Morogoro Region of Southern Tanzania 28,000 hectares Investment Date: March 2011. It grows as a huge tree and yields excellent quality wood. Teak Wood Farming – A Step by Step Guide. Oh, yes, one more thing: All your return from your reforestation investment is 100% tax-free in Panama. 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. However, Life Forestry Group teak plantations offer even more. Since we are offered already existing teak plantations on a regular basis (such was the case of the plantation in San Isidro),  it is possible to make investments that don’t take 20 to 25 years until the final harvest, but only 5 to 10 years. International teak plantation investments and teak farms for sale around the world. 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. Be aware of the annual fees and who the management team is. The bulk of the money is made at year 25 when all the trees get chopped and sold. Teak is historically native to South East Asia. Good luck. ), prices from a plantation in Myamar (1st and 2nd grade quality) doubled since the year 2013. 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. It’s noteworthy that you don’t buy a share in the project, but rather actually own the land in your name. Probably the most high-profile case concerned a Netherlandsowned company, Flor y Fauna, involved in establishing teak plantations in Costa Rica. Teak forests are found in Madhya Pradesh, Maharashtra, Tamil Nadu, Karnataka, Kerala, Uttar Pradesh (small extent), Gujarat, Orissa, Rajasthan, Andhra Pradesh and Manipur. • We calculated profitability and non-systematic financial risk of forest investment. 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. The originators didn’t have a successful investment product for investors in mind. Price have increased independently from crisis for decades. The next large advantage of teak is, that it needs only 20 to 25 years until the trees are valuable and ready to sell. Fires are a massive risk to teak plantations and older trees and plantations tend to have a far greater fire resistance than younger ones. The teak wood plantations are just a side business, so he wouldn’t want this side business to cause him reputational damage. That land can be utilized for next 10 year for Teak plantation. • Very easy: We take care of everything. 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. The historically biggest source of teak, Myanmar, could start officially exporting again which would result in a massive supply increase. Global Sales Director Società Italiana Elicotteri set 2011 - feb 2014 2 anni 6 mesi. The only investments into the teak plantation came from these fraudulently-run pension schemes. Every acre of our plantation land has been officially certified as degraded forest by the UNFCC (the United Nations Framework Convention on Climate Change.) It is an extremely solid wood, particularly known for its properties that lend it to being used in boat manufacturing. Additionally, I noticed that security was going around, and that the path to the plantation was well trodden. 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. This meant that new sources of teak had to be found, mostly stemming from plantations rather than the natural type found in Myanmar. Let’s make it easy and short. These numbers are in constant dollars, so should be higher in nominal terms taking inflation into account. 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. With growth above the industry norms, we hold over 2000 acres of sustainable forestry lands of Mahogany, Sandalwood, Teak and … 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. Teak farming requires proper research (in terms of soil test, environment and climate) and good maintenance for 10–12 years. Investment demand function shows a negative relationship between the quantity of investment per period and the interest rate, holding other things constant. 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. 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. 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). Teak trees take 20 to 25 years to mature. The weather and climate are perfectly adapted to teak trees. Teak is a worldwide commodity like oil or natural gas. All I can say is that the trees were there, and that they didn’t look like they were falling apart. We can have a fairly good appreciation of what the teak market is like currently, or next year, but in 25 years from now? 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. Once we reached the plantation, I saw…trees. 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. Sirivana Teak Plantation project offers 1 Acre and in multiples too. That’s why it’s such a great time to make investments in the teak industry. We know many of these projects and companies personally and can therefore shed some light on it. Organizing such an operation is not easy, and takes a lot on constant effort. 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. Forestry Projects And Our First Teak Plantation INvestment. We are looking to investment partners for another 5.5 Acre of land in the Southern Dry zone of Sri Lanka.You are welcome to visit us at Forests for People Tanamalwila any time or Do you have any International Tax questions? That’s why it’s such a great time to make investments in the teak industry. Many experts agree that you should invest part of your savings or net worth in forest. 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. After 80 percent of the rainforests were cleared not only in Costa Rica but also in other parts of Central America for cattle ranches, banana and pineapple plantations during the 80s, intensive protection laws were established. Teak prices have grown 5.5% per year on average over the past 40 years. 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. It is a very “different” type of investment. This particular developer and operator has been operating all over Central America since 1996 and has ambitious plans for its community at Gran Pacifica. 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. We only calculated with 200 tress per hectare (2.47 acres). So, start planting Teak wood at your vacant land and earn big profit. 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. “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. The facts of teak plantations. 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. 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. The advantage in the tropics is that we have a much faster growth, which makes it possible to invest for yourself or your children. I had happily been in Nicaragua for three months because of governments shutting down the world. The failure was already certain at the moment the property was purchased. 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. The only aim was to line their own pockets. They promote bio-diversity, contribute to the Latin America and Belize’s teak plantations are now expected to fill the gap between supply and demand. The collective goal of AsiaTeak and its group of companies is to produce the world’s most sought-after and valuable teak trees. Teak is the common name for the tropical hardwood tree species Tectona grandis and its wood products. 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. The British empire then “disseminated” it across its colonies in India, Africa, and the Caribbean. After the harvest, plantations can be reforested again. PROFITABILITY OF TEAK PLANTATIONS IN THE DORMAA DISTRICT OF THE BRONG AHAFO REGION OF GHANA Read up on our mission, team, and traction | Teak Tea | We produce superior teas using leaves from our plantation in Costa Rica. But if the climate and the soil weren’t suitable, it couldn’t become a success. Because of the current discussion about climate change, further financial incentives can be considered and are likely in the near future. 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. What is the pitch of the Teak Wood Plantation operator? 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. For further information please sign in or request access here. This corroborates a-15-year rotation teak plantation used for this paper. Teak Plantation. Don’t overexpose yourself and manage your expectations. Acknowledgments. 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. We know, this requires trust on both sides. Follow me on Facebook, LinkedIn & join the PRIVATE LIST below to not miss out on future investment posts. Is it likely that bad things happen to your trees? 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. Indians might stop being that interested in teak, or the Indian government could ban teak imports to drive the local forestry industry. 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. Myanmar accounts for nearly one third of the world's total teak production, however Myanmar is far less stable as a country as Brazil. Why is teak such a good investment? The Costa Rican government also gives investors a grant for reforestion projects. We are looking for the right location and farm, do the forest management until the final harvest and sell the harvested wood. Anyone can plant a seed, but the real value in the timber is over the 25-year harvest cycle, as the wood develops. Teak wood investing is not a pure commodity investment, but rather an investment into land and real estate and something ecologically friendly. Of these, 142,082 are teak. There are so many trends that could impact it, that it is impossible to know or even estimate. Environmentalists might not like teak trees because transporting them far away requires CO2-heavy transport and chopping trees is generally not cool. The wrong or insufficient forest management. Given supply-and-demand dynamics at work, it could increase significantly. We can provide both FSC and non-FSC timber. The returns kick in after a few years once the trees are grown and start producing. Teak’s core qualities are that it is resistant to termites, fire, rot and fungus. Additionally, data from the biggest market, India, is notoriously unreliable. I accepted, with the condition that I would write whatever I want to. Additionally, a tree in Europe or North America takes between 80 to 120 years to grow, in order to sell it. The lists for both positive and negative developments are endless. You can find the developer brochure and a lot of information on investing in teak wood, and on the residency programme by clicking here. Buy trees in Brazil and we’ll look after them for you. So we get a total of 200 cubic meters. 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.. This document shows, that the prices have doubled since 2013!! 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