Charles Seymour comments on the resurgent timber market and the need for growers to review insurance arrangements.

More than 80 per cent of timber used in the UK is imported from Scandinavia and Eastern Europe, with prices determined by international supply and demand. The twenty first century has seen the emergence of developing nations such as India and China, and demand for construction in these countries is having a significant impact in pushing prices upwards - great news for UK growers.

Dependent on imports, the UK timber industry was in freefall prior to 2003. Production in the UK had been hit hard by cheaper imports, with the low value of stocks leaving foresters to question the merits of insuring their timber. As a result, many growers decided against the additional cost of insuring their timber against either fire or windthrow.

Over the last four years up to September 2007, however, the Forestry Investment Management (FIM) Index says that prices for timber have risen by 36.8 per cent in the UK. International demand is expected to continue to soar, and with the drive for sustainable buildings and green energy, confidence within the industry is high. Timber stocks are now much more precious and in demand.

Now is the time for growers to review their portfolio to ensure that all assets are insured comprehensively against storm and fire damage.

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