CONSERVATIVE PROJECTED YIELD’S AND VALUES 

TECTONIA GRANDIS PLANTATION TEAK

Central and South America

 

Tree Age in Years

Numbers of Trees per Hectare

Number of Trees Harvested per Hectare

Volume in Cubic Meters (M3)

Commercial Board Feet per Tree

Volume in Board Feet

Domestic Value at current Price per Hectare

International Value at Current Price per Hectare

 

Value with 5% Annual Increase of Current Domestic Price per Hectare

Value with 5% Annual Increase of International Current Price per Hectare for export grade lumber
           

 

 US$2.50/bf*

    

2

1,111

147

------

-------

------

$367.50

(@ $2.50/post

------

$404.25

(@ $2.75/post

-------

4 to 5

   963

385

  67.64

74.5

28,682

$1,925

@ $5.00/post

--------

$2406.25

@ $6.25/post

----------

12

  578

202

111.05

233

47,086

32,960 bd.ft
@$1.00
$32,960
lumber

14,125 bd.ft
@$2.50
$35,314

32,960 bd.ft
@$1.79
$58,998
14,125 bd.ft
@ $4.49
$63,421.

16

  376

150

  112.50

318.00

47,700

23,850bd.ft
@$1.00
$23,850.00

23,850 bd.ft
@$2.50
$59,625

23,850 bd.ft.
@$2.18
$51,993

23,850bd.ft.
@ $5.45
 $129,982

20

  226

226

223.28

418.90

94,671

37,869 bd.ft
@$1.00
$37,868.40

37,869 bd.ft
@$2.50
$94,672

23,850 bd.ft.
@$2.65
$63,202

56,802 bd.ft
@ $6.63 $376,601

TOTALS 

         

$94,678
with no change in market price

$189,611
with no change in market price
total yield at a 5% Annual Increase $174,193
total yield at a 5% Annual Increase $570,000     

20 year projected gross income with a 5% Annual Increase in price if planted today:
US$744,193 Per Hectare

Notes:

(1) Trees in the first 2 years of the plantation are culled to eliminate inferior trees, and are useful and marketable as posts in the local market. Trees thinned in years 4 to 5 are also projected as having value as posts. In today’s market, only high quality, mature teak is bought in international markets.

(2) Current FAS price of $2.50/board foot FOB ship. * This price is reflective of exportable clear lumber only.

(3) An increase of 5% per annum in teak prices is consistent with previous years. This is conservative considering projected future shortages of wild growing timber.

(4) One Hectare equals 2.47 Acres

These are strictly projections based on current market situations and should not be regarded as absolute fact in calculating future gains.

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