MARKET PROSPECTS

The South Asian teak forests need 80 to 100 years to present adequate dimensions and economic condition for utilization.

The offer of this kind of timber becomes more and more compromised:

- In Myanmar the government instituted a judicious selection system for the trees that can be felled.

- In Thailand the utilization of native teak forests is forbidden since 1989.

- In the Philippines, Vietnam, Laos and Cambodja the utilization of natural forests has been restricted to the maximum.

In a couple of years the sole remaining source for teakwood will be the planted forests.

The offer of teakwood by the Asian countries cannot be increased in function of the lack of areas to expand the plantations and due to the competition from other cultures, mainly of food produces and that guarantees a faster return of the investments made in Brazil).

Other possible areas of expansion for the teak plantations, as Africa and a large portion of Latin America present restrictions to the cultivation, being that the forests of these regions have a low productivity and
long waiting periods for the first
cuttings, turning the business lesser
interesting.

In Brazil there are regions whose soil and climate conditions allow the forming of an economically viable teak tree after only 25 years.
Only in Brazil there are environmental and economical conditions for the expansion of teak forests, in volumes sufficient to attend the future demand for this type of timber.

The State of Mato Grosso has the largest area in ideal conditions for this culture, with adequate soil and climate conditions. The State has the world´s greatest potential for the safe implantation of teak reforestation.