Green investments are here to stay. Politicians, media, celebrities, and even big corporations are all singing from the same hymn sheet on this issue. And when that happens, it’s wise to pay attention.
With so many green investment classes and different options available it can be difficult to know where to start.
With over a decade of experience in the green investment space we’re uniquely placed to explain why we believe that truffle producing trees are one of the best green investment options available.
You Might Be Surprised How Well Truffle Producing Trees Compare
Investing in forestry is one of the oldest green investments. Billions of dollars are invested in timber producing trees each year. For some countries, like Canada, forestry investments make up a significant part of the countries GDP.
Despite this, we believe truffle producing trees are a superior investment to traditional forestry.
Why Do Investors Like Forestry?
Forestry is seen as the ultimate safe-haven investment. Other asset classes such as stocks and real estate are closely tied to the U.S. and increasingly, global economy. When one goes down, they all tend to follow.
Forestry is a long-term investment and is largely immune to the ups and downs of the market. Given that a forestry investment can take up to 50 years mature this is hardly surprising. It gives forestry investors all the time they need to sell at the right prices. If demand for timber is low, they can simply wait a couple of years for better prices.
What Makes Truffle Producing Trees Such A Compelling Investment?
Our truffle producing trees have a few things going for them which elevate them above other forestry offerings.
The first is a lower cost of entry. Investing with a reputable forestry company can costs hundreds of thousands if not millions. That’s a lot of money for anyone, especially when you remember it can take between 20 any 50 years to realize any profits.
This leads us to another area where truffle producing trees are a better investment than traditional forestry.
Truffles Bring Faster Returns
With truffle producing trees the goal is to harvest the truffles and not the trees. We don’t need to wait decades for the trees to mature. Our 2022 harvest included trees as young as three years old which were already producing truffles. Folks that invested with us three years ago have already started receiving profits.
Of course, the trees are still immature at this stage, so profits are relatively small. As the trees and roots grow there’s more room for truffles to grow. However, the yields will increase each year for the next five or six years as the trees mature.
Truffles Are Inflation Resistant
Truffle harvests take place annually with the truffles sold at the current market price. High inflation isreflected in a higher price for the truffles we sell. Just as food at the supermarket gets more expensive during high inflation, so do truffles.
Truffles are immune to inflation, but other investment classes are not.
For example, high inflation can cause real estate prices to fall, as potential buyers find it hard to get a loan at an affordable rate. Stocks can also fall in times of high inflation as investors look to free up money to cover rising costs.
Foresty is also an inflation resistant investment. However, the timber market is moved by huge volume. During high inflation prices can fall as demand for new housing and infrastructure projects fall.
This gives truffle producing trees the edge as a hedge against inflation.
Truffles Provide A Better Return On Investment
We grow the Périgord Black Truffle, one of the world’s most expensive foods. Truffle prices are high and have been increasing over recent years. Put simply, there aren’t enough truffles in the world to keep up with demand.
We project to outperform traditional forestry by a significant margin. Our projected returns are between 15-19% per annum. Although this sounds a lot, we believe it’s actually a conservative estimate.
Three years ago, we made some projections on the future truffle prices we could expect to see. Truffle prices are already ahead of what we predicted and show no signs of slowing down.
Truffles: A Green Investment That Brings Peace Of Mind
Something that can go overlooked when it comes to forestry investments are the type of trees being planted. Companies that don’t plant native trees can actually do more harm than good.
A good example of this is Oil Palm trees. The oil from these trees is used in everything from soap and shampoo through to processed foods and even bio fuel. Oil Palm trees are easy to grow and profitable for the companies that grow it.
But there’s a catch.
Oil Palm trees are one of the leading causes of deforestation. Natural jungle and rainforests are being cut down and replaced with Oil Palm plantations on a massive scale.
This isn’t simply replacing one type of tree with another. The native trees that make up jungle and rainforest play a huge role in the local ecosystems. They provide a home to countless species of fauna and flora. Without their trees they have nowhere to live. The delicate balance of nature is disturbed and in many cases won’t ever return.
After a few generations of Oil Palm trees most of the nutrients have been taken from the soil. Desertification begins and land which was once rainforest becomes a barren wasteland.
At Truffle Farms Europe we only use native trees. Our plantation in El Pozuelo, Spain uses Mediterranean Oak trees which will work with and improve the local eco-system.
Europe lost thousands of acres of woodland over the past century. We’re doing our bit to help bring it back, albeit on a smaller scale.
We don’t know of another green investment which has the same combination of high-returns and ethical integrity as truffle producing trees.
The cost of entry is lower than forestry and there are fewer risks. Buying trees in Latin America or Asia has always been risky, but our plantations are in Spain (and soon in Scotland). We’re fully regulated and compliant and members can visit their trees at any time.
Governments are doing all they can to encourage people into green investments such as ourselves. The tax benefits of making a green investment are part of the reason we have so many overseas members.
Contact us today to learn more about making truffle producing trees a part of your portfolio.