Futuro Forestal/self-description

Futuro Forestal is a private German-Panamanian Reforestation and Investment Service Company that in the last 15 years has developed an innovative model for ecologically and socially sustainable reforestation in the tropics.

The Company is currently managing an estimated 16 Million trees in tropical countries like Nicaragua and Panama

Business Model
The 3 main objectives of Futuro Forestal are: a) create a high profit and highly sustainable product for investors, b) provide an alternative to the common fine tropical timber production, c) improve the living and working conditions of the rural communities surrounding the project.

Until now, most fine tropical timber has come from primary rainforests or from monoculture plantations. Futuro Forestal provides an alternative way of reaching a high productivity based on the combination of high maintainance and high biodiversity.

The areas chosen for the reforestation were covered by forests in former times, then were deforested and used for agriculture and cattle. Futuro Forestal’s mission is to transform those areas into forests again.

By using native species in special ratios and distances that are adjusted to the specific conditions of the site, Futuro Forestal manages to create a forest that comes closer to a primary forest than other plantations found throughout the region. This kind of forest provides a much better habitat to native animal and plant species than the former pasture land or a monoculture plantation, thus creating a very high and over time increasing degree of biodiversity. This biodiversity in return will create a stable ecologic system in the forest which will result in low vulnerability to plagues. That increases growth and health of the forest leading to better yields and a higher quality of the produced timber.

Futuro Forestal uses a system of mixed plantations planting 6 native species with high commercial value, namely:

Amarillo (Terminalia amazonia)

Mahagony (Swietenia macrophylla)

Spine Cedar (Bombacopsis quinatum)

Almond (Dipterix panamensis)

Zapatero (Hyeronima alchorneoides)

Rosewood (Dalbergia retusas)

and as the only introduced species:

Teak (Tectona grandis)

about 65 native species with less commercial value are planted to increase the ecosystem stability and the biodiversity.

In addition Futuro Forestal puts a focus on higher maintainance, assuring correct growth to create round straight logs. This does not only provide for a high quality of the grown tiber but also ensures that many jobs are created in the region that will be needed for the entire time of the project, thus creating sustainable economic growth in the region.

Futuro Forestal pays about average salaries in addition to social security and offers proactive training courses for its employees such as literacy programs and computer courses.

History
Since the foundation of Futuro Forestal in 1994 the company has worked on improving the business model which, from the beginnig, involved planting a mixed species forest and creating high biodiversity.

The first plantations were set up in Las Lajas in Panama. Only few hectares were planted for private investors. Then the company focused on research and developing new methods of foresting. In the following years new plantations were set up only slowly as the focus was still on developing the own knowledge and gaining expertise. Futuro Forestal was awarded FSC-Certification in 1997 as the first company at all in Panama.

In the first years Futuro Forestl focused on small investors who were able to buy small parts of lands or invest into different projects such as the "Baumsparvertrag" or the "Woodstock-Invest". With growing numbers of investors new Fincas were set up in Veraguas (2001) and Darién (2004). At the same time office work grew more intense, because the increasing number of small investors created a need for great amounts of administration.

In 2008 Futuro Forestal sold obligations and contracts of its small investors to its contractor Forest Finance. Forest Finance had already done much of the office work for Futuro Forestal earlier, but from this date the two companies were able to go seperate and independant ways.

Futuro Forestal is currently working with several large scale investors which enables the company to work up to its full potential in foresting instead of dealing with high amounts of office work.

Quality Standards and Certifications
The accomplishment of strong quality criteria in all forest operations is a major objective of Futuro Forestal. To guarantee highest quality, Futuro Forestal contracts external and independent agencies to evaluate the operations:

FSC-Certification
Futuro Forestal is certified by the FSC (Forest Stewardship Council). The quality and sustainability of the forest operations is certified and evaluated every year by the agency SmartWood (certification agency of the Rainforest Alliance, USA). The FSC sets high standards to fight illegal logging and sale of fine tropical timber and unsustainable exploitation of tropical primary forests.

Sicirec
The independent Rating-Agency Sicirec also evaluates frequently the quality of the economical work and the forest operations of Futuro Forestal and qualified the company as the best forest investment in Latin America.

Co-Operations and Memberships
Futuro Forestal counts a variety of co-operations and memberships and is part of national and international networks. The co-operations are used to continuously improve the quality standards and to open new markets for investors. Futuro Forestal collaborates permanently with universities and research institutes, like the National University of Panama, the Smithsonian Tropical Research Institute and the Yale School of Forestry and Environmental Studies, to guarantee a high standard and to establish the newest research findings.

Ciudad del Saber
Futuro Forestal is a member of the Techno Park Ciudad del Saber in Panama (“City of Knowledge”). The project, which is also partly funded by the EU- commission, tries to connect scientific institutions more to companies.

American Chamber of Commerce & Industry of Panama
The American Chamber of Commerce & Industry of Panama supports the economical exchange of the companies between Panama and the US. Futuro Forestal is a member since 2005.

Yale University
As part of the close collaboration with the famous university, professors and students conduct research on a frequent basis in the plantations of Futuro Forestal.

PRORENA
Since 2001 Futuro Forestal is collaborating closely with PRORENA, an initiative of the Yale School of Forestry and Environmental Studies and the Smithsonian Tropical Research Institute to support reforestation with native species. On 15-10% per hectare species like Balsa (Ochroma pyramidale), Nazareno (Peltogyne purpurea), Lagarto (Lacmelea panamensis), Panama (Sterculia apetala) and Nispero (Manilkara sapota) are planted. Those areas that can contain up to 50 native tree species are used less intensive and established for biodiversity and conservation matters.

Red Global
Since February 2005, Futuro Forestal is member of the Pacto Gobal Panama. The initiative of the United Nations’ General Secretary Kofi Annan was first presented in the Forum of Global Economics in Davos in February 1999. Its intention is to strengthen the cooperation of the United Nations and companies worldwide, which will be useful to enforce the principal aims of the UN. Kofi Annan requested that companies integrate 10 of the principles for the protection of human rights in their corporate policy.

Contact
Futuro Forestal S.A.

Parker Drive 919

Clayton

Panama City, Republic of Panama

[mailto:mc@futuroforestal.com mc@futuroforestal.com]