Even though it is hard to calculate with precision, due to the nature of the countries and the terrain in which they are found, natural teak forests and commercial teak plantations worldwide currently account for approximately 30 million hectares of land. Simultaneously, teak trees make up about 1.1% of the world’s commercial timber plantations. Nevertheless, in the case of Latin America, teak makes up some 1.7% of commercial wood plantations in region, which is slightly higher than the global average. Furthermore, in recent years, Latin America has experienced substantial growth and investment in terms of teak plantations, particularly in Colombia, Nicaragua, Panama, Costa Rica, Salvador, Guatemala, Ecuador, and Brazil. As of today, India is the main Asian destination for teak produced in Latin America, particularly in Ecuador, Panama, and Costa Rica.
Some of the key elements to keep in mind when investing in or managing a teak plantation are making sure that strong winds do not affect the trees because they must grow straight up for maximum returns as well as regularly thinning the trunks. A well-located and well-maintained teak operation will be a profitable investment for decades as the sales of small wood from the periodic thinning yield regular income and the final harvest brings in large returns. Finally, some interesting facts about teak is that the trees are both fire resistant and immune to most kinds of insects or environmental diseases. Therefore, teak is a very safe investment within the agribusiness sector.
SOURCE: https://farmfolio.net/articles/teak-market-outlook-latin-america