WHY
REFOREST?
Economic Benefits
Basic economics tell
us that decreasing supply and increasing demand equal high rates
of return. Due to global deforestation, there is a decreasing
supply of tropical wood throughout the world. Also, due to increasing
ecological pressure, many of the industrialized nations have banned
the importation of tropical woods unless they have been cut from
sustainable sources. Meanwhile, world demand for tropical woods
remains stable and the price of tropical wood continues to rise.
Environmental Protection
Natural forests are
disappearing at an alarming rate. By providing lumber from sustainable
sources, we reduce the pressure on natural forests to provide
for the world's wood consumption. The sustainable utilization
and conservation of the tropical forests is now high on the international
political agenda. By harvesting planted forests in an environmentally
acceptable way, a unique opportunity exists to protect the environment
while producing extremely valuable timber. Reforestation is critically
needed, not only in Panama, but around the world.
Social Benefits
The company employes
several dozen local residents whose employment opportunites are
severely limited due to increasing strain on their natural environment.
They understand that if the company is not capable of offering
an alternate supply of timber, logging will resume and any hope
of preserving their culture disappear. We are working together
with the native community not only for environmental preservation,
for cultural preservation as well
Contact
The Project Manager
WHY PANAMA?
Perfect Location
Teak will only grow
within 20 degrees of the equator. Although not indigenous to Panama,
this tiny country provides a uniquely perfect geographical, climatic
and geomorphologic condition for the production of high quality
teak. Some of the fastest growth rates of teak in the world have
been recorded in Panama.
WHY TEAK?
Approximate
Market Data for One Hectare of Teak
| Age
|
Thinning
|
Trees
Remaining |
Logs
for Sale (M3) |
Market
Grade |
Price
FOB US$/M3 |
Total
US$ |
| 1-11 |
711 |
400 |
N/A
|
N/A
|
N/A |
N/A |
| 12
|
100
|
300
|
8.67
|
Local |
260
|
2,254.00 |
| 18 |
100 |
200 |
26.40 |
Export |
919 |
24,262.00 |
| 20 |
50 |
150 |
29.11
|
Export |
1,131
|
32,926.00
|
| 25
|
150 |
0
|
128.95 |
Export |
1,403
|
180.915.00 |
| Totals: |
1,111 |
|
193.13 |
|
|
240,357.00
|
Benefits of Owning
a Teak Plantation
- Expenses are up
to100% deducible from your income tax declaration.
- You will own a large
quantity of valuable teakwood ready for export
- In Panama there
are fiscal incentives for reforestation projects.
- Guided tours of
the plantation for all investors and guests.
- Choose from two
different projects, each with unique and valuable characteristics.
Teak is Unique
Teak is the world's
most valuable hardwood. It is used for outdoor/ indoor furniture,
industrial use and it adorns the most elegant homes around the
world. Also excellent for marine use - teak yachts, for example,
are of paramount quality.
Supply and Demand
for Teak
Consider these facts:
- Teak was the only
species for which log prices rose in Asia through 2000-2001,
as the demand for furniture and other joinery products made
from this species remained firm in European, Japanese and Thai
markets. (Source: http://www.itto.or.jp/live/index.jsp
)
- China at 6.1 million
³ (42% of all consumer country log imports) remained the world's
largest importer of tropical logs in 2000 after overtaking Japan
in 1999. China's imports jumped 27% from 1999 levels. (Source:
http://www.itto.or.jp/live/index.jsp
)
- Tropical hardwood
log imports by the Inernational Tropical Timber Organization
(ITTO) consumer countries rose by 9.2% in 2000, to 14.4 million.
If imports by producing members are taken into account, total
2000 tropical log imports by ITTO members were almost 18.1 million
³, 10% more than in 1999 (Source: http://www.itto.or.jp/live/index.jsp
)
- Myanmar (former
Burma) currently produces 80% of the worlds teak supply. The
NATIONAL GEOGRAPHIC SOCIETY estimates that the last teak forest
in Myanmar will be logged by 2010. Also, countries around the
world, driven by environmental concerns are banning the importation
of tropical hardwoods, including teak unless they come from
sustainable yield sources.
- Thailand once had
100 million rai (6.25 rai = one hectare) of natural teak forests.
Today, natural teak forests bascially no longer exist anywhere
in the world.
- Some countries in
Africa and Asia have teak plantations but the political turmoil
and conflict in these countries make long-term investment very
hazardous.
- Panama is one of
very few countries that has opened the timber industry for private
sector development with a combination of government incentives.
Teak Commands a
Premium Price
According to the International
Tropical Timber Organization web site, the average price for assorted
quality teak logs during March 2003 was US$846 per hoppus ton.
Actual prices
ranged between US$716 and US$1133 per ton.
Recently, price increases
have been even more dramatic. Lumber that was selling for USD
$3.00 to $4.50 per board foot (B/F) is now USD $6.00 to $10.00
for the same specification.
For more information
on current prices for teak see this link:
Source: http://www.itto.or.jp/live/index.jsp
Contact
The Project Manager
THE
PLANTATIONS
The project has been
duly registered and approved by ANAM (The Ministry of Natural
Resources in Panama).
State of the Land
Before Purchase
Loggers have already
harvested the land of all valuable tropical hard woods. After
logging, slash-and-burn farmers moved into the previously forested
area, which was opened up by the logging roads. The same land
was then used for agricultural purposes, but diminishing yields
finally lead to its abandonment. The land is still suitable for
growing teak as is clearly demonstrated by our existing healthy
plantations.
Topography and Vegetation
The majority of the
land has a gradient of less than 10%, which is ideal for reforestation
with teak. The rest of the land consists of primary forest, secondary
forest and lagoons. The primary forest will be protected and preserved
in its natural state. The secondary forest will be managed with
sustainable methods including enrichment plantings with fast growing
hardwood species. There are many suitable species, some of which
reach harvest size in as few twenty years while others take considerably
longer. Enrichment planting reduces, but does not destroy, the
diversity of the forest and requires careful maintenance. Ten-year-old
teak trees at existing plantations are averaging 30% above normal
plantation growth.
The Parcels
Parcels are of various
sizes. All land is titled and registered with the National Public
Registry.
Contact
The Project Manager
RISK
FACTORS
Fire
Fire is the single
greatest risk to the teak plantation, primarily during the first
2-3 years. After the fourth year of growth, the bark of the Teak
tree becomes very resistant to fire. The leaves are large and
rubbery and are highly resistant to fire. The biggest threat is
in the first yearly dry season when dry grass of shrubs can ignite
and kill the young Teak trees. Therefore, during the first two
years, considerable funds will be spent keeping the grass and
shrubs cut back.
Insects
Because of the unique
characteristics of Teak, there are no known insects or no known
insect infestations that have done any large scale damage to any
mature Teak plantation in Panama. Young plants and nursery stock
are subject to a root-eating insect, which must be treated with
a special pesticide.
Diseases
Teak is extremely resistant
to plagues and diseases. The one area of concern is in the initial
planting of the young nursery trees where the roots are susceptible
to fungal attack. All new plants will be treated with a proven
anti-fungal compound. Once the taproot has matured, fungal infection
ceases to be a significant problem.
Livestock
During the first four
years of development, grazing animals such as cattle and horses
can cause damage to the plantation. We take every precaution to
ensure this risk is controlled.
Hurricanes and Natural
Disasters
In Panama there are
no hurricanes, and natural disasters pose a very limited risk.
PLANTATION GROWTH
AND MANAGEMENT
Growth Rates
"After the initial
harvest of 20-25 years these miracle trees have the inherent ability
to re-grow 3 to 4 more times."
(Source: CATIE, Costa
Rica (Centro Agronomico Tropical de Investigacion y Ensenanza)
According to CATIE,
Costa Rica (Centro Agronomico Tropical de Investigacion y Ensenanza)
and other reliable sources, teak has been known to grow between
10 to 20 cubic meters per year. Climate and earth properties in
this region have created one of the fastest growth rates in the
world. Current growth rates at the existing teak plantations are
approximately 30% higher than initial estimates.
Maintenance and
Service
- The management company
has installed all required infrastructure including roads, bridges,
guest houses and office facilities.
- The management company
has purchased all required materials and equipment necessary
to properly manage large teak plantations of several hundred
acres.
- The management company
will be responsible for all the work required to plant and maintain
your teak plantation.
- Preparation of the
land.
- Plantation of your
trees.
- Maintenance of the
plantation including elimination of any potential fire hazards
for a period of 20 years.
- Pruning and fertilization
as required for optimum growth.
- Patrolling the plantation
to minimize loss due to theft.
- All legal fees are
included to register the title of the land in your name.
- You receive the
deed and topographic work drawn up showing landmarks.
- You become the owner
and direct beneficiary of the product: wood for industrialization
or for forest preservation.
Compare With Other
Lifetime Opportunities
When you consider the
incentives created by the Panamanian government which enables
you to obtain a Panama Residency Visa, and the fact that you will
own two prime world commodities (property and timber), this becomes
an excellent opportunity. Realizing that you will also be helping
to protect the environment while providing jobs to the local community,
buying a teak plantation is one of the most rewarding decisions
you have ever made.
Contact
The Project Manager
Steps to Purchase
a Teak Plantation
1. Purchase
- You may pay the
entire sum or pay an initial deposit of 10% to reserve your
parcel.
- If you reside in
Panama you may finance your investment with the Banco Nacional
de Panama.
- If you decide to
finance with an institution (3rd party), the initial retainer
fee of 10% will be collected in order to process your application.
2. Payment
Payments can be made
by cheque or bank draft but delays in transit and holding policies
by the local banks can take several weeks for the money to clear.
It is more efficient to make payments by international wire
transfer.
3. Title & Certificates
Title & Certificates
may be registered in your name or a company name.
4. Contact Information
All new applicants
must complete this section including a contact telephone number
and address.
Contract notes, deeds,
certificates and any other correspondence will be sent to the
address(es) noted.
Originals will be sent
to the first address only and copies will be sent to the additional
address.
5. Signature
Signature for a corporation
should be under the hand of a duly authorized officer, in which
case the latter's capacity must be stated. The signatures should
be authenticated by documentation provided by the corporation.
Minutes of a meeting authorizing the purchase, copy of the articles
of incorporation, copy of ID for all signing parties will suffice.
Contact
The Project Manager
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