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| TEAK, Tectona grandis. General information about TEAK. |
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TEAK – The best business of the Brazilian agribusiness.
1) Industrialized – Just “sawn and dry” for export FOB Brazilian Ports.
Length: 7" and up or 2,20 m and up.
Width: 3” or 7,5 cm.
Thickness: 1-3/8” or 3,0 cm.
Teak 18 years old.
150 trees per hectare:
1,4 m3 per tree x 150 tree = 210 m3.
210 m3 x 30% (-) = 147 m3
+ sawing loss 147 m3 x 50% = 73,5 m3 of sawn lumber.
a) 36 m3, placed at the port ready for shipment at U$ 1500,00 per m3. |
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U$ 54.000,00 – Brut income per hectare.
U$ 18.000,00 – Expenses with extraction and transport to factory and sawing and transport to port.
U$ 36.000,00 – Net Profit per hectare with first quality lumber for export only. |
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b) 36 m3 of second quality lumber – Sold to domestic market at R$420,00 (US$198,00) per m3.
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U$ |
7.099,00 |
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U$ |
1.183,00 |
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Local Taxes |
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U$ |
5.916,00 |
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Net Profit second quality domestic sales. |
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NET PROFIT IN US DOLLARS FOR TEAK UP TO 18 YEARS WITH 36m3 OF FIRST QUALITY
EXPORT LUMBER AND 36M3 OF SECOND QUALITY LUMBER SOLD DOMESTICLY. |
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1) First quality Teak Lumber for export ............................. |
U$ |
36.000,00 |
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2) Second quality Teak lumber for domestic sales ............... |
U$ |
5.860,00 |
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Total Net Profit per hectare with 18 years old Teak ... |
U$ |
41.860,00 |
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A greater profit can be OBTAINED with 25 or 26 years old Teak.
NET PROFIT IN US DOLLARS FOR 25 OR 26 YEARS OLD TEAK
200 trees per hectare
2.00 m3 per tree x 200 trees = 400 m3
400 m3 x 55% first quality production result.
a) 220 m3 placed at port at U$ 1.500,00 per m3 = U$ 330.000,00
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Expenses with extraction and transport to factory and sawing and transport to the port......................................... |
U$ |
90.200,00 |
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Net Profit with 25 years old teak....................................... |
U$ |
239.800,00 |
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| b)60 m3 second quality for domestic sales at US$197,18 per m3......................................................................................... |
U$ |
11.831,00 |
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>Local Taxes - ..................................................................... |
U$ |
1.972,00 |
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>Second quality domestic sales Net Profit -...................... |
U$ |
9.766,00 |
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| DOLLARS NET PROFIT WITH 25 YEARS OLD TEAK. |
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| FIRST QUALITY EXPORT TEAK: ............................................... |
U$ |
239.800,00 |
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| SECOND QUALITY TEAK DOMESTIC SALES:............................ |
U$ |
9.766,00 |
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| TOTAL NET PROFIT WITH 25 YEARS OLD TEAK:...................... |
U$ |
249.566,00 |
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TOTAL INVESTMENT SUMMARY PER HECTARE OF TEAK
| Up to 18 years -...... |
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| On 25 years Teak -. |
U$ 249.566,00 |
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| Total -..................... |
U$ 291.426,00 |
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Net profit per hectare of teak.. |
Additionally were not taking in consideration other income from the earlier strategic lopping at 5 and 11 years. The lumber obtain from the 5 th year lopping it is normally sold as raw lumber and the teak from the 11 th year cut will be sold as small diameters log for furniture and veneer industries.
IF THIS TWO EARLIER LOPPINGS ARE WELL PLANED AND EXECUTED, THE FULL
INVESTMENT CAN BE PAID WITH THE REVENEWS FROM THEIR SALES.
2) TEAK logs sale profitability.
The first earlier lopping of very small diameter trees were not considered on this project but only the one done with 11th year old Teak. That can have a financial return of US$10.800,00 per hectare considering the actual price of US$120,00 per m3 and an estimated production of 90m3 per hectare of Teak from lopping.
On the 3 rd lopping is expected a production of 120m3 per hectare at the price of approximately US$200 per m3 or US$24.000,00 per hectare.
On the final cut a production of 238m3 per hectare is projected at an average price of US$500,00 per m3 or US$119.000,00 per hectare. All prices were estimated for logs sawn and dressed up at the property.
It is our opinion that this project at its final cut with 25 years old Teak should produce a Gross Income of approximately US$152.000,00 per hectare.
Conclusion.
*It is evident that despite the so may different pieces of information about producing Teak in Brazil, all of them show that Teak plantation it is today the best agribusiness in Brazil...*
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