Individuals
Eucalyptus Holding Limited gives the opportunity to new Farmers – as well as medium and large scale investors – to enter into the Contracted Farming Program, in order to cultivate eucalyptus plantations and therefore to achieve significant long term returns.
“Contracted Farming Program” is a specific and defined 20-year agreement between a farmer and EHL, by which EHL undertakes to install and operate a eucalyptus plantation, in cooperation with the farmer or on behalf of him. The agreement is based on the farmer’s obligation to sell the produced biomass to EHL in a fixed and predefined price, as long as the contract is valid.
By that way, EHL grants the produced biomass for further treatment and trading, while the farmer is being generously compensated with a fixed yield every harvesting period, minimizing the market or any potential operational risk factor.
The above business model is also applied by major Financial Institutions in Greece and worldwide, during the effort of empowering the forestry / agricultural sector and creating added value to local economies.
Farmer’s returns
The yield per hectare and thus the economic rewards of the farmer, depends both on the quantity of seedlings that will be planted and the chosen species of eucalyptus that will be selected for planting but also the composition of the soil.
After further researches, it has been observed that most fertile areas for eucalyptus cultivation are lowland, after showing almost double performance in relation to the hills. In particular, a flat area can be cultivated up to 800 seedlings / acre, which will generate a gross income of about 17.000 € / hectare, on each harvest (every 2-3 years).
Regarding the expenditure, it is estimated that each seedling can cost from 1,20 € – 1,50 € depending on the size, variety etc.
The contract signed by EHL with the farmer has a 20-year duration, with a “locked” price of production per tone of dry mass, equal to 50€/tone of dry wood-mass.
Support to the Farmer
EHL is present during all phases of the cultivation. Besides the supply of seedlings, we also provide products such as fertilizers, we give all the necessary information to prepare the soil and all necessary preparatory work. Alternatively, the farmer may take care of the same process, as long as the growing requirements are met, in a way that is defined by our team.
Tones of potential wood production
- Tones of Wood depending the planted hectares
- Tones of Wood depending the planted hectares