The revenues are originated from:
Firewood obtained from the thinning-outs.
Logs and sawed wood from the thinning-outs.
Sale of logs and timber for final sawing.
Incentives for compliance with the environmental obligations,
other related incentives and, possibly:
The future sale of carbon sequestering certificates.
Variables that contribute to the pricing of Teak:
Dimensions (specially in diameter).
Straight logs and better shaping of the circumference.
Healthy logs, free of branches, knots or irregularities.
The wood originated from the thinning-outs in the 5th year can
already be utilized for the manufacture of furniture, a factor
that tends to increase the revenues in this phase.
The revenues from the second thinning-out are sufficient to
defray the direct investment costs made for the implantation
and maintenance of the reforestation.
Starting from the third thinning-out, the activity already generates
returns.
At the time of the final cutting, on the 25th year, the investor
will have earned 90% of the cycle´s revenues, having produced
60% of the timber possible to be obtained.
