Your return on investment (ROI)

The return on a forestry investment will be influenced by 5 factors:

  • The increasing demand of teak
  • The harvested volume of timber
  • Quality of the growing site and maintenance
  • The quality of the wood
  • Development of the wood prices internationally

With the calculation of the returns on investment, we base ourselves on historical data and representative growth curves for the Northern Zone of Costa Rica which represents an annual growth of 18-23 m³ per hectare per year.

Basis of the calculation:

  • Conservative future teak prices
  • Historical growth curve
  • Lot size of 10 units (1 hectare)
  • 10 units, participation of $ 30,000

Profit in US Dollars - All numbers in thousands of US Dollars

Age (yrs)

Net Wood Profit - 85%**
Yearly Increase
Log Timber (m³)

Cumulative Net Wood Profit
Yearly Increase
Log Timber (m³)

  0% 3% 6% 0% 3% 6%
8 years 6,576 8,088 9,888 6,576 8,088 9,888
12 years 9,914 13,323 17,753 16,490 21,411 27,641
16 years 19,557 29,583 44,218 36,047 50,994 71,859
20 years 102,421 184,984 328,479

 

Totals 138,468 235,978 400,338 138,468 235,978 400,338
ROI* 8% 10.9% 13.9%

* Return on Investment percentage

** Madera Viva charges 10% for Thinning & Harvesting costs and 5 % management fee, total 15%.
85% is the net wood profit.

Based on an investment of US$ 30.000 per hectare (2.47 acres).