GTP 0.00% 12.0¢ great southern limited

Investments in plantations could collapse

  1. 59 Posts.
    Report in the Weekend AFR:

    In a major review of ABARE data, an economist from the ANU concluded:

    1) Australian woodchip exports have fallen 1.1% per year from 1991 to 1998.
    2) Real prices have dropped 11% in the last two years

    The economist also suggestas that the plantation industry is based on "heroic projections of global wood deficits" and "if these price ecpectations are unrealised ....... investments in plantations could collapse".

    Further, an author on the sttudy of plantation economics says "there is clear expectation of an emerging oversupply of woodpulp"

    And further still and independant grower of eucalpyts was told last year that the trees werew worth less than the cost of logging them.

    It looks like the poster on IW knew what he was talking about after all.

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