delay our actions the more difficult and costly the solutions will be. We need wiser consumption, more efficiency, responsible forestry practices, good governance and more transparency.”

For paper in particular, the Living Forests Report outlines a variety of solutions:

More recycling in countries with low recovery rates: Even with higher global paper consumption in the future, society would need less virgin material than today if recycling rates increased. A 2020 scenario shows that an increase of paper production by 25 per cent could still require less virgin fibre input if the current global level of 53 per cent recycled fibre use is increased to 70 per cent. Paper recovery rates vary greatly between countries. Therefore, efforts to increase recycling in countries with low recovery rates and high consumption growth have particular potential to reduce pressure on natural forests. 

Resource efficiency and fairer consumption patterns: More efficient processing and manufacturing can help produce more products with a given amount of wood. Also, the current consumption patterns of rich nations (10 per cent of the world’s population consuming 50 per cent of the world’s paper) cannot sustainably be followed by developing countries. Richer nations can reduce wasteful paper use, while poorer nations need more paper for education, hygiene and food safety. 

Plantations to reduce pressure on natural forests: Even with more frugal use and greater recycling and efficiency, net demand for wood is likely to grow. Maintaining near zero loss of natural forests after 2020, without significant reductions in consumption, would require up to 250 million hectares of new tree plantations by 2050, which is nearly double the amount of plantations today. Therefore, well-managed plantations, particularly on currently degraded land, contributing to restore ecosystems, will play an increasingly important role.

Well-managed forests: Growing demand will also certainly push production further into natural forests. The report indicates that by 2050 up to 25 per cent more forests might be commercially harvested than today. Forest certification will continue to be an important tool to improve forest management practices via a market driven mechanism. 

The energy challenge: By 2050, annual wood demand for energy could reach 6-8 billion m3, which would require more than twice the wood removed for all uses today. This clearly poses a challenge for sustainable land-use planning. WWF sees an important role for bioenergy to provide diverse alternatives to fossil fuels, plus new incomes and increased energy security for rural communities. However, for these benefits to be realized, its use must be carefully planned, implemented and monitored for environmental and social sustainability. Badly managed bioenergy production can destroy valuable ecosystems, undermine food and water security, harm rural communities and prolong wasteful energy consumption. 

Humanity will likely use more wood in more ways in the coming decades. Given the massive projected increase in wood and paper demand, forest-based industries are key to conserving forests. For wood to play a positive role in a “green” economy based on renewable resources, production forests need to be managed to the highest ecological and social standards, and the use and recovery of wood products must become more efficient. 

Interview with MD - Agarwood Investments.

http://www.silvinvest.co.uk/agarwood-investments.html

Stories to Watch 2013

http://youtu.be/eTr6IaSzMZU

Re|Source 2012: Knowing the Unknowns: a bumpy road ahead?

Check out the excellent video regarding Commodities and Resources currently and envisioned and the impact on business, population and national security

FANTASTIC INVESTMENT OPPORTUNITIES

FANTASTIC INVESTMENT OPPORTUNITIES

Agarwood is the heartwood found at the centre of Gyrinops and Aquilaria trees. These trees are large evergreen species found naturally in certain parts of Southeast Asia including Cambodia and Thailand. The valuable heartwood is created when the centre of the tree is infected with a certain type of mould. This produces a one-time chemical reaction inside the trunk itself transforming the core into a dark, dense timber that is saturated in heavily scented resin.

The final result of this reaction, also knows as Oud, has such an attractive and strong scent that it is highly sought after for use in the production of incense, perfumes and essential oils across the world and is also used in the development of some more traditional medicines.

Different Types of Oud

Depending on the type of tree grown and the location of the plantation, the resulting Oud can have a varying range of qualities to fulfil the differing requirements for this product

.

Oud al Seyufi is the darkest of all the resins created in the region and is derived from some of the best Agarwood found in the plantations of Thailand and Cambodia. Thanks to its age and high quality, though the aroma of this product is initially very heavy, it soon transforms into a sweet, strong smell that is perfect for use in creating some of the most highly sought after fragrances of today.

Oud al Safii comes from Agarwood grown on the border between Thailand and Cambodia. With woody undertones, this attractive scent is able to remain on the skin for longer which builds longevity in the perfumes it is used to create. Oud al Safii Thai is a lighter, oily resin which is grown within the Thai province of Trat. The zesty aroma and pure form of the final product makes this ideal for the production of essential oils and related products.

Though most Oud is supplied in a syrupy liquid form, it is also possible to produce Oud Powder and Wood-chips. The wood-chips themselves can be burned directly to produce a wonderful aroma while the powder is used to create incense sticks in order to release its delicious scent.

The Benefits of Managed Plantations

Though Gyrinops and Aquilaria trees are found naturally within the plantations regions, the development of managed sites for Agarwood has not only made is it possible for a sustainable and continuous source of this valuable product to be developed, but it also enables the facilities themselves to oversee the entire Oud extraction process. By keeping the entire procedure on-site, the expert management team are able to maintain a level of quality control that is not possible in the wild and ensure the level of supply is able to meet the increasing demand for such a highly valued product.

From the growth of the initial seed through to the final supply, such control ensures the final product delivered to the marketplace is in its purest form, thus maintaining the best price for the commodity and a high rate of return for all those that choose to invest.

Telephone Appointments can be made using the appointment widget located top right of this blog www.silvinvest.co.uk