The projections presented are based on 2017 prices and market expectations. Since then, the market for tropical hardwoods has experienced significant changes, with the value approximately doubling due to several key factors:

• Increased Fragmentation in Global Trade: Restrictions and barriers between economic blocs have limited the free flow of natural resources, increasing scarcity and driving up prices.
• Protection Measures for Tropical Hardwood Species: Conservation efforts, including the US Endangered Species Act of 1973 and international agreements like CITES, have further constrained supply, particularly for endangered or vulnerable species such as Mahogany, Rosewood, and Spanish Cedar.
• Growing Demand for Renewable Resources: Rising environmental awareness and shifts toward sustainable materials have made tropical hardwoods, especially those sourced through regenerative agroforestry practices, more desirable in premium markets.

Tropical hardwood trees are unique investment assets and not commodities. Their pricing is influenced by various factors including:

• Market Inefficiencies: Price discrepancies due to regional demand, supply chains, and barriers to entry.
• Established Relationships: Long-term partnerships and reputation within the industry can impact price negotiations and market access.
• Availability and Scarcity: As certain species become rarer due to overharvesting or protection measures, their value can increase dramatically.
• Unique Characteristics: Each tree’s size, quality, and species-specific traits (e.g., grain pattern, durability) influence its market price.

Our projections are based on over 30 years of observation and price evolution in the tropical hardwood region of Petén, Guatemala. These estimates reflect both historical data and our assumption that trees increase in value over time due to growth in both volume and price.

Our research indicates that the prices for mature trees have roughly doubled over the past 20 years, reflecting their rising scarcity and increasing market demand. For verification, you can visit the region and consult with our forestry experts. Additionally, research supports these trends:

• Blaser, J., et al. (2011). "Status of Tropical Forest Management 2011." ITTO Technical Series No. 38, International Tropical Timber Organization, Yokohama, Japan.
• Brockerhoff, E. G., et al. (2017). "Tropical hardwoods and their contribution to sustainable development." Global Ecology and Conservation, 11, 53-70.

These sources highlight the broader global market dynamics that influence tropical hardwood value, including demand shifts and resource constraints. Please consult with your financial advisor before making any investment decisions. The information provided here is for informational and conversational purposes only and does not constitute financial advice.