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“Import / Export of teak averaged 9.7% growth over 17 years”
- UNITED NATIONS |
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“Wood outperforms
conventional markets like bonds, gold, real estate, stocks and indices. This has been the best
investment I’ve ever made”
Peter Chadwick, Sales Manager, London UK.
“World consumption of industrial wood is predicted to rise 60% over the next 5 years.
Global Green Services has provided me with a solid, quality investment”
Louise Elkins, Business Owner, Manchester, UK.
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Frequently asked questions
Can my trees be uniquely identified in the field?
Yes. You will receive a lease agreement on the land your trees are planted on detailing the exact location.
How are the decisions made as to where to plant the trees?
Before buying any new land, soil reports and bore-holes are taken by qualified professionals and the results studied to see the suitability of the soil for the trees we are planting. Other factors such as access for milling lorries, drainage and the natural topography of land are also taken into account.
Are the trees insured?
No, the trees are not insured. The likelihood of losing more than the 15% mortality and cull loss (already taken into account)is extremely unlikely.
Who owns the trees?
As the lease holder of the plot, you do.
What reports will I receive?
After your trees are planted in the field, you will be given your ownership certificate showing the quantity, species, field, farm and year of planting of your trees. Once a year, you will receive a foresters report detailing the growth of your trees, along with appropriate, individual action that needs to be taken.
You will then decide when and how many trees you wish to harvest. After each harvest you will receive a record of the number of trees harvested.
Can I see my trees?
Yes, contact your management company which will arrange a time for you to visit your trees.
What updates will I receive?
The recommended management companies will keep you informed as to the progress of your trees, the environment, any new developments and any special offers between one and four times a year.
When are the trees planted?
The trees are moved from the nursery to the fields during the rainy season - normally early June (once the rains are more regular).
When will the first harvest be?
We project that the first commercial thinning harvest is likely to be in the 5-7th year after field-planting, but will depend on the growth of your trees, followed by additional thinning harvests approximately every 4 years and continuing until the final harvest in about the 25th year.
What if I need cash before my trees are harvested?
You have the right to sell, harvest or transfer your trees at any time to whomever you choose. We will be happy to assist in preparing appropriate transfer documents. We cannot guarantee the sale or value of your trees, but because we are constantly in contact with tree owners and others interested in owning trees, it is possible that we may be able to help find a buyer for your trees.
Are my personal details held confidential?
Yes, due to the Data Protection Act, no personal information is passed to any third party by us or your management company.
Is any existing forest being cut down to plant trees?
No. Trees are being planted only in areas which have been previously deforested - primarily former pasture.
What would the return on money be if left in a deposit account for 25 years?
It is difficult to predict what future interest rates on savings accounts will be. However, as an example, if you were to put £10,000, approximately the price of 200 Teak trees, into savings today at 6% compound interest and allowed the interest to accumulate for 25 years; you would have a total of £42,919 at the end of the 25 years. That compares to the £123,446.00 projected cumulative net
harvest proceeds over the next 25 years (Not IN 25 years!).
How politically stable is Costa Rica?
The World Bank has given Costa Rica an excellent bill of overall political and economic health. At its annual conference in El Salvador, the bank lauded the country as possessing "one of the most stable and robust" democracies in Latin America. It went on to praise the Costa Rica's "healthy economic growth rate" and "some of the best social indicators" on the continent. One thing that adds tremendously to Costa Rica’s stability is its lack of an army. Back in 1948, the country abolished their military in favour of spending on universal health care. More North Americans live in Costa Rica than in any other Latin America Country. The government of Costa Rica is very encouraging to businesses starting reforestation plantations and offers various incentives.
For example, if you invest in reforestation, you can apply for residency in Costa Rica.
Does Costa Rica suffer from Hurricanes?
Hurricanes have occasionally hit the Caribbean side of Costa Rica; however an 11,000 ft mountain range that runs north to south through the centre of the country shelters the Pacific side where the tree farms are located.
Are Forest Fires a problem?
Forest fires are not normally a problem in the humid tropics due to the moisture content in the air. Teak is very resistant to fire. Trees which are over 4-6 meters high are not normally damaged by moderate forest fires. Appropriate measures are taken to prevent forest fire; weeds and vegetation on ground level are removed before the dry season, firebreaks are built between fields and 24 hour surveillance is provided by the resident foresters.
Is flooding a problem?
All new teak is planted in undulating terrain, which is not exposed to the dangers of sustained flooding. Flash flooding from storms may occasionally occur, but is not generally detrimental to the growth of the teak trees.
Will too many Teak plantations reduce the value of the hardwood?
Harvesting of tropical hardwoods from the natural rain forests will have to stop, if not for any other reason than that there will be no more to harvest. Because only 1% of tropical hardwoods come from plantations, for the current demand for tropical hardwoods to be satisfied in the years to come, many more plantations will have to be established. Most industry experts expect that the price of tropical hardwoods will skyrocket in the not-too-distant future, due to scarcity. All of our estimates are based on a very conservative increase in price. There is little chance that the demand for tropical hardwoods will drop. They are in very high demand now and have been for generations. They are essential for indoor and outdoor furniture, flooring and paneling, decking,and shipbuilding. Buyers from other parts of the world are now having difficulty finding enough teak in Costa Rica. There is no sign of tropical hardwoods being overproduced. For this to threaten the plantation, it would have to have already started. Unlike selling a product that is manufactured, there is no way to speed up the development of a tree. There is a chance that some trees will have to be sold during a time of recession, which means you might not receive full valuation. You could be forced to harvest so that you do not lose the growth of nearby trees.
However, if you are capable of harvesting your own trees and storing the wood for a year or two, you can minimize this risk.
Are there any diseases to be aware of?
There are no known problems with pests or disease within Teak generally, however, be reassured that your trees will be constantly monitored by your management company and any appropriate action would be taken quickly.
Terms and Conditions
Click here to view our terms and conditions
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