INVESTING IN LUMBER > YOUR BENEFITS AND INFLATION HEDGES
A growing population and rapid industrialization around the world are the main factors leading to deforestation and subsequent regulation, leading on the other hand to raw material scarcity and higher prices.
As a plantation owner, you can take advantage of a number of benefits
Various scientific studies have shown that a systematically managed eucalyptus plantation with a planting density of 1,000 to 1,400 trees per hectare can over a few years yield timber ranging from 250 to 450 cubic meters depending on the climate. Of this amount, about 200 to 400 cubic meters of lumber is commercially exploitable. If the price of eucalyptus ceases rising, which is hardly foreseeable with today’s supply and demand for the wood, it could be expected that timber revenues will still yield a satisfactory annual return. If the market develops as forecast, the yield will be significantly higher.
All live forest plantations are managed in a proper and sustainable manner in accordance with strict environmental, social and economic criteria. Overall, only 3,500 hectares of eucalyptus plantations are certified in Paraguay. The number is growing due to sanctions from illegal harvesting.
Seize the opportunity in the timber market’s ideal situation
Prices of renewable raw materials have been steadily rising for years. This trend will be further aggravated in the future by a drop in supply and an increase in demand. S. A. Real Foresting Group and its partners invest professionally and carefully into sustainable forest management projects.
Lumber is a hedge against price erosion. Even in times of crisis, its value increases. The NCREIF Timberland Index, an international index for investors, has significantly outperformed the Dow Jones Industrial Average since 1985.
Certified wood attain the highest prices.
Rainforest legislation and environmental awareness are today driving the strong need for certified wood. However, only a few suppliers are able to meet the tough standards for achieving the highest quality wood.
https://www.youtube.com/watch?v=3zqNC6-flAI
