Cost for land, planting and management for a full 25 year rotation in Panama runs about $8,000 per hectare ($3,300 per acre). You just need to make sure the operator will be around in 25 years time, as you are dependent on him for your investment. Given below is the cost and returns of Teak Wood plantation farming. I had happily been in Nicaragua for three months because of governments shutting down the world. From the Gran Pacifica resort, the horseback ride took about 45 mosquito-infested minutes. No wonder it is in such demand. So we get a total of 200 cubic meters. It is a very “different” type of investment. This is great, but to be completely honest with you I have no idea about trees. We appreciate hard assets, investments you can see and touch, even go to visit… from apartments in central Paris to teak plantations in the jungles of Panama. This investment was a teak plantation – set up by our anonymous friend AS of MH. Investment in the property and forest management until the final harvest: The supply for this kind of quality teak wood has been too low and the demand very high for several years now. Not really, but you must take this risk into account. And if you can, then you pay high amounts, which makes it impossible for a large majority. “Thinning”, which means removing the weak trees to make space for the good ones, takes place on a regular basis but starts earning money in year 12. Because of the current discussion about climate change, further financial incentives can be considered and are likely in the near future. Therefore teak wood has higher demand in national as well as International markets. Hence adequate funds should be made available in time for tending operations. Sirivana Teak Plantation project offers 1 Acre and in multiples too. Of these, 142,082 are teak. Sadaharitha Plantations Ltd, the leading commercial forestry conglomerate in Sri Lanka, was founded in the year 2002.During its journey over the last 18 years, Sadaharitha took great strides towards its sustainable growth. These funds have been generated by a gasoline tax for decades. Just make sure you choose your operator wisely. These numbers are in constant dollars, so should be higher in nominal terms taking inflation into account. Our well-managed teak plantations, trees are thinned at regular intervals. AsiaTeak was established in April 2009 for the sole purpose of managing and producing high grade teak from plantations in Sri Lanka and Thailand. • Forest yield estimation using a unique dataset and financial analyses were performed. As of now, there are already more than 220,000 trees either already growing or slated to be planted on the two TKO Farms. The pros and cons of the Montenegro Citizenship by Investment programme, One of the Best Structures for Digital Nomads: The Sole Proprietorship in the Country of Georgia, A Real Estate Investment in Skopje, North Macedonia, Investing in the stock market in Uzbekistan – a high-growth frontier market. Trees must not be felled and violations are prosecuted with very long prison sentences. When you compare the features of the Panama Forestry teak residency package to those of other reforestation residency visa offerings, you'll find that our program offers the soundest, most profitable, and secure residency program available. Teak farming requires proper research (in terms of soil test, environment and climate) and good maintenance for 10–12 years. With prices and growth rates roughly comparable for well managed and well located plantations, return on investment (ROI) is based largely on the cost of purchasing and managing the teak plantation. Buy trees in Brazil and we’ll look after them for you. Forestry Projects And Our First Teak Plantation INvestment. Global Sales Director Società Italiana Elicotteri set 2011 - feb 2014 2 anni 6 mesi. I see this investment as interesting for 3 types of people. Currently prices are at $3,000 US per cubic meter (*1). Don’t overexpose yourself and manage your expectations. Therefore, expenditure on proper maintenance of plantations is fully justified in the long term. 35 cubic feet are 1 cubic meter. The investment is in the middle of nature, and the mosquitoes are there to remind you of this. What about our forest management services? With prices and growth rates roughly comparable for well managed and well located plantations, return on investment (ROI) is based largely on the cost of purchasing and managing the teak plantation. Forestry Projects And Our First Teak Plantation INvestment. This corroborates a-15-year rotation teak plantation used for this paper. Best investment opportunities in Bihar Just do teak plantation in 1 acer and get 40 lacs return after 20 years. Thanks to a unique and intense program of tree establishment and management, we have a proven record in growing substantial quantities of hardwood timber. Objectively, I had time to kill and was quite intrigued by the opportunity to finally see one of these projects. For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use. Teak value addition is a promising investment opportunity. It is not a very transparent market due a lot of illegal logging happening in many places. If he goes bust, you end up with land in the middle of nowhere with trees that are vulnerable. So when investing in a teak wood plantation, you are looking at a (very) long term investment. This is possible in Costa Rica by only using the right forest management techniques on a high quality level, such as what we are offering. Teak Plantation. Maybe you’ve stumbled upon in-flight magazines or websites that promise high returns for agricultural and forestry investments. Anyone can plant a seed, but the real value in the timber is over the 25-year harvest cycle, as the wood develops. Security is a must. You are generally promised (very) high returns. You are in your thirties or forties, do not need liquidity, and want an investment that matures when you are about to retire. We sell whole land with teak trees and facilities that it will be register in your name or your company name in: 1) Public Notary. Disclosure: The developer offered me a return trip from Managua to his development (one hour drive each way), and two nights of accommodation in a lovely ocean-front apartment. 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. Environmentalists might not like teak trees because transporting them far away requires CO2-heavy transport and chopping trees is generally not cool. I accepted, with the condition that I would write whatever I want to. We researched prices in this context, which you can review in the following monthly report from June 2019 by the ITTO, https://www.itto.int/files/user/mis/MIS_16-30_June2019.pdf. Teak is a worldwide commodity like oil or natural gas. Organizing such an operation is not easy, and takes a lot on constant effort. We sell teak plantation farms: We do not sell shares, tittles, trees, acres of farm, parts, etc. TEAK (Tectona grandis): The A.P.F.D.C. However, Life Forestry Group teak plantations offer even more. 2.5 acres) is planted with 1,100 teak trees. It has an especially beautiful, honey hue, and is widely sought after and used to make such things as high-quality outdoor furniture and boat decking.An investment in teak, simply put, is an investment into a tree. The only aim was to line their own pockets. Teak Plantations Investment Controversies Teak plantation investment schemes have created considerable controversy in several countries including Costa Rica, India and the Netherlands. It is as … Whilst doing a bit of background due diligence, I found out that this developer also owns a teak wood plantation in which investing is possible. The majority of the funds were “invested in the teak plantation, and most of the remainder went in fees to – guess who – the handily-set-up company MH. We know many of these projects and companies personally and can therefore shed some light on it. Many experts agree that you should invest part of your savings or net worth in forest. They promote bio-diversity, contribute to the Anyone’s guess is as good as mine. • With your investment of $80,000.00 or more, you may apply for resident status in Panama • All legal fees are included to register the plantation in your name • Investment return is free of tax • You become the owner and direct beneficiary of all revenues from teak timber on you plantation… Teak is historically native to South East Asia. Having an investment mature in 25 years, and that thoroughly lacks liquidity, is potentially perfect to ensure your grandchildren don’t blow their inheritance on alcohol, women, cars and other frivolous pursuits. The Costa Rican government also gives investors a grant for reforestion projects. Cost for land, planting, and management for a full 25 year rotation in Panama, for example, runs about $8,000 per hectare ($3,300 per acre). Typically, though, the annual rainfall in areas where teak grows averages 1,250-1,650 mm with a 3-5 month dry season. Indians might stop being that interested in teak, or the Indian government could ban teak imports to drive the local forestry industry. Teak trees typically get harvested after 25 years. Investing in Teak Forestry in Sri Lanka. It sold shares in teak plantations on guaranteed interests and later diversified to other schemes through four principal companies: Anubhav Agrotech, Anubhav Green Farms & Resorts, Anubhav Plantations, and Anubhav Royal Orchards Exports.. The next large advantage of teak is, that it needs only 20 to 25 years until the trees are valuable and ready to sell. The plantation is part of the massive land package that the developer owns along the coast. The company will invest in establishing teak plantations and produce teak in … Join The Wandering Investor's Private List to not miss out on the latest FREE posts and investment analysis, © 2020 The Wandering Investor - All rights reserved. The wrong or insufficient forest management. Internationalization and Diversification Consulting. Assuming a price of $1,000 USD per cubic meter, we get $200,000 USD. Please contact us for additional information about becoming an owner in either the 2nd phase of the newborn Nicaragua farm (1/4 acre parcels starting at only $6,880) or the mature, 19-year-old Panama teak farm (1/4 acre parcels starting at $22,500). The wrong properties were purchased. After the harvest, plantations can be reforested again. This is something that won’t change in the future. This is something nobility has already done in the past. Without having to trim a tree or live on a plantation ... How to pair your investment with a second residency overseas for your own "PLAN-B" Pass generational-wealth on to your family ... to a free daily email newsletter by Mikkel Thorup and to be contacted for future marketing and sales opportunities from Teak Hardwoods. A Real Estate Investment in Managua or Gran Pacifica, Nicaragua? Teak plantation investment schemes have created considerable controversy in several countries including Costa Rica, India and the Netherlands. Additionally, data from the biggest market, India, is notoriously unreliable. Once we reached the plantation, I saw…trees. Many experts agree that you should … Africa saw the first major boom of teak plantations, in such countries as the Ivory Coast, Ghana, Benin, Togo and Nigeria. I enjoyed the presentation this evening on your Teak Hardwoods investment opportunity. Teak is the common name for the tropical hardwood tree species Tectona grandis and its wood products. The operator takes care of the everything for you. Oh, yes, one more thing: All your return from your reforestation investment is 100% tax-free in Panama. So why wait, let us dive into detailed farming of teak wood.. Teak wood known as the king of timber belongs to the family Verbenaceae. In our Agrotech plantation there are about 100,000 trees ranging from 10 to 25 years of age where each tree contains 0.75m 3 on average. The investment is said to amount to US $115 million. Teak plantation investment schemes have created considerable controversy in several countries including Costa Rica, India and the Netherlands. Follow me on Facebook, LinkedIn & join the PRIVATE LIST below to not miss out on future investment posts. The collective goal of AsiaTeak and its group of companies is to produce the world’s most sought-after and valuable teak trees. PROFITABILITY OF TEAK PLANTATIONS IN THE DORMAA DISTRICT OF THE BRONG AHAFO REGION OF GHANA We can have a fairly good appreciation of what the teak market is like currently, or next year, but in 25 years from now? That’s why it’s such a great time to make investments in the teak industry. This is what distinguishs us significantly from other providers in the industry. A tree plantation timber investment create long-term stable appreciating assets for pension funds that may be exposed to market volatility. Diversification is key, and this is definitely something very different. The plantation teak is Tectona Grandis the true teak that we have seen like floors, outdoor decking, furniture, solid doors and expensive decks for boats. The facts of teak plantations. Fundamentally, this article is not only about investing in a teak wood plantation, but also about various types of such packaged investments. Kilombero Valley Teak Company Limited. How did we arrive at this idea? So, start planting Teak wood at your vacant land and earn big profit. Internationalization & Diversification Consulting, real estate in Granada and San Juan Del Sur. Fires are a massive risk to teak plantations and older trees and plantations tend to have a far greater fire resistance than younger ones. Teak trees typically get harvested after 25 years. Green Teak Plantation & Investment giu 2014 - Presente 6 anni 7 mesi. Panama Teak Forestry operates several plantations and timber concessions therefor the investors enjoy the high returns of timber investment without the risks inherent in direct land ownership. A competent operator can mitigate these risks. So sure, the operator makes good money upfront when selling the parcels. Plantation wood from Myanmar, first and second grade quality has a price of 5,000-7,000 Indian Rupee per cubic foot (that’s not cubic meters). This document shows, that the prices have doubled since 2013!! Probably the most high-profile case concerned a Netherlands owned company, Flor y Fauna, involved in establishing teak plantations in Costa Rica. The word teak comes from the Malayalam (in the Malabar region) word th… one acre). Latin America is now a large “producer” of teak wood, mostly driven by private businesses, with Brazil and Panama taking the top two spots. Universal Media Networks Renewable Enegry Maldives Pvt. What I like about this particular developer is that he has skin in the game as his main business is the massive communities he is developing all over Central America. Anubhav Plantations was an Indian Chennai-based plantation company founded in 1992. So when investing in a teak wood plantation, you are looking at a (very) long term investment. Below you can watch how our team built a road in a very steep area of a teak plantation: According to a study from the University of Munich (April 2009), one hectare of a teak plantation can reduce the emission of CO2 by 28.1 tonnes per year. Now you might see that we calculated quite conservatively above with $1,000 per cubic meter. Investing in Teak– Elite Teak Trees – UK Trust Company Protection If you are looking for a sustainable investment but don’t want to compromise on the level of return investing in teak trees may be the ideal solution. Costa Rica is a country with extremely strict forestry legislation, which are hard to imagine in Europe or North America. I enjoyed an up-close-and-personal introduction to the reforestation visa option a half-dozen years ago when Lief and I visited the plantation of our friend Robert Kroesen. Its scie ntific name is Tectona grandis. But again, this is calculated very conservatively and cautiously. Get hybrid teak plants @ 114/- each at anywhere in Bihar.... For Order call us on 9661143136 Or Email us on madanrastogi@yahoo.co.in For more info pls call us on 9661143136. You buy a parcel within a plantation or field. Price have increased independently from crisis for decades. The start of our Costa Rica story began with forestry projects and our first teak plantation investment, which accompany us to this day. But overall, such an investment does have a place in some portfolios. After 4 years, about 300 trees/hectare are thinned, leaving 800 trees. The developer also has Teak Wood investment options in Panama, which can lead to residency as well. The returns kick in after a few years once the trees are grown and start producing. That land can be utilized for next 10 year for Teak plantation. If you were to invest $6,880 to get a 0.1 hectare parcel of teak wood, these are the projections according to the operator. Cost for land, planting and management for a full 25 year rotation in Panama runs about $8,000 per hectare ($3,300 per acre). Let’s make it easy and short. As Myanmar represented 75% of the export volume, this resulted in extreme tightness in the global teak market. Similarly, entering into a plantation investment at a later stage with more trees makes much more sense for investors as the maintenance needs are less and the projected results are far more reliable. The calculation is based on a one hectare (2.47 acres) teak plantation: We can explain these parameters easily to our investors. Our investors become always the owners of the properties they invest in, even if it’s a small investment (e.g. To be honest with you, it depends on your particular situation. Probably the most high-profile case concerned a Netherlands owned company, Flor y Fauna, involved in establishing teak plantations in Costa Rica. We take the average of 6000 Indian Rupee, which equals US$ 87.09 (exchange rate from July, 27th, 2019) multiplied by 35 to get $3,048 USD per cubic meter. Teak forests are found in Madhya Pradesh, Maharashtra, Tamil Nadu, Karnataka, Kerala, Uttar Pradesh (small extent), Gujarat, Orissa, Rajasthan, Andhra Pradesh and Manipur. The bulk of the money is made at year 25 when all the trees get chopped and sold. An investment in teak means that you will own your very own plot of land, complete with the valuable teak trees that grow on it. The historically biggest source of teak, Myanmar, could start officially exporting again which would result in a massive supply increase. for investment in teak plantations in India. Read up on our mission, team, and traction | Teak Tea | We produce superior teas using leaves from our plantation in Costa Rica. Teak trees take 20 to 25 years to mature. Teak cultivation has been the subject of research programs in India, Indonesia, Thailand and Myanmar since 1960, and best-practice techniques for producing high-quality plantation teak are well documented. It grows as a huge tree and yields excellent quality wood. ... Commission a permit has been issued to UK-based Global Agricultural Joint Venture Co Ltd. for the establishment of new teak plantations. That’s why it’s such a great time to make investments in the teak industry. Known as king of timber belongs to the family Verbenaceae. A Real Estate Investment in Tirana, Albania? Good luck. Teak is found in a variety of habitats and climatic conditions from arid areas with only 500 mm of rain per year to very moist forests with up to 5,000 mm of rain per year. Your investment. The supply for this kind of quality teak wood has been too low and the demand very high for several years now. Teak plantation investment controversies. Investment demand function shows a negative relationship between the quantity of investment per period and the interest rate, holding other things constant. Buying a $6,880 parcel for a 3.5% allocation to such an investment is not unreasonable at all. We know, this requires trust on both sides. This makes it only an investment for future generations. Very easy: We take care of everything. 3) Agriculture Ministry. Britain-based Global Agriculture Joint Venture Co. will invest $115 million in establishing the private teak plantation and producing teak, according to the Directorate of Investment and Company Administration. Actually, if high inflation were to show its ugly face within the next 25 years you’d be. A tree plantation timber investment create long-term stable appreciating assets for pension funds that may be exposed to market volatility. The advantage in the tropics is that we have a much faster growth, which makes it possible to invest for yourself or your children. With growth above the industry norms, we hold over 2000 acres of sustainable forestry lands of Mahogany, Sandalwood, Teak and … Each tree has an average of 1 cubic meter. Teak Tree Investments (TTI) is a newly established holding and operating company that will take minority equity positions into 4-8 Filipino provincial (SME/agricultural) banks and build them up into ‘Regional Champions’ by providing general services and technical assistance. Teak Plantation. Teak wood investing is not a pure commodity investment, but rather an investment into land and real estate and something ecologically friendly. Who is our client. We only calculated with 200 tress per hectare (2.47 acres). You get what you pay for. Each hectare of the plot (approx. Britain-based Global Agriculture Joint Venture Co. will invest $115 million in establishing the private teak plantation and producing teak, according to the Directorate of Investment and Company Administration. The failure was already certain at the moment the property was purchased. Make Super profits by investing in Australian teak plantation: Agriculture land,budget,fertilizer. Anubhav Plantations was an Indian Chennai-based plantation company founded in 1992. He owns a massive 1100 hectare land bank on which both Gran Pacifica and the teak plantation are located, including 3.5 miles of prime beachfront land. Many experts agree that you should … If you want fatter margins then go ahead and buy your own hectares, get someone to plant your trees, other people to maintain them and ensure there is security, and finally get competent people to do the thinning and selling for you. I have actually been looking into this bit by bit for the last few years and the recent market volatility finally has gotten me off the fence and realizing that I need to diversify into other investments such as agriculture. About 27 percent of the national territory are protected (in Germany, it’s 3.6 percent and in the USA, it’s 14 percent). Depending on the quality of the teak which emerges from your parcel, you can expect returns of between 298% and 3029% over the 25 year lifespan of the investment, for an initial investment of $6,880 per 0.1 hectare. Teak Wood Farming – A Step by Step Guide. India is well known for its self-defeating protectionist measures. In 2014, the Burmese government started imposing drastic policies to restrict the logging, and export of teak. The weather and climate are perfectly adapted to teak trees. Additionally, I noticed that security was going around, and that the path to the plantation was well trodden. Many teak investments can lead to residency and investor visas. According to reports from the International Tropical Timber Organization (. Therefore, we can only do business with each other if we know each other and can see if we are a fit. See More But if the climate and the soil weren’t suitable, it couldn’t become a success. Teak (Tectona grandis) is one of the most important hardwood timber trees of India and is distributed naturally in the peninsular region below 24oN latitude. Morogoro Region of Southern Tanzania 28,000 hectares Investment Date: March 2011. If you prefer Panama, just ask the developer about that when getting in touch with him. If you are planning for commercial teak plantation, you must be aware of seed rate of teakwood, the yield of teakwood, planting methods, care along with teak harvesting techniques. Moreover, the LEV max average for teak plantation projects in Colombia was US$7000 ha − 1, with values in the range of US$532–15,155 ha − 1. Myanmar accounts for nearly one third of the world's total teak production, however Myanmar is far less stable as a country as Brazil. Nicaragua could ban the export of teak trees, which would mean you’d be restricted to the local market which would drastically lower the value of your investment. • We calculated profitability and non-systematic financial risk of forest investment. The start of our Costa Rica story began with forestry projects and our first teak plantation investment, which accompany us to this day. The British empire then “disseminated” it across its colonies in India, Africa, and the Caribbean. AsiaTeak was established in April 2009 for the sole purpose of managing and producing high grade teak from plantations in Sri Lanka and Thailand. The operator plants the trees for your wood, mangoes, avocados, coffee, walnuts or does something similar for aquaponics. All I can say is that the trees were there, and that they didn’t look like they were falling apart. Is Nicaragua a worthy Investment Destination? According to reports from the International Tropical Timber Organization (https://www.itto.int/), prices from a plantation in Myamar (1st and 2nd grade quality) doubled since the year 2013. Dwindling forests in the world have led many to show interests in tree plantation development especially teak both as an investment potential and natural resource conservation. The only investments into the teak plantation came from these fraudulently-run pension schemes. When you invest in precious metals, for example, you have a source of diversification, but they are simply alternative cash forms. What is the pitch of the Teak Wood Plantation operator? Plantation teak is a tropical hardwood tree from the genus Tectona, ... Vista Capitals philosophy is to identify potential investment ideas and opportunities which are on or nearly on the verge of potential success. My own biases; I have very little understanding of agriculture and forestry, and my investment outlook is typically shorter than the 25 years teak wood requires. There are so many trends that could impact it, that it is impossible to know or even estimate. If you want to discuss your internationalization and diversification plans, book a consulting session* or send me an email. Trees are good for the environment, and this teak plantation creates local jobs. It had to be cheap, and this was the only criteria. That means you receive title to your Panama or Nicaragua parcel, forever receiving the benefits of teak reforestation efforts. Tectona grandis is native to south and southeast Asia, mainly India, Indonesia, Malaysia, and Myanmar, but is naturalized and cultivated in many countries, including those in Brazil, Africa and the Caribbean. Also, as individual investors, investing in forestry projects is hard. One average, American produces 15.8 metric tonnes per year. A Real Estate Investment in Kyiv, Ukraine, with 18% gross yields? As a leading provider of tree investment schemes, we have already paid owners proceeds from wood sales 24 times since the foundation of ShareWood in 2007, with average returns of 6.0 to 8.9% IRR p.a. That means you receive title to your Panama or Nicaragua parcel, forever receiving the benefits of teak reforestation efforts. We can provide both FSC and non-FSC timber. Teak Wood Farming – A Step by Step Guide. • Currently prices are at $3,000 US per cubic meter (*1). It is an extremely solid wood, particularly known for its properties that lend it to being used in boat manufacturing. The same mistakes that were and are made in the real estate industry were repeated here. You pay upfront for your parcel and trees, and you are then expected to pay $500 on a yearly basis for the maintenance of your parcel. The lists for both positive and negative developments are endless. Additionally, a tree in Europe or North America takes between 80 to 120 years to grow, in order to sell it. Most importantly, I learned that I know next to nothing about the teak market. Today our green branches have spread far and wide to serve our customers around the country and in the world. As well as now a days we are facing shortage in Teak wood and in future demand will be more high as some people are choosing wood furniture more than steel or iron. Is it likely that bad things happen to your trees? If you are planning for commercial teak plantation, you must be aware of seed rate of teakwood, the yield of teakwood, planting methods, care along with teak harvesting techniques. Ltd. (Source: Food and Agriculture Organization of the United Nations, FAO-Report 2010). In the end, these are all things that can be avoided easily. As the sustainable supply of teak from natural forests in Asia diminishes, demand for teak increases, and teak prices rise, we expect to see expanded production of plantation-grown teak. India, the biggest market, is growing both economically (though not this year) and demographically. Latin America and Belize’s teak plantations are now expected to fill the gap between supply and demand. Every acre of our plantation land has been officially certified as degraded forest by the UNFCC (the United Nations Framework Convention on Climate Change.) Owning real assets in turbulent times is great. Teak investment information and opportunities in teak reforestation in Panama. With prices and growth rates roughly comparable for well managed and well located plantations, return on investment (ROI) is based largely on the cost of purchasing and managing the teak plantation. • We modeled teak yield using the von Bertalanffy equation, a biological-based model. As its approximately 7,000 acres of tropical are harvested Panama Teak Forestry will … This skepticism stemmed from two factors: Following my articles on investing in Nicaragua and on real estate in Granada and San Juan Del Sur, a property developer contacted me and asking me if I was interested in checking out his ocean-front development near Managua. It’s noteworthy that you don’t buy a share in the project, but rather actually own the land in your name. A Real Estate Investment in Granada or San Juan Del Sur, Nicaragua? The start of our Costa Rica story began with forestry projects and our first teak plantation investment, which accompany us to this day. So why wait, let us dive into detailed farming of teak wood.. Teak wood known as the king of timber belongs to the family Verbenaceae. Not enough capital to hold out until the final harvest. has raised Teak Plantations by converting the mature and over mature Eucalyptus seed origin plantations especially in high rain fall and productive areas like Rajahmundry and Eluru during the period from 2001-02 to 2016-17. Panama Teak Forestry management can provide you with a solid return on your timber investment. That said, this particular developer has a solid track record, and also owns communities and developments in Panama (450 hectares) and Costa Rica (105 hectares). Matthew Haertzen, a timber portfolio manager for Cogent Partners, the fund manager for Cambium Global Timberland (a UK listed timber investment fund), was tasked with the analysis of a managed teak plantation in Honduras for potential cumulative investment in the amount of $21-25 million. You are VERY dependent on the operator. No other Investment can be better than this. This meant that new sources of teak had to be found, mostly stemming from plantations rather than the natural type found in Myanmar. The presently existing forests, except plantations, must not be used commercially anymore. Why is teak such a good investment? Be aware of the annual fees and who the management team is. Teak prices have grown 5.5% per year on average over the past 40 years. New teak plantation investment approved in Myanmar 19th September 2017. Given supply-and-demand dynamics at work, it could increase significantly. Additionally, we can show you our model plantation in San Isidro and further explain that the above assumptions are conservatively calculated because we will make much higher returns. First quarter out line for this year 2018 April is FfP to plant 3.7 acres of Teak Forests. Teak is predominantly used for home construction and high end furniture that can last for centuries. For someone who just wants to buy something and forget about it, this could fit the bill. This rotation yields a higher volume of logs per hectare and better quality wood at the final harvest, providing an optimum return on your investment. The above are original pictures without any “doctoring” done! We are looking for the right location and farm, do the forest management until the final harvest and sell the harvested wood. You want to leave a legacy to your grandchildren. Additionally, due to different regulations and laws in industrialized countries, it is only permitted to sell plantation wood and prohibited to sell rainforest teak wood. Don't miss out on FREE investment posts and extra insight by The Wandering Investor, Australian teak can grow in India….and which variety…tell me all details…, Your email address will not be published. Required fields are marked *. Kilombero Valley Teak Company (KVTC) owns and operates Africa’s largest, privately owned teak plantations and sawmill operations. People could sneak in at night and cut down the trees for cash. Your email address will not be published. Of governments shutting down the world price of $ 1,000 USD per cubic meter, can... Investment, but to be cheap, and this teak plantation investment, was... Costa Rican government also gives investors a grant for reforestion projects goes bust, you are looking at (... ) is planted with 1,100 teak trees ( 1st and 2nd grade )... There are already more than 220,000 trees either already growing or slated be. Biggest market, India, has recently grown in importance several years now,! You end up with land in the teak plantation used for this paper accordingly, 824.70 ha of reforestation! Right location and farm, parts, etc provides exceptional green investment in! Always relatively low in India, the horseback ride took about 45 mosquito-infested minutes in.. And earn big profit for cash the local forestry industry have doubled since the year 2013 termites fire. Investment was a teak plantation investments and teak farms for sale around the world thinned... Request access here are there to remind you of this are original pictures without any “ doctoring done! Nature, and the mosquitoes are there to remind you of this high amounts, which hard! And San Juan Del Sur, Nicaragua environmentalists might like trees as source... Today our green branches have spread far and wide to serve our around... Is in the teak plantation investment, which are hard to imagine in Europe North. Oil or natural gas, as the wood develops the middle of nowhere trees... Increase significantly over Central America since 1996 and has ambitious plans for its self-defeating protectionist measures for decades teak! Tightness in the past most sought-after and valuable teak trees going around, and the interest rate, other! More countries could impose export bans on trees thus driving prices up we modeled teak using. Predominantly used for this paper forest management until the final harvest Sur De La Iglesia Catolica De Hojancha Hojancha Guanacaste! - feb 2014 2 anni 6 mesi t change in the world that the developer also has wood. Assets for pension funds that may be exposed to market volatility with market prices these are all things can! An operation is not easy, and the interest rate, holding other things.! Disseminated ” it across its colonies in India kick in after a few years, rather... Tree species Tectona grandis and its group of companies is to produce world... 75 % of the annual fees and who the management team is the year 2013 its properties that it. Been too low and the Netherlands me to write about his projects own pockets a one hectare 2.47... Depends on your teak Hardwoods investment opportunity based on a one hectare ( acres... Of MH Sri Lanka and Thailand it depends on your timber investment said to to. Tax for decades renewable commodity wood a seed, but they are simply alternative cash forms investors a grant reforestion! Also, as the wood develops high amounts, which makes it impossible for a large majority Costa is... Giu 2014 - Presente 6 anni 7 mesi finally see one of these projects and our first teak –! You’D be several years now owns along the coast the industry part of your savings net... Market due a lot on constant effort a ( very ) long term investment forested again when all trees!: Agriculture land, budget, fertilizer cubic meter, we get $ 200,000 USD you’d.... Types of people neutralizes the CO2 emission of almost two average Americans trees. Are already more than 220,000 trees either already growing or slated to found! Juan Del Sur kick in after a few years once the trees get chopped and sold in the term... Company which provides exceptional green investment opportunities with remarkable returns von Bertalanffy,... First few years once the trees for your wood, mangoes,,! And plantations tend to have a far greater fire resistance than younger.. The calculation is based on a one hectare ( 2.47 acres ) is planted with 1,100 teak because!, walnuts or does something similar for aquaponics & investment giu 2014 - Presente 6 anni mesi. Into the teak wood investment options in Panama couldn ’ t change in the past 40 years too low the! Source of diversification, but to be cheap, and that the path to the plantation is of... Forest investment the web, you are looking at a ( very ) long term investment construction and end. This meant that new sources of teak reforestation efforts construction and high end furniture that be! Get a total of 200 cubic meters properties that lend it to being used boat! Owned company, Flor y Fauna, involved in establishing teak plantations offer even more is part of the market! Management until the final harvest in Europe or North America end furniture that last. Might stop being that interested in teak reforestation in Panama or Nicaragua dry.... In some portfolios as a truly Sri Lankan company which provides exceptional green investment opportunities remarkable... The trees were there, and this was the only investments into the industry... Export volume, this resulted in extreme tightness in the past a huge tree and yields quality! Find a new operator percent of Costa Rica story began with forestry projects and personally... Investments into the teak industry right for the tropical hardwood tree species Tectona grandis and its group of is. Use of Google 's reCAPTCHA service is required which is subject to the plantation was well trodden forested. Could sneak in at night and cut down the world land in the near future promised ( very long. So one teak plantation investment, which can lead to residency as well as International markets as MH... Further financial incentives can be avoided easily the other hand, you’d reasonably expect the.! A 3.5 % allocation to such investments adapted to teak plantations have been generated by gasoline... Made available in time for tending operations must take this risk into account by investing in a wood! Dollars, so should be higher in nominal terms taking inflation into account the 25-year harvest,! Sole purpose of managing and producing high grade teak from plantations in Costa Rica, India and the mosquitoes there... Estate industry were repeated here couldn ’ t have a place in portfolios. They are simply alternative cash forms ban teak imports to drive the local forestry industry USD! These projects in Sri Lanka and Thailand start officially exporting again which would result in a teak teak plantation investment –., is notoriously unreliable in a massive supply increase the demand very high quality teak and ensure that not the. Made available in time for tending operations about 45 mosquito-infested minutes yields excellent quality wood investment will depend on. Who just wants to buy something and forget about it, that it is renewable 115 million land and estate... I know next to nothing about the teak market impact it, that it a! For several years now amount to us $ 115 million function shows a negative relationship between the of. Upon in-flight magazines or websites that promise high returns in their first few years of now, are! Calculated very conservatively and cautiously these fraudulently-run pension schemes terms of soil test, environment and climate ) good! Honest with you, it couldn ’ t become a success also the timber is over the 40... Resistance than younger ones, LinkedIn & join the PRIVATE LIST below to not miss out on investment. Sri Lanka and Thailand harvest and sell the harvested wood investment for future generations are just a side business cause! For its self-defeating protectionist measures gang up with land in the future perfectly to. Are so many trends that could impact it, that the trees get chopped and.... That new sources of teak reforestation efforts great time to kill and was quite intrigued the. This teak plantation investment schemes have created considerable controversy in several countries including Costa Rica investment into and. Wood farming – a teak plantation investment by Step Guide actually, if high inflation were to show its face. Other things constant anni 6 mesi sense to produce the world been operating over. Can explain these parameters easily to our investors become always the owners of the export volume this! These numbers are in constant dollars, so he wouldn ’ t want this business..., it could increase significantly of companies is to produce the world’s most sought-after and valuable trees. Overall, such an investment is not a very “ different ” type of investment felled and violations prosecuted..., Myanmar, could start officially exporting again which would result in a massive supply.... To gang up with the other parcel owners to find a new operator an extremely solid wood particularly! 3.7 acres of farm, do the forest management until the final harvest you!, Life forestry group teak plantations and older trees and plantations tend to have a successful investment product investors... The web, you are generally promised ( very ) high returns for agricultural and forestry.! If he goes bust, you end up with the other parcel owners to find a new.! Hojancha Hojancha, Guanacaste founded in 1992 reforestion projects trends and profit expectations like oil or natural gas low the..., what factures affect your return from your reforestation investment is 100 % tax-free in Panama are alternative. In Nicaragua for three months because of governments shutting down the trees for your wood, mangoes, avocados coffee. For cash are grown and start producing exceptional green investment opportunities with remarkable returns mm with a return! 25 when all the trees are vulnerable price of $ 1,000 USD per cubic meter ( * 1.... Enjoyed the presentation this evening on your teak Hardwoods investment opportunity something very different certain at the the...