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Sale of substantial Eucalyptus trees Investment
Gathige
#51 Posted : Thursday, July 23, 2020 2:04:10 PM
Rank: Elder

Joined: 3/29/2011
Posts: 2,242
amorphous wrote:



Applause Applause Applause



According to Bwana Nyanja, it costs a max 4000 Kshs to buy one mature Eucalyptus and after processing it, he sells for upto 17500Kshs. That's a very very good business even after taking into account the processing and marketing costs. With patience, this is a really good biashara.

"Things that matter most must never be at the mercy of things that matter least." Goethe
sqft
#52 Posted : Thursday, July 23, 2020 4:23:23 PM
Rank: Veteran

Joined: 1/10/2015
Posts: 961
Location: Kenya
Gathige wrote:
amorphous wrote:



Applause Applause Applause



According to Bwana Nyanja, it costs a max 4000 Kshs to buy one mature Eucalyptus and after processing it, he sells for upto 17500Kshs. That's a very very good business even after taking into account the processing and marketing costs. With patience, this is a really good biashara.



Note that nyanja doesnt grow any trees but rather he makes his cash by buying mature trees from farmers, treating them and selling the poles to govt, and also selling seedlings to the tree farmers. In other words he runs a tree nursery and also a pole processing plant.
Proverbs 13:11 Dishonest money dwindles away, but whoever gathers money little by little makes it grow.
sqft
#53 Posted : Thursday, July 23, 2020 4:36:13 PM
Rank: Veteran

Joined: 1/10/2015
Posts: 961
Location: Kenya
As @fizash explained in post #31, tree farming isn't an easy enterprise. Only brokers like nyanja make easy money. The farmer bears all the risk.

fizash wrote:
Dear Villageseer,

First off, are these trees still available, if so, email me.

Secondly, i have read through your post and having been in the poles business for the last 8 years i can assure you there is no such monopoly at KPLC or REA.... rather there seems to be a misconception on pricing paid by KPLC and the rate at which the Hybrid Eucalyptus grows:

1. It takes a tree ( Grandis or Grandis Hybrid) a minimum of 8 years in a heavy rainfall area to mature to KPLC spec poles - which is a minimum of 10M length and a top diameter of 160mm ( top diameter must be without bark and allow for shrinkage) so to be safe you go with a 170mm top diameter on a standing tree.

2. The spacing of trees when planted must be a minimum of 2.5M x 2.5M averaging 1600 stems per hectare. Again spacing is determined by location of planting. Drier areas may require a 3mx3m spacing.

3. 30% of trees planted will most likely not survive to maturity, from the remaining 70% of surviving trees only about 30% -40% will qualify for poles, the rest will not make the specs...either too thin or too crooked etc This is the general rule of thumb, if you are able to achieve this then you are doing well.

4. The selling price of a raw tree or pole will average around Kshs 4000 per tree today, why Shs 4000 and not Shs 12,000-16000 like you read about in the papers? Answer is simple, you cannot cut a tree and deliver it to KPLC - it has to be treated first ( the process of treating can take up to 5 hours under high pressure - not simply dipping the pole in green chemicals). This is where the treatment plants come in, so the price most farmers see is the Kshs 12,000 which can be misleading- this price is for a TREATED pole delivered to KPLC not a raw pole. Furthermore, treatment plants have to warranty the pole for 25 years.

I hope this clarifies some misconceptions as is commonly found in the newspapers.

Regards
Fash



Proverbs 13:11 Dishonest money dwindles away, but whoever gathers money little by little makes it grow.
amorphous
#54 Posted : Thursday, July 23, 2020 4:48:05 PM
Rank: Member

Joined: 5/15/2019
Posts: 687
Location: planet earth
Sqft,
I want to do seedling to timberyard with Cypress.
Not easy but supply and demand economics look very very appealing to me.
In my case I will be the grower, broker and retail dealer. These timber yarders are making a juicy kill even while sourcing from independent growers. Which means profits will be even juicier if I control the whole shebang. My humble two pennies.

http://kenyadetails.com/...hy-timber-business-booms
In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
Gathige
#55 Posted : Thursday, July 23, 2020 4:57:19 PM
Rank: Elder

Joined: 3/29/2011
Posts: 2,242
sqft wrote:
As @fizash explained in post #31, tree farming isn't an easy enterprise. Only brokers like nyanja make easy money. The farmer bears all the risk.

fizash wrote:
Dear Villageseer,

First off, are these trees still available, if so, email me.

Secondly, i have read through your post and having been in the poles business for the last 8 years i can assure you there is no such monopoly at KPLC or REA.... rather there seems to be a misconception on pricing paid by KPLC and the rate at which the Hybrid Eucalyptus grows:

1. It takes a tree ( Grandis or Grandis Hybrid) a minimum of 8 years in a heavy rainfall area to mature to KPLC spec poles - which is a minimum of 10M length and a top diameter of 160mm ( top diameter must be without bark and allow for shrinkage) so to be safe you go with a 170mm top diameter on a standing tree.

2. The spacing of trees when planted must be a minimum of 2.5M x 2.5M averaging 1600 stems per hectare. Again spacing is determined by location of planting. Drier areas may require a 3mx3m spacing.

3. 30% of trees planted will most likely not survive to maturity, from the remaining 70% of surviving trees only about 30% -40% will qualify for poles, the rest will not make the specs...either too thin or too crooked etc This is the general rule of thumb, if you are able to achieve this then you are doing well.

4. The selling price of a raw tree or pole will average around Kshs 4000 per tree today, why Shs 4000 and not Shs 12,000-16000 like you read about in the papers? Answer is simple, you cannot cut a tree and deliver it to KPLC - it has to be treated first ( the process of treating can take up to 5 hours under high pressure - not simply dipping the pole in green chemicals). This is where the treatment plants come in, so the price most farmers see is the Kshs 12,000 which can be misleading- this price is for a TREATED pole delivered to KPLC not a raw pole. Furthermore, treatment plants have to warranty the pole for 25 years.

I hope this clarifies some misconceptions as is commonly found in the newspapers.

Regards
Fash







@ sqft, thanks for retrieving this informative peace. An investment of 8+ yrs to earn a raw 4k is very poor. A Maasai Mbuzi would earn 5k at the market in 2 yrs.


@amorphous,if you have a sizeable land, esp in your favourite DC, you can explore Accaia farming for firewood and "legal" Charocal burning. A good Accacia variety can mature in 5 yrs for harvest.In between you can do bee keeping and harvest honey. See link below for motivation
https://www.nation.co.ke...he-tree-to-grow-1897028



"Things that matter most must never be at the mercy of things that matter least." Goethe
sqft
#56 Posted : Thursday, July 23, 2020 4:57:21 PM
Rank: Veteran

Joined: 1/10/2015
Posts: 961
Location: Kenya
According to @fizash above 1 hectare (2.5 acres) can accommodate 1600 trees i.e 640 trees per acre.

30% will die thus you remain with 448 trees.

Of these only about 40% will be up to KPLC standards ie about 180 trees.

If you sell at 4000 per tree, then cash made will be 720,000 after 8yrs, or 90k per yr gross aka 7,500 per month.

If expenses are 30%,then your profit is 5k per month.

I believe you'd make more money if you put your 1 acre under sukuma wiki and cabbages...or 1 dairy cow.


Proverbs 13:11 Dishonest money dwindles away, but whoever gathers money little by little makes it grow.
amorphous
#57 Posted : Thursday, July 23, 2020 5:08:07 PM
Rank: Member

Joined: 5/15/2019
Posts: 687
Location: planet earth
Gathige wrote:



@amorphous,if you have a sizeable land, esp in your favourite DC, you can explore Accaia farming for firewood and "legal" Charocal burning. A good Accacia variety can mature in 5 yrs for harvest.In between you can do bee keeping and harvest honey. See link below for motivation
https://www.nation.co.ke...the-tree-to-grow-189702




Thanks. I hear gum arabica from acacia is an exportabke goldmine. Wacha ning'ang'ane with my CYPRESS IN THE BUSH idea for now as that land is doing zero for now and the low maintenance aspect and returns on milled timber are right up my alley. Let me stop talking about it and get to action mode. Will report my progress yearly.
In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
sqft
#58 Posted : Thursday, July 23, 2020 5:35:01 PM
Rank: Veteran

Joined: 1/10/2015
Posts: 961
Location: Kenya
amorphous wrote:
Gathige wrote:



@amorphous,if you have a sizeable land, esp in your favourite DC, you can explore Accaia farming for firewood and "legal" Charocal burning. A good Accacia variety can mature in 5 yrs for harvest.In between you can do bee keeping and harvest honey. See link below for motivation
https://www.nation.co.ke...the-tree-to-grow-189702




Thanks. I hear gum arabica from acacia is an exportabke goldmine. Wacha ning'ang'ane with my CYPRESS IN THE BUSH idea for now as that land is doing zero for now and the low maintenance aspect and returns on milled timber are right up my alley. Let me stop talking about it and get to action mode. Will report my progress yearly.


From the KFS pamphlet you gave on post #48:

Quote:
Cost benefit analysis for Cypress enterprise
Area: 1 acre
Spacing : 2.5 by 2.5
Rotation Age 28 years
Temperatures 10- 28 deg c
Rainfall: >mm 800-1,500 mm,
Altitude; 1,000 – 4,000 m a.s.l.
Working cycle: saw Timber
Species: Cupressus lusitanica
Net profit per yr - 79,105 (ie. 6,592 per month)


You will have to wait for 28ys (upto 2048 AD) to sell your timber and would have made about 6k per month per acre. Also note that areas receiving > 800mm rain where cypress would do well are high potential areas in the highlands not the arid dustbowl where the only tree that grows there is the dwarf thorn acacia. Good luck.
Proverbs 13:11 Dishonest money dwindles away, but whoever gathers money little by little makes it grow.
amorphous
#59 Posted : Thursday, July 23, 2020 6:48:58 PM
Rank: Member

Joined: 5/15/2019
Posts: 687
Location: planet earth
sqft wrote:
amorphous wrote:
Gathige wrote:



@amorphous,if you have a sizeable land, esp in your favourite DC, you can explore Accaia farming for firewood and "legal" Charocal burning. A good Accacia variety can mature in 5 yrs for harvest.In between you can do bee keeping and harvest honey. See link below for motivation
https://www.nation.co.ke...the-tree-to-grow-189702




Thanks. I hear gum arabica from acacia is an exportabke goldmine. Wacha ning'ang'ane with my CYPRESS IN THE BUSH idea for now as that land is doing zero for now and the low maintenance aspect and returns on milled timber are right up my alley. Let me stop talking about it and get to action mode. Will report my progress yearly.


From the KFS pamphlet you gave on post #48:

Quote:
Cost benefit analysis for Cypress enterprise
Area: 1 acre
Spacing : 2.5 by 2.5
Rotation Age 28 years
Temperatures 10- 28 deg c
Rainfall: >mm 800-1,500 mm,
Altitude; 1,000 – 4,000 m a.s.l.
Working cycle: saw Timber
Species: Cupressus lusitanica
Net profit per yr - 79,105 (ie. 6,592 per month)


You will have to wait for 28ys (upto 2048 AD) to sell your timber and would have made about 6k per month per acre. Also note that areas receiving > 800mm rain where cypress would do well are high potential areas in the highlands not the arid dustbowl where the only tree that grows there is the dwarf thorn acacia. Good luck.



Three things

1. It will not be grown in DC. See here: http://wazua.co.ke/forum...&t=38022#post898504

2. Some say 5 years before you start harvesting poles, others like KFS say 28 years, the average consensus seems to be 15-20 years which is what I am going by.

3. They are talking about selling the trees once mature, not cut lumber. Hebu tufanye hesabu. 1 cypress tree, 50ft (15m) at 15-20 years (80ft at total maturity) and 0.7m diameter can produce how many two by twos? Drool

My estimate tells me that assuming we gut it into a square block and consider the rest waste (which it is not) we are still left with a block 40 tall (reducing for thinner top crown and branches) and a base of about 0.5m by 0.5m.

My (rough) quick mental math gives me the following:

40ft length by 1.64ft by 1.64ft which is
40ft length by about 20inch by 20 inch, which is
40ft worth of 10 by 10 (100) 2 by 2s (approx)

at 25 bob per foot, we have 4000 by 25 which gives us a clean 100k per tree

No let us even throw a spanner in the works and say half the crop gets burned down by arsonists or never grew to begin with. At 1600 trees per acre planted, I still make off with 800*100k = a cool 80m per acre, papa.

Correct me if I am wrong here Drool Nimefanya hizi hesabu zote kwa kichwa so there might be some errors

In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
kawi254
#60 Posted : Thursday, July 23, 2020 8:01:33 PM
Rank: Member

Joined: 2/20/2015
Posts: 468
Location: Nairobi
amorphous wrote:
sqft wrote:
amorphous wrote:
Gathige wrote:



@amorphous,if you have a sizeable land, esp in your favourite DC, you can explore Accaia farming for firewood and "legal" Charocal burning. A good Accacia variety can mature in 5 yrs for harvest.In between you can do bee keeping and harvest honey. See link below for motivation
https://www.nation.co.ke...the-tree-to-grow-189702




Thanks. I hear gum arabica from acacia is an exportabke goldmine. Wacha ning'ang'ane with my CYPRESS IN THE BUSH idea for now as that land is doing zero for now and the low maintenance aspect and returns on milled timber are right up my alley. Let me stop talking about it and get to action mode. Will report my progress yearly.


From the KFS pamphlet you gave on post #48:

Quote:
Cost benefit analysis for Cypress enterprise
Area: 1 acre
Spacing : 2.5 by 2.5
Rotation Age 28 years
Temperatures 10- 28 deg c
Rainfall: >mm 800-1,500 mm,
Altitude; 1,000 – 4,000 m a.s.l.
Working cycle: saw Timber
Species: Cupressus lusitanica
Net profit per yr - 79,105 (ie. 6,592 per month)


You will have to wait for 28ys (upto 2048 AD) to sell your timber and would have made about 6k per month per acre. Also note that areas receiving > 800mm rain where cypress would do well are high potential areas in the highlands not the arid dustbowl where the only tree that grows there is the dwarf thorn acacia. Good luck.



Three things

1. It will not be grown in DC. See here: http://wazua.co.ke/forum...&t=38022#post898504

2. Some say 5 years before you start harvesting poles, others like KFS say 28 years, the average consensus seems to be 15-20 years which is what I am going by.

3. They are talking about selling the trees once mature, not cut lumber. Hebu tufanye hesabu. 1 cypress tree, 50ft (15m) at 15-20 years (80ft at total maturity) and 0.7m diameter can produce how many two by twos? Drool

My estimate tells me that assuming we gut it into a square block and consider the rest waste (which it is not) we are still left with a block 40 tall (reducing for thinner top crown and branches) and a base of about 0.5m by 0.5m.

My (rough) quick mental math gives me the following:

40ft length by 1.64ft by 1.64ft which is
40ft length by about 20inch by 20 inch, which is
40ft worth of 10 by 10 (100) 2 by 2s (approx)

at 25 bob per foot, we have 4000 by 25 which gives us a clean 100k per tree

No let us even throw a spanner in the works and say half the crop gets burned down by arsonists or never grew to begin with. At 1600 trees per acre planted, I still make off with 800*100k = a cool 80m per acre, papa.

Correct me if I am wrong here Drool Nimefanya hizi hesabu zote kwa kichwa so there might be some errors




Cypress products are pricey, but beware it is a very delicate tree
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