Teak Tree Plantation
We offer structured teak plantation partnership opportunities where the investor partners with Tree Plantation and becomes a co-owner of the project.
Teak is a tropical tree indigenous to South East Asia. Today, most Teak comes from managed plantations in Indonesia, India, Myanmar, Philippines, and Malaysia. Indonesia's teak tree is considered of the highest quality in the world due to its texture, color and hardness. A Teak tree is actually classified as a tropical birch. It drops its leaves in the dry season like a temperate birch would in the fall. A Teak tree grows relatively quickly in native tropical rain forests reaching a maximum height of 150 feet in just 50 years.
Teak wood is valued for strength and its resin, which is water resistant. This water resistant quality makes teak invaluable for wood boat manufacture. It is used primarily for decking, trim and railings. Teak tree resin also protects the tree from insects.
Similar to Black Locust in North America, Teak has been used for fence posts, railway ties and building foundations because of its water repellent qualities and resistance to rot. Tree experts refer to Teak as the perfect wood because it combines the strength of oak and the water repellent properties of western red cedar with the rot resistance of black locust trees. Teak wood is revered as a stable woodworking product, easy to turn and shape into furniture and ornamental design.
Teak Trees – rare and expensive
Not surprisingly, the teak tree is now considered a rare tree, particularly teak trees that are of any size. Old growth teak trees only exists in preserves and parks. In Indonesia, teak trees are predominantly grown in government managed teak plantations by one government owned company, the Perum Perhutani. Indonesia is the world’s largest supplier of teak. Teak plantation trees are harvested in 10 to 20 year cycles and some teak plantations feature a new “fast growing teak hybrid” called Jati Genjah.
Increasing demand for teak has prompted foresters to explore other geographic locations for teak plantations. Only a few have proved suitable including Equatorial Africa and Costa Rica. Teak is propagated mainly from seeds. Germination of the seeds involves pretreatment to overcome dormancy. Pretreatment involves alternate wetting and drying of the seed. The seeds are soaked in water for 12 hours and then spread to dry in the sun for 12 hours. This is repeated for 10–14 days and then the seeds are sown in shallow germination beds of coarse peat covered by sand. The seeds then germinate after 15 to 30 days.
Growing Teak – investment programs and incentives
Currently there are two international teak growing programs available to international citizens. The first program is offered in Panama. A fee of $50K entitles the investor to residency and tax-free income from sales. Tax benefits are extended to other countries including the United States and Canada offering reductions in taxable income to 90 percent. The second program is offered by Costa Rica, An investment of $100k qualifies an international investor for legal permanent residence status in Costa Rica. This gives the investor all the rights of a Costa Rican citizen, except the right to vote in national elections. By Costa Rican law the owner is exempt of all taxes on property. In addition the income produced by the sale of the wood from the plantation is also free of all taxation.
The following comments where collected from a national wood products discussion forum using Teak in the United States.
Comment from contributor A:
I have been used to working with local hardwoods like oak and walnut but thought I would try my luck with teak. Holy crap is this stuff expensive. My local supplier didn’t have it in stock and ordered it in from a tropical wood broker out of Florida. I was used to paying between $2 and $3 per BF for oak and walnut but $22 – wow! Beautiful stuff though, once I got the right tooling knives, it turned nicely and polished up great. Worth every penny once I finished up my project. Won’t hesitate to use it again.
Comment from contributor B:
As beautiful as teak is it is hard to drill and glue. Once it’s down its fantastic. I found using concrete drill bits great for drilling holes in dry teak boards. A good diamond tip or carbide might work good too. The drilling was needed for setting brass screws to my ribbed decking. The original teak decking was probably 60 years old, not worth salvaging but it seemed to burn forever in the fireplace over the winter. My wife commented that it lasted longer than apple wood from our orchard. Good heat too. Of course I wouldn’t suggest burning teak under normal circumstances – it’s too damn expensive.
Comment from contributor C:
I was fortunate to travel to Indonesia as a missionary back in the sixties – that was when there where still old teak forests scattered across the country. Some of these trees where massive. I remember one tree in particular that had to be 200 feet tall and 20 feet across at the bottom. It reminded me of the trees in Redwood National Forest in California. Sadly, I would think that tree and most of the other older ones have been cut down. When I left in 1969, there was talk of the government stepping in to control the logging and start replanting programs. I wonder how all that turned out?
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Teak Plantation Partnership Opportunities
There are structured teak plantation partnership opportunities available for 25K, where the investor partners with Tree Plantation and becomes a co-owner of the project.
Teak Tree Plantations
There are three ways to participate in teak tree plantations; you can invest directly in our teak tree plantation project in Costa Rica, hire us as a consultant to start your own teak tree plantation or contract us to build you a teak tree plantation.