making timber plantation as an attractive business to smallholders
DESCRIPTION
This presentation by Dede Rohadi, FORDA Scientist, given during the Forests Asia Summit during the discussion forum "Equitable development: Improving livelihood benefits for smallholders in the forestry value chain" focuses on the potential development of smallholder timber plantations, the challenges on improving the performance of smallholder timber plantations, lessons learnt from some research activities on smallholder timber plantations and other important insights.TRANSCRIPT
Making Timber Plantation as an Attractive Business to Smallholders
Dede Rohadi FORDA’s Seconded Scientist to CIFOR
Potential development of smallholder timber plantations: • Demand on timber • Supports from governments and
development agencies • Human factors: cultures, experiences
Challenges on improving the performance of smallholder timber plantations: • Limited market information/access • Not convinced to apply best practices in
timber plantation management. • Weak bargaining power on timber
marketing
Lessons learnt from some research activities on smallholder timber plantations: ACIAR funded project on Smallholder Teak Plantation in
Gunungkidul (2007-2012)
ACIAR funded project on Community Based Commercial Forestry (2011-2014)
Others (Case study in Lampung/ITTO; Case studies in Tanah Laut South Kalimantan/BMZ)
KEY MESSAGES
Timber sales share about 15% of the total household income in Gunungkidul, Indonesia.
Farmers allocate around 10% of their private land for woodlots (kitren), and also plant timber on other land use types (tegalan and home garden)
Farmer’s practices in timber plantations business:
Selling timber individually.
Tebang butuh.
Produce low quality of timbers (small diameter logs, knots, defects).
Women involved in the financial aspects of timber production and harvesting.
Constraints by harvest permits and timber trade regulations.
No. Timber species Grade Diameter (cm)
Price (Rp 1,000/m3)
1 Teak (Tectona grandis) – Slow growth
A1 (DL) A1 (UP) A2 (UD) A3 (UGD) A4 A5
< 13 16-19 22-28 30 44 54
500 – 700 1,000 – 1,400 2,000 – 2,400 3,000 – 3,500
> 4,000 > 5,000
2 Sengon (Paraserianthes falcataria) – Fast growth
Length 1.3 m: 10-14 15-19 20 25
395 – 470 495 – 570 695 – 720 795 – 875
Length 2.6 m: 25-29 30-29 40-49 50
800 – 916
925 – 1,100 1,125 – 1,140 1,125 – 1,150
Timber price significantly differs according to their qualities
Marketing chain varies significantly across sites/locations. Timber growers in Java has much more options to sell their timber along the marketing chains.
Options for improving profits:
• Improve farmer’s market orientation
• Strengthen collective marketing
• Eliminate regulations barriers