Even though all experts believe that the prices for timber will continue to increase for the next 12 years, we have also made a prognoses based on an annual price DECREASE of 4%.
Your Paulownia Investment after 12 years:
|
Plot Size
|
Number of Trees
|
Investment
|
Projected Return
|
ROI
|
| ½ Hectare¹ |
300 |
|
|
|
| 1 Hectare² |
600 |
|
|
|
| 2 Hectare² |
1200 |
|
|
|
¹) You will be leasing the land, not owning it. Projected return comes from sale of timber only.
²) You will be purchasing the land (freehold). Projected return comes from sale of timber and land. If you invest in 2 hectares you can pay the costs for Care & Maintenance in 4 yearly rates of € 3,500.
Your total investment is then € 64,000.
-
In the table above we have taken the current price of € 430 for Paulownia Grade A, and € 324 for Paulownia Grade C, sawn and dried wood that is 12 years old. We have calculated that 60% of the timber will be grade A and 40% will be Grade C.
- In the table above we have calculated an annual price DECREASE for timber and land of 4%.
-
We have calculated a volume per hectare of 250 m³. Since we estimate that 100 trees per hectare will not have grown sufficiently, we only calculate 500 trees that can be harvested.
So 500 trees x 0.5 m³ per tree, yields 250 m³ of timber.
-
As with our Robinia investments, we have calculated 20% harvesting, drying and processing costs.
- All hectares will be irrigated to supply enough water throughout the summer season, when Paulownia grows the fastest.
