Investment Model

Hardwoods like teak and mahogany are highly valued for several reasons. They are in very high demand and are becoming increasingly rare. The high demand, coupled with short supply, drives the values and prices higher every year. As the world’s population increases so does the demand for hardwoods and since most of the “old growth” timber has already been exhausted, the demand and value continues to rise. The value of the wood is also dependent on the state in which it is delivered.  A 20 year old “live standing” tree is still very valuable, however it ultimately needs to be harvested and shipped to a buyer.

Tropic Hardwoods not only harvests the trees but also mills them on site producing a rough sawn block. A “live standing” tree clearly has value but a rough sawn block has a much higher value. Our expert loggers and mill operators have the knowledge and skill set to achieve the highest ultimate value from a tree. Although this seems like a simple way to increase the final value, other growers lack the experience and mills needed to perform these tasks. Our ability to produce top quality trees that are skillfully milled into highly prized pieces, enables us to achieve the highest ROI for our clients.

With over 1000 acres of hardwoods scheduled to be planted in the next few years, our supplies will be more than sufficient to capture the attention of market buyers. Most growers only have a few acres of hardwoods available, and most have been planted years apart, creating a limited supply to bring to market at harvest.  Although still valuable, they lose the power of volume, which commands the highest prices. The global hardwood buyers would prefer to make one large purchase verses hundreds of smaller ones. This is just another reason why our value predictions are well above that of the average hardwood grower.

Investing in hardwood trees is not only safe and extremely profitable but it’s also environmentally responsible.  While it’s important to maximize return of investment, doing so in way that helps the environment is even more rewarding. Due to the fact that hardwood trees are so highly prized, they are being illegally logged in many countries. Unfortunately, these illegal logging operations have little if any regard for the flora and fauna. Burning thousands of acres of habitat to harvest a few trees literally destroys the populations of many species. Investing in a hardwood plantation actually helps stop the global deforestation that has been a plague on our world’s wild habitats.

When we prepare our land for planting we do it in the most responsible ways possible. We prepare the land by hand whenever possible, limiting the use of heavy machinery and leaving wildlife corridors and migration trail areas undisturbed. Nesting boxes are built to help keep birds undisturbed and flourishing. Creeks and rivers are left primarily in tact as to not disrupt the ebb and flow that has been naturally forming the land for thousands of years. Believe it or not but old growth jungle (existing) actually releases more greenhouse gases (GHG) then it captures due to all of the underbrush.  Once strategically cleared of the underbrush our plantations are planted with hardwoods

that capture more GHG’s then they release. Since these valuable hardwoods are not burned, the GHG’s are stored indefinitely, making it a sustainable and eco-friendly investment. We strongly believe that through strategic planning, we can successfully achieve a high ROI for our clients as well help to protect the planet, creating the ultimate win-win! By investing in hardwood trees you’re making an active contribution to protecting the environment because every tree planted helps to improve the global carbon footprint. Six hundred teak trees absorb approximately twenty-two tons of CO2 every year. That’s the equivalent to the CO2 emissions created by driving a car for 60,000 miles.