Table of contents
You will learn on this page, why Paraguay is the best place in the world to invest in wood!
Information on wood investments is provided by Miller Forest Investment AG (free information booklet can be requested, see details at the end of the article or here: www.miller-investment.de). Miller Forest is the largest reforestation company in Paraguay.
On the trade fair “Invest”, I have recorded a short video for you, in which a spontaneous surprise happened:
1. Why Miller Forest?
The Miller Forest Investment AG – headquartered in Baden-Württemberg – has 10 years of experience with forestry investments in Paraguay. Business relationships with the South American country exist already since 30 years.
Miller Forest was originally founded as an in-house operation for planting trees to compensate the CO2 of Miller Reisen GmbH, Germany’s largest travel specialists for journeys to Latin America.
However, the project has developed so well that more than 650 private and business investors joined Miller Forest.
In total, they have planted 9 million trees, of which most have already been harvested and the investors have received nice payouts (crop yield minus costs) to their checking accounts.
Miller Forest is the largest reforestation company in Paraguay and enjoys an excellent reputation in the industry. The operating forestation company in Paraguay is Felber Forestal S.A. and has grown to be the largest employer in the region Maciel with more than 180 employees.
2. Why wood in Paraguay?
Dank des subtropischen Klimas in Paraguay (viel Regen, viel Sonnenschein, hohe Temperaturen) wächst Holz dort rund 4 × schneller als in Deutschland.
Additionally, there are enough local committed employees, who plant, cultivate and harvest the trees at good wages – but extremely cheap in relation to Germany. Moreover, the taxes and fees in Paraguay are much lower than in Germany!
In the last 40 years, a lot more wood was consumed than it has been re-planted in Paraguay, so there is a solid sales market for wood products in the country itself. The prices are at the world market level!
Moreover, the wood could also be sold on the world market, if there should be a higher price at harvest.
3. Which types of wood?
Mainly Eucalyptus species are planted. These can be used as valuable wood in the furniture and construction industry. Some eucalyptus species are best suitable as fuel wood and is processed on site into wood chips.
For the production of wood chips, the company has imported a 19-tonne shredding machine (Model: Trommelhacker SH 65/100) from Switzerland!
It produces up to 120 m3 of biomass per hour! The return on sales of this finished product is of course higher than if one sells the trees. Advantage for the investors!
Besides eucalyptus trees, also pine trees are planted, which are up to 30 meters high and particularly rich in resin.
Miller Forest provides standardized maturities of 6, 10, 15, 16 and 20 years for external investors (that is you).
In the beginning, one is asked for a one-time investment from Euros 970, then the trees are planted and cared for. The payouts will be made every 5-6 years. Depending on when the trees are harvested.
Exception: Miller Forest offers a savings plan of Euros 129.75 per month. This is for 60 months. Thanks to this achievement, also people, who have not yet saved a fortune for a one-time investment, can participate in the forestry investment.
The investment sum can also be higher …
Bonus for companies: Seal “grünes Klima” (green climate)
… there are also companies that invest in a forest in Paraguay in order to obtain the seal “grünes Klima” (green climate).
This logo is provided free of charge by Miller Forest for promotional purposes, if the CO2 emissions are neutralized through the tree-investment.
5. Risks and guarantees
Just like everywhere else in life, there are also risks when buying a forest in Paraguay … as you can see from the listing, some can even be understood as a “guarantee”!
The risk of forest fires in this subtropical region of Paraguay can be regarded as very low as there is rainfall regularly throughout the whole year. About 2-3 times more rain as in Germany.
Additionally, fire protection strips and ponds were created.
Drought or floods
The probability of those are also low, since the rainfall is steady throughout the year. The terrain is slightly sloping and there are no major rivers (which could overflow), but a system of drainage ditches that ensure optimum drainage.
Paraguay is situated outside the hurricane zone. Individual uprooting or breaks of tips as they occur during storms also in our region, are included in the package.
Wood as a raw material is a non-cash asset and rather benefits from inflation.
If you make your investment with the “old” money today, you will receive payouts at the current market price in future years (and in the currency, which then applies).
I know people, who invest in forests on purpose in order to protect themselves from inflation!
Is impossible on a larger scale and unprofitable in smaller amounts. Additionally, the farmland is fenced or separated by trenches. There are very few access roads.
Loss of important contract partners
For example, nursery or wood buyers. They can be replaced by other companies. There is no crucial dependence to any partner.
Key personnel risk
The appropriate managers are of special importance in any company! Nevertheless, everyone is somehow replaceable, even if this will include a reorganization. With more than 180 employees in Paraguay, there are people in second and third line, who already have taken important tasks.
Since 1998, there is an investment protection agreement between the Federal Republic of Germany and Paraguay, which assures a compensation for investors in case of government expropriation. Furthermore, Paraguay is one of the politically and economically stable countries.
At the trade fair, an investor said to me that he would prefer to invest in Paraguay than in Germany within a timeframe of 20 years (see maturities above) – regardless of the type of investment.
6. Request information documents (free of charge)
And this comes next:
Enter your contact information, tick the checkbox and click on “send”:
7. I myself invest!
I observe Miller already for two years and while working on this article for our readers, I have decided to invest in a “Forest in Paraguay” myself. Therefore, you can look forward to future articles.
Moreover: Anyone, who knows me for some time, knows that I love to write about things that I do myself! In the past years, tens of thousands of people have opened bank accounts that I have opened myself too.
Take a look at our special portal DeutschesKonto.ORG.
If you have requested the information documents (Point 6) through me, I will keep you up to date about the development … until you unsubscribe from the mailing list. For this purpose, you can find a link at the end of every e-mail, which you only need to click.
An investment in wood / forest in Paraguay is an alternative direct investment, which your bank would hardly recommend. You are requested to inform yourself and make your own decisions.
The investment plan of Miller Forest is intended that investors sign a lease or purchase agreement and transfers the investment to a German bank account. Then, the seedlings are bought, planted and cultivated on the ordered land in Paraguay.
After the harvest – depending on the product – the investor gets a payout every 5-6 years to his / her bank account in Germany or abroad.
With an investment at Miller Forest, one helps to make our world a little bit better, because:
- trees are planted
- people can work in a good profession
- it is a sustainable project under German leadership.
… and on top of that, you can look forward to a nice profit – which is covered by increasing property values!
Use the comments box to ask questions about the investment, Miller Forest or trips to Paraguay. At best, we (or other dedicated readers) can answer them directly through the comments feature. Possibly, further articles and videos will incur by this!
Fancy joining the next information trip to Paraguay?
“Inform yourself directly at the provider”
… growing alternative-investment in German hands!