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Teak: A Dwindling Natural Resource

Teak: A Dwindling Natural Resource
August 23, 2015 [email protected]

In simple terms, Teak is a commodity that is being harvested at a rate 8-12 times the rate of replanting. The market for Teak is largely in Asia, the Scandinavian countries and in the boat building business. Teak prices have risen dramatically over the last 20 years, and as the harvest continues to exceed the supply, we can expect the price of Teak to continue on an upward trend.

Panama was chosen for the Hardwoods plantation specifically because it provides optimal growing conditions and political security. The Panama Canal is a vital strategic US interest and the US proved that when it invaded Panama to remove General Noriega. From a climate perspective, the Pacific coast of Panama is ideal in that it has an 8 month rainy season and a 4 month dry season, which is precisely what teak wood requires to achieve maximum quality. Three hundred years of historical records show no sustained droughts for the region of reforestation. Resistance to fire is a natural element of the Teak’s adaptation to its environment. The Teak tree is largely resistant to fire because it sheds its leaves in the dry season as a water loss prevention mechanism and effectively blocks the growth of underbrush by eliminating light to the forest floor.

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