Timber Marketing Group
The Estate Office, Aske, Richmond, North Yorkshire DL10 5HJ
Chairman: Sir Michael Strang-Steel General Manager: Gordon Dugan
Tel: 01748 824697 Fax: 01748 826893 E-mail: gordon.dugan@t-m-g.com
The UK timber market is influenced by global as well as domestic trends. Although there has been a dramatic expansion in UK planting in recent years, there is still a dependence on imports with 85% of the requirements for wood and wood products shipped in from abroad.
Over the next 15 to 20 years, however, vastly increased volumes of home-grown timber will be reaching harvest specification. It is estimated that production could double with 60% of the volume supplied by the private sector, a traditionally fragmented source of supply with few private growers able to offer large volumes of timber over extended periods of time.
There is a distinct danger that this could undermine investment by processors who require confidence in the availability of raw material to justify capital outlay; and a real prospect of a reduction in the number of timber purchasers due to internationalisation.
There is also a need to minimise supply chain delivery costs to maximise returns available to the grower.
For all of these reasons, in 1997 the Timber Marketing Group (TMG) was established as a non-profit making co-operative owned and controlled by private woodland owners. Although Scottish founded - founder members included Buccleuch and Roxburghe Estates in the Scottish Borders - TMG now operates on a UK wide basis and is the leading UK group with definitive commitment from owners.
TMG is aiming for a 25% share of the UK market for roundwood timber. It is already selling almost 300,000 tonnes through the mechanisms of the group and with the anticipated expansion in felling capacity, is confident of achieving its target.
Modelled on similar agricultural co-operatives, TMG’s goals focus on securing a dominant market position for private timber growers through the strength of co-operation.
TMG is fostering long-term market relationships on the basis of assured timber supplies and its recent arrangement with Tilhill Forestry aims to improve the marketing of group timber. Tillhill is currently the largest forest management company in the UK and provides important economies of scale and opportunities to increase market presence.
Members of TMG - who undertake to sell their softwood production to the market through the co-operative, with a proportion time committed - can expect exclusive market information, access to market-leading harvesting and delivery services , secure markets and above average returns.
Chairman of TMG, Sir Michael Strang-Steel: “ We have more than tripled our marketing of roundwood timber in the last year and our strength lies in providing our customers with a steady supply enabling them to plan and invest with confidence.
“The Timber Marketing Group is about co-operative marketing by growers, for growers, and will assist the private woodlands sector of the forestry industry to make the most of their increased timber production.”