• Teak Investment

    Our Teak Investment offers a flexible duration of 3 to 15 years with an interest up to 12 percent. Invest into environmental protection, sustainable forestry and social help.

    nquire teak investment without obligation

TEAK INVESTMENT IN SHORT

Teak has been experiencing steadily increasing demand for years. This noble wood is a popular material for furniture or building material.
Again we ‘work’ according to a proven pattern for years:

  • The land owner gets 50 percent of the yield,
  • The investor gets 36 percent
  • And 14 percent remain for other project of the Mama Earth foundation, which also takes over the management.

A teak seedling costs only 16 Euro. If those seedlings do not grow, for whatever reason, they will be replanted at our expense. In order to let them grow into thick trunks, our certified foresters plant the trees at a distance of 5 x 4 meters, ie a maximum of 500 seedlings on one hectare.

Eine neue Teak Plantage von Mama Earth

OUR FLEXIBLE INVESTMENT

Benefits for you

Possibility of dropping out after 3 years
Interim distribution through the sale of cut branches
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
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

TEAK INVESTMENT IN DETAIL

Is a teak tree profitable as an investment, if you only get 36 percent of the yield? Of course, because we leave enough space for each tree to grow. A 15 year old teak tree (32 centimeter in diameter, 15 meters tall) contains about 0,6 cubic meters (solid) usable wood. Currently the price for this example trunk amounts to approximately 12.500 Peso (250 Euro, rate 50,00).

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 50 Peso. In case we sell one trunk today, the equation would look like this: 250 times 50 Peso = 12.500 Peso. These 12.500 Peso are divided into 6.250 Peso for the farmer and 4.500 for the investor. 4.500 Peso equal 90,00 Euro. In one sentence: Your 16 Euro grow into 90 Euro. In other words, your money earns you 12,2 percent of green and social interest.

We do not need to deforest the trees midway, because they get all the necessary nutrients due to the space between them. You still receive payoffs midway because of the utilization of the branches into cutting boards, gift boxes, flagpoles, etc. How high these payments could be, we currently can not say. But you do not have to keep your trees for 15 years. From the third year on, you can offer them again in our tree market and earn through them again.

TWO POSSIBLE WAYS OF INVESTMENT

Fixed investment with a notarized contract

You invest 16 Euro per planted tree and get back 90 Euro after 15 years. Including a notarized contract that identifies you as the owner. The minimum amount for an investment is 200 trees. Fast payoff through the utilization of cut down branches.

Flexible withdrawal

15 years are a long time in which many things can happen. But you do not need to keep your trees for 15 years. After the third year, you can offer your trees in our tree market and earn through your Teak Investment after a short amount of time.

THE ART OF TEAK PLANTING

We provide more space for the tree than similar suppliers. Some plant 1.000 trees or more on one hectare. Our foresters see no problem in that, if the trees are young and the root balls are still small. With 1.000 trees per hectare and a planting density of 2,5 x 2,5 meters, each tree has 6,25 square meters, at three meters depth 18,75 cubic meters to the ground available. According to our foresters that is far too little to provide a strong tree with the enough nutrients. Therefore, after a few years, the plantations are cleared with no significant yields, just to feed the remaining trees more nutrients that they had to share in recent years.

Giving a tree not enough ground space is like a flower growing in pot that is too small. After some time, the root ball takes up the whole space of the pot. The soil in the pot still provides enough supply, but the tree will not grow any taller this way. A good gardener repots the tree into a bigger pot with more soil. It is not that easy when it comes to trees. From the beginning we give the tree space that is three times bigger: 60 cubic meters. This way we are on the safe side for a healthy and strong growth.

Or think about in differently: If we were to plant twice the number of trees, our teak tree would cost only half of it. A starter package of 150 trees costs 2.400 Euro including a notarized contract.

THE STEPS OF A TEAK 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

    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

    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).

    • 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.
    • 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 (address with email address are shown in the contract)
    • 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 ASSEMSSMENT OF THE TEAK INVESTMENT

Like any investment, our teak 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 withdrawal

To minimize the risk even further, you can withdraw from the Teak Investment after three years.

THE SOCIAL COMPONENT

There is no need discussing that tropical woods (teak, mahogany, etc.) are in high demand worldwide, which can no longer be ‘served’ by the remaining forests due to severe damage by depletion. Dodging onto local woods could be a solution when those provide hardwood of comparable quality. You cannot use poplar wood for furniture. It is only suitable for chipboard and for heating in form of pellets. You need to use high quality wood for durable furniture, whereas the prices for European hardwoods exceed that of tropical woods by far.

Wood, in our case hardwood, is an indispensable source of income for the tropical countries. The most effective argument of environmental organizations is that nothing remains of the yield for the plantations of the local people. They have a job, which is good, but they do not earn anything.

Für die Tropenländer ist Holz, und in unserem Fall Hartholz, eine unverzichtbare Einnahmequelle. Dass hier schlagkräftigste Argument von Umweltorganisationen ist, dass von den Renditen der Plantagen der Bevölkerung vor Ort nichts bleibt. Die Menschen haben einen Arbeitsplatz, was sehr begrüßenswert ist, aber an der Wertschöpfung verdienen sie nichts.

Mama Earth’s approach goes deeper:

Die Farmer verdienen auf ihrer Scholle Geld und profitieren zusätzlich am Wertzuwachs des Holzes, sogar mehr als alle anderen Beteiligten. Gibt es keinen Nachteil? Doch, auch den gibt es! Das Programm von Mama Earth ist sehr viel arbeitsintensiver als eine Plantage zu bewirtschaften. Zum Beispiel muss unser Monitoring-Team viel mehr Aufwand treiben um die Bäume zu kontrollieren, die nicht wie Zinnsoldaten in einer Reihe stehen. Da wird gemessen, beschnitten und geklettert. Kein Baum wird ausgelassen.

The farmers earn money on their land and in addition, profit from the added value of the wood, even more than any other involved party. Is there no disadvantage? Yes, there is one. The program of Mama Earth is much more labor intensive than farming on a plantation. For example, our monitoring team has a lot more to do to check on the trees that are not standing in a row like soldiers. They measure, cut and climb. No tree is left out.

Contact for the Mahogany Investment

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