There Is No Future
in Trading Bamboo Poles

Has this statement caught your attention? Good, because lately, many investors believe that they will make easy money with bamboo plantations and trading bamboo poles. However, there are a few things the inexperienced bamboo investor should know before putting their hard earned cash in such promising bamboo investment opportunities.

Yes, it is true that bamboo is one of the fastest growing plants on earth. Yes, it is true that the market for bamboo products is booming (and will continue to do so for decades to come). Yes, it is true that bamboo plantations are one of the most environmental and sustainable timber investments available. 

But let me tell you a dirty little secret,... there is no big market for exporting round bamboo poles!

Let me explain... There are 2 types of bamboo growers. The first group are the ones that love bamboo in all its beauty and grow bamboo as a hobby or small scale local business, GREAT. The second group are forestry or eco investors trying to get the most bang for their buck, by trying to cash in on the bamboo hype.

It is the second group that needs an urgent wake-up call though. Because the secret of a good bamboo investment isn't only in the plantations itself, it's also in the ability to manufacture and distribute value added bamboo products! 

Ever wondered why value added bamboo products such as floors, kitchen utensils, laminated beams or composite panels are produced in countries where bamboo actually grows? It's all about the cost of transportation (especially these days when gas prices are sky-high). Giant timber bamboos are often used for these value added products and since they are giant (6"-8" in diameter) and hollow, shipping those round bamboo poles is extremely cost-inefficient! So how could a European or American based production facility compete against bamboo producing countries,... they can't.

Transporting Bamboo Poles

But isn't there a market for bamboo homes, furniture, fences, etc.? Yes of course there is, but keep in mind that building a house with round bamboo poles is at least twice as expensive as with standard building materials. Furthermore, who can build a high quality bamboo house with round poles? I'm sure you won't be finding more then a hand full of specialized contractors.

Bamboo joinery techniques are very complicated and time consuming, the natural durability of bamboo has very low resistance to biological degrading organism, and bamboo preservation methods for round poles aren't always that reliable. Last but not least sun and rain aren't exactly bamboo's best friend either. Outdoor bamboo fences, structures or furniture will crack and weather in a few months, bamboo in ground contact will rot within a year. I bet that's not the information you wanted to hear as a environmental conscious client right?!

Then Why The Bamboo Hype?

Simple, bamboo composite materials and particle boards are indeed sustainable and the solution to replace traditional timber products or even fiber-glass applications. The ecological aspect, strength / weight ratio, and even price could be far better then traditional construction materials. Furthermore, there is a huge market for bamboo bio-energy products. But there has to be a close interaction between bamboo growers and producers of value added bamboo products in the same region. A large team of experts in different fields will have to work hand in hand in order to succeed.

In conclusion: Ask your bamboo plantation broker in advance for his marketing and distribution plan. It is the most crucial aspect of any successful bamboo investment scheme! Most brokers rely on the fact that the market for bamboo products is growing, but have no strategy to sell your crop once the harvest should start.

Forewarned is forearmed.