price paid for teak increases the more
processed it is ...
What will happen to the land after the final
Are the plantations still certified by FSC?
When can we expect to receive some money?
What about the profit I was promised?
Is there any additional income for Forests
about specific risks of the financial market?
The price paid for teak increases the more processed the wood is. What further business fields do you plan to enter?
It could indeed by attractive to widen the
business along the value chain.
will happen to the land after the final harvest?
We have not yet
taken a decision. According to today’s
knowledge, it is possible to cultivate a second
rotation of teak trees based on the harvested
trees. Due to the fact that the roots are
already well-established, the growth of the
trees will probably be faster.
What we can promise, however, is that we will
look for an ecologically healthy solution.
Are the plantations still
certified by the Forest Stewardship Council (FSC)?
Since the end
of 2007, all our
plantations are certified.
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can we expect to receive some money?
of the revenues are due at the final harvest. It is not our intention
to sit on a pot of gold.
Any dividends, capital
repayments, or re-purchase of shares will be
decided by the Annual General Meeting of Forests
for Friends Ltd.
After 2026, when all the
plantations have been harvested and the land
sold for a second rotation, the value of the
shares at the time will be paid back to the
about the profit I was promised?
We expect you will get your investment back
plus a good profit. We cannot say exactly, how
high this will be, as it depends on many factors,
such as the market development of the price for
plantation teak wood.
Our very conservative budget expects an annual
value increase of up to 3 %. Respectable competitors
promise a return of 7 - 8 %.
there any additional income for Forests for
investigating various possibilities at the
moment. For instance, we could sell land that is
not suitable for growing teak. But we cannot come up with a
specific risks of the financial market?
We do not distribute a
shareholders are the owners of the company and
can decide on the management and the
distribution of the revenues.
The money for maintenance and management is put
aside and will not be used for anything else.
There will be no dilution
caused by new plantations.