Significance of Planted Teak for Smallholder Farmers James M Roshetko and Aulia Perdana World Agroforestry Centre (ICRAF) Southeast Asia Research Programme, Bogor, Indonesia TEAKNET Partner Event FAO Regional Forestry Commission Asia-Pacific 25 October 2017 Colombo, Sri Lanka
Outline Introduction Socioeconomics and Culture Production and Silvicultural Systems Finance, Economics, and Marketing Recommendations and Guidance
Smallholders & Teak When and how did smallholder farmers start to be involved with teak? rural residents worked as laborers for plantation establishment and management?? Taungya system: intercropping with annual crops to improve teak seedling establishment and growth (off-set establishment costs). Increased involved of and benefit to farmers! Myanmar 1856 Indonesia 1856 to 1880s approach still promoted Smallholder teak plantings (plantations) well established in Java (Indonesia) in 1960s Other countries: Laos, Thailand, Bangladesh, India, the Philippines, the Solomon Island, Nigeria, Togo, Benin, Costa Rica, Panama
Smallholder Teak Globally minimum 4.3 million ha of teak 83% in Asia - India - Indonesia - Myanmar Smallholder teak plantings Important part of global teak estate 19% of are in Asia and Africa 31% in Central America 34% in South America Kollert and Cherubini, 2012 Smallholder area approximately. - 920,000 ha - 21% of total
Smallholder Teak areas - Indonesia *
Farmers main source of industrial teak ~1.5 million farm families grow teak on Java (Dep For 2005) ~444,000 ha fallowed ag land (Java, degraded), mainly teak ~3.1 million ha farmland produce teak Indo. (Kollert et al 2012) 80% teak used by SMEs from farms (dbh <30) (Achidiawan et al 2011) SMEs are 90% if Jepara furniture industry (Yovi et al 2013) Teak log production Central Java (one of the two main teak producing provinces) Teak cubic m 3 2006 2007 2009 Perhutani (State Forest Com.) 184,521 186,613 171,329 Smallholders 248,111 201,453 200,793 In Cen. & East Java in 2011, smallholders produced 14 times more timber (logs of all species) than Perhutani - 2,080,130 m 3 versus 146,420 m 3 (MOF 2011) Smallholder have become an dominant source of teak
Socioeconomics & Culture Indonesia Why do farmers plant teak? - 54% as family savings (teak is a living bank account) - harvest when they need $ tebang butuh - 23% as cultural heritage - only 15% to max market opportunity Prefer Mixed Systems : risk; diverse crops, product & income for home; improve environ.; sustain traditional Know they should improve : - improve silviculture management - access to quality germplasm, - access to market information - expand intercropping - retain tebang butuh
Teak system % of systems Size (ha) Trees/ha Tree species Tegalan (intercropping) Pekarangan (homegarden) Kitren (woodlot) Line plantings (agric. land) Ave. family holding 1 ha (0.5-3 ha) 30-50% under teak. - 10% kitren - remainder mixed systems 50.6% 0.47 1072 8 21.9% 0.24 1177 13 21.9% 0.31 1532 5 4.8% 0.31 138 7 1.2% 1.1% 2.4% 1.4% 0.5% 0.7% 0.9% 0.8% 4.0% 5.8% 0.1% 6.5% Species Teak Mahogany Leucaena Acacia Bauhinia Gliriidia Gnetum 7.4% 55.9% Sesbania Cassia Species Use Timber 11.3% Coconut Manggo 10% 15% 75% Fodder / Green manure Others Cashew Dalbergia Jatropha Others
Thailand & Laos Also mixed tree-crop prefer...enable off-farm opportunities Include temp. migration Dry areas (Benin, Togo, Nigeria) Teak competes with crops (land and labor)..diversify, restore preferred Central & South America Smallholder monocultures All locations farmers need support land, tech. & market knowledge and assistance
Indonesia 82% farmers intercrop 42% land parcels cropped/year 69% intercropped land - tegalan 11% kitren intercropped (mainly during establishment) 73% of farmers fertilizer/weed, but only with intercropping Crops: cassava, peanuts, rice, soybeans, corn, kidney beans, bananas, other vegetables. Lainnya 20% Kacang Tanah 24% Padi 18% Kacang Kedelai 8% Singkong 27% Kacang Panjang 3%
Farmer Silviculture Regeneration: 72% wildlings, 30% local seedling, 20% coppice, 12% improved germ. Pruning: 65% farms, 55% trees for fuelwood, 10-15 cm stub Thinning: 57% thinning (but really harvesting) Coppice: no thinning Not management for improving production /growth Poor silviculture practices! Farmers teak systems overstock, slow growing, low quality, low productivity Tebang butuh (harvest to meet needs) health, education, ceremonies, cash flow
Farmer Demo Trials (FDTs) 6 Locations Trees 5-6 years old FDT Treatments - Thinning: i) control, ii) maximum 40-45% (target 4x4m 625 trees/ha) - Pruning: i) control; ii) 50% total height; & iii) 60% total height - Singling: i) control; & ii) singling Monitoring every 6 months Results (+ 2 yrs) Rainy season growth increment thinning & pruning, dry season not Pruning 60%-Thinning: DBH 60%, height 124% Single Treatment: Thinning versus No Thinning: DBH 45%, height 80% Good results - Challenging On-Farm conditions
Economics & Finance farmer limited capital and household labor deploy those resource with emphasis on short-term teak not prioritized for investment self-source germplasm intercropping fert, weeding, etc This approach reasonable... Cash investment marginally profitable (if solely on teak) Teak contribute 12% household income but teak system contribute 40% of hh income 70% 60% 50% 40% 30% 20% 11.6% 24.9% 60.5% good return on minimal investment!! 10% 0% 3.0% Timber, other than teak Teak Food crops and livestock Off-farm work, remittance, retail
Market/Marketing role of farmer limited to producer standing tree standard unit of sale for farm-grown teak no clear quality or volume standards exist 51% farmers discuss price with neighbors, 31% compare price with multiple traders, 18% are price takers regardless of approach farmers receive price market rate traders transaction cost; so offer price farmers sell small dbh logs (only 14% harvest by dbh class) Age (year) DBH (cm) Price for farmer (US$/standing tree) Log volume after processing (m 3 ) Log price to traders (US$) 10 12 18 3 6 0.045-0.189 3 25 15 13 31 5 30 0.060-0.515 6 123 20 21 45 10 265 0.307-1.061 57 284 25 29 49 20 296 0.320-1.321 54 329
Recommendations 1 Smallholders systems are not Industrial Teak Plantations that is ok Tebang butuh approach is ok, but Farmer should management, how? - better germplasm - coppice management - thinning best option for production ( volume/tree $/tree & $ to farmers) - pruning 60% total height (min. 1 log) for quality and production Government and support agencies facilitate adoption of silvicultural - access to germplasm - extension and training - manuals, bulletins,.. - demonstration trials Similar recommendations: Thailand, Laos, Panama, Costa Rica, & general
Recommendations 2 Produce larger diameter, better quality logs (know the market) Improve market position by accessing information Develop links between teak farmers and teak industries Engage in group marketing to transaction costs for all parties Provide farmers log grading and pricing system that is used by the timber industry Government provide more suitable timber trade regulations, specifically for smallholder timber Simplify timber trade regulations to - min. transaction costs) & make farm teak markets more efficient
Terima kasih - Thank you