Forest Enterprise Ltd (FEL) and IFS Asset Managers Ltd have joined forces to form Veon Ltd, which “will offer all aspects of forestry management, from establishing forests for commercial and private operations to professional forestry investment services,” said Veon forestry managing director Daragh Little.

“The company aims to bring clarity to the market and plans to educate farmers and investors to make informed decisions on forestry,” he said. “Veon will offer new forestry opportunities for Irish landowners, benefiting timber processors with continuity of supply contracts and underpinning job security in a sector which currently employs over 12,000 people in Ireland and contributes approximately €2.3bn to our GDP.”

Both companies are already well established in the Irish forestry sector. FEL is a major forestry consultancy specialising in commercial forestry enterprise and is Ireland’s largest purchaser of commercial forests for investor clients. Since it was launched in 1997, IFS has developed the Irish Forestry Funds. These have grown to 30 Irish public limited companies which have invested directly in Irish forestry.

Employing 12 specialists, “Veon aims to revolutionise the ownership of sustainable forestry in Ireland and maximise the commercial benefits from this asset for woodland owners, investors and farmers,” said marketing director Paul Brosnan.

Veon is expected to increase its number of employees over the coming months to cater for the increased demand for high-quality Irish forestry assets and professional forestry services.

While FEL and IFS have worked closely since 1988, “both now operate under a single corporate brand structure which is an important step,” maintained commercial managing director Trevor McHugh.

“The forestry sector has enormous potential to further contribute to the economic, environmental and social development of Ireland, and we believe Veon is the key to unlocking that potential,” he said.

“Irish forests are premium assets when compared with their international counterparts and we have growth rates of up to three times faster than our European neighbours,” said Daragh Little.

“However, more needs to be done. Put simply, Ireland is not planting enough trees and is not investing enough in its existing forests. It is also having difficulty in delivering its timber to sawmills.”

He believes that the current planting and roading targets are too low. “Veon will ensure our clients’ afforestation targets are not only consistently met but exceeded so that landowners realise the true value of forestry as an attractive long-term option,” he said.

Veon Ltd is the only forestry company in Ireland registered with the Central Bank as an alternative investment fund manager. Further information at www.veon.ie.