What Does All This Mean for Teak Investors?

The teak industry is going through a major transformation. The countries that have been the traditional sources of teak are placing bans and regulations on the logging and exportation of teak in their countries.

Simultaneously, teak production throughout countries in Latin America is ramping up. This makes right now an excellent time to invest in a teak plantation as the demand for teak is increasing while the supply from traditional sources is decreasing. The teak plantations of Latin America are poised to fill this void.

TKO Farms, Inc.

TKO Farms, Inc. has contracted to acquire a 512-acre farm with a proposed additional 400 acres in Belize. 

Of the 512 acres, 312 acres are in hardwood trees, consisting of 76,532 teak, 16,500 mahogany, 5,460 Spanish cedar,1,700 sapodilla, 9,500 coconut, 2,196 soursop, 8,500 orange, 550 lime and 763 zircote , for a total of over 120,000 trees.

200 acres are planted in cash crops, and it is from this that all current farm income is derived.  The hardwood trees are like an annuity, with each passing year they grow older, larger and more valuable.  

The 400-acre farm will have after planting, 65,550 teak, 18,750 coconut and 9,000 soursop, for a total of 93,250 trees.

The teak reaches harvesting value when the heart wood grows to occupy the entire diameter of the tree, approximately 20 to 25 years after planting. The mahogany and other hardwoods take an additional 5 to 10 years.  

The real value is in the teak.

Cash Crops

There are more than 50,000 cash crop trees growing or to be planted, including coconut, citrus and soursop.

The soursop fruit is known for its medicinal value. It contains unique natural compounds which make it beneficial for the treatment of various ailments. Recently, it has gained popularity due to the fact that it can kill cancer cells up to 10,000 times more effectively than chemotherapy drugs and without side effects.

Soursop fruit regularly sells in the U.S. for $10 per pound and up.

The coconut has long been an indelible part of Latin food and culture, with the dried meat, known as copra, becoming quite a profitable sector. It is from copra where coconut oil is extracted. Coconut is used in a variety of edible products such as coconut water, desiccated coconut, coconut flour, coconut sugar, dried coconut fruit, coconut milk, virgin coconut oil, coconut vinegar, coconut jam, and coconut nectar syrup.

In the United States, the demand for coconut products is on the rise, in particular coconut water and coconut oil. Many U.S. consumers are seeking healthier alternatives to the more traditional options and coconut is recognized as a highly functional food, which is flavorful as well as healthy.

In addition to the high nutritional content, coconut is becoming well known for a range of health benefits including the promotion of weight loss. It is also highly valued for its moisturizing properties. With such a wide variety of benefits and uses, coconut is very much in demand.

 

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Farm Headquarters

The Plantation

Aerial Map

Over The Plantation

The River

Young Trees

Industry Numbers

 

The Vacation Cottages

TKO Farms, Inc. has contracted to build a vacation retreat for the pleasure and use of our investors. Initially, the compound will consist of four quality vacation cottages.  This will give investors the opportunity to enjoy not only the lovely climate and charming hospitality of Belize, but also to view the project first-hand and see the wonderful investment opportunity presenting itself.

 

 

Summary

 

Belize is an economically and politically stable country, which has embraced its 36-year old status as an independent country by opening trade and tourism avenues to the world. Travelers and business partners alike are made to feel welcome by the friendly atmosphere symbolic of the people and government of Belize.

 

The teak wood industry has undergone a dramatic change in the global market as reliance on supplies from countries in Southeast Asia, India, Thailand, Laos and, by far the most significant, Myanmar, are being supplanted due to extensive logging of the natural teak forests. In the past several years, each of these countries have implemented bans on the exportation of unprocessed teak logs.

 

While demand for teak has continued to grow, the industry was forced to turn to a new region for supply, specifically, Latin America and Belize. This makes right now an excellent time to invest in a teak plantation as the demand for teak is increasing while the supply from traditional sources is declining. The teak plantations of Latin America and Belize are poised to fill this void. There are more than 220,000 trees already growing or to be planted between the two TKO Farms, Inc. tree farms, of which 142,082 are teak.

 

Cash crops provide immediate and sustainable revenues and coconut and soursop products are in great demand due to their healthy and healing benefits. 

Hardwoods are one of the safest and steadiest growth investments available, protecting an investor in times of inflation and providing returns. In fact, hardwoods have outperformed all major stock indexes over the past 40 years.  They offer a solid return on investment and a hedge against inflation and currency devaluation.

 

Teak is one of the best values with the highest yields in the timber sector. It is a small niche segment which is managed by smaller, privately owned companies versus the big institutional operators.

 

Minimum amortized annual returns of 25-30% and a total return of at least 600% are quite attainable using existing market prices and conditions. A $25,000 investment, whilst simultaneously generating the returns specified, will also increase in value exponentially as the farms are generating revenues. The investment remains a significant and appreciating asset through and beyond the 25 year term.

 

Just like the beautiful climate of Belize, an investment in TKO Farms, Inc. is an opportunity for a rewarding and pleasant experience.

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