The most important factor for Better Globe to be able to offer you a fantastic saving in the form of tropical timber is the biological growth. The trees starts out as small sprouts and develops over the next 20 years to giant tropical trees with a high value.
The trees that we work with in Kenya, is adapted to the climate, and when they get optimal growing conditions, they have an enormous biological growth. As you can read in our tree species link, one of our tree varieties is the Mukau tree, which is also one of our main sources of income. As you can see below the Mukau tree has a huge growth and thus turns into a great value. Finally, after about 7 years, income is created from Mukau trees since they thin the trees out and use the timer from the removed trees for the production of finished goods which then sells locally and internationally.
On top of the Mukau trees, the Acacia Senegal and Mango trees are very important income generating production for Better Globe. Both the Acacia Senegal and Mango trees will generate a profit over the years and both yield out product high in demand.
Further more than just the biological growth the demand for tropical timber is also a significant factor for the future prices. The global demand for tropical timer has been increasing for 50 years and FN is assessing from the growth in population that the demand for tropical timber will increase another 50% over the next 15 years!!
Furthermore the International Tropical Timber Organization (ITTO), over the last 30 years, has seen an average price increase of tropical timber of more than 5% a year and looking just at the price development from 1998 until 2007 the average increase in price of tropical timber was over 8% a year.
High Quality tropical timber is therefore a very demanded goods and will be even more demanded in the future.
Better Globe does not want to sell the timber to Asia or Europe. we want to create a local production of products directly in Kenya around our plantations. The reason for this is that in this way we create more wealth in the areas around the plantations and also increase the profit Better Globe makes with the products, thus giving our customers even greater certainty that Better Globe in the future can pay the return agreed.
Already today we know that the Mukau tree is fantastic for the production of high quality furniture and flooring and we have already tested a variety of products locally and therefore already know what can be manufactured from the timber locally in Kenya.
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