FOR IMMEDIATE RELEASE
September 12, 2006
TIMBER MARKETS EXPECTED TO BOOM
(Columbia, SC) -- South Carolina timber growers should expect robust returns over the next decade. Forestry Commission experts say unprecedented demand for small timber will likely produce double-digit payoffs on reforestation investments.
According to Dr. Tim Adams of the Forestry Commission, financial analysis shows annual returns on reforestation investments in the range of 12-14%. “Demand for pulpwood-sized trees will increase rapidly over the next few years,” said Adams. Sawtimber markets are expected to remain stable, he said.
Attracted by the state’s strong inventory of growing timber, industries using small diameter trees are looking to South Carolina. Four new mills are now under construction, and existing industry is ramping up production.
As the new mills come on line, pulpwood demand is predicted to grow by about 40%. This is a welcome development for forest landowners disillusioned after several years of drought, insect losses, and declining prices.
Foresters say it takes 12-15 years for pines to reach pulpwood size and the Forestry Commission is urging landowners to plant trees now. A new publicity campaign, “Grow Some Green” directs those interested in reforestation to contact the SC Forestry Commission, 803-896-8800.
For more information, contact: Dr. Tim Adams, 803-896-8802