Teak farms in Ecuador

Teak logs "made in Ecuador"

Although teak logs harvested from native forests, principally in India and Myanmar, are major contributors to the global timber trade as well as to domestic markets, the supply of forest logs from these countries is becoming progressively restricted. In Thailand, harvesting of teak, along with other native forest species, has been prohibited since 1989, while in the Laos People's Democratic Republic, supplies have been severely constrained pending a reassessment of harvest potentials. Thus in long-established and substantial markets for teak products, such as Thailand, Singapore and China, there is major concern regarding the future supply of teak. Plantations are an important potential source of timber to narrow the growing gap between supply and demand for teak.

The durability and workability of teak was recognized many centuries ago, leading to its relatively widespread distribution and cultivation throughout the tropics. Today, teak ranks among the top five tropical hardwood species in terms of plantation area established worldwide.

Although teak plantations date back as far as 150 years in India and Myanmar, plantation establishment has accelerated over the past 20 years. Teak plantations have demonstrated good potential. With the decreasing availability of teak from natural forests, plantations are an increasingly important source of timber to meet the demand. In the future, plantations will probably be the most important sources of teak. As demand for plantation-grown teak grows, the private sector has increasingly become involved in plantations.

The lessons that can be drawn from teak are relevant also to other tropical hardwood species such as mahogany (Swietenia Macrophylla), red cedar (Cedrela Odorata) and rosewood (Dalbergia sissoo). All of these compete in high-value niche markets and present similar environmental concerns associated with harvesting from tropical forests.

Investment in tree plantations, which was always relatively low in India, has recently grown in importance. Forest-based industries, recognizing that the existing forests cannot continue to meet their raw material requirements, are expected to play a significant part in increasing investments in plantation programmes in the coming years. Private investment in teak plantations has arisen as a response to the growing demand for housing- and furniture-grade timbers, of which teak is the most valued. India is one of the largest producers of teak in the world, but the supply does not meet national demand. The other strong demand for teak wood is China, and the traditional USA and EU markets.

It has been alleged that teak obtained from plantations is of inferior physical quality relative to teak obtained from the natural forest. More variability in wood quality has been observed in teak obtained from the natural forest than in plantation teak, and this is undesirable from the point of view of use. The general notion prevailing among teak users is that fast-growing teak produces only light, weak and spongy wood. However, studies conducted at the Forest Research Institute in Dehra Dun, India, do not support this view. Although plantation trees grow faster than forest trees, it has been shown that the relationship between growth rate and strength is not significant.

Studies by Sanwo based on dominant, co-dominant and subdominant trees from a 27-year-old teak plantation in Nigeria showed that the rate of growth has no significant influence on specific gravity. Teak wood is generally stronger at the upper and lower ends and comparatively weak at intermediate heights. A study on 20-year-old teak trees grown in plantations in wet areas in India gave similar results.

Other studies have indicated that wood density and mechanical properties are independent of growth rate or that fast-grown trees of ring-porous species have higher wood density and strength. More recently, a study on the wood properties of fast-grown plantation teak trees of different ages revealed that there were no significant differences in wood density, modulus of rupture (MOR), modulus of elasticity (MOE) or maximum crushing stress. It was concluded that young trees (13 to 21 years of age) are not necessarily inferior in wood density and strength to older trees aged 45 and 65 years, and hence that the rotation age of fast-grown teak wood can be reduced without affecting the timber strength.

Various products such as glue-edged boards, furniture, doors and small teakwood artefacts have been made from thinning materials, showing that even sapwood can be used to produce high-quality objects.

Although teak logs harvested from native forests, principally in India and Myanmar, are major contributors to the global timber trade as well as to domestic markets, the supply of forest logs from these countries is becoming progressively restricted. In Thailand, harvesting of teak, along with other native forest species, has been prohibited since 1989, while in the Laos People's Democratic Republic, supplies have been severely constrained pending a reassessment of harvest potentials. Thus in long-established and substantial markets for teak products, such as Thailand, Singapore and China, there is major concern regarding the future supply of teak.

Plantations are an important potential source of timber to narrow the growing gap between supply and demand for teak. This article looks at the potential of teak as a plantation species, focusing on management strategies, ecological requirements, growth performance, wood quality and availability of planting materials, with examples drawn particularly from the Malaysian experience. Finally, it enumerates some topics of current research likely to contribute to teak plantation development.

Why invest in timberland?
Timberland has become recognized as an attractive investment opportunity.  Globally over $12 billion is invested in timberland holdings by institutions like banks, insurance companies, pension funds and universities.  Analysis has shown this is a relatively low-risk investment that provides excellent diversification for institutional portfolios (with negative correlation with stock and bond returns and little correlation with the real estate market).  More importantly, rates of return for timberland investment have been excellent, with nominal rates of return averaging 9 to 12 percent.  Over the 1990's the major timber index showed a 17 percent average annual rate of return and university research indicates that intensive timber management can produce 12 to 15 percent nominal rates of return.

Teak logs from Ecuador

Where are timberland opportunities located?
Current major investment regions in the United States are the South, the Pacific Northwest and the Northeast.  Internationally, other investment areas are New Zealand, Australia, Canada and South America.  The South American countries are the predominant timberland investment region due the weather conditions, easy growing of hardwoods, low cost, big demand worldwide in special of teak wood.

Teak has fairly good growth rates and the return from the species is lucrative enough for explotation on a commercial basis. It is thus suitable as a plantation timber species in areas with ecological conditions appropriate for its growth, and it appears to have potential for use in the Forest Plantation Programme in some countries. Preliminary experiences indicate that teak can grow on a wide variety of soil types in tropical countries; however, on problematic soils there is a definite need to use intensive silvicultural management practices. 

Based in 51 years experience in teak wood here, as Rockefeller family planted the first teak seeds in Ecuador in year 1956 with the vision of advanced entrepreneurs, too many people development big cultivated fields of teak in extenses areas of our country.

Now, we are proud of our exportation of teak wood to all markets in the world, and this growing numbers are improved year by year.

The properties that we sell are easy to handle since we are company specialized and dedicated to prune, to clear weeds, to fertilize and to take full care of the farms with Forest Engineers and qualified personnel that taking care of the necessities of the teak plantations.