Ecoforests News
September 2013                                                                                                              

Following our commitment to you, please find enclosed our latest newsletter with information about Ecoforests and the Forestry Industry.

$1.1-billion Ainsworth deal shows heat in forestry sector.

The Globe and Mail


Several big forestry deals have come out of the woodwork this year, and the trend shows no sign of slowing as Ainsworth Lumber Co. Ltd. is sold for $1.1-billion (U.S.), including debt, in a deal announced Wednesday afternoon.


Building materials manufacturer Louisiana-Pacific Corp. is buying British Columbia-based Ainsworth, which makes engineered wood products such as floors and stairs, and has 700 employees in four manufacturing facilities across Canada. Ainsworth is 54-per-cent owned by Brookfield Asset Management Inc., which has been particularly active in Canadian forestry deals in 2013.



"This transaction is oriented on the opportunities we see in this sector, and we believe that Ainsworth and our people will have a bright future as part of LP," said Ainsworth's chief executive Jim Lake in a conference call, noting that Brookfield would support the deal.

Aggressive investors such as Brookfield that put money into forestry several years ago are starting to profit from the industry's gains, according to a PricewaterhouseCoopers report on mergers and acquisitions in the second quarter of the year.


"Private equity saw value that industry players didn't," said Scott McLean, a partner with PwC's forest, paper and packaging practice, in the report. "They had a willingness to restructure the acquired assets in an aggressive manner that is foreign to the industry."


In the second quarter Brookfield Asset Management and some of its related investors were sellers in two big deals: the sale of Longview Timber LLC to Weyerhaeuser Co. for about $2.65-billion, as well as the sale of Longview Fibre Paper and Packaging Inc. to KapStone Paper and Packaging Corp. for about $1-billion.



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Teak Forestry Price Trend.  
The price of Teak timber has continued to rise according to ITTO (International Timber Trade Organization). The following graph outlines the variation in pricing from January 2006 - June 2013. Each of the different teak wood quality levels have risen, some in three digit values.
 A brief History about ITTO :
The International Tropical Timber Organization (ITTO) was established under the auspices of the United Nations in 1986 amidst increasing worldwide concern for the fate of tropical forests. While almost everyone was alarmed at the rate of deforestation occurring in many tropical countries, there was also considerable agreement that the tropical timber trade was one of the keys to economic development in those same countries. The reconciliation of these two seemingly disparate phenomena is ITTO's story.

ITTO's origins can be traced back to 1976 when the long series of negotiations that led to the first International Tropical Timber Agreement (ITTA) began at the fourth session of the United Nations Conference on Trade and Development (UNCTAD) as part of that organization's Programme for 
Commodities. The eventual outcome of these negotiations was the ITTA, 1983, which governed the Organization's work until 31 December 1996, when it was superseded by the ITTA, 1994. Negotiations for a successor to this agreement were concluded in 2006, again under the auspices of UNCTAD. The ITTA, 2006 entered into force on December 7, 2011.


A Climate Alarm, Too Muted for Some.

climate alarm


This month of September, the world will get a new report from a United Nations panel about the science of climate change. Scientists will soon meet in Stockholm to put the finishing touches on the document, and behind the scenes, two big fights are brewing.  

In one case, we have a lot of mainstream science that says if human society keeps burning fossil fuels with abandon, considerable land ice could melt and the ocean could rise as much as three feet by the year 2100. We have some outlier science that says the problem could be quite a bit worse than that, with a maximum rise exceeding five feet.


The drafters of the report went with the lower numbers, choosing to treat the outlier science as not very credible.

In the second case, we have mainstream science that says if the amount of carbon dioxide in the atmosphere doubles, which is well on its way to happening, the long-term rise in the temperature of the earth will be at least 3.6 degrees Fahrenheit, but more likely above 5 degrees. We have outlier science that says the rise could come in well below 3 degrees.


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Look at what we found.
Teak wood deck chair from R.M.S. Titanic.

This deck chair was recovered from the R.M.S. Titanic by crew from cable ship Minia. It was presented to the Rev, Henry W. Cunningham in recognition of  his work in performing memorial and burial services aboard Minia. His grandson, David Waterburg of Kentville, Nova Scotia donated it to the Maritime museum in Halifax were it now sits.
The chair is made of teak hardwood and bears a carved five-pointed star, the emblem of the White Star Line. The seat has been recanned.   Eventhough this deck chair was recovered almost 100 years ago, if we look back at the last expedition of the R.M.S. Titanic in 2005, the crew and cameras entered the turkish baths were deck chairs were found almost intact. We decided to provide this little token of history to demonstrate the quality of Teak wood, a product from the forest that can sit underwater for almost 100 years and remain intact. Teak wood, the King of Woods!



Quinguz Teak EcoHomes production begins.
In our newsletter of June we introduced Ecoforest's sister company Quinguz Teak Ecohomes. We are pleased to announce that in the month of September we have begun production of the three models below Model IP 20, Model IP-33 and Model  IP 40-A. We have obtained much interest of our teak homes in Latin America, USA and Spain. We will begin shipping our first orders in late October.
If you would like to learn more about our Teak EcoHomes please dont hesitat to contact us at 




Ecoforests Team                                                                                        
Toll Free : 1-855-876-3775
Tel : +1-647-931-9133
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Ecoforests - Corporate Presentation (2012)
Ecoforests - Corporate Presentation 
Investing in Teak Forestry 14 Reasons Why
Investing in Teak Forestry 14 Reasons Why

EcoForests - Sustainability Of Forestry Plantations
Sustainability Of Forestry Plantations