Risks

Political
Today Panama is a democracy and is important to the entire region with its strategic location. A popular vote resulted in the decision to expand the Canal. The country is strongly influenced by the U.S. Bankers have judged Panama to be a stable democracy and for that reason the country is considered to be the world’s second banking centre behind Switzerland.

Economic
Overproduction or low demand of cultivated teak can result in falling prices. Both of these factors are compensated for by the limited supply of naturally grown teak.

Earthquake
Panama is located in a region that has not been affected by earthquakes.

Fire
Teak does not burn. During the first three years before sufficient leaf growth has forced out the surrounding vegetation, the plants can be damaged by fire in the surrounding vegetation. The plantations are insured for the first three years. The means that we guarantee free replanting if the saplings are damaged by fire.

Hurricanes
No hurricanes have hit Panama. Hurricanes forming in the Caribbean pass northward over Florida or Texas, for example.

Pestilence
Certain insects attack teak. This can cause the tree to lose its leaves just as it does during the dry season. If this were to happen, the tree would only lose one year of growth. During the next rainy season the tree regenerates its leaves and resumes its growth.

COPYRIGHTS © 2016 Teak Consulting | All rights reserved | Telephone: 0046 (0)31 7990997 | Email: bjorn@teakconsulting.com