A few years ago, teak was considered the panacea for solutions to Panama’s socioeconomic problems. But, today, the harsh reality of teak cultivation is widely known. Recognized in many countries as a weed, Panama is one of the few nations in the world that grant tax incentives for planting Tectona Grandis, teak.
It is well understood that teak harms the environment. Teak leaf fall is one of the main causes of severe erosion and fires across the country. The high oil content of the tree and leaves is like tinder or kindling for the fire during the dry season. When the leaves fall to the ground, they do not disintegrate quickly and do not serve any useful function in the forest, either as natural fertilizer or animal feed.
Today there are huge teak forests throughout Panama. Instead of contributing to the nation’s economy, they are actually depleting the national treasury through tax breaks provided to the wealthy. In general, there are more offers to sell teak than to buy.
Many of these teak stands are over twenty years old. Why are they not sold? There are two main reasons: one, the price of teak in Panama is out of sync with the realities of the teak price in the world market and two, today’s buyers are more informed and request documentation that most Panamanians cannot. provide because they have not made the necessary financial investment for this type of company, but their interests have been to hide money from taxes. “Chain of Custody” documents are one of the key requirements for selling timber in today’s global marketplace. This documentation proves that the producer is not damaging the environment or the forest to extract the wood.
Today there is a new alternative for agribusiness and multidimensional agriculture. This new agroforestry paradigm allows for a mix 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 USAID/AED study “A FINANCIAL ANALYSIS OF SUSTAINABLE LIVESTOCK RANCH SYSTEMS IN THE PANAMA CANAL BASIN” from June 2005 demonstrates the economic viability of raising cattle with trees. Although the study mentions some tree species, it does not mention species with high agricultural value. Selecting the right 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 hardwood tree. Cultivated for hundreds of years on the Pacific coast, paulownia is worth more than teak on the world market and offers the opportunity to have three crops in the time it takes teak to have one.
Paulownia leaves are used in many parts of the world as animal feed due to their high nutritional value.
With land prices skyrocketing today, farms are smaller and farmers must maximize the economic return on each acre. Unlike teak, after two years, the farmer can graze cattle among the paulownia trees without damaging them.
Paulownia increases the fertility of the land. The leaves quickly disintegrate feeding natural grasses that control erosion of the topsoil. Paulownia also works as a natural firebreak. The ignition temperature of paulownia is about 425 degrees Celsius. Teak has a flash point of just over 100 degrees Celsius above that of boiling water.
