Teak is one of the most popular and valuable timber. Its timber fetches the highest price among the quality hardwood. Teak wood are sought after for decks, trim and detail work in expensive boats and fine furniture, flooring carving, joinery, cabinetwork, paneling, turnery and veneer.

While there is an increasing demand for teak, there is a scarce availability of timber. More than 40% of the world’s tropical rainforests have been lost since 1940. Many species of tropical hardwood trees have become increasingly rare. At the present rate of destruction, 70% of the earth’s tropical rainforests will be lost forever by the end of this decade. As an act to protect the environment, governments have passed strict regulations against harvesting trees from the natural rainforests. This phenomenon presents another great opportunity for investors.

We have direct access to some of the most prolific teak plantations in the region.

Many investors are anxious to invest in Teak plantations and reforestation projects because potential returns are enormous. As the worldwide supply of Teak dwindles, the prices of this exotic wood will continue to rise. Higher prices only make the opportunities for Teak investments that much more desirable. The time for these opportunities is now; because of the time involved in establishing new Teak plantations.

Teak investment can be extremely profitable; for example, over the lifespan of a tree in a Teak plantation, the first harvest occurs at 12 years, and re-grows up to 3 times. If the trees are planted in a 10 foot quadrant and maintained properly, a hectare of Teak trees at the current market prices will yield gross income of over $475,000 in 20 years. It is projected that plantation set-up and maintenance costs would be approximately $17,000 per hectare for the same 20-year plantation.

Teak only has a very narrow growing region near the equator that is conducive for reforestation projects. In addition, Teak requires fertile soil and it doesn’t grow well above elevations of 600 meters. There are countries in Africa that have already seen Teak investment and are now home to Teak plantations, but these areas are not secure due to political unrest. Other countries such as Indonesia have extensive Teak plantations but these are strictly controlled by the government.

Teak investment, due to its limited growing area, is somewhat strategic as well as very lucrative.

MPP has access to Teak plantations are tree farms that represent great investment opportunities. These plantations are reforestation projects in areas that can accommodate optimum growth; these are planned and managed groves. Because they are strategically planned and maintained these Teak plantations can actually have effective yields that are higher than naturally occurring groves and forests.

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