Are you looking for information on the giant bamboo plantation business? In this article, you are in the right place. We will tell you everything you want to know about this ecological business opportunity.
We are always very interested in the green economy, or sustainable economy and this trend related to the cultivation of giant bamboo is exciting.
Bamboo is not a tree because we can cut bamboo without killing the plant, while the tree is dead once cut.
The green economy has now exploded, and new businesses are born every day, driven by the enthusiasm of a more eco-sustainable world.
All this interest has a negative side because many will try to take advantage of this trend to make money without caring about the environment.
Indeed, I want to go. Further, many scammers will arrive who will propose themselves as saviors of the world with business, especially private investors.
It is precisely the private investor who must be very careful with this type of investment because not all companies offering “investing in bamboo plantation” will be severe and reliable.
In this article, we will see together the main aspects of this interesting business, and we will evaluate the traps or unknowns of this new investment.
Investing in bamboo plantation: investor expectations
There is a lot of interest in investing in bamboo forests; we can frequently come across advertisements and announcements that invite investors to get closer to this world.
The positive sides of this investment that are highlighted are an excellent advantage for the environment and a high economic return for many years.
Those who propose these investments generally affirm that bamboo can be cut and harvested continuously, so unlike trees, we can cut it multiple times like grass.
A giant bamboo plantation will have this continuous rebirth process for about 100 years because, after 100 years, it will start flowering, but at that point, a new forest should be born through seeds.
Let’s think about the difference between an investment in a giant bamboo forest and a classic agriculture investment.
If you decide to start with your fruit picking business, you will need to plant fruit trees, knowing that a fruit tree forest will have a maximum lifespan of 25/30 years and probably a relatively high cost.
Even the fruit’s harvesting could require a more significant effort than the bamboo harvesting, which is easily pruned and does not require expensive equipment.
So once we start our business, the giant bamboo forest will last 3-4 times longer than a typical orchard.
Are these data real? Does every bamboo plantation grow at this speed, and can it be pruned several times without any problems? Does it seem an almost automatic income, are there any studies on this?
Bamboos belong to the Gramineae family and are the tallest in his family. It arises spontaneously and is one of the most abundant plants on earth but generally occurs in tropical and subtropical regions.
In addition to the plant’s habitat, it must also be considered that there are many types of bamboo. Based on all these variables, it could have much slower growth than that promised or hoped.
How and how much bamboo plantation grows.
As we saw in the previous chapter, bamboo is a plant that generally overgrows in nature and reaches heights unattainable by other plants belonging to the same family.
Bamboo begins to grow in spring and continues to grow in summer and autumn. Indeed, in these seasons, it grows faster than in spring.
When evaluating an investment in bamboo, the thing to consider is precisely the difficult prediction of how much bamboo plantation can grow.
Based on the studies carried out, there is a vast range of daily growth for bamboo plants and 7.5 cm to 100 cm. This means that the yield could be more than ten times higher or lower for the same investment, varying the growth coefficient.
Relying on professionals in the sector and with proven results, it is certainly possible to predict the bamboo plant’s probable growth with greater accuracy, but it remains a tricky forecast.
The selection of seeds and genetics is undoubtedly essential, but the location, sun exposure, climate, and many other variables may decrease the yield of a bamboo forest.
The long duration of the investment should facilitate the search for private and institutional investors to start this type of business. Once the initial costs have been addressed, the investment has a more extended return than the average investment in the same sector.
A bamboo rod can be up to 20 meters high, and in the last meters, the plant is covered with leaves.
Considering that bamboo is a green plant with leaves for 12 months of the year, the environmental advantage in terms of oxygen is quite clear.
Most fruit trees in winter completely lose their leaves and therefore do not release oxygen into the air and do not function as a lung for the environment.
Bamboo plantation, environment, pollution and sustainable economy
This is a sustainable economy; a bamboo forest will bring profits to the owner and the environment and, therefore, to the whole community.
Bamboo is not a typical tree plant; it can retain about three times the CO2 of a similar plant.
There are over 50 million hectares of bamboo forests globally, and it is one of the most important plants for purifying the air of our planet and reducing pollution and CO2.
Moso bamboo is the most present species globally, especially in cinchona. It is the tallest type of bamboo and has a speedy growth.
Bamboo plantation can also reclaim land polluted by metals and therefore could be used to restore land after the presence of factories or other polluting activities.
We must also consider that a bamboo forest will soon become a natural habitat for many animals that are slowly losing their habitat and, therefore, help the world with species’ biodiversity.
From the point of view of the environmental impact, a bamboo forest is magnificent when viewed from the sky.
The sprouts can enter the vegan food sector and the timber to enter the plastic, paper, clothing, and wood sectors.
Only organic bamboo cultivation will have to be considered if you want to enter the food sector.
The economic uses of bamboo
We have grown our bamboo plantation, but who do we sell it to? Remember that it will be challenging for a small investor to sell their product on their own.
You don’t have to think about creating your bamboo forest and starting to sell the small yield you will get compared to many large companies’ needs.
For this reason, it would be essential to search for a network or invest in a team to have more product to sell and being able, with significant probability, to snatch better sales conditions.
In this way, we can even share the equipment necessary for cultivation and harvesting among several entrepreneurs.
There is also the possibility of totally relying on companies that carry out both the intervention of forest creation and the product’s collection and sale. Still, I believe that in these cases it would reduce your profit.
However, it has solid wood and fiber and has always been used for household items, but its uses can be multiple with the technology that advances.
Especially if it comes from organic farming, bamboo can be an excellent and requested food to create wine or vinegar. It is also used a lot to pack bamboo.
Many vegan foods and recipes have bamboo as an ingredient; it is a food rich in vitamins and minerals and should be added to our daily diet.
If you decide to grow bamboo for this purpose, you should consider organic farming because the customers interested in this product are very interested in organic products.
Bamboo to create various types of items
Bamboo is very resistant but at the same time very flexible. Therefore, it is widely used to build objects and be an excellent alternative to steel to reinforce structures.
It is also widely used to manufacture musical instruments such as wind, string, percussion instruments, or acoustic guitar’s body and neck.
Even in the sports industry, bamboo is highly appreciated as raw material, for example, for balls’ manufacture. The bamboo fiber is very light and resistant and therefore suitable for this specific purpose.
The textile industry often uses bamboo; its fibers are highly appreciated for this purpose, not only for clothes to wear such as socks or t-shirts but also for accessories such as face masks, towels, pillows, etc.
we can identify other uses in the cosmetics industry used as an ingredient for many products.
Bamboo Forest Business and inflation
The planet and people’s well-being are essential, but a private investor must still have an economic motivation to invest.
The beauty of an investment in forests is that in addition to helping the environment and the world, it also helps the investor because it certainly protects him from inflation and makes him obtain an attractive income for many years.
An investment in a bamboo forest is an investment that protects against inflation. We should always evaluate the loss of value of the land if it is purchased.
Suppose we want to avoid losses related to the land value. In that case, it is possible to consider renting the land, even if the centennial duration of bamboo plantation does not always make this solution feasible.
An investment in a classic forest would take at least 10-15 years to reap the profits because the trees take time to grow. With the giant bamboo forest, this step is much faster as the bamboo plants grow very fast.
In ideal conditions, a right bamboo plant can grow up to 100 cm per day; this means almost immediately starting to profit from the harvest.
As we said at the beginning of the chapter, a bamboo forest can be pruned every year and grow back in the same way as a classic forest, in which the trees, once cut, will never grow back.
However, bamboo can also be born in soils with shallow quality. Therefore, it is possible to buy an undervalued land where other more demanding plants could not be cultivated.
The purchase of land for the cultivation of bamboo and choosing the soil should protect you from the dangers of inflation.
Today central banks are flooding the markets with liquidity, which could lead to inflation or hyperinflation over time.
A Bamboo forest as a source of income
Many investors approach this business looking for a source of income and perhaps a passive income; I would be cautious on this aspect.
This type of investment has many variables that will need to be considered, and we should choose only reliable partners.
The earnings promises that we can find online for this new business are (generally) very optimistic, and many are based on the fact that bamboo has a fast and monstrous growth.
However, as we have seen previously, bamboo has an extensive growth range; in fact, it could grow 7.5 cm per day up to 100 cm.
Considering the growth of 100 cm per day and considering one harvest per year, it is straightforward to jump into this business expecting stellar earnings.
But how to have the guarantee of the growth of a plant? There are too many variables to take into consideration. Therefore, it is unlikely that an investor will understand for himself whether the investment is profitable or not.
Since now, we haven’t considered other variables such as climatic disasters, fires, or other catastrophes that could damage the harvest or otherwise reduce its quantity.
One factor to consider is the climate in which bamboo plantation is grown; it produces much better where there is at least 50-100mm rainfall during the month.
Unlike other investments, many variables are considered, and many do not have comfortable and confident predictability.
Therefore, the best choice is to make a highly prudent business plan and not expect the promised returns from the commercials.
Relying on serious companies is the most critical aspect of this business. In the next articles, we will examine other factors and identify the most serious participants in this market.