THE MAMA EARTH MAHOGANY INVESTMENT IN SHORT

A Mahogany Micro Investment is a solid investment and starts with 200 trees. The world-wide increasing demand of building materials ensures the lasting need. But no one should go into a gold rush because of the increasing prices. The wood market is a traditional one and likes to play with shortages to increase profits. Only those who gets their trees cheaply can look forward to a secure investment.

You invest 10 Euro per planted tree and get back 40 Euro after twelve years. Included in the price is a notarized contract, which unmistakably identifies you as the owner. Or you choose a more flexible contract to profit from the price increases of the wood.

Zwei Farmersfrauen auf einer Mama Earth Plantage

Mahagoni Investment bei Mama Earth

WE KEEP OUR PROMISES – IN THE LAST 25 YEARS

Benefits for you

Through a notarized contract, you are the owner of the numbered trees
Low start-up costs thanks to our own tree nurseries
Successful cooperation with the Philippine Department of Environment and Natural Resources (DENR)
Regular counting and measuring with logs
Area measurement with GPS and editing for Google Earth
Down to earth calculation
Accompaniment of the entire project by our farmers

Benefits for the people

The farmers keep their own land (no land grabbing)
The local people get work (social responsibility)
The farmers get 50 percent (management and guard)

Benefits for nature

No plantations (monocultures)
Destruction of illegal wood trade
Protection of the jungle
Satisfied farmers do not sell to international corporations
Land will be used ecologically and for a long time

MAHOGANY INVESTMENT IN DETAIL

A twelve year old mahogany tree (30 centimeter in diameter, 12 meters tall) contains about 0,5 cubic meter (solid) usable wood. Although we achieve more as we trim the tree tops accordingly, but we only calculate with the minimum. Currently the price for this example trunk amounts to approximately 6.400 Peso (122,65 Euro, rate from November 22th 2017).

To be on the safe side, we do not calculate with rising prices, because no analyst can predict if the price for mahogany will continue to increase. The only certain fact is that it does not fall. And only this real market value is used in our profitability calculation.

Wood trade is dollar oriented, therefore we calculate with the American measurement system. A cubic meter of wood contains 423.7760007 board feet. This crooked number gets adjusted by the wood traders to 424. Therefore, half a cubic meter contains 212 board feet. The wood trade buys one board fee for 32 Peso. In case we sell one trunk today, the equation would look like this: 212 times 32 Peso = 6.784 Peso. We round this amount off to 6.400 Peso to compensate market fluctuations. These 6.400 Peso are divided into 3.200 Peso for the farmer and 2.304 for the investor. 2.304 Peso equal 44,12 Euro (rate from November 22th 2017).

In one sentence: Your ten Euro grow into more than 40 Euro (rounded off) and yield more than twelve percent green and social interest.

THE TWO POSSIBLE INVESTMENTS

FIXED INVESTMENT WITH A NOTARIZED CONTRACT

You invest 10 Euro per planted tree and get back 40 Euro after twelve years. Including a notarized contract that identifies you as the owner. The minimum amount for an investment is 200 trees = 2.000 Euro with a payoff of 8.000 Euro after twelve years.

FLEXIBLE INVESTMENT WITHOUT A NOTARIZED CONTRACT

You also have the possibility to match your payoff to the wood price. This is the most common contract because of the missing consideration of inflation. This ‘open’ contract warrants 50 percent of the wood price of that harvest year to the farmers. You receive 36 percent of the amount and Mama Earth gets 14 percent.

THE TREES OF THE MAHOGANY INVESTMENT ARE GROWING HERE

Come visit us! You can visit us anytime. We help you with the planning of your journey. Not only can you look at our Mahogany Investment with your own two eyes, but also get to know the country and their people. Email us in German or English.

Despite the good yields, you also invest into a social just project. Mama Earth provides jobs and earnings on the farms. Since the farmers get 50 percent and benefit greatly from the wood, your trees are in good hands and supervised by us.

THE STEPS OF A MAHOGANY INVESTMENT

  • You decide and mail us

    We need the desired number of trees, whereas the minimum amount is 200 trees and you must make a prepayment of one Euro per tree.

  • Preparation for the notarized contract (fixed investment)

    For the notarized contract, we need your complete address with zip code, birth date, marital status (married/divorced etc.), if you are married, we need the name of your wife, one or two legal heirs, each of their birth date, a copy of your ID or passport (scan per email or copy to the office)

  • The notarized contract

    Mit diesen Angaben erstellen wir den Notarvertrag, den wir zur Prüfung als PDF per E-Mail übersenden. In dem Vertrag sind bereits die gekauften Bäume aufgeführt. Wenn alle Angaben richtig sind, wird der Vertrag sechsfach per Post zugestellt. Alle sechs Ausfertigungen sind zu unterschreiben und nach Hamburg zum Notar zu senden (Adresse steht im Anschreiben).

    • Einen Vertrag erhalten Sie als Kunde zurück nachdem er notariell beglaubigt wurde.
    • Zwei Verträge hinterlegt der Notar beim Gericht.
    • Zwei Verträge archiviert der Notar (Adresse mit E-Mail-Adresse stehen im Vertrag)
    • Einen Vertrag archiviert die Mama Earth Foundation.

    With your information we draft the notarized contract and send it to you as a PDF file via email for checking. The number of trees is already listed in your contract. If all your information is correct, the actual contract will be sent out six fold by mail. You need to sign all six contracts and send them to a notary in Hamburg (address can be found in the letter).

    • As a customer, you will get one of the contracts after it got notarized
    • The notary records two of them
    • Another two are deposited at court by the notary
    • The last one gets archived by the Mama Earth Foundation
  • Transmission of the balance

    After about six weeks, the notarized contract will arrive via mail. With the receipt of the remaining sum within two weeks, the contract is legally valid.

RISK ASSESSMENT OF THE MAHOGANY INVESTMENT

Like any investment, our investment must withstand a risk assessment. Especially as a foundation, we are bound by much more strict regulations in regards of transparency and sustainability than conventional investors.

Forest fires

Due to the many rainy days, forest fires are almost impossible. Unlike in Europe or North America, here the humidity is constantly high. Damage caused by storms is very unlikely and has never presented any problems in the last 25 years.

Political system

As far as the political situation is concerned, as a local foundation in the Philippines, we are fundamentally better off than foreign investors. Nevertheless, we must keep an eye on the situation. There is no guarantee for development. The system is currently under development but not unstable.

Health of the trees

We do not leave the farmers alone with the trees. We have permanently employed foresters who are constantly on the move to check the stocks and keep records.

Currency

The exchange rate of Peso to Euro tends to fluctuate and we do not have any influence over it. A weaker Peso, of course, means a lower payout in Euro.

Flexible vs. fixed system

To minimize the risk even further, we have a flexible system in which you back out even before the period of twelve years is over. Conversely, we also have the opportunity to convey the contract to other interested parties.

Contact for the Mahogany Investment

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