11 Sep 2009
Teak offers highest yields for timber investors
Timber investments are some of the safest and steadiest available, with teak in particular offering one of the best values and highest yields in the timber sector, according to a Panama-based expert with 25 years of experience in the timber investment industry.
Jeff Duda notes that timber “protects an investor” during times of inflation, and he points out that teak forms a niche segment of the timber industry which is managed by small, privately-owned organisations rather than bigger institutional operators.
Writing in NuWire Investor, the president and managing director of Panama Teak Forestry advises anyone considering a timber investment to investigate the data a given company uses to calculate return on investment.
“Such data may include price per unit and growth rate,” he observes.
“Teak is a commercial wood, which means the price per unit is pretty well fixed at different sizes and ages of the stand, and at different points of being processed,” he continues.
Potential timber investors are warned against companies which claim to be able to grow trees “faster than anyone has ever grown a teak tree over the past 1,000 years”, as they are likely to disappoint over time.
Duda recommends using a growth rate of 10 to 12 cubic meters per year for teak, concluding that a final harvest yield of 200 to 220 cubic meters per hectare after an average of 25 years is “a good conservative estimate”.
i am very interested on investing on a teak plantation in my farm located in Nicaragua(central america) i am ready just to plant but i was wondering if their were certain investors who would like to invest in this teak project here in Nicaragua. i would appreciate if you can give me any advices of how to plant or with who i can contact to
thank you so much
regards
Fernando Arguello
Fernando Arguello
February 9th, 2010 at 7:35 pmpermalink
Hello, I am working as individual forest consultant in the theme of forest plantation specially for teak in Guatemala.According tomy experience there should be done a lot of work studing the soils and topografy conditions and the sees quality before to lauch a teak proyect.
I am also looking for inverstors who are looking where to invest in a huge teak and native species project which I had wrote. Regards
Manuel Mollinedo
February 11th, 2010 at 5:32 pmpermalink
Hello, have not ear from you Mr. Arguello from Nicaragua. I can help and asist you?
Manuel Mollinedo
March 29th, 2010 at 10:56 pmpermalink
I have teak plantation investment..with planting time is 5 year and nett profit return for 5 year is 170%.if any one interest pls contact me at suwandi.hung@yahoo.com for more information
Suwandi
April 1st, 2010 at 7:48 ampermalink