Natural teak forests decline, while planted teak forests increase

New FAO survey reveals trends in teak forests and markets

The results of a new FAO (Food & Agriculture Organization of the United Nations) global Teak Resources and Market Assessment conducted in 60 tropical countries show that natural teak forests are declining worldwide and that the quality of natural grown teak wood is deteriorating. On the other hand, the survey also reveals that planted teak forests are increasing in area and - when good management practices are applied - producing high quality wood.

Natural teak forests in decline

Natural teak forests grow in only four countries in the world: India, Laos, Myanmar and Thailand. In 2010 their combined area of natural teak forest was estimated at about 29 million hectares, almost half of it growing in Myanmar. At present, Myanmar is the only country that currently produces quality teak from natural forests - India, Lao PDR and Thailand have bans on logging in natural forests or on log exports in place.

According to the survey, natural teak forests declined in area by 385,000 hectares globally, or by 1.3 percent, between 1992 and 2010. Substantial declines have been particularly notable in Laos (down by 68,500 hectares), India (down 2.1 million hectares), and Myanmar (down 1.1 million hectares). In Thailand, a complete ban on logging in natural forests introduced in 1989 may have contributed to the recovery of natural teak forests, which are reported to have increased by 2.9 million hectares, according to FAO's report.

"Although there is no better up-to-date information on teak resources available at the moment, data provided by the survey must be handled with care," said Walter Kollert, FAO Forestry Officer. "It is difficult to obtain precise figures on teak forest loss, because teak trees do not grow in pure stands in nature. Natural teak forests are mixed deciduous or tropical evergreen forests which have a share of teak of between 4 and 35 percent."

Planted teak - a globally emerging forest resource

Teak is one of the most important and valuable hardwoods in the world, and planted teak forests have attracted large private sector investments in Africa, Asia and Latin America. As a result, the planted teak area has increased in Africa (Benin, Ghana, Nigeria, Tanzania), Central America (Costa Rica, El Salvador, Guatemala, Nicaragua, Panama), South America (Ecuador, Brazil) and Asia (India, Indonesia, Myanmar, Laos).

"Although the time until trees reach harvestable dimensions is comparatively long and on average takes between 20 and 80 years, teak planting serves local communities as a savings account and in the long run helps smallholders improve their livelihoods and the livelihoods of their children," added Kollert.

Genetic resources conservation is needed

In the future it can be expected that sustained production of teak logs from natural forests will be further limited due to continuing deforestation and competition for environmental services, according to Kollert. "Supply trend points to a continuing decline in the volume and quality of natural teak, which results in progressive loss of genetic resources. This is why it is essential in the near future to plan, organize and implement a programme for the genetic conservation of native teak resources in the four countries with natural teak forests," he stressed.

Global teak market trends

Asia holds more than 90 percent of the world's teak resources, and India alone manages 38 percent of the world's planted teak forests. The major teak trade flows worldwide are directed towards India, while its own considerable teak production is processed within the country. Eleven out of fourteen reporting countries named India as their number one importer, absorbing 70 to 100 percent of global teak exports, including shipments of plantation logs and sawn timber from Africa and Latin America. Myanmar, India and Indonesia are expected to maintain their market position on premium quality teak though this market is limited by supply

The Teak Resources and Market Assessment 2010 (TRMA 2010) is a special study of the Global Forest Resources Assessment 2010 (FRA2010). It aims to present updated country level information on teak, which is one of the emerging hardwood resources in the world. The assessment was conducted through a standardized questionnaire sent to 69 countries, which used the existing networks of FRA national correspondents and the members of Teaknet, an international teak information network managed by the Kerala Forest Research Institute (KFRI), India.

Summary and Conclusions

Global significance of teak: Teak is a small proportion of the world's timber production and trade. The estimated market share of teak logs in total tropical round wood production is less than 2 percent but in terms of value it is much larger, since teak is part of the high-value hardwood market, and is a major component of the forest economies of many tropical countries. Planted teak forests have attracted large investments from the private sector in Africa, Asia and Latin America. Globally, they constitute the only planted hardwood resource that is increasing in terms of area.

Survey coverage: The Teak Resources and Market Assessment 2010 (TRMA 2010) was conducted in 2011 in 69 countries, 9 of which reported that they do not grow teak. 43 countries reported that they grow teak, but of them only 38 countries were able to give data on the species.

Teak areas: Natural teak forests are estimated to cover 29.035 million hectares in India, Lao PDR, Myanmar and Thailand. Almost half of the total is in Myanmar. The area of planted teak forests reported by 38 countries is estimated to be 4.346 million hectares, of which 83 percent is in Asia, 11 percent in Africa, and 6 percent in tropical America. Taking into account the data missing from 22 teak-growing countries, this figure certainly underestimates the actual area of planted teak forests.

Planted teak - a globally emerging hardwood: Planted teak is the only valuable hardwood that constitutes a globally emerging forest resource. Compared with previous surveys, the planted teak area has increased greatly in Africa (Benin, Ghana, Nigeria, United Republic of Tanzania), Central America (Costa Rica, El Salvador, Guatemala, Nicaragua, Panama), South America (Ecuador, Brazil) and Asia (India, Indonesia, Myanmar, Lao PDR).

Age class distribution and rotation age: Planted teak forests are predominantly (77 percent) younger than 20 years. The prevailing age class distribution shows recent efforts to establish planted teak forests, but the current enthusiasm of many corporate and private investors for planted teak will maintain the youthful age structure and, in order to improve the economic rate of return, will tend to shorten the rotation period. This will lead to a significant increase in the supply of small-dimension logs grown in short rotations not exceeding 20 years.

Ownership: In Africa, Asia and the Caribbean most planted teak forests are owned by governments, generally the forestry or agricultural administration, but in Central and South America state governments own merely between 1 percent and 12 percent of planted teak forests, while the private sector holds 88 percent in Central America and 99 percent in South America. Teak is not currently a priority species in community forestry, although there are a number of cases of smallholder teak plantations, which have contributed to the improvement of rural livelihoods.

Growth performance: The reported growth rates of planted teak are contentious. Many growth predictions continue to appear on the internet and in literature, predicting very high growth rates above 20m3 per hectare per year. The actual long-term productivity of planted teak has, however, often turned out lower than predicted. Teak is not a fast growing species per se. Its growth performance depends on the quality of the planting material and the best management practices. The mean annual increment (MAI) reported by 26 countries appears rather modest and lies, for most regions, between 2 and 14 m3 per hectare per year, except for some high-intensity investment schemes in Central and South America.

Log removals: A volume of ca. 0.5 million m3 is currently estimated to be harvested in natural forests and 1.5 to 2 million m3 in planted forests if all teak producing countries were accounted for. The world's total teak supply from natural and planted forests adds up to 2 to 2.5 million m3, of which at least 60 percent are cut in India, Indonesia and Myanmar. The estimated market share of teak logs on the total tropical roundwood production is less than 2 percent. In value terms a much higher share can be expected, but there are no data to support this.

Supply from natural teak forests and genetic resources: Myanmar is the only country producing quality teak from natural forests as India, Lao PDR and Thailand have logging bans in natural forests or log export bans in place. A maximum sustainable supply of quality teak from Myanmar is likely to be in the order of 400,000m3 per year or less. In future it can be expected that the sustained production of teak logs from natural forests will be further limited due to increasing deforestation and competition for environmental services. Hence, the supply trend points to a continuing decline in the volume and quality of natural teak and it is imperative to initiate a program for the conservation of natural teak forests if the genetic resources of natural teak are to be sustained.

Global teak market trends: The global teak market has been and will continue to be governed by trends in the Asian market. Asia holds more than 90 percent of the world's teak resources and India alone manages 38 percent of the world's planted teak forests. The high international demand for general utility teak has broadened the traditional teak supply base from natural forests in Asia to include fast-grown, small-diameter plantation logs from Africa and Latin America.

Indian demand dominates the market: The major teak trade flows worldwide are directed towards India, while its own considerable teak production is processed within the country. Eleven out of fourteen reporting countries name India as their number 1 importer, absorbing 70 percent to 100 percent of global teak exports including shipments of plantation logs and sawn timber from Africa and Latin America. In Africa, significant exporters are Benin, Ghana, the United Republic of Tanzania and Togo. In Latin America, Ecuador, El Salvador, Guatemala and Brazil, are important teak exporters (no information was available from Costa Rica and Panama).

Price and quality: Obtaining prices for teak logs and sawn timber proved to be difficult. No common international log grading rules have been established, most exporting countries' definition of log dimensions turned out to be different, and the use of various measuring units for dimension and volume further complicated the price survey. As a general rule it can be established that teak prices are very closely related to wood quality. Quality in teak is determined by dimension, bole shape (roundness and straightness), heartwood/sapwood ratio, regularity of annual rings, number of knots, color, texture and the soundness of the butt log. Teak from natural forests in general possesses many of these features to some extent and sells at comparatively high prices. Logs from planted teak forests are typically smaller in size and will hardly ever reach the dimension, quality features and prices of logs grown in old-growth forests.

*To read the complete FAO Teak Resources and Market Assessment report, please go to: http://www.fao.org/forestry/plantedforests/67508@170537/en/