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.
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.