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Teak is one of the most beautiful and valuable hardwoods in the world. Teak is a species that is optimally suitable for large-scale plantations because of its fast growth rate.
Teak contains natural oils that makes it water resistant and repels insects. Teak is considered one of the most durable woods in the world. Teak has been used in marine and outdoor applications for centuries on boats, decks, exterior floors and outdoor furniture. Teak is considered one of the most stable woods in the world, too. In fact, it is twice as stable as American oak when used as interior flooring. Teak is used in an endless variety of interior applications such as flooring, furniture, wall paneling, kitchen cabinets and other decorative applications.
Having being intensely exploited for decades, Teak is difficult to obtain and currently considered in danger of extinction. As an example, Teak from Burma is being boycotted by many countries due to the harvesting and labor practices that are allowed. Because of its many uses, demand and prices for Teak has risen steadily. The primary market for Teak logs and blocks is India. Over 90% of the Teak logs and blocks from Ecuador and Panama are sold and shipped to India. It is projected that China and Vietnam will become larger markets for plantation teak in the future.
Historically, the price of teak has increased at an average rate of 8% per year in the last three decades. In addition to being an extremely fast growing species, Teaks silvicultural requirements have been greatly researched and documented. Teak was introduced in Ecuador in the 1940s. In the 1990s, Ecuador’s teak area increased from around 1,000 ha (1987) to more than 25,000 ha in 1997. Ecuador currently has a significantly large area dedicated to forest plantations, calculated in around 165,000 hectares, from which a high percentage is planted with Teak.
In the last decade, Teak plantations have increased considerably in this country, as the high value of Teak is now considered, in addition to helping the environment.
One of the main goals of our plantation management is to maximize its value by ensuring accurate and timely silvicultural practices, such as thinning and pruning. Our experience in Teak plantation management assures optimum results for both quantity and quality of the wood.
Our foresters lead every step of the process, from the field preparation to the final harvest of the trees. Throughout this process, their main goal is to ultimately obtain the highest quality and quantity of wood, achieving the best possible return on the investment.
Tropical rainforests are the source of 99% of the tropical hardwoods sold all over the world. Their progressive disappearance limits the needed supply and causes pressure from concerned government and environmental groups, slowly putting a stop to unsustainable deforestation. In some countries, logging has been completely banned, in other, protected areas have been established.
On top of this, demand for wood continuously increases. The world population has more than doubled in the last five decades, a tendency that substantially influences the need for more wood every year.
Leading manufacturing companies from all over the world are already requiring that the wood they purchase must be from sustainable sources. In the near future, only quality hardwoods from certified, sustainable plantations will be accepted in the market. Our plantation site is currently pasture land. When we begin planting, we will certify our plantations. Certification assures investors and consumers that the proper practices for forestry, manufacturing and distribution have been 3rd-party audited. We are proud to be an active participant in the process that links the consumer’s purchased product back to the source of supply in Ecuador. Many timber operations claim to be sustainable but that is by their own unverified claim. We call that “Green Washing”. It implies sustainable is the same as certified. Certified is always sustainable. Sustainable is not always certified. There is a REAL difference!
Given the enormous demand and the insufficient supply, international market prices for wood continue to rise every year. Investing in Teak allows your assets to safely grow in value each year, regardless of international financial markets or currencies.
Growing tropical hardwood trees in a plantation proves to be a profitable investment. Teak trees have been grown in plantations for over a century, but there are still too few plantations to impact the world’s demand. Even if the amount of tropical hardwood plantations in the world significantly increased within a few years, they would only be able to supply a very small percentage of the world demand.
This investment allows you to profit as you play a part in helping the environment.
Investing in Teak trees helps protect tropical rainforests. In addition, it benefits the planet by producing oxygen, cleansing the air and consuming greenhouse gases.
As a result of this investment, aside from the gratifying knowledge that you are helping our environment, you will receive considerable profits.
From the moment they are planted, and throughout twenty years, your trees would grow in value as they reach maturity. In addition, their wood would grow in value in the international market, making your investment even more profitable. After twenty years, the value of your investment will have increased in at least 1,000%, according to our conservative estimates.
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