You can find bamboo investment opportunities all over the internet these days, companies offering lease packages for bamboo plantations with very attractive returns. Unfortunately, many of these high yield investment programs are based on incorrect yield forecasts and unrealistic returns.
We have all heard about bamboo investment scams and forestry companies vanishing from the face of the earth after a few years. So why would you take the risk to lease or rent bamboo, if you could OWN a bamboo plantation instead!
I'm sure you've heard the expression; "If something sounds too good to be true, it probably is." Well, in the investment world, I say; "If something sounds too good to be true, it definitely is."
- 1997 Washington Times 3 June B7
Guadua Bamboo is the pioneer if it comes to providing bamboo investments services on the basis of OWNING your bamboo plantation for the full 100%. This revolutionary approach may require more resources than leasing a few bamboo clumps, but the outcome is much safer and definitely more rewarding.
Since it takes 8-9 years before a newly planted bamboo plantation is considered mature and reaches its full yield potential, most investors tend to forget that planting bamboo is still a forestry activity. Guadua bamboo is not a vegetable that is going to generate revenue in just one year! Any investment package that promises high returns from bamboo in the first years after planting is most likely a Ponzi scheme (which generally works for early investors until the bubble bursts).
Why our bamboo investments are different:
Guadua Bamboo provides investors all the necessary services to successfully own, grow and sell bamboo. Furthermore, you are, and will always remain in full control of your bamboo plantation!
Although Guadua angustifolia is native to South America and proven to be generating similar or higher revenues compared to traditional tree plantations, there actually exist very few professionally managed commercial Guadua bamboo plantations. Unlike teak, melina or eucalyptus for example, bamboo still does not have the same cash crop status among local growers, mainly because there are no regional institutes or companies that offers technical support and assistance for bamboo growers and investors.
The demand and awareness for green products and bamboo in industrialized countries is rapidly increasing, which forces businesses to innovate and create new eco friendly products and applications. The down side of this trend is obvious, the stress on natural bamboo forests, mainly in Asia, is becoming a big concern. Lame policies and corruption allow less conscious corporations to eliminate entire bamboo grooves with the blink of an eye, which brings us back to the main problem: Deforestation.
For those reasons bamboo must be cultivated on a larger scale and in a professionally managed manner. Mature bamboo can be selectively harvested on a yearly basis without re-planting, whereas traditional timber species are clear felled every 15-25 years.
Bamboo, and especially giant timber bamboos have the potential to substitute most to all conventional wood derived products in a sustainable way. Even high tech materials such as plastics, steel, and fiber glass could be replaced with a combination of bamboo fibers and ecological resins.
But, as with any business or investment, it is absolutely crucial to fully understand the industry you are about to invest in, failing to do so is putting all your faith (and hard earned cash) in the hands of a potentially inexperienced or unreliable bamboo grower, broker or trader.
Guadua Bamboo offers newly planted bamboo plantations for sale in the Valle de Cauca, Colombia at 22,000$ per hectare (property title in your name). All our bamboo farms are selected on optimal climate and soil conditions, fertility, topography and strategic location.
Guadua Bamboo can maintain your plantation for an optional maintenance fee of 500$ per hectare per year. Although annual maintenance is optional, we strongly advice to take advantage of this service since un-fertilized bamboo plantations may produce yields that are 50-60% lower than fertilized plantations. Therefore projected revenues may also be 50-60% lower.
We do not bind investors to any long term contracts with Guadua Bamboo. This means you are free to maintain and manage the plantation yourself or by any 3rd party forestry management company of your choice.
Guadua Bamboo can pay an annual projected 3,000$ per hectare for your bamboo crop, starting from year 8, and every year after that. A one-time additional payment of 6,000$ per hectare can be paid in year 7 for all biomass generated in the first 7 years of development.
Although each investor is free to sell their crop (or entire plantation) to any third party at any time, Guadua Bamboo will always offer to buy all bamboo crops from their investors on an annual basis.
Please remember that buying one of our newly planted bamboo plantations is first and foremost a real estate investment, not an "investment package"! The value of farm land instantly increases when planting bamboo and will substantially increase once the plantation has matured.
We do not ask you to invest in our company, nor would we want you to gamble with your savings. We simply provide a safe and secure opportunity to own a professionally managed bamboo farm, and help you earn realistic returns from those bamboo crops. Why are our numbers realistic? Because these are the market prices we currently pay when we harvest our bamboo from 3rd party plantation owners. In other words, just plain and simple experience!
Projected Revenue (Basic Conservative Estimates)
(All Planting Costs incl.)
|8||Biomass + Poles||9,000|
|9||Biomass + Poles||12,000|
|10||Biomass + Poles||15,000|
|11||Biomass + Poles||18,000|
|12||Biomass + Poles||21,000|
|13||Biomass + Poles||24,000|
|14||Biomass + Poles||27,000|
|15||Biomass + Poles||30,000|
1) What happens after 15 years?
You will continue to earn 3,000$ per year per hectare since bamboo plantations keep producing stems until mass flowering occurs (every 60-100 years).
When gregarious flowering occurs, bamboo plantation may die after seed setting. This period of seed setting usually continues for 3-5 consecutive years in wich new seedlings re-populate the plantation. These new seedling again have a life cycle of 60-100 years.
In conclusion, a bamboo plantation has the capacity to produce timber forever, which is proven by the current presence of native Guadua forest in Colombia, first "discovered" by Spanish Colonials in the 16th century. However, ancient writings dating back as far as 9,500 years ago already indicated the use of bamboo in these areas of Ecuador and Colombia.
2) Aren't there price increments for bamboo each year?
Yes there are, and investors will always receive the most competitive prices. However it is impossible to predict the market price for bamboo in say 10 or 15 years, therefore we keep our projections as basic as possible. Same is true for annual maintenance costs, which may also increase over time but since we only work with annual renewable contracts, the investor will always know in advance and be able to decide on new agreements with Guadua Bamboo on an annual basis.
3) How can I increase my annual revenue?
To increase annual revenue of your plantation, owners will need to establish additional manufacturing facilities to add value to their raw materials. This can go from producing simple handicrafts to the production of industrial engineered panels, floors, beams, etc. Obviously this approach will require much more resources, know-how and involvement. Guadua Bamboo does not offer consultancy in this regard but can help to promote and distribute the final products.
4) Are there any discounts for larger plantation purchases?
Yes there are, discounts apply for 100-200-300-400 and 500 ha plantations. Guadua bamboo plantations of min 500 ha are also eligible to apply and receive carbon credits.
5) What about taxes?
New forestry plantations and sawmills, are granted a permanent exemption on income tax when they are registered with the Ministry of Agriculture. Property taxes are levied on the cadastral value of the properties as assessed by the municipalities (between 0.4% - 1.6% depending on the location). We also have specialized accountants available to consult or assist you with all tax related issues.
6) Can I sell my plantation?
Yes, you can sell your plantation to any 3rd party at any time, or have us advertise your farm here on GuaduaBamboo.com. Producers (big and small) of value added bamboo products are always looking for opportunities to purchase and control their own source of bamboo. Remember that very few manufacturers grow bamboo in advance. Buying a mature plantation is often their best option to guarantee a continuous supply, and to avoid fluctuating market prices of the raw material in the future.
7) Why Colombia?
Colombia has the most advanced bamboo industry in Latin America, and was the first country in the world to have FSC certified Guadua bamboo forests under sustainable management. A lot of pioneer work in bamboo construction and engineered products has been conducted by National universities and private enterprises. Ongoing scientific studies also continue to reveal the astonishing structural and mechanical properties of Guadua angustifolia which can be applied in countless high tech uses and applications.
Apart from its long history with Guadua bamboo, Colombia is also one of the fastest growing economies in Latin America and the 5th safest country in the world to protect its investors. The country has made a 180 degree turn by successfully fighting terrorists groups and drug cartels that once dominated the country, and is now emerging as a regional economic powerhouse built on foreign investment and trade.
For our plantation projects in Colombia, we collaborate closely with Guadua forestry engineers, designers and industrial engineers from the National University, in order to bring more innovative bamboo products to the market for export to Europe and the United States.
For example, Guadua Bamboo owns the exclusive licence for a 100% ecological and formaldehyde-free resin which, in combination with the Guadua fibers, results in super strong and durable products (surpassing conventional wood, steel, and plastics). Our strategic European partners, who can use your crop to manufacture their bamboo particle boards, composite and biomass products, buy all their raw bamboo materials from Guadua Bamboo, while we buy from our partnering plantation investors.
In other words, we have created a full circle, secure bamboo business model which is beneficial for every party involved. Additionally, we also create a lot of new direct and indirect employment in rural areas which need it the most.