Commercial forestry plantations for sustainable timber production

Forest industry

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Commercial forestry plantations for sustainable timber production
Cultivation and sustainable timber production for the construction and export sector to reduce pressure on forests.
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Extractives and Minerals Processing
Forestry and Paper
Business Model Description

Specializing in the transformation of primary timber products into value-added products, with a strong emphasis on innovation and production of timber goods, aiming to consolidate a forestry cluster.

Expected Impact

Promote sustainable forestry economic activities that can bring opportunities to the local communities as well as women.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
Melina and Teak harvest yields are estimated 1.7% and 1.9% (13).
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
In 2018 sales of pallets were USD 72 million (11).
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
In a silvopastoral system, the costs of management, preparation, and establishment of trees in strips can be around USD 229-281 per hectare (13).
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Life on Land (SDG 15)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Responsible Consumption and Production (SDG 12) Decent Work and Economic Growth (SDG 8)
Sector Sources
  • 1) MIDEPLAN (2021). Estrategia Económica Territorial para una Economía Inclusiva y Descarbonizada 2020-2050 en Costa Rica 2) Gobierno de Costa Rica (2018). Plan Nacional de Descarbonización 2018-2050. 3) INAMU (2018). Política Nacional para la Igualdad Efectiva entre Mujeres y Hombres 2018-2030, PIEG 4) MAG (2018) Plan de intervenciones estratégicas 2019-2022. 5) Presidencia (2021). EXPORTACIÓN DE PLANTAS ORNAMENTALES CRECE EN UN 31% ESTE AÑO. Comunicado oficial. 6) PROCOMER (2021). Guía de exportación. Trámites y requisitos. 7) INEC (2015). VI Censo Nacional Agropecuario. CARACTERÍSTICAS DE LAS FINCAS Y DE LAS PERSONAS PRODUCTORAS. INEC (2021). Anuario estadístico 8) Asamblea de Costa Rica (1998). Ley 7779, Ley de Uso, Manejo y Conservación de Suelos. 9) Asamblea de Costa Rica (1997). Ley 7064, Ley de Fomento a la Producción Agropecuaria y MAG 10) Asamblea Legislativa (1996). Ley 7575, Ley Forestal.
IOA Sources
  • 11) ONF (2019). USOS Y APORTESDE LA MADERA EN COSTA RICA. Oficina Nacional Forestal 12) Chavarria y Molina (2017). ¿Por qué no incrementa el consumo de madera local? El caso de Costa Rica. Revista Forestal Mesoamericana Kurú 13) Ospino et al (2020). Costos de producción de teca (Tectonagrandis) y melina (Gmelinaarborea) en sistemas silvopastoriles de la zona Norte de Costa Rica. Revista de Agronomía Costarricense 14) PROCOMER (2017). Mercado mundial de la madera y tendencias para productos de valor agregado. Dirección de Inteligencia Comercial. 15) SEPSA (2019). Informe de Gestión del Sector Agropecuario, Pesquero y Rural Mayo 2018 – Abril 2019