FAQs (Frequently Asked Questions)

Why Invest?
Who can Invest?
How to Invest?

  1. How do we mitigate the risks involving political interference at harvesting?

  2. Philippine law allows the establishment of timber plantations on private lands, CBFM and IFMA deforested lands, and the harvesting of timber products from them. The problems in past efforts of timber plantation stem from a lack of regular progress reporting by the proponents when establishing the commercial timber plantations.

    The company will mitigate the political risks by providing information on regular basis (annually) to various levels (barangay, municipal, provincial and national levels) of concerned Government agencies: the Department of Environment and Natural Resources (DENR), the Department of Interior and Local Government (DILG), and the National Commission of Indigenous People (NCIP). Reporting will commence after we have completed planting our Year-1 targets in Luzon and Mindanao, followed by yearly reporting until Year 9 when we start harvesting for the first time our GEA timber. Annual reporting will continue for all new and replanted areas as standard management practice.

  3. What about the risk involving a project with an 8-year growing period?

  4. We can mitigate the risk cycle of projects with an 8-year gestation period - through partnerships and linkages with local people's organizations, by adopting measures to address the risks (such as high winds, pests and diseases and wild fires), and by adopting technological advances to address slow-growing trees. These are:

    1. Through Partnership with local Peoples Organizations:

    2. GEA Timber Ventures, Inc. strategy is to develop long-term and sustainable partnerships, with People's Organizations (POs) by providing members of these POs employment throughout the 8 year growth period and through profit sharing. We also sign long-term lease for the utilization of a part of their undeveloped tribal lands, e.g. indigenous people (I.P.) and through GEA Timber Ventures, Inc., we linked them with individual or corporate investors for the benefit of the parties involve.

      We also collaborate closely with government policy makers to ensure land use and timber cutting rights are established at planting.

    3. Risks of high wind, pest, disease, and fire:

    4. Being highly-experienced forest managers, GEA Timber Ventures, Inc. will establish well-known measures on the timber plantation to address the risks of high wind, pest, disease and fire. These include: establishing firebreaks to separate the plantation from adjacent natural vegetation and undergrowth weeds; establishing mosaic planting (consisting of up to three clone species) to minimize pest damage; and purchasing fire and plantation insurance coverage to insure the growing trees in our forest plantations against all of these potential natural calamities.

    5. Risk of slow growth of trees and, hence, the danger of not achieving target economic growth:

    6. GEA Timber Ventures, Inc. will put into actions two recent advances in Philippine forestry to further minimize the above risks. These are: (i) a software on site-species matching developed by UPLB-based researchers, which greatly reduces the mismatch between tree species to be raised and soil and climatic characteristics of planting sites; and (ii) macro-somatic cloning technology, which depends on selecting high-quality planting stock with very good potential for fast growth and tree form. Trial plantings during the last 15 years have verified these results. We are using the cloning technology for the source of vigorous clone seedlings for planting our timber plantations.

  5. Investing in Commercial Tree Plantations

    1. Establishing commercial tree plantations on deforested lands:

    2. GEA Timber Ventures, Inc. has begun to establish our own tree plantations on leased deforested lands belonging to private individuals and indigenous peoples or tribal groups. The owners of deforested lands benefit from this arrangement by receiving payment up front after signing a ten-year lease on their lands, from employment during the clearing of the site, land preparation, planting, maintenance, and during harvesting, processing and marketing of timber at the end of the 9-10 year cycle, and from receiving a share of the profits from the timber at harvest. Since the leasing of Government land has not clearly delineated a separation between landuse and land ownership, GEA timber Ventures, Inc. has not leased Government lands but has instead primarily focused on leasing of private lands.

    3. Capital requirements

    4. The cost of establishing one hectare of timber plantation planted to clone seedling, which will be harvested within 9 years after planting is about US$5,000.00. The cost includes site preparation (delineation of the plantation area and GPS mapping), land preparation, fertilizer application, weeding, tree pruning, and silviculture management. Critical in the management and profitability of timber plantations is to ensure a cycle of annual planting and harvesting at the end of a 9-year cycle, followed by replanting to start another cycle. This arrangement ensures a regular long-term supply of timber and wood biofuel, and an assurance of the continued supply to the local or the foreign markets of quality timber for sustainability and assured market.

    5. Income streams from timber plantations

    6. Income streams from timber plantations come from various sources, depending on the purpose of the project. Basically, the primary product is timber atthe end of a 9-year cycle. The other combination of products that can be produced are woodchips or wood pellets, which are wood biomass for energy power generation projects, which are produced starting from years 4 to 9 (based on a 1,000-hectare plantation model), and depending on the interest of the power companies, they can also earn higher incomes from harvesting high-quality timber products at the end of the 9-year cycle on years 9 to 12. GEA Timber Ventures, Inc. can produce these varied products depending on the requirements need of the individual clients or local or foreign power generating companies.

      Additional income streams would include the value of carbon sequestration for large power generating companies or the benefits from livelihood projects for indigenous peoples or poor upland upland communities (with IFMA deforested lands) such as fuel wood, grazing livestock, honey production, and production and processing of root crops and dried "laing gabi" leaves .

    7. Why Invest?

    8. Local and international demand for high quality timber has shown a steady increase over the last 20 years. Timber plantations grow at a steady rate and benefits also increase in value as the trees grow in size and timber volume and value. Timber plantations have consistently shown a return of investment (ROI) between 25 percent and 34 percent depending on the soil and climate. Planted on degraded forest lands, timber plantations represent an ethical and sustainable investment with positive environmental outcomes.

    9. Who can invest?

    10. GEA Timber Ventures, Inc. investors include: individuals (local, overseas Filipino expatriates, and overseas foreign workers (OFWs), owners of private deforested lands (10 hectares to 10,000 hectares), and international or local power-generating companies , requiring long-term supply contract for wood biofuel. Other investors will include other institutions, such as pension funds, public or private corporations, as part of their corporate social responsibility (CSR), family trusts, retirement funds, and succession planning for family businesses and private investments.

    11. How to Invest?

    12. Interested investors can contact the company on how to invest---through email or by mail to:

      Email: Treasurer and Vice-President

      Mail to: Treasurer and Vice-President
      No. 8469 West Service Road, Barangay Sun Valley

      To date, GEA Timber Ventures, Inc. has set aside the first 20 hectares of timber plantations for the first 20 investors on a first-come-first-served basis. Part of the documentations will include: (i) a Contract Agreement between the Investor and GEA Timber Ventures, Inc, (ii) a Certificate of Ownership for a one- hectare Timber Plantation, and (iii) a Global Positioning System (GPS) tag.