PROSPECTUS - THE PREMIER IRISH FORESTRY FUND PHASE II PLC.
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INVESTING IN FORESTRY
Forestry is widely held to be a secure low-risk long-term investment. Numerous studies have indicated that the potential for future returns from forestry investment remains extremely positive, particularly in an Irish context. A number of factors contribute to this potential.
WORLD MARKET
Currently, there is a world-wide shortage of timber, the end product of a forestry investment. Long term studies have indicated that the gap between timber demand and supply will widen in the next century, as annual timber usage continues to outpace the rate of planting. These studies point to future growth in the price of timber in real terms. Despite several efforts, a satisfactory artificial alternative has never been developed, and, in the absence of such an alternative, there should always be a strong world-wide demand for timber.
EUROPEAN MARKET
Europe is the world's largest importer of timber. It is only 30% self- sufficient in meeting its requirements. Britain, our nearest neighbour and major trading partner, is only 20% self sufficient. There is therefore, a substantial long-term market adjacent to Ireland for forest products. The European union have recognised its growing need in this area, and has endeavoured to address this situation through the implementation of a grant aid package and the promotion of favourable tax status for woodlands in member states. It has been European policy for some time to encourage forestry as an alternative land use and to stimulate private sector investment in forestry.