The prospective profits and returns are based on the growth and quality of the trees selected by their high productivity cultivated under intensive agricultural conditions, and also the rise of hardwood prices. The final return of the investment will depend, therefore, of three variables, the evolution of the price of the wood in the moment of its sale, the quality and volume of the resulting wood. Past returns don't guarantee future yields.

Decomposition of the Yield and Returns


The profitability is subject to three components:

1. Volume of woods obtained

It is obtained 9-10 annual% coming from the organic growth of the own tree. The growth of the tree takes place in a natural way, although the pursued objective is that this growth is carried out to the biggest possible speed, benefits are obtained this way yearly by this concept around 9-10%.

2. Revaluation or increase of the price of the woods

The historical data show that revaluation in the last years has been of above +10 % annually (see and consult ITTO, International Tropical Timber Organization www.itto.or.jp ).

The available historical series for the variation of prices of the woods along the last 180 years throw +2% above the variation of prices of the rest of the raw materials(Chicago Mercantile Exchange), there is not any certainty that the prices of the wood will maintain their increment. Nevertheless, the offer and supply or forest mass everyday is more limited for woods of high quality, at the time that the demand grows day by day, it allows to be considered that the price of the wood will continue to grow in the long term.

3. Quality of the wood

To get quality and especially vigorous trees with good quality and wooden quantity in a certain cycle, is achieved by experienced and highly qualified forest engineers and technicians. Our engineering department studies in a continuous way the evolution of the plantations to apply the best techniques in order to maximizing this growth and quality in the mark of the sustainable development, achieving high, easily understandable timber yields over the 16 year harvest cycle. The responsibility lies with experienced and highly qualified engineers and technicians. Together with them we are establishing itself as a key player in this new market with its demanding and innovative expansion concept.

All ecoBosques plantations are negotiating certifications that guarantee a high quality level, as well as an environmental administration and socially responsible for the plantations. At the moment the market demands more and more certifications as guarantee.

The minimum investment amount supposes a payment of 3.500 €, which includes the purchase of 10 trees of the species Teak, and 3.300€ for Oak, all included, embracing all the necessary activities for the correct growth of the trees for the obtaining of the wood of the maximum quality and the biggest volume. Prices for the valuable and precious teak and noble woods have been increasing for decades. The shortage of teak on the one hand and the ever-increasing demand on the other favorably influence the trend of teak prices.

Every investment entails financial risks. This also applies to investments in sustainable ecoBosques products. ecoBosques points out that the expected returns stated on this website are based on knowledge, experience and facts from the past and on assumptions regarding future developments. ecoBosques therefore explicitly does not offer any guarantees for returns that may be achieved in the future. ©2005 ecoBosques.