According to recent numbers posted by the Food and Agriculture Organization of the United Nations (FAO), annual demand for teak has never been higher. The timber that teak trees yield has become popular among carpenters and craftsmen for its durability and the fact that it’s very easy to work with.
Unfortunately, there’s a flipside to this story. With the interest in teak showing no signs of slowing down,
Myanmar’s Teak Ban:
When it comes to exporting teak, Myanmar is one of the biggest countries in play. Being one of the only four countries where this tree grows naturally, Myanmar has been the largest exporter of teak for years.
Amid fears of heavy deforestation, the then president of Myanmar Aung San Suu Kyi announced a yearlong ban on exporting teak. This announcement was lauded by the people of Myanmar as they had lost nearly 10.8% of their forests in just half a decade (2010-2015).
While her actions were certainly noble, this sent the teak industry into meltdown. As demands for timber refused to die down so other Asian countries had to export more to meet this rise in demand.
Asian Reserves:
Once the Myanmar ban on teak exports was lifted, it was observed that teak reserves of other Asian countries had fallen considerably. India’s annual teak export has declined from about 20 million cubic meters per year to only 6 million cubic meters meter per year.
Lao PDR was hit even worse than India as its current annual teak production is only 500 cubic meters per year. Other Asian exporters of teak all report similar numbers which only goes to show the massive difference between supply and demand in the teak industry.
Teak Plantations:
Measures are being taken to address the shortfall between the teak reserves in the world and the annual demand of timber. Nowadays more and more countries are setting up teak plantations which go a long way in meeting the demands of the world. Among the many countries setting up teak plantations, Belize has become a major player in the market. Belizean teak is known for its unique golden-brown color and its durability.
With the annual demand of teak showing no signs of slowing down, teak plantations have become a promising business venture for people to invest in. Are you looking to invest in Belize’s agricultural sector?
We at TKO Farms Inc. provide investment opportunities to our clients. Call us at (714) 259-0686 or drop us an email at info@tkofarms.com.