Some trees will be harvested after 7-10 years in order to promote the growth of the remaining young trees in the best manner. It can be assumed that 500 trees per hectare will be left standing after this initial harvesting. The trees cut down at this early stage will probably produce a low grade wood suitable for cheap furniture, packaging or paper pulping.
The total return on investment should include the trees cut down after 7-10 years, with a lower price per cubic metre. GoldTeak recommend using the values for wood at 7 years old. This would then be 600 trees at an average height of 10metres with a diameter of 22cms – yielding a volume of 0.38 m3 per tree.
The prices for teak at the Indonesian Government Auctions recently were as shown in the attached file.
