11 Sep 2009

Teak offers highest yields for timber investors

Posted by Richard Strong

teak-timber

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”.

The Timber Investment Blog is sponsored by Greenwood Management. For more information on investing in Forestry please click here
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9 Responses to “Teak offers highest yields for timber investors”

  1. 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

  2. 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

  3. Hello, have not ear from you Mr. Arguello from Nicaragua. I can help and asist you?

     

    Manuel Mollinedo

  4. 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

  5. I am interested in procurement of teak logs on a long term basis from all over central america. I am planning a visit in Costa Rica, El Salvador, Guatemala, Panama on sept. Any body who have any common interest pls let me know.

     

    Diljo Thaliyan

  6. i am a new catch into the timber industry,my family has a large portion of land in south-western (ondo state) part of nigeria,a state known as the pillar of timber in nigeria.pls i would want to know more about the strategic accumulation of timber in every part of world and those who are interested in large volumes of timber

     

    okoh george .o.

  7. We own and operate a sustainable forestry company in Nicaragua. Maderas Sostenibles manages teak and mixed species plantations. We agree that this is one of the best investment options these days considering the global trends of climate change and investor uncertainty in the stock market.

    Fernando, if you want more info on our company in Nicaragua visit our website http://www.reforestationinvestments.com

     

    Aram Terry

  8. If you have teak projects looking for funding or teak farms for sael, please list your opportunity on the platform of http://www.investingalternatively.com.

     

    Investing Alternatively

  9. i am interested to know about teak timber how to process drying and get good quality to export and to also international prices best regards
    Abdalla

     

    Abdalla

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