A few years ago, teak was considered the panacea for solutions to socioeconomic problems in Panama. But, today, the harsh reality of teak farming is widely known. Panama, recognized in many countries as a weed, is one of the few nations in the world that offers tax incentives to plant Tectona Grandis, teak.
It is perfectly understood that teak harms the environment. Teak leaf drop is one of the leading causes of severe erosion and fires across the country. The high oil content of the tree and leaves is like tinder or firewood during the dry season. When the leaves fall to the ground, they do not disintegrate quickly and serve no useful function in the forest, either as natural fertilizer or as feed for animals.
Today there are huge teak forests throughout Panama. Rather than contributing to the nation’s economy, they are actually depleting the national treasury through tax deductions given to the wealthy. Globally, there are more offers to sell teak than to buy.
Many of these teak stands are over twenty years old. Why are they not being sold? There are two main reasons: one, the price of teak in Panama is not in tune with the realities of the price of teak in the world market and two, today’s buyers are more informed and are requesting documentation than most Panamanians. they cannot provide because they have not. They made the necessary financial investment for this type of venture, instead their interests have been to hide money from taxes. “Chain of custody” documents are one of the key requirements for selling lumber in today’s world market. This documentation proves that the producer is not damaging the environment or the forest to extract wood.
Today there is a new alternative for agribusiness and multidimensional agriculture. This new paradigm of agroforestry allows a mixture of the traditional with the non-traditional, generating more income for the farm and at the same time restoring the ecology of the nation. A study carried out by USAID / AED “A FINANCIAL ANALYSIS OF SUSTAINABLE LIVESTOCK SYSTEMS IN THE PANAMA CANAL BASIN”, of June 2005, demonstrates the economic viability of cattle raising with trees. Although the study mentions some tree species, it does not mention species of high agricultural value. Selecting the correct species will not only serve as a source of income, but will also function as an integral and important part of daily farm life.
Paulownia could be that species. Paulownia is recognized as the fastest growing tree in the world, the aluminum of hardwood trees. Cultivated for hundreds of years in the Pacific Rim, paulownia has a higher value than teak on the world market and offers the opportunity to have three harvests in the time it takes for teak to have one.
Paulownia leaves are used in many parts of the world as animal feed due to their high nutritional value.
With the price of land in the clouds today, farms are smaller and farmers must maximize the economic profit from each hectare. Unlike teak, after two years the farmer can graze cattle between the paulownia trees without damaging them.
Paulownia increases the fertility of the land. The leaves disintegrate rapidly feeding the natural grasses that control the erosion of the upper layer of the soil. Paulownia also works as a natural firewall. The ignition temperature of paulownia is about 425 degrees Celsius. Teak has a flash point of just over 100 degrees Celsius than boiling water.