Projections - PDF by luckboy


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Native Species (Cocobolo, Sable, Acacia, Mahogany, Spanish Cedar, Purple Heart) This is a mix of various local species such as Cocobolo, Sable, Acacia, Mahogany, Spanish Cedar, Purple Heart and many others. By including various species in your planting you gain access to hardwoods, so valuable, they are sold by weight. Mahogany and Cocobolo for instance are almost unavailable to buy by the board foot and are more commonly sold by the ounce. The following projections will help illustrate the likely harvest schedule and yields from growing 200 native species trees on the plantations. The projections are based on a starting price of £0.55 per board foot. If, after you review these projections, you have any questions about us growing trees, for you, please feel free to call or email us. The harvest dates are for projections only, the actual dates will be up to you, the tree owner. We do not harvest any of your trees without express permission to do so.
Formaleta (Formwork) projections – 200 trees
Tree age 7 9 11 13 15 17 19 21 23 25

Number of trees harvested











Marketable wood per tree – board feet











Care and management fee











Net proceeds of each harvest











Cumulative Total











Table 1: This table shows the projected growth, harvests and yields from planting 200 Native mixed species trees. These projections are based upon a conservative lumber price of £0.55 increasing at an annual rate of 7% for the subsequent thinnings and the final harvest. The Care and Management fees (6%) are the fees we charge for growing and managing your trees, should you so choose. Harvests can be performed for any number of trees at any time you choose.

ETHICAL FORESTRY Ltd, Bristol and West House, Post Office Road, Bournemouth, Dorset BH1 1BL Tel: 0800 075 3010 Fax: 01202 366913 Email: Company registration no. 6455149. Incorporated in England and Wales.

Notes to projections
The projections in these tables, and the explanatory notes, are provided for you to better understand the process of growing and harvesting trees. While we believe these estimates of growth, costs and yields to be fair and reasonable, we cannot guarantee the future value of your tress, nor the lumber proceeds you will receive from their harvest. We encourage you to seek the counsel of an independent professional who can evaluate the reasonableness and accuracy of these projections. 1. The projections above are based upon a conservative lumber price per board foot for the first thinning increasing at an annual rate of 7% for the subsequent thinnings and the final harvest. 2. The projections in Table 1 are based upon the price of Acacia increasing at 7% per year. However, according to the ONF (Costa Rican National Forestry Office) prices for Acacia are increasing at a rate far higher Costa Rica has recently had to start importing timber as local producers cannot keep up with the demand. 3. Both the timing and number of trees harvested are your choice, based on a combination of our experience, the latest published silviculture practices derived form years of others’ experience in teak plantations and your requirements. Our professional foresters, who monitor the growth profiles of your trees in the plantations, will report on the condition of your trees and help you determine the actual harvest dates and number of trees harvested. Please also note that several additional months after any thinning or harvest will be required to mill, dry and grade your lumber and prepare it for the international export market if it is to be sold as boards. An additional year or more may be required for the earliest thinnings, because young tropical hardwoods are less known, or even unknown, in the world markets. 4. The most likely period of mortality or cull loss is during the first 2 years after field planting. Our foresters will examine your trees frequently during this period and, during the first 3 years, we will promptly replace, at no charge to you, any tree that is not healthy or in any way not growing properly. Once the trees are past approx 3 years, the mortality and cull loss will likely be essentially 0% because if a tree is lost, we can simply mill it into lumber to be sold. 5. The useable height and diameter growth estimates are based upon growth rates obtained in our plantations and plantations in the Caribbean and Central America. Our actual growth rates exceed these projections, we have removed 1.5 inches in diameter and one third in length to allow for wastage and a more simple calculation to be used. 6. Our estimated volume per tree is calculated by multiplying the diameter of the tree x the diameter of the tree (diameter2) times the usable height of the tree. These projections are based upon the volume of the trunk and include the additional wood volume that may be obtained from the larger branches in the later harvests. 7. The amount of marketable wood per tree is stated in board feet, a standard measure of wood used. One board foot of wood is one foot square by one inch thick (1'x 1' x 1"). There are 12 board feet in a cubic foot of lumber and 424 board feet in a cubic meter of lumber. The estimated amounts of marketable wood are based upon the estimated volume per tree in cubic feet, multiplied times 12 to obtain the number of board feet, and then reduced by 30% to allow for processing waste, which is sawing losses and damage to the logs while being harvested, transported and processed. We will likely achieve more efficient yields than those projected since everything is milled right on the farms, using the latest thin-kerf, high-yield bandmill technology. 8. Gross harvest proceeds – The estimated gross value of the lumber from each harvest is arrived at by multiplying the estimated value per tree times the number of trees harvested in that thinning or harvest. 9. Care and Management Fees are the costs of harvesting your trees, milling your logs into marketable lumber, drying your lumber, Care, maintenance and sale of your trees. If someone-else is harvesting/ managing your trees, these fees will not apply. However at 6% charge would be applied at harvest as we would need to supervise the harvest to ensure no damage is performed to others trees. 10. There is currently a 15% Witholding tax applied by the Costa Rican Government on all money taken out of Costa Rica for which you are liable. This is taken at source and NOT accounted for in the projections You should speak to your financial advisor for legitimate means of offsetting this against you UK Tax.

ETHICAL FORESTRY Ltd, Bristol and West House, Post Office Road, Bournemouth, Dorset BH1 1BL Tel: 0800 075 3010 Fax: 01202 366913 Email: Company registration no. 6455149. Incorporated in England and Wales.

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