Forest Products Industry

The Forest Stewardship Council (FSC) joined global leaders at the Global Landscape Forum’s Forests 2025, held in Bonn, Germany, from 24 to 25 April 2025. Ahead of the United Nations Climate Change Conference COP30, this event brought together a global community to explore the role of sustainable land management and forests as key solutions to climate change. Source: Timberbiz Forests serve as carbon sinks, biodiversity hotspots, and sources of livelihood and food for millions of people around the world. Yet they are facing increasing challenges. The conference explored the path forward to shape the future of forests, including key themes of policy, climate finance, rights, just transition, and technology. FSC Director General Subhra Bhattacharjee participated in three key discussions during the event, highlighting the urgent need to involve all forest stakeholders to address the main challenges, enhance local leadership, and use technology resources to shape the future. Defining the next decade of actions In the closing plenary on the first day, Subhra Bhattacharjee joined policymakers, experts, Indigenous leaders, and practitioners to discuss actions to overcome major challenges facing forests and foster a resilient future. The plenary highlighted the urgent need to halt and reverse deforestation and forest degradation by 2030. As the Director General noted, three core elements that define FSC’s consensus-building through dialogue, voluntary compliance, and inclusive, multi-stakeholder engagement, are now more critical than ever in today’s increasingly polarised world. The climate crisis requires collaboration among governments, the private sector, NGOs, Indigenous Peoples’ organisations, and individual citizens. “FSC creates that platform,” she said, highlighting FSC’s unique role in bringing together multi-sector actors for dialogue. Ms Bhattacharjee finished with a strong message, amplifying the words of the panel’s two Indigenous speakers: “The voices of those who have skin in the game including those of local communities and Indigenous Peoples, must define the global agenda.” Building inclusive AI for forest policies On the second day, stakeholders gathered in person to continue the exchange. A roundtable discussion on integrating Artificial Intelligence (AI) in forest decision-making provided the opportunity to explore how to use these tools for equitable and just forest policies. For FSC, integrating artificial intelligence into global forest governance frameworks presents a powerful opportunity to enhance transparency and accelerate responses to deforestation, climate change and biodiversity loss. FSC’s Director General highlighted the potential of AI as a force multiplier to both deepen inequality or empower communities: “AI should be an open-sourced tool, providing democratised and accessible output in the local language to support governments and communities in decision-making to focus their resources to protect their forests”. Supporting compliance with EU Regulations for a forest-based bioeconomy Regarding the EU Deforestation Regulation (EUDR), FSC, as a voluntary certification system, helps stakeholders navigate and comply with these requirements. ”EUDR and FSC certification contribute to a common cause,” she said. “Both seek to fight deforestation and degradation in Europe and worldwide”. By streamlining the compliance process, FSC offers practical tools and guidance to companies, forest managers, forest owners, and communities to contribute to sustainable forest management. FSC certification can also help companies to meet EUDR requirements. “EUDR presents a unique opportunity to drive large-scale capacity building, incentivisation, and support—creating the conditions needed to earn smallholder trust and provide meaningful incentives to keep forests standing,” she added.

Understanding the value of an acre of timber is essential for anyone in the forest products supply chain, whether managing timberland, planning harvests, or securing raw materials. A complex interplay of market dynamics, harvest strategies, and emerging environmental trends shapes timber valuation. Source: Resource Wise In this updated analysis, Resource Wise explored the forces driving timber worth, diving into fresh 2022-2024 stumpage price data for US South plantation and natural pine and highlight key trends to watch in 2025. Before we can determine the value of an acre of timber, we need to understand the law of supply and demand, which ultimately drives the price of timber. Demand is heavily influenced by location, surrounding mill types, proximity to those mills, and the volume and type of timber products consumed in a given area. Therefore, the volume and type of products available on a tract of timber will determine the value per acre. Location and Proximity to Mills: Timber near sawmills or pulp mills fetches higher prices due to lower transportation costs. In the US South, sawtimber for lumber often commands a premium over pulpwood. Timber Type and Age: Managed pine plantations, typically clearcut at 25-35 years, yield 80-105 tons per acre, with sawtimber (12″+ DBH) driving the highest returns. Natural stands with mixed hardwoods can be even more valuable when high-grade logs are present. Harvest Method: Clearcuts maximize volume and revenue per acre, while thinnings provide earlier cash flow with lower yields. The choice depends on market timing and management goals. Market Trends: Demand for timber products like lumber, pulp, and bioenergy materials fluctuates with construction cycles, paper production, and sustainability initiatives. These factors create a wide range of per-acre values, making understanding historical trends and current market conditions essential. Using transaction-based data from 2022–2024, Resource Wise updated its analysis of stumpage prices for US South plantation and natural pine, focusing on clearcut and thinning harvests. Mature plantation stands, averaging 80-105 tons/acre, saw a dip in 2023 due to a temporary oversupply of sawtimber, followed by a recovery in 2024 as lumber demand strengthened. Thinnings, yielding 30-50 tons/acre of mostly pulpwood and chip-n-saw, showed lower values for younger stands (16-20 years) due to smaller log sizes. The 21-25-year stands fetched higher prices with more chip-n-saw and small sawtimber, though prices fluctuated with pulp market demand. Natural stands, often denser with 90–110 tons/acre and mixed with hardwoods, saw a gradual decline over the period. This reflects softening hardwood sawtimber prices and reduced pulpwood demand. Thinnings in natural stands, yielding 40-60 tons/acre, showed a steady price increase, driven by consistent pulpwood demand and higher removal volumes compared with plantations. Compared with 2017-2019, when plantation clearcuts averaged US$1,542-$1,694/acre and natural clearcuts peaked at US$2,055/acre, the 2022-2024 data show plantation values trending higher due to inflation and sawtimber demand, while natural clearcut values have softened slightly due to market saturation. Beyond traditional market forces, timber’s value is increasingly influenced by global decarbonization efforts, which are reshaping demand and creating new opportunities for landowners. The carbon dioxide removal (CDR) market, projected to grow US$100 billion annually between 2030 and 2035, is opening new revenue streams. Timberlands can generate income through carbon sequestration or by supplying biomass for Bioenergy with Carbon Capture and Storage (BECCS). For example, companies like Drax are planning wood-fired power plants in the US South, using biomass to produce renewable energy while capturing carbon emissions. Sustainability policies are also playing a role. The EU’s target is to reduce emissions by 55% by 2030, and US investments in carbon capture (US$2.54 billion through 2025) are boosting demand for wood as a renewable alternative to fossil-based materials. This trend could support sawtimber prices, particularly in regions with strong sustainability mandates. However, innovations like biochar, which uses wood waste to lock carbon in soil, might divert low-grade timber from pulp markets, potentially softening pulpwood prices unless offset by carbon credit revenues. Additionally, policy uncertainty in biofuels, such as the expiration of US biodiesel tax credits, can impact biomass demand, adding another layer of complexity to timber markets. These decarbonization trends highlight timber’s evolving role, not just as a raw material but as a key player in climate mitigation. An acre’s value depends on your specific stand and market conditions. Based on 2022–2024 averages: A 100-acre plantation in the US South at 26+ years might yield US$211,100–US$227,500 from a clearcut. The same plantation, thinned at 21–25 years, could bring US$53,800–US$90,400. A 100-acre natural stand might be valued at US$196,000–US$216,800, with thinnings at US$66,400–US$75,700. These are starting points; site-specific factors like soil quality, accessibility, and mill proximity can significantly adjust these figures. The valuation of timberland is influenced by a complex interplay of factors, including market dynamics, timber characteristics, and emerging environmental trends. Recent data from 2022 to 2024 indicate that while plantation pine clearcuts have seen a recovery in value due to increased lumber demand, natural pine stands have experienced a gradual decline. The expanding carbon dioxide removal (CDR) market offers new revenue streams through carbon sequestration initiatives. However, it also introduces complexities for traditional timber markets, highlighting the need for balanced strategies that support both carbon sequestration and traditional timber production. Staying informed about these evolving trends and integrating sustainable practices will be essential for maximizing the value of timber assets and contributing to broader climate mitigation efforts.