Forests and woodland cover nearly half the country, even though the annual deforestation rate was 0.68% during 1975-89. Some 38% of the forest was Reserved Forest Area in 2001. Myanmar has a major share of the world's teak reserves, which constitute about one-third of the forested area. As the world's leading exporter of teak, Myanmar supplies about 75% of the world market. The lumbering of teak, a 10-year process from the first girdling of the tree to its arrival at the sawmill, was disrupted by World War II (1939–45); production rebounded to about 136,000 tons in 1986. Increased output of teak in the 1980s was attributable to completion of four modern timber-extraction projects. Teak log production totaled 622,000 tons in 2001. A special teak plantation program begun in 1998 will provide a sustainable production of 1.8 million cu m (63.5 million cu ft) per year. Roundwood production in 2000 totaled 22.8 million cu m (805 million cu ft). Other forest products include lac, catechu resin, and bamboo.
All foreign timber concessions have been nationalized, and all forests are government-owned; the State Timber Board (STB) lumbers, mills, and markets forest products. The export of forest products decreased in value from $294.1 million in 1993 to $221.5 million in 2000.