Teakwood wholesale selling prices are posted each month by the International Tropical Timber Organization or ITTO. ITTO is an independent, international trade organization that brings together producers and consumers of tropical timber to develop policies and information on all aspects of the world tropical timber economy.
For instance, in the fourth quarter of 2002, the average wholesale price of Teak, according to the ITTO, was about USD$2,929 per Hoppus ton … which equates to a wholesale yield value per parcel of $300,000. In January 2003, the ITTO actual price had risen again to $3,244 for a three month rolling average of $3,063.
Over the last 30 years, Teakwood prices have increased more than 10 fold, increasing at an average annual rate of 8.3%. In the last five years, the lowest inflationary 5-year period (average 2.3%) in the last 35 years, Teakwood continued its impressive upward trend with wholesale prices increasing at an average annual rate of 7.1%.
More on ITTO
The International Tropical Trees Organization was developed in 1983 under the auspices of the United Nations. Recognizing that quality trade and market information is essential in order to ensure the continued supply of tropical timber, ITTO brings together countries that produce and consume tropical timber to exchange information and develop policies on all aspects of the industry.
The ITTO is headquartered in Yokohama, Japan. Its global membership includes
the European Community, the U.S., Canada, Japan, and others. Together, its
members represent 95% of world trade in tropical timber and 75% of the world's
tropical forests. ITTO represents the best (if not the only) source for independent
market information for Teak and other tropical trees including current wholesale
price information. PMG bases its projections on the historical market price
of Teak as recorded by the ITTO. To visit ITTO’s website go to: www.itto.or.jp