Promoting Legal and Sustainable
Supply Chains for Sustainable
Global Teak Markets
Dr Hwan-ok Ma
Consultant, International Tropical Timber Organization
Dr Tetra Yanuariadi, International Tropical Timber Organization
Prof. Yongyut Trisurat, Kasetsat University, Thailand
Dr P.K. Thulasidas, TEAKNET, Kerala, India

T2.29 Strengthening Teak Forest Management for
Sustainable Teakwood Supply Chains and Trade
Stockholm, Sweden, 23–29 June 2024

Teak and Sir Brandis
Teak (Tectona grandis Linn. f.) is one of the mostvaluable tropical hardwoods of the world“AMONG timbers, teak holds the place which
diamond maintains among precious stones andgold among metals”.
Sir Brandis• In 1858 became head of the imperial forest
administration of Myanmar.
• In 1864 became Inspector General of Forests in India
Sir Dietrich Brandis (1824 - 1907):
German botanist and forester
Father of tropical forestry
https://en.wikipedia.org/wiki/Dietrich_Brandis

During his 20 years, Brandis' work included determinationof teak volume, rate of harvest, forest protection plans
against pests and fire, and establishment of managed teakareas with appointed Conservators2

Kerala Calls for Action on Teak (2003)

International Conference on Quality Timber
Products of Teak from SFM (Peechi, India, 2-5December 2003)• regain the pre-eminence of teak in view of its sterling
properties;• reduce production cost and improve the quality ofteakwood and adjust to changing market requirements
and specifications;• meet the existing and emerging demand for teakwood atprices fair to the consumer and remunerative to theproducer;
3

Overview of Global Teakwood Supply
Natural teak forests in Myanmar, India, Laos andThailand:• 29 mil ha (2010) - 30.2 mill ha (2022)

Teak Resources
and MarketAssessment
2010

Planted teak forests are estimated to cover:• 4.35 - 6.89 mil ha in 70 countries (2010) –4.85 mil ha in 80 countries (2022)• 80% grew in Asia, 13% in Africa, 7% in Latin
America.
• Top 3 countries:
Global Teak
India with 1.69 mil ha (35 % of the total),
Resources andIndonesia with 1.27 mil ha (26 %) andMarket Assessment
Myanmar with 0.48 mil ha (10 %)2022

Demonstration Plots in Thailand: Teak Supply Chains
1. Mae Ka Silviculture

ITTO Project: “Enhancing Conservation and Sustainable Management ofTeak Forests and Legal and Sustainable Wood Supply Chains inthe Greater Mekong Sub-region” (PP-A/54-331)

2. Ngao Silviculture

3. Khunmae Kummae Teak Plantation(FIO/FSC)
4. Mr. Suchat’s Plantation

High quality seeds

FIO teak plantations:
43,000 ha (50%)

Propagation andsmallholder networking

Thai National Standard
TIS 14061: The Sustainable Forest
Plantation Management (2016)
TIS 2861: Chain of Custody
5. Smallholder teakStandard Forest- based Products
enterprise(2018)

SFM and minimize loss
Smallholder &silvicultural practices
RFD registration
Using ITTO’s C&I/CoC(2019)(August 2020 in Nan province, Thailand)Sustaining Teak Forests in Mekong Basin(Yangon, Myanmar in September 2019)•Enhancing the in-situ and ex-situ conservation of teak genetic resources through seed production areas and seed orchards toimprove the genetic base of populations and avoid genetic erosion; improving silvicultural aspects of teak plantations, from theselection of suitable sites to thinning and harvesting techniques.

•Promoting the engagement of smallholders and communities, including young people and women, and motivated local
restoration leaders•

Promoting value chains for teak timber and timber products through value-added product development, improved marketingand greater access to finance and long-term investment
https://www.itto.int/news/workshop_explores_contributions_of_mekong_teak_forests_to_sdgs/

6

Teak Value Chain Analysis of
Smallholders In Vietnam
Net return per cubic meter of final product forthe sawmills and manufacturers is higher thanthat of growers and traders (middlemen; 10%margin & sawmill; 10% margin)

Plantation
Demonstration site in Son La
province in March 2020

Markets/Consumers

Farmer housein Son La
province

Middle-mentransaction cost

Small sawmills

Sawmill inSon La
province

World Largest Teak Plantation inBrazil

Smallholder Teak Plantations in Indonesia• In Java, about 1.5 million farmers grow teak, managing over
400,000 ha of mixed cropping systems• High demand from furniture industry• Recently, local clone (JUN) is available as fast growing teakharvestable at 8 years

Brazil - TRC Agroflorestal Ltd;
40,0000 ha22

Innovative Teak Plantations in Cambodia

Teak Investments in Ghana

Innovative method for teakplantations shortens the rotation
length to 6-8 years from thetraditional 20 yearsIrrigation management;
rapid-growth Teakplantations (MAIs of 2035 m³/ha Thailand(with 8 m3/ha)

CambodiaInnovation afforestation
Fertigation•

Established in 2007; 9,895 ha planted withcommercial plantations; a certificate forsustainable forest management awarded by theFSC in 2010•

Benefit sharing mechanism:− The Forestry Commission shall receive 12%of the Standing Tree Value of commercial
thinnings and of the final harvest− Form Ghana Ltd. shall receive 80%,− the Landowner shall receive 6% and− the Local Community shall receive 2%.

Teak in Mekong for a Sustainable
FuturePromoting Teak Supply and Value
Chains: National Teak Forum (Lao PDRin Feb 2020)

6 sections, 27 chapters
360 pg.

4th World Teak
Conference 2022(Accra, Ghana)Forest Certification Programs: Sustainability• Forest certification is a way of informing consumers about thesustainability of the forests from which wood and other forest
products were produced. A tool for recognizing SFM• Two types of forest certification;
 Certification of forest management: Are forest being
sustainably managed?
 Certification of the chain of custody (CoC); How can we
responsibly source products in supply chains?
 Criteria and indicators provide practical assessments (FSC- 10principles and 70 criteria; PEFC-7 Criteria)• In 2023, the total area of forests certified by the globally recognized
FSC and PEFC forest certification programs reaches 451 million ha(160 M ha; FSC and 291 M ha; PEFC). It represents approximately
5% of the world's timber and non-timber production forests,
estimated at 1.15 billion ha (2020 FRA).

Module 3 – From legality to sustainability

Challenges ofCertification

High transaction
costs fordeveloping
countries andsmall producers
Limited Market
Recognition andRegulatory Issues

Examples of National
Forest Certification
Brazilian Forest Certification
Programs
Program (CERFLOR) (2005)

Lembaga Ekolabel Indonesia (LEI);
National Timber Legality Assurance Systema(SLVK)Malaysian Timber Certification
Council (MTCC) (1999)

Indian Forest and Wood
Certification Scheme (IFWCS)• governed by the Indian Forest Certification Council(IFCC) under Additional General of Forests; Indian
Institute of Forest Management (IIFM) as Scheme
Operating agency• Based on the Principles of Sustainable ForestManagement• Covers Forest Management, Trees outside Forest (TOF)/ Agroforestry, Chain of Custody• 8 Criteria & 69 Indicators in Indian Forest ManagementStandard• 5 Criteria & 22 Indicators for Trees Outside Forests/
Agroforestry
Source: IIFM

Timber Legality Assurance SystemsIndonesia SVLKGhana Legal Definition :Scope of Timber Legality
Verification – 7 Principles
1. Source of Timber
2. Timber Rights Allocation
3. Timber Harvesting Operations
4. Transportation
5. Processing
6. Trade
7. Fiscal Obligation

Courtesy from Arbi Valentinus

5million
haGlobal Plantation
Teak Market

1.4M

1M

geometric cbm/year(2,5 x Africa)

geometric cbm/year
Total African
Teak Traded

0.4M

geometric cbm/year

India: 94%

Rest of the World

Total Latin American
Teak Traded

Mainly Vietnam & China

Global Plantation Teak Market

6%

Main Uses of Teak in India (Doors & Door Frames (spiritual value ;80%, Furniture; 15%, Other; 5%)
Teak has been the most preferred timber in India owing to its favorable wood properties such as
Courtesy from Aron Global
excellent nail- holding capacity and resistance to attack by diseases and insect pests.
(2022)

India: Imports of Teak Log 2015-2019 (m3)
40000035000030000025000020000015000010000050000

0Cote d'IvoireGhana

Benin

Costa Rica

PanamaEcuadorBrazilMyanmar

Source: ITTO Timber Trade Portal

Growing Countries in Exporting Teak Wood
Growing

PanamaBrazil170k

SteadyGhana

280k@200,000haThailand: 100-400
cbm

Future Stars
GuatemalaMexicoNicaragua

220k

ColombiaEcuador

270k

80k

Benin

80k

Others220k

CostaRica

90k

ShrinkingCurrent rotation period has a 15-year cycle for 85-90% of
the plantations compared to traditional practices (30-60years cycle (>25 years - Not commercially viable).

Hanging In There
Tanzania
Togo
Ivory CoastNigeria

Courtesy from: Aron Global

International Timber Trade Policies (Due diligence)
US Lacey Act Amendment (2008)– 1900 US law that bans trafficking in illegal wildlife; Amended in 2008 to include plants andplant products, such as timber and paper– Required specification of timber species origin and scientific name of any species used

European Union Timber Regulation (EUTR) (2010)– Prohibition of illegally harvested timber and associated products in the EU market

European Union Deforestation Regulation (EUDR) (Dec 2024)– EUDR will apply from Dec 2024 and replace EUTR from Dec 2027
– Operators must ensure that the items entering the EU market are not from land that has been deforested or subject
to forest degradation since 31 December 2020
– Requires products to be certified through due diligence based on geolocation or based on satellite imagery and GPS
coordinates

Australia Illegal Logging Prohibition Act (2012)– Requires due diligence - an importer before importing regulated timber product should get evidence ofcompliance with the law of any foreign country; and evidence that the product has not been illegallyloggedJapan Clean Wood Act (2017)– Requires “Confirmation of Legality”, showing that registered companies that timber products theyhandle are harvested in compliance with the national regulations

Timber legality: A necessary first step in SFM• Efforts to ensure the legal origin of timber and trade in timber
products have brought many initiatives (information about raw
material origin; risk assessment; risk mitigation) –US Legacy Act;
EUTR-EUDR; Australia’s Illegal Logging Prohibition Act; Japan Clean
Wood Act• Timber legality is a necessary first step in ensuring SFM and theinitial step in the international timber trade control• Legal right to harvest and trade within legally gazetted boundaries• Compliance with legislation related to forest management, environment, labour
and welfare, health and safety• Compliance with legislation related to taxes and royalties• Compliance with requirements for trade and export procedures.

• Timber legality assurance system (FLEGT) development could bescaled up to meet EUDR requirements (deforestation anddegradation free; geolocation)

Legality, Certification and Trade
Legality and sustainability are a complex issue for many teakgrowing tropical countries• Improve the development and implementation of a competent monitoringsystem (a set of criteria, indicators, and verifiers) to demonstrate the legality andsustainability• The digitalization of forest management activities and cost-effective verification
tools are increasing important in tropical countries• Establishing transparent and traceable timber supply chains will provide teakgrowers more opportunities to participate in global markets while addressing
global environmental issues

Innovative certification systems that substantially reducetransaction costs for smallholder teak planters• The certification of smallholder teak plantations by local forestry authorities, asis being done under the Luang Prabang Teak Program in Lao PDR and Thailand
C&I certification for plantations (good examples)20

ITTO Work on
Legal & Sustainable Supply Chains (LSSC)
 ITTO Strategic Action Plan 2022-26
 Capacity building of LSSC:

 E-course on LSSC developed (https://lsscourse.com/) CITES Program; LSSC in Mekong, Guatemala, Panama, etc.
 Promotion of sustainable domestic consumption of wood
products in Thailand, Indonesia, Vietnam and Malaysia
 Wood identification programmes to identify illegal logs

Legal, sustainable timber supply andvalue chains are key nature-based
solutions to promote circular bioeconomy(ITTO ED, Sheam Satkuru, 2023)

Way
Forward

Teak – a bridge to the bio economy and thefuture; Plantation and natural teak forests arevital
A sustainable teak for a sustainable world:
Promotion of legal and sustainable supply chains