Part I: Record of Discussions

Summary of the Second Regional Seminar on Teak

Dr. Zakaria Ibrahim, Rapporteur

1. The Second Regional Seminar on Teak was held in Yangon, Myanmar, from 29 May to 3 June 1995 (See Annex 1 for Agenda and Timetable), under the co-sponsorship of the Myanmar Ministry of Forestry, the FAO Regional Office for Asia and the Pacific (RAP), and FAO Regional Projects, namely: Strengthening the Re-Afforestation Programme in Asia Region (STRAP) (GCP/RAS/142/JPN; the Forestry Research Support Programme for Asia and the Pacific (FORSPA) (RAS/134/ASB; and the Improved Productivity of Man-made Forests through Application of Technological Advances in Tree Breeding and Propagation (FORTIP) (RAS/91/004. The Seminar was attended by more than 70 participants and observers from 11 countries (Bhutan, China, India, Indonesia, Lao PDR, Malaysia, Myanmar, the Netherlands, Thailand, the United State of America and Vietnam), and forestry experts from the above mentioned FAO group, plus the ASEAN Forest Tree Seed Centre (AFTSC). The list of participants (45), excluding observers, is attached in Annex 2.

2. The Seminar was convened to discuss three major subject areas: 1) the management of natural teak forests; 2) the management of teak plantations; and 3) the trade and marketing of teak. Each subject was further discussed in the in-depth group discussions. After a two-day field visit, a proposal on teak networking (TEAKNET) in Asia-Pacific was presented and discussed.

3. The Seminar unanimously elected the following as the members of the Seminar Secretariat:

4. His Excellency Lt. General Chit Swe, Minister, Ministry of Forestry, Myanmar, officiated at the Seminar. In his welcoming speech, he expressed his gratitude to the FAO Regional Office and FAO Regional projects for choosing Myanmar, the home country of the best teak in the world, to host the Second Regional Seminar on Teak. He noted that teak has been a highly demanded tropical timber species; however, the supply of teak falls short as a result of increasing pressures on sustainable management of both natural and planted teak. In this aspect, the Minister urged that both the consumers and producers of teak should work together, and Myanmar will give its fullest support to regional and international cooperation.

5. Mr. A. W. Jalil, FAO Representative in Myanmar, in his speech expressed his concerns over the unprecedented environmental crisis (forest destruction) facing the developing countries in the Asia-Pacific region toward the end of the 20th century. The crisis takes form by the opening of forest areas for spontaneous and unplanned human settlement, marginal agriculture and excessive commercial exploitation, at an alarming rate of 3.9 million hectares per year in the Asia-Pacific Region (FAO estimate). He noted that the teak-bearing countries are not spared in facing this environmental crisis. He pleaded that every country must take possible measures to arrest the situation, especially in the efforts to conserve and use teak wisely. In his concluding remarks, he gave assurance that both FAO and UNDP have agreed to strengthen their cooperation with member countries in improving the living standard of the rural poor.

6. The Senior Programme Advisor of FORSPA, Dr. C.T.S Nair, in his speech specifically expressed his hopes and aspirations that the proposed teak networking (TEAKNET) in the Asia-Pacific region will be discussed and accepted during this Seminar by the member countries, and be launched in the near future for the benefit of teak all over the world.

7. In his introductory remarks, Mr. M. Kashio, Regional Forest Resources Officer (RAP), also reported the acceleration of the deforestation trend in the Region (from 2.0 million ha/yr during 1976-80 to 3.9 million ha/year during 1980-90), mainly because of the horizontal expansion of agricutural lands. Often, after a series of unsustainable land use practices, these lands are abandoned as wastelands. He praised some governments in the region that are actively pursuing programmes, with or without international aid, to rehabilitate these wastelands. In these precious efforts, he suggested that some indigenous species, such as teak, should be given due consideration and recognition in the long-term programme of rehabilitating such wastelands, beside using fast-growing species, such as Acacia spp. and Eucalyptus spp. Finally, he urged international donors to come forward to support such long-term rehabilitation programmes.

8. Three resource persons, two from Myanmar and one from Thailand, presented their papers on areas of management of natural teak forests, management of teak plantations, and teak trade and marketing.

9. The first resource paper on "Management Status of Natural Teak Forests " by Mr. Mehm Ko Ko Gyi and Dr. Kyaw Tint, touched on the natural distribution of teak, management systems, growth, logging techniques, yield production, teak trade and future yield. Many of the experiences presented in the paper were drawn from Myanmar, Thailand, Laos, and India. The authors were concerned about the lesser-known species that grew alongside teak. They felt that the harvesting of natural teak forests could be optimized in terms of log production and minimizing destruction to the environment, if the utilisation of these lesser-known species are developed through R&D.

10. The second resource paper, "Overview of Problems in Teak Plantation Establishment", presented by Dr. Apichart Kaosa-ard, stressed the factors which affect the success of teak planting programmes. They include site, seed supply, seed quality, management, and biological factors, such as pollinating insects. The author then outlined several points to be considered in creating quality teak plantations.

11. The third resource paper, "Trade and Marketing of Teak Wood and Products", delivered by U Sein Maung Wint, described the extent of world teak resources, wood production, products and trade in the Asia-Pacific region. The author related that the protectionist trade policies practiced by some teak importing countries affect the market economy of the teak trade to some extent. In conclusion, the author listed some major issues that need to be addressed in enhancing the world teak trade.

12. Seven satellite papers presented by the participants covered more specific subjects in the management of natural teak forests, plantations, and the trade and marketing of teak.

13. Several country reports on teak were circulated but not presented. They covered the substantive aspects of teak resources, management, silviculture, tree improvement, utilisation, and trade in respective countries.

14. A video film on the "Teak Forest of Myanmar" and one film on the "Teak Defoliator" in India were shown to the participants and delegates on 30 May 1995.

15. The host country organised a two-day field visit to Letpangon, Bondaung Reserve and Kabaung Extension Reserve during 31 May and 1 June to observe a teak clonal seed orchard, natural teak forests and natural teak regeneration, young and old teak plantations, teak tree girdling operations, the skidding of logs by elephants, a sawmill, and a wood handicrafts centre.

16. The Seminar participants were divided into three groups for in-depth group discussions on: 1) management of natural teak forests; 2) management of teak plantations; and 3) teak trade and marketing.

17. Serious discussions were held in meeting rooms and even continued during the two-day field visits. The discussions were crystallized into three group reports including recommendations. They were presented in the final plenary session for clarifications and comments. The final outcome is attached in the following section as the basis for future collaborative work in the Asia-Pacific region.

18. A special plenary session on the "Introduction of Asia-Pacific Network on Teak Research and Development (TEAKNET)" was convened on 3 June 1995. Dr. C.T.S. Nair proposed to the Seminar the re-formation of the TEAKNET. The current TEAKNET was first mooted by the late Dr. Y.S. Rao, former FAO Regional Forestry Officer in Bangkok and Senior Programme Advisor of FORSPA, during the First Regional Seminar on Teak held in China in March in 1991, but has since been quiet.

19. Dr. C.T.S Nair outlined the justifications, objectives, proposed activities, organizational structure, provisional work plan, and the estimated cost of TEAKNET. The Seminar unanimously supported and endorsed the re-formation of TEAKNET. Further deliberations took place for several amendments to the title of the network, objectives, proposed activities, structure of the network, provisional work plan, and estimated costs. Thus, the TEAKNET was reborn as the "TEAKNET (Asia-Pacific Region)".

20. As decided at the First Regional Seminar on Teak in China, China has hosted the Secretariat of TEAKNET. However, the participant from China nominated Myanmar to be the new host country of TEAKNET. The participants from India and Bhutan supported this proposal, and the Seminar unanimously endorsed it. This decision by the Seminar was accepted by Myanmar's delegation leader.

21. Indonesia was proposed as the venue for the Third Regional Seminar on Teak in 1998.

22. In the closing remarks, U Myat Thin, Director General, Planning and Statistics Department, Ministry of Forestry, stated that he was proud of the fact that the Second Regional Seminar on Teak was professionally conducted and that he was overwhelmed with the outcome of the Seminar. He thanked U Tin Hla, the Director General, Forestry Department of Myanmar, for his able leadership in chairing the Seminar, and commended the participants for their active participation. He also thanked FAO for having the confidence in Myanmar to host this important Seminar. The new TEAKNET being centred in Myanmar will certainly present Myanmar with a big challenge in ensuring that the network runs in accordance with the spirit of its formation. He promised that Myanmar will give its best to uphold the image of TEAKNET in the international arena.

23. On behalf of the organizing committee, Mr. M. Kashio of RAP thanked all the participants for making this Seminar a success. Specifically he thanked the Hon. Minister of the Ministry of Forestry, Myanmar, for his wise guidance and directions for making the Second Regional Seminar on Teak a reality. Special mentions were directed to U Tin Hla for his able leadership in chairing the Seminar, to U Mehm Ko Ko Gyi, and the members of the Seminar Secretariat for their excellent jobs. Special thanks were also due to U Myat Thin for efficient administrative support and to the JICA-Myanmar Forestry Project for effective logistic supports.

24. He also thanked his professional colleagues working in AFTSC, STRAP, FORSPA and FORTIP, the resource persons, the staff of the International Business Centre (IBC), and the staff of the Forestry Department, and the Myanma Timber Enterprise. Special thanks were also directed to the mass media of Myanmar for their generous reporting and coverage of the Seminar. Last but not least, he saluted the wise contributions made by the former Director Generals of the Forest Department of Myanmar.

25. On behalf of the Seminar participants, Mr.Vichien Sumantakul (Thailand), thanked the organizing committee and funding agencies for inviting and supporting the participants to the Seminar. He mentioned that the participants were honoured for being given the opportunity to contribute to this important Seminar. Finally, he wished TEAKNET everlasting success.

26. The Chairman, in his closing remarks, thanked the members of the Seminar Secretariat for their diligent work and support. He thanked all the participants for contributing professionally to making the Seminar very fruitful, resulting in the formation of TEAKNET. He thanked FAO and managers of the Regional Projects for their beneficial contributions.

27. Amendments to the draft proposal prepared by Dr. C.T.S. Nair on "Asia-Pacific Network on Teak Research and Development" were made. Major changes are as follows:

1) Title of Teak Networking: TEAKNET (Asia - Pacific Region)

2) Objectives: i) exchange of technology and information on sustainable management, silviculture, processing and promotion of teak; ii) exchange of genetic materials, plants, soils and timber samples together with standardisation of trials to facilitate international comparison; and iii) collaborative studies on critical areas that are of common interest to member countries.

3) Proposed activities: i) review major developments in the conservation, management and utilization of teak (through a seminar organised once in three years); ii) information dissemination through: publication of (a) a newsletter - quarterly or half yearly, and (b) case studies and reports on problems of wider interest, maintain and provide access to data based on (a) area, production, productivity and trade; (b) individuals and organizations involved in research and development of teak trade and marketing; iii) support and catalyze collaborative research on problems of common interest; iv) facilitate the exchange of genetic materials, plants, soils and timber samples for research purposes; v) facilitate the exchange of expertise and training among the countries/institutions who are part of the network; and vi) any other activities that are relevant to the main objectives of the network.

4) Structure of the Network: The seminar adopted Stage 3 of the proposed structure with the 'Steering Group' be changed to the 'Steering Committee', which is to be composed of a total of seven members with the Chairman of the Steering Committee being elected from among the members. The Steering Committee members are:

5) Provisional work plan and estimated cost: To be examined and proposed by the TEAKNET Steering Committee.

28. The Seminar ended at 4:15 pm on 3 June 1995 with a warm farewell to all participants by the Chairman.

Group reports

Group 1: Management of Natural Teak Forests

A. TERMS OF REFERENCE

1) To review the status of natural teak management:

- by country;

- by objectives; and

- etc.

2) To evaluate the value of natural teak forests in:

- gene conservation;

- tree breeding programmes;

- timber production; and

- etc.

3) To develop and suggest principles, policies, strategies, and programmes for sustainable management.

4) To examine key issues concerning management of natural teak stands and the scope for regional collaborations.

B. GROUP MEMBERS

C. OUTCOME

Review the status of natural teak management

1. Even though teak once covered a large percentage of India, Thailand and Myanmar and a small area in Laos, there is now a very restricted distribution in each of these countries except for Myanmar. Consequently, the management of natural teak forests has different objectives in Myanmar than in the other three countries. In Myanmar, the prime focus for teak timber production is from the natural forest and plantation teak is given a much lower priority. Logging of natural teak forests in Thailand and Laos has been banned and there is very little logged from natural forests in India. Consequently, in these three countries, teak production comes primarily from plantations.

The Group noted that:

• In Myanmar, natural teak forests have been managed for many years with sustained timber production as the primary objective. Plantation teak receives a much lower priority.
• It further noted that natural teak forests in India, Thailand and Laos comprise a small area and are of little importance for timber production.

2. The objectives of natural teak forest management are also different between the countries. As Myanmar relies heavily on its natural forests to supply the national demand for teak, objectives have been developed to take into account environmental and other values in an attempt to strike a balance between production and conservation. The loss of the natural teak forests in Thailand, India and Laos has led to a change in forest management objectives more towards conservation than timber production. Deforestation is a major problem in the region and the area of natural teak forest has been greatly reduced over the last 40 to 50 years. This trend must not be allowed to continue solely to satisfy requirements for additional 'new' areas for agriculture. It is necessary for agriculture to improve productivity on existing agricultural lands. Any expansion of agricultural lands should be carried out only on the areas where forests have already been cleared.

Thus, the Group noted that:

• In the case of Myanmar, the objectives of natural teak forest management include environmentally sustainable and efficient production, and the participation of local people in forestry.
• In India, Thailand and Laos, the objective of natural forest management is specifically for conservation.
• The area and quality of teak forests in Myanmar is declining through clearing for agriculture, illicit logging, and population pressure. Annual allowable cut is aimed to be within the calculated annual increment.

Thus, the Group recommended that:

• Because of the relatively small area of remaining teak forests, no further clearing of teak forests be undertaken in any of the four countries for agricultural or other purposes.
• A range of management inputs should be tested on natural teak forests in each country to assess their effects compared with the present management system.
• The factors which control the success of regeneration should be evaluated in the various forest types which carry teak.

Evaluate the value of natural teak forests

3. Natural forests in India and Thailand have been studied for provenance differences over the last 20 years, but Myanmar provenances have only been examined in one country trial. Two natural populations have been recognized in Thailand and three in India. How many populations will be found in Myanmar is unknown; thus, it is important that there be regional studies. Myanmar is the only county producing large teak logs from natural forest, which attracts a price advantage compared with smaller logs from plantations and which is likely to continue in the foreseeable future.

Thus, the Group recommended that:

• A regional cooperation should be sought to test the 'new' Myanmar provenances against other genetic material.
• Different ecotypes within the natural distribution of teak should be preserved in each of the four countries and be made available for regional studies. These studies should determine effects of various management systems on floristics, stand structure and soils.

Develop and suggest principles, policies, strategies, and programmes for sustainable management

4. There are some forest types in which natural regeneration of teak does not occur. In such forests sustainable teak management is not possible without inputs to provide the correct ecological conditions for germination and early growth.

• It is recommended that ecological studies commence on the factors which promote regeneration and early growth.

5. There are limited resources available in Myanmar to ensure sustainable management of the teak forests. Perhaps there may be some scope for World Heritage site listing of at least some parts of the teak forests to attract international assistance to provide the close monitoring necessary to ensure sustainability.

• It is recommended that World Heritage site listing of some of the teak forests be examined to assess the sustainability of various management systems.

Examine key issues concerning management of natural teak stands

6. One of the major problems with natural teak forests is a lack of funds to carry out the various operations considered necessary to achieve sustainability. These operations include assistance to regen-eration, tending of vines and competing vegetation near smaller trees, and the protection of forest areas from encroachment by local people. The latter problem requires attention to raising people's awareness and ensuring people's participation through training and public relations campaigns. In some countries, royalties are returned to the forestry authority to re-invest in the forest. Alternatively, a levy on export timber is collected to fund forestry activities.

• Because royalties on natural teak are so low, it is recommended that they be increased to a more realistic level to provide the funds so necessary for operations to be carried out to ensure sustainability.

7. Royalties for natural teak in Myanmar are exceptionally low. To provide funds for necessary operations for sustainability, it is recommended that royalties be increased to an adequate level for these activities.

8. Logging is presently carried out in a two-stage operation: the removal of teak at one time and other hardwood species at another time. This is inefficient, costly, and disruptive to regeneration. Low impact logging is being tested in the region and its applicability to Myanmar's forests should be evaluated.

Thus, the Group recommended that:

• The possibilities of integrating the logging of teak and other hardwood species should be examined to assess advantages and disadvantages.
• Information on low-impact logging should be collected and, if likely to be beneficial, applied to the teak forests.

9. Field staff of forestry departments have had very limited training. To improve flexibility in forest management practices, additional training is necessary.

• It is recommended that training of field staff be improved so that natural teak forest resources are managed with the best available inputs.

10. Elephant logging is the standard method used in the natural teak forests of Myanmar. In other countries it has been stopped for many years. It is believed that this technique is more economic and environmentally friendly than mechanical logging, but there is no proof of this. The total advantages and disadvantages of these two logging methods have not yet been studied.

• It is recommended that elephant logging be compared with mechanical methods in terms of both economic and environmental impacts.

Group 2: Management of Teak Plantations

A. TERMS OF REFERENCE

1) To review current status regarding the establishment of plantations with special reference to:

- site;

- planting materials; and

- tending operations.

2) To review plantation productivity in relation to:

- site factors;

- genetic improvement;

- cultural practices; and

- fertility of soil/declining productivity.

3) Examine future options for:

- clonal forestry; and

- mixed culture.

B. GROUP MEMBERS

C. OUTCOME

Review current status of plantations

10. The current status of teak plantation establishment in various countries in the region was reviewed in relation to site characteristics, planting materials used, and the tending operations practiced.

Site

11. It was noted that teak is predominantly planted within its natural range of distribution as well as in areas where similar climatic and edaphic conditions prevail. Plantation establishment is also undertaken in areas where the climate and edaphic factors are unsatisfactory, although only with high inputs such as fertilizers and irrigation.

Planting materials

12. In most countries, stump planting is widely practiced. However, in Indonesia, plantations are mostly raised through direct dibbling of seeds. In Thailand, a combination of stumps, seedlings and tissue-cultured plants is in vogue.

13. In most countries, seeds are of commercial origin except in Indonesia, India, Malaysia and Thailand, where a fair proportion of planting material is improved seed produced in seed production areas and clonal seed orchards. The group noted that although the germination percentage of seed is 25-80% using conventional pre-treatment methods, it was found in most cases that only one-third of the germinants attain optimum plantable size. This is mainly due to lack of standard grading and certification of seeds, stumps, etc., which in most countries is totally lacking.

Establishment practices

14. Traditionally in the majority of the countries, plantations are established through the taungya system. In some parts of India, however, that has been discontinued due to site degradation, whereas in other countries this system has not been implemented at all. In some countries, such as Thailand, there is a trend to establish plantations after intensive site preparation. There is a wide range of initial spacing in plantations, varying from 2 (2 m to 3 (6 m in the government sector, to spacings of 1 (1 m practiced by the private sector.

Tending operations

15. Conventional tending operations are carried out in all countries, with the frequency and intensity varying between countries. In the case of thinning, various schedules are followed either arbitrarily or depending upon site conditions. Pruning of trees is not generally practiced except in the private sector.

Growth rate and rotation

16. The mean annual increment (MAI) of trees in nature ranges from 2 m³ to 8 m³. It was noted that in the case of plantations, including those with high inputs such as fertilizers and irrigation, there is a substantial increase in the MAI.

17. A wide range of rotations exists, varying from 20 years in high input private sector plantations to 40 to 80 years in the state sector.

Review plantation productivity in relation to:

Site factors

18. Although methods exist for assessing site quality or site indexes in several countries, it does not form a real basis for comparability. At the other extreme, in some countries, no method of site quality determination exists.

Genetic improvements

19. The countries in the region are on different rungs of the ladder as far as tree improvement activities are concerned. Thailand and India have fairly well-organised tree improvement programmes, whereas others are in the early stages of initiating the improvement activities.

Cultural practices

20. Except in the private sector, culture practices such as mulching, soil working, fertilization and irrigation are either absent or minimal.

Soil fertility

21. There is a lack of sufficient knowledge regarding productivity decline in plantations over time. The Indian experience reveals site deterioration within and between rotations. There is a lack of information regarding second rotation crops in many countries.

Pests and diseases

22. Defoliation is a common problem in the region and is detrimental to tree growth. Loranthus and stem borers also cause damage in plantations. Diseases in nurseries affect production of planting stock.

Examine future options:

Clonal forestry

23. There is a growing interest in all teak-growing countries to embark on large-scale clonal forestry programmes using both rooted cuttings and tissue-cultured plants. The technology for clonal propagation is well developed in the region, but its application in large-scale plantation programmes needs careful study owing to the high cost of production of plantlets, the lack of proper evaluation of clones through multilocational trials, and also the danger of narrowing the genetic base.

Mixed culture

24. There is a consensus in favor of more mixed plantations. However, there is no documented information about mixed plantations to date.

Recommendations

25. To increase and improve the productivity of teak plantations in the Asia-Pacific Region, the group recommended the following:

• All countries should intensify efforts to improve the quality of planting materials through genetics and tree improvement activities.
• Provision should be made available for countries to exchange germ plasm for future breeding and improvement works.
• In order to conserve genetic materials, some in-situ and ex-situ conservation programs should be instituted in member countries.
• Mechanisms should be made available for the transfer of technologies pertaining to micro- and macro-propagation to support clonal forestry programs.
• Each country should monitor pests and disease problems and prescribe measures to control them.
• Studies on site productivity decline in each country should be initiated in order to obtain reliable growth estimates for subsequent rotations.
• Studies on wood quality in relation to site should be conducted to ensure the uniformity and improvement of wood quality.
• Site selection guidelines should be made available, through research, so that the potential of each site can be maximized.
• Research in seed and seed technology should be intensified to tackle problems of low seed production and low germination capacity.
• Studies on soil erosion and its control measures should be conducted to reduce the impacts of soil degradation as the result of forest plantation practices.
• Studies on inter-cropping teak with cash crops should be renewed and intensified in order to ensure intermittent returns to teak growers. In addition, research on mixed culture be intensified to find suitable combinations of forest tree crops with teak.
• Financial incentives to private institutions should be considered and proposed to governments and donor agencies to attract more participation from the private sector in planting teak.

Group 3: Teak Trade and Marketing

A. TERMS OF REFERENCE

1) To review the current status of the teak trade:

- structure and functions;

- groups involved;

- taxes and tariffs;

- constraints; and

- trade facilitation measures.

2) To identify the requirements of forest industries to improve the processing of teak wood:

- saw milling;

- plywood;

- furniture; and

- etc.

3) To identify the nature of demand and the specifications of different end users:

- types of markets;

- specifications; and

- quality control/standardization.

4) To assess long term trends in trade and the implications for the conservation and management of teak stands.

B. GROUP MEMBERS

C. OUTCOME

Review the current status of the teak trade

Structure and functions

26. The group identified three categories of structure and function in the Asia-Pacific Region. Myanmar is a supplier of raw logs and sawn wood to the global market. Indonesia and Thailand supply raw materials only to local manufacturers, who process some products for local distribution but more for the export market. With very large domestic markets and primarily imported raw materials, India's production goes mostly to the local market.

Groups Involved

27. In view of the variations in teak trading and channeling practices adopted by the producing countries of the region, it was identified that five main groups are involved in the mechanism of teak trade and marketing: 1) producers/exporters; 2) agent/representative officers; 3) importers/manufacturers; 4) wholesalers/retailers; and 5) consumers/end users.

Taxes and Tariffs

28. The group considered that the interaction of the export policies of the producing countries and the import policies of the consuming countries through various forms of taxes and tariff systems have a certain degree of impact on the teak trade.

Constraints

29. The group recognized that movements by environmental groups will serve as major constraint, and thus a dialogue between the producers and environmental groups is recommended. Another constraint is the shortage of teak logs and sawn wood supply to the secondary and tertiary industries, such as veneer mills, joinery works, furniture factories, and the boat building industry. The third constraint is the lack of efficient logistics and sufficient infrastructure for some producing nations. The group recommended that in order to generate more local employment and more manufacture of diversified value-added teak products, teak-producing countries should give priority to domestic mills in the supply of raw logs.

Trade facilitation measures

30. The group sees trade facilitation measures falling into two categories. First, local facilitation measures which include logistics and procedures, which should both be addressed. Trade promotion and marketing to increase the perception of value and quality are also essential. Certification schemes should be standardized and easing of tariff and non-tariff barriers is recommended.

Identify the requirements of forest industries to improve the processing of teak wood

Saw milling/Plywood/Furniture

31. The overall criteria is to minimize wastage and maximize utilization of the wood. The following areas are recommended to improve the processing of teak wood:

• Use of appropriate technology;
• Setting up education and training systems for each particular industry;
• Providing incentives and proper motivation; and
• Research and development.

Identify the nature of demand and the specifications of different end users

Types of markets

32. The group agrees that the market can be divided into two groups: economic segmentation and product segmentation. Economic segmentation reflects buying habits and affordability determined by economic factors. Product segmentation reflects the various needs of the end user, such as flooring, boat building, and furniture manufacture.

Specifications

33. Specifications for the market segments in the teak industry vary to such a great degree that the group finds it difficult to narrow the scope in so short a time.

Quality Control/Standardization

34. The group feels the good reputation of teak is at stake due to the influx of young plantation-grown teak. It recommends that public awareness should be enhanced through dissemination of information backed up by a proper grading certification. Surveying the distributors and end users as to their preference between the metric and imperial measurement systems should be considered.

Assess the long-term trends in trade and their implications on conservation and management of teak stands

35. Some members of the group felt that teak was going out of fashion in a few countries where lighter colored wood is preferred. Others insist teak, with its unique durable qualities, is still indispensable to some industries, especially the pleasure boat builders. Nevertheless, the group agreed that, at present, the demand for teak is much higher than the supply, which may result in pressure for increased harvesting to meet the demand and higher prices. There is a breaking point at which teak will price itself out of the market. The owners of teak resources should be fully aware of these implications. The group recommends that sustainable management systems be strictly followed. These systems should be acceptable ecologically, socially and economically.