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