IKEA’s investment arm (Ingka Investments) has acquired more farmland in New Zealand, which it intends to plant pine forests, after the New Zealand Overseas Investment Office (OIO) granted the furniture giant, one of the world’s largest timber users, permission to acquire 1,500 hectares of farmland in Marlborough and Otago, according to NZ-based The Press.
Wood Central understands that the new purchases now bring the total amount of land owned by IKEA to 27,000 hectares, about 8.5% of its global forest land – with spokesman Felix Őstman telling The Press that IKEA will sell the timber harvested in New Zealand on the open market, and only some of it will go into products.
According to Felix Őstman, IKEA chose New Zealand due to its strong inter-generational investment opportunity, “but also to take a leadership position in responsible forest management. He said that while IKEA mostly buys existing forests, it has recently bought farmland when established forestry is scarce, adding that IKEA would plant mostly pine, but set aside about 10% of the forest for other species, including redwood, beech, totara, and manuka.
“We do not purchase or plant forests to participate in carbon farming to generate and sell carbon credits from our forestland,” he said. “We are not in it for carbon credits. Our focus is on ensuring these forests are managed responsibly and contribute positively to the local environment and communities.”
Some of IKEA’s forestry blocks are registered in the government’s emissions trading scheme, but Östman stated that the company did not actively participate in selling the carbon units. For both purchases, the OIO said the main benefits to New Zealand of allowing the sales would be “increased expenditure and export receipts. Other benefits include increased jobs and climate change benefits.”
- To learn more about IKEA’s investment in NZ forest assets, click here for Wood Central’s special feature from August last year. And to learn more about IKEA’s first ‘Blue Box’ store – slated to open in time for Christmas, click here for Wood Central’s update in May 2025.
