Project Management

In this section we will endeavor to provide you with brief information on our teak management styles and some pros and cons of different types of trees. What we chose to use for number comparisons and why. For more information on teak and teak management Click on general information on teak

For the best long-term (25 year) return on your money we have chosen high density teak plantation. Using directional root technology we start with planting 1,100 trees per hectare. While this is a little more expensive in the beginning, it pays off better over the long term. The high density leads to taller, straighter trees. Directional root technology is merely a cone placed around the roots in the nursery and left there when planting that forces the roots to grow down deeper into the ground, giving the trees access to more nutrients and water throughout their life and allowing them to thrive in a higher density setting. This leads to more overall harvest at the end.

We chose teak mono culture for the calculations on return on the investment although some land will be planted with greater diversity in types of trees and each investor has the option of planting different trees within those accepted by the reforestation plan. Underbrush is only cut back enough to maintain the trees, which helps prevent soil erosion and adds to the bio diversity of the environment. The trees are thinned at 5 years and again aggressively at ten years to leave 800 trees per hectare.

The value of trees harvested for the 10 year thinning is disputed so they are left out of our profit calculation although the investor does get any profit that is made off this thinning.

At 15 years the trees are thinned to 500 trees per hectare and at 18 years they are thinned to 300 trees per hectare for a final harvest at 25 years of 300 trees per hectare. At 25 years the investor has several options the trees can be thinned to about 150 trees per hectare or a complete harvest can be done. While the trees are of full commercial size at 25 years teak will continue to grow well and the percentage of heart wood will increase for another 25 to 35 years. The investor therefore has options as to when to harvest and take the profits. Optimum return is attained by harvesting at 25 years and letting a second growth start. Trees at 20 to 25 years have over 1 cbm of good wood per tree which is a 300 cbm per Hectare. Growth rates slow down after 25 years.

If one wishes to plant other types of trees with the teak we can do that and always do to some degree just to add to the biodiveristy of the overall plantation. Some things to think about in planting a mix of trees is at harvest time it is hard to sell a small quantity of some of the trees. Different trees have different harvest times. Many of the other types of trees are secondary growth trees and cannot be planted until there is a forest cover with trees such as teak so the trees could not be started until the 10 year thinning, and thus will not mature till a much later date. Therefore a mixed forest management has to be thought of in an even more long term view and has to be done on a larger scale. We are looking at starting a diverse forest project in the near future and if you are interested in this let us know so we can contact you when we offer something in that project. Some of the advantages of a mixed forest are over time some of the slower growing more valuable trees can be grown. A diverse forest has greater bio diversity from an ecological point of view offering a home to a greater number of animals and plants. As the forest matures trees can be harvested every 10 years without ever cutting down the forest. With a variety of trees the odds of a pest to one particular type of tree wiping out the whole forest is reduced. Because many of the different trees need partials shade of a primary growth a teak plantation can reclaim land that is completely barren and a diverse forest can be started as the teak matures.

Some Other Types of Trees Available

Laurel (Cordia alliodora) is one of Panama's most common softwoods whose two-tone gold-colored heartwood is used for common construction, as well as for furniture; it is mature in 8 to 10 years with yields of up to 600 board feet of marketable lumber when fully grown. Though less precious than teak at $.50 per board foot (current wholesale domestic price, un milled), laurel grows easily in many terrains, needs little maintenance and does not require pruning. Laurel is noted for its straight, tall trunks whereas black laurel, a quick-growing hardwood, requires 50% sun and 50% shade

Other indigenous species worth considering include Roble de Sabana (Spanish oak); Cedro Espino (spiny cedar); Nispero (chicle tree); Caoba (mahogany), Cocobolo (rosewood), Criollo (ironwood)-the list goes on and on. Though most tropical hardwoods (with longer maturity's than laurel) flourish best in areas of regrowing pastureland or secondary growth forests requiring a nonlinear approach to planting, it may be worth the effort to establish a true reforestation project of mixed species in these areas. Increasingly, the demand for fine hardwoods such as Nazareno (purple heart), Ron Ron (goncalo alves), Coco Mono (monkey coconut) and the like, is increasing as fewer and fewer of these mature trees are to be found in the wild.

Along all the water ways we develop a nature habitat and diverse forest with native trees and vegetation.

For a fairly complete dissertation on Teak and Teak plantation management go to the General information on Teak Section