The Myanma Timber Enterprise (MTE) harvesting plan for 2019-20 provides for the production of about 5,000 tons of teak and 28,5000 tons of other hardwoods. Some 3,000 tons of teak will come from the Shah State with most of the balance from the Sagaing Region, Chin State and Magwe Division. In addition, teak will be harvested from mature plantations (30 years and above).
It is understood that the mature teak plantations are considered ‘natural forest’ as the quality of the timber is considered equal to that from the natural forest. Myanmar is believed to have exported about 80,000 tons of timber to as many as forty countries in fiscal 2018-19 with teak accounting for around 35% of the total.
According to Ministry of Commerce, earnings from the forestry sector in fiscal 2018-19 were about US$175 million.
To maintain business activity at the same level as in previous years, exporters need to be trading around 60,000 tons of teak annually. On the current harvest levels it is clear the industry will face a shortage of teak logs in the coming years. Myanmar has a problem with deforestation and the switch to harvesting mature plantations will help ease the pressure on the natural forest.
Forestry Minister, Own Win, recently attended a ceremony marking 100 years of plantation forest in the Bago Mountain Range. An area of 268 acres produced 7,356 teak trees out of which there were 5,665 tress with girths above 4ft., according to MTE data.