Demand for teak is universal and almost unlimited. With its golden colour and appealing texture, teak enjoys an unparalleled worldwide reputation as a premier hardwood. It is visually attractive, durable, easy to work with, termite resistant and suitable for most conceivable forms of end use. Teak wood lasts for hundreds of years in shipbuilding and construction.
Teak commands an exceptionally high price compared to other commodity hardwoods due to its desirability for specific applications and the shortage of supply. Although plantation teak is now emerging into the market, a universally recognised Food and Agriculture Organisation report from 2001 indicates that there will continue to be a shortage of supply over demand until at least 2030. This has led to an average market value inflation of 6.75% per annum over the last 10 years.
Teak's broad spectrum of uses means that demand is potentially endless, but supply is extremely limited and has enormous possibilities for growth. Products include: sawn timber for construction veneer and plywood luxury yacht finishes strip and block flooring furniture components solid doors, door and window frames laminated boards and panels, carved items for decoration household utensils and kitchenware.
Teak is the number one tropical hardwood. Although plantations date back as far as 150 years in India and Myanmar, plantation establishment has accelerated in the past 20 years as growth has demonstrated impressive potential. With the decreasing availability of teak from natural forests, plantations are becoming an increasingly important source and will likely take primary position in the future. As demand for plantation teak expands, the private sector has increasingly become involved in satisfying this market. As well as their undoubted profitability, teak plantations are socially and environmentally beneficial to their host areas.