Market

OUR MARKET

Currently the market is very good in China. Robust economic growth, together with the rising living standards and the emphasis on environmental conservation in the world and China have created a consumer preference for timber products for households and offices as these products are natural and beneficial to both mental and physical health. The book “Timber Conservation”, the national key teaching material of China’s Ninth Five Year Plan, clearly explained how living in wooden houses can prolong one’s life for 9 to 11 years (line 12 of page 16 in “Timber Conservation”). That figure not only reveals that timber products are important to mental and physical health, but also shows that the preferred use of timber products will be a long-lasting trend. The encouragement by the Chinese Government on commercial plantation has changed the situation from “supersede timber with plastic” and “supersede timber with steel” in the past to “supersede plastic with timber” and “supersede steel with timber”, which have further tightened the supply of timber in China. Our market is China, Japan and Korea. The demand for timber in Asia has never been stronger.

(Sources：State Forestry Administration, Food and Agriculture Organization of the United Nations and Deutsche Bank)

TIMBER BUYERS

We’ve secured the sale of our timber to buyers in China, Japan and Korea. Typically in securing the sale of timber export to Asia requires more than a simple phone call. Seeing the value Frontier, inc. decided to tackle the issue of personability in the Asian market head on. Frontier exec’s have traveled to china, and Korea and Canada developing relationships with our buyers. In addition, we have taken our buyers to Alaska where we have secured the sale of the timber on our current project.Our buyers typically buy in blocks of 10MMBF to 20MMBF. With the dramatic decline in timber exports from Canada and Russia as well as the lack of USFS timber sales available, the supply for timber is low for Asia. Coupled with the expanding economies in Asia the demand is high and expected to remain high for the next several years.

MARKETING

Frontier’s years of international marketing experience places us at an extraordinary advantage. Marketing timber internationally is not merely about picking up the phone and making a deal. Doing business especially in the Asian market requires much more. In the Asian market it’s more about relationships than simply just product. Frontier’s relationships from Japan, Korea, Singapore and China has been the key to our marketing success.