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How to make money from African mahogany forests

Forestry investments, in general, are restricted to large timber investors. There are large market players that are responsible for the annual planting of immense commercial forest areas.

As it is a low-risk and high-profit activity, it rewards investors who think about the long term.

Thus, large companies and foreign banks are currently the most interested in world forest development, since the activity presents itself as an excellent form of investment diversification. Sovereign wealth funds from several countries, pension insurance companies from the USA, Europe and Asia currently hold around US $ 150 billion in forest assets worldwide.

Commercial planted forests emerged many centuries ago in Europe, with the depletion of natural extractive reserves on that continent. One of the intentions of the Great Navigations of the 15th century was precisely the search for new sources of wood. It is always good to remember that in our country the first European commercial activity was the search for wood (brazilwood). In the USA and Canada, the timber industry flourished much later, in the middle of the 20th century.

Investment in planted forests in Brazil currently stands at R $ 8 billion and projections indicate that this number should expand by more than 50% by the end of this decade, according to the Brazilian Forest Service.

The main idea of ​​California Wood Investment is to participate in this great movement, having as partners people who want a long-term investment, thinking about their own retirement fund, without needing or depending on Social Security. Our goal is to bring the investor into this big business, without needing to have advanced knowledge of forest farming, without having to invest a large amount of money in land (an expensive liability in our country !!). In other countries, the large social security insurers use their clients’ resources for forestry investment. In Brazil, due to current legislation, the use of such resources has limitations on the part of insurers.

Why not use another strategy in Brazil, legally regulated and insured by direct contract with a forestry plantation company? Our investor will adhere to a direct investment contract, between company and individual. In this way, he finances the planting of a forest and is entitled to share in the commercial results from the sale of the wood obtained in that enterprise. He becomes a participant in a large market.

The return is long-term (around 20 years), but the profitability, which is between 15 to 20% per year (much higher than any investment in bank or equity available in the market), in addition to the low risk, create a series of very interesting attractions for the business.

The forestry sector has low volatility and offers good profitability for the long-term investor, that person who really thinks about the future and admits the possibility that the Brazilian Social Security is not really efficient in providing future benefits to those who participate in it, most of the time , thank you.

It is also important to highlight all the environmental and social benefits that investing in planting commercial forests can provide. When a commercial forest is planted in a certain area, there is a direct interference on the quality of the surrounding environment, since the trees positively affect the local environmental conditions, increase the absorption of water by the soil, feeding aquifers and springs, reducing drastically the effects of temporary drought in the Brazilian Cerrado.

They also contribute to the reduction of greenhouse gases, since it absorbs large amounts of CO2 from the atmosphere. One hectare of commercial African mahogany forest removes approximately 250 tons / year of carbon from the environment. By investing in mahogany you will also be reducing your “carbon footprint” for the environment.

At the same time, the forestry business generates jobs and income for thousands of people who are involved in the entire production cycle, from planting to cutting, from processing to marketing of wood products.

However, there is no risk-free business, as in any investment. In the case of African mahogany, the greatest risk concerns the productivity of the forest. Commercial mahogany forests, among other possibilities, are subject to diseases and pests and are influenced by the climate and other factors that can interfere with growth and even cause the loss of trees.

African mahogany is a tree that has few natural enemies and is easy to manage. It is also necessary to consider that, as in any sector, the world wood market presents its own oscillations. As it is an already mature market, with essential raw material for several economic sectors, its oscillation is considered low, with a tendency for price growth, given the scarcity of forest products.

Come invest in California Wood Investment. Protect your future and your family !!

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