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Private Timber Sales Dispatch System
To support timber growers and encourage the thinning of private forest areas, the Irish Timber Growers Association has developed a model for a timber sales dispatch system that will assist with accountability and security in timber sales from private forests. This system and full operational details are now available to all on the Irish Timber Growers Association website www.itga.ie
Webcast of 2010 National Forestry Conference
The webcast of this year's National Forestry Conference is available to all online on www.itga.ie This is another welcome initiative for our forest industry. If you missed this year's conference and wish to look at some of the presentations go to www.itga.ie, www.coford.ie or www.societyofirishforesters.ie and click on the Webcast icon on the home page. The webcast allows you to view the presentations as well as look at the presentation slides at the same time by clicking on the relevant icons.
The Conference which was jointly organised by the National Council for Forest Research and Development (COFORD), the Irish Timber Growers Association (ITGA) and the Society of Irish Foresters (SIF) was held in the Lyrath Estate Hotel, Kilkenny.
The Conference heard that wood supply from Ireland's forests is forecast to increase from 3.8 million cubic metres (m3) at present to 6.5 million m3 by 2028. However, despite this increase in output from our forests the current shortage in wood supply is set to grow to more than 1.8 million m3 per annum by 2018 according to forecasts to be released by COFORD.
The forest processing industry is already experiencing difficulties in sourcing sufficient wood supply from Irish forests, reflected in the current market and by the fact that over the past decade significant quantities of wood have been imported from Scottish forests.
 For more information about the Irish Timber Growers Association, see www.itga.ie.
Membership application forms are available from the ITGA website or from the Secretariat 01 2350520 or email itga@eircom.net
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Timber Prices Remain Strong
The market demand for timber remains buoyant and prices remain strong for timber growers. With thinnings now in constant demand from boardmills, the wood fuel sector in addition to the stakewood and palletwood industries, growers are taking advantage of market conditions. Palletwood prices have been particularly strong and how the bad news of the fire at Woodfab in Aughrim, Co. Wicklow will affect this market remains to be seen. The Woodfab Group have provided a good market for growers over many years and are a good employer in the sector. The Association wish Woodfab well and hope to see them back in operation very soon.
The response of timber growers to current market conditions can be seen by the c. 85% increase in number of General Felling Licence (GFL) applications in the 6 month period to the end of June representing a private forest area under application of 7,313 hectares for these 6 months. According to Forest Service figures General Felling Licences have been issued for 4,614 hectares in this 6 month period. The extent of the increase in the application rate for felling licences can be seen from the fact that over the full year in 2009 Felling Licences were issued for 7,965 hectares in the private sector, much the same area as applied for in the first 6 months of this year. It is important that growers apply for felling Licences a number of months before the intended thinning date.
A number of our members have reported to us that there is a problem in some regions with selling timber and having it harvested promptly due to a shortage of harvesting contractors with machinery suitable for thinning operations. This is an issue which must be addressed given the forecasted increase in volume of thinnings due to come on the market from the private sector. The Association will be raising this issue with the industry and relevant authorities.
Growers are strongly urged to consider using the ITGA Model Timber Sales System in their thinning or felling sales and also to check current market prices for timber prior to agreeing a sale. This information is available on www.itga.ie
It is interesting to note trends in the UK. The IPD UK Forestry Index which is produced by Investment Property Database Ltd. and was recently circulated shows a forestry investment return in the UK of 11.1% for 2009. This shows returns from investment in forest properties. The IPD UK Forestry Index is calculated from a sample of private sector coniferous plantations of predominantly Sitka spruce in Britain. Particularly interesting are the percentage annualised total returns over 3, 5 and 10 years which are given as 16.1%, 16.6% and 8.1% respectively. (see www.ipd.com )
Donal Whelan
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