In a previous post, I described this beautiful tree called Eucalyptus Grandis, commonly known as blue gum. In that article, I stated that the most important aspect of this tree for a commercial tree grower is more about its financial benefits rather than ecological aspects. In the present article, I will extend on my description a little more. I’ll show you some notable reasons you should consider investing in Eucalyptus Grandis.
Why am I sharing this?
As I write this particular blog post, my nursery is done and the seedlings have started coming out to be planted on an eight-acre piece of land located in Homa-Bay County, Kenya. But, I cannot forget to mention that this is my fourth year of being jobless after graduating from the university. Therefore, as you may guess, I started this commercial venture as a way of creating myself a job for me. In the process, I have also been able to create work opportunities for other young people who help me with handling tasks such as nursery management. Thus, we’re talking about something am already doing. My hope is that after reading this post, you’ll be able to discover how you can transform you currently idle piece of land into a multi-million worth property with blue gum.
Low capital requirement
Whenever I tell young people about commercial trees as a form of investment, they almost always have same claim; “But I don’t have the capital!” The interesting thing, however, is that most of those who use this claim actually have large parcels of land, which is the most important capital they need to start a commercial tree project. I know of a young man with over 7 acres of land in one of the most agriculturally productive regions in Kenya, yet, he never sees this important asset as capital.
Dear reader, investing in eucalyptus has very low capital requirements. In fact, it is possible begin with zero cash provided you’re ready to pay the price including physically working on your land yourself. So, your expenditure will cover seeds or seedlings, transportation, planting, paste and disease controlling, and fencing (if necessary).
Once your seedling are transplanted in your farm, you won’t incur any costly maintenance. Just make sure you plant during the onset of the rainy season. Weed the seedlings once or twice then wait for your piece of land to transform into a multimillion-worth asset as you watch.
Timber is on high demand
Have you ever wondered why you’d to pay too much for your wooden furniture? What about the timber for your roofing? How much did the hardware guy demand from you? A lot, right?
That’s because blue gum timber products such as firewood, furniture, and poles (both for fencing and electricity transmission) are extremely expensive. The average cost of a healthy 10-year old eucalyptus tree today is approximately $100 (KSH. 10,000) according to timber producers in Kenya. About a decade ago, the cost was $50 (KSH. 5,000) according to FAO. In other words, the cost of a mature blue gum tree has increased by a double digit in just 10 years.
A study by the Kenya Forest Reserve found that the local demand for timber in Kenya is too high that every single year, Kenya has to import over $7 million worth of the product from Tanzania to help meet the rising demand! KFR also determined that the demand for timber from blue gum is driven by the rising real estate investment in which blue gum is a vital component.
Needless to mention, blue gum (E. grandis) poles are used in power and signal transmission. This means that as Kenya becomes more industrialized with projects like Rural Electrification, consumers must prepare to pay more for timber products.
That’s good news to commercial tree growers: companies will be on the look-out for them!
Commercial tree growing is a lucrative business
Do I need to repeat that? Yes. It’s that simple. As I have already pointed out, eucalyptus farming is a very lucrative business, but an investment that remains unknown to and ignored by many people.
A eucalyptus farmer told me that an acre of land can yield a mind-blowing $300,000 (about KSH. 30 million) in just 10 years. Is that statement is believable? Okay, let’s do the math:
Assume you have an acre piece of land. Using a spacing of 2.5m x 2.5m, your one acre piece will accommodate 2500 fast-growing blue gum trees.
After 3-5 years, you can sell a single tree for $30 (about KSH. 3,000). It means you only need 5,000 mature plants to make 15 million within 5 years. Sounds crazy, but that’s how money grows on trees.
To understand how profitable commercial trees are, you can watch a former Limuru member of parliament, George Nyanja talk about this topic in here.
Contribute positively toward the environment
That’s an obvious point. Tree planting is one of the most effective ways in which one can contribute toward positive climate change. As a responsible human, you should strive to leave the world a better place than you found it. Commercial eucalyptus trees are not just your financial vehicles, but also your way of improving and protecting the environment through aggressive afforestation. Kenya aims to reach 10% tree cover by 2022 according Vision 2030. So, by planting trees, you’ll be helping in attaining this objective.
Become a timber producer
I recently came across Dr. Myles Munroe’s 10 Keys to Personal Success. After watching this talk several times, I understood that to become truly financially successful, you must be a producer of something that people demand. You can listen to Munroe’s powerful here.
Without going into much details, just know that owning a eucalyptus farm can transform you into a timber producer in no time. You will be a producer of a vital product for carpenters, electricity companies like Kenya Power & Lighting Company, broadband providers that need utility poles for signal transmission, and so many more.
Most importantly, you can easily open your own hardware where you can sell timber, round poles, and wood fuel. You can even start a furniture shop and hire carpenters to make furniture that you can sell for huge gains.
Eucalyptus growing is supported by the government and environmental agencies:
For our Kenyan readers, you already know that the growing of Eucalyptus is highly encouraged by the government and environmental agencies like the Kenya Forest Service. If this is news to you, I recommend this article. In fact, KFS specifically encourage land-owners to grow eucalyptus in large scale for various reasons.
For example, the tree has the ability to grow at super-speed to provide massive environmental benefits. Of cause, there are those who believe eucalyptus species damage the environment. KFS published an article in response to this misconception. You can read the publication here.
The truth is that eucalyptus has some negative impacts. However, the positive effects much outweigh the negative side. So, you should not be discouraged; go ahead and transform your surrounding with a eucalyptus project.
You’ll Employ Yourself and Others
Every situation is an opportunity for change and if you can’t notice it, others will and you will be left behind. Naturally, if you leave your mind uncultivated, uneducated, untrained, it will become so full with the diseases of laziness, procrastination, and excuses that you won’t realize how much blessed you are right now. For those of you, young people who own large pieces of land, you are already millionaires except that you don’t realize it. It is my sincere appeal to you to consider what you can do with that idle asset because in it, millions of dollars are lying waiting to be unveiled! I urge you to begin your eucalyptus project now! Why not transform your idle piece of land into a multi-million-worth property with E. Grandis and subsequently secure your financial stability in just seven years? Yes, that’s possible.
Please, don’t forget to drop your comment or suggestion. And in case you have any question on commercial eucalyptus farming, feel free to CONTACT US.