Get contact details & address of companies manufacturing and supplying Teak Wood, Teak Timber, Teak … However, any piece of wood containing 144 cubic inches is a board foot (e.g., 3\" x 4\" x 12\"; 2\" x 6\" x 12\"; etc.). The ITTO Tropical Forest August 12, 2010 report listed the value of teak logs imported into China between $1,200 - $1,500 per cu meter of logs. Growth rates on average over a plantation run from 10 cubic meters to 20 cubic meters per year with an overall average of 12 to 14 cubic meters per year. by Jeff Duda President of Panama Teak forestry. Located in the Kota Marudu district 5 km from Kota Marudu. These investment opportunities typically sell from $20,000 to $50,000 per hectare, which means the ´promoter´ is charging $12,000 to $38,000 per hectare over and above the realistic cost of the teak. By pruning away all except the top 1/3 of the leaves, you create superior wood. Hire us to build a turnkey Crop Circle Tree Plantationon your land anywhere in the world. 2,800 to 3,100 … Minimum rotation for teak is 20 to 25 years. The most recent price survey among the Costa Rican members of OLAT (the Latin American Teak Organization) indicates prices between $120 and $595 per cubic meter for standing teak trees, depending upon diameter, but prices appear to have decreased since February of this year. To put it another way, determine how much of your investment is actually going into the company´s products and assets. If the company also owns cattle, take the total number of cattle and multiply by the local value per head. An abandoned orchard of fruitwood was sold for $300,000 Euros in France last year. Processing the logs into lumber will significantly increase the return. Another disadvantage of investing in small parcels of teak relates to the economies of scale. In summary, timber is one of the safest and highest yield long-term investment classes available, and teak is one of the best timber investments available. The teak resident visa packages normally cost about $20,000 to $40,000 per hectare. There are opportunities that allow investors to buy managed parcels of teak by the hectare within a larger plantation. The most valuable trees are those that grow straight and tall with no limbs in the trunk area. Rs. The price of Teak Wood in Malaysia is US$1,100 per cubic meters. If the calculated ROI (without appreciation and inflation) is 12% and if it is projected that teak prices increase at 7% per year over the next 25 years on average, then the inflation adjusted return will be 19%. This is a hefty premium to pay for getting into an investment and will significantly reduce the investors ROI. This gives a simple cost per hectare of planted and managed teak. The same 1-meter flat is leaning up against a teak tree that was planted from it just a few months before. Teak produces between 12 to 26 cubic meters in volume of wood per year. Teak trees shed their leaves in … When the company processes its own wood, the returns per cubic meter of wood produced will be much greater than what could be obtained from selling raw logs. Keep in mind that it does not take into account the added value of owning a share of the whole company rather than simply the core plantings. A mill can actually double the return from the timber holdings of the company over time. So, if a tree was 22.7m tall and 42.6cm in DBH, the total tree volume would be: Tree volume (m3) = (42.6/200)2 x 3.142 x 22.7 / 3 = 1.08 m3 As the diameter is actually measured at 1.3 metres above the ground, not at the base, most trees carry a bit more volume than the cone-form would suggest. Teak tree leaves are reddish green and rough to the touch. If the company cannot provide the information and data you need to evaluate the investment, keep looking. Use $500 per cubic meter for the price of mature raw teak logs today. Look for a company with a full disclosure policy, so that you can determine where your funds are going. Teak is usually planted when the seedlings or clones are four to six weeks old. Tree volume measurements serve a variety of purposes, some economic, some scientific, and some for sporting competitions. And from 30,000 euro, you can be the owner of 1,100 teak trees planted on a whole hectare (10,000 square meters). When a stand of trees is 25 years old, forestry managers may choose to: Do a complete harvest and sell the logs; Thin the stand to about 150 trees/hectares and allow those trees to … Btm 3ft To 8ft Indian Teak Wood For Doors, Features: Best Quality,... ₹ 3,000/Cubic Feet Get Quote 6-8 Ft Rectangular Indian Teak Wood, Thickness: 50-100 Mm ₹ 2,000/ Cubic Feet 1 cu meter = 35.3 cu ft * 1,000 Board feet = 2.4 cu meter * 1 RS = 2 US cents Prices for Myanmar teak are shown below per cu feet: Teak Export Grade F.E.Q. Learn More About Crop Circle Trees Contact Us For Pricing The price of mature … A mill is much more difficult to value because rough cut, kiln dried lumber is worth much more than what raw logs sell for. This is one calculation that can be used to compare a share-based investment with other investment opportunities, but it does not take into account the value of owning a part of a whole company. A single teak tree, costing £10 to plant to-day, will be worth over £500 of to-day's pounds in twenty years time. Teak grows amazingly fast, particularly for a hardwood. In this scenario, the investor will own a multi-aged stand of timber. Calculate how many shares this represents and then back that out of the total outstanding shares, before calculating the cost per hectare of the teak assets. As the timber is further processed by a company, the fewer middle men are involved and the greater the overall return on investment will be. Here are some gross production figures per acre in Belize based on a 25 year crop rotation with an expectation of 200 cu meters of teak per acre. No matter how many trees you purchase, we will take care of your trees from planting till the final harvest for you. The board-foot content of any board may be determined by m… Hi Reji. Ask for the bylaws of the company and become educated about what is actually being offered. Coast Rica´s costs are about the same as or a little higher than Panama´s. The picture shows one of our managers instructing the workers on how to plant the trees. Each tree has an average of 1 cubic meter. It even prevents any metal used in it from rusting. Appreciation and inflation can then be added back in. We really knew that we had done a good thing and that our dreams were going to be realized. The investor would have to be able to buy a hectare of four year old teak for $10,215 (half price) elsewhere to get the same ROI. But this is the reality of teak raw log prices today. For example, if a plantation has 500 total hectares planted in teak with 66 hectares of 11 year old teak, 34 hectares of 7 year old teak a, 200 hectares of 3 year old teak and 200 hectares of 2 year old teak, this plantation would have an averages age of approximately 4 years. The price of mature raw logs today is about $500 per cubic meter. The average sale price of mature teak in 2009 is about $500 US dollars per cubic meter for raw logs; rough cut lumber will wholesale at around $1,200 to $1,800 per cubic meter. Teak produces between 12 to 26 cubic meters in volume of wood per year. Teak is a large deciduous tree up to 40 m (131 ft) tall with grey to greyish-brown branches, known for its high quality wood. Clearly, you do get a teak investment with the resident visa, but there are many extra expenses for companies involved in such programs. Find here Teak Wood, Teak Timber manufacturers, suppliers & exporters in India. Teak requires very good drainage and rich soil. 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. There are many monoculture plantations of teak in Costa Rica. An investor´s ROI is greatly affected by the initial cost of the investment and by the investment structure. Teak does not tend to grow tall and straight. When healthy teak trees are 25 years old and have reached commercial size, they contain about 1 cubic meter of heartwood. When comparing investment opportunities, start the comparison without these factors included in the calculations. (The teak has the reddish leaves.). View Complete Details. The Chinese have selected the largest trees and are only cutting the core out of the trunk, so as to be able to fit in the maximum amount of wood per container. It is a small niche segment of the timber industry and is managed by smaller, privately owned companies rather than by big institutional operators. Teak is very stable, which means that it does not warp when subjected to variations in humidity and temperature. if the wood is sized we can calculate width x lengthxthickness, if it is timber how to calculate the quantity of wood is 1/4of the girth square xlength. Tree volume is one of many parameters that are measured to document the size of individual trees. If more than 10% of the investor´s funds are going into marketing, you may want to move on. In this case, the investor owns a portion of the company, has voting rights, and receives income from all income streams the company has or may develop in the future. Base the calculations on today´s prices. In these cases you are really buying a resident visa and not investing only in teak. Evaluating each timber investment opportunity with the same projections will give you a true indication of which is the best investment for you. For example, the company may have 15 hectares of 14 year old Cedro Espino, which would have a value of about $450,000. volume of the tree('s) in cubic metres; conversion of result one to cubic feet; conversion of result one to board feet ( based on one cubic metre = 423.776 mbf) Finca Leola and FLSA are exclusive trademarks of Finca Leola S.A. All materials and content copyrighted 2003-2012. At $20,000 per hectare, the investor has to wait for an increase in value of more than 100% to be at the breakeven point; at $40,000 per hectare a 400% increase in value is required to break even. THE government has collected 1.9bn/- from selling 3,262 cubic meters of standing teak trees from two auctions last week in Morogoro and Tanga regions in an effort to raise government income. Recall that specific gravity is density in grams per cubic centimeter (g/cm 3); since the denominator of the specific density is one cubic centimeter, and assuming we want to calculate the weight of a cubic meter, we simply have to multiply 0.59 * 1000 to get 590 kilograms as the m dry for Equation 2. Calculating the above mentioned lower price of $1,200 … You can plant the trees yourself or hire us to do the planting. The first auction for the highly valued timber species was conducted at Mtibwa forest farm located in Kilosa district Morogoro region, whereby … Simply start with a seed or root sprout, grow it to a sapling, transplant it, and nurture it. It is critically important with these investment schemes to evaluate exactly what you are paying for and what you actually get. If the investment costs more than $8,000 to $10,000 per hectare for newly planted trees, the amount over this base cost may be going in other directions and the return on investment will be proportionally less for the investor. How much does an investment in teak cost? I am not sure what you are asking. Another method of investment available is to invest by the tree. On top of this, some companies add management fees after 5 to 10 years, further reducing any potential return on one´s investment. These are NOT teak investments: these are teak resident visa packages. But again, this is calculated very conservatively and cautiously. Teak is not native to Costa Rica but grows very well there. Companies that claim to be able to grow trees faster than anyone has ever grown a teak tree over the past 1,000 years are likely to disappoint investors over time. cubic meter. (Over the last five years, teak prices have been increasing at about 7% per year.) How you invest and with which company can have a significant effect on your returns. With that you will get 110 teak trees planted on a 1,000 square meters land, i.e. This translates to 200 to 260 cubic meters of heartwood per hectare, depending on the number of trees. As mentioned previously, the cost per hectare for a well-managed teak plantation over a 25 year cycle, including land and management, is about $8,000. Calculate the area of the tree at breast height by dividing the diameter at breast height by two, squaring that number, and then multiplying the result by 3.1415. There are different ideas concerning what teak will be worth in 25 years, as well as many different predictions of how much teak will be available and what condition it will be in over time. Example of Equivalence: 5 HOPPUS A measurement system developed in Britain and widely used in India to measure Teak logs and to quantify loaded volumes of logs in containers. Therefore, 1,100 trees are typically planted per hectare initially, but the stand is periodically thinned for quality and to maximize growth rates, resulting in only 260 or fewer trees per hectare by harvest time. Reachable by sealed road leading to Kg. It does not cost anything but your time to grow any tree. Panama Teak Forestry is such a company. Because teak grows so fast, the plantation needs a lot of attention for the first three years. You can use our volume calculator to find the volume of wood if you like. It was amazing to us when we returned to the plantation after four months. you can expect 10 to 15 cubic feet wood from one teak tree. A Final harvest yield of 200 to 220 cubic meters per hectare after 25 years on average is a good conservative estimate. Calculator - Timber - Volume - Weight - Wood units converter - Wood calculators All rights are reserved worldwide. Another measure is to look at how much new land is purchased, planted, and managed for each incremental investment in the company. The price for teak has been going up steadily for many years, at a rate consistently over 6% per year. So we get a total of 200 cubic meters. After about three years, the trees are large enough to shade out competing vegetation. The furniture we are making from it is gorgeous. 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). Level 35 Woodcutting is required to chop down this tree, and it yields 85 experience per teak log cut.. Teaks may be cut and banked for a small amount of cash. The land costs about $3,000 per hectare, while the cost of planting and management runs about $5,000 to $6,000 per hectare, as teak is very management intensive, especially to produce the highest quality wood. Is one hectare being added to the company´s overall portfolio of planted teak for every $8,000 of new investment? On our plantation, because of the richness of the soil, we are planting in a grid of 3.5 x 3.5 meters. Extensive research has indicated that using a growth rate of 10 to 12 cubic meters per year is a safe, conservative projection. In addition, overhead and management costs can erode returns and the investors will never gain the returns possible from setting up a mill and processing the wood; therefore, this method of investment is not ideal.

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