Glossary

Forest investments easily explained

A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z

A

Agroforestry

Agroforestry combines several aspects of agriculture and forestry. It is a mixed forest system of agricultural crops and several species of wood, which usually has a high biodiversity, like the ForestFinance cocoa forest in Peru.

B

Biodiversity

The term biodiversity is short for 'biological diversity' and refers to the entire spectrum and variety and variability of life on Earth. Biodiversity includes three major biological aspects: genetic diversity within a species, diversity of species and diversity of ecosystems.

 

Biological hotspots

Biological hotspots are regions which contain many different endemic plant and tree species. They are globally endangered, for example by deforestation.

 

Biomass

Biodegradable materials from agriculture and forestry that are used as a source of energy are called biomass.

 

Bulk cocoa

Bulk cocoa is made from Forastero cocoa trees (more resilient but less fine-flavoured than fine cocoa beans) and is mainly produced in monocultures in West Africa. Bulk cocoa accounts for the majority of the global cocoa harvest.

C

Clear-cutting

Clear-cutting is when every single marketable tree is cut down from a selected area.

 

Cocoa processing facility

Our very own drying and fermentation facilities allow ForestFinance to process the cocoa harvest into fine cocoa. Heat collectors make sure the freshly harvested cocoa beans are naturally fermented and dried.

 

Commercial woodland

Through afforestation a new managed forest suited to the location comes into existence, that is also used as commercial woodland. Fallow land is turned into a forest ecosystem, providing new habitats for the local flora and fauna. The ecosystem of a newly planted forest is less complex than that of a primary forest. Achieving the same complex condition as its predecessor usually requires hundreds of years of regeneration and a strict ecological orientation of the forest management.

E

Educational nature trail

Our educational nature trail leads through a biodiverse mixed forest at the Finca Los Monos (one of the oldest ForestFinance afforestation projects) in Panama and the adjacent forest reserve. This educational nature trail is supposed to encourage local pupils and other visitors to learn about the value of forests for them and the environment.

F

Fallow land

Fallow land is unfarmed land which is not being cultivated (for economic or regenerative reasons).

 

Fine cocoa

The main difference between fine cocoa and bulk cocoa lies in the taste and quality. Although the International Cocoa Organization does not provide any generally applicable criteria, the most relevant characteristics of fine cocoa are the genetic origin of seeds, the morphological properties of the plant as well as chemical properties of the cocoa beans and differences in colour. Fine cocoa beans are normally produced from Criollo or Trinitario cocoa trees.

 

Forestry

Forestry describes growing and caring for forests as well as cultivating them for commercial purposes.

H

Harvest co-operative

In a harvest co-operative, thinnings, harvests and sales of forest products are carried out within a community, including all investors from the same year of planting. This serves the purpose of minimising costs and increasing profits for customers. Both, the costs as well as the proceeds of a harvest co-operative are proportionately distributed among the members of the same harvest co-operative.

M

Mixed forest

A mixed forest contains many different tree species. A ForestFinance forest contains up to seven different types of exotic trees as well as a selection of native tree species which grow on what used to be fallow land. Contrary to monocultures, mixed cultures do not deplete the soil. Due to the high biodiversity of our mixed forests they are much less affected by pests and diseases than monocultures.

 

Monitoring

Monitoring in forests describes all activities such as measurements and development of trees and biodiversity. ForestFinance forest technology also includes digital monitoring via satellite images.

 

Monoculture

In a monoculture only a single kind of tree or plant is grown over the course of several years.

P

Plenter forest

In a plenter forest, or continous cover forest, trees are harvested selectively; a permanent forest comes into existence. ForestFinance transforms fallow land into a forest ecosystem, creating new habitats for native plants and animals.

 

Precious wood

In comparison to common wood, precious wood has a high density, rather destinctive features and is also more pest-resistant. Precious woods such as teak or mahogany are usually used and traded as construction wood.

 

Primary forest

A primary forest is largely untouched by man (primeval forest).

 

Protected rainforest area

The protected rainforest area in Panama, contains ancient trees and is home to rare and endangered plant and animal species. The rainforest is not being cultivated.

R

Real assets

Direct investments provided by ForestFinance are investments in real assets such as wood and cocoa, which are largely unaffected by stock market fluctuations.

 

Replanting guarantee

ForestFinance offers a replanting guarantee for poorly developed or damaged trees during the first five years of growing. This means insufficiently grown seedlings or trees are being replanted by ForestFinance.

 

RootProof

The RootProof seal gives consumers the certainty of knowing exactly where the essential components of their product come from. By means of links to maps or GPS data, which can be found directly on the product, the consumer is quickly and transparently informed of the product's origin and its way of transportation.

S

Short rotation plantation

A short rotation plantation is mainly used for cultivating fast-growing trees in monocultures. The objective is to produce a certain amount of timber as quickly as possible. At ForestFinance we aim at successfully creating real forests in the long run which are not solely grown for rapid financial profits. This is why we apply our mixed forest concept.

T

Tangible assets

(see Real assets)

 

Timber

In comparison to firewood, timber is primarily used in construction and furniture industries.

 

Transformation

At ForestFinance transformation means a conversion of monocultures into biodiverse mixed forests. Acacia trees improve the soil by aerating and enriching it with nutrients, enabling other tree species to grow. Also, through our sustainable management of the agroforestry systems the cocoa forest is transformed into a mixed forest in the course the investment period.

 

Tree nursery

A tree nursery is a place where plants are propagated and grown to usable size. Tree seedlings of native tree species are being cultivated in our very own nursery and later on transplanted into the forest areas.