The basic idea of all our projects is to allow the production of wealth to be able to reinvest in the entire project.
Planting forests is the most important and expensive thing today if there is no simple way to refinance the project. When you think about planting forests only using non-refundable resources, that is, money that goes into the project and that never needs to be returned, it may seem easier to sustain such a project. It turns out that it is not easy to find someone who wants to finance the planting of forests in the amount that the world needs to really make a difference against climate change and who is willing to pay this bill for as long as necessary (years at least), without worrying about with return of any kind. To make any significant impact on the world, we have to plant billions of trees, even trillions, and not just drop seeds from planes. A forest is something complex that needs to be planned carefully and needs care in its first years of life, therefore, it is not cheap to maintain a large enough project, for a long enough time, without thinking about having some return that helps to maintain the live project.
For this reason, in all our projects, we establish premises so that the forest can generate wealth. Wealth to reinvest in planting more forests and wealth for those involved in the project, who may be, for example, the owner of a degraded area that we want to reforest. When we offer a financial return alternative in reforestation for the landowner, it is much easier to convince him to reforest his property. The financial return alternatives are several. It could be the exploitation of agroforestry (eating forest). It could be the exploitation of part of the planted forest, cutting wood and selling wood. It could be the exploitation of the biodiversity of native trees, planted for this purpose. Anyway, there are several ways to obtain a financial return for the partners involved, all of them, and whenever they exist, it will be much easier: maintain the project for years, attract people to participate in the project, preserve native forests, prevent illegal exploitation of wood and many other benefits can be enumerated when a project is self-sustainable from an economic point of view.
Return per project
The return will depend on what the contractor wants in relation to the project. Some contractors just want to plant the forest and let it grow without exploitation, so everything will depend on what the contractor wants with the forest.
Agroforestry (eating forest):
Return depends on what will be planted in the agroforestry and how it will be exploited. An agroforestry can have returns ranging from selling food to exploiting the biodiversity that can be extracted from planted trees.
Reforestation to recover degraded areas for third parties:
Expected returns for the 8th, 10th, 12th and 18th year.
Outsourcing of our entire structure for planting commercial forests:
Exclusive return of the contractor and, it depends exclusively on what the contractor wants to produce.
Partnership for planting forests:
Average expected return of BRL 2,630 per cubic meter produced. Currently, prices per cubic meter of African mahogany, which is our main raw material, range from BRL 2,000 to BRL 4,000 per cubic meter.