Investing in Two Successful Tropical Tree Species.

Two Successful Tropical Tree Species.

The forestry sector in Costa Rica has been influenced for many years by two commercially viable and vital tree species, Teak and Melina. Offered to both national and international investors, both species are highly sought after and have become a favourite as species of choice within sustainable tree farms.

Teak and Melina originated in Asia but over the last 30 years have been planted in many regions of Costa Rica. This is mainly due to the trees adaptability to the climate and environment. Therefore, as non-native trees, they are the two most widely established tropical tree species in the Costa Rican forestry sector.

Teak started to be planted in Costa Rica during the 1920′s. Teak was strongly marketed for being a sought after and important tropical hardwood. There is still a massive demand for tropical hardwood especially from India, where teak is known as the hardwood of choice.

Teak as a tropical hardwood, is one of the most used woods worldwide. Teak is in demand, in considerable amounts, by the the worlds markets with stable and generally increasing prices. This non-native tree has been intensively grown in forestry plantations due to its hardy nature and natural resistance to flood and pest.

Larger teak tree farms are generally in the hands of large international organisations while smaller plantations up to 40-60 hectares are controlled by national producers and professional project managers. The timber derived from tree plantations is mostly exported internationally, in form of raw-logs or as a plained and processed product. The main consumer countries are the population rich India, Indonesia and China.

Both countries are the two main importers of tropical wood while Europe and America are also big markets.

Importers of teak have strict rules in terms of certification (e.g. certified by the FSC)

Much later, Melina was starting to be introduced and planted with the aim to help pulp paper production. Afterwards, the importance of Melina has climbed considerably in the territory of Costa Rica. This is due to its short harvesting cycle which is unusually short for a hardwood. After 12 years a healthy Melina tree stands just short of 100 feet tall.

Melina is the most consumed type of tropical tree in Costa Rica.
Currently, both species benefit from sustainable demand.

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