Why invest in teak? Among a myriad of farmable timber species, teak presents an unparalleled opportunity. One of the most valuable woods in the world, teak is widely sought for its natural beauty and durability. It is used most regularly in high quality furniture, hardwood flooring, decking for yachts, and other construction applications.
While there is growing demand and decreasing supply for timber in general, the imbalance may be even more dramatic for teak. Rapidly developing nations including Brazil, India and China are some of the largest consumers of teak, ensuring that demand will continue to increase. Meanwhile, international legislation has banned or severely restricted harvesting of native teak in most countries, while an insufficient number of plantation programs have been established to replenish the supply of teak. Combined, these factors have contributed to average teak price increases between 6-8% in recent years. (Source: International Teak Report, Anantha Padmanabha).