Teak - Price development
Over the last 32 years, teak prices have risen by an average of 5.5% per year. However, according to the International Tropical Timber Organization (ITTO), the average growth in teak prices from September 1997 to April 2007 has been 8.5% p.a.
An investment in teak plantations is a long-term investment and therefore it is important to look at the price development of teak, as the gain depends on the price you can get for the wood when it is felled.
The price today? It can be very difficult to determine, as it depends partly on the quality of the wood and partly on which market the wood is sold to. According to ITTO, which publishes average export and import prices of teak in their – Market Information Service-, the average prices of plantation teak> 30 cm in diameter are approx. 500 USD pr. m3. (2012)
But price increases in the past and good prices today are no guarantee of the future. The interesting thing is what expectations there are for demand in the future, cf. the section – Profitability