About BaumInvest > FAQ
About BaumInvest – questions and answers
Questions about the business model
HOW DOES BAUMINVEST AG GENERATE A RETURN?
The business model of BaumInvest AG is based on the principles of sustainable forestry: Only as much wood as can grow back is taken from the forest. We have adapted this principle for tropical regions and the tree species native to them. Our planting system is modelled on the successive development stages of a natural forest: This means that we combine pioneer tree species with semi-shade and shade tree species. This results in optimal growth conditions for the individual trees. The different rotation times of the tree species result in staggered harvest phases. In this rolling, permanent forestry system, we continuously replant and maintain the trees through natural regeneration. In the past years we have reforested at different times, further reforestations are planned. In this way, we can also ensure constant harvesting phases in the future. We achieve yields through sales or through further processing with subsequent distribution. This cross-generational replanting and harvesting is the basis of our business model – a sustainable forestry principle with no end in sight.
WHO IS RESPONSIBLE FOR THE IMPLEMENTATION OF REFORESTATION IN COSTA RICA?
BaumInvest AG has been cooperating with PuroVerde Paraíso Forestal S.A. from the very beginning. This service provider works with a team of employees from the forestry sector who plan and control our reforestation activities. Responsible on the respective fincas is a foreman with a team of 2 to 3 permanent employees. All steps that have to be carried out in relation to the afforestation – from land purchase, planting, cultivation to harvesting – are carried out by PuroVerde.
Questions about the reforestations in Costa Rica
Why Costa Rica in particular?
The small country in Central America is politically stable, economically sound and climatically ideal for a fast and healthy growth of our trees. Furthermore, the tax burden in Costa Rica is comparatively low. A double taxation agreement between Germany and Costa Rica has not yet been ratified. Due to an investment protection agreement between the two countries, German investors and capital investors in Costa Rica are legally equal to nationals. Thus, land and facilities are formally protected against nationalization and expropriation.
WHAT IS THE CURRENT STATUS OF REFORESTATION IN COSTA RICA? WHERE ARE THE REFORESTATIONS?
The reforestations of BaumInvest AG are distributed over five locations throughout the entire north of Costa Rica. Of the total property area of 2,051 ha, a total of 1,280 ha (62% of the total area) have been successfully afforested with various tree species in mixed stands of different composition; a small portion is still in monocultures. About 25% of the total area are protected areas.
WHAT DO THE WOOD GROWTH SCENARIOS LOOK LIKE AND HOW CAN I FIND OUT ABOUT THEM?
Our shareholders receive an annual summary of the current tree growth with the annual report. There you can also read how the main tree species are developing. We also inform our investors at the annual general meeting about the current status of timber development and future timber growth scenarios.
HOW DOES LAND PURCHASE FOR AFFORESTATION STAND IN THE CONTEXT OF "LAND GRABBING" AND LOCAL FOOD PRODUCTION?
For the reforestation we buy land that is freely available on the market. Some of the landowners have been with us for years – BaumInvest has been active in the region for 13 years. Often a generation change, in which the agricultural use is given up, is the reason for a land sale. And often the land has been lying fallow for years or has been used for extensive cattle breeding. Since the production of food in Costa Rica is concentrated in the more southern part of the country, we do not withdraw available land with the purchases of local food production. In addition, the land is not suitable for food cultivation due to years of intensive use. In the case of Finca El Concho, we were able to buy land already planted with monocultures from one company. This saved the land from being sold to a major pineapple-producing corporation. This allowed us to create a forested island in this region, which was characterized by pineapple monocultures.
CAN THE FINCAS BE VISITED?
In recent years, group tours with shareholders have been organized regularly in cooperation with the tour operator Aventoura. Until further notice, however, no BaumInvest trips to Costa Rica are possible due to the worldwide Corona Pandemic. Unfortunately, it is currently not possible to foresee when the next BaumInvest investor trip can be planned. We will keep you up to date!
IS IT POSSIBLE TO WORK OR DO RESEARCH ON SITE IN COSTA RICA?
Yes, there is the possibility to participate. In general, we have limited the cooperation on our fincas to the research area, i.e. we offer the possibility for students to carry out research projects in the field of forestry. Therefore we require that the students plan at least three months for their stay. Experience shows that a stay of less than three months is not reasonable, because otherwise we cannot integrate external people into our daily routine to the extent that independent work is possible. Spanish language skills should be at a conversational level. If you are interested, please submit an application: INFO@BAUMINVEST.DE.
Questions on socio-ecological added value
WHAT DISTINGUISHES THE SUSTAINABILITY OF BAUMINVEST REFORESTATION?
Our cultivation system consists of a mixture of mainly native tree species. The diversity of tree species offers individual niches for animal species. Just like in a natural forest, the undergrowth is left and, due to the danger of snake bites, only removed where concrete work is done on the trees. A quarter of all plots of land are nature reserves, which are left to natural development. Our research cooperation with the Senkenberg Institute has shown that after only 9 years the number of reptile and amphibian species has increased from 20 to 89. Since our reforestations are managed as permanent forest, timber harvesting is only carried out selectively. This ensures a continuous tree population and at the same time the next generation of trees grows in the planting network.