Abstract
Summary Over the last 15 y there has been a significant change in the face of Australian plantation forestry: the decline in plantation investment by governments, and the rapid expansion of a new plantation industry funded by private investors. A high proportion of the new plantations are management investment schemes (MISs) where plantation projects are set up by companies, who then attract investors, acquire the land, develop and manage the plantations and sell the produce from them, all on behalf of the investors. Proponents of MIS schemes may seek to add credibility to their product by having it independently assessed and reported upon by an agribusiness research house. The research reports focus on two questions: Firstly, will the project ‘work’ from the forestry perspective? And secondly, will the likely financial returns be achieved? The reports are aimed at financial advisers and investors. This paper concentrates on the forestry aspects. I have worked for an established research business for over six years and have assessed the forestry side of numerous MIS projects. In order to assess diverse projects systematically and to allow comparisons between geographically dispersed projects, I have developed a template for best practice which can be applied to any MIS plantation project. This paper sets out my concept of best practice and discusses the main points of interest and concern that have arisen during MIS forestry projects assessment when applying it, and includes observations on the industry and its future.
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