SUPPLY & DEMAND














the law of
supply and demand prevails

and prices rise.


The Supply
Every available statistic points to the imminent extinction of tropical rain forests.

Projections show that tropical rain forests and the treasured tropical hardwoods will all be gone by 2040.

Unlike deciduous forests that grow almost everywhere, tropical rain forests exist only in that humid narrow band encircling the earth, between 23.5 º south and 23.5 º north of the equator.
See graph below:

Acceleration:
Recent high-resolution satellite photography shocked the environmental sciences community. They thought rain forest depletion was 10 to 15 million acres per year.

Satellite photography showed rain forest destruction at roughly 50 million acres a year, or 19 million tropical trees a day. Many tropical hardwood species are becoming increasingly rare, some nearly extinct. It follows that the wildlife that once populated rain forests meets a similar fate.

99% of tropical hardwoods come from the natural rain forest; and only 1% from managed plantations. Tree farms have been operating for more than a century, but many are inefficient because growers lack knowledge.
 
The Supply is dwindling rapidly

The Demand

Beautiful grain, rich color and texture, as well as natural weather resistance, make tropical hardwoods the ultimate and unique choice for exquisite furniture and cabinetry, everything from boat decks to grand pianos.

Over the past 40 years, the demand for tropical hardwoods has multiplied nearly 25 times, resulting in an annual consumption of more than 100 billion board feet.

The United States, Europe and Japan are the biggest consumers, and China and India are just entering the market as their rapidly expanding middle class have begun to demand finer furnishings.

Multiply the price of black walnut, the finest North American hardwood, by four and get the price of mahogany. In today’s market, a mature teak log can command $20,000. Beautiful grain, rich color and texture, as well as natural weather resistance, make tropical hardwoods well worth their price.

Visual and physical attributes make them the ultimate choice for exquisite furniture and cabinetry, even musical instruments. There are numerous tropical hardwood varieties, and teak and mahogany are the best known. Worldwide you find their great beauty and superior strength in everything from boat decks to grand pianos.

Over the past 40 years, consumption of tropical hardwoods has multiplied nearly 25 times. This results in an annual consumption of more than 100 billion board feet. Current data show the United States, Europe and Japan have the greatest demand. Last year alone, the U.S. consumed $2 billion worth of tropical hardwoods. China and India are just entering the market as their rapidly expanding middle class have begun to demand finer furnishings.

The Demand is evident.