An investment in mahogany is a solid investment. The globally increasing demand for construction material secures the demand in the long term. Despite price increases, no-one should fall into a gold rush. The timber market is a tradional market and likes to play with shortages in order to increase the profits. Only someone who ‘obtains affordable trees’ can look forward to a safe investment.
You invest 10 euro per planted tree. After 12 years you receive 40 euro for that. The price includes the certification of the notarial contract which identifies you as owner. The minimum amount for an investment is 200 trees = 2.000 euro, the payment after 12 years is 8.000 euro.
1. You invest 10 euro per planted tree. After 12 years you receive 40 euro for that. The price includes the certification of the notarial contract which identifies you as owner. The minimum amount for an investment is 200 trees = 2.000 euro, the payment after 12 years is 8.000 euro.
2. You also have the option, however, to adjust your payout to the timber price. This is the most common type of contract because inflation is eliminated in this way. This ‘open’ contract ensures the farmer 50 percent of the timber price in the year of harvest, you receive 36 percent of the value of mahogany wood and Mama Earth receives 14 percent.
We plant with farmers who have extensive experience with the timber industry. Our key areas of activity are Montevita and Monkayo on Mindanao. Provide yourself with an overview from the adjoining map. Follow the explanations underneath the map and you can see the farms. More transparency is not possible.
Notwithstanding the good rate of return you invest in a socially just project! Mama Earth takes care of employment and income on the farms. Since the farmers gain with 50 percent most from the timber, your trees are in good hands but within our control.
You are welcome to visit us at any time. We help you to plan your trip. A trip is not merely worthwhile for seeing our successful mahogany – and teak program, but also for getting to know the country and the people. Write us an e-mail in German or English.
A 12 year old mahogany tree (30 centimeters in diameter, 12 meters in height) has approximately 0,50 cubic meters (solid cubic meters) usable lumber. Although we reach a larger diameter as we trim the crowns accordingly, we only calculate with the minimum. The price for this tree trunk sample currently amounts to 4.400 peso (90,34 euro, exchange rate 48,70).
In detail: the timber trade is dollar oriented and calculations are therefore made with American measurements. A cubic meter timber includes 423.7760007 board feet. Timber merchants modify this unusual number to a calculable 424. Half a cubic meter has thus 212 board feet. The timber industry buys one board feet for 22 peso from the farm. So if we would sell a tree trunk today, the calculation is as follows: 212 times 22 peso = 4.664 peso. We round this amount off to 4.400 peso in order to compensate for market fluctuations. This 4.400 peso is divided into 2.200 peso for the farmer and 1.584 for the investor. 1.584 peso corresponds to 32,52 euro. In one sentence: your 8 euro increase to 32 euro, or in other words: your money provides you 12,25 percent green and social interest rates.
To be sure we do not count upon price increases, since no analyst can predict if the price for mahogany continues to move upwards steadily. What is for sure is that it does not drop. In our profitability calculations we focus on this actual market value.
By clicking on the top left symbol, a list of the farms on which our trees grow appears. Underneath the place names appears an arrow pointing downwards. With one click you can fade the list in or out. Underneath the names of the farmers, the name is displayed once again. If you click on the second name row, you can see photos of the farm.