Investing in Timber

[David Knight]

It seems to me there are four main issues with TATF:

1) Few distributions from thinnings,

2) Infrequent and non-timely communications from TATF regarding status of tree owners' trees,

3) Concern whether trees are being properly maintained (i.e., thinned when appropriate), and

4) Accuracy of assumptions used in the TATF projections for future returns from growing teak trees.

As a result, most tree owners here are concerned and/or angry. There has been lots of speculation here about what is going on at TATF and their motivations or intentions regarding these issues. It has reached the point that some tree owners here are discussing taking legal action against TATF in one form or another.

I think the principle issue for most tree owners is probably the first one.

Is everyone here aware that each tree owner has three options regarding their distributions? They can (1) take possession of their thinned trees, (2) direct TATF to sell their thinned trees directly into the local market, or (3) wait for TATF to add value to their thinned trees and then sell the value-added products.

I have the impression that every tree owner here has chosen the third distribution option. That is the only distribution option that has an open-ended time frame. And it is the huge delay in the TATF value-adding process so far that has tree owners here bothered.

It seems to me that tree owners discussing legal action are confounding the delay of the third distribution option with the first issue generally.

Any tree owner that believes TATF is not legitimate or is committing some crime should exercise either of the first two distribution options, since TATF can perform those relatively quickly if TATF is in fact legitimate. Then, only if TATF fails to perform those distributions, will any tree owner have any legal basis for bringing a legal action against TATF.

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Why have I posted this? What am I trying to accomplish here?

I am a TATF tree owner. I purchased some 1993 and some 1997 teak trees in 1994 and in 2000. So I have an interest in TATF. I have no other affiliation with TATF or its owners, so my interest is not biased in that way.

I understand other tree owners' concerns. However, I do not think the frustrations of those that are discussing legal action or other non-constructive actions are beneficial to my interests or to any other tree owners' interests in the trees we already own.

I'm not here to make excuses for TATF, and I don't think having a forum for constructive discussion about TATF is harmful. I do think that non-constructive discussions here are at best of no value and at worst harmful to every TATF tree owners' interests. I've read defenses here that non-constructive discussions don't harm our interests. No need to repeat them. I disagree, however, because those defenses I have read are from a very narrow point of view and fail to consider all the aspects of running a business. TATF is a business, and it needs to remain viable for our interests as tree owners to be protected and maximized.

To make my point more clearly: if you are discussing taking legal action against TATF, or if you are complaining here about how long it is taking TATF to add value to your thinnings and to distribute the proceeds, then you should choose either of the first two distribution options. Then, only if TATF fails to perform, should you proceed with your complaints. Otherwise, you are accomplishing nothing positive and possibly harming your (and our) interests in our trees.