Teak vs Robinia/ Paulownia

Teak versus Robinia/ Paulownia

Here we want to show the main differences between investments in Teak and investments in Robinia or Paulownia.
When you are looking for a forestry investment, you usually only have the choice between several Teak companies. Some companies offer Teak plantations that are several years old, but it's still Teak.

We don't argue that Teakwood is a valuable commodity and therefore highly priced. We just want to show our alternative with Robinia or Paulownia wood and the differences between Robinia, Paulownia and Teak.

Often we hear that because Teak is grown in the tropics, it grows much faster and therefore brings more volume. This is true, the total volume of the tree is very big, but the volume of the actual hardwood is just as big in Teak after 20 years, as it is in Robinia after 20 years. This is because Teakwood is mostly softwood until it reaches a certain age, about 20 years. Robinia has only 10% softwood and 90% hardwood and it's the hardwood that is the valuable part. Because of this fact, Robinia can be succesfully harvested after 10 years where as Teak cannot. The volume in timber of Paulownia is even greater than that of Teak or Robinia and after a shorter period of time. This fact allows us to harvest the Paulownia trees after only 12 years.

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Similarities

  • Teak, Robinia and Paulownia are fast growing species
  • Teak, Robinia and Paulownia have class I-II durability
  • All species fetch high prices

Differences

   Robinia/ Paulownia
 Teak  
 Investment Term:
 10 to 20 years  20 to 30 years
 Suitable countries:  Germany  South and Central America
 Securities:  Land with high value  Land with lower value or even no ownership but lease
 Insurances:  Fire and storm insurance  None
 Trade:  In strong Euro  In weak US Dollar
 Stability:  Germany  Third world
 Plantation visits:  Close and affordable  Far away and expensive

Naturaly we are biased towards Robinia and Paulownia.