Standing Teak
"More than 95% of the world’s teak comes from non-sustainable jungle sources."
Plantation Capital Plc is also offering an exclusive opportunity to invest in a standing teak plantation, located in the Suphan Buri district of Thailand. It is a sought after plantation and has the added benefit of maturing trees that have been cultivated from tissue culture.
Plantation Capital Plc has partnered with one of Thailand’s most established biotechnology companies with a trading history of approximately 30 years in order to secure this opportunity. These standing super teak trees were planted in 2004 and are approximately 7 years old. They have been formed from tissue culture, and so deliver far more consistent results. The process involves selecting a mother tree between 35 - 200 years old and extracting a cutting. The extract is then cleaned and put into a special solution to multiply and then root. The extracts are closely monitored under strict laboratory conditions and the result of this process is faster plantation cycles and uniformity in tree size.
This particular investment is classed as a medium to long-term, and clients have the opportunity to receive returns as early as year 10 and then again at year 18 of the trees‘ life. (Please note trees are already 7 years old at the start of the investment period).
- Demand: Teak remains in high demand and is particularly popular in the emerging economies of China and India. In 2009 according to the International Tropical Timber Organization (ITTO) India imported 87,290 m3 of sawn wood and China imported over 7 million m3. The ITTO also reported in 2003 that the supply of hardwood timber from natural tropical forests exceeded 100 million m3 per year.
- Supply: At the moment more than 95% of the world‘s teak comes from non-sustainable tropical sources. Since the concerted effort to eradicate illegal logging of tropical forests, supply of teak has fallen dramatically. Consequently, the demand for ethically-sourced teak has grown and it is forecast to continue to grow over the medium to long-term.
- Tissue Culture: Tissue cultivation allows for faster planting cycles of between 16-18 years, rather than 20-25 years. This proven method also delivers consistent tree quality which in turn gives higher yields and quality.
Next Steps
- Before any purchase is made you are required to register your interest either by phone or email, details can be found in the Contact Us section of the website.
- The investment will be explained in full and will include price points, marketing material, forecasts and analysis.
- Our investment consultants are fully-trained and pride themselves on their knowledge and experience within the sector. Each has visited our plantations in order to appreciate the operations in practice.
- Once you are comfortable with the product, the company and the consultant, and are happy to proceed with the investment, you will be required to fill in an application form and the purchase cycle will begin.
