Investor Presentaiton
October 12, 2021
GROWTH PROCESS
At the final harvest, the 250 best trees are logged and sold. Initially, 850-1,000 trees are
planted by hectare. As time goes by, those with the least growth prospects are logged, leaving
the top 250 for the final harvest, which may yield 0.64-0.88 m³. According to the company's
latest annual report, market prices lie in the range of US$50-874 per m³.
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Site selection: The company acquires land with ideal soil, precipitation, and
location. Then, the site is prepared (tilling and rolling). Site acquisition represents
the largest outlay on a teak farm.
Planting and maintenance: Clonal seeds are initially grown in a greenhouse
developed in situ and then sown. Special care must be taken during the first two
years, as trees are more vulnerable to plagues. Maintenance costs decrease by
more than 75% after this initial period, per a recent Harvard Business School
study on Proteak.
Thinning: 850-1,100 trees are initially seeded per hectare. Afterward, the
company cuts down those with the least growth prospects. This ensures that the
best trees have less competition for nutrients.
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400 trees are cut down during the first thinning.
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250 trees are logged during a second thinning intervention, (carried out sometime
between years 15 and 18) and sold. We assume these trees command only 10% of
the price of trees from the final harvest.
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Final harvest. Approximately 250 trees are left standing for the final harvest.
Depending on the Quality Scorecard factors, each hectare may yield 0.64-0.88 m³.
According to the company's latest annual report, market prices lie in the range of
US$50-874 per m³.
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GBM
TEAK: AFTER ALL, MONEY DOES GROW ON TREES. | 16View entire presentation