Timber Trading and Pricing of Plantation Grown Teak (Tectona grandis Linn.F) in Laos

The market demand and price of teak in Laos vary broadly and depend on several factors. The aim of this study was to assess timber trading and pricing based on a survey of teak buyers. The research investigated teak trading methods, markets and prices paid for particular timber types and quality grades. Three types of teak timber are commonly sold: 24.7% as standing trees, 39.6% as round logs and 35.7% as square logs. The main wood products produced from plantation teak include joinery products, door and window frames, and furniture (57.9%, 26.3% and 15.8% respectively). The end buyers of teak timber in Laos are sawmillers and wood manufacturer. Teak timbers supplied to end buyers from growers via the local traders account for 49.0%, followed by 41.3% by direct supply from teak growers and 9.7% via the local small sawmillers and wood manufacturers. The price of teak timber varies significantly based on four main factors: timber types, log sizes, log quality (grades) and distance from plantation site to road (for standing trees). The round log price of 250US$/m(3), based on both log diameter size (D26-30 cm) and log quality grade (A grade), was much lower than the 321US$/m(3) amount paid for the same size of round log (D26-30 cm) based on log diameter alone (no grading price). It can be concluded that there is a need to develop a clear system or standard for teak log grading and pricing in Laos.

Automated summary

The market demand and price for teak in Laos are influenced by various factors, with different types of teak timber commonly sold in different forms. The main wood products produced from plantation teak include joinery products, door and window frames, and furniture. End buyers of teak timber in Laos are mainly sawmillers and wood manufacturers, with different methods of supply from growers accounting for varying percentages. Prices of teak timber vary significantly based on factors such as timber types, log sizes, log quality, and distance from plantation site to road, indicating a need for a clear system or standard for teak log grading and pricing in Laos.