Trade and Marketing

Trade and marketing of teak wood and products - U Sein Maung Wint

U Sein Maung Wint
Special Adviser, Ministry of Forestry, Yangon.

Teak logs in a log yard in Myanmar

Sawing a big teak in a sawmill of the Myanmar Timber Enterprise

ABSTRACT

Teak is recognised as a most valuable premium wood. Myanmar is regarded as the home of teak and international marketing is known from the 18th century. Of the four countries of natural grown teak only Myanmar and Indonesia continue exports; India and Thailand now import teak. There are some 19 million ha of natural teak forest; the average annual Myanmar teak production since 1918 is 569,643 m³. Major plantation resources of 1.6 million ha are: Indonesia 675,000 ha; India 276,000 ha; Myanmar 214,000 ha; Thailand 170,000 ha; Sri Lanka 70,000 ha; Ivory Coast 21,000 ha; Nigeria 21,000 ha; the Caribbean 14,000 ha. Of the world teak resource of 20.6 million ha some 99% occurs in Asia but trade from natural forests is declining. Indian teak production was some 250,000 m³ in 1970 but population increases now require (1990) 1 million m³/yr (it is doubtful that India will ever export teak in log or lumber form again; Indonesian teak production from 1980 was 750,000 m³/yr; this is mostly consumed in country as semi and finished products; Myanmar produces some 656,000 m³/yr of which - 309,000 m³ of log and 42,692 m³ sawn or veneered, is exported; Thailand imported 145,000 m³/yr from Myanmar (1989-1994) but this trade has ceased. African logs are reported exported to India and Caribbean, logs and conversions to Canada. Log prices from Myanmar (1994) are: Second Quality US$3,090/m³ and down to Sawing Grade 3, US$651/m³. Average 1992 prices/m³ for teak sawnwood are: Thailand, board, plank US$1,273, and US$1,634; Myanmar, board, plank, deck, US$1,643, US$1,482, and US$1,993 respectively. The future market is large and there is no problem of selling teak logs or lumber. Market demand is seen in: boat building; teak furniture including garden furniture; flooring and moulding. Attention is drawn to meeting buyer specifications; developing international grading rules; introduction of modern technology and minimisation of waste and conforming to international environmental issues.

Key words: Tectona grandis, Myanmar, natural forest, plantation, exports, trade, market.

INTRODUCTION

Teak (Tectona grandis Linn. F.) has been recognized as a most valuable premium wood in the world's timber trade. Its soft golden colour, fine grain and durability are the most fascinating features of the wood.

Historically Myanmar is known to be the home of teak. Trade and marketing of teak dates back to the Konbaung dynasty in 1808 when the excellent qualities of teak wood became famous among ship builders of the western countries. It was recorded that Arab traders built ships with teak on the Taninthayi coasts in the 18^th century and sea going ships of the Portuguese, French and English traders docked there for repair in those days (Chein Hoe, 1969). Since then, the quality of teak has been appreciated more and more around the world and foresters have directed efforts towards the better conservation of natural teak forests, and the creation of teak plantations, in order to extend and expand teak resources.

MAJOR TEAK RESOURCES OF THE WORLD

Teak is indigenous to only 4 countries in the world, i.e. India, Lao, Myanmar and Thailand. The recorded latitudinal limits of its natural range are between 25°30'N to 10°00'N (Troup, 1921; Kermode, 1951; Letournex, 1957). Teak also occurs on a large area of about 1 million ha on the island of Java and it is said to be introduced by Hindu merchants in the beginning of the 14^th century (Perum Perhutani, 1993). As the species is well established in Indonesia, we may consider that the southern latitudinal limit of teak is between 5° and 9°S.

With the progress of teak plantations on experimental and commercial scale in many countries of Asia, Africa and tropical America, the area of man-made teak forest is increasing year by year and it is becoming important to take these plantations into account as part of the teak resource. In fact, some countries are already producing teak in the form of final yield and thinnings from teak plantations. An overview of the major teak resources, based on available documents and information collected, follows.

< ASIA >

Bangladesh

Teak is not indigenous to Bangladesh. However, the species was introduced from Myanmar at the Kaptai forests of the Chittagong Hill Tracts in 1871. As the growth of the species was encouraging, teak has been the main long rotation species for forest plantations in Bangladesh. Since 1910, over 62,700 ha of teak plantations have been established. However, older teak plantations (1912-1935) were clear felled extensively in the 1950s for the construction of Karnifuli hydroelectric dam (Ratan Lal Banik, 1993). It was reported that most teak plantations of Bangladesh belong to Site Class III and the estimated yield at 60 years is 130 m³/ha (Rahman and Mustonaja, 1978).

China

The Research Institute of Tropical Forestry, Chinese Academy of Forestry (Anon., 1993) notes there are about 9,000 ha of teak in seven southern provinces of China, occupying an area between 18°30' and 26°35'N latitude. Cultivation of teak goes back to the beginning of the present century. Southern Yunnan Province has the largest teak growing area and it has teak trees up to 120 cm (= 48") diameter at breast height (dbh). Teak is distributed mainly over three climate zones of China as reported by the Chinese Academy of Forestry. It includes the middle tropics, the edge tropics and the south sub-tropics. It is stated that teak growing in those zones is no different from that growing in the corresponding climate zones of its origin such as India and Myanmar, mainly because of adequate rainfall and distinctive dry and humid seasons (Anon., 1993). It is considered that there is future potential for the expansion of teak resource areas in the southern provinces of China.

India

The natural teak forests of India are confined to Peninsular India below 24°N latitude. The species occurs mostly in three types of forests, namely dry teak forests, semi-moist teak forests and moist teak forests (Kumaravelu, 1993). India has a long history of teak. At one time, teak from the central States was well known as CP Teak in the international market. However, due to excessive demand and exploitation in the last four decades, India is now considered as a timber deficit country and it has to import both teak and other hardwoods to meet the demand of its growing population and its wood based industries. More than 276,000 ha of teak plantations have been established in India since 1910.

Indonesia

Teak forests in Indonesia stand as one of the major teak resources of the world. The teak forests are found mainly on the Java Island, covering an area of about 1 million ha. According to the old literature, these forests were planted by the Hindu merchants in the beginning of the 14^th century (Perum Perhutani, 1993). Because of the population increase in Java and subsequent increase in demand for agricultural lands, the teak forest of Java has been decreasing while the demand for wood has been increasing continuously.

At present, teak plantation forests in Indonesia are estimated to be about 675,000 ha. About 18 % of these productive teak plantations are 40 years and over, producing teak wood for the domestic wood based industry and for export. Teak plantations are being established at the rate of about 10,000 ha/year as a part of the reforestation programme (Perum Perhutan, 1993).

Lao PDR

In Lao PDR, teak occurs naturally in the north west region as a continuation of the teak forests in Myanmar and Thailand. Teak forests covered an area of 30,000 ha previously. Due to the intensified shifting cultivation practice and associated forest fires, the area of natural teak forest has been reduced to about 16,000 ha. Teak plantations were established since 1942 and so far, more than 5,000 ha of teak has been planted throughout the country (Vinh Phengdouang, 1993)

Myanmar

Teak is indigenous to Myanmar and it occurs all over the country within the latitudinal limits of 10°N and 25°30'N. The species grows in tropical semi-evergreen forests, mixed deciduous forests and deciduous dipterocarp forests. Natural teak forests, extending over 165,000 km² (16.5 million ha), are formed into Teak Selection Working Circles and managed in accordance with the prescriptions laid down in long term Working Plans approved for each Forest Division (now Forest District).

Table 1. Production of teak in Myanmar

NA = not available; Hoppus ton = 1.8024 m³

Under the Myanmar Selection System (MSS), Annual Allowable Cut (AAC) for teak is limited to about 179,000 trees of prescribed girth limit and above. In terms of volume, it is around 600,000 m³. The girth limit at breast height (1.4 m) is 2.3 m in good teak forests and 2.0 m in poor (dry) teak forests. Extraction of teak is carried out on a felling cycle of 30 years.

A study on the production of teak in Myanmar over the past seven decades from 1919 to 1989 reported in Table 1 indicates that Myanmar has been able to keep up with the sustainable management of its natural teak resources. The average annual production was 316,000 hoppus tons or 569,600 m³ approximately (Gyi, 1995).

Commercial plantations are being established to supplement timber production from natural forest resources and to ensure sustained supply of commercial timbers for local use and for export on a long term basis. High value species as teak, Padauk (Pterocarpus macrocarpus) and Pyinkado (Xylia dolabriformis) are utilised in these. Average annual planting rate of teak alone is about 12,000 ha over the decade, 1984 to 1993.

The total area of teak plantations in Myanmar covers 214,189 ha, including 36,930 ha planted before World War II and 177,259 ha planted after Independence in 1948. Details are provided in Table 2.

Table 2. Area of teak plantations in Myanmar

Source: Forest Department, Myanmar

Philippines

Teak is exotic to the Philippines. Historically, it is reported that teak was introduced by Moros before the Spanish occupation. The first reforestation area with teak in Cebu and Mt. Makiling dates back to 1910. In later years, teak was considered as a priority species in the establishment of forest plantations. The total area planted during 1911 to 1990 is about 21,550 ha.

Sri Lanka

Teak is exotic to Sri Lanka and it is reported to have been introduced by the Dutch in the 17^th century. The first planting of teak by the Forestry Department in Sri Lanka dates back to 1872. Since then teak has been planted as a main species under the dry zone reforestation programme. At present, there are about 70,000 ha of teak plantations of various age classes. Teak is neither imported into nor exported from Sri Lanka. Products of the teak plantations are used locally and overage annual production of teak during the period 1986 to 1990 was some 7,500 m³ (Maddugoda, 1993).

Thailand

Teak is indigenous to Thailand. It occurs within the range of 16° to 21°N latitude and 97° to 101°E longitude. Although the teak distribution region covers an area of 170,000 km² (17.0 million ha), the area of remaining teak forest within the region is only about 25,000 km² (2.5 million ha) as classified in 1982 (Apichart Kaosa-ard, 1993). These teak forests are confined to the mixed deciduous forest of northern Thailand. The teak forests were managed since 1939 under a Selection System with the prescribed girth limit (gbh) of 213 cm and a felling cycle of 30 years. However, all teak logging in the natural forests has been banned and concessions were terminated in 1983; only improvement felling and thinning of the plantations is permitted.

The first teak plantation in Thailand was established in 1906. A large scale teak planting programme was initiated in 1945 and commercial teak plantations were established extensively, mainly in northern Thailand. There were about 170,000 ha of teak plantations in Thailand by the end of 1990. These belong to three major organizations: the Royal Forest Department (RFD), the Forest Industry Organization (FIO) and the Thai Plywood Company (TPC) as shown in Table 3. While the extraction of teak from the natural forests is banned in Thailand, it may be expected that plantations will form a major teak resource in the country under the increased plantation programme and with the passage of time.

Table 3. Teak plantations in Thailand by organization

Vietnam

Teak is exotic to Vietnam. The species was planted on trial in many provinces since 1939-40. It is noted that there are about 500 ha of teak plantations in the whole country, mostly concentrated in the eastern region of south Vietnam. It is understood that growth of these teak plantations is, in general, encouraging and that the Government is giving full support to promote large scale teak planting. However, teak in Vietnam is still in the stage of research and development. The Forest Science Institute of Vietnam is already achieving some progress in the techniques of planting teak under Vietnamese conditions and it may be expected that commercial teak plantations will be established, if and when many constraints are solved (Nyuyen Quang Khai, 1993).

< AFRICA >

Teak is not indigenous to Africa. However, teak has been selected as the main exotic species for plantation establishment in many countries and has been used in some 47 % of the plantation areas (Lanly, 1982; White, 1991). It has been widely planted in Ivory Coast, Tanzania, Togo, Nigeria, Ghana and Sudan. In summary, it is apparent that the area of teak resources, in the form of enrichment plantations or conversion plantations, is increasing in the humid tropics of Africa due to: its rapid growth, relatively ease of planting and its value in both the domestic and global market (Dupuy and Mille, 1993). Only limited information is available with regard to the extent and year of plantations in these countries.

Ivory Coast

Teak plantation areas in Ivory Coast covered 21,000 ha in 1991 and it is proceeding with its planting programme at the rate of 600 ha per year (White, 1991).

Tanzania

Teak was introduced into Tanzania by the Germans in 1898 with seed from India, Myanmar, Indonesia and Thailand. Growth is understood to be good with the mean annual increment (MAI) of 4.3m³/ha at the age of 42 years (Streets, 1962; White, 1991). The total area planted up to 1990 is about 5,000 ha. Teak from Tanzania is already penetrating the European and Indian markets at very competitive price (pers. comm. Dr. T. Hedegart, 1995).

Togo

Teak was introduced into Togo in 1905 and total area of teak plantation in 1956 was 4,500 ha. It has proceeded with a planting rate of 650 ha/year (White, 1991).

Nigeria

Large scale plantations of some indigenous and exotic tree species are being established in Nigeria in order to meet the increasing demand for wood. Teak is regarded as a very suitable species for the rapid production of large volumes of timber, fuelwood and poles of uniform and desirable quality. A wide range of teak plantations is reported to be growing well in the Gambari forest reserve of dry lowland rain forest area. It is located between latitudes 7°05' and 7°14'N, and longitudes 3°42' and 3°54'E. A study on the teak yield showed that teak plantations established by taungya system in Nigeria maintain a fairly linear increment pattern during the first 25 years, averaging a volume MAI of 27 m³/ha (Akindele, 1989). This emphasizes the fact that teak is growing extremely fast in the dry lowland rain forest area of Nigeria. The total area of teak plantation by the end of 1980 was about 21,300 ha.

< TROPICAL AMERICA >

Information on teak plantation resources, either pure or mixed species, is very limited. It is noted that many Latin American countries face problems of deforestation due to population increase, clearance of forest for agriculture and mining, and a lack of economic value placed on forest stands. It is estimated by FAO that deforestation is taking place at the rate of about 7.3 million ha/year in 32 countries examined (Lanly, 1993). However, despite the multiplicity of technical, financial and land ownership problems, some countries are forging ahead with reforestation programmes in order to provide timber, roundwood or fuelwood. Teak, mahogany (Swietenia macrophylla), Cedrela odorata, Caribbean pines and Eucalyptus spp. are some of the popular species selected for plantation establishment.

Teak has been a forest plantation crop for many years in countries of tropical America. In fact, teak seed from Myanmar was introduced into Trinidad in 1913 (Streets, 1962) and a significant area of teak, covering 9,710 ha, had been established in Trinidad up to 1980. The area planted with teak in Central America and in several islands of the Caribbean covers about 14,000 ha (Keogh, 1980). In Ecuador, the wood processing industries which are faced with wood supply problems, have decided to prepare for the future by opting for reforestation in preference to natural forest management which has proved to be in conflict with agriculture. Countries now aim toward effective reforestation with plantations including teak.

< GLOBAL OVERVIEW >

Based on the available information, it is estimated that there is a total of over 19 million ha of natural teak forests and over 1.6 million ha of teak plantations throughout the world. Details of the major teak resources are provided in Table 4. Salient points identified in teak resources are:

• Of some 20.6 million ha of teak resources in the world, 20.5 million ha or 99 % occurs in the Asia.
• Teak resources in Indonesia and Myanmar are expanding rapidly due to the large scale plantation programmes of around 10,000 ha/year in both countries. Indonesia has some 45 % of the total Asian teak plantation area.
• Of approximately 19 million ha of natural teak forests, 16.5 million ha or 86.7 % occurs in Myanmar. This indicates that Myanmar is likely to continue its dominant role in the production of naturally grown teak wood in the future under its century old sustainable management system.
• Thailand also holds a large area of natural teak forests, covering about 2.5 million ha or 13 % of the total resources. However, logging from its natural teak forests is totally banned.
• The teak plantation area in Africa is also expanding rapidly, due to favourable growth conditions in the humid tropical regions with MAI varying from 4.3 to 27 m³/ha/year. It is likely to increase in the future on account of its access to the Europe and India markets, and growing domestic demand.
• The area of teak resources in tropical America is not likely to expand rapidly due to many socio-economic and land ownership problems as well as its preference to select high value local indigenous species and other fast growing exotic species for its plantation programmes.
• The global teak resource on the whole is likely to expand in the future, provided appropriate cultural treatments, effective protection and management systems are applied to both the natural teak forests and the plantations on long term sustainable basis.

Table 4. Major teak resources of the world (Unit: ha)

PRODUCTION AND TRADE

Demand for teak is universal and almost unlimited. Teak enjoys a world wide reputation. The timber is attractive with its golden color and texture. It is durable, easy to work, termite resistant, neither light nor heavy in weight and proven to be suitable for every conceivable form of end use. Teak wood lasts for hundreds of years in ship building and construction. Products of teak include:

• Sawn timber for construction;
• Veneer and plywood;
• Moulding;
• Strip and block flooring;
• Furniture components;
• Solid doors and flush doors;
• Door and window frames;
• Laminated boards and panels;
• Carved articles for decoration;
• Household utensils and kitchenware.

In view of its broad spectrum of uses, demand is unlimited, but supply is extremely limited in the vast market. Statistics showing the annual production and trade flows are available for some countries only. A brief overview of the situation is provided below:

India

The total recorded output of timber of all species from India's forest has declined drastically from about 20 million m³/year during the early 1970s to about 6 million m³/year in the late 1980s. The production of teak logs is partly made from natural forest and partly from the plantations. About 88 % is State owned and 12 % privately owned. Up to date production figures are very difficult to obtain. Teak log production, however, was about 250,000 m³ in 1970. With over 800 million people and growing economy at about 5 % annually, India imported about 1 million m³ of tropical hardwood in 1990.

India's wood based industry is dominated by about 25,000 sawmills, 50 plywood mills and 22 enterprises dealing with veneers and wood based panels. The decorative veneer industry has to depend heavily on rosewood and teak. Because of a large local demand, it is unlikely that India will ever again export teak in log or lumber form.

Indonesia

Production of teak logs is from plantations only. Final felling of about 5,000 ha/year of mature stands takes place with an average yield of 125 m³/ha. Total production was about 600,000 m³ in 1980 and about 750,000 m³/year since 1991 ( Perum Perhutani, 1993). Export of teak logs was stopped in 1978 and the export tax on teak sawn timber was increased in 1989 to such an extent of around US$1000/m³ that its export has virtually stopped. As a result, teak processing by several sophisticated manufacturing enterprises has increased rapidly.

In 1992, Indonesia exported 896,000 m³ of veneers worth about US$5 million and 3,739,000 m³ of plywood worth about US$1,289 million to Japan and USA. This includes all species and separate data for teak is not available (ITTO, 1993). Similarly, wooden furniture worth about US$14 million and moldings worth about US$145 million was exported in 1988 (Roszehan, 1990). Though full information on export of teak products is not available readily, it does indicate that teak wood produced in Indonesia is mainly consumed by local industry, and is being exported in the form of semi-finished and finished products.

Lao PDR

Lao had been producing about 10,000 m³/year of teak log which was mainly exported to Thailand. However, since 1989 teak felling was prohibited by the Ministry of Agriculture and Forestry. At present, teak is being harvested only in the form of collection of old logs in the forest from past felling and from shifting cultivation areas. The average annual production is about 500 m³ only (Vinh Phengdouang, 1993).

Myanmar

The Union of Myanmar is well known as the home of natural teak. Annual potential yield is around 0.6 million m³ and average production during the period 1989-90 to 1993-94 was around 656,000 m³ as shown in Table 5.

Table 5. Production of teak

Source: Ministry of National Planning and Economic Development, 1994:
Review of the Financial, Economic and Social Conditions for 1994-95;
FY = Financial Year

At present, Myanmar is virtually the only country which still exports natural teak in the form of logs and sawn timber. During the period 1989-90 to 1993-94, Myanmar exported annually an average of about 310,000 m³ of logs and 42,700 m³ of conversions as shown in Table 6.

Table 6. Export of teak logs and conversions from Myanmar

(Value: Kyat in 1,000)

Source: Myanmar Timber Enterprise. 1 Hoppus ton = 1.8024 m³;

50 cubic feet = 1.4159 m³; Kyat 6.00 = US$ 1.00 approx; FY = financial year

The teak timber export extends to about 30 countries around the world. It includes People's Republic of China, Hong Kong, India, Japan, Republic of Korea, Malaysia, Maldives, Pakistan, Singapore, Sri Lanka, Thailand in the Asia region; Bahrain, Dubai, Iraq, Kuwait, Saudi Arabia in Middle East; Belgium, Denmark, France, Federal Republic of Germany, Italy, Netherlands, Norway, Sweden, Switzerland in northwest Europe; and Mauritius in Africa. The major buyers, in the order of trade value for 1992-93, came from Thailand, India, Hong Kong, Singapore, Germany, Japan and Netherlands (CSO, 1994). Apart from teak log and sawn timber, Myanmar has been exporting other teak products as teak veneer, plywood, furniture and parquet flooring within the limited capacity of its wood-based industries. In the 1993-94 financial year, the total value of these products amounted to about Kyat 10.5 million (approximately US$1.75 million).

The Myanmar Timber Enterprise (MTE) is a state owned organization which holds a monopoly over the extraction, milling and marketing of teak. The MTE operates nine teak sawmills with the total capacity of 192,200 hoppus tons (approximately 107,000 m³) of teak round logs per year or about 82,000 tons output of teak sawn timber. It also operates five plywood mills and five furniture factories which produce teak furniture, parquet blocks and finger-jointed timber for export. Recently, another parquet factory and a moulding factory were constructed to manufacture more value added products.

The Ministry of Forestry also gives full support to joint ventures and the private sector in the expansion and development of wood-based industries under the market oriented economic policy of the Government of Myanmar. It is beginning to receive good response from both local and foreign entrepreneurs of industrialized countries, such as France, Italy, Japan and Singapore, in the manufacture of solid doors, flooring strips and high quality furniture.

In summary, it is apparent that the supply of teak logs and sawn timber from Myanmar to the global market will more or less continue in the foreseeable future, until adequate numbers of modern wood-based industries are established to absorb the teak logs cut annually, and to manufacture the various forms of high quality teak wood products demanded by the international market.

Thailand

Logging of teak from the natural forests has been banned in Thailand since 1983. However, a significant volume of teak wood has been produced from the plantations, on the average of around 43,000 m³/year during the 5-year period 1985-1989 as shown in Table 7.

Table 7. Teak plantation production in Thailand

Source: Forest Statistics of Thailand 1981-89, Planning Division, Royal Forest Department.

Thailand has a formidable wood processing facility. It includes 588 sawmills, 34 veneer mills and nearly 3,000 wood working enterprises. Some of the largest furniture factories in the region producing quality furniture with teak wood are located in Thailand. A study on intra-regional timber trade flow in the Asia-Pacific region indicated that Thailand has exported wooden furniture at the value of about US$ 120 million in 1988 (Roszehan, 1990).

In order to supply raw material for the local wood-based industries and to meet the domestic demand, it has imported an average of about 2 million m³/year of logs and 1.7 million m³/year of sawn timber including teak, during the last 5-year period 1990-1994 (ITTO, 1994). Table 8 refers.

Table 8. Import of logs and sawn timber by Thailand

(Unit: 1,000 m³)

Under the border trade agreements between Thailand and Myanmar, Thailand imported a total of about 0.7 million m³ of teak logs (average: around 145,000 m³/year) during the 5-year period 1989- 1993. The total value was about Kyat 577 million (approx. US$ 96 million). The border trade of teak, however, ceased on 31 December 1993 (Shwe Baw, 1995).

Other countries

Specific information on trading of teak wood by commodity is rather scanty. It is known that huge shipments of plantation grown teak logs from Africa were exported to India recently. On account of these arrivals, some regular Indian buyers of Myanmar teak were noticeably absent during the recent tender sales sessions held by the Myanmar Timber Enterprise in January and February 1995. It is also known that plantation grown teak logs and conversions were exported by Trinidad to Canada recently. Reliable figures are scarce as many countries do not have separate export/import statistics for teak.

Conclusions

This overview of the global trade of teak indicates that at present, Myanmar still monopolises the export trade of mature naturally grown teak logs and its conversions in the international market. This is witnessed by the keen participation of buyers from all over the world in the recent monthly tender sales of teak logs in May to October 1994 by the Myanmar Timber Enterprise (MTE). Higher prices are paid for good quality logs (Myint Kyu Pe, 1994). Details are in Table 9.

Table 9. Average price of teak logs sold by tender, May to October 1994

Teak conversions are sold direct to foreign buyers at export prices fixed for various types of commodities such as squares, boards, planks, decks and scantlings. Prices vary from about US$3,000 per ton for special quality teak deck of length 15 feet to about US$470 per ton for 1"(1"(2½' second quality teak scantlings; all prices in US$ per ton of 50 cubic feet. The average prices of teak logs and sawnwood sold in Indonesia, Myanmar, Pakistan and Thailand during 1988-92 are shown in Table 10.

Table 10. Average price, teak logs and sawnwood in Regional countries

(FOB unit value in US$)

Source: (A) FAO, 1995; (B) MTE, 1995; * For 1986 only, ** Domestic whole sale price

Until recently, African teak was considered to be too low a quality for sawn timber export to Europe and only logs were exported to India. However, several countries in West Africa have recently, established export grades of sawn timber from plantation teak and it is expected that this source of supply will steadily grow in importance in the near future.

It is noted from some timber business circles specializing in the teak trade in western Europe that the trade prefers naturally grown Myanmar teak, as it is harder and more stable than the faster grown plantation teak. Naturally grown teak has more oily texture and more uniform, darker and golden colour than faster grown, softer and paler plantation teak. Myanmar teak is more stable as the trees are normally felled only after girdling and left standing for 3 years.

ANTICIPATED FUTURE MARKET TRENDS

The world timber products trade is a multi-billion dollar business. International trade in primary timber products alone exceeds US$31 billion per year. Production of tropical saw logs and veneer logs in ITTO producing countries amounted to a total of almost 140.8 million m³ in 1992 and sawnwood production was almost 42.1 million m³. Volume of log exported (1992) was about 22.8 million m³ and sawnwood exported was about 8.2 million m³. Due to the combined pressures of domestic demand, value added production policies and environmental concern, sawnwood exports dropped to 7.9 million m³ in 1993 and are predicted to further drop to 7.6 million m³ in 1994. Log production is also expected to decrease substantially through 1994 due almost entirely to decreases in Malaysian production (ITTO, 1994). Conversely, demand for wood-based products has been increasing, due to pressures of increasing population and growing economies.

Annual production of teak logs is estimated to be around 1.5-2.0 million m³, comprising 750,000 m³ in Indonesia, 656,000 m³ in Myanmar and 43,000 m³ in Thailand. Reliable production figures for Africa and Tropical America regions are not available. Teak logs are mainly exported by Myanmar and on average, are some 300,000 m³/year. Under changing scenarios, the teak market is extremely large and there is no problem of selling teak logs and lumber.

Major market segments of teak sawn timber and veneer in USA are given in Table 11.

Table 11. Market segments and consumption percent of teak wood in USA

Boat building

Most boat manufacturers buy teak wood sub-assemblies and components from marine component manufacturers. The producers of high quality boats tend to buy more raw material and fewer components since the interiors are more often customized for each buyers. A touch of good quality teak wood in a boat enhances its appeal and consumer's prestige. In the United States market, it is estimated that 70% of sawn teak timber is consumed for boat building (Shwe Baw, 1995). In the Netherlands market, it is noted that 80 % of the imported teak wood is marketed to the shipyards, well known all over the world. There is little competition for teak in the manufacture of boats and this market segment is likely to be strong in the future.

Teak furniture

It is estimated by the Furniture Industry Research Association of United Kingdom that the total value of furniture trade around the world involves some US$100 billion and the value of furniture export across the trading blocks is about US$8 billion. The share of this market includes:

In many countries of Western Europe and USA, outdoor living has been developed tremendously. People are spending a lot of money in their gardens. Several manufacturers use durable species to manufacture garden furniture. A growing percentage of garden furniture with teak wood is being made in Indonesia, Thailand and Myanmar and it is expected that teak wood will become more popular as it becomes more familiar to the ultimate end users. A great deal of teak veneer is also being used in furniture making. Top grade, flat sliced or quarter sliced, sequential veneers clipped and graded are much in demand for use as overlay on particle board and fibre board substrates.

On the other hand, due to the limited supply of teak wood and the change in consumer taste towards the lighter finishes in the United States, the temperate species and rubber wood · Hevea brasiliensis) are becoming more competitive in the furniture market.

Teak floorings and moldings

On account of new housing starts and economic development in traditional markets of Japan, USA and western European countries, and the newly industrialized countries in Asia, the demand for teak floorings and moldings market is also growing.

Conclusions

The market is quite willing to accept teak wood and its products. Decision makers tend to use long lasting high quality material and they know that naturally grown mature teak wood is the best. However, since the authorities of Myanmar decided to sell teak logs only by tender, there was high increase in log price. Foreign buyers have to pay steep prices for boards and planks which are generally available at the off-shore mills in Singapore, Hong Kong and Thailand. Teak scantlings are also in short supply and the position is rather tight. As a result, buyers are trying new sources that can supply them at a reasonable price. Fast grown plantation teak from Africa and tropical America is beginning to make inroads into the world teak market at a lower price.

It is anticipated that high quality teak from natural forests will continue to cater to the demand for the manufacture of high class boats, ship decks and customized furniture at a higher price. Whereas inferior teak will penetrate into the other market segments including common furniture, flooring and moldings in the near future, say beyond the year 2000.

LOGGING AND TRADE POLICIES

The environmental issue is likely to have a certain degree of impact on trade and marketing of teak wood and products. Strong and continuing pressure from environmentalists is raising a general awareness amongst consumers of the alarming depletion and destruction of forests in the tropics. Although the destruction of tropical forests is the result of wider socio-economic issues, many developing tropical countries are being pressured to ensure that timber comes only from forests under sustainable management.

With teak being a tropical hardwood species and subject to such pressures, this makes it more essential to adopt appropriate logging policies in order to ensure the future of teak resources. As far as Myanmar is concerned, the process of exploiting teak has continued on a commercial scale since 1856. However, Myanmar has been able to manage its teak forests on a sustained yield basis and has continued to supply the need of the global market consistently to date.

The application of the Myanmar Selection System in the management of its teak resources has proven effective in 139 years of experience. The Myanmar logging system, deploying some 4,500 elephants in combination with bulldozers and skidders, is demonstrated as environment friendly. It causes least disturbance to the natural ecosystem, from which only selected mature teak trees are extracted for the economic benefit of the country. On a global basis, the adoption of a selection felling system with prescribed diameter limits is also quite common in extraction from the natural forests. In order to ensure the future of teak resources, Myanmar experience indicates that:

• Strict monitoring is essential in the enforcement of the Selection System;
• Managers down to field personnel have to make every endeavour to reduce wastage in all phases of logging operations and to observe the felling regulations;
• Concerted effort is required to protect the teak forests against illicit extraction and encroachment for agricultural purposes.

Another environmental aspect in favour of teak is the practice of plantation silviculture in many tropical countries of the world. Man has much more control over planting trees with selected provenance at most suitable sites. As plantation forestry is common around the world, many manufacturers, retailers and consumers, especially in Europe, respond favourably when timber comes from managed sustainable plantations.

On the whole, teak wood has a good name environmentally and commercially, mainly due to the fact that the majority of teak wood comes from natural forests under sustainable management systems in Myanmar and from teak plantations in Indonesia. Trade interventions, such as proposals to introduce certain labelling and certification schemes in the timber market, now under discussion at ITTO meetings, are not expected to hinder the teak wood trade, as the extraction of teak does not have significant environmental effect. This kind of intervention, however, motivates and keeps foresters under pressure to manage teak forests more carefully on a sustainable basis.

INFLUENCE OF MARKET ECONOMY ON TEAK TRADE

The protection oriented trade policies of the major importing countries, Japan and the United States, with respect to most of the light manufacturing activities, including wood processing industries, are reflected in the tariff escalations of these countries. It is therefore evident that it has a certain degree of impact on the teak wood products trade. On the other hand, adoption of a market oriented economic system in Myanmar over the last few years has had a dramatic effect on the teak supply situation. Teak logs are sold by tender system regularly, and maximum prices secured. This step has resulted in the shortage of good quality log supply to the teak mills and subsequently a shortage of scantling supply to some extent.

Due to the high increase in log prices of the tender sales, board prices climbed very steeply, up to US$3,040/m³ FOB Yangon, Myanmar in 1995, resulting in a sharp drop of orders. Some European buyers looked to alternative cheaper sources, and tried to reduce the average price they have been forced to pay. New mills in West Africa and Central America tried to fill this void. However, due to the inferior nature of some of their immature fast grown plantation teak and lack of experience in the international teak trade, some poor quality shipments of sawnwood were unsuccessful, and many of the mills gave up production.

High prices, which the buyers have to pay for special quality boards and planks from Asia, may have shrunk the market slightly for these types of teak products. The Myanmar Timber Enterprise, the sole exporter of teak logs and sawnwood at present, maintains a base stock of teak scantlings and sells at attractive export prices. Generally there are sufficient supplies of long and short scantlings from Myanmar, and any short fall is taken up by more expensive off-shore mills.

Privatization of industries, including wood processing industries, is taking place in Myanmar under the market economy. This privatization process is also likely to influence the teak trade gradually. Nowadays, it is generally accepted in the timber producing tropical countries of the world that maximum value can be attained from the forest resources and more employment generated through the expansion of downstream timber processing industries and manufacturing value added products. Governments of these countries have accordingly invited both local and foreign entrepreneurs to import the technology and investment to achieve this goal. Rational evolution of production and trade policies is thus taking place to accelerate these long term developments.

In Myanmar, this sector is beginning to receive good response from entrepreneurs of industrialized countries as Japan, France, Italy and Singapore, and as well as the local industrialists. Especially favoured is the manufacture of teak wood solid doors, flooring blocks and high quality furniture. Priority is being given to these enterprises in the sale of teak logs and conversions. A total ban, or reduction of log exports, is expected to occur as the modernized teak wood processing plants increase in future in Myanmar.

India, with its expanding population of some 800 million and growing economics, may be considered as a major player in the global teak trade. In the recent years, the timber market has been opened up with a drastic reduction in import duty on logs and veneers. The rationale for this import policy has been to feed the timber industry in this country which has been badly hit on account of lack of logs. The volume of log trade between South East Asia and India has already exceeded 1 million m³ and it is quite likely that this increasing trend will continue. Besides, India is a traditional customer of Myanmar teak; the upper middle class people tend to use teak for housing and furniture.

CONCLUSIONS

In summary, the teak market is identified as dynamic and very wide indeed. Teak wood is world renowned, and under no circumstances will teak loose its markets. Perhaps, the market will lose teak, especially high quality mature teak, if sustainable management systems are not strictly adhered to or enforced. Plantation teak will take some more years to mature and to supplement requirements for teak wood and products in the global market.

Looking at the expanding demand for timber and the economic growth in the Asia-Pacific region itself, it may not be too presumptuous to state that, by the turn of the country, intra-regional trade in timber could account for a major portion of export timber trade, including teak wood. In order to expand the teak resources and further enhance teak products market, regional cooperation and exchange of views is desirable to address some of the major issues related to teak. This includes, inter alia:

• Production of high quality teak logs and conversions in order to meet buyer's specifications precisely, and to make supply available, as and when required;
• Formulation of internationally acceptable grading rules for teak log, sawn timber and veneer;
• Restructuring price levels to secure maximum price while competitive enough with other substitute materials under the changing scenarios;
• Introduction of modern technology and machinery to maximize production and minimize wastage of such a valuable timber;
• Development of better logistics, prompt shipment and accurate grading for the satisfaction of the buyers;
• Adoption of a harmonized system of Custom's classification for better statistical coverage of the trade;
• Last but not least, establishment of a network of Teak Development Centres to collect, maintain and distribute vital information related to teak, including comprehensive market statistics and trade flows on regular basis.

REFERENCES

Akindele, S. O. 1989. Teak yields in the dry lowland rain forest area of Nigeria. Journal of Tropical Forest Science 2 · 1): 32-36.

Anon. 1993. Development of teak in China. Chinese Academy of Forestry, Research Institute of Tropical Forestry, FORSPA Publication No. 4: Teak in Asia.

Apichart Kaosa-ard. 1993. Teak in Thailand. FORSPA Publication No. 4: Teak in Asia.

Chein, Hoe. 1969. Myanmar Teak.

CSO. 1994. Statistical Yearbook 1993. Central Statistical Organization, Ministry of National Planning and Economic Development, Myanmar.

Dupuy, B., Mille, G. 1993. Timber plantations in the humid tropics of Africa. Centre Technique Forestier Tropical · CTFT). FAO Forestry Paper 98.

FAO. 1995. Forest products prices 1973-1992. FAO Forestry Paper 125, Rome, 1995.

Gyi, K. K. 1995. Management of natural teak forests for sustainable development. · Unpublished).

ITTO. 1993. Results of the 1992 Forecasting and Statistical Enquiry for the Annual Review. International Tropical Timber Organization.

ITTO. 1994. Elements for the Annual Review and Assessment of the World Tropical Timber Situation 1993-1994. International Tropical Timber Organization.

Keogh, R. M. 1980. Teak volume growth and thinning practice in the Caribbean, Central America, Venezuela and Colombia. In Proc. IUFRO Working Group S 1 07 09 Symp. on wood production in the neotropics. Inst. Trop. For. Rio Piedras, Puerto Rica.

Kermode, C. W. D., 1951. Some aspects of silviculture in Burma. Central press, Yangon.

Lanly, J. P. 1982. Tropical forest resources. FAO, Rome, 1982.

Lanly, J. P. 1993. Management and conservation of closed forests in tropical America. FAO Forestry Paper 101, Rome, 1993.

Letourneux, C. 1957. Tree planting practices in tropical Asia, FAO Publication.

Maddugoda, P. 1993. Teak in Sri Lanka. FORSPA Publication No. 4: Teak in Asia.

Myint Kyu Pe, 1994. Tender sales of teak and hardwoods by MTE. Myanmar Forestry Journal Vol. 2, No. 4, October 1994.

Nguyen Quang Khai, 1993. Some research results on teak establishment in Vietnam. FORSPA Publication No. 4: Teak in Asia.

Perum Perhutani, 1993. Teak in Indonesia. FORSPA Publication No. 4: Teak in Asia.

Rahman, A. and Mustanoja, K. J. 1978. Optimum rotations for forest plantations in Bangladesh.

Rao, Y. S. 1991. Processing and marketing of teak. Proc. of seminar on research and development of teak, Hainan, China 1991

Ratan Lal Banik. 1993. Teak in Bangladesh. FORSPA Publication No. 4: Teak in Asia.

Roszehan Mohd. Idrus. 1990. Intra-regional timber trade flow study. UNDP/FAO Regional Project (RAS/86/048) Field Document No. 21.

Shwe Baw. 1995. Teak Marketing. Proc. of the · MTE) Teak Symposium, Yangon, March 1995.

Streets, R. J. 1962. Exotic trees of the British Commonwealth. Clarendon Press, Oxford.

Troup, R. S. 1921. The Silviculture of Indian trees, Vol. 2. The Clarendon Press, Oxford.

Vinh Phengdouang. 1993. Teak in Laos PDR. FORSPA Publication No. 4: Teak in Asia.

White, K. J. 1991. Teak: Some aspects of research and development. FAO RAPA Publication: 1991/17.

Processing and development technology and future trends for teak utilization - Mr. Suntud Sangkul

Suntud Sangkul
Forest Industry Organisation, Thailand

Sawn teak timber

Teak wood products such as bowls are manufactured in a cottage industry in Myanmar

ABSTRACT

The main factors affecting processing and utilization of plantation-grown teak wood are the growth stresses of fast-growing wood compared to those of slow-growing natural wood. Three hundred and eight plantation teak logs, 2.5 m long with diameters ranging from 9-20.5 cm were harvested from 20-year-old trees and converted to lumber using the through and through sawing method to equalize stress distribution. The lumber sizes were determined for maximum output and the average lumber recovery was 51%. The recovery and properties of plantation-grown teak wood can be improved for future utilization through the development of machine performance, cutting patterns and kiln drying practices.

Key words: Tectona grandis, Thailand, conversion, lumber, cutting pattern, kiln drying.

INTRODUCTION

Social conflict and the loss of biological diversity have resulted from large scale exploitation of natural teak (Tectona grandis) forests, especially in Thailand. This exploitation is associated with a high demand of land for expansion of agriculture, livestock, and shifting cultivation, together with continuously increasing demands for logs from wood-based industries and foreign markets. Direct impacts are constraints on, and the decline of, timber production from the natural forests of timber-producing countries.

Plantation resources have been developed to satisfy the demand for teak wood, to create jobs, and to add value to forest resources; these plantations will maintain long-term teak productivity. It is also anticipated that results from improved lumber processing of plantation teak logs will be directly beneficial, both to the wood-using industries in making available a greater future supply of plantation lumber, and also in supporting environmental issues through reducing harvesting from natural forests. Plantation-grown teak wood cannot substitute for all items utilized from natural teak wood because the wood properties of plantation teak are different from those of natural forests. Potential uses of plantation-grown teak wood are parquet flooring, panelling, and furniture. It is desirable to now initiate research on properties and wood durability to improve utilization of plantation wood, and to transfer the results of such research to wood-based industries.

TECHNOLOGY

Lumber manufacturing

The quality of sawn lumber is directly controlled by the performance of the saws, machines, and operators. However, variation inevitably exists in the natural quality of the produce in general, and even in the most precise manufacturing operations known. The most important wood qualities in the lumber industry are: thickness, width, length, grade, and moisture content. All of these qualities are subject to variations from the most desired shapes and sizes. Undersizing results in customer complaints and rejections, thus reducing profitability. Excessive oversizing results in waste through reduced lumber recovery from the log supply. To set the target size we have to make allowance for all probable variations in cutting, to achieve a carefully determined oversize.

During the past 30 years, the processing needs of the world-wide lumber industry have changed radically. Raw material costs have rapidly increased and it has become necessary to sustain high consumption rates while maximizing the amount and value of lumber recovered from each individual log. Fortunately, coinciding with these new needs has been the emergence of new technologies for lumber manufacturing, which are discussed below.

Cutting Aids: Laser light indicated cutting lines

Lasers produce light which varies from ultraviolet, through the visible spectrum, to infrared. With a low power source, the helium neon laser provides intense, visible red light that is highly directional and controllable. Its directability and brilliance make it ideal for visual optimizing. The laser line marker produces a dot or a line, narrow and bright for its entire length, when laid on a log, cant, board or on a plywood sheet. This gives the sawyer an excellent reference line for his cut. The high efficiency of the laser line marker makes it the obvious replacement for shadow line equipment based on an incandescent light source. Its unique optics, ruggedness, portability, and long life have made it the leading laser line marker instrument now in use in the forest products and wood working industries.

Target size

Lumber is not simply a board; it is a precision-machined product. Operation of an efficient sawmill, in addition to good design, also entails selection and saw performance and also good machine performance. This means improved utilization by increasing the recovery of lumber being processed. If any of the critical factors go wrong, it can result in variations from the desired finished size. We can set the minimum target size specified by the customer by adding an allowance to the finished size for planing, shrinkage, and sawing variations (saw thickness, gullet capacity, saw tooth modification, saw tension, saw width, etc). This will give the minimum target size that we can consistently produce and satisfy the customer (Figure 1).

Figure 1. Target size and its makeup (a)

Figure 1. Target size and its makeup (b)

Sources: a) Uddeholm; b) SICON lumber size control.

Sawlog breakdown and cutting patterns

Important anatomical growth features of the logs are taken into account as these features are revealed as defects in the processed sawnwood. These relate to lumber recovery with specific regard to the cutting patterns and sawlogs used. Common characteristic shrinkage and distortion of flats, squares, and rounds as affected by the direction of annual growth rings are shown in Figure 2.

Figure 2. Characteristic shrinkage and distortion of flats, squares and rounds as affected by the direction of annual growth rings

Source: TRADA Leaflet VA5 - Timber Drying U.K.

The price and quality of sawn teak wood are classified by the dimensional sizes of lumber and the number of defects (e.g. knots, sapwood, bee holes, etc.). With regard to the distinct growth rings of teak sawn wood for decorative purposes, the best opening face (BOF) process also has to be implemented for further sawlog breakdown. In general practice, the cutting patterns of natural teak wood have traditionally been of two distinct types (Figure 3) which are: a) flat and b) quarter sawn.

Figure 3. Sawnwood in relation to position in the log from which they were sawn

a) Flat sawn also known as back sawn or tangential.

b) Quarter sawn also known as vertical grain, edge grain or radial lumber.

Due to the wood properties of plantation-grown teak wood, governed by the stress distribution of fast-growing wood, the selected through and through cutting pattern of live sawing will often generate a balanced stress pattern or equal stress distribution on the width of the lumber cut (Figure 4). Making the saw cuts concurrently also overcomes the problems of face cupping due to spring (Figure 5).

Figure 4. Stress distribution in a normal log on through and through sawing

Figure 5. Face cupping due to spring

Modified teeth by stellite tipping

When sawing an abrasive wood like teak, which contains siliceous components, the steel saw blade (teeth) will be blunt rapidly. Teak wood also contains soluble extractive chemicals such as naphthoquinone deoxylapachol (a fungus toxic substance) and anthaquinones (resistant to termite attack) which give teak wood its high natural durability.

The working life of teak sawing blades can be substantially increased by tipping the teeth with an abrasive resistant alloy, such as ‘Stellite No.12’. Stellite is the registered name for a cobalt-based alloy with an overall makeup of 44-55% cobalt, 15-33% chromium, 10-17% tungsten, 2-3% carbon, 5% iron and other ingredients, such as vanadium, nickel, manganese, zirconium and molybdenum. It is highly resistant to abrasion and corrosion. It has a low friction co-efficient, and resists loss of hardness when heated to high temperatures. With a thin saw blade and accurate side grinding of the stellite-tipped saw teeth, the desired qualities of smooth board surfaces and target size can be achieved.

Results of lumber manufacturing trials

Three hundred and eight plantation-grown teak logs of 2.5 m length, with diameters ranging from 9.0-20.5 cm, harvested by selected crown thinning practice from 20-year-old trees, were cut into lumber at a band sawmill by using the through and through method for the purpose of equal stress distribution. When both sides of the lumber are cut at the same time, spring does not usually occur during cutting.

The target lumber sizes were determined for maximum output. Each log was positioned for best opening face (BOF) processing. Logs dimensions were recorded to calculate the cubic log content (based on the Smalian’s formula) for predicting lumber volume. After the first opening slab, boards of 1” thickness were subsequently cut. If 1” thick final boards could not be processed, boards of 1/2” thickness were cut. Thick slabs were cut to 1” or 1/2”. All processed lumber was edged for market sizes, including thin sapwood portions on both sides and sometimes sound knots. Each piece of lumber was tallied and labelled according to log number, lumber scale, and lumber grade. The lumber recovery ranged from 45-58% and averaged 51% (Table 1).

Table 1. Lumber recovery of 308 plantation-grown teak logs

CONCLUSIONS AND RECOMMENDATIONS

As the main factor affecting the processing and utilization of plantation-grown teak wood is growth stress, the development of techniques for future processing and utilization of this lumber requires the following subjects to be improved.

Appropriate cutting

It is recommended that plantation-grown teak lumber be cut using the through and through method to have equal stress distribution, with tension in the outside zones and compression in the inside zone of the board (Figure 4).

Kiln drying

Lumber dried to the final desired moisture content will have no further movement within its structure. Dry lumber shows an improvement in tensile and compressive strength and is more suitable raw material for building and wood products.

Casehardening reconditioning

After drying, growth stresses and drying stresses can develop. This may be seen with the help of test prongs (1-2 cm thick dovetail-shaped sawn board sections - Figure 6). After the wood is dried, no furthur shrinkage in the board can take place; the inner part tends to stress heavily on the outer parts, which are subjected to compression stresses. This condition is called casehardening. Casehardened timber contains heavy drying stresses and bow when the boards are cut. At the end of the drying period the casehardening must be removed by steaming or conditioning so that the wood does not move during later processing.

Figure 6. Test prong samples

a) Perpendicular stresses on the board surface at the beginning of drying.

b) Perpendicular stresses in the center of the board and compressive stresses on the surface (casehardening) for any furthur sharp drying.

c) Casehardening removed by steaming or conditioning.

d) Stress-free dried timber.

Treatment for modification of properties

Several analyses were conducted on the mechanical properties of plantation and natural teak (Table 2). The results of these studies show that 10-year-old plantation-grown teak wood from Klaang Dong, Nakhon Ratchasima, Thailand, has low mechanical properties compared to natural-grown teak wood. For better utilization, the dimensional stabilization or improvement of physical and mechanical characteristics of plantation-grown teak wood should be modified through: application of heat and pressure, impregnation with plastic or chemical reagents, and exposure to radiation.

Finishing

The distinct colour contrast between sapwood and heartwood affects the utilization of plantation-grown teak lumber. This can be modified by either of two techniques: 1) by processing the lumber for decorated parquet flooring, paneling, furniture, etc.; or 2) by applying a finishing process to dye the wood surface with stains, either an organic solvent or a water/alcohol one. The stains will be dyed on the wood surfaces to match the colour of sapwood and heartwood and also to suit current market trends.

Table 2. Mechanical properties of teak

Note: M.C. = Moisture content (%) (* indicates ‘green wood’); S.G. = Specific gravity; No T/S = number of trees/specimens; PL = Plantation; NF = Natural forest; a) Mae Moh = 16 yr. old plantation, Lampang province, North Thailand; b) Klaang Dong = 10 yr. old plantation, Nakhon Ratchasima province, Northeast Thailand; na = not available.

1. Fiber stress at proportional limit, N/mm²

2. Modulus of rupture, N/mm²

3. Modulus of elasticity, N/mm²

4. Total work load (* work to the maximum load), mm N/mm³

5. Energy consumed in impact bending, mm N

6. Maximum drop of hammer in Hatt-Turner type impact bending, m

7. Maximum comperession strength parallel to grain, N/mm²

8. Fiber stress perpendicular to grain at proportional limit, N/mm²

9. Maximum shearing strength parallel to grain, N/mm²

10. Maximum tension strength perpendicular to grain in radial plane, N/mm²

11. Maximum tension strength perpendicular to grain in tangential plane, N/mm²

12. Cleavage in radial plane, N/mm width

13. Cleavage in tangential plane, N/mm width

14. Hardness in radial plane, N

15. Hardness in tangential plane, N

REFERENCES

Anon. 1989. Choice of lacquering system. The ASEAN Timberlink.

Chunwarin, V. 1992. Properties and utilisation of teak. Seminar on 50th Year of Huay Tak teak plantations, Thailand.

Davies, W.G. et al. 1988. Proceedings of the Workshop on Sawmill Productivity Improvement. FAO/ UNDP Forest Industry Development Project (RAS/86/048), Field Document No 13.

Kollmaan, F. 1970. Hilderbrand Kiln Drying.

Koch, P. 1972. Utilisation of Southern pines, Vol. 2. U.S. Department of Agriculture Forest Service.

Lewis, D.W. et al. 1974. Best Opening Face Programme. Australian Forest Industries Journal, November.

Page, M.W. 1978. Milling South East Asian Hardwoods. Sawmill Techniques for South East Asia, Vol. 2.

Sangkul, S. et al. 1992. Lumber recovery of small size teak logs from thinning. Seminar of 50th Year of Huay Tak teak plantation, Thailand.

Williston, E.K. 1985. Computer Control Systems for Log Processing and Lumber Manufacturing.

Wood quality and end-user requirements - U Soe Tint and U Myint Kyu Pe

U Soe Tint
Institute of Forestry, Yangon, and

U Myint Kyu Pe
Myanmar Timber Enterprise

ABSTRACT

Teak timber has qualities as: durability, workable, beautiful figure, non-splitting. Some desirable features are: straight grain, knotless and defect free. Teak is exceptionally stable under changes of temperature and moisture; it is free of warping in drying. Four major teak colour types are recognised in Myanmar: uniform golden, darker, uniform grey-brown and black-stripe teak. Specific gravity and shrinkage varies in comparison of plantation and natural grown forests. Conclusions in Thailand and India indicate no significant strength difference in plantation and natural grown teak. Tests on shear and bending strength of plantation and natural forest are shown; some data are not consistent. Hardness (and colour) of plantations are lower. A kiln drying schedule is included. Teak end-user requirements are: preferably harder natural grown teak, girdled (seasoned standing), free of visible defect as knots, bee holes, shakes, spring. Optimum growth rate is specified as six rings per inch; attention is directed to silvicultural requirements of seed quality and timely thinning, together with research to enhance qualities for long term and lasting international marketing. Future directions should aim at minimising log exports and manufacturing semi-finished products.

Key words: Tectona grandis, Myanmar, wood qualities, kiln drying, girdling, log, sawn and conversions grading.

SECTION I: WOOD QUALITY

(by U Soe Tint)

INTRODUCTION

True teak is obtained from Tectona grandis L. F., which belongs to the family Verbenaceae. The name ‘Teak’ has been given wrongly to many timbers like “Rhodesian teak” which is an entirely different species, Baikiaea plurijuga (Leguminosae) in Africa. Teak is the most important species of Myanmar and one of the most valuable species in the world, because of its durability, stability and workability. As teak has all of the good qualities required, it could be said to be “The best all-around timber”. It plays an important role in export and the availability of good teak is confined to few South and Southeast Asian countries. It is practically the only timber used by British Admiralty for naval work and the best teak from Myanmar is known as ‘Admiralty’ teak. Plantations of teak have been established in Myanmar for a long time and plantation teak closely resembles natural teak (Pearson & Brown, 1932).

Four different varieties of teak timber are found in Myanmar, namely:

• Uniform golden colour, straight grained and even texture and with few markings. Such teak is found in Bago Yoma forests and the forests of Upper Myanmar. It is the best teak of the country and is much preferred by foreign customers.

• Darker in colour and harder, mostly found in the dry forests of the country. It is a good teak apart from a higher density and comparatively harder in working properties.

• The colour is uniform grey-brown and mostly cross-grained and found in the northern part of the country. Sometimes bee holes are observed. This variety could be said to be the worst quality of the country, but it may yet be better than the standard quality teak of other origins in the teak bearing region.

• Black stripe teak in Thayet and Taungdwingyi areas with a limited availability. It is a good ornamental timber and previously a high price was obtained. It is said that black stripe teak also occurs in Java (Wiemann, 1979).

Thailand has also four major varieties of teak, similar to Myanmar teak (Sono at el., 1959). These types are characterised by:

(a) Golden brown in colour;

(b) Dark or greyish brown in colour;

(c) Hard to work, colour may be golden or golden brown; and

(d) Easy to work, colour rather pale or light brown.

QUALITY OF TEAK

Durability, stability, workability and ease in pre-treatment are the major determining factors of good quality teak. Beautiful figure, colour, density and rate of growth are other wanted qualities. Straight grained, knotless and defect-free timber are also desirable qualities.

Durability of teak

Teak is one of the most durable timbers in the world. On some dry sites, it has lasted for more than seven hundred years. In contact with ground, it can remain serviceable for more than twenty five years. Extractives present in the heartwood are believed to be responsible for its durability (Rudman, 1959). Several studies of teak heartwood extractives and decay resistance showed that most teak heartwood extractives directly contribute to the natural durability of teak. Rudman and his co-worker found out that decay resistance increased from the pith to the sapwood. They reported that the decay resistance of teak heartwood was related to the age, rate of growth and extractive content.

It was also reported that a wide range of variation exists in decay resistance both between trees and within a tree. These variations are largely dependent on genetic rather than environmental influences. The basal portion is said to be not very durable, while the most durable portion is about 12.5 feet from the base. The middle to outer heartwood is the durable part and also contains the highest concentration of extractives. A teak tree consists of more heartwood than sapwood. It is observed that the sapwood normally has about 0.5” thickness in old-aged large trees whereas it consists of about 0.5”-1” sapwood in young trees of age 20 years and below. Natural durability is one of the prerequisites that makes teak a high quality timber.

Stability and movement

Teak is an exceptionally stable timber under changes of temperature and moisture. It is free from warping in drying. Movement due to its low shrinkage is unrivalled among the timbers of the world.

Shrinkage

The shrinkage and the specific gravity of teak from different localities are given in Table 1. It consists of both natural and plantation-grown teak, as well as girdled and green-felled teak. The specific gravities are on the basis of oven dry weight and green volume. Shrinkage data are from green condition to the oven dry state. In Table 1 are presented data from other teak bearing countries and planted areas.

Table 1. Specific gravity and shrinkage of teak

* Oven dry volume basis. (a) = Wiemann, (b) = Sono P., (c) = Keating and Bolzo

It is observed that wherever teak is grown, the specific gravity is quite comparable except that of the Philippines. Similarly the shrinkage of teak from natural habitat is rather consistent and shrinkage from teak outside the natural habitat are rather high. Teak is classified as “low” in shrinkage.

Movement

Seasoned timber in service is liable to fluctuate dimensionally according to the Equilibrium Moisture Content of the locality. Some movement tests were carried out in the Forest Product Laboratory in Prince Risborough (Anon., 1969). Movement percents of some selected species, including teak, are reproduced in Table 2.

Table 2. Movement of teak

It is noticeable that teak has a small movement. Rosewood has similarly small movement, whereas the so-called Rhodesian teak is a little higher in movement. Movement is an important index for fine works, cabinet making and parquet flooring.

Workability

Apart from the teak from drier areas of the country, the rest are quite easy to work in all aspects. The resulting surfaces of planing, boring and turning processes are smooth. Resistance to splitting when nailed is rather good.

Tools tend to become dull in machining process because of the presence of silica. Silica is said to be present in the vessel elements (Chalk, 1957). According to Keating and Bolza (1982), silica content in teak varies up to 1.4 percent.

Teak from the northern part of the country has slight fibre pricking in planing, and due to some cross-grained nature, it is not a good quality teak compared to those from other parts of the country.

Pre-treatment

Preservative treatment and the drying of timber are the two main pre-treatments to be considered.

Preservative treatment

As teak is a naturally durable timber, no preservative treatment is necessary. Even if treatment is carried out, it is rather hard to apply.

Timber drying

Teak is said to be moderately refractory and is not liable to check, split and warp (Mya 1966).

a) Air drying

A slight splitting is said to occur but practically there is little or no surface checking and warping (Mya, 1966). There is no signs of insect attack, discolouration or decay. End coating to prevent splitting is advisable.

b) Kiln drying

Different kiln schedules were tested in drying teak (Mya, 1966). The following schedule in Table 3 was found to be most suitable for giving minimum drying defects.

Table 3. Kiln schedule for teak

c) Solar drying

Drying of teak by solar means has been carried out by U Win Kyi (Kyi, 1992). He used a semi-green house type. It takes 26 days to reduce 1” thick board of 39.1% initial moisture to 12.2% moisture content. No drying defects were observed. It is observed that parquet blocks that are solar dried are quite satisfactory.

d) Drying by girdling

Girdling is a common practice in Myanmar, India and Thailand, the sapwood being removed and leaving the tree standing before felling, normally for three years. This is to allow the wood to float for water transportation and at the same time reduce the drying time with less drying defects. Girdled teak that stands for 27 months has a moisture content of 33.6% still left in the wood (Sweet, 1922). It is still above the normal fibre saturation point and therefore it is only partially dry.

Rate of growth

Growth rings of 2-13 per inch are usual and yet up to 40 rings per inch have been found occasionally; plantation teak has wide growth rings (Wiemann, 1979). Teak plantations in Thayawaddy showed an average growth ring of 4.3 per inch. In Thingan-neenaung and Koloon area, the averages are 5.5 and 9.6 rings per inch. In the natural forests of Bago Yoma, the average growth ring was found to be 12 per inch (Gamble, 1927). An optimum number of growth rings per inch is said to be six, which increases the strength properties. Beyond that the strength decreases in such a way that it is about the same as that of 15-20 rings per inch, which is extremely poor strength value or comparable to fast grown pieces of 2 rings per inch. On the other hand growth rate may not be of prime importance, if the timber is to be used for ornamental or other purposes apart from structural use.

Ryan & Kloot (1960) have pointed out that in the early years of the tree life, the strength properties of wood are comparatively low, but under normal growth conditions, rise steadily for twenty years to a level at which they remain more or less constant. It is rather obvious that slow grown and fast grown teak have different properties and one may be useful for one purpose but it may not be good for another purpose.

From the investigations carried out, it appears that for the same stem diameter, there is more sapwood if the growth rate is faster as is the case in the better quality areas. It also appeared that the sapwood increases with the height of the cross section above the ground (Ferguson, 1934). Chowdhury (1953) also pointed out that teak wood of very fast growth is weaker and spongy.

GIRDLED AND GREEN-FELLED TEAK

There is a tendency for girdled teak to be stronger and better than green-felled teak. Pearson (1913) carried out some investigations on the effect of girdling on the mechanical properties of teak. Table 4 below shows the results obtained.

Table 4. Bending strength of girdled and green felled teak

Note: psi = Pounds per square inch

The table shows that there is a tendency of the timber from girdled trees to be a little bit stronger in both areas, but the difference is not significant. A similar subject was studied by Pearson and Brown (1932). The results of the test are given in Table 5.

Table 5. Strength properties of girdled and green felled teak

Note: M.C = Moisture content; FS @ PL = Fibre Stress at the Proportion Limits; MOR = Modulus of rupture; MOE = Modulus of elasticiy.

In terms of strength as a whole, the difference between girdled teak and green felled teak is not significant. On the other hand, there is a trend that the girdled teak has a slightly higher strength value, except in the Fibre Stress at the Proportion Limits. In hardness, it is quite obvious that girdled teak is harder. Although the girdled tree is stronger than the green felled tree, the magnitude of difference is not that great. However great care should be taken in extracting green felled teak. Unless every precaution is taken in different stages of processing, green felled timber will naturally suffer various defects and be devalued. At the same time, timber volume loss could be greater. So it is advisable to extract and process green teak efficiently to avoid loss. Otherwise green felling teak may not have the similar strength value to girdled teak.

Coster (1930) stated that the shrinkage and swelling properties and other properties of wood are not altered by the length of the period during which the trees stand girdled. Sawing and seasoning of timber did not show differences between girdled and green felled teak trees, according to Coster. Wattanakul (1959) found out that after one year green felled trees reduced their moisture content to about 66% and girdled trees to about 64%. After two years, the respective moisture contents were found to be about 47% and 34%.

NATURAL GROWN AND PLANTATION GROWN TEAK

There has been great interest on whether the teak timber from planted trees is as good as natural grown teak. Pearson (1911 and 1913) carried out some tests to see the difference in strength between the natural grown and plantation-grown teak. His results are reproduced in Table 6.

Table 6. Strength of natural and plantation grown teak

In shear parallel to grain the plantation teak is higher, whereas in bending strength, the data were not consistent. The specific gravities of the test specimens were not mentioned and hence the cause of inconsistency could not be cited. Anyhow the difference in strength properties are not significant, and therefore, plantation teak may be said to be as strong as natural grown teak.

Pearson carried out a further study and he included test specimens from both hill and the plain sites. The results are reproduced in Table 7.

Table 7. Test Results of Natural and Plantation Grown Teak

In the plains, natural teak is stronger than plantation teak, whereas in hill areas plantation teak is a little stronger than natural teak, except in shear strength. Between the plains and the hill areas, natural teak from the plains seemed to be superior to that of the hill sites. In the case of plantation teak, the hill sites produced stronger teak. The difference between natural and plantation teak is rather small and there is no real difference.

Nair and Mukerji (1957) analysed the available data and concluded that there is a strong indication of no significant difference between the mean strength values of natural and plantation grown teak. More tests were done by Sekhar and Rawat (1966) with similar results, that the strength of neither natural nor plantation teak showed any superiority in strength properties.

Sono and Rativanigh (1964) made a comparative study of natural and plantation grown teak of Thailand, and they also found out that apart from ash content, the strengths are rather similar. The same conclusions were also drawn by Lushington (1895) and Seaman (1930).

On the other hand, the colour of plantation teak is much lighter and the hardness is lower than natural teak. These properties are particularly true for juvenile wood. The practice in Myanmar is to leave the planted teak as natural teak after the final thinning at the age of 40 years. Therefore the colour and the hardness may be improved if it is harvested beyond that age.

TEAK FROM DIFFERENT COUNTRIES

Teak is so valuable and popular that many countries have tried to plant it both within and outside the habitat of teak. The following table (Table 8) gives the strength groups of teak from different areas (Keating and Bolza, 1982).

Table 8. Strength groups of teak from different countries

The strength groups mentioned in Table 8 is further detailed in Table 9.

Table 9. Strength groups and corresponding properties

Note: psi = Pounds per square inch; MOR = Mudulus of rupture; MOE = Modulus of elasticity.

It seems that teak in its natural habitat has similar strengths except that of Thailand. Teak outside its natural habitat areas belongs to the lower strength group. Nigerian plantation teak belongs to a higher strength group, although the reason for such a condition is not understood. Soil conditions, rainfall, rain pattern, temperature, the elevation and the sites are the controlling factors for strong and healthy teak.

END-USER REQUIREMENTS

Naturally, buyers would like to get timber of good quality for the money they pay. The physical quality of wood normally required is defect free timber, straight and free from curvature or twists even when exposed to weather. Spiral grain, large knots, sapwood, shakes of different types, too fast grown, bee holes, and springs, are the defects most undesirable by the buyers. Girdled teak, free from visible defects, less sapwood, small tolerances in sawing, and having specified moisture content, is much preferred. Discolouration is an unwanted defect.

Apart from the physical quality, some of the qualities to be considered in the international trade consist of the following:

• In terms of wood quality, traders prefer natural grown teak as it is harder and more stable than the fast grown plantation teak.

• Plantation teak is said to be lighter in colour.

• Natural grown teak is said to have a more oily nature and is more uniform in colour. These characteristics are much preferred in the use of teak as a long lasting high quality timber.

• Outdoor living is becoming popular and garden furniture is in large-scale production, where durable and light teak timber is much admired.

IMPROVEMENT ON THE QUALITY OF TEAK

The quality of Myanmar teak is naturally already good. The stem is normally cylindrical and straight apart from the teak of the northern area, which is rather flatted and cross-grained. Teak being a light-demander competes among its associates and this naturally favours straight and clean boles. The branches in younger aged trees are naturally pruned in both the natural and plantation teak. Since the size of the trees harvested is rather large, the presence of knots is less pronounced.

Apart from naturally favoured qualities, some work on the collection of good and sound seeds from better mother trees is being carried out in forming plantations. Seed orchards, selection of plus trees for seed collection, and the development of hybrids are in a state of research and development.

Normal timely silvicultural operations, namely thinning in plantations and improvement fellings in the natural teak bearing areas, are carried out for better timber quality. Correct selection of site for plantations is of great importance.

Pre-treatment in teak harvesting, accelerated transportation and processing, and the proper cutting season and drying are processes that may improve the wood quality in pre- and post harvesting operations.

FINDINGS AND CONCLUSIONS

1. Teak is one of the most valuable species and special care should be taken to conserve it for sustainable yield. More attention should be given to environmental protection for teak-bearing forests through the improvement of teak tree extraction works.

2. Technical know-how on the utilisation of teak for the optimum pay off is much in need. Sales of logs should be minimised and the manufacturing of semi-finished should be encouraged in order to generate more employment and produce more value-added products.

3. Green felled teak has as good a quality wood as girdled teak if it is properly handled, processed and kiln dried.

4. Plantation teak is as strong as natural teak, and yet the colour of the juvenile wood is normally lighter than the natural grown teak. Unless it is to be employed for structural use, the problem is not significant in wood quality.

5. The optimum rate of growth has been found to be 6 rings per inch, and silvicultural operations should be aimed at producing neither too fast nor too slow grown teak. The rate of growth may not be of great importance if the timber is to be used for other purposes. On the other hand, too fast grown teak (with growth rings less than 3 per inch) may not be acceptable to the consumers.

6. Silvicultural research related to the quality of teak should be emphasised for the long term marketing of teak internationally.

SECTION II: TEAK GRADING

(by U Myint Kyu Pe)

INTRODUCTION

Grading is a value adding process as “adding value” is an action that adds worth to something through a specific process. Properly graded timber gives a value of worthiness and satisfaction to the buyer and graded timber of any species enjoys higher prices than ungraded timber. In the early days not many items of timber were traded and grading was mainly by rule of thumb. Lumber was sold either log run (or log run, culls out), or on the basis of comparison. In the first instance, the lumber was manufactured, but the relative quality was not determined. In the second the lumber was contracted for as similar to, or of the same quality as previous shipments. With the passage of time, more and more value added items were manufactured and a great number of grades had to be created to meet the needs of people. More grades meant more arguments, and more arguments meant more need to standardise. Major timber traders considered that establishing sets of written rules acceptable to all in the trade would be more advisable than “rule of thumb” grading.

Most countries and regions have their own sets of grading rules with different rules for different species; for softwoods and hardwoods. For example, the National Hardwood Lumber Association (NHLA) Rules from the United States, the British Columbia Lumber Grading and Quebec Grading Rules from Canada, the Finnish Grading Rules and the Malayan Grading Rules (MGR) are some of the well known rules, to name a few. As a major teak producer, Myanmar has its own sets of grading rules for teak and grading of teak logs and lumber in Myanmar is done according to these rules. Until now there appears to be no collaboration regarding grading among the teak producers in the Region. Teak, whether in the rough or processed is still a natural product, and growth conditions are mainly influenced by soil and climate. Until a wonder technique has been perfected to produce finer specimens of trees, grading rules will remain the arbiter of what a piece of timber is worth.

TEAK LOGS

Jungle Rejection Rules

The origin of the first modern grading rules for teak logs in Myanmar can be traced back to 1936. The Forest Department established the “Logging Rules and Standard for Jungle Rejection of Teak Logs” and the rules mention the measuring system, logging system and system for rejection in the jungle. In short, the rules specify the calculation of defects for obligatory and optional timber. Mention of grades is not noted in these rules.

Gallant Rules

The “Standard for Jungle Rejection” was followed in April 1939 by “Classification of Teak Logs”, popularly known as “Gallant Rules”, as they were prepared by Mr. M.M. Gallant, Forest Economist of the Forest Department. This classification covers five grades; viz., five star or AY; four star; three star; two star; and one star. Like the Standard for Jungle Rejection, and the Gallant Rules deduct five cubic feet (c.ft.) per defect for scaling purposes. Star classes are graded according to the defect value and the limits determining the star class of a log are given in Table 10.

Table 10. Star classes and defect values

Note: Logs are graded by calculating the defects per 50 cubic feet.

The Forest Department later issued another booklet “Grading Rules for Teak Logs”. The length, girth, volume and defect limitations, are the same. It is only a detailed revision of the Gallant Rules for classifying teak logs but on the lines adopted by the FAO. Veneer logs are not within the scope of these rules.

Grading rules for teak veneer logs

The late 1950s saw the rise of the teak veneer market though the market started much earlier. The quality of the logs harvested then was very good and therefore logs graded under the Gallant Rules were also acceptable as veneer logs, mainly because the superior quality of the logs. Logs inferior in quality to those harvested earlier, increased in quantity as time passed. Market conditions also pinpointed defects previously not recognized. Aesthetic value is now being considered in addition to other quality defects. A new set of rules prepared by the Myanma Timber Enterprise (then known as State Timber Board) came into being are called the “Grading Rules for Teak Veneer Logs”, and are currently applied. Defects considered in the Gallant Rules and the Veneer Log Rules are shown below as comparisons:

Gallant Rules: Bear Bite; Bee Hole; Bend; Bird Hole; Buttress (no defect); Doyo; Drag Hole; Ellipse; Flute; Holes (End); Knots; Shakes; Shatter; Snout (no defect); Sun cracks, inbark; Twist.

Veneer Log Rules: Bee Hole; Bump; Curvature; Elephant Skin; End Flute marks; Flutes; Green band; Heart (Diagonal, Double, Spongy, Hole, End); Inbark; Knots (Sound, Pin,); Pig eyes; Pitch pockets; Shape (Elliptical, Triangular); Shake (Ring, Cup); Splits; Sun cracks; Twist; Wavy grain; and later inclusions - (Interlocked grain; Black spots; Sapwood pockets; Syphilis).

Permissible defects are scheduled according to the location and magnitude. These defects are then classified as either mild or serious. One serious defect (S) equals two mild (M) defects, and each grade limits 3S or 6M. In the Veneer Log Rules, log scaling, i.e. estimating the net contents of a log, which equals the gross or full contents less deduction for defects, is not taken into account. This is one difference from the preceding rules but like its predecessors, each log has to be graded separately.

One of the disadvantages in the log trade is that one has to sell only what was extracted. Up to the mid-seventies, a larger percentage of First, Second and Third quality logs were available for export. What was not exported in log form was used in the local mills. The 1980s witnessed an entirely different scenario when fewer veneer logs were obtained and more saw logs became available.

The need for introducing rules for sawing quality teak logs that do not fit in the previous rules engendered a new set of rules for sawing quality logs that are inferior to the 1 star class. Gallant rules require that logs are to be butted clean at both ends. The same applies to veneer logs. But the sawing quality logs sold today are unbutted and offered for sale as they come out of the forest. A comparison of dimensions is shown in Table 11.

Table 11. Gallant, veneer rule and sawing grade rules

Note: In Veneer Log Rules there is no minimum volume (vol) or cubic content specified provided the length (L) and girth (G) limits are met.

The sawing grade rules calculate the defect value as in Gallant Rules. But there is no log scaling. Each grade allows a fixed defect value. Grading is done according to the defect value considering the category of grade a log will fall into after the length and the girth are taken.

The current system of sales for logs in Myanmar is by tendering. But this does not necessarily preclude the need for a sound knowledge of grading, as lots are still bought and sold according to their grades. Teak logs coming from different areas have different values. Area consciousness on the part of buyers is very pronounced in this particular species. Teak logs from areas with heavy rainfall are less favoured than logs from areas with scanty rainfall. For instance teak logs from Yamethin, Pyinmana, Pyay (formerly Prome), Minbu, and Yaw, are extremely popular. It has also been noticed that teak from Northern Shan State, and Momeik are also favoured. The reason for the partiality is that there are no typical defects in teak logs from these areas and the colour, stripe and conformation of the logs rate from good to very good. Incidence of beeholes is markedly less in logs from the above mentioned areas.

SAWN TEAK

Teak squares

The next rule for consideration is the grading rules for teak squares. The Forest Department sought and obtained the co-operation of the Forest Research Institute, Dehra Dun, in bringing out the Seaman-Limaye Grading Rules for teak squares. Later the Department rearranged and rewrote the rules on the lines adopted by FAO.

Squares are not dimension stock and are mainly meant for re-conversion into smaller sizes. Undersized squares measure 10” & up × 10” & up × 10' (sometimes 7') & up. Full sized squares have sidings 12” & up × 12” & up. They are therefore judged by the general quality of the wood, and the probable loss chargeable to visible defects under normal sawing methods. These rules define the average quality of the whole parcel, and the poorest square which can be admitted in any grade. Graders, passing any square of the poorest allowable quality must offset it in the average by one or more squares of superior quality.

The condition of the logs available for sawing today produce only a small quantity of Selected First and up. Most squares are Market Quality. First and Second Quality are also available, but in a comparatively smaller quantity.

Grade names covered and value of defects permitted by these rules are shown in the Table 12. The Table shows the defect values (D.V.) each single square can carry and the parcel average as a whole.

Table 12. Teak squares grade names and defect/square

Definition of defects include; beeholes, curvature, end holes, equivalent defects not listed (e.g. bird holes rated as decayed knots, etc.), heart defects (crooked heart, diagonal heart cracks, side splits or exposed heart, ring heart cracks, star heart cracks or soft heart, inbarks and flutes, knots, rough grain, sapwood, seasoning checks, sun-cracks, taper and wane. Defect values are calculated as in logs, and each grade has its maximum permissible defects. The table of defects mention knots; beeholes; diagonal heart cracks; star heart cracks or soft heart; ring heart cracks; end holes; badly twisted or crooked heart; sun-cracks; and rough grain.

Five percent of the total quantity will be allowed for the personal judgement of different inspectors. If more than 5% is found to be defective in re-inspection, the balance of the parcel which comes up to specification will be accepted and the portion falling below grade may be disposed of as agreed between buyers and sellers.

Teak conversions

All sawn teak fall in the category of teak conversions. Before the 2nd World War, millers and shippers used their traditional grades which were known and accepted at home and abroad. The State Timber Board (STB) was formed after the independence to take over extraction, milling and marketing of teak. The STB had to find a common ground among the traditional grades offered and prepared a fresh set of rules by setting out to find grades common to the traditionally offered grades. The rules for teak conversions now in use are being prepared by the Forest Department on FAO lines, based on the practices of the State Timber Board.

These rules divide the specifications into two: viz., the General Market Specifications (GMS), and the Special Market Specifications (SMS). GMS includes planks, boards, flitches, etc., that are intended for reconversion. SMS applies to decks, margin planks, and special sizes of scantlings that are to be used without further cutting.

Defects are mainly the same as in other products; but also includes those found after sawing. Bark pockets; beeholes; black streak or oil streak; blemish; chalk pockets and veins; checks; end splits; wavy, curly, rough, and cross grain; knots; sapwood; shake; spring; sun cracks; and wane comprise the list of defects.

Grades recognized in the rules are - Select Special; Special; Selected First; First; Second; Market. But in actual practice only Special & Better (S&B); Special (S); First (F); and Second (II) are usually sold. Specifications of teak conversions are shown in Table 13.

Table 13. Specifications of teak conversions

The above mentions only the general groupings. Quality names as well as specification names also differs with those of other rules. Some of the terms used in the softwood and hardwood trades like baulks, battens are not used here.

Conversions should be well-manufactured with cross sections rectangular throughout. They must be sawn full with 1/8” overcut full to the normal dimensions at the time of milling. The permissible defects of each grade for teak conversions are briefly explained in Table 14. The width (W), length (L) of the piece is usually considered in calculating permissible defects. In knots the diameter (dia.) of the knot is taken into account.

Table 14. Teak conversions grades and permissible defect

The Grading Rules for Teak Squares, when read in comparison with the Grading Rules for Teak Conversions, will show that the rules for squares give methods for calculating the defect value, and the permissible defect value is fixed for each grade. In the case of teak conversions, the rules indicate only the size, location and number of defects that are permitted, and the defect value system of defects per 10 cubic feet or per ton of 50 cubic feet is not mentioned.

Scantlings are exported today as Special, First, and Second Quality. Special and Better Quality is the export quality for Teak Boards, Planks, Decks and Flitches. There is no standardisation of quality names with other countries exporting teak. For example, Special Quality is, at present, more popularly traded by Singapore, Hongkong and Thailand as First European Quality (FEQ), and not Europe Intermediate as was previously called in this country.

It should be mentioned that in the case of small-sized scantlings, it is not practical to examine each piece as the lumber comes out of the mill. It is too time consuming as well as costly. The time for inspection is very limited. The integrity and the experience of the grader is the sole criteria in such cases. The rules can also be deceptive if followed too slavishly. Being a natural product, going by the book may sometimes result in instances where a piece of first quality is graded as special and vice versa.

TEAK WOOD INDUSTRY PRODUCTS

Teak veneer

Only two grades of veneer are recognised, viz., Special and Fair. The grades are determined by the maximum permissible defects they can carry. The defects are: Bark Pockets; Beehole; Mineral Streak; Black Spot; Burr; Chalk Vein; Colour; Curve Natural Markings; Decay; Flame; Flash; Grain (Rough, Wavy); Green Band; Hole (Insect. Pin) Knots; Sapwood; Split; Stain. The rules explain the place and size of the imperfection that would constitute a defect and the extent that is permissible any grade.

Teak plywood

Three grades viz., Special, Superior, and Fair are recognised. In addition to the defects stated in the teak veneer, defects for plywood also include: delamination; gap; and overlap that is to be expected in the overlaying process.

Teak mouldings

There are only two grades: Grades “A”, and rejection “B”. The defects for mouldings include: Mechanical Defects; Grain (Wavy, Cross); Sound Knots; Inbark; Decay (not allowed in any grade); Stain; Sapwood; Split (not allowed in any grade); Beeholes; Chalk Pocket; Green Band; and Moisture Content. Permissible defects are determined according to the grades and to the length of the moulding.

Teak lam parquet

Three grades viz., Grades “A”, “B” and “C” are recognised. Defects are: Mechanical Defects (not allowed in any grade); Wavy Grain (allowed only for Grades “B” and “C”); Crossed Grain (allowed only for Grades “B” and “C”); Sound Knots; Decayed Knots (not allowed in any grade); Stains (allowed only for Grades “B” and “C”); Sapwood on Face (allowed only for Grade “C”); Sapwood on Back (allowed only for Grades “B” and “C”); Splits (not allowed in any grade); Hole on Face (not allowed in any grade); Hole on Back (allowed only for Grades “B” and “C”); and Green Band (allowed only for Grade “C”).

FINDINGS AND CONCLUSIONS

1. Grading is a visual process. Graders have differences of opinion. Sometimes the written rules are not adequate to meet the provisions of nature. Then it is for the experienced grader to use his discretion.

2. Whilst the rules for teak logs and lumber in Myanmar have evolved through years of experience, there is still room for further improvement. The rules for other wood industry products are still in the rudimentary stage, and need more polishing. Markets conditions, exchange of information with other producers, and more experience would help establish a more precise set of rules.

3. Defects for quality of the texture is given more emphasis than defects for condition. Discoloration or dark colour or stripes when present in a log or a piece of lumber are not considered a defect in the existing rules.

4. No common set of grading rules has been established for teak from the Region where it is the natural habitat. In order to preserve the good name of teak it is strongly recommended that clear lines be drawn between mature teak and young immature teak.

5. It is important, that sawyers, edgermen, trimmerman and tallymen should have a basic idea of the grading rules for the goods handled by them. Graders are required to be more proficient with the different sets of rules. Systematic training complemented by years of seeing, feeling, and smelling, would make these people pass a piece of timber without having to refer the manual for determining the species and the grade in normal circumstances.

6. Market conditions set prices; and prices influence grading. It would be advisable not to adjust the grading to the fluctuating prices. Graders tend to relax the rules a bit or apply them more strictly under such situations. Let the prices rise or fall as the markets sway, but grading should be constant.

7. It would be endless to comment on grading. But as a means of providing good service, the improvement of the rules should never end.

REFERENCES

Anon. Grading Rules For Teak Logs, Forest Department. Myanmar.

Anon. Grading Rules For Teak Squares, Forest Department, Myanmar.

Anon. Grading Rules For Teak Conversions, Forest Department, Myanmar.

Anon. 1936. Logging Rules and Standards For Jungle Rejection, Forest Department, Myanmar.

Anon. 1939. Classification of Teak Logs, Forest Department, Myanmar.

Anon. 1965. Grading Rules for Teak Logs. State timber Board, Myanmar.

Anon. 1965. Log Grading Rules - MTIB.

Anon. 1969. The Movement of Timber, Forest Products Research Laboratory, Princes Risborough. Tech. Note No. 38.

Anon. 1972. British Columbia Lumber Grading.

Anon. 1984. Tropical Timbers of the World, USDA Agriculture Handbook No 607.

Anon. 1994. Log Rules Northeastern Loggers Association.

Bourdilton, T.F. 1895. The quality of quickly grown teak wood. Indian Forester.

Chowdhury, K.A. 1953. Rate of growth and quality of tropical Wood. For. Abst. 14.

Ferguson, J.H.A. Thickness of hardwood and sapwood of teak. Tectona 27.

Gamble, T.S. A Manual of Indian Timbers.

Keating, W.G., Bolza, E. 1982. Characteristics, Properties and uses of Timbers of S.E. Asia, Northern Australia and the Pacific.

Kyi, Win. 1992. Design and Construction of Commercial Sized Solar Lumber Drier and Study on its application.

Lushington, P.M. 1893. The quality of quickly grown teak wood. Indian Forester No 21.

Mallinson, & Leich, J.H. 1965. Timber Trade Practice.

Mya, U. 1966. Research on Seasoning of Burmese Timbers.

Nair, K.R., Mukerjie, H.K. 1957. A Statistical Study of the Variability of Physical & Mechanical Properties of Tectona grandis (Teak) grown at different localities of india and Burma and the effects of the Variability on the Choice of Sampling.

Pearson, R.S. 1911. Note on the Relative Strength of Natural and Plantation grown teak in Burma.

Pearson, R.S. 1913. A Further Note on the Relative Strength of natural and Plantation Grown Teak in Burma.

Pearson, R.S., Brown, H.P. 1932. Commercial Timbers of India.

Rodger, A. 1963. A Handbook of the Forest Products of Burma.

Rudman, P., Doeasta, E.W. 1959. Journal of the Institute of Wood Science.

Ryan, A. Kloot, W.H. 1960. Some Notes on the mechanical properties of teak in natural teak and plantation teak.

Seaman, L.N. 1930. plantation Grown Timber. Indian Forester 56(10).

Sekhar, A.C., Bhartri, R.K. and Rawat, M.S. 1960. Comparative Studies on Natural and Plantation Teak.

Sekhar, A.C., Rawat, B.S. 1966. Physical and Mechanical Properties of teak from Different Localities in India and Neighboring Areas.

Sono. 1974. Mechanical Properties of Thailand Timbers. Forest Products Research Division, Royal Forest Department, Bangkok, Thailand.

Sono, P, Rativanigh, T. 1965. Comparative Study on the properties of plantation and natural grown teak in Thailand. Bulletin Royal Forest Department, For. Abst. 26(2).

Sono, P, Saengsakul, P. 1959. A Preliminary Study on the Physical and Mechanical Properties of teak in Thailand.

Weimann, M.C. 1979. A Comparison of Plantation grown and Natural grown Teak. Graduate Paper. SUNY, Syracuse, New York.

Wattanakal, Sadki. 1959. A Comparative Study on the Physical and Mechanical Properties of green felled and girdled teak timber.

Trade and marketing experience with Myanmar teak - Mr. Herman Manger

Herman Manger

Altius Houtagenturen

The Netherlands Company

ABSTRACT

The Myanmar teak trade is structured into teak logs, conversions and semi-finished and finished products. It operates through a buyer and seller system and the seller uses the services of a trusted agent; the agents role and duties are described, including up to the payment arrangement. Importers buy “blind” with wholesale purchases, or sales are made to “direct buyers” who may be speculators. In the Netherlands, 75% of teak goes to boat building (an essential end use outlet); 15% to prestigious homes and office blocks and the balance to flooring and odd furniture. Sales are of detailed specifications to small traders, boat builders, contractors, flooring plants and furniture manufacturers. A wide stock range must be maintained, boards, small and large scantling and the famous decking. The emphasis must be on the best quality. In view of high world demand, the Myanmar Timber Enterprise (MTE) must step up production but MTE must have access to quality logs. Regional sawmill competition for logs causes difficulty in supply, and this will increase demand on Myanmar production. Availability of a range of sizes is essential. It is considered that long term “buyers” should have preference in supplies. In the future some teak will come from plantations outside of the region, considered of lower quality and perhaps without the appropriate conversion technology, though this is expected to change. It is most important that environmental concerns be addressed because by the year 2000 certification of forest origin will be required.

Key words: Myanmar, Tectona grandis, teak trade, boat building, decking, furniture, certification.

INTRODUCTION

The structure of the teak (Tectona grandis) trade may vary slightly from country to country but in general this structure is defined by the characteristics of the principal supplier of products, products themselves (in this case they are teak logs, conversions, semi and finished products), and traders. The trade has two principals: the “seller” and the “buyer” at all levels. A trader plays double functions as a buyer and a seller. A trader decides in which market he would like to buy and sell his goods.

The teak trade is international by its nature, thus traders are also international. Such a trader usually need to have a specialized representation (agent) at the buying and selling (= trading) points. In the teak trade, it is essential for traders (as buyers) to have a reliable local agent familiar with the intricacies and particularities of the teak market that is very fluid nowadays. The traded products arrive at the final consumer market through this mechanism.

A trader (= a buyer) and its agent have to work closely together to realize the maximum potential of the supplier. A strategic marketing plan is, therefore, developed between them. It is essential for a successful business that this representative can earn a trust with the supplier through the years working relationship.

ROLES OF AGENT IN TEAK TRADE AND MARKETING

The position of an agent is not without difficulties. The agent has a primary responsibility for satisfying the supplier principal (the Myanmar Timber Enterprise under the Ministry of Forestry) and the trader (= the buyer). He needs to get the best prices and look after his principals’ interest, and at the same time to support the buyers so they will continue to pay the best prices to the supplier. Diplomacy is an essential tool of the agent’s trade.

In our case, the agent has the following roles:

• Obtaining the maximum potential value for the principal’s production.

• Promoting the principal in the market place (our company has composed a brochure on Myanmar’s Tectona grandis and with the authorisation of the Forest Department we have made a film on Myanmar forests).

• Ensuring the principal’s penetration into the market.

• Keeping the principal updated with market information.

• Ensuring that goods sold goes to reliable buyers; the agent should not sell to Tom, Dick and Harry as this will cause a depreciation of the product sold into his market. These reliable buyers are classified as reliable ethically business-wise, and certainly also credit wise.

• Absorbing a heavy workload by coordinating the business at his end including finding fair solutions to the satisfaction of all parties to any problems that might occur.

• Last but not least the Agent is responsible for payments to be made to the seller. In some countries, such as Myanmar, these payments are made through Letters of Credit (L/C). Often, and in our case, the L/C is made available by us. Where our market is concerned, 90% of our business is done on the basis of Cash Against Documents (CAD); often the agent finances his buyer with 30-90 days terms.

FEATURES IN MYANMER TEAK TRADE

Briefly and simply our marketing trade views follow. In the Netherlands, 75% of teak wood goes into our world famous boat building industry; 15% into the house building construction sector - prestigious private homes and office blocks - and the balance into some flooring and odd furniture - odd because the teak wood garden furniture boom was missed by our local manufacturers. The bulk of this furniture is manufactured in Indonesia, Thailand and a growing percentage in Myanmar.

For those not familiar with the trade I need to add that in whatever way a buyer pays, he buys prior to having seen the goods, though the unique tendering Myanmar teak log sales system is an exception. In general the buyer pays “blind”. He cannot inspect the goods prior to loading therefore pays in full trust. One should never forget that a serious long term marketing concept also serves as a protection to those who have invested in the goods sold by the seller. This certainly applies with teak wood.

Does all the trade go through agents? No, it does not and I will limit my comment to the practice here in Myanmar. Over the years we have seen a development where some buyers are classified as “direct buyers”. On the log tendering system this is understood; also on logs, and typically on veneers, individual interpretations of the perceived value to a particular buyer demands personal inspection. Some people do question the fact that anyone can put in a bid. This means the logs can become the property of traders who purely speculate, and who do not contribute within the earlier mentioned marketing plan.

With regard to conversions I have always objected to the so-called “direct buyers”. The key to proper marketing at our end, particularly on a highly valuable product like teak conversions, is to avoid false competition and at the same time, treasure a balanced situation between the various buyers. If a country only knows one particular teak specialist then I understand the idea that, that particular company could become a “direct buyer”. The further comments relate to conversions.

Each and every teak conversion buyer is investing a vast capital in his stock position; this applies particularly in teak due to: the price set system, the complicated supply line and the wide variation of sizes required to serve his many customers. In my country, and I know this applies to several countries, we see teak wood importers are highly specialized. If a particular importer loses a customer to “direct buying” the importer serving the total market would obviously stock less and the mass market of small customers, so vital to the trade, would suffer.

Our importers service their market by selling on a day to day basis on very detailed specifications to small traders, boat builders, flooring plants and furniture manufacturers. Saying this you will all realize that having these many applications, the stocks have to consist of all sizes; boards, planks, small and heavy scantlings and not to forget the famous decking sizes. All of these, but only in the very best quality. We do not have a market for secondary grade teak wood. If we did, Europe would not be buying in Southeast Asia.

I think that all the European buyers are fully aware that we ask for the best quality and a large variation of sizes - causing difficulty to the mills if they do not obtain quality logs. On the other hand by buying a wide range of sizes and paying the price for it, the maximum output is obtained by the Myanmar Timber Enterprise (MTE). We, importers and customers appreciate the loyal service we have received over the many years (our company, ‘Altius Houtagenturen’ since 1953) and the former STB and now MTE have always seen the great importance of maintaining a flow of conversions to northern Europe, as we buy without fail. It is important that MTE maintains this position.

CHANGING TRADING PATTERNS

Past

I can well remember the time the trade had an option between Burmese, Indonesian and Thai teak. Was there at the time any preference? What played an important role?

Our boat building industry has throughout this century insisted (if available) on the superior teak wood from either Myanmar or Thailand. This applied mainly to the decking application. The experience has been that the teak from these resources splinters less than the Indonesian material. The rich oil content was, and still is, favoured. In all other applications, like door manufacture, furniture, flooring and the earlier mentioned projects, these were not criteria.

But the supply dried up. Thailand imposed their export ban in 1978/79. Indonesia decided to use their teak wood for their own industries. Locally in Myanmar, a large production capacity existed, logs and conversions remained available. Both have been serving the world market, so that their supply has become in short. It may be observed that with the relatively low price for conversions in comparison with log values there has been a temptation to overly concentrate on log export.

Concurrently, outside mills in Hong Kong, Singapore, Bangkok and other places have done well by accepting special orders from traders the world over, usually for quick supply. A large percentage of these orders I would classify as “back to back” orders. As our company is an official representative for the MTE we have always been given the so called first option to contract over here. The “projects” however stipulate a guaranteed delivery time and were forced to be covered outside Myanmar. As a consequence, Myanmar missed out on this valuable high priced business.

Present

The situation in Indonesia has not changed. High quality teak conversions are obtained from Thailand, generally processed to semi finished products. From Hong Kong and Singapore a supply of rough sawn material still exists. However, with the substantial increases in log prices, it is recently seen that mills outside Myanmar operating on the tender log supply have difficulties with production. Often production cannot be run continuously; they have difficulty in making quotations, other than calculated on ready stock, or on shipments in three months.

In my opinion this means more and more people will turn to Myanmar for supply. It is therefore generally hoped that MTE will be able to step up production to feed this demand. It is also to be hoped under the circumstances “odd” new buyers are not fed with contracts. Those who have supported this market so long should obtain first, second and third option!! Here I come to a crucial point; many industries as I mentioned earlier, demand nothing but the best teak wood; the applications simply require the very best; the volume we require in the highest quality cannot be the obstacle, nor the variation in sizes we require - if the mills obtain a supply of the appropriate logs.

If the supply is not continued, buyers will be forced to go elsewhere. The question is “Where can they go?”

Future

Teak has been planted in many other regions of the world: east and west Africa and all over Latin America. Teak flourishes on many continents, but are we talking about the same valuable Tectona grandis as we know it for southeast Asia? In the EEC, plantation teak outside southeast Asia has been officially classified as not having the same durability as the “original” teak wood and are given Durability Class 2 and 3 as against Class 1 from southeast Asia.

But, does this make this other teak wood so much less valuable? Many manufacturers have experienced that teak wood from other countries does not have the same properties as the teak they have been used to. I have seen some of this material but cannot speak from wide personal experience. The main differences are: fast grown so coarse/soft textured; wide sapwood; knotty; considerably less oily texture. So, if the MTE keeps supplying high quality and large sizes and decking, we will be fortunate as our boat builders will not be able to use this plantation wood.

However, mills produce much more in a lower quality and need to sell this. I have observed with concern that those countries requiring small scantlings for furniture manufacture are testing all these other sources. They do experience problems as apparently these other countries do not yet have the expertise how to treat a teak tree and turn it into stable wood. It is a matter of time and the proper way to process these logs will be found and they then will successfully market their conversions. There is wide opinion that this teak wood can be used for many purposes where small and short specifications can be applied.

Crystal balling into the future I foresee that it will be our function more than ever before, to define the differences and the different properties and values. When these other available resources come on stream they will set a ceiling to the world price level for the sizes they can produce. It would be wise not to wait and see when that will happen. Those buying furniture sizes are all on the move to see where they can obtain lower prices and regular supply. It would also be wise to try and make a distinction between the various market requirements. Yes, for the specifications we require in our market the Netherlands, we can afford higher prices as our applications are so very special.

ENVIRONMENTAL CONCERNS

There is a concerned environmental movement in the world with emphasis on forest conservation and its management. The world is looking into each others gardens with genuine concern. This is not only directed to rain forests, all forests are examined. Without any doubt the year 2000 will entail some sort of certification required by many consumer countries. Our government is well ahead in entering a joint exercise with Indonesia, Malaysia, Gabon and Cameroon in Africa.

I personally value the world’s genuine concern of the forests; after all I am allowed to trade in wood, only if my children and theirs can do the same. When making a brief observation with a group of experts on the well being of Myanmar forestry in 1992 we made one suggestion to the Minister of Forestry: “Let the world see”. I was thrilled to hear that within that particular week back in 1992 decisions were made and steps were to be undertaken. The ITTO is a non-political body and has open doors in consumer countries and is an excellent way to expose yourself to the world. Also this Seminar is another step.

CONCLUSIONS

1. Stability in price and availability is essential for future consumption. This applies in particular to general and non special sizes.

2. It should be emphasized that the world now has different qualities of teak wood.

3. All forest production should be integrated with concerns of the environmental movement; the teak tree deserves this.