Buying trees : returns & calculator
See how your investment can grow
The rate at which your trees will grow is not an exact science but our experience and knowledge enable us to make the following projection. You can see how your trees should grow over time.
Growth rates for Teak trees (not to scale)
From the chart below you can see how the value of your trees is projected to grow and the estimated returns that they will generate.
Tree values chart
| Tree age | 0 | 7 | 10 | 13 | 17 | 21 | 25 |
|---|---|---|---|---|---|---|---|
| Number of trees before harvest |
100 | 85 | 60 | 42 | 27 | 17 | 11 |
| Number of trees harvested |
15 | 25 | 18 | 15 | 10 | 6 | 11 |
| Usable tree height - metres |
- | 6.7 | 8.9 | 10.7 | 12.3 | 13.5 | 13.8 |
| Tree diameter - cms | - | 17.9 | 25.6 | 30.7 | 38.4 | 46.1 | 51.2 |
| Volume per tree - m3 | - | 0.06 | 0.15 | 0.26 | 0.47 | 0.75 | 0.95 |
| Marketable wood per tree - board ft |
- | 23.83 | 64.74 | 111.94 | 201.33 | 318.47 | 401.56 |
| Estimated price per board ft |
- | £1.08 | £1.29 | £4.27 | £5.39 | £6.80 | £8.58 |
| Value per tree | - | £25.80 | £83.48 | £477.53 | £1,084 | £2,165 | £3,446 |
| Gross harvested proceeds |
- | £645 | £1,503 | £7,163 | £10,843 | £12,992 | £37,916 |
| Harvest and processing costs |
- | £64 | £150 | £716 | £1,084 | £1,299 | £3,791 |
| Net harvest proceeeds |
- | £580 | £1,352 | £6,447 | £9,758 | £11,693 | £34,124 |
| Management fees | - | £64 | £150 | £716 | £1,084 | £1,299 | £3,791 |
| Investment proceeds | - | £516 | £1,202 | £5,730 | £8,674 | £10,394 | £30,333 |
| Cumulative net proceeds |
- | £516 | £1,718 | £7,448 | £16,123 | £26,516 | £56,849 |
GGF has assumed that the price of teak will increase by 6% per year, the company has made these assumptions based on:
- Teak prices in the past 15 years have risen at more than 7% per annum compounded.
- Teak prices in the past 12 months have risen 15% in the premium log categories.
- Illegal felling of teak in West Africa and Indonesia and other countries is on the rise, a clear indication of rapidly rising prices and rapidly falling supply.