Sustainable production of high-value timber

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MADERAS NOBLES DE LA SIERRA DE SEGURA

Maderas Nobles grows and sells lots of hard wood trees (e.g. walnut, chestnut etc) on managed estates in Alcaraz (Albacete) and Vincios (Pontevedra).  At the end of the growing cycle, the company takes care of the felling, uprooting and selling the timber on behalf of the customers. There is a 10% commission charge on the final sale value. It is also possible for the customers to sell-on their lots before the end of the cycle. Every lot of trees purchased is covered with the safety measures and guarantees required by law. The Walnut Lot, Biodiversity Lot and Chestnut Lot are products that generate a significant economic, ecological and social benefit. The full text of the agreements can be found at www.maderasnobles.net.

Sustainable production of high-value timber

WALNUT LOT

10 walnut trees • €3,690 (inc. taxes)

Location: Maderas Nobles estates in Alcaraz (Albacete, Spain)

Growth cycle: 20 years

BIODIVERSITY LOT

4 lime trees + 3 rowans + 3 cherries • €3,304 € (inc. taxes)
Location: Maderas Nobles estates in Alcaraz (Albacete)
Growth cycle: 22 years

CHESTNUT LOT
5 chestnuts + 2 trees of another species • €1,700 (inc. taxes)
Location: Estates owned by the communal forestry domain of Mano Común de Vincios in the Galiñeiro mountain region of Vincios (Pontevedra)
Growth cycle: 25 years

The plantation was inaugurated on 26th March 2007 as an agreement between Maderas Nobles, the Universidad de Vigo and the Vincios Mountain Community with the aim of replacing a eucalyptus monoculture with a diversified and sustainable plantation of native deciduous trees.

Environmental benefit

The ecological and sustainable plantations of Maderas Nobles de la Sierra de Segura generate new forest cover, oxygene, fertilize the soil and absorb carbon dioxide. In its 20-year growth cycle, each walnut tree will produce around 10,000kg of organic matter, 400,000 litres of water and 28,000m3 of oxygen. The Walnut Lot will absorb 10,000kg of CO2 in 20 years. The Biodiversity Lot, will produce 10,000kg of CO2 in its 22-year growth cycle. The Chestnut Lot, will produce 5,000kg of CO2 in its 25 years cycle. These benefits are the reason why these products are used in the campaign ResponsARBOLidad: +Trees for a Better Climate. The sustainable and renewable production of wood helps to reduce the impact caused by the timber industry on the tropical rain forests in other parts of the world.

Social benefit
The agro-forestry work, training and educational activities carried out by Maderas Nobles de la Sierra de Segura generate employment and economic activity in depressed rural areas. It also promotes quality tourism and ecological awareness.

Economic benefit
The gains on the initial investment are due to the sale of trees, both as timber at the end of the productive cycle or during the cycle, before the wood can be logged. During their growth cycle, customers may sell-on their trees to another customer (there is 5% commission for administrative costs). Customer can also request to Maderas Nobles de la Sierra de Segura to find a buyer for them (18% commission). The investment gains after selling the trees at the end of the cycle depends on the volume and quality of the timber produced and also on the change in price of high quality hardwoods during the period. The table below shows various possible out

comes. The technical reports and market studies currently available. These reports indicate volumes of timber production greater than those shown on the table and the price increase for high quality hardwood of more than 8% a year. The Walnut Lot, Biodiversity Lot and Chestnut Lot are not sold as financial products; they are agro-forestry products, and Maderas Nobles can not guarantee the final estimated value. Maderas Nobles guarantees the plantation of more trees than those sold to cover possible damages, and a bank guarantee on the capital put towards the maintenance of the trees, to ensure the plantation is properly managed during the length of the grwoth cycle.

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ESTIMATED

APRECIATION

Timber class (quality)

Current price of the timber

Volume of timber obtained

Annual timber price increase

Costumer return  (90%)

Expected annual apreciation

WALNUT LOT

10 walnuts

3.690 € • 20 years

________

1.200 €/m3

______________

800 €/m3

8 m3

__________

6 m3

8%

______________

6%

40.271 €

_________________

13.855 €

12,69%

__________

6,84%

BIODIVERSITY LOT

3 cherries 3 rowans

4 limes

3.304 € • 22 years

________

1.230 €/m3

______________

925 €/m3

8 m3

__________

6 m3

8%

______________

6%

48.146 €

_________________

18.000 €

12,95%

__________

8,01%

CHESTNUT LOT

5 chestnuts 2 other species

1.700 € • 25 years

________

600 €/m3

______________

500 €/m3

4 m3

__________

3 m3

8%

______________

6%

14.793 €

_________________

5.794 €

9,04%

__________

5,03%