Here I have made calculations and research on the sustainability of the returns that Better Globe promise and I really must say, they have put the returns at a great level for everyone involved. We investors make a good return, everyone in the chain gets paid well and Better Globe makes more than enough money to keep the business running and help more people to get out of poverty.
The trees and the returns
The promised returns from a tree is 2.55€ per year from year 5 until year 19, then 170€ when the tree is cut down after 20 years. Are those numbers realistic?
Let’s do the math and check it out.
Acacia Senegal – Produces gum arabic
Gum arabic is used primarily in the food industry as a stabilizer
The price of gum arabic in 2015 was on average 3.5€ per kilo.
Acacia Senegal trees start producing gum arabic when they are about 5 years old and one tree gives 2-4 Kilos of Gum arabic per year, they live for 25-30 years. So if we count on an average harvest of 3 Kilos per year, that will give over 10€ and cover the 2.55€ that Better Globe promise to pay us investors, with good margins.
Apple mango tree – Grows well in dry climate, produces mangoes
The mango trees start producing fruit after 3-4 years and one mango tree produces 200-400 Kilos of mango per year. I don’t know exactly what the price is for a kilo of mango but I´m pretty sure that even if the harvest would be 100 kilo per year, that is well enough to pay us investors the promised 2.55€.
Mukau – Hardwood tree (similar to mahogany) used for furniture, parquet floors, doors, boat interior etc.
One 10 year old Mukau tree gives about ½ m3 of timber and a 20 year old Mukau tree gives about 1 m3 of timber. In 2015 the price was 700€-850€ per m3 for this kind of tropical wood (African Kiln Dried Mahogany).
Like with the cash crop trees Better Globe seems to have good margins to be sure they can deliver the promised 170€ per tree on the 20th year.
So now let me ask you, what’s your backup plan?
If you look back at your life, how fast did the past 5 years go? or the past 10 years?
What I’m saying is that time goes really quick and I know that you like everyone else wants to make quick money, I want that too. Unfortunately that doesn’t always happen, so it’s good to have a back up plan.
Owning some trees makes me and tens of thousands of other people sleep good at night because we know that no matter what happens with all the other projects and investments, our trees are still growing and producing income for us.
I Invest about 10% of my income in trees plus I buy donation packages for my “Doing good” money. That way I know that in 20 years when the trees are bought back by Better Globe for 10 times the initial price I will get the same amount of money every year as my income is today. PLUS, I’m making a 15% return every year after 4 years.
If you ready to start buying trees and donation packages Click here
If you want to see how many trees per year you need to buy to get the return that you want Click here
OR get back to the Better Globe main page